a) As described in Note 2(b), effective April 1, 2003, Nissan Motor Manufacturing (UK) Ltd., a consolidated subsidiary, implemented early adoption of a new accounting standard for retirement benefits in the United Kingdom. The effect of this change was to decrease operating income in the “Automobile” segment by ¥1,686 million for the year ended March 31, 2004 as compared with the corresponding amount which would have been recorded if the previous method had been followed. b) As described in Note 2(c), effective April 1, 2003, the Company and its domestic consolidated subsidiaries changed their method of accounting for noncancelable lease transactions which transfer substantially all risks and rewards associated with the ownership of assets, from accounting for them as operating leases, to finance leases. The effect of this change was to decrease sales and operating expenses in the “Automobile” segment by ¥237 million and ¥21,805 million respectively, to increase operating income, total assets, depreciation expense and capital expenditures in the “Automobile” segment by ¥21,568 million ¥136,522 million, ¥46,986 million and ¥55,581 million, respectively, to decrease sales and operating expenses and capital expenditures in the “Sales Financing” segment by ¥33,351 million, ¥33,374 million and ¥29,716 million, respectively, to increase operating income, total assets and depreciation expense in the “Sales Financing” segment by ¥23 million, ¥662 million and ¥292 million, respectively, and to increase sales and operating expenses in “Eliminations” by ¥15,645 million for the year ended March 31, 2004 as compared with the corresponding amounts which would have been recorded if the previous method had been followed. FINANCIAL SECTION Nissan Annual Report 2004 93 Fiscal year 2002  (For the year ended Mar. 31, 2003) Sales Automobile Financing Total EliminationsConsolidated Millions of yen I. Sales and operating income Sales to third parties ................................................................................... ¥6,444,460 ¥ 384,128 ¥6,828,588 ¥ — ¥6,828,588 Inter-segment sales and transfers ................................................... 42,775 11,740 54,515 (54,515) — Total sales ............................................................................................................ 6,487,235 395,868 6,883,103 (54,515) 6,828,588 Operating expenses .................................................................................... 5,818,023 335,986 6,154,009 (62,651) 6,091,358 Operating income .......................................................................................... ¥ 669,212 ¥ 59,882 ¥ 729,094 ¥ 8,136 ¥ 737,230 II. Assets, depreciation and capital expenditures Total assets ........................................................................................................ ¥5,607,323 ¥3,103,889 ¥8,711,212 ¥(1,362,029) ¥7,349,183 Depreciation and amortization ............................................................ ¥ 213,569 ¥ 157,556 ¥ 371,125 ¥ — ¥ 371,125 Capital expenditures ................................................................................... ¥ 410,003 ¥ 451,630 ¥ 861,633 ¥ — ¥ 861,633