Sony 2005 Annual Report Download - page 52

Sony Corporation 49
segment decreased by 0.8 billion yen, or 20.7 percent, to 2.9
billion yen, and decreased in the Pictures segment by 0.2 billion
yen, or 3.4 percent to 5.8 billion yen, and decreased in the Other
segment by 4.0 billion yen, or 39.3 percent, to 6.1 billion yen.
Property, plant and equipment on March 31, 2005 in the
Financial Services segment decreased by 2.3 billion yen, or 5.6
percent, to 38.6 billion yen compared with the previous fiscal
year-end. Capital expenditures in the Financial Services segment
decreased by 0.8 billion yen, or 16.7 percent, to 3.8 billion yen.
■OTHER ASSETS
Other assets on March 31, 2005 decreased by 46.7 billion yen,
or 2.9 percent, to 1,545.9 billion yen, compared with the
previous fiscal year-end.
Other assets on March 31, 2005 in all segments excluding
the Financial Services segment decreased by 62.5 billion yen to
1,189.4 billion yen. This decrease was primarily the result of the
fact that, due to the establishment of SONY BMG, artist’s
contracts belonging to the joint venture are no longer recorded
as intangible assets within Sony’s consolidated balance sheets.
Deferred tax assets on March 31, 2005 increased by 37.2 bil-
lion yen, or 18.3 percent, to 240.4 billion yen compared with the
previous fiscal year-end. As a result of the recording of operating
losses in the past, certain U.S. subsidiaries of Sony have had
valuation allowances against deferred tax assets for U.S. federal
taxes and certain state taxes. However, in the fiscal year ended
March 31, 2005, based on both improved operating results in
recent years and a sound outlook for the future operating perfor-
mance at Sony’s U.S. subsidiaries, Sony reversed 67.9 billion
yen of such valuation allowances. On the other hand, certain of
Sony’s subsidiaries recorded new valuation allowances against
deferred tax assets during the fiscal year ended March 31, 2005.
Other assets in the Financial Services segment on March 31,
2005 increased by 17.8 billion yen, or 3.9 percent, to 477.8
billion yen compared with the previous fiscal year-end. This was
mainly due to an increase in deferred insurance acquisition costs
at Sony Life.
LIABILITIES
Total current and long-term liabilities on March 31, 2005
decreased by 84.9 billion yen, or 1.3 percent, to 6,604.9 billion
yen compared with the previous fiscal year-end. Total current
and long-term liabilities on March 31, 2005 in all segments
excluding the Financial Services segment decreased by 489.5
billion yen, or 12.7 percent, to 3,366.4 billion yen. Total current
and long-term liabilities in the Financial Services segment on
March 31, 2005 increased by 365.5 billion yen, or 11.8 percent,
to 3,465.3 billion yen, compared with the previous fiscal year-
end. Total current and long-term liabilities on March 31, 2005 in
all segments excluding the Financial Services segment would
have decreased by approximately 14 percent compared with the
previous fiscal year-end if the value of the yen had remained the
same on March 31, 2005 as it was on March 31, 2004.
■CURRENT LIABILITIES
Current liabilities on March 31, 2005 decreased by 172.8 billion
yen, or 5.8 percent, to 2,809.4 billion yen compared with the
previous fiscal year-end. Current liabilities on March 31, 2005 in
all segments excluding the Financial Services segment decreased
by 236.1 billion yen, or 9.9 percent, to 2,137.5 billion yen.
Short-term borrowings and the current portion of long-term
debt on March 31, 2005 in all segments excluding the Financial
Services segment decreased 205.7 billion yen, or 50.2 percent,
to 204.0 billion yen compared with the previous fiscal year-end.
This decrease was mainly a result of the fact that of 300.0 billion
yen of convertible bonds due on March 31, 2005, 5.0 billion yen
were redeemed on the maturity date with 282.8 billion yen of the
287.8 billion yen balance outstanding at the start of the fiscal
year being converted into common stock, which was partially
offset by the reclassification of long-term debt to current liabilities
mainly consisting of 119.0 billion yen of straight bonds and
bonds with warrants redeemable during the fiscal year ending
March 31, 2006. (Refer to Note 12 of Notes to Consolidated
Financial Statements.)
Notes and accounts payable, trade on March 31, 2005 in all
segments excluding the Financial Services segment increased
by 28.0 billion yen, or 3.6 percent, to 801.3 billion yen compared
with the previous fiscal year-end, mainly due to an increase
within the Game segment.
Current liabilities on March 31, 2005 in the Financial Services
segment increased by 59.8 billion yen, or 9.2 percent, to 708.6
billion yen, mainly due to the increase in deposits from customers
in the banking business. Deposits from customers in the banking
business increased by 167.9 billion yen, or 44.3 percent, to 546.7
billion yen, due to the expansion of the banking business.
■LONG-TERM LIABILITIES
Long-term liabilities on March 31, 2005 increased by 88.0 billion
yen, or 2.4 percent, to 3,795.5 billion yen compared with the
previous fiscal year-end.
Long-term liabilities on March 31, 2005 in all segments
excluding the Financial Services segment decreased by 253.5
billion yen, or 17.1 percent, to 1,228.9 billion yen. Long-term
debt on March 31, 2005 in all segments excluding the Financial
Services segment decreased 147.9 billion yen, or 19.1 percent,
to 627.4 billion yen. This was primarily the result of the reclassifi-
cation of long-term debt to current liabilities, including 119.0
billion yen of bonds redeemable during the fiscal year ending
March 31, 2006 and a decrease in accrued pension and
severance costs of 20.2 billion yen, or 5.6 percent, to 338.0
billion yen, primarily due to the reform of Sony’s employee
retirement pension plan in Japan.
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