Bridgestone 2003 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2003 Bridgestone 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 60

  • 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

48
BRIDGESTONE
NOTE 19—SUMMARY OF CERTAIN SIGNIFICANT DIFFERENCES BETWEEN JAPANESE GAAP AND U.S. GAAP
The consolidated financial statements of the Companies have been prepared in accordance with Japanese GAAP, which differs from U.S. GAAP in
certain material respects.
The following table sets forth the reconciliation to U.S. GAAP of net income (loss) for the years ended December 31, 2003, 2002 and 2001 and
shareholders’ equity at December 31, 2003 and 2002.
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2003
Reconciliations of net income to U.S. GAAP
Net income reported in the consolidated
financial statements under Japanese GAAP ¥88,720 ¥45,379 ¥17,389 $828,153
Adjustments required to conform with U.S. GAAP:
(a) Employers’ accounting for pensions 5,011 3,586 3,138 46,775
(b) Business combinations 235 316 434 2,193
(c) Functional currency in highly inflationary economies (60) (1,489) (1,965) (560)
(d) Amortization/impairment of goodwill (See the following note.) 7,451 (7,700) (41,934) 69,551
(e) Impairment of long-lived assets 1,008 1,684 260 9,409
(f) Derivative instruments and hedging activities 104 1,848 458 971
(g) Other adjustments 103 2,576 (879) 961
Income taxes—deferred (1,313) (2,887) (1,534) (12,256)
Minority interests (129) 22 15 (1,204)
Effects of U.S. GAAP adjustments 12,410 (2,044) (42,007) 115,840
Net income (loss) in accordance with U.S. GAAP ¥101,130 ¥43,335 ¥(24,618) $949,993
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Reconciliations of shareholders’ equity to U.S. GAAP
Shareholders’ equity reported in the consolidated
financial statements under Japanese GAAP ¥887,987 ¥796,013 $8,288,874
Adjustments required to conform with U.S. GAAP:
(a) Employers’ accounting for pensions (30,961) (57,360) (289,004)
(b) Business combinations (2,108) (2,343) (19,677)
(c) Functional currency in highly inflationary economies (1,269) 2,440 (11,845)
(d) Amortization/impairment of goodwill 35,833 31,668 334,481
(e) Impairment of long-lived assets 9,277 8,269 86,596
(f) Derivative instruments and hedging activities (1,026) (1,130) (9,577)
(g) Other adjustments 1,146 719 10,697
Income taxes—deferred 7,633 19,986 71,250
Minority interests 489 542 4,564
Effects of U.S. GAAP adjustments 19,014 2,791 177,485
Shareholders’ equity in accordance with U.S. GAAP ¥907,001 ¥798,804 $8,466,359
Note: The net income for the year ended December 31, 2001 is reconciled to a loss of ¥24,618 million in accordance with U.S. GAAP, primarily caused
by the impairment loss of goodwill by ¥38,682 million, while, under Japanese GAAP, the goodwill had already been amortized fully in 1997.
Therefore, no adjustment related to the impairment of goodwill is required to shareholders’ equity for the reconciliation purpose to U.S. GAAP.