Sony 2015 Annual Report Download - page 46

Income before Income Taxes
For the fiscal year ended March 31, 2016, income before income taxes was 304.5 billion yen, an increase of
264.8 billion yen, or 666.5 percent year-on-year. For the fiscal year ended March 31, 2015, income before
income taxes was 39.7 billion yen, an increase of 14.0 billion yen, or 54.3 percent year-on-year.
Income Taxes
Fiscal year ended March 31, 2016 compared to fiscal year ended March 31, 2015:
During the fiscal year ended March 31, 2016, Sony recorded 94.8 billion yen of income tax expense,
resulting in an effective tax rate of 31.1 percent. This effective tax rate was lower than the Japanese statutory tax
rate primarily as a result of profits recorded at foreign subsidiaries and in the insurance business, which are both
subject to lower tax rates, the reversal of valuation allowances on deferred tax assets for local taxes by a
subsidiary in Japan, and an income tax benefit due to a reduction in the corporate tax rate in Japan which resulted
in a reduction of net deferred tax liabilities. These reductions were partially offset by increases in valuation
allowances for deferred tax assets in the national tax filing group in Japan and certain foreign subsidiaries.
Fiscal year ended March 31, 2015 compared to fiscal year ended March 31, 2014:
During the fiscal year ended March 31, 2015, Sony recorded 88.7 billion yen of income tax expense, and
Sony’s effective tax rate exceeded the Japanese statutory tax rate. Sony Corporation and certain of its
subsidiaries which had established valuation allowances incurred losses and, as such, Sony continued to not
recognize the associated tax benefits, except to the extent of certain tax benefits associated with the impact of
gains in other comprehensive income. The higher effective tax rate is also primarily due to nondeductible
goodwill impairments recorded during the fiscal year offset by profits earned at subsidiaries in foreign
jurisdictions with lower income tax rates and an income tax benefit recorded due to reduction in the corporate tax
rate in Japan passed by the Japanese legislature during the fiscal year ended March 31, 2015.
Net Income Attributable to Sony Corporation’s Stockholders
Fiscal year ended March 31, 2016 compared to fiscal year ended March 31, 2015:
For the fiscal year ended March 31, 2016, the net income attributable to Sony Corporation’s stockholders,
which excludes net income attributable to noncontrolling interests, was 147.8 billion yen, compared to a net loss
of 126.0 billion yen in the fiscal year ended March 31, 2015.
Net income attributable to noncontrolling interests of 61.9 billion yen was recorded, a decrease of
15.1 billion yen, or 19.6 percent year-on-year. This decrease was mainly due to the decreased income at Sony
Financial Holdings, Inc. (“SFH”), for which there is a noncontrolling interest of 40 percent.
Basic net income per share and diluted net income per share, attributable to Sony Corporation’s
stockholders for the fiscal year ended March 31, 2016 were 119.40 yen and 117.49 yen respectively, compared to
the loss of 113.04 yen of both basic net income per share and diluted net income per share, attributable to Sony
Corporation’s stockholders for the fiscal year ended March 31, 2015. Refer to Note 22 of the consolidated
financial statements.
Fiscal year ended March 31, 2015 compared to fiscal year ended March 31, 2014:
For the fiscal year ended March 31, 2015, the net loss attributable to Sony Corporation’s stockholders,
which excludes net income attributable to noncontrolling interests, was 126.0 billion yen, compared to a net loss
of 128.4 billion yen in the fiscal year ended March 31, 2014.
Net income attributable to noncontrolling interests of 77.0 billion yen was recorded, an increase of
17.4 billion yen, or 29.3 percent year-on-year. This increase was mainly due to the increased income at SFH, for
which there is a noncontrolling interest of 40 percent.
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