Sony 2005 Annual Report Download - page 74

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Sony Corporation 71
Quarterly Financial and Stock Information
Sony Corporation and Consolidated Subsidiaries—Years ended March 31 (Unaudited)
.
Yen in billions except per share amounts
1st quarter 2nd quarter 3rd quarter 4th quarter
2004 2005 2004 2005 2004 2005 2004 2005
Sales and operating revenue . . . . . . .
¥1,603.8.¥1,612.1.¥1,797.0.¥1,702.3.¥2,323.4.¥2,148.2.¥1,772.2.¥1,697.0.
Operating income (loss) . . . . . . . . . . .
16.7.9.8.33.2.43.4.158.8.138.2.(109.8.)(77.4.)
Income (loss) before income taxes . . .
35.8.6.6.44.1.63.3.157.8.149.2.(93.6.)(61.9.)
Income taxes . . . . . . . . . . . . . . . . . . .
25.4.(1.8.)10.3.16.2.67.6.7.0.(50.5.)(5.3.)
Equity in net income (loss) of affiliated
companies . . . . . . . . . . . . . . . . . . . .
(9.7.)20.1.2.9.6.1.3.1.2.3.5.5.0.5.
Income (loss) before cumulative
effect of accounting changes . . . . . .
1.1.28.0.35.0.53.2.92.6.143.8.(38.2.)(56.5.)
Net income (loss) . . . . . . . . . . . . . . . .
1.1.23.3.32.9.53.2.92.6.143.8.(38.2.)(56.5.)
Per share data of common stock
Income (loss) before cumulative
effect of accounting changes
—Basic . . . . . . . . . . . . . . . . . . . .
¥ 1.24.¥ 30.20.¥ 37.99.¥ 57.50.¥ 100.16.¥ 155.32.¥ (41.23.)¥ (59.40.)
—Diluted . . . . . . . . . . . . . . . . . . .
1.24.28.52.35.60.53.76.92.51.138.08.(41.23.)(59.40.)
Net income (loss)
—Basic . . . . . . . . . . . . . . . . . . . .
1.24.25.10.35.69.57.50.100.16.155.32.(41.23.)(59.40.)
—Diluted . . . . . . . . . . . . . . . . . . .
1.24.23.81.33.48.53.76.92.51.138.08.(41.23.)(59.40.)
Depreciation and amortization* . . . . .
¥ 84.3.¥ 85.5.¥ 87.4.¥ 91.2.¥ 95.2.¥ 92.0.¥ 99.3.¥ 104.1.
Capital expenditures
(additions to fixed assets) . . . . . . . . .
81.0.88.1.90.0.90.1.97.6.78.7.109.6.100.0.
R&D expenses . . . . . . . . . . . . . . . . . .
114.2.123.6.136.2.127.0.123.8.119.4.140.4.132.0.
Tokyo Stock Exchange price per
share of common stock**:
High . . . . . . . . . . . . . . . . . . . . . . . .
¥ 4,190 ¥ 4,670 ¥ 4,410 ¥ 4,160 ¥ 4,200 ¥ 3,970 ¥ 4,660 ¥ 4,400
Low . . . . . . . . . . . . . . . . . . . . . . . .
2,720 3,890 3,430 3,590 3,520 3,650 3,780 3,760
New York Stock Exchange price
per American Depositary Share**:
High . . . . . . . . . . . . . . . . . . . . . . . .
$ 35.51.$ 43.66.$ 38.30.$ 38.44.$ 37.96.$ 38.96.$ 42.36.$ 41.47.
Low . . . . . . . . . . . . . . . . . . . . . . . .
23.92.34.08.29.23.32.50.32.59.34.02.34.98.36.34.
*Including amortization expenses for intangible assets and for deferred insurance acquisition costs.
** Stock price data are based on daily closing prices.
Notes: 1. In July 2003, AcSEC issued SOP 03-1. SOP 03-1 requires insurance enterprises to record additional reserves for long-duration life insurance contracts with minimum
guarantee or annuity receivable options. Additionally, SOP 03-1 provides guidance for the presentation of separate accounts. This statement is effective for fiscal years
beginning after December 15, 2003. Sony adopted SOP 03-1 on April 1, 2004. As a result of the adoption of SOP 03-1, Sony’s operating income decreased by
¥1,595 million ($15 million) and ¥5,156 million ($48 million) for the three months and the year ended March 31, 2005. Additionally, on April 1, 2004, Sony recognized
¥4,713 million ($44 million) of loss (net of income taxes of ¥2,675 million) as a cumulative effect of an accounting change. In addition, the separate account assets,
which are defined by insurance business law in Japan and were previously included in “Securities investments and other” on the consolidated balance sheet, were
excluded from the category of separate accounts under the provision of SOP 03-1. Accordingly, the assets previously treated as separate account assets are now
treated within general account assets.
2. In July 2004, EITF issued EITF Issue No. 04-8, “The Effect of Contingently Convertible Instruments on Diluted Earnings per Share”. In accordance with FAS No. 128,
Sony had not previously included in the computation of diluted EPS the number of potential shares of common stock issuable upon the conversion of Co-Cos that
have not met the conditions to exercise the associated stock acquisition rights. EITF Issue No. 04-8 requires that the maximum number of shares of common stock
that could be issued upon the conversion of Co-Cos be included in diluted EPS computations from the date of issuance regardless of whether the conditions to
exercise such rights have been met. EITF Issue No. 04-8 is effective for reporting periods ending after December 15, 2004. Sony adopted EITF Issue No. 04-8
during the quarter ended December 31, 2004. As a result of the adoption of EITF Issue No. 04-8, Sony’s diluted EPS of income before cumulative effect of an
accounting change and its net income for the year ended March 31, 2004 were restated. Sony’s diluted EPS of its income before cumulative effect of an account-
ing change and net income for the year ended March 31, 2005 were decreased by ¥7.26 ($0.07) and ¥7.06 ($0.07), respectively, compared to those before the
adoption of EITF Issue No. 04-8.
3. In January 2003, the FASB issued FIN No. 46, “Consolidation of Variable Interest Entities—an Interpretation of ARB No. 51”. FIN No. 46 addresses consolidation
by a primary beneficiary of a VIE. Sony early adopted the provisions of FIN No. 46 on July 1, 2003.
As a result of adopting the original FIN No. 46, Sony recognized a one-time charge with no tax effect of ¥2,117 million as a cumulative effect of accounting
change in the consolidated statement of income, and Sony’s assets and liabilities increased by ¥95,255 million and ¥97,950 million, respectively. These increases
were treated as non-cash transactions in the consolidated statement of cash flows. In addition, cash and cash equivalents increased by ¥1,521 million.
See Note 23 for further discussion on the VIEs that are used by Sony.
In December 2003, the FASB issued revised FIN No. 46 (“FIN No. 46R”), which replaced FIN No. 46. Sony early adopted the provisions of FIN No. 46R upon
its issuance. The adoption of FIN No. 46R did not have an impact on Sony’s results of operations and financial position or impact the way Sony had previously
accounted for VIEs.
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