Sony 2006 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2006 Sony annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

107
The changes in the carrying amount of goodwill by operating segment for the fiscal years ended March 31, 2005 and 2006 are
as follows:
Yen in millions
Financial
Electronics Game Pictures Services All Other Total
Balance at March 31, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥52,236 ¥110,362 ¥70,789 — ¥ 44,483 ¥277,870
Reallocated from Music business to Electronics segment . . . . .
12,329 — — — (12,329) —
Goodwill acquired during year . . . . . . . . . . . . . . . . . . . . . . . . . .
5,872 4,349 5,868 ¥441 2,121 18,651
Goodwill contributed to the Joint Venture
with Bertelsmann AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
————(15,626) (15,626)
Other * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
378 29 1,277 — 1,344 3,028
Balance at March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70,815 114,740 77,934 441 19,993 283,923
Goodwill acquired during year . . . . . . . . . . . . . . . . . . . . . . . . . .
3,337 1,317 947 536 382 6,519
Reallocated from Music business to Electronics segment . . . . .
634 — — — (634) —
Impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
————(534) (534)
Other* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,577 207 7,031 — 301 9,116
Balance at March 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥76,363 ¥116,264 ¥85,912 ¥977 ¥ 19,508 ¥299,024
Dollars in millions
Financial
Electronics Game Pictures Services All Other Total
Balance at March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$605 $981 $666 $4 $171 $2,427
Reallocated from Music business to Electronics segment . . . . .
5———(5)—
Goodwill acquired during year . . . . . . . . . . . . . . . . . . . . . . . . . .
29 11 8 5 3 56
Impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
————(5)(5)
Other* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 2 60 — 2 78
Balance at March 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . .
$653 $994 $734 $9 $166 $2,556
*Other consists of translation adjustments and reclassification to/from other accounts.
Total carrying amount of intangible assets having an indefinite
life comprise the following:
Dollars in
Yen in millions millions
March 31 2005 2006 2006
Trademarks . . . . . . . . . . . . .
¥57,195 ¥58,195 $497
Distribution agreement . . . . .
18,848 18,848 161
. . . . . . . . . . . . . . . . . . . .
¥76,043 ¥77,043 $658
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 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 of
goodwill relating to the non-Japan based disc manufacturing
and physical distribution business from the Music segment to
the Electronics segment. Effective April 1, 2005, a similar
change was made with respect to the Japan based disc
manufacturing businesses and accordingly, Sony reallocated
¥634 million ($5 million) of goodwill from the Music segment to
the Electronics segment. Consistent with the presentation of
business segment information in Note 25, the Music segment
is included within All Other.
During the year ended March 31, 2006, Sony performed the
annual impairment test for goodwill and recorded an impairment
loss of ¥534 million ($5 million) in a reporting unit included in All
Other. This impairment charge reflected the overall decline in the
fair value of a subsidiary. The fair value of the subsidiary was
estimated principally using the expected present value of future
cash flows.