Sony 2015 Annual Report Download - page 212

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
22. Reconciliation of the differences between basic and diluted EPS
Reconciliation of the differences between basic and diluted EPS for the fiscal years ended March 31, 2014,
2015 and 2016 is as follows:
Yen in millions
Fiscal year ended March 31
2014 2015 2016
Net income (loss) attributable to Sony Corporation’s stockholders
for basic and diluted EPS computation (128,369) (125,980) 147,791
Thousands of shares
Weighted-average shares outstanding 1,027,024 1,114,424 1,237,802
Effect of dilutive securities:
Stock acquisition rights — — 2,109
Zero coupon convertible bonds — — 17,972
Weighted-average shares for diluted EPS computation 1,027,024 1,114,424 1,257,883
Yen
Basic EPS (124.99) (113.04) 119.40
Diluted EPS (124.99) (113.04) 117.49
Potential shares of common stock which were excluded from the computation of diluted EPS for the fiscal
years ended March 31, 2014, 2015 and 2016 were 142,866 thousand shares, 17,019 thousand shares and
11,357 thousand shares, respectively. The potential shares were excluded as anti-dilutive for the fiscal years
ended March 31, 2014 and 2015 due to Sony incurring a net loss attributable to Sony Corporation’s stockholders
for these fiscal years, and potential shares related to stock acquisition rights were excluded as anti-dilutive for the
fiscal year ended March 31, 2016 when the exercise price for those shares was in excess of the average market
value of Sony’s common stock for the fiscal year. The zero coupon convertible bonds issued in July 2015 were
included in the diluted EPS calculation for the fiscal year ended March 31, 2016 under the if-converted method
beginning upon issuance.
23. Variable interest entities
Sony has, from time to time, entered into various arrangements with VIEs. These arrangements include
several joint ventures in the recorded music business, the U.S.-based music publishing business, the financing of
film production and the outsourcing of manufacturing operations. In addition, Sony has entered into several
accounts receivable sales programs that involve VIEs, which are described in Note 6. For the VIEs that are
described below, it has been determined that Sony is the primary beneficiary and, accordingly, these VIEs are
consolidated by Sony.
Sony’s U.S. subsidiary that is engaged in the recorded music business has entered into several joint ventures
with companies involved in the production and creation of recorded music. Sony has reviewed these joint
ventures and determined that they are VIEs. Based on a qualitative assessment, it was determined that Sony has
the power to direct the activities that most significantly impact the VIEs’ economic performance, as well as the
obligation to absorb the losses of theses VIEs as Sony is responsible for providing funding to these VIEs, and in
most cases absorbs all losses until the VIEs become profitable. As a result, it has been determined that Sony is
the primary beneficiary. The assets of Sony are not available to settle the obligations of these VIEs. As of
March 31, 2016, the total assets and liabilities for these VIEs, on an aggregate basis, were 28,493 million yen and
2,459 million yen, respectively.
F-78