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52 Sony Corporation
The following table contains available for sale and held to maturity securities, breaking out the unrealized gains and losses by
investment category.
Yen in millions
Unrealized Unrealized Fair market
March 31, 2005 Cost gain loss value
Financial Services
Available for sale
Debt securities
Sony Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,769,693 56,988 (2,130) 1,824,551
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
315,101 1,096 (281) 315,916
Equity securities
Sony Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42,256 22,735 (278) 64,713
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,469 5,172 (12) 14,629
Held to maturity
Debt securities
Sony Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
————
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27,414 530 (13) 27,931
Total Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,163,933 86,521 (2,714) 2,247,740
Non-Financial Services:
Available for sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61,212 21,520 (577) 82,155
Held to maturity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17 — — 17
Total Non-Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61,229 21,520 (577) 82,172
Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,225,162 108,041 (3,291) 2,329,912
The most significant portion of these unrealized losses relate
to investments held by Sony Life. Sony Life principally invests in
debt securities in various industries. Almost all of these securi-
ties were rated “BBB” or better by Standard & Poor’s, Moody’s
or others. As of March 31, 2005, Sony Life had debt and equity
securities which had gross unrealized losses of 2.1 billion yen
and 0.3 billion yen, respectively. Of the unrealized loss amounts
recorded by Sony Life, less than 1 percent relate to securities
being in an unrealized loss position of greater than 12 months.
These unrealized losses related to numerous investments, with
no single investment being in a material unrealized loss position.
In addition, there was no individual security with unrealized
losses that met the test discussed above for impairment as the
declines in value were observed to be small both in amounts
and percentage, and therefore, the decline in value for those
investments was still determined to be temporary in nature. The
percentage of noninvestment grade securities held by Sony Life
represents approximately 3 percent of Sony Life’s total invest-
support that the decline is temporary in nature due to the exist-
ence of other factors which overcome the duration or magnitude
of the decline. On the other hand, there may be cases where
impairment losses are recognized when the decline in the fair
value of the security is not more than 20 percent or such decline
has not existed for an extended period of time, as a result of
considering specific factors which may indicate the decline in
the fair value is other-than-temporary.
The assessment of whether a decline in the value of an invest-
ment is other-than-temporary is often judgmental in nature and
involves certain assumptions and estimates concerning the
expected operating results, business plans and future cash
flows of the issuer of the security. Accordingly, it is possible that
investments in Sony’s portfolio that have had a decline in value
that Sony currently believes to be temporary may be determined
to be other-than-temporary in the future based on Sony’s evalu-
ation of additional information such as continued poor operating
results, future broad declines in value of worldwide equity mar-
kets and the effect of world wide interest rate fluctuations. As a
result, unrealized losses recorded for investments may be
recognized into income in future periods.
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