Other Income and Expenses Net Income (Loss) Business Segment Information Services and Software Segment Information Information Processing million), due to such factors as the inclusion of NIFTY Corporation as a consolidated subsidiary. Accordingly, operating income rose ¥17.6 billion, to ¥149.9 billion ($1,414 million). Operating income as a per- centage of net sales improved 0.4 of a percentage point, to 2.9%. Other income and expenses improved ¥7.5 billion, to –¥75.1 billion (–$708 million), while interest and dividend income less interest charges improved ¥8.8 billion, to –¥36.9 billion (–$348 million), due to a reduction in inter- est-bearing liabilities. On the other hand, foreign exchange losses increased by ¥8.8 billion to ¥25.6 billion ($242 mil- lion). As we are gradually shifting our severance benefit plans to contributory defined plans in order to fortify our pension assets, pension costs increased by ¥17.4 billion over the previous period.  In addition, we recorded a gain of ¥20.4 billion ($192 million) from the sale of shares in a Finnish subsidiary of ICL PLC and ¥22.1 billion ($209 million) in gains on sales of marketable securities and other factors, totaling ¥42.6 billion ($402 million), down ¥12.0 billion from the previous year. We recorded ¥37.9 billion ($358 million) in restruc- turing costs, down ¥5.7 billion from last year, related to continued restructuring activities. Fujitsu's restructuring costs accounted for ¥14.7 billion ($138 million) of this amount, while those of our domestic and overseas sub- sidiaries, including ICL and Amdahl Corporation, totaled ¥23.2 billion ($219 million). In fiscal 1998, we recorded a charge of ¥38.1 billion related to the restructuring of the Pathway Project being carried out by ICL. As a result of these factors, income before income taxes and minority interests increased 50.8% from the previous fiscal term, to ¥74.8 billion ($706 million). After deducting corporate income tax of ¥28.3 billion ($267 million) and minority interests of ¥3.7 billion ($35 million), net income improved ¥56.3 billion, to ¥42.7 billion ($403 million), compared with a net loss during fiscal 1998. Net income per share was ¥22.1 ($0.208), and return on equity was 3.5%. Because of the change in the status of Fujitsu Leasing Co., Ltd. during this period from an affiliated company to a con- solidated subsidiary, we have added an additional business segment (Financing) to the previous five segments (Services and Software, Information Processing, Telecommunications, Electronic Devices and Other Operations).  Domestic sales of information processing systems and equipment fell 2.6%, to ¥1,047.1 billion ($9,878 million), and overseas sales dropped 23.2%, to ¥558.1 billion ($5,265 million). As a result, consolidated sales for the cate- gory as a whole decreased 10.9%, to ¥1,605.3 billion Fiscal 1999 consolidated services and software sales rose 4.8% domestically, to ¥1,320.8 billion ($12,461 million), while overseas sales in this category fell 15.4%, to ¥654.5 billion ($6,175 million). Together, these sales declined 2.9%, to ¥1,975.4 billion ($18,636 million). Bolstering domestic sales in this category were steady increases in our network services business, focusing primarily on outsourc- ing, while overseas, favorable developments in European PFI projects and other matters contributed to sales. However, Y2K-related concerns caused a slowdown in domestic and overseas systems integration sales, and over- seas sales in this segment were also adversely affected by yen appreciation, which reduced the value of sales by over- seas subsidiaries by ¥110.0 billion ($1,037 million) when compared to the value as calculated at last year's exchange rate, and as a result, overall sales for the category declined. Affected by such factors as the lower performance of ICL and DMR Consulting Group, Inc. owing to Y2K-related issues, operating income for this sector slipped 18.9%, to ¥134.9 billion ($1,273 million). Net Sales and Operating Income by Business Segment (¥ Billion) Increase (Decrease) Years ended March 31 1999 2000 rate(%) Net Sales (including intersegment sales) Services and software  . . . . . . . . . . . . ¥2,092 ¥2,053 (1.9)% Information processing  . . . . . . . . . . 2,102 1,884 (10.4) Telecommunications  . . . . . . . . . . . . 691 784 13.4 Electronic devices  . . . . . . . . . . . . . . . 609 716 17.5 Financing  . . . . . . . . . . . . . . . . . . . . . — 119 — Other operations  . . . . . . . . . . . . . . . 320 346 8.1 Intersegment elimination  . . . . . . . . . (573) (648) — Consolidated net sales  . . . . . . . . . . . . . ¥5,242 ¥5,255 0.2 % Operating Income Services and software  . . . . . . . . . . . . ¥166 ¥134 (18.9)% Information processing  . . . . . . . . . . 94 38 (58.7) Telecommunications  . . . . . . . . . . . . 15 17 9.6 Electronic devices  . . . . . . . . . . . . . . . (83) 20 — Financing  . . . . . . . . . . . . . . . . . . . . . — 3 — Other operations  . . . . . . . . . . . . . . . 7 3 (50.6) Unallocated operating costs and expenses/intersegment elimination  . . . . . . . . . . . . . . . . . . . (67) (67) — Consolidated operating income  . . . . . . ¥132 ¥149 13.4% 20 Management’s Discussion and Analysis of Operations