Consolidated Statements of Income <strong>Sony</strong> Corporation and Consolidated Subsidiaries – Year ended March 31 Dollars in millions Yen in millions (Note 3) 2002 2003 2004 2004 Sales and operating revenue: Net sales (Note 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,058,755 ¥6,916,042 ¥6,883,478 $66,187 Financial service revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,190 509,398 565,752 5,440 Other operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,313 48,193 47,161 454 7,578,258 7,473,633 7,496,391 72,081 Costs and expenses: Cost of sales (Notes 17 and 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,239,592 4,979,421 5,058,205 48,637 Selling, general and administrative (Notes 16, 17 and 18) . . . . . . . . . . . . . . . 1,695,897 1,782,367 1,798,239 17,291 Financial service expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458,276 486,464 505,550 4,861 Loss on sale, disposal or impairment of assets, net (Notes 9 and 17) . . . . . . . 49,862 39,941 35,495 341 7,443,627 7,288,193 7,397,489 71,130 Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,631 185,440 98,902 951 Other income: Interest and dividends (Note 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,021 14,441 18,756 180 Royalty income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,512 32,375 34,244 329 Foreign exchange gain, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 1,928 18,059 174 Gain on sales of securities investments, net (Notes 6 and 7) . . . . . . . . . . . . . 1,398 72,552 11,774 113 Gain on issuances of stock by subsidiaries and equity investees (Note 19) . . . 503 – 4,870 47 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,894 36,232 34,587 333 96,328 157,528 122,290 1,176 Other expenses: Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,436 27,314 27,849 268 Loss on devaluation of securities investments . . . . . . . . . . . . . . . . . . . . . . . . 18,458 23,198 16,481 159 Foreign exchange loss, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,736 – – – Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,554 44,835 32,795 315 138,184 95,347 77,125 742 Income before income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,775 247,621 144,067 1,385 Income taxes (Note 20): Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,930 178,847 87,219 838 Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (49,719) (98,016) (34,445) (331) 65,211 80,831 52,774 507 Income before minority interest, equity in net income of affiliated companies and cumulative effect of accounting changes . . . 27,564 166,790 91,293 878 Minority interest in income (loss) of consolidated subsidiaries . . . . . . . . . . . . (16,240) 6,581 2,379 23 Equity in net income (loss) of affiliated companies (Note 6) . . . . . . . . . . . . . . (34,472) (44,690) 1,714 16 Income before cumulative effect of accounting changes . . . . . . . . . . . 9,332 115,519 90,628 871 Cumulative effect of accounting changes (2002: Net of income taxes of ¥2,975 million 2004: Net of income taxes of ¥0 million) (Note 2) . . . . . . . . . . . . . . . . . . . 5,978 – (2,117) (20) Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 15,310 ¥ 115,519 ¥ 88,511 $ 851 (Continued on following page.) 98
Dollars Yen (Note 3) 2002 2003 2004 2004 Per share data (Note 21): Common stock Income before cumulative effect of accounting changes —Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 10.21 ¥125.74 ¥ 98.26 $ 0.94 —Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.18 118.21 93.00 0.89 Cumulative effect of accounting changes —Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.51 – (2.29) (0.02) —Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.49 – (2.12) (0.02) Net income —Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.72 125.74 95.97 0.92 —Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.67 118.21 90.88 0.87 Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00 25.00 25.00 0.24 Subsidiary tracking stock (Note 15) Net income (loss) —Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15.87) (41.98) (41.80) (0.40) Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – – The accompanying notes are an integral part of these statements. * U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥104=U.S.$1, the approximate Tokyo foreign exchange market rate as of March 31, 2004. 99