☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||
American Depositary * | SONY | New York Stock Exchange | ||
Common ** |
* | American Depositary Shares evidenced by American Depositary Receipts. Each American Depositary Share represents one share of Common Stock. |
** | No par value per share. |
Outstanding as of | ||||||||
March 31, | March 31, | |||||||
Title of Class | (Tokyo Time) | (New York Time) |
Common Stock | 1,234,497,560 | |||||||
American Depositary Shares |
☑ Large accelerated filer | ☐ Accelerated filer | ☐ Non-accelerated filer | ☐ Emerging growth company |
US GAAP | International Financial Reporting Standards as issued by the International Accounting Standards Board | Other☐ |
Item 17 ☐ | Item 18 ☐ |
Yes ☐ | No ☑ |
(i) | Sony’s ability to maintain product quality and customer satisfaction with its products and services; |
(ii) | Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences; |
(iii) | Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms; |
(iv) | the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives; |
(v) | changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility; |
(vi) | Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity; |
(vii) | Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations; |
(viii) | the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending; |
(ix) | Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade; |
(x) | Sony’s ability to forecast demands, manage timely procurement and control inventories; |
(xi) | foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets, liabilities and operating results are denominated; |
(xii) | Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel; |
(xiii) | Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others; |
(xiv) | the impact of changes in interest rates and unfavorable conditions or developments (including market fluctuations or volatility) in the Japanese equity markets on the revenue and operating income of the Financial Services segment; |
(xv) | shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment; |
(xvi) | risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events; |
(xvii) | the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and |
(xviii) | the outcome of pending and/or future legal and/or regulatory proceedings. |
6 | ||||
6 | ||||
6 | ||||
6 | ||||
6 | ||||
6 | ||||
20 | ||||
50 | ||||
104 | ||||
104 | ||||
104 | ||||
104 |
116 | ||||
Item 1. | Identity of Directors, Senior Management and Advisers |
Item 2. | Offer Statistics and Expected Timetable |
Item 3. | Key Information |
A. |
Fiscal year ended March 31 | ||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||
(Yen in millions, yen per share amounts) | ||||||||||||||||||||
Income statement data: | ||||||||||||||||||||
Sales and operating revenue | 7,603,250 | 8,543,982 | 8,665,687 | 8,259,885 | 8,999,360 | |||||||||||||||
Equity in net income (loss) of affiliated companies | 3,563 | 8,569 | (2,999 | ) | 9,637 | 11,487 | ||||||||||||||
Operating income | 288,702 | 734,860 | 894,235 | 845,459 | 971,865 | |||||||||||||||
Income before income taxes | 251,619 | 699,049 | 1,011,648 | 799,450 | 1,192,370 | |||||||||||||||
Income taxes | 124,058 | 151,770 | 45,098 | 177,190 | 995 | |||||||||||||||
Net income attributable to Sony Group Corporation’s stockholders | 73,289 | 490,794 | 916,271 | 582,191 | 1,171,776 | |||||||||||||||
Comprehensive income | 143,652 | 553,220 | 995,542 | 666,032 | 1,207,067 | |||||||||||||||
Data per share of Common Stock: | ||||||||||||||||||||
Net income attributable to Sony Group Corporation’s stockholders* | ||||||||||||||||||||
— Basic | 58.07 | 388.32 | 723.41 | 471.64 | 952.29 | |||||||||||||||
— Diluted | 56.89 | 379.75 | 707.74 | 461.23 | 936.90 | |||||||||||||||
Cash dividends declared Interim | 10.00 | 12.50 | 15.00 | 20.00 | 25.00 | |||||||||||||||
(8.79 cents | ) | (11.11 cents | ) | (13.18 cents | ) | (18.38 cents | ) | (23.91 cents | ) | |||||||||||
Cash dividends declared Fiscal year-end | 10.00 | 15.00 | 20.00 | 25.00 | 30.00 | |||||||||||||||
(9.13 cents | ) | (13.75 cents | ) | (18.28 cents | ) | (22.76 cents | ) | (27.29 cents | ) | |||||||||||
Balance sheet data: | ||||||||||||||||||||
Sony Group Corporation’s stockholders’ equity | 2,497,246 | 2,967,366 | 3,746,377 | 4,125,306 | 5,575,839 | |||||||||||||||
Common stock | 860,645 | 865,678 | 874,291 | 880,214 | 880,214 | |||||||||||||||
Net assets | 3,135,422 | 3,647,157 | 4,436,690 | 4,789,535 | 5,621,476 | |||||||||||||||
Total assets** | 17,660,556 | 19,065,538 | 20,981,586 | 23,039,343 | 26,354,840 | |||||||||||||||
Number of shares issued at fiscal year-end (thousands of shares of common stock) | 1,263,764 | 1,266,552 | 1,271,230 | 1,261,059 | 1,261,059 | |||||||||||||||
Sony Group Corporation’s stockholders’ equity per share of common stock | 1,977.72 | 2,344.96 | 2,995.31 | 3,380.96 | 4,499.45 |
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
Item 4. | Information on the Company |
A. | History and Development of the Company |
B. | Business Overview |
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||||||
Japan | 2,591,784 | 2,472,479 | 2,962,465 | 2,764,321 | 2,691,972 | |||||||||||||||
United States | 1,982,135 | 1,864,390 | 2,153,466 | 2,766,021 | 3,401,402 | |||||||||||||||
Europe | 1,862,166 | 1,697,791 | 1,816,244 | 1,870,091 | 2,190,311 | |||||||||||||||
China | 770,416 | 845,235 | 762,766 | 771,006 | 855,437 | |||||||||||||||
Asia-Pacific | 912,193 | 892,026 | 861,623 | 1,149,261 | 1,563,414 | |||||||||||||||
Other Areas | 546,993 | 487,964 | 442,796 | 600,813 | 837,301 | |||||||||||||||
Total | 8,665,687 | 8,259,885 | 8,999,360 | 9,921,513 | 11,539,837 | |||||||||||||||
Government of Japan’s Official Development Assistance (“ODA”). The sale was completed in May 2023. Sony’s expected gross revenue from the sale is approximately 267 thousand yen, and Sony estimates that its net profit from such sales is 50 thousand yen. |
(a) | reducing Scope 1, 2 and 3 emissions to zero or a residual level consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways; and |
(b) | neutralizing any residual emissions at the net-zero target date – and any GHG emissions released into the atmosphere thereafter. |
1. | By 2030, Sony aims to make direct and indirect GHG emissions (Scopes 1 and 2) of its own business operations net-zero. For other emissions originating from stages such as products, supply chains, and logistics (Scope 3), Sony aims to reduce GHG emissions during product use by 45% compared to the fiscal year ended March 31, 2019 by 2035. By 2040, Sony aims to achievenet-zero emissions in all Scopes. |
2. | By 2030, Sony aims to achieve 100% renewable electricity used at its own business sites. The percentage of electricity use derived from renewable energy targeted to be achieved as of 2025 has been set at 35%. |
*3 | Process by which carbon from the atmosphere is converted into organic compounds. |
*4 | Synecoculture is a trademark of Sony Group Corporation. |
C. | Organizational Structure |
Name of company | Country of incorporation/residence | (As of March 31, Percentage owned | ||||
Sony Interactive Entertainment Inc. | Japan | 100.0 | ||||
Sony Music Entertainment (Japan) Inc. | Japan | 100.0 | ||||
Sony Corporation | Japan | 100.0 | ||||
Sony Global Manufacturing & Operations Corporation | Japan | 100.0 | ||||
Sony Semiconductor Solutions Corporation | Japan | 100.0 | ||||
Sony Semiconductor Manufacturing Corporation | Japan | 100.0 | ||||
Sony | ||||||
Japan | 100.0 | |||||
Sony Network Communications Inc. | Japan | 100.0 | ||||
Sony | ||||||
Japan | 100.0 | |||||
Sony Storage Media Solutions Corporation | Japan | 100.0 | ||||
Sony | ||||||
Japan | 100.0 | |||||
Sony | ||||||
Japan | 100.0 | |||||
Sony Life Insurance Co., Ltd. | Japan | 100.0 | ||||
Sony Bank Inc. | Japan | 100.0 | ||||
Sony Assurance Inc. | Japan | 100.0 | ||||
Sony Corporation of | ||||||
U.S.A. | 100.0 | |||||
Sony Interactive Entertainment LLC | ||||||
U.S.A. | 100.0 | |||||
Sony Music Entertainment | U.S.A. | 100.0 | ||||
Sony Music Publishing LLC | U.S.A. | 100.0 | ||||
Sony Pictures Entertainment Inc. | U.S.A. | 100.0 | ||||
Columbia Pictures Industries, Inc. | U.S.A. | 100.0 | ||||
CPT Holdings, Inc. | U.S.A. | 100.0 | ||||
Sony Electronics Inc. | U.S.A. | 100.0 | ||||
Sony Europe B.V. | U.K. | 100.0 | ||||
Sony Interactive Entertainment Europe Ltd. | U.K. | 100.0 | ||||
Sony Global Treasury Services Plc | U.K. | 100.0 | ||||
Sony Overseas Holding B.V. | Netherlands | 100.0 | ||||
Sony (China) Limited | China | 100.0 | ||||
Sony EMCS (Malaysia) Sdn. Bhd. | Malaysia | 100.0 | ||||
Sony Electronics (Singapore) Pte. Ltd. | Singapore | 100.0 |
D. | Property, Plant and Equipment |
floor space | ||||||
floor space | ||||||
Facility or Subsidiary Name (Primary Location) | Segment | Details | Carrying Amount (Yen in millions) | Number of employees *2 | ||||||||||||||||||||
Land (Area (thousand square meters)) | Buildings | Machinery, equipment and other assets *1 | Right-of-use assets | |||||||||||||||||||||
In Japan (Sony Group Corporation *3 ): | ||||||||||||||||||||||||
Headquarters (Minato-ku, Tokyo) | Corporate | Headquarters facilities | | 1,275 (19 | ) | 21,862 | 14,681 | — | 1,435 | |||||||||||||||
Others *4 | Corporate | Headquarters facilities | | 6,582 (305 | ) | 34,544 | 3,718 | — | 1,010 | |||||||||||||||
In Japan (Subsidiaries): | ||||||||||||||||||||||||
Sony Interactive Entertainment Inc. (Minato-ku, Tokyo) | G&NS | Home gaming consoles / cloud-related software | | — (— | ) | 1,407 | 168,168 | 11,381 | 1,900 | |||||||||||||||
Sony Corporation (Minato-ku, Tokyo) | ET&S | Research facilities for TVs, audio / video devices, cameras, broadcasting equipment and medical equipment | | — (— | ) | 2,372 | 47,810 | 35,495 | 7,300 | |||||||||||||||
Sony Network Communications Inc. *5 (Shinagawa-ku, Tokyo) | ET&S | Data communication facilities | | — (— | ) | 527 | 69,385 | 5,177 | 1,900 | |||||||||||||||
Sony Global Manufacturing & Operations Corporation (Kohda Site, etc.) (Minato-ku, Tokyo) | ET&S, I&SS, All Other | Production facilities for electronic devices, etc. | | 5,543 (468 | ) | 10,870 | 16,430 | 5,517 | 4,000 | |||||||||||||||
Sony Semiconductor Solutions Corporation (Atsugi-shi, Kanagawa) | I&SS | Research facilities for image sensors, etc. | | — (— | ) | 1,326 | 36,070 | 19,525 | 7,300 | |||||||||||||||
Sony Semiconductor Manufacturing Corporation (Nagasaki TEC, etc.) (Kikuchi-gun, Kumamoto) | I&SS | Production facilities for image sensors, etc. | | 11,244 (622 | ) | 144,569 | 545,869 | 10,075 | 8,100 | |||||||||||||||
Sony Semiconductor Energy Management Corporation (Nagasaki TEC, etc.) (Kikuchi-gun, Kumamoto) | I&SS | Energy supply facilities for the manufacturing of image sensors, etc. | | — (— | ) | 25,638 | 87,833 | 35,638 | 100 | |||||||||||||||
Sony Music Entertainment (Japan) Inc. *5 (Chiyoda-ku, Tokyo) | Music | Music facilities and in-house software | | 22,548 (320 | ) | 11,009 | 55,105 | 10,595 | 4,200 | |||||||||||||||
Sony Financial Group Inc. *5 (Chiyoda-ku, Tokyo) | Financial Services | In-house software | | 6,324 (25 | ) | 6,290 | 70,064 | 84,023 | 13,500 | |||||||||||||||
Sony Global Solutions Inc. (Minato-ku, Tokyo) | Corporate | In-house software | | — (— | ) | 490 | 21,889 | 995 | 600 | |||||||||||||||
Outside Japan (Subsidiaries): | ||||||||||||||||||||||||
Sony Corporation of America *5 (New York, United States) | ET&S, I&SS | Production facilities for electronic products, etc. | | 317 (112 | ) | 18,875 | 3,841 | 3,395 | 1,300 | |||||||||||||||
Music | Music catalogs, etc. | | 80 (4 | ) | 9,401 | 797,219 | 41,901 | 6,900 | ||||||||||||||||
Pictures | Production facilities for motion pictures, television programming, video software, etc. | | 11,070 (268 | ) | 45,917 | 814,019 | 39,486 | 9,100 | ||||||||||||||||
All Other, Corporate | Office buildings and machinery, etc. | | 871 (142 | ) | 10,473 | 15,516 | 17,994 | 1,600 | ||||||||||||||||
Sony Interactive Entertainment LLC *5 (California, United States) | G&NS | Cloud-related facilities, etc. | | — (— | ) | 6,909 | 150,792 | 104,119 | 6,100 | |||||||||||||||
Sony Europe B.V. *5 (Surrey, United Kingdom) | ET&S, I&SS, All Other | Office buildings and sales facilities, etc. | | 2,344 (45 | ) | 3,822 | 11,956 | 9,078 | 3,900 | |||||||||||||||
Sony EMCS (Malaysia) Sdn. Bhd. (Selangor, Malaysia) | ET&S | Production facilities for electronic devices, etc. | | — (— | ) | 4,589 | 8,482 | 185 | 4,900 | |||||||||||||||
Sony Electronics (Singapore) Pte. Ltd. (Singapore) | ET&S, I&SS, All Other, Corporate | In-house software | | — (— | ) | 88 | 11,802 | 1,633 | 400 |
Item 4A. | Unresolved Staff Comments |
Item 5. | Operating and Financial Review and Prospects |
A. | Operating Results |
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in billions) | (Yen in billions) | |||||||||||||||
Sales and operating revenue | 8,259.9 | 8,999.4 | ||||||||||||||
Equity in net income (loss) of affiliated companies | 9.6 | 11.5 | ||||||||||||||
Sales and financial services revenue | 9,921.5 | 11,539.8 | ||||||||||||||
Operating income | 845.5 | 971.9 | 1,202.3 | 1,208.2 | ||||||||||||
Income before income taxes | 799.5 | 1,192.4 | 1,117.5 | 1,180.3 | ||||||||||||
Net income attributable to Sony Group Corporation’s stockholders | 582.2 | 1,171.8 | 882.2 | 937.1 |
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Sales to external customers by product category | ||||||||||||||||
Digital Software and Add-on Content | 1,010,296 | 1,454,654 | 1,424,459 | 1,523,045 | ||||||||||||
Network Services | 337,265 | 382,950 | 409,355 | 464,676 | ||||||||||||
Hardware & Others | 572,199 | 767,109 | 840,542 | 1,550,812 | ||||||||||||
Sales to external customers | 1,919,760 | 2,604,713 | 2,674,356 | 3,538,533 | ||||||||||||
Intersegment sales | 57,791 | 51,565 | 65,407 | 106,065 | ||||||||||||
G&NS segment total sales | 1,977,551 | 2,656,278 | 2,739,763 | 3,644,598 | ||||||||||||
G&NS segment operating income | 238,400 | 342,192 | 346,089 | 250,006 | ||||||||||||
(Units in millions) | (Units in millions) | |||||||||||||||
Major product unit sales | ||||||||||||||||
PlayStation ® 4 hardware | 13.5 | * | 5.7 | |||||||||||||
PlayStation ® 5 hardware | — | 7.8 | ||||||||||||||
PS5 ™ hardware | 11.5 | 19.1 | ||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Sales to external customers by product category | ||||||||||||||||
Recorded Music — Streaming | 276,039 | 337,100 | 462,368 | 598,868 | ||||||||||||
Recorded Music — Others | 191,114 | 179,167 | 206,412 | 286,270 | ||||||||||||
Music Publishing | 157,478 | 156,862 | 200,334 | 276,665 | ||||||||||||
Visual Media & Platform | 213,961 | 254,121 | 231,418 | 203,012 | ||||||||||||
Sales to external customers | 838,592 | 927,250 | 1,100,532 | 1,364,815 | ||||||||||||
Intersegment sales | 11,317 | 12,617 | 16,417 | 15,817 | ||||||||||||
Music segment total sales | 849,909 | 939,867 | 1,116,949 | 1,380,632 | ||||||||||||
Music segment operating income | 142,345 | 188,056 | 210,933 | 263,107 | ||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Sales to external customers by product category | ||||||||||||||||
Motion Pictures | 475,061 | 271,081 | 518,840 | 464,043 | ||||||||||||
Television Productions | 301,224 | 267,123 | 419,494 | 536,250 | ||||||||||||
Media Networks | 234,429 | 219,376 | 298,065 | 364,594 | ||||||||||||
Sales to external customers | 1,010,714 | 757,580 | 1,236,399 | 1,364,887 | ||||||||||||
Intersegment sales | 1,140 | 1,187 | 2,512 | 4,535 | ||||||||||||
Pictures segment total sales | 1,011,854 | 758,767 | 1,238,911 | 1,369,422 | ||||||||||||
Pictures segment operating income | 68,157 | 80,478 | 217,393 | 119,255 | ||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Sales to external customers by product category | ||||||||||||||||
TVs | 646,513 | 709,007 | 858,837 | 733,251 | ||||||||||||
Audio & Video | 346,060 | 313,975 | 326,704 | 391,608 | ||||||||||||
Still and Video Cameras | 384,142 | 338,694 | 414,898 | 565,018 | ||||||||||||
Mobile Communications | 362,144 | 358,580 | 365,864 | 356,771 | ||||||||||||
Other | 231,021 | 182,631 | 331,583 | 390,091 | ||||||||||||
Sales to external customers | 1,969,880 | 1,902,887 | 2,297,886 | 2,436,739 | ||||||||||||
Intersegment sales | 21,388 | 17,843 | 41,300 | 39,286 | ||||||||||||
EP&S segment total sales | 1,991,268 | 1,920,730 | ||||||||||||||
ET&S segment total sales | 2,339,186 | 2,476,025 | ||||||||||||||
EP&S segment operating income | 87,276 | 139,180 | ||||||||||||||
ET&S segment operating income | 212,942 | 179,461 | ||||||||||||||
(Units in millions) | (Units in millions) | |||||||||||||||
Major product unit sales | ||||||||||||||||
TVs | 9.3 | 9.3 | 8.5 | 6.6 | ||||||||||||
Smartphones within Mobile Communications | 3.2 | 2.9 | ||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Sales to external customers | 985,259 | 937,859 | 992,200 | 1,301,481 | ||||||||||||
Intersegment sales | 85,317 | 74,638 | 84,224 | 100,706 | ||||||||||||
I&SS segment total sales | 1,070,576 | 1,012,497 | 1,076,424 | 1,402,187 | ||||||||||||
I&SS segment operating income | 235,584 | 145,876 | 155,597 | 212,214 | ||||||||||||
Fiscal year ended March 31 | ||||||||
2020 | 2021 | |||||||
(Yen in billions) | ||||||||
G&NS | 56.3 | 76.1 | ||||||
EP&S | 206.5 | 231.3 | ||||||
I&SS | 250.5 | 282.0 | ||||||
Total | 513.3 | 589.4 | ||||||
Fiscal year ended March 31 | ||||||||
2020 | 2021 | |||||||
In-house production | 73 | % | 66 | % | ||||
Outsourced production | 27 | % | 34 | % | ||||
Total | 100 | % | 100 | % | ||||
Fiscal year ended March 31 | ||||||||
2020 | 2021 | |||||||
Japan | 63% (92% | ) | 61% (92% | ) | ||||
China | 12% (60% | ) | 13% (53% | ) | ||||
Asia-Pacific (other than Japan and China) | 24% (66% | ) | 24% (72% | ) | ||||
Americas and Europe | 1% (20% | ) | 1% (39% | ) | ||||
Total | 100% | 100% | ||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Financial services revenue | 1,307,748 | 1,668,921 | 1,533,829 | 1,454,546 | ||||||||||||
Financial Services segment operating income | 129,597 | 164,582 | 150,111 | 223,935 |
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
Financial Services segment | 2020 | 2021 | 2022 | 2023 | ||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Financial services revenue | 1,307,748 | 1,668,921 | 1,533,829 | 1,454,546 | ||||||||||||
Financial services expenses | 1,179,776 | 1,496,364 | 1,383,054 | 1,234,758 | ||||||||||||
Other operating (income) expenses, net | (1,729 | ) | 7,975 | |||||||||||||
Other operating (income) expense, net | 664 | (4,147 | ) | |||||||||||||
1,178,047 | 1,504,339 | 1,383,718 | 1,230,611 | |||||||||||||
Equity in net loss of affiliated companies | (104 | ) | — | |||||||||||||
Share of profit (loss) of investments accounted for using the equity method | — | — | ||||||||||||||
Operating income | 129,597 | 164,582 | 150,111 | 223,935 | ||||||||||||
Other income (expenses), net | (20 | ) | (84 | ) | ||||||||||||
Financial income (expenses), net | — | — | ||||||||||||||
Income before income taxes | 129,577 | 164,498 | 150,111 | 223,935 | ||||||||||||
Income taxes | 36,311 | 47,068 | 45,402 | 63,865 | ||||||||||||
Net income | 93,266 | 117,430 | 104,709 | 160,070 | ||||||||||||
Less — Net income attributable to noncontrolling interests | 483 | 695 | ||||||||||||||
Net income of Financial Services | 104,216 | 159,698 | ||||||||||||||
Net income of Financial Services | 92,783 | 116,735 | ||||||||||||||
Net income attributable to noncontrolling interests | 493 | 372 | ||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
Sony without Financial Services segment | 2020 | 2021 | 2022 | 2023 | ||||||||||||
(Yen in millions) | (Yen in millions) | |||||||||||||||
Net sales and operating revenue | 6,965,971 | 7,344,111 | ||||||||||||||
Sales | 8,402,217 | 10,101,979 | ||||||||||||||
Costs of sales | 4,764,014 | 5,083,615 | 5,856,925 | 7,186,767 | ||||||||||||
Selling, general and administrative | 1,497,764 | 1,465,450 | 1,582,850 | 1,961,906 | ||||||||||||
Other operating (income) expense, net | (3,841 | ) | (507 | ) | (66,158 | ) | (5,566 | ) | ||||||||
6,257,937 | 6,548,558 | 7,373,617 | 9,143,107 | |||||||||||||
Equity in net income (loss) of affiliated companies | 9,741 | 11,487 | ||||||||||||||
Share of profit (loss) of investments accounted for using the equity method | 23,646 | 24,449 | ||||||||||||||
Operating income | 717,775 | 807,040 | 1,052,246 | 983,321 | ||||||||||||
Other income (expenses), net | (28,299 | ) | 240,402 | |||||||||||||
Financial income (expenses), net | (45,698 | ) | 13,437 | |||||||||||||
Income before income taxes | 689,476 | 1,047,442 | 1,006,548 | 996,758 | ||||||||||||
Income taxes | 141,552 | (46,365 | ) | 183,689 | 172,528 | |||||||||||
Net income | 547,924 | 1,093,807 | 822,859 | 824,230 | ||||||||||||
Less — Net income attributable to noncontrolling interests | 7,092 | 3,552 | ||||||||||||||
Net income of Sony without Financial Services | 540,832 | 1,090,255 | 817,123 | 818,106 | ||||||||||||
Net income attributable to noncontrolling interests | 5,736 | 6,124 | ||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||
Consolidated | 2020 | 2021 | ||||||||||||||
(Yen in millions) | ||||||||||||||||
Financial services revenue | 1,299,847 | 1,661,520 | ||||||||||||||
Net sales and operating revenue | 6,960,038 | 7,337,840 | ||||||||||||||
8,259,885 | 8,999,360 | |||||||||||||||
Costs of sales | 4,753,174 | 5,072,596 | ||||||||||||||
Selling, general and administrative | 1,502,625 | 1,469,955 | ||||||||||||||
Financial services expenses | 1,171,875 | 1,488,963 | ||||||||||||||
Other operating (income) expenses, net | (3,611 | ) | 7,468 | |||||||||||||
7,424,063 | 8,038,982 | |||||||||||||||
Equity in net income (loss) of affiliated companies | 9,637 | 11,487 | ||||||||||||||
Operating income | 845,459 | 971,865 | ||||||||||||||
Other income (expenses), net | (46,009 | ) | 220,505 | |||||||||||||
Income before income taxes | 799,450 | 1,192,370 | ||||||||||||||
Income taxes | 177,190 | 995 | ||||||||||||||
Net income | 622,260 | 1,191,375 | ||||||||||||||
Less — Net income attributable to noncontrolling interests | 40,069 | 19,599 | ||||||||||||||
Net income attributable to Sony Group Corporation’s Stockholders | 582,191 | 1,171,776 | ||||||||||||||
Fiscal year ended March 31 | ||||||||
Consolidated | 2022 | 2023 | ||||||
(Yen in millions) | ||||||||
Sales | 8,396,702 | 10,095,841 | ||||||
Financial services revenue | 1,524,811 | 1,443,996 | ||||||
Total sales and financial services revenue | 9,921,513 | 11,539,837 | ||||||
Costs of sales | 5,845,804 | 7,174,723 | ||||||
Selling, general and administrative | 1,588,473 | 1,969,170 | ||||||
Financial services expenses | 1,374,037 | 1,224,208 | ||||||
Other operating (income) expenses, net | (65,494 | ) | (12,021 | ) | ||||
8,742,820 | 10,356,080 | |||||||
Share of profit (loss) of investments accounted for using the equity method | 23,646 | 24,449 | ||||||
Operating income | 1,202,339 | 1,208,206 | ||||||
Financial income (expenses), net | (84,836 | ) | (27,893 | ) | ||||
Income before income taxes | 1,117,503 | 1,180,313 | ||||||
Income taxes | 229,097 | 236,691 | ||||||
Net income | 888,406 | 943,622 | ||||||
Net income attributable to Sony Group Corporation’s Stockholders | 882,178 | 937,126 | ||||||
Net income attributable to noncontrolling interests | 6,228 | 6,496 | ||||||
Fiscal year ended March 31 | ||||||||
2020 | 2021 | |||||||
(Yen in millions) | ||||||||
Restructuring charges | 24,966 | 25,876 |
Fiscal year ended March 31 | Impact of changes in foreign exchange rates | Fiscal year ended March 31 | Impact of changes in foreign exchange rates | |||||||||||||||||||||||||
2020 | 2021 | 2020 to 2021 | 2022 | 2023 | 2022 to 2023 | |||||||||||||||||||||||
(Yen in billions) | (Yen in billions) | |||||||||||||||||||||||||||
G&NS | Sales | 1,977.6 | 2,656.3 | (15.1 | ) | Sales | 2,739.8 | 3,644.6 | +419.8 | |||||||||||||||||||
Operating income | 238.4 | 342.2 | +15.3 | Operating income | 346.1 | 250.0 | -32.4 | |||||||||||||||||||||
EP&S | Sales | 1,991.3 | 1,920.7 | (17.1 | ) | |||||||||||||||||||||||
ET&S | Sales | 2,339.2 | 2,476.0 | +237.5 | ||||||||||||||||||||||||
Operating income | 87.3 | 139.2 | +6.6 | Operating income | 212.9 | 179.5 | +9.4 | |||||||||||||||||||||
I&SS | Sales | 1,070.6 | 1,012.5 | (21.4 | ) | Sales | 1,076.4 | 1,402.2 | +202.7 | |||||||||||||||||||
Operating income | 235.6 | 145.9 | (8.6 | ) | Operating income | 155.6 | 212.2 | +120.9 |
Financial Services | Sony without Financial Services | Consolidated | ||||||||||||||||||||||
March 31 2020 | March 31 2021 | March 31 2020 | March 31 2021 | March 31 2020 | March 31 2021 | |||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents (*1) | 550,039 | 497,218 | 962,318 | 1,289,764 | 1,512,357 | 1,786,982 | ||||||||||||||||||
Marketable securities (*2) | 1,847,772 | 2,902,438 | — | — | 1,847,772 | 2,902,438 | ||||||||||||||||||
Notes and accounts receivable, trade and contract assets | 10,532 | 15,125 | 999,976 | 1,070,079 | 1,002,920 | 1,069,894 | ||||||||||||||||||
Inventories | — | — | 589,969 | 637,391 | 589,969 | 637,391 | ||||||||||||||||||
Other receivables | 73,117 | 63,725 | 115,100 | 220,069 | 188,106 | 283,499 | ||||||||||||||||||
Prepaid expenses and other current assets | 181,247 | 181,540 | 413,496 | 369,696 | 594,021 | 538,540 | ||||||||||||||||||
Total current assets | 2,662,707 | 3,660,046 | 3,080,859 | 3,586,999 | 5,735,145 | 7,218,744 | ||||||||||||||||||
Film costs | — | — | 427,336 | 459,426 | 427,336 | 459,426 | ||||||||||||||||||
Investments and advances (*3) | 12,457,977 | 13,588,848 | 351,936 | 749,661 | 12,734,132 | 14,263,995 | ||||||||||||||||||
Investments in Financial Services, at cost | — | — | 153,968 | 550,483 | — | — | ||||||||||||||||||
Property, plant and equipment | 18,247 | 19,252 | 890,640 | 966,237 | 908,644 | 985,434 | ||||||||||||||||||
Other assets: | ||||||||||||||||||||||||
Right-of-use | 58,897 | 66,952 | 333,753 | 310,145 | 392,610 | 377,094 | ||||||||||||||||||
Intangibles, net | 49,871 | 53,069 | 856,439 | 943,236 | 906,310 | 996,305 | ||||||||||||||||||
Goodwill | 10,834 | 10,834 | 773,054 | 816,315 | 783,888 | 827,149 | ||||||||||||||||||
Deferred insurance acquisition costs | 600,901 | 657,420 | — | — | 600,901 | 657,420 | ||||||||||||||||||
Deferred income taxes | 10,365 | 1,506 | 200,021 | 303,778 | 210,372 | 207,470 | ||||||||||||||||||
Other | 38,949 | 35,010 | 305,028 | 330,754 | 340,005 | 361,803 | ||||||||||||||||||
Total other assets | 769,817 | 824,791 | 2,468,295 | 2,704,228 | 3,234,086 | 3,427,241 | ||||||||||||||||||
Total assets | 15,908,748 | 18,092,937 | 7,373,034 | 9,017,034 | 23,039,343 | 26,354,840 | ||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Short-term borrowings (*4) | 758,737 | 1,153,504 | 81,246 | 166,063 | 839,983 | 1,319,567 | ||||||||||||||||||
Short-term operating lease liabilities | 9,363 | 9,422 | 59,595 | 63,941 | 68,942 | 73,362 | ||||||||||||||||||
Notes and accounts payable, trade | — | — | 380,810 | 599,569 | 380,810 | 599,569 | ||||||||||||||||||
Accounts payable, other and accrued expenses | 40,457 | 39,885 | 1,591,072 | 1,718,252 | 1,630,197 | 1,756,833 | ||||||||||||||||||
Accrued income and other taxes | 22,825 | 3,944 | 123,171 | 161,462 | 145,996 | 165,406 | ||||||||||||||||||
Deposits from customers in the banking business | 2,440,783 | 2,773,885 | — | — | 2,440,783 | 2,773,885 | ||||||||||||||||||
Other | 226,455 | 632,047 | 514,368 | 521,753 | 733,732 | 1,126,802 | ||||||||||||||||||
Total current liabilities | 3,498,620 | 4,612,687 | 2,750,262 | 3,231,040 | 6,240,443 | 7,815,424 | ||||||||||||||||||
Long-term debt | 240,143 | 329,157 | 398,793 | 448,098 | 634,966 | 773,294 | ||||||||||||||||||
Long-term operating lease liabilities | 41,192 | 36,890 | 273,668 | 253,369 | 314,836 | 290,259 | ||||||||||||||||||
Accrued pension and severance costs | 34,211 | 34,637 | 290,444 | 219,466 | 324,655 | 254,103 | ||||||||||||||||||
Deferred income taxes | 391,883 | 359,060 | 173,022 | 120,576 | 549,538 | 366,761 | ||||||||||||||||||
Future insurance policy benefits and other (*5) | 6,246,047 | 6,599,977 | — | — | 6,246,047 | 6,599,977 | ||||||||||||||||||
Policyholders’ account in the insurance business | 3,642,271 | 4,331,065 | — | — | 3,642,271 | 4,331,065 | ||||||||||||||||||
Other | 21,843 | 18,234 | 289,574 | 296,785 | 289,285 | 294,302 | ||||||||||||||||||
Total liabilities | 14,116,210 | 16,321,707 | 4,175,763 | 4,569,334 | 18,242,041 | 20,725,185 | ||||||||||||||||||
Redeemable noncontrolling interest | — | — | 7,767 | 8,179 | 7,767 | 8,179 | ||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Stockholders’ equity of Financial Services | 1,790,333 | 1,768,300 | — | — | — | — | ||||||||||||||||||
Stockholders’ equity of Sony without Financial Services | — | — | 3,159,071 | 4,396,814 | — | — | ||||||||||||||||||
Sony Group Corporation’s stockholders’ equity | — | — | — | — | 4,125,306 | 5,575,839 | ||||||||||||||||||
Noncontrolling interests | 2,205 | 2,930 | 30,433 | 42,707 | 664,229 | 45,637 | ||||||||||||||||||
Total Equity | 1,792,538 | 1,771,230 | 3,189,504 | 4,439,521 | 4,789,535 | 5,621,476 | ||||||||||||||||||
Total liabilities and equity | 15,908,748 | 18,092,937 | 7,373,034 | 9,017,034 | 23,039,343 | 26,354,840 | ||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||
Financial Services | Sony without Financial Services | Consolidated | ||||||||||||||||||||||
March 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents *1 | ¥ | 889,140 | ¥ | 756,493 | ¥ | 1,160,496 | ¥ | 724,407 | ¥ | 2,049,636 | ¥ | 1,480,900 | ||||||||||||
Investments and advances in the Financial Services segment *2 | 360,673 | 328,357 | — | — | 360,673 | 328,357 | ||||||||||||||||||
Trade and other receivables, and contract assets | 169,929 | 134,404 | 1,478,620 | 1,668,257 | 1,628,521 | 1,777,939 | ||||||||||||||||||
Inventories *3 | — | — | 874,007 | 1,468,042 | 874,007 | 1,468,042 | ||||||||||||||||||
Other financial assets | 81,174 | 47,044 | 68,124 | 63,906 | 149,301 | 110,950 | ||||||||||||||||||
Other current assets | 72,441 | 63,025 | 450,953 | 562,442 | 473,070 | 610,330 | ||||||||||||||||||
Total current assets | 1,573,357 | 1,329,323 | 4,032,200 | 4,487,054 | 5,535,208 | 5,776,518 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Investments accounted for using the equity method | — | — | 268,513 | 325,220 | 268,513 | 325,220 | ||||||||||||||||||
Investments and advances in the Financial Services segment *2 | 18,445,088 | 18,445,728 | — | — | 18,445,088 | 18,445,728 | ||||||||||||||||||
Investments in Financial Services, at cost | — | — | 550,483 | 550,483 | — | — | ||||||||||||||||||
Property, plant and equipment | 18,010 | 15,316 | 1,095,241 | 1,329,219 | 1,113,213 | 1,344,864 | ||||||||||||||||||
Right-of-use | 73,774 | 84,023 | 339,658 | 395,210 | 413,430 | 478,063 | ||||||||||||||||||
Goodwill and intangible assets, including content assets *4 | 72,578 | 78,197 | 2,672,466 | 3,322,639 | 2,745,044 | 3,400,836 | ||||||||||||||||||
Deferred insurance acquisition costs | 676,526 | 730,864 | — | — | 676,526 | 730,864 | ||||||||||||||||||
Deferred tax assets | — | — | 332,330 | 431,533 | 298,589 | 384,839 | ||||||||||||||||||
Other financial assets | 37,037 | 46,941 | 663,233 | 789,470 | 696,306 | 832,344 | ||||||||||||||||||
Other non-current assets | 77,657 | 75,143 | 284,834 | 319,306 | 289,050 | 321,946 | ||||||||||||||||||
Total non-current assets | 19,400,670 | 19,476,212 | 6,206,758 | 7,463,080 | 24,945,759 | 26,264,704 | ||||||||||||||||||
Total assets | ¥ | 20,974,027 | ¥ | 20,805,535 | ¥ | 10,238,958 | ¥ | 11,950,134 | ¥ | 30,480,967 | ¥ | 32,041,222 | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Short-term borrowings | ¥ | 1,964,776 | ¥ | 1,891,856 | ¥ | 183,187 | ¥ | 211,020 | ¥ | 2,147,962 | ¥ | 2,102,876 | ||||||||||||
Trade and other payables | 118,921 | 77,595 | 1,744,011 | 1,812,670 | 1,843,242 | 1,865,993 | ||||||||||||||||||
Deposits from customers in the banking business | 2,886,361 | 3,163,237 | — | — | 2,886,361 | 3,163,237 | ||||||||||||||||||
Income taxes payables | 4,444 | 13,370 | 101,648 | 139,330 | 106,092 | 152,700 | ||||||||||||||||||
Participation and residual liabilities in the Pictures segment | — | — | 190,162 | 230,223 | 190,162 | 230,223 | ||||||||||||||||||
Other financial liabilities | 68,793 | 43,128 | 29,050 | 30,444 | 97,843 | 73,572 | ||||||||||||||||||
Other current liabilities | 242,937 | 222,039 | 1,296,205 | 1,513,882 | 1,488,488 | 1,720,335 | ||||||||||||||||||
Total current liabilities | 5,286,232 | 5,411,225 | 3,544,263 | 3,937,569 | 8,760,150 | 9,308,936 | ||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||||||
Long-term debt | 470,498 | 663,353 | 733,148 | 1,104,344 | 1,203,646 | 1,767,696 | ||||||||||||||||||
Defined benefit liabilities | 37,167 | 37,183 | 217,381 | 198,938 | 254,548 | 236,121 | ||||||||||||||||||
Deferred tax liabilities | 634,576 | 304,838 | 110,715 | 112,938 | 696,492 | 356,324 | ||||||||||||||||||
Future insurance policy benefits and other | 7,039,034 | 7,264,421 | — | — | 7,039,034 | 7,264,421 | ||||||||||||||||||
Policyholders’ account in the life insurance business | 4,791,295 | 5,148,579 | — | — | 4,791,295 | 5,148,579 | ||||||||||||||||||
Participation and residual liabilities in the Pictures segment | — | — | 220,113 | 192,952 | 220,113 | 192,952 | ||||||||||||||||||
Other financial liabilities | 128,208 | 153,724 | 86,391 | 199,327 | 211,959 | 350,278 | ||||||||||||||||||
Other non-current liabilities | 5,864 | 7,225 | 121,558 | 142,096 | 106,481 | 127,593 | ||||||||||||||||||
Total non-current liabilities | 13,106,642 | 13,579,323 | 1,489,306 | 1,950,595 | 14,523,568 | 15,443,964 | ||||||||||||||||||
Total liabilities | 18,392,874 | 18,990,548 | 5,033,569 | 5,888,164 | 23,283,718 | 24,752,900 | ||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Stockholders’ equity of Financial Services | 2,577,705 | 1,811,167 | — | — | — | — | ||||||||||||||||||
Stockholders’ equity of Sony without Financial Services | — | — | 5,156,059 | 6,007,177 | — | — | ||||||||||||||||||
Sony Group Corporation’s stockholders’ equity | — | — | — | — | 7,144,471 | 7,229,709 | ||||||||||||||||||
Noncontrolling interests | 3,448 | 3,820 | 49,330 | 54,793 | 52,778 | 58,613 | ||||||||||||||||||
Total equity | 2,581,153 | 1,814,987 | 5,205,389 | 6,061,970 | 7,197,249 | 7,288,322 | ||||||||||||||||||
Total liabilities and equity | ¥ | 20,974,027 | ¥ | 20,805,535 | ¥ | 10,238,958 | ¥ | 11,950,134 | ¥ | 30,480,967 | ¥ | 32,041,222 | ||||||||||||
March 31, 2021 | ||||||||||||||||
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||
(Yen in millions) | ||||||||||||||||
Financial Services Business: | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Sony Life | 2,729,449 | 195,060 | (40,753 | ) | 2,883,756 | |||||||||||
Sony Bank | 763,776 | 5,704 | (447 | ) | 769,033 | |||||||||||
Other | 88,784 | 278 | (322 | ) | 88,740 | |||||||||||
Held-to-maturity | ||||||||||||||||
Sony Life | 7,563,776 | 1,720,442 | (53,036 | ) | 9,231,182 | |||||||||||
Sony Bank | 96,324 | 633 | (113 | ) | 96,844 | |||||||||||
Other | 76,774 | 17,478 | (550 | ) | 93,702 | |||||||||||
Total Financial Services | 11,318,883 | 1,939,595 | (95,221 | ) | 13,163,257 | |||||||||||
Non-Financial Services: | ||||||||||||||||
Available-for-sale | 757 | — | — | 757 | ||||||||||||
Held-to-maturity | 31 | — | — | 31 | ||||||||||||
Total Non-Financial Services | 788 | — | — | 788 | ||||||||||||
Consolidated | 11,319,671 | 1,939,595 | (95,221 | ) | 13,164,045 |
Fiscal year ended March 31 | ||||||||||||||||||||||||
Financial Services | Sony without Financial Services | Consolidated | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | 2020 | 2021 | |||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income (loss) | 93,266 | 117,430 | 547,924 | 1,093,807 | 622,260 | 1,191,375 | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||||||||||
Depreciation and amortization, including amortization of deferred insurance acquisition costs and contract costs | 106,667 | 59,885 | 309,975 | 330,808 | 416,642 | 390,693 | ||||||||||||||||||
Amortization of film costs | — | — | 329,809 | 273,044 | 329,809 | 273,044 | ||||||||||||||||||
Other operating (income) expense, net | (1,729 | ) | 7,975 | (3,841 | ) | (507 | ) | (3,611 | ) | 7,468 | ||||||||||||||
(Gain) loss on marketable securities and securities investments, net | 93,088 | (478,321 | ) | 20,177 | (247,033 | ) | 113,265 | (725,354 | ) | |||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
(Increase) decrease in notes, accounts receivable, trade and contract assets | 5,947 | (4,594 | ) | 55,466 | (40,908 | ) | 62,654 | (37,779 | ) | |||||||||||||||
(Increase) decrease in inventories | — | — | 40,315 | (57,007 | ) | 40,315 | (57,007 | ) | ||||||||||||||||
(Increase) decrease in film costs | — | — | (361,194 | ) | (280,541 | ) | (361,194 | ) | (280,541 | ) | ||||||||||||||
Increase (decrease) in notes and accounts payable, trade | — | — | (91,435 | ) | 211,939 | (91,435 | ) | 211,939 | ||||||||||||||||
Increase (decrease) in future insurance policy benefits and other | 520,683 | 905,343 | — | — | 520,683 | 905,343 | ||||||||||||||||||
(Increase) decrease in deferred insurance acquisition costs | (99,433 | ) | (102,289 | ) | — | — | (99,433 | ) | (102,289 | ) | ||||||||||||||
(Increase) decrease in marketable securities held in the life insurance business | (124,270 | ) | (156,132 | ) | — | — | (124,270 | ) | (156,132 | ) | ||||||||||||||
Other | 10,021 | (101,649 | ) | (84,346 | ) | (161,425 | ) | (75,940 | ) | (270,610 | ) | |||||||||||||
Net cash provided by (used in) operating activities | 604,240 | 247,648 | 762,850 | 1,122,177 | 1,349,745 | 1,350,150 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Payments for purchases of fixed assets | (21,822 | ) | (18,564 | ) | (420,149 | ) | (493,740 | ) | (439,761 | ) | (512,239 | ) | ||||||||||||
Payments for investments and advances | (1,319,888 | ) | (1,631,017 | ) | (48,853 | ) | (103,143 | ) | (1,367,915 | ) | (1,734,160 | ) | ||||||||||||
Proceeds from sales or return of investments and collections of advances | 343,740 | 449,081 | 94,813 | 20,309 | 438,553 | 469,390 | ||||||||||||||||||
Other | 8,873 | 72 | 11,100 | (4,579 | ) | 16,845 | (4,507 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | (989,097 | ) | (1,200,428 | ) | (363,089 | ) | (581,153 | ) | (1,352,278 | ) | (1,781,516 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Increase (decrease) in borrowings, net | 193,709 | 462,895 | (79,752 | ) | 201,364 | 113,724 | 664,259 | |||||||||||||||||
Increase (decrease) in deposits from customers, net | 258,720 | 467,286 | — | — | 258,720 | 467,286 | ||||||||||||||||||
Dividends paid | (27,189 | ) | (30,454 | ) | (49,574 | ) | (61,288 | ) | (49,574 | ) | (61,288 | ) | ||||||||||||
Other | 61 | 232 | (247,754 | ) | (392,678 | ) | (257,212 | ) | (403,290 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 425,301 | 899,959 | (377,080 | ) | (252,602 | ) | 65,658 | 666,967 | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (21,643 | ) | 36,668 | (21,643 | ) | 36,668 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents, including restricted | 40,444 | (52,821 | ) | 1,038 | 325,090 | 41,482 | 272,269 | |||||||||||||||||
Cash and cash equivalents, including restricted, at beginning of the fiscal year | 509,595 | 550,039 | 964,218 | 965,256 | 1,473,813 | 1,515,295 | ||||||||||||||||||
Cash and cash equivalents, including restricted, at end of the fiscal year | 550,039 | 497,218 | 965,256 | 1,290,346 | 1,515,295 | 1,787,564 | ||||||||||||||||||
Less — restricted cash and cash equivalents, included in other current assets and other assets | — | — | 2,938 | 582 | 2,938 | 582 | ||||||||||||||||||
Cash and cash equivalents at end of the fiscal year | 550,039 | 497,218 | 962,318 | 1,289,764 | 1,512,357 | 1,786,982 | ||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||||||||||
Financial Services | Sony without Financial Services | Consolidated | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Income (loss) before income taxes | 150,111 | 223,935 | 1,006,548 | 996,758 | 1,117,503 | 1,180,313 | ||||||||||||||||||
Adjustments to reconcile income (loss) before income taxes to net cash provided by (used in) operating activities: | ||||||||||||||||||||||||
Depreciation and amortization, including amortization of contract costs | 24,932 | 26,333 | 810,301 | 978,257 | 835,233 | 1,004,590 | ||||||||||||||||||
Amortization of deferred insurance acquisition costs | 69,237 | 84,523 | — | — | 69,237 | 84,523 | ||||||||||||||||||
Other operating (income) expense, net | 664 | (4,147 | ) | (66,158 | ) | (5,566 | ) | (65,494 | ) | (12,021 | ) | |||||||||||||
(Gain) loss on securities, net (other than Financial Services segment) | — | — | 60,402 | 4,469 | 60,402 | 4,469 | ||||||||||||||||||
Change in future insurance policy benefits and other | 458,880 | 234,102 | — | — | 458,880 | 234,102 | ||||||||||||||||||
Change in policyholders’ account in the life insurance business, less cash impact | 238,309 | 15,523 | — | — | 238,309 | 15,523 | ||||||||||||||||||
Net cash impact of policyholders’ account in the life insurance business | 227,262 | 346,455 | — | — | 227,262 | 346,455 | ||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
(Increase) decrease in trade receivables and contract assets | (53,819 | ) | 35,524 | (121,684 | ) | (110,668 | ) | (171,094 | ) | (70,448 | ) | |||||||||||||
(Increase) decrease in inventories | — | — | (194,624 | ) | (560,382 | ) | (194,624 | ) | (560,382 | ) | ||||||||||||||
(Increase) decrease in investments and advances in the Financial Services segment | (1,724,164 | ) | (1,250,078 | ) | — | — | (1,724,164 | ) | (1,250,078 | ) | ||||||||||||||
(Increase) decrease in content assets | — | — | (502,253 | ) | (603,314 | ) | (502,253 | ) | (603,314 | ) | ||||||||||||||
(Increase) decrease in deferred insurance acquisition costs | (117,337 | ) | (118,096 | ) | — | — | (117,337 | ) | (118,096 | ) | ||||||||||||||
Increase (decrease) in trade payables | 37,885 | (40,071 | ) | 93,660 | (64,765 | ) | 126,989 | (109,336 | ) | |||||||||||||||
Increase (decrease) in deposits from customers in the banking business | 230,236 | 300,201 | — | — | 230,236 | 300,201 | ||||||||||||||||||
Increase (decrease) in borrowings in the life insurance business and the banking business | 905,139 | 111,314 | — | — | 905,139 | 111,314 | ||||||||||||||||||
Increase (decrease) in taxes payable other than income taxes, net | (5 | ) | 112 | 17,845 | 4,071 | 17,840 | 4,183 | |||||||||||||||||
Other | 12,380 | (21,912 | ) | (290,769 | ) | (223,387 | ) | (278,421 | ) | (247,307 | ) | |||||||||||||
Net cash provided by (used in) operating activities | 459,710 | (56,282 | ) | 813,268 | 415,473 | 1,233,643 | 314,691 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Payments for property, plant and equipment and other intangible assets | (20,562 | ) | (24,195 | ) | (420,542 | ) | (590,320 | ) | (441,096 | ) | (613,635 | ) | ||||||||||||
Payments for investments and advances (other than Financial Services segment) | — | — | (91,082 | ) | (191,129 | ) | (91,082 | ) | (191,129 | ) | ||||||||||||||
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment) | — | — | 16,081 | 13,548 | 16,081 | 13,548 | ||||||||||||||||||
Other | 2,914 | 393 | (215,597 | ) | (264,125 | ) | (212,683 | ) | (261,448 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | (17,648 | ) | (23,802 | ) | (711,140 | ) | (1,032,026 | ) | (728,780 | ) | (1,052,664 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Increase (decrease) in borrowings, net | (10,975 | ) | (11,226 | ) | (151,721 | ) | 273,195 | (162,696 | ) | 261,969 | ||||||||||||||
Dividends paid | (39,159 | ) | (41,335 | ) | (74,342 | ) | (86,568 | ) | (74,342 | ) | (86,568 | ) | ||||||||||||
Other | (6 | ) | (2 | ) | (99,702 | ) | (91,100 | ) | (99,540 | ) | (91,101 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (50,140 | ) | (52,563 | ) | (325,765 | ) | 95,527 | (336,578 | ) | 84,300 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 94,369 | 84,937 | 94,369 | 84,937 | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 391,922 | (132,647 | ) | (129,268 | ) | (436,089 | ) | 262,654 | (568,736 | ) | ||||||||||||||
Cash and cash equivalents at beginning of the fiscal year | 497,218 | 889,140 | 1,289,764 | 1,160,496 | 1,786,982 | 2,049,636 | ||||||||||||||||||
Cash and cash equivalents at end of the fiscal year | 889,140 | 756,493 | 1,160,496 | 724,407 | 2,049,636 | 1,480,900 | ||||||||||||||||||
B. | Liquidity and Capital Resources |
C. | Research and Development |
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
(Yen in billions) | (Yen in billions) | |||||||||||||||
R&D costs | ||||||||||||||||
G&NS | 126.7 | 144.6 | 175.7 | 271.1 | ||||||||||||
EP&S | 145.9 | 134.4 | ||||||||||||||
I&SS* | 150.6 | 168.9 | ||||||||||||||
ET&S | 141.8 | 155.7 | ||||||||||||||
I&SS | 198.0 | 223.7 | ||||||||||||||
Corporate R&D | 44.1 | 43.3 | 48.7 | 46.4 | ||||||||||||
Total | 499.3 | 525.2 | ||||||||||||||
D. | Trend Information |
Fiscal year ended March 31 | ||||
2023 | ||||
(Yen in billions) | ||||
Net income attributable to Sony Group Corporation’s stockholders | 937.1 | |||
Net income attributable to noncontrolling interests | 6.5 | |||
Income taxes | 236.7 | |||
Interest expenses, net, recorded in Financial income and Financial expense | 4.0 | |||
Gain on revaluation of equity instruments, net, recorded in Financial income and Financial expense | 4.6 | |||
Depreciation and amortization expense*** | 542.2 | |||
Profit and loss amount that Sony deems non-recurring**** | (27.8 | ) | ||
Adjusted EBITDA | 1,703.4 |
Fiscal year ended March 31 | ||||
2023 | ||||
(Yen in billions) | ||||
Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing (Music segment) | 5.7 | |||
Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life which occurred in the previous fiscal year (Financial Services segment) | 22.1 | |||
Total | 27.8 | |||
E. |
Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | ||||||||||||||||
(Yen in millions) | ||||||||||||||||||||
Contractual obligations and commitments: | ||||||||||||||||||||
Short-term debt (Note 11) | 1,187,868 | 1,187,868 | — | — | — | |||||||||||||||
Long-term debt (Notes 8 and 11) | ||||||||||||||||||||
Finance lease obligations and other | 85,564 | 16,068 | 21,490 | 15,252 | 32,754 | |||||||||||||||
Other long-term debt | 819,429 | 115,631 | 180,151 | 200,188 | 323,459 | |||||||||||||||
Interest on other long-term debt | 17,370 | 3,108 | 4,116 | 3,941 | 6,205 | |||||||||||||||
Operating lease obligations, including imputed interest (Note 8) | 398,283 | 79,980 | 120,722 | 66,743 | 130,838 | |||||||||||||||
Purchase commitments (Note 26) | ||||||||||||||||||||
Contracts for the production or purchase of motion pictures, television programming or certain rights and rights to broadcast certain live action sporting events | 105,921 | 53,970 | 42,878 | 8,466 | 607 | |||||||||||||||
Contracts with recording artists, songwriters and companies | 149,021 | 64,276 | 43,394 | 16,999 | 24,352 | |||||||||||||||
Sponsorship contracts related to advertising and promotional rights | 5,396 | 5,355 | 41 | — | — | |||||||||||||||
Long-term contracts for development, distribution and publishing of game software | 32,959 | 8,135 | 7,442 | 5,425 | 11,957 | |||||||||||||||
Purchase agreements for Ellation Holdings, Inc. | 130,084 | 130,084 | — | — | — | |||||||||||||||
Purchase agreements for the shares and related assets of certain subsidiaries of Kobalt Music Group Limited* (Note 28) | 47,605 | 47,605 | — | — | — | |||||||||||||||
Purchase commitments for fixed assets, materials, and other | 340,414 | 210,528 | 86,159 | 36,254 | 7,473 | |||||||||||||||
Future insurance policy benefits and other and policyholders’ account in the life insurance business** (Note 10) | 31,787,434 | 665,563 | 1,431,867 | 1,449,065 | 28,240,939 | |||||||||||||||
Gross unrecognized tax benefits*** (Note 22) | 45,740 | — | — | — | — | |||||||||||||||
Total | 35,153,088 | 2,588,171 | 1,938,260 | 1,802,333 | 28,778,584 |
obligations | costs | |||||||||||
Item 6. | Directors, Senior Management and Employees |
A. | Directors and Senior Management |
Chair of the Nominating Committee | ||
Member of the Compensation Committee | ||
Director in charge of Information Security | ||
Fixed remuneration | Remuneration linked to business results | Stock acquisition rights (*5) | Restricted stock (*7) | Phantom Restricted Stock Plan (*8) | ||||||||||||||||
Number of persons | Amount | Number of persons | Amount | Number of persons | Amount | Number of persons | Amount | Number of persons | Amount | |||||||||||
Million Yen | Million Yen | Million Yen | Million Yen | Million Yen | ||||||||||||||||
Directors | 14 | 183 | — | — | — | — | 14 | 66 | 1 | 53 | ||||||||||
(*3) | (*6) | |||||||||||||||||||
(Outside Directors) (*1, 2) | (13) | (163) | (—) | (—) | (—) | (—) | (13) | (59) | (1) | (53) | ||||||||||
Corporate Executive Officers | 6 | 424 | 6 | 578 | 6 | 443 | 6 | 476 | 1 | 122 | ||||||||||
(*4) | (*9) | |||||||||||||||||||
Total | 20 | 606 | 6 | 578 | 6 | 443 | 20 | 542 | 2 | 174 |
Name | Position (*1) | Fixed Remuneration (*2) (Yen in millions) | Remuneration linked to business results (*2) (*3) (Yen in millions) | Phantom restricted stock plan (Yen in millions) | Total (*2) (Yen in millions) | Granted number of stock acquisition rights (*4) (Ten thousand shares) | Granted number of restricted stock (*5) (Ten thousand shares) | |||||||||||||||||||
Kenichiro Yoshida | Director, Chairman, President & CEO, and Representative Corporate Executive Officer (*6) (*7) | 195 | 350 | — | 545 | 15 | 5 | |||||||||||||||||||
Hiroki Totoki | Director, Executive Deputy President & CFO, and Representative Corporate Executive Officer (*6) (*7) | 66 | 70 | — | 136 | 3 | 1.5 | |||||||||||||||||||
Shigeki Ishizuka | Vice Chairman, Representative Corporate Executive Officer (*7) | | 56 (*8) | | | 57 (*8) | | — | | 113 (*8) | | 2 | 0.5 | |||||||||||||
Toru Katsumoto | Executive Deputy President & CTO, Corporate Executive Officer (*7) | | 58 (*8) | | | 60 (*8) | | — | | 118 (*8) | | 2 | 1 | |||||||||||||
Shiro Kambe | Senior Executive Vice President, Corporate Executive Officer (*7) | 48 | 50 | — | 98 | 2 | 0.6 | |||||||||||||||||||
Kazushi Ambe | Senior Executive Vice President, Corporate Executive Officer (*7) | 46 | 49 | — | 95 | 2 | 0.6 | |||||||||||||||||||
Name | Position (*1) | Phantom restricted stock plan (Yen in millions) *9 | ||||||||||||||||||||||||
Ichiro Takagi | Sony Corporation Vice Chairman, Director | 122 |
KPI | Weight | Target to be achieved for the fiscal year ended March 31, 2021 (Consolidated) | Result for the fiscal year ended March 31, 2021 (Consolidated) | |||
Operating Cash Flow | 50% | Amount determined in order to achieve the operating CF (defined below) target of 2.2 trillion yen or more for the cumulative three fiscal years ended March 31, 2021 | 1 trillion 122.2 billion yen | |||
Net Income attributable to Sony Group Corporation’s Stockholders | 40% | 510 billion yen | 1 trillion 171.8 billion yen | |||
ROE | 10% | 11.4% | 24.2% |
Kenichiro Yoshida | ||
Responsibility as a Director: — | ||
Date of Birth: October 20, 1959 | ||
Number of Years Served as a Director: 9 years | ||
Principal Business Activities Outside the Corporation: Outside Director, M3, Inc. | ||
Brief Personal History: | ||
April 1983 | Joined the Corporation | |
July 2000 | Joined Sony Communication Network Corporation (currently Sony Network Communications Inc.) | |
September 2000 | Outside Director, So-net M3, Inc. (currently M3, Inc.) (present) | |
May 2001 | SVP, Sony Communication Network Corporation | |
April 2005 | President and Representative Director, Sony Communication Network Corporation | |
December 2013 | EVP, CSO and Deputy CFO, Corporate Executive Officer, the Corporation | |
April 2014 | EVP and CFO, Representative Corporate Executive Officer, the Corporation | |
June 2014 | Director, the Corporation (present) | |
April 2015 | Executive Deputy President and CFO, Representative Corporate Executive Officer, the Corporation | |
April 2018 | President and CEO, Representative Corporate Executive Officer, the Corporation | |
June 2020 | Chairman, President and CEO, Representative Corporate Executive Officer, the Corporation | |
April 2023 | Chairman and CEO, Representative Corporate Executive Officer, the Corporation (present) |
Hiroki Totoki | ||
Responsibility as a Director: — | ||
Date of Birth: July 17, 1964 | ||
Number of Years Served as a Director: 4 years | ||
Principal Business Activities Outside the Corporation: Outside Director, Recruit Co., Ltd. | ||
Brief Personal History: | ||
April 1987 | Joined the Corporation | |
February 2002 | Representative Director, Sony Bank Incorporated | |
June 2005 | Director, Corporate Executive Officer and Senior Managing Director, Sony Communication Network Corporation (currently Sony Network Communications Inc.) | |
April 2012 | Representative Director, Corporate Executive Officer and Senior Managing Director, So-net Entertainment Corporation (currently Sony Network Communications Inc.) | |
April 2013 | Representative Director, Corporate Executive Officer, Deputy President and CFO, So-net Entertainment Corporation | |
December 2013 | SVP, Corporate Executive, the Corporation | |
November 2014 | President and CEO, SOMC (currently Sony Corporation) | |
June 2015 | Director, Chairman, So-net Corporation (currently Sony Network Communications Inc.) | |
April 2016 | EVP, Corporate Executive Officer, the Corporation Officer in charge of New Business Platform Strategy, the Corporation President and Representative Director, So-net Corporation | |
June 2017 | CSO, the Corporation Officer in Charge of Mid-to-Long | |
April 2018 | Representative Corporate Executive Officer, CFO, the Corporation | |
June 2018 | Senior EVP, the Corporation Outside Director, Recruit Holdings Co., Ltd. (present) | |
June 2019 | Director, the Corporation (present) | |
June 2020 | Executive Deputy President and CFO, Representative Corporate Executive Officer, the Corporation | |
April 2023 | President, COO and CFO, Representative Corporate Executive Officer, the Corporation (present) | |
Yoshihiko Hatanaka | ||
Responsibility as a Director: Chairman of the Board Chair of the Nominating Committee | ||
Date of Birth: April 20, 1957 | ||
Number of Years Served as a Director: 4 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
April 1980 | Joined Fujisawa Pharmaceutical Co., Ltd. (currently Astellas Pharma Inc.) | |
June 2005 | Corporate Executive, Vice President, Corporate Planning, Corporate Strategy, Astellas Pharma Inc. | |
April 2006 | Corporate Executive of Astellas Pharma Inc. and President & CEO, Astellas US LLC and President & CEO, Astellas Pharma US, Inc. | |
June 2008 | Senior Corporate Executive of Astellas Pharma Inc. and President & CEO, Astellas US LLC and President & CEO, Astellas Pharma US, Inc. | |
April 2009 | Senior Corporate Executive, Chief Strategy Officer and Chief Financial Officer, Astellas Pharma Inc. | |
June 2011 | Representative Director, President & CEO, Astellas Pharma Inc. | |
April 2018 | Representative Director, Chairman of the Board, Astellas Pharma Inc. | |
June 2019 | Director, the Corporation (present) | |
March 2023 | Outside Director, Shiseido Company, Limited (present) |
Toshiko Oka | ||
Responsibility as a Director: Chair of the Audit Committee Member of the Nominating Committee | ||
Date of Birth: March 7, 1964 | ||
Number of Years Served as a Director: 5 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
April 1986 | Joined Tohmatsu Touche Ross Consulting Limited | |
July 2000 | Joined Asahi Arthur Anderson Limited | |
September 2002 | Principal, Deloitte Tohmatsu Consulting Co., Ltd. (currently ABeam Consulting Ltd.) | |
April 2005 | President and Representative Director, ABeam M&A Consulting Ltd. (currently PwC Advisory LLC) | |
April 2016 | Partner, PwC Advisory LLC | |
June 2016 | CEO, Oka & Company Ltd. (present) | |
June 2018 | Director, the Corporation (present) | |
June 2019 | Outside Director, Happinet Corporation (present) | |
June 2020 | Outside Director, ENEOS Holdings, Inc. (present) | |
April 2021 | Professor, Professional Graduate School, Graduate School of Global Business, Meiji University (present) | |
June 2021 | Outside Director, Hitachi Construction Machinery Japan Co., Ltd. (present) | |
Sakie Akiyama | ||
Responsibility as a Director: Member of the Compensation Committee | ||
Date of Birth: December 1, 1962 | ||
Number of Years Served as a Director: 4 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
April 1987 | Joined Arthur Andersen & Co. | |
April 1994 | Founder and CEO, Saki Corporation | |
October 2018 | Founder, Saki Corporation (present) | |
June 2019 | Director, the Corporation (present) Outside Director, Japan Post Holdings Co., Ltd. (present) Outside Director, Orix Corporation (present) | |
June 2020 | Outside Director, Mitsubishi Corporation (present) | |
Wendy Becker | ||
Responsibility as a Director: Chair of the Compensation Committee Member of the Nominating Committee | ||
Date of Birth: November 2, 1965 | ||
Number of Years Served as a Director: 4 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
September 1987 | Brand Manager, Procter & Gamble Company | |
September 1993 | Consultant, McKinsey & Company, Inc. | |
December 1998 | Partner, McKinsey & Company, Inc. | |
February 2008 | Managing Director, Residential, TalkTalk, The Carphone Warehouse Ltd. Board member, Member of Remuneration Committee, Whitbread plc | |
September 2009 | Chief Marketing Officer, Vodafone Group plc | |
September 2012 | Chief Operating Officer, Jack Wills Ltd. | |
October 2013 | CEO, Jack Wills Ltd. | |
February 2017 | Board member, Chair of Remuneration Committee, Great Portland Estates plc | |
September 2017 | Board member, Logitech International S.A. (present) | |
June 2019 | Director, the Corporation (present) | |
September 2019 | Chair of the Board, Chair of Nominating Committee, Logitech International S.A. (present) | |
June 2021 | Board member, Chair of Remuneration Committee, Oxford Nanopore Technologies plc (present) |
Keiko Kishigami | ||
Responsibility as a Director: Member of the Audit Committee | ||
Date of Birth: January 28, 1957 | ||
Number of Years Served as a Director: 3 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
October 1985 | Joined Peat Marwick Minato (currently Ernst & Young ShinNihon LLC) | |
August 1989 | Registered as Certified Public Accountant (present) | |
December 1997 | Partner, Century Audit Corporation (currently Ernst & Young ShinNihon LLC) | |
May 2004 | Representative Partner (Senior Partner), Ernst & Young ShinNihon (currently Ernst & Young ShinNihon LLC) | |
September 2018 | Board Member, WWF Japan (present) | |
June 2019 | Outside Auditor, Okamura Corporation (present) | |
June 2020 | Director, the Corporation (present) | |
June 2021 | Outside Director, Sumitomo Seika Chemicals Company, Limited (present) | |
March 2023 | Outside Auditor, DIC Corporation (present) | |
Joseph A. Kraft Jr. | ||
Responsibility as a Director: Member of the Audit Committee Director in charge of Information Security | ||
Date of Birth: May 12, 1964 | ||
Number of Years Served as a Director: 3 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
July 1986 | Joined Morgan Stanley Inc. | |
January 2000 | Managing Director, Morgan Stanley Inc. | |
April 2007 | Managing Director, Head of Capital Markets Division, Dresdner Kleinwort Japan | |
March 2010 | Deputy Branch Manager & Managing Director, Bank of America Merrill Lynch Japan | |
July 2015 | CEO, Rorschach Advisory Inc. (present) | |
June 2020 | Director, the Corporation (present) | |
Neil Hunt | ||
Responsibility as a Director: Director in charge of Information Security | ||
Date of Birth: January 12, 1962 | ||
Number of Years Served as a Director: — | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
June 1989 | Founder, CTO, Iconicon | |
October 1991 | Director of Engineering, Pure Atria, Inc. | |
December 1999 | Chief Product Officer, Netflix, Inc. | |
September 2010 | Board member, Member of Compensation Committee, Logitech, Inc. | |
June 2017 | Board member, Member of Compensation Committee, Roku, Inc. (present) | |
January 2020 | Founder and Chief Product Officer, Vibrant Planet, PBC (present) | |
June 2023 | Director, the Corporation (present) |
William Morrow | ||
Responsibility as a Director: Member of the Compensation Committee | ||
Date of Birth: July 2, 1959 | ||
Number of Years Served as a Director: — | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
September 1980 | Director, Pacific Bell Inc. | |
November 2001 | President, Japan Telecom Holdings Co. Ltd | |
February 2004 | CEO, Vodafone UK Limited | |
April 2005 | President, VODAFONE K.K. Limited | |
May 2006 | CEO Europe, Vodafone Limited | |
August 2006 | President & CEO, Pacific Gas and Electric Company | |
June 2008 | Outside Director, Broadcom Inc. | |
March 2009 | CEO, Clearwire Incorporated | |
March 2012 | CEO, Vodafone Hutchison Australia | |
April 2014 | CEO, NBN Co, Limited | |
December 2018 | Outside Director, IkeGPS Group Limited | |
February 2021 | CEO, DirecTV LLC (present) | |
June 2023 | Director, the Corporation (present) |
Toshimoto Mitomo | ||
Responsibility as an Officer: Executive Deputy President and CSO, Officer in charge of Intellectual Property, Business Strategy, Business Development and Business Incubation Platform | ||
Date of Birth: January 6, 1963 | ||
Number of Years Served as a Corporate Executive Officer: 1 year | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1985 | Joined the Corporation | |
June 2013 | SVP, Corporate Executive, the Corporation | |
June 2019 | EVP, the Corporation | |
April 2022 | Senior EVP, Corporate Executive Officer, the Corporation | |
April 2023 | Executive Deputy President and CSO, Corporate Executive Officer, the Corporation (present) |
Shiro Kambe | ||
Responsibility as an Officer: Senior EVP, Officer in charge of Legal, Compliance, Privacy, Corporate Communications, Brand, Sustainability, External Relations, Quality Management, and the Board Secretariat | ||
Date of Birth: December 18, 1961 | ||
Number of Years Served as a Corporate Executive Officer: 9 years | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1984 | Joined the Corporation | |
June 2010 | SVP, Corporate Executive, the Corporation | |
June 2014 | EVP, Corporate Executive Officer, the Corporation | |
June 2020 | Senior EVP, Corporate Executive Officer, the Corporation (present) |
Kazushi Ambe | ||
Responsibility as an Officer: Senior EVP, Officer in charge of Human Resources, General Affairs, Lead of Group Diversity, Equity & Incubation and the Corporate Executive Office and Sony Group China Representative | ||
Date of Birth: April 23, 1961 | ||
Number of Years Served as a Corporate Executive Officer: 7 years | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1984 | Joined the Corporation | |
October 2001 | Vice President, Sony Ericsson Mobile Communications | |
April 2006 | Senior Vice President, Sony Corporation of America | |
November 2014 | SVP, Corporate Executive, the Corporation | |
June 2016 | EVP, Corporate Executive Officer, the Corporation | |
June 2020 | Senior EVP, Corporate Executive Officer, the Corporation (present) |
Hiroaki Kitano | ||
Responsibility as an Officer: Senior EVP and CTO, Officer in charge of R&D and AI Collaboration | ||
Date of Birth: March 16, 1961 | ||
Number of Years Served as a Corporate Executive Officer: 1 year | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1984 | Joined NEC Corporation | |
August 1993 | Joined Sony Computer Science Laboratories, Inc. | |
June 2002 | Director, Deputy Head of Research, Sony Computer Science Laboratories, Inc. | |
July 2008 | Director, Head of Research, Sony Computer Science Laboratories, Inc. | |
July 2011 | President and CEO, Sony Computer Science Laboratories, Inc. (present) | |
June 2016 | Corporate Executive, the Corporation | |
June 2018 | SVP, the Corporation | |
April 2020 | CEO, Sony AI Inc. (currently Sony Research Inc.) (present) | |
June 2020 | EVP, the Corporation | |
April 2022 | Senior EVP and CTO, Corporate Executive Officer, the Corporation (present) |
B. | Compensation |
Fixed remuneration | Remuneration linked to business results | Stock acquisition rights (*6) | Restricted stock (*8/*9) | Phantom Restricted Stock Plan (*9/*10) | ||||||||||||||||
Number of persons | Amount (Yen in millions) | Number of persons | Amount (Yen in millions) | Number of persons | Amount (Yen in millions) | Number of persons | Amount (Yen in millions) | Number of persons | Amount (Yen in millions) | |||||||||||
Directors | 8 | 186 | — | — | — | — | 8 | 46 | 1 | 95 | ||||||||||
(*3) | (*7) | (*11) | ||||||||||||||||||
(Outside Directors) (*1) | (7) | (159) | (—) | (—) | (—) | (—) | (7) | (41) | (—) | (—) | ||||||||||
Corporate Executive Officers | 8 | 574 | 7 | 751 | 6 | 681 | 6 | 1,131 | 1 | 221 | ||||||||||
(*2) | (*4) | (*5) | (*12) | |||||||||||||||||
Total | 16 | 760 | 7 | 751 | 6 | 681 | 14 | 1,178 | 2 | 316 |
Name | Position (*1) | Fixed Remuneration (*2) (Yen in millions) | Remuneration linked to business results (*2) (*3) (Yen in millions) | Phantom restricted stock plan (*2) (Yen in millions) | Total (*2) (Yen in millions) | Granted number of stock acquisition rights (*4) (Ten thousand shares) | Granted number of restricted stock (*5) (Ten thousand shares) | |||||||
Tim Schaaff | Former Director (Until June 20, 2023) | 27 | — | 95 (*6) | 122 | — | 0.1 | |||||||
Kenichiro Yoshida | Director, Chairman, CEO, and Representative Corporate Executive Officer (*7) (*8) | 240 | 411 | — | 651 | 16 | 8.0 | |||||||
Hiroki Totoki | Director, President, COO, CFO, and Representative Corporate Executive Officer (*7) (*8) | 80 | 143 | — | 223 | 5 | 2.5 | |||||||
Shigeki Ishizuka | Former Vice Chairman, Former Representative Corporate Executive Officer (Until March 31, 2023) | 17 | 13 | 221 (*9) | 251 | — | — | |||||||
Toshimoto Mitomo | Executive Deputy President, CSO, and Corporate Executive Officer (*8) | 52 | 49 | — | 101 | 2 | 0.6 | |||||||
Shiro Kambe | Senior Executive Vice President, and Corporate Executive Officer (*8) | 52 | 51 | — | 103 | 2 | 0.6 | |||||||
Kazushi Ambe | Senior Executive Vice President, and Corporate Executive Officer (*8) | 52 | 50 | — | 102 | 2 | 0.6 | |||||||
Hiroaki Kitano | Senior Executive Vice President, CTO and Corporate Executive Officer | 52 (*10) | 49 (*10) | — | 101 (*10) | 2 | 1.0 |
Type of remuneration | Description | |
Fixed remuneration | • The amount of fixed remuneration shall be at an appropriate level determined in accordance with the basic policy above and based on research conducted by a third party regarding remuneration of directors of both Japanese and non-Japanese companies. | |
Stock-based compensation (restricted stock or restricted stock units) | • Restricted stock or restricted stock units (“RSUs”) are granted to further promote shared values between Directors and shareholders and incentivize Directors to develop and maintain a sound and transparent management system. • Any Director to whom restricted stock is granted may not sell or transfer the granted shares during his/her tenure, and in principle, such restriction is to be released when such Director resigns. • In principle, RSUs held by Directors will be vested when he/she resigns, and the Common Stock of the company will then be delivered to the Directors. | |
Phantom restricted stock plan | • Points determined every year by the Compensation Committee and granted to certain Directors every year during their term in office, with the remuneration amount calculated at the time of resignation by multiplying the Common Stock price (closing price) by the individual’s accumulated points. * Because Sony replaced the phantom restricted stock plan for Directors with restricted stock as from the fiscal year ended March 31, 2018, Sony did not grant new points to Directors during the fiscal year ended March 31, 2023. |
Type of remuneration | Description | |
Fixed remuneration | • The amount of fixed remuneration shall be at an appropriate level determined based on research conducted by a third party regarding remuneration of management of both Japanese and non-Japanese companies, according to his/her responsibility, and in order to maintain competitiveness in recruiting talent. | |
Remuneration linked to business results | • Structured appropriately and based on appropriate indicators to ensure that such remuneration effectively incentivizes Senior Executives to achieve the medium- to long-term as well as the corresponding fiscal year’s, corporate targets. • Specifically, the amount to be paid to Senior Executives shall be determined based on the level of achievements of the targets of indicators of (1) and (2) below, and can fluctuate, in principle, within the range from 0% to 200% of the standard payment amount (“Business Results Linked Standard Payment Amount”) based on the achievement of the below-mentioned targets. |
Type of remuneration | Description | |
(1) Certain key performance indicators linked to consolidated or individual business results of Sony during the corresponding fiscal year, such as Adjusted EBITDA and Adjusted EPS (net income attributable to Sony Group Corporation’s stockholders per share), and which indicators are selected based on the areas for which each Senior Executive is responsible. (2) The individual performance of the area(s) for which each Senior Executive is responsible. • Efforts to accelerate value creation through collaborations among businesses of Sony, sustainability initiatives related to social value creation and ESG and engagement indicators based on employee surveys shall be included in the evaluation factors for individual performance. • The Business Results Linked Standard Payment Amount shall be determined so that such amount is within a certain percentage of the cash compensation (total of the fixed remuneration and the remuneration linked to business results), which percentage shall be determined in accordance with each individual’s level of responsibility. | ||
Stock-based compensation (Stock acquisition rights, and restricted stock or restricted stock units) | • Stock acquisition rights, and restricted stock or RSUs are granted to incentivize Senior Executives to increase mid- to long-term shareholder value.• The exercise of the stock acquisition rights is, in principle, restricted during a one-year period from the allotment date, andone-third of the total number of exercisable stock acquisition rights will be vested and exercisable each year thereafter. (All of the allocated stock acquisition rights will be exercisable on and after three years from the allotment date.)• The Senior Executives to whom restricted stock is granted, in principle, may not sell or transfer the granted stock before the third anniversary date of the Ordinary General Meeting of Shareholders of the fiscal year when the subject restricted stock was granted. • In principle, all RSUs held by the Senior Executives will be vested after three years have passed since the date of grant of the RSUs, and the Common Stock of the company will be delivered to the Senior Executives. • As a general policy, remuneration for a Senior Executive who has greater management responsibility and influence over Sony as a whole has a higher proportion of stock-based compensation, which is directly linked to the corporate value. (Please see below Reference: Executive Compensation Package Design to Focus on Long-Term Management.) • The amount of stock-based compensation shall be determined so that the amount is within a certain percentage of the total cash compensation (total of the fixed remuneration and the remuneration linked to business results) and stock-based compensation. | |
Phantom restricted stock plan | • Points determined every year by the Compensation Committee shall be granted to Senior Executives every year during his/her tenure, and at the time of resignation, the remuneration amount shall be calculated by multiplying the Common Stock price (closing price) by the individual’s accumulated points. |
KPI | Weight | Target to be achieved for the fiscal year ended March 31, 2023 (Consolidated) | Result for the fiscal year ended March 31, 2023 (Consolidated) | |||
Adjusted EBITDA (*1) | 50% | Amount determined in order to achieve the Adjusted EBITDA (defined below) target of 4.3 trillion yen for the three-year period from the fiscal year ended March 31, 2022 | 1,703.4 billion yen | |||
Adjusted EPS (*2) | 50% | 659.3 yen | 737.06 yen (*3) |
Fiscal year ended March 31 | ||||
2023 | ||||
(Yen in billions, yen per share amounts) | ||||
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation* | 937.2 | |||
Profit and loss amount that Sony deems non-recurring, including adjustments for income taxes andnon-controlling interests** | (22.2 | ) | ||
Adjusted Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation | 915.0 | |||
Weighted-average shares for diluted EPS computation (thousands of shares)* | 1,241,377 | |||
Adjusted EPS (yen) | 737.06 | |||
C. | Board Practices |
Name | Position | |
Kenichiro Yoshida | Director | |
Hiroki Totoki | Director | |
Chairman of the Board Outside Director | ||
Toshiko Oka | Outside Director | |
Sakie Akiyama | Outside Director | |
Wendy Becker | Outside Director | |
Keiko Kishigami | Outside Director | |
Joseph A. Kraft Jr. | Outside Director | |
Neil Hunt | Outside Director | |
William Morrow | Outside Director |
(a) | He/she shall not be a director, a statutory auditor, a corporate executive officer, a general manager or other employee of any company in competition with Sony in any of Sony’s principal businesses (a “Competing Company”) or own 3% or more of the shares of any Competing Company. |
(b) | He/she shall not be or have been a representative partner or partner of Sony’s independent auditor the past three years before being nominated as a Director. |
(c) | He/she shall not have any connection with any matter that may cause a material conflict of interest in performing the duties of a Director. |
(a) | He/she shall not have received directly from Sony, during any consecutive twelve-month period within the last three years, more than an amount equivalent to U.S. $120,000, other than Director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service). |
(b) | He/she shall not be an executive director, corporate executive officer, general manager or other employee of any company whose aggregate amount of transactions with Sony, in any of the last three fiscal years, exceeds the greater of an amount equivalent to U.S. $1,000,000, or 2% of the annual consolidated sales of such company. |
(i) | In a case where |
(ii) | In a case where re-assumption without any action or formality. |
(1) | Members: 3 outside Directors (as of June |
Name | Position | |
Chair of the Nominating Committee (Outside Director) | ||
Nominating Committee Member (Outside Director) | ||
Nominating Committee Member (Outside Director) |
Name | Position | |
Toshiko Oka | Chair of the Audit Committee (Outside Director) | |
Keiko Kishigami | Audit Committee Member (Outside Director) | |
Joseph A. Kraft Jr. | Audit Committee Member (Outside Director) |
Name | Position | |
Wendy Becker | Chair of the Compensation Committee (Outside Director) | |
Sakie Akiyama | Compensation Committee Member (Outside Director) | |
Compensation Committee Member (Outside Director) |
(i) | The insurance policy covers compensation for damages, litigation costs (including attorney’s fees) and other costs that may be incurred by the Executives as a result of assuming responsibility for the execution of their duties or receiving claims related to such responsibility. |
(ii) | As a measure to ensure the appropriateness of the execution of duties by the Executives, there are certain exemptions, such as in the case of an act committed by the Executives with the knowledge that it constitutes a violation of laws or regulations. |
Name *2 | Meeting Records *1 | Attendance Records *1 | ||
Kenichiro Yoshida | 9 Times | 9 Times (100%) | ||
Hiroki Totoki | 9 Times | 9 Times (100%) | ||
Shuzo Sumi | 9 Times | 9 Times (100%) | ||
Yoshihiko Hatanaka | 9 Times | 9 Times (100%) | ||
Tim Shaaff | 9 Times | 9 Times (100%) | ||
Toshiko Oka | 9 Times | 9 Times (100%) | ||
Sakie Akiyama | 9 Times | 9 Times (100%) | ||
Wendy Becker | 9 Times | 9 Times (100%) | ||
Keiko Kishigami | 9 Times | 9 Times (100%) | ||
Joseph A. Kraft Jr. | 9 Times | 9 Times (100%) |
Name | Meeting Records *1 | Attendance Records *1 | ||
Shuzo Sumi *2 | 5 Times | 5 Times (100%) | ||
Yoshihiko Hatanaka | 5 Times | 5 Times (100%) | ||
Wendy Becker | 5 Times | 5 Times (100%) |
Name | Meeting Records *1 | Attendance Records *1 | ||
Toshiko Oka | 6 Times | 6 Times (100%) | ||
Keiko Kishigami | 6 Times | 6 Times (100%) | ||
Joseph A. Kraft Jr. | 6 Times | 6 Times (100%) |
Name | Meeting Records *1 | Attendance Records *1 | ||
Wendy Becker | 5 Times | 5 Times (100%) | ||
Yoshihiko Hatanaka *2 | 5 Times | 5 Times (100%) | ||
Sakie Akiyama | 5 Times | 5 Times (100%) |
D. | Employees |
March 31 | March 31 | |||||||||||||||||||||||
2019 | 2020 | 2021 | 2021 | 2022 | 2023 | |||||||||||||||||||
By segment: | ||||||||||||||||||||||||
G&NS, EP&S and I&SS total | 75,600 | 73,000 | 71,100 | |||||||||||||||||||||
G&NS | 9,600 | 10,200 | 12,700 | |||||||||||||||||||||
Music | 8,500 | 9,900 | 9,900 | 9,900 | 10,800 | 11,100 | ||||||||||||||||||
Pictures | 9,300 | 8,400 | 8,000 | 8,000 | 8,100 | 9,100 | ||||||||||||||||||
ET&S | 43,700 | 40,200 | 38,400 | |||||||||||||||||||||
I&SS | 16,800 | 18,100 | 20,300 | |||||||||||||||||||||
Financial Services | 11,800 | 12,300 | 12,900 | 12,900 | 13,200 | 13,500 | ||||||||||||||||||
All Other | 4,000 | 3,200 | 2,800 | 2,800 | 2,300 | 2,100 | ||||||||||||||||||
Unallocated — Corporate employees | 5,200 | 4,900 | 5,000 | 6,000 | 6,000 | 5,800 | ||||||||||||||||||
By region: | ||||||||||||||||||||||||
Japan | 52,200 | 53,700 | 54,500 | 54,500 | 55,100 | 56,400 | ||||||||||||||||||
Outside of Japan | 62,200 | 58,000 | 55,200 | 55,200 | 53,800 | 56,600 | ||||||||||||||||||
Total | 114,400 | 111,700 | 109,700 | 109,700 | 108,900 | 113,000 | ||||||||||||||||||
E. | Share Ownership |
Year granted (Fiscal year ended March 31) | Total number of shares subject to stock acquisition rights | Exercise price per share | Total number of shares subject to stock acquisition rights | Exercise price per share | ||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
2023 | 290 | 11,390 yen | ||||||||||||||
2022 | 280 | 14,350 yen | ||||||||||||||
2021 | 260 | 9,237 yen | 260 | 9,237 yen | ||||||||||||
2020 | 240 | 6,705 yen | 248 | 6,705 yen | ||||||||||||
2019 | 230 | 6,440 yen | 214 | 6,440 yen | ||||||||||||
2018 | 208 | 5,231 yen | 33 | 5,231 yen | ||||||||||||
2017 | 244 | 3,364 yen | 126 | 3,364 yen | ||||||||||||
2016 | 58 | 3,404 yen | 15 | 3,404 yen | ||||||||||||
2015 | 114 | 2,410.5 yen | 86 | 2,410.5 yen | ||||||||||||
2014 | 10 | 2,007 yen | ||||||||||||||
2012 | 7 | 1,523 yen | ||||||||||||||
2011 | 3 | 2,945 yen |
Item 7. | Major Shareholders and Related Party Transactions |
A. | Major Shareholders |
Date of Report* | Reported entities | Reported number of direct or indirect owned and deemed owned shares** | Reported percentage of direct or indirect owned and deemed owned shares** | |||||||
March 22, 2017 | BlackRock Japan Co., Ltd. and 8 Joint Holders | 79,184,569 | 6.27 | |||||||
September 20, 2019 | Sumitomo Mitsui Trust Asset Management Co., Ltd. and 1 Joint Holder | 72,545,958 | 5.70 | |||||||
October 6, 2020 | Nomura Asset Management Co., Ltd. and 3 Joint Holders | 63,156,882 | 5.01 |
Date of Report* | Reported entities | Reported number of direct or indirect owned and deemed owned shares** | Reported percentage of direct or indirect owned and deemed owned shares** | |||||||
October 6, 2020 | Nomura Asset Management Co., Ltd. and 3 Joint Holders | 63,156,882 | 5.01 | |||||||
June 6, 2022 | Sumitomo Mitsui Trust Asset Management Co., Ltd. and 1 Joint Holder | 82,189,224 | 6.52 | |||||||
May 18, 2023 | BlackRock Japan Co., Ltd. and 9 Joint Holders | 93,769,348 | 7.43 |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
Item 8. | Financial Information |
A. | Consolidated Statements and Other Financial Information |
B. | Significant Changes |
Item 9. | The Offer and Listing |
A. | Offer and Listing Details |
B. | Plan of Distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of the Issue |
Item 10. | Additional Information |
A. | Share Capital |
B. | Memorandum and Articles of Association |
(i) | manufacture and sale of electronic and electrical machines and equipment, medical instruments, optical instruments and other equipment, machines and instruments; |
(ii) | planning, production and sale of audio-visual software and computer software programs; |
(iii) | manufacture and sale of metal industrial products, chemical industrial products and ceramic industrial products, textile products, paper products and wood-crafted articles, daily necessities, foodstuffs and toys, transportation machines and equipment, and petroleum and coal products; |
(iv) | real estate activities, construction business, transportation business and warehousing business; |
(v) | publishing business and printing business; |
(vi) | advertising agency business, insurance agency business, broadcasting enterprise, recreation business such as travel, management of sporting facilities, etc. and other service enterprises; |
(vii) | financial business; |
(viii) | Type I and Type II telecommunications business under the Telecommunications Business Law; |
(ix) | investing in stocks and bonds, etc.; |
(x) | manufacture, sale, export and import of products which are incidental to or related to those mentioned above; |
(xi) | rendering of services related to those mentioned above; |
(xii) | investment in businesses mentioned above operated by other companies or persons; and |
(xiii) | all businesses which are incidental to or related to those mentioned above. |
“A” = | the total amount of other capital surplus and other retained earnings, each such amount being that appearing on the non-consolidated balance sheet as of the end of the last business year | |||
“B” = | (if Sony Group Corporation has disposed of its treasury stock after the end of the last business year) the amount of the consideration for such treasury stock received by Sony Group Corporation less the book value thereof | |||
“C” = | (if Sony Group Corporation has reduced its stated capital after the end of the last business year) the amount of such reduction less the portion thereof that has been transferred to additional paid-in capital or legal reserve (if any) | |||
“D” = | (if Sony Group Corporation has reduced its additional paid-in capital or legal reserve after the end of the last business year) the amount of such reduction less the portion thereof that has been transferred to stated capital (if any) | |||
“E” = | (if Sony Group Corporation has cancelled its treasury stock after the end of the last business year) the book value of such treasury stock | |||
“F” = | (if Sony Group Corporation has distributed Surplus to its shareholders after the end of the last business year) the total book value of the Surplus so distributed | |||
“G” = | certain other amounts set forth in ordinances of the Ministry of Justice, including (if Sony Group Corporation has reduced Surplus and increased its stated capital, additional paid-in capital or legal reserve after the end of the last business year) the amount of such reduction and (if Sony Group Corporation has distributed Surplus to the shareholders after the end of the last business year) the amount set aside in additionalpaid-in capital or legal reserve (if any) as required by ordinances of the Ministry of Justice. |
(a) | the book value of its treasury stock; |
(b) | the amount of consideration for any of treasury stock disposed of by Sony Group Corporation after the end of the last business year; and |
(c) | certain other amounts set forth in ordinances of the Ministry of Justice, including (if the sum of one-half of goodwill and the deferred assets exceeds the total of stated capital, additionalpaid-in capital and legal reserve, each such amount being that appearing on thenon-consolidated balance sheet as of the end of the last business year) all or certain part of such exceeding amount as calculated in accordance with ordinances of the Ministry of Justice. |
(1) | acquisition of its own shares from a specific party other than its subsidiaries; |
(2) | consolidation of shares; |
(3) | any offering of new shares or existing shares held by Sony Group Corporation as treasury stock at a “specially favorable” price (or any offering of stock acquisition rights to acquire shares of capital stock, or bonds with stock acquisition rights on “specially favorable” conditions) to any persons other than shareholders; |
(4) | the exemption of liability of a Director, Corporate Executive Officer or independent auditor with certain exceptions; |
(5) | a reduction of stated capital with certain exceptions; |
(6) | a distribution of in-kind dividends which meets certain requirements; |
(7) | dissolution, merger, consolidation, or corporate split with certain exceptions; |
(8) | the transfer of the whole or a material part of the business; |
(9) | the transfer of the whole or a part of the shares or equity interests in a subsidiary which meets certain requirements; |
(10) | the taking over of the whole of the business of any other corporation with certain exceptions; |
(11) | share exchange or share transfer for the purpose of establishing 100% parent-subsidiary relationships with certain exceptions; or |
(12) | partial share exchange for the purpose of establishing parent-subsidiary relationships with certain exceptions, |
C. | Material Contracts |
D. | Exchange Controls |
(i) | the aggregate purchase price of the relevant shares is 100 million yen or less; |
(ii) | the acquisition is effected through any bank, financial instruments business operator or other entity prescribed by the Foreign Exchange Regulations acting as an agent or intermediary; or |
(iii) | the acquisition constitutes an “inward direct investment” described below (in which case a prior notification requirement may apply). |
(i) | individuals who reside within Japan; or |
(ii) | corporations whose principal offices are located within Japan. |
(i) | individuals who do not reside in Japan; or |
(ii) | corporations whose principal offices are located outside Japan. |
(i) | individuals who are exchange non-residents; |
(ii) | corporations or other entities that are organized under the laws of foreign countries or whose principal offices are located outside Japan; |
(iii) | corporations of which 50% or more of the total voting rights are held, directly or indirectly, by individuals and/or corporations falling within (i) and/or (ii) above; |
(iv) | partnerships under the Civil Code of Japan established to invest in corporations, limited partnerships for investment under the Limited Partnership Act for Investment of Japan or any other similar partnerships under foreign law of which (a) 50% or more of the total contributions are made by individuals and/or corporations falling within (i), (ii), (iii) above and/or (v) below or any other persons prescribed under the Foreign Exchange Regulations or (b) a majority of the general partners are individuals and/or corporations falling within (i), (ii), (iii) above and/or (v) below or any other persons prescribed under the Foreign Exchange Regulations; or |
(v) | corporations or other entities, a majority of whose directors or other officers (or directors or other officers having the power of representation) are individuals who are exchange non-residents. |
(i) | the foreign investor or its related persons will not become directors or corporate auditors of the relevant corporation; |
(ii) | the foreign investor will not make certain proposals (as prescribed in the Foreign Exchange Regulations) at the general meeting of shareholders, including transfer or discontinuation of the Designated Businesses of the relevant corporation; and |
(iii) | the foreign investor will not access non-public technical information in relation to the Designated Businesses of the relevant corporation, or take certain other actions that may lead to the leak of suchnon-public technical information (as prescribed in the Foreign Exchange Regulations). |
(i) | the foreign investor will not attend, or not cause any persons designated by it to attend, meetings of the relevant corporation’s board of directors, or meetings of committees having authority to make important decisions, in respect of the Core Sector Designated Businesses of the relevant corporation; and |
(ii) | the foreign investor will not make, or not cause any persons designated by it to make, proposals to such board or committees or their members in writing or electronic form requesting any response or actions by certain deadlines in respect of the Core Sector Designated Businesses of the relevant corporation. |
E. | Taxation |
(i) | is a resident of the U.S. for purposes of the Treaty; |
(ii) | does not maintain a permanent establishment in Japan (a) with which shares of Common Stock or ADSs of Sony Group Corporation are effectively connected and through which the U.S. holder carries on or has carried on business or (b) of which shares of Common Stock or ADSs of Sony Group Corporation form part of the business property; and |
(iii) | is eligible for benefits under the Treaty with respect to income and gain derived in connection with shares of Common Stock or ADSs of Sony Group Corporation. |
F. | Dividends and Paying |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
J. | Annual Report to Security Holders |
Item 11. | Quantitative and Qualitative Disclosures about Market Risk |
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | |||||||||||||
(Yen in billions) | ||||||||||||||||
Net VaR | 1.3 | 1.3 | 1.1 | 1.2 | ||||||||||||
VaR of currency exchange rate risk | 1.3 | 1.2 | 1.0 | 1.2 | ||||||||||||
VaR of interest rate risk | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
VaR of stock price risk | 0.0 | 0.0 | 0.0 | 0.0 |
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | |||||||||||||
(Yen in billions) | ||||||||||||||||
Net VaR | 1.2 | 1.1 | 1.0 | 1.0 | ||||||||||||
VaR of currency exchange rate risk | 1.2 | 1.0 | 0.9 | 1.0 | ||||||||||||
VaR of interest rate risk | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
VaR of stock price risk | 0.0 | 0.0 | 0.0 | 0.0 |
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | |||||||||||||
(Yen in billions) | ||||||||||||||||
Net VaR | 0.9 | 0.8 | 0.6 | 0.7 | ||||||||||||
VaR of currency exchange rate risk | 0.9 | 0.8 | 0.6 | 0.7 | ||||||||||||
VaR of interest rate risk | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||
VaR of stock price risk | 0.0 | 0.0 | 0.0 | 0.0 |
Item 12. | Description of Securities Other Than Equity Securities |
A. | Debt Securities |
B. | Warrants and Rights |
C. | Other Securities |
D. | American Depositary Shares |
Service | Rate | By Whom Paid | ||
Issuance of ADSs upon deposit of Sony Group Corporation’s Common Stock | Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) issued | Person depositing Sony Group Corporation’s Common Stock or person receiving ADSs | ||
Delivery of deposited securities against surrender of ADSs | Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) surrendered | Person surrendering ADSs for the purpose of withdrawal of deposited securities or person to whom deposited securities are delivered | ||
Distribution of cash dividends or other cash distributions (i.e., sale of rights and other entitlements) | Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held | Person to whom distribution is made | ||
Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, (ii) exercise of rights to purchase additional ADSs | Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held | Person to whom distribution is made | ||
Distribution of securities other than ADSs or rights purchase Additional ADSs (i.e., spin-off shares) | Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held | Person to whom distribution is made | ||
ADS Services | Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held on the applicable record | Person holding ADSs on the applicable record |
Item 13. | Defaults, Dividend Arrearages and Delinquencies |
Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. | Controls and Procedures |
(i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of Sony; |
(ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and |
expenditures of Sony are being made only in accordance with authorizations of management and directors; and |
(iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Sony’s assets that could have a material effect on the financial statements. |
Item 16. | [Reserved] |
Item 16A. | Audit Committee Financial Expert |
Item 16B. | Code of Ethics |
Item 16C. | Principal Accountant Fees and Services |
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
Yen in millions | Yen in millions | |||||||||||||||
Audit Fees (1) | 4,011 | 4,207 | 4,514 | 4,901 | ||||||||||||
Audit-Related Fees (2) | 400 | 128 | 175 | 334 | ||||||||||||
Tax Fees | 0 | 0 | 0 | 28 | ||||||||||||
All Other Fees | 118 | 67 | 16 | 9 | ||||||||||||
4,529 | 4,402 | 4,705 | 5,272 | |||||||||||||
(1) | Audit Fees consist of fees for the annual audit services engagement and other audit services, which are those services that only the external auditor can provide. |
(2) | Audit-Related Fees consist of fees billed for assurance and related services, and audit services relating to benefit plans, business acquisitions and dispositions. |
(3) | Tax fees primarily consist of fees for tax advice. |
(4) | All Other Fees consist of fees primarily for services rendered with respect to advisory services. |
Item 16D. | Exemptions from the Listing Standards for Audit Committees |
Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Period | (a) Total number of shares purchased | (b) Average price paid per share (yen) | (c) Total number of shares purchased as part of publicly announced plans or programs *1,2 | (d) Maximum number of shares that may yet be purchased under the plans or programs *1,2 | ||||||||
April 1 — 30, 2020 | 587 | 6,730.58 | N/A | N/A | ||||||||
May 1 — 31, 2020 | 893 | 6,852.52 | N/A | N/A | ||||||||
June 1 — 30, 2020 | 2,572 | 7,447.89 | N/A | N/A | ||||||||
July 1 — 31, 2020 | 3,636 | 7,816.37 | N/A | N/A | ||||||||
August 1 — 31, 2020 | 3,451 | 8,436.52 | N/A | N/A | ||||||||
September 1 — 30, 2020 | 2,366 | 8,314.12 | N/A | N/A | ||||||||
October 1 — 31, 2020 | 1,786 | 7,823.20 | N/A | N/A | ||||||||
November 1 — 30, 2020 | 3,422 | 9,149.26 | N/A | N/A | ||||||||
December 1 — 31, 2020 | 5,982 | 9,905.91 | N/A | N/A | ||||||||
January 1 — 31, 2021 | 4,526 | 10,518.92 | N/A | N/A | ||||||||
February 1 — 29, 2021 | 4,416 | 11,629.47 | N/A | N/A | ||||||||
March 1 — 31, 2021 | 4,902 | 11,378.94 | N/A | N/A | ||||||||
Total | 38,539 | 9,489.46 | N/A | N/A |
Period | (a) Total number of shares purchased | (b) Average price paid per share (yen) | (c) Total number of shares purchased as part of publicly announced plans or programs *1,2,3,4 | (d) Maximum number of shares that may yet be purchased under the plans or programs *1,2,3,4 | ||||||||||
April 1 — 30, 2022 | 620,533 | 11,365.92 | 619,300 | N/A | ||||||||||
May 1 — 31, 2022 | 495,331 | 10,882.17 | 494,200 | 24,692,800 | ||||||||||
June 1 — 30, 2022 | 33,008 | 10,973.15 | 31,300 | 24,661,500 | ||||||||||
July 1 — 31, 2022 | 1,867 | 11,395.93 | 0 | 24,661,500 | ||||||||||
August 1 — 31, 2022 | 2,070,093 | 11,279.85 | 2,068,600 | 22,592,900 | ||||||||||
September 1 — 30, 2022 | 1,519,072 | 10,468.75 | 1,517,500 | 21,075,400 | ||||||||||
October 1 — 31, 2022 | 2,810,154 | 9,655.97 | 2,808,900 | 18,266,500 | ||||||||||
November 1 — 30, 2022 | 1,331 | 11,139.33 | 0 | 18,266,500 | ||||||||||
December 1 — 31, 2022 | 1,143,106 | 10,565.40 | 1,084,400 | 17,182,100 | ||||||||||
January 1 — 31, 2023 | 738,822 | 10,553.67 | 727,700 | 16,454,400 | ||||||||||
February 1 — 28, 2023 | 6,297 | 11,693.43 | 0 | 16,454,400 | ||||||||||
March 1 — 31, 2023 | 6,056 | 11,560.96 | 0 | 16,454,400 | ||||||||||
Total | 9,445,670 | 10,507.22 | 9,351,900 | N/A |
Item 16F. | Change in |
Item 16G. | Corporate Governance |
NYSE Standards | Sony’s Corporate Governance Practices | |
Board Independence. | Sony Group Corporation has adopted the “Company with Three Committees” corporate governance system under the Companies Act. Sony Group Corporation’s Board Charter requires its board to consist of between 8 to 14 directors. The Companies Act does not require Sony Group Corporation to have a majority of “independent” (in the meaning given by the NYSE Corporate Governance Standards) directors on its board; rather, it requires Sony Group Corporation to have a majority of “outside” directors (the definition of the term “outside” director is summarized below) on each of three statutory committees (the Nominating Committee, the Audit Committee and the Compensation Committee). | |
Director Independence. (i) a person who the board determines has a material direct or indirect relationship with the company, its parent or a consolidated subsidiary; (ii) a person who, within the last three years, has been an employee of the company or has an immediate family member of an executive officer of the company, its parent or a consolidated subsidiary; (iii) a person who had received, or whose immediate family member had received, during any 12-month period within the last three years, more than 120,000 U.S. dollars per year in direct compensation from the company, its parent or a consolidated subsidiary, other than director and committee fees or deferred compensation for prior services (provided such compensation is not contingent in any way on continued service);(iv) (A) a person who is, or whose immediate family member is, a current partner or employee of a firm that is the company’s internal or external auditor; (B) a person whose immediate family member is a partner of such a firm; (C) a person who has an immediate family member who is a current employee of such a firm and who personally participates in the firm’s audit, assurance or tax compliance (but not tax planning) practice; or (D) a person who was, or has an immediate family member who was, within the last three years, a partner or employee of such a firm and personally worked on the listed company’s audit within that time; (v) a person who is, or whose immediate family member is, or has been within the last three years, employed as an executive officer of another company where any of | “Outside” director is defined in the Companies Act as a person who satisfies all of the requirements (i) through (v) below: (i) a person who is not a Director of Sony Group Corporation or any of its subsidiaries engaged in the business operations of Sony Group Corporation or such subsidiaries, as the case may be, or a Corporate Executive Officer or general manager or other employee (“Group Executive Director, etc.”) of Sony Group Corporation or any of its subsidiaries and who has not been a Group Executive Director, etc. of Sony Group Corporation or any of its subsidiaries for ten years prior to assuming his/her office; (ii) if a person who has been a director, accounting counselor (if the accounting counselor is a juridical person, a member who is in charge of the affairs), or corporate auditor of Sony Group Corporation or any of its subsidiaries (excluding a person who has been a Group Executive Director, etc.) at the time within ten years prior to assuming his/her office, a person who has not been a Group Executive Director, etc. of Sony Group Corporation or any of its subsidiaries for ten years prior to assuming his/her office as a director, an accounting counselor, or a corporate auditor; (iii) a person who is not a director or a Corporate Executive Officer or general manager or other employee of a parent company or any entity which controls the management of Sony Group Corporation; (iv) a person who is not a Group Executive Director, etc. of a direct/indirect subsidiary of Sony Group Corporation or any entity the management of which is directly or indirectly controlled by Sony Group Corporation; and (v) a person who is not a spouse or relative within the second degree of kinship of a Director or a Corporate Executive Officer or general manager or other |
NYSE Standards | Sony’s Corporate Governance Practices | |
the listed company’s present executive officers at the same time serves or served on that company’s compensation committee; or (vi) an executive officer or employee of a company, or has an immediate family member of an executive officer of a company, that makes payments to, or receives payments from, the listed company, its parent or a consolidated subsidiary for property or services in an amount which, in any of the last three fiscal years, exceeds the greater of 1 million U.S. dollars or 2% of such other company’s consolidated gross revenues | employee of Sony Group Corporation. Under the Companies Act, a director’s status as an “outside” director is unaffected by the director’s compensation, his or her affiliation with business partners, or the board’s affirmative determination of independence. On the other hand, under the Companies Act, a director who has had a career as a management director, corporate executive officer, or other employee of the company, its subsidiaries or other group companies is by definition not an “outside” director. | |
Sony Group Corporation’s Board Charter includes a provision requiring that each “outside” director: (i) Shall not have received directly from Sony Group, during any consecutive 12-month period within the last three years, more than an amount equivalent to 120,000 U.S. dollars, other than Director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service); and(ii) Shall not be an executive director, a corporate executive officer, a general manager or other employee of any company whose aggregate amount of transactions with Sony Group, in any of the last three fiscal years, exceeds the greater of an amount equivalent to 1,000,000 U.S. dollars, or 2% of the annual consolidated sales of such company; | ||
In addition, the Securities Listing Regulations of the (1) A person for which the listed company is a major client or a person who executes business of a person for which the listed company is a major client; (2) A major client of the listed company or a person who executes business of a major client of the listed company; (3) A consultant, accounting professional, or legal professional (or, if such consultant, accounting professional, or legal professional is a juridical person, a member of such juridical person) of the listed company who receives a large amount of money or other consideration other than remuneration for directorship/auditorship from such listed company; |
NYSE Standards | Sony’s Corporate Governance Practices | |
(4) A person who has fallen in any of categories (1) through (3) listed above until recently; (5) A person who has fallen in any of categories (a) or (b) listed below for ten years prior to assuming his/her office: (a) A person who executes business of a parent company of the listed company or a director who does not execute business of a parent company of the listed company; or (b) A person who executes business of a fellow subsidiary of the listed company. | ||
(6) A close relative of a person who falls in any of categories (a) through (f) listed below (only if such person is significant): (a) A person who falls in any of (1) through (5) listed above; (b) A person who executes business of a subsidiary of the listed company; (c) A director who does not execute business of a subsidiary of the listed (d) A person who executes business of a parent company of the listed company or a director who does not execute business of a parent company of the listed company; (e) A person who executes business of a fellow subsidiary of the listed company; or (f) A person who has fallen in any of categories (b) or (c) listed above or a person who has executed business of the listed company until recently. | ||
As of June | ||
Executive Sessions. Non-management directors must meet in regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. | An “outside” director, as defined under the Companies Act, is equivalent to a “non-management director” under the NYSE rules because an “outside” director does not engage in the execution of business operations of the company.The outside/non-management Directors generally meet several times a year without management, though neither the Companies Act nor Sony Group Corporation’s Board Charter requiresnon-management Directors to meet regularly without management and there is no requirement for the outside Directors to meet alone in an executive session at least once a year. | |
NYSE Standards | Sony’s Corporate Governance Practices | |
Nominating/Corporate Governance Committee. | Sony Group Corporation’s Nominating Committee shall consist of at least three Directors. Under the Companies Act, the Committee is responsible for determining the contents of proposals regarding the appointment and dismissal of Directors to be submitted for approval to the shareholders’ meeting. Unlike listed U.S. companies under NYSE rules, it is not responsible for developing governance guidelines or overseeing the evaluation of the board and management. Under the Companies Act, a majority of its members shall be “outside” directors, as defined under the Companies Act. | |
Compensation Committee. | Sony Group Corporation’s Compensation Committee shall consist of at least three Directors. Under the Companies Act, a majority of its members shall be “outside” directors, as defined under the Companies Act. Sony Group Corporation’s Board Charter prohibits the CEO, the COO and/or the CFO (or a person at any equivalent position) from serving on the Compensation Committee. Under the Companies Act, the Committee is responsible for, among others, determining the compensation of each director and Corporate Executive Officer. | |
Audit Committee. | Sony Group Corporation’s Audit Committee shall consist of at least three Directors. Under the Companies Act, a majority of its members shall be “outside” Directors, as defined under the Companies Act. In addition, pursuant to the Companies Act, no member of the Committee shall be a Director of the company or any of its subsidiaries who is engaged in the business operations of the company or such subsidiary, as the case may be, or a corporate executive officer of the company or any of its subsidiaries, or an accounting counselor, general manager or other employee of any of such subsidiaries. Sony Group Corporation’s Board Charter also requires each member of the Audit Committee to meet the independence requirements of the applicable U.S. securities laws and regulations, and requires at least one member to meet the audit committee financial expert requirements. Currently, all the members of Sony Group Corporation’s Audit Committee are also “independent” as defined in the NYSE Corporate Governance Standards, and two members of the Committee are qualified as audit committee financial experts. | |
NYSE Standards | Sony’s Corporate Governance Practices | |
Equity Compensation Plans. | Under the Companies Act, if Sony Group Corporation wishes to adopt an equity compensation plan under which stock acquisition rights or shares of common stock are granted on specially favorable conditions, except where all of its shareholders are granted rights to subscribe for such stock acquisition rights/shares of common stock or such stock acquisition rights/shares of common stock are gratuitously allocated to all of its shareholders, each on a pro rata basis, then Sony Group Corporation must obtain shareholder approval by a “special resolution” at a General Meeting of Shareholders, where the quorum is one-third of the total number of voting rights of all of its shareholders and the approval by at leasttwo-thirds of the number of voting rights of all the shareholders represented at the meeting is required under Sony Group Corporation’s Articles of Incorporation.On the other hand, under the Companies Act, if Sony Group Corporation wishes to adopt an equity compensation plan under which stock acquisition rights or shares of common stock are granted against fair value thereof, such plan can be adopted by the resolution of Sony Group Corporation’s Compensation Committee, and grants of stock acquisition rights or shares pursuant to such plan may be decided by a resolution of the Board of Directors or a determination by a Corporate Executive Officer to whom the authority to make such determination has been delegated, and no shareholder approval is required. | |
Corporate Governance Guidelines. | Sony Group Corporation is required to disclose the status of its corporate governance under the Companies Act, Financial Instruments and Exchange Act and its related regulations, and the Securities Listing Regulations of the | |
Code of Ethics. | Although this provision of the NYSE Corporate Governance Standards does not apply to Sony Group Corporation, Sony Group Corporation has adopted a code of conduct to be observed by all its directors, officers and other employees. The code of conduct is available at: https://www.sony.com/en/SonyInfo/ reports/SustainabilityReport2020_E.pdf The code’s content covers principal items described in the NYSE Corporate Governance Standards. | |
Item 16H. | Mine Safety Disclosure |
Item 16I. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 17. Financial |
Item 18. Financial |
Item 19. | Exhibits |
1.1 | ||
1.2 | ||
1.3 | ||
2.1 | ||
2.2 | ||
2.3 | ||
8.1 | ||
12.1 | ||
12.2 | ||
13.1 | ||
15.1 | ||
101.INS | Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The cover page for the Company’s Annual Report on Form 20-F for the fiscal year ended March 31, |
SONY GROUP CORPORATION | ||
(Registrant) | ||
By: | /s/ HIROKI TOTOKI | |
(Signature) | ||
Hiroki Totoki | ||
Chief Financial Officer |
Page | ||
F-2 | ||
F-4 | ||
F-6 | ||
F-7 | ||
F-10 | ||
F-12 | ||
F-13 |
Yen in millions | ||||||||
2020 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 1,512,357 | 1,786,982 | ||||||
Marketable securities (including assets pledged that secured parties are permitted to sell or repledge of 17,521 million yen and 48,899 million yen in 2020 and 2021) | 1,847,772 | 2,902,438 | ||||||
Notes and accounts receivable, trade and contract assets | 1,028,793 | 1,099,300 | ||||||
Allowance for credit losses | (25,873 | ) | (29,406 | ) | ||||
Inventories | 589,969 | 637,391 | ||||||
Other receivables | 188,106 | 283,499 | ||||||
Prepaid expenses and other current assets | 594,021 | 538,540 | ||||||
Total current assets | 5,735,145 | 7,218,744 | ||||||
Film costs | 427,336 | 459,426 | ||||||
Investments and advances: | ||||||||
Affiliated companies | 207,922 | 226,218 | ||||||
Securities investments and other (including assets pledged that secured parties are permitted to sell or repledge of 930,882 million yen and 1,751,452 million yen in 2020 and 2021) | 12,526,210 | 14,046,196 | ||||||
Allowance for credit losses | — | (8,419 | ) | |||||
12,734,132 | 14,263,995 | |||||||
Property, plant and equipment: | ||||||||
Land | 81,482 | 79,557 | ||||||
Buildings | 659,556 | 683,249 | ||||||
Machinery and equipment | 1,725,720 | 1,748,961 | ||||||
Construction in progress | 76,391 | 100,728 | ||||||
2,543,149 | 2,612,495 | |||||||
Less — Accumulated depreciation | 1,634,505 | 1,627,061 | ||||||
908,644 | 985,434 | |||||||
Other assets: | ||||||||
Operating lease right-of-use | 359,510 | 337,322 | ||||||
Finance lease right-of-use | 33,100 | 39,772 | ||||||
Intangibles, net | 906,310 | 996,305 | ||||||
Goodwill | 783,888 | 827,149 | ||||||
Deferred insurance acquisition costs | 600,901 | 657,420 | ||||||
Deferred income taxes | 210,372 | 207,470 | ||||||
Other | 340,005 | 361,803 | ||||||
3,234,086 | 3,427,241 | |||||||
Total assets | 23,039,343 | 26,354,840 |
Yen in millions | ||||||||||
Note | March 31, 2022 | March 31, 2023 | ||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 27 | 2,049,636 | 1,480,900 | |||||||
Investments and advances in the Financial Services segment (including assets pledged that secured parties are permitted to sell or repledge of 94,147 million yen, and85,494 million yen as of March 31, 2022 and 2023, respectively) | 5, 14 | 360,673 | 328,357 | |||||||
Trade and other receivables, and contract assets | 5, 22 | 1,628,521 | 1,777,939 | |||||||
Inventories | 7 | 874,007 | 1,468,042 | |||||||
Other financial assets | 5 | 149,301 | 110,950 | |||||||
Other current assets | 19 | 473,070 | 610,330 | |||||||
Total current assets | 5,535,208 | 5,776,518 | ||||||||
Non-current assets: | ||||||||||
Investments accounted for using the equity method | 8 | 268,513 | 325,220 | |||||||
Investments and advances in the Financial Services segment (including assets pledged that secured parties are permitted to sell or repledge of 2,700,603 million yen and2,427,446 million yen as of March 31, 2022 and 2023, respectively) | 5, 14 | 18,445,088 | 18,445,728 | |||||||
Property, plant and equipment | 9 | 1,113,213 | 1,344,864 | |||||||
Right-of-use | 10 | 413,430 | 478,063 | |||||||
Goodwill | 11 | 952,895 | 1,275,112 | |||||||
Content assets | 11 | 1,342,046 | 1,561,882 | |||||||
Other intangible assets | 11 | 450,103 | 563,842 | |||||||
Deferred insurance acquisition costs | 13 | 676,526 | 730,864 | |||||||
Deferred tax assets | 25 | 298,589 | 384,839 | |||||||
Other financial assets | 5 | 696,306 | 832,344 | |||||||
Other non-current assets | 19 | 289,050 | 321,946 | |||||||
Total non-current assets | 24,945,759 | 26,264,704 | ||||||||
Total assets | 30,480,967 | 32,041,222 |
Yen in millions | ||||||||
2020 | 2021 | |||||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | 810,176 | 1,187,868 | ||||||
Current portion of long-term debt | 29,807 | 131,699 | ||||||
Current portion of long-term operating lease liabilities | 68,942 | 73,362 | ||||||
Notes and accounts payable, trade | 380,810 | 599,569 | ||||||
Accounts payable, other and accrued expenses | 1,630,197 | 1,756,833 | ||||||
Accrued income and other taxes | 145,996 | 165,406 | ||||||
Deposits from customers in the banking business | 2,440,783 | 2,773,885 | ||||||
Other | 733,732 | 1,126,802 | ||||||
Total current liabilities | 6,240,443 | 7,815,424 | ||||||
Long-term debt | 634,966 | 773,294 | ||||||
Long-term operating lease liabilities | 314,836 | 290,259 | ||||||
Accrued pension and severance costs | 324,655 | 254,103 | ||||||
Deferred income taxes | 549,538 | 366,761 | ||||||
Future insurance policy benefits and other | 6,246,047 | 6,599,977 | ||||||
Policyholders’ account in the life insurance business | 3,642,271 | 4,331,065 | ||||||
Other | 289,285 | 294,302 | ||||||
Total liabilities | 18,242,041 | 20,725,185 | ||||||
Redeemable noncontrolling interest | 7,767 | 8,179 | ||||||
Commitments and contingent liabilities | 0 | |||||||
EQUITY | ||||||||
Sony Group Corporation’s stockholders’ equity: | ||||||||
Common stock, 00no p ar value — | ||||||||
2020 — Shares authorized: 3,600,000,000; shares issued: 1,261,058,781 | 880,214 | |||||||
2021 — Shares authorized: 3,600,000,000; shares issued: 1,261,058,781 | 880,214 | |||||||
Additional paid-in capital | 1,289,719 | 1,486,721 | ||||||
Retained earnings | 2,768,856 | 3,857,152 | ||||||
Accumulated other comprehensive income — | ||||||||
Unrealized gains on securities, net | 161,191 | 101,305 | ||||||
Unrealized gains on derivative instruments, net | 1,248 | 2,761 | ||||||
Pension liability adjustment | (235,520 | ) | (223,468 | ) | ||||
Foreign currency translation adjustments | (509,872 | ) | (404,529 | ) | ||||
Debt valuation adjustments | 1,973 | (89 | ) | |||||
(580,980 | ) | (524,020 | ) | |||||
Treasury stock, at cost | ||||||||
Common stock | ||||||||
2020 — 40,898,841 shares | (232,503 | ) | ||||||
2021 — 21,831,206 shares | (124,228 | ) | ||||||
4,125,306 | 5,575,839 | |||||||
Noncontrolling interests | 664,229 | 45,637 | ||||||
Total equity | 4,789,535 | 5,621,476 | ||||||
Total liabilities and equity | 23,039,343 | 26,354,840 |
Yen in millions | ||||||||||
Note | March 31, 2022 | March 31, 2023 | ||||||||
LIABILITIES | ||||||||||
Current liabilities: | ||||||||||
Short-term borrowings | 5, 14 | 1,976,553 | 1,914,934 | |||||||
Current portion of long-term debt | 5, 14 | 171,409 | 187,942 | |||||||
Trade and other payables | 5 | 1,843,242 | 1,865,993 | |||||||
Deposits from customers in the banking business | 5 | 2,886,361 | 3,163,237 | |||||||
Income taxes payables | 106,092 | 152,700 | ||||||||
Participation and residual liabilities in the Pictures segment | 18 | 190,162 | 230,223 | |||||||
Other financial liabilities | 5 | 97,843 | 73,572 | |||||||
Other current liabilities | 19 | 1,488,488 | 1,720,335 | |||||||
Total current liabilities | 8,760,150 | 9,308,936 | ||||||||
Non-current liabilities: | ||||||||||
Long-term debt | 5, 14 | 1,203,646 | 1,767,696 | |||||||
Defined benefit liabilities | 17 | 254,548 | 236,121 | |||||||
Deferred tax liabilities | 25 | 696,492 | 356,324 | |||||||
Future insurance policy benefits and other | 13 | 7,039,034 | 7,264,421 | |||||||
Policyholders’ account in the life insurance business | 13 | 4,791,295 | 5,148,579 | |||||||
Participation and residual liabilities in the Pictures segment | 18 | 220,113 | 192,952 | |||||||
Other financial liabilities | 5 | 211,959 | 350,278 | |||||||
Other non-current liabilities | 19 | 106,481 | 127,593 | |||||||
Total non-current liabilities | 14,523,568 | 15,443,964 | ||||||||
Total liabilities | 23,283,718 | 24,752,900 | ||||||||
EQUITY | ||||||||||
Sony Group Corporation’s stockholders’ equity: | 20 | |||||||||
Common stock | 880,365 | 880,365 | ||||||||
Additional paid-in capital | 1,461,053 | 1,463,807 | ||||||||
Retained earnings | 3,760,763 | 4,614,637 | ||||||||
Accumulated other comprehensive income | 1,222,332 | 494,407 | ||||||||
Treasury stock, at cost | (180,042 | ) | (223,507 | ) | ||||||
Equity attributable to Sony Group Corporation’s stockholders | 7,144,471 | 7,229,709 | ||||||||
Noncontrolling interests | 52,778 | 58,613 | ||||||||
Total equity | 7,197,249 | 7,288,322 | ||||||||
Total liabilities and equity | 30,480,967 | 32,041,222 |
Yen in millions | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Sales and operating revenue: | ||||||||||||
Net sales | 7,306,235 | 6,856,090 | 7,252,766 | |||||||||
Financial services revenue | 1,274,708 | 1,299,847 | 1,661,520 | |||||||||
Other operating revenue | 84,744 | 103,948 | 85,074 | |||||||||
8,665,687 | 8,259,885 | 8,999,360 | ||||||||||
Costs and expenses: | ||||||||||||
Cost of sales | 5,150,750 | 4,753,174 | 5,072,596 | |||||||||
Selling, general and administrative | 1,576,825 | 1,502,625 | 1,469,955 | |||||||||
Financial services expenses | 1,112,446 | 1,171,875 | 1,488,963 | |||||||||
Other operating (income) expense, net | (71,568 | ) | (3,611 | ) | 7,468 | |||||||
7,768,453 | 7,424,063 | 8,038,982 | ||||||||||
Equity in net income (loss) of affiliated companies | (2,999 | ) | 9,637 | 11,487 | ||||||||
Operating income | 894,235 | 845,459 | 971,865 | |||||||||
Other income: | ||||||||||||
Interest and dividends | 21,618 | 19,278 | 10,457 | |||||||||
Gain on equity securities, net | 118,677 | — | 247,026 | |||||||||
Other | 4,440 | 2,671 | 6,752 | |||||||||
144,735 | 21,949 | 264,235 | ||||||||||
Other expenses: | ||||||||||||
Interest | 12,467 | 11,090 | 12,185 | |||||||||
Loss on equity securities, net | — | 20,180 | — | |||||||||
Foreign exchange loss, net | 11,279 | 26,789 | 16,056 | |||||||||
Net periodic benefit costs other than service costs | — | 4,572 | 8,811 | |||||||||
Other | 3,576 | 5,327 | 6,678 | |||||||||
27,322 | 67,958 | 43,730 | ||||||||||
Income before income taxes | 1,011,648 | 799,450 | 1,192,370 | |||||||||
Income taxes: | ||||||||||||
Current | 166,748 | 172,391 | 154,422 | |||||||||
Deferred | (121,650 | ) | 4,799 | (153,427 | ) | |||||||
45,098 | 177,190 | 995 | ||||||||||
Net income | 966,550 | 622,260 | 1,191,375 | |||||||||
Less — Net income attributable to noncontrolling interests | 50,279 | 40,069 | 19,599 | |||||||||
Net income attributable to Sony Group Corporation’s stockholders | 916,271 | 582,191 | 1,171,776 | |||||||||
Yen | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Per share data: | ||||||||||||
Common stock | ||||||||||||
Net income attributable to Sony Group Corporation’s stockholders | ||||||||||||
— Basic | 723.41 | 471.64 | 952.29 | |||||||||
— Diluted | 707.74 | 461.23 | 936.90 |
Yen in millions | ||||||||||||||
Fiscal year ended March 31 | ||||||||||||||
Note | 2021 | 2022 | 2023 | |||||||||||
Sales and financial services revenue: | ||||||||||||||
Sales | 22 | 7,333,670 | 8,396,702 | 10,095,841 | ||||||||||
Financial services revenue | 5, 13 | 1,664,991 | 1,524,811 | 1,443,996 | ||||||||||
Total sales and financial services revenue | 8,998,661 | 9,921,513 | 11,539,837 | |||||||||||
Costs and expenses: | ||||||||||||||
Cost of sales | 7, 17, 23 | 5,065,879 | 5,845,804 | 7,174,723 | ||||||||||
Selling, general and administrative | 17, 23 | 1,473,154 | 1,588,473 | 1,969,170 | ||||||||||
Financial services expenses | 5, 13, 17 | 1,501,674 | 1,374,037 | 1,224,208 | ||||||||||
Other operating (income) expense, net | 23, 31 | 14,250 | (65,494 | ) | (12,021 | ) | ||||||||
Total costs and expenses | 8,054,957 | 8,742,820 | 10,356,080 | |||||||||||
Share of profit (loss) of investments accounted for using the equity method | 8 | 11,551 | 23,646 | 24,449 | ||||||||||
Operating income | 955,255 | 1,202,339 | 1,208,206 | |||||||||||
Financial income | 24 | 83,792 | 19,304 | 31,058 | ||||||||||
Financial expenses | 24 | 41,082 | 104,140 | 58,951 | ||||||||||
Income before income taxes | 997,965 | 1,117,503 | 1,180,313 | |||||||||||
Income taxes | 25 | (45,931 | ) | 229,097 | 236,691 | |||||||||
Net income | 1,043,896 | 888,406 | 943,622 | |||||||||||
Net income attributable to | ||||||||||||||
Sony Group Corporation’s stockholders | 1,029,610 | 882,178 | 937,126 | |||||||||||
Noncontrolling interests | 14,286 | 6,228 | 6,496 | |||||||||||
Yen | ||||||||||||||
Fiscal year ended March 31 | ||||||||||||||
Note | 2021 | 2022 | 2023 | |||||||||||
Per share data: | 26 | |||||||||||||
Net income attributable to Sony Group Corporation’s stockholders | ||||||||||||||
— Basic | 836.75 | 711.84 | 758.38 | |||||||||||
— Diluted | 823.77 | 705.16 | 754.95 |
Yen in millions | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Net income | 966,550 | 622,260 | 1,191,375 | |||||||||
Other comprehensive income, net of tax — | ||||||||||||
Unrealized gains (losses) on securities | 33,285 | 40,390 | (102,492 | ) | ||||||||
Unrealized gains on derivative instruments | 1,223 | 1,267 | 1,513 | |||||||||
Pension liability adjustment | (13,960 | ) | 74,971 | 12,965 | ||||||||
Foreign currency translation adjustments | 8,444 | (75,888 | ) | 106,826 | ||||||||
Debt valuation adjustments | — | 3,032 | (3,120 | ) | ||||||||
Total comprehensive income | 995,542 | 666,032 | 1,207,067 | |||||||||
Less — Comprehensive income attributable to noncontrolling interests | 57,669 | 54,151 | 8,231 | |||||||||
Comprehensive income attributable to Sony Group Corporation’s stockholders | 937,873 | 611,881 | 1,198,836 |
Yen in millions | ||||||||||||||
Fiscal year ended March 31 | ||||||||||||||
Note | 2021 | 2022 | 2023 | |||||||||||
Net income | 1,043,896 | 888,406 | 943,622 | |||||||||||
Other comprehensive income, net of tax — | 20 | |||||||||||||
Items that will not be reclassified to profit or loss | ||||||||||||||
Changes in equity instruments measured at fair value through other comprehensive income | 144,740 | (106,426 | ) | (36,862 | ) | |||||||||
Remeasurement of defined benefit pension plans | 11,555 | 33,641 | 18,891 | |||||||||||
Share of other comprehensive income of investments accounted for using the equity method | 87 | 577 | 145 | |||||||||||
Items that may be reclassified subsequently to profit or loss | ||||||||||||||
Changes in debt instruments measured at fair value through other comprehensive income | (205,549 | ) | (416,904 | ) | (884,678 | ) | ||||||||
Cash flow hedges | 51 | 4,735 | 12,379 | |||||||||||
Insurance contract valuation adjustments | (3,120 | ) | 599 | 1,714 | ||||||||||
Exchange differences on translating foreign operations | 115,321 | 226,275 | 178,275 | |||||||||||
Share of other comprehensive income of investments accounted for using the equity method | 798 | 1,501 | 3,554 | |||||||||||
Total other comprehensive income, net of tax | 63,883 | (256,002 | ) | (706,582 | ) | |||||||||
Comprehensive income | 1,107,779 | 632,404 | 237,040 | |||||||||||
Comprehensive income attributable to | ||||||||||||||
Sony Group Corporation’s stockholders | 1,118,628 | 623,678 | 227,794 | |||||||||||
Noncontrolling interests | (10,849 | ) | 8,726 | 9,246 |
Yen in millions | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 966,550 | 622,260 | 1,191,375 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities — | ||||||||||||
Depreciation and amortization, including amortization of deferred insurance acquisition costs and contract costs | 374,026 | 416,642 | 390,693 | |||||||||
Amortization of film costs | 348,493 | 329,809 | 273,044 | |||||||||
Accrual for pension and severance costs, less payments | (33,631 | ) | 8,948 | (42,936 | ) | |||||||
Other operating (income) expense, net | (71,568 | ) | (3,611 | ) | 7,468 | |||||||
(Gain) loss on securities investments, net (other than financial services business) | (118,630 | ) | 20,177 | (247,033 | ) | |||||||
(Gain) loss on marketable securities and securities investments held in the financial services business, net | (66,383 | ) | 93,088 | (478,321 | ) | |||||||
Deferred income taxes | (121,650 | ) | 4,799 | (153,427 | ) | |||||||
Equity in net (income) loss of affiliated companies, net of dividends | 7,947 | (5,114 | ) | (4,948 | ) | |||||||
Changes in assets and liabilities: | ||||||||||||
(Increase) decrease in notes and accounts receivable, trade and contract assets | 1,144 | 62,654 | (37,779 | ) | ||||||||
(Increase) decrease in inventories | 30,455 | 40,315 | (57,007 | ) | ||||||||
Increase in film costs | (410,994 | ) | (361,194 | ) | (280,541 | ) | ||||||
Increase (decrease) in notes and accounts payable, trade | 18,534 | (91,435 | ) | 211,939 | ||||||||
Increase (decrease) in accrued income and other taxes | (20,039 | ) | (40,144 | ) | 80,165 | |||||||
Increase in future insurance policy benefits and other | 544,179 | 520,683 | 905,343 | |||||||||
Increase in deferred insurance acquisition costs | (88,807 | ) | (99,433 | ) | (102,289 | ) | ||||||
Increase in marketable securities held in the life insurance business | (64,034 | ) | (124,270 | ) | (156,132 | ) | ||||||
(Increase) decrease in other current assets | 16,576 | (37,286 | ) | (102,400 | ) | |||||||
Increase (decrease) in other current liabilities | 56,723 | (27,083 | ) | 62,619 | ||||||||
Other | (110,153 | ) | 19,940 | (109,683 | ) | |||||||
Net cash provided by operating activities | 1,258,738 | 1,349,745 | 1,350,150 | |||||||||
Cash flows from investing activities: | ||||||||||||
Payments for purchases of fixed assets | (312,644 | ) | (439,761 | ) | (512,239 | ) | ||||||
Proceeds from sales of fixed assets | 17,585 | 18,758 | 15,823 | |||||||||
Payments for investments and advances by financial services business | (1,078,250 | ) | (1,319,062 | ) | (1,631,017 | ) | ||||||
Payments for investments and advances (other than financial services business) | (53,525 | ) | (48,853 | ) | (103,143 | ) | ||||||
Proceeds from sales or return of investments and collections of advances by financial services business | 309,498 | 343,740 | 449,081 | |||||||||
Proceeds from sales or return of investments and collections of advances (other than financial services business) | 2,442 | 14,456 | 20,309 | |||||||||
Payment for EMI Music Publishing acquisition, net of cash acquired | (244,197 | ) | — | — | ||||||||
Proceeds from sales of businesses | — | 12,816 | 3,151 | |||||||||
Proceeds related to sales of Spotify Technology S.A. Shares | 82,467 | — | — | |||||||||
Proceeds from sales of Olympus Corporation Shares | — | 80,357 | — | |||||||||
Other | (30,821 | ) | (14,729 | ) | (23,481 | ) | ||||||
Net cash used in investing activities | (1,307,445 | ) | (1,352,278 | ) | (1,781,516 | ) |
Yen in millions | ||||||||||||||||||||||||||||||||||||
Note | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock, at cost | Sony Group Corporation’s stockholders’ equity | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||
Balance at April 1, 2020 | 880,214 | 1,297,554 | 1,949,697 | 979,476 | (232,503 | ) | 4,874,438 | 1,120,038 | 5,994,476 | |||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 1,029,610 | 1,029,610 | 14,286 | 1,043,896 | ||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 20 | 89,018 | 89,018 | (25,135 | ) | 63,883 | ||||||||||||||||||||||||||||||
Total comprehensive income | 1,029,610 | 89,018 | 1,118,628 | (10,849 | ) | 1,107,779 | ||||||||||||||||||||||||||||||
Transfer to retained earnings | 5,472 | (5,472 | ) | — | — | |||||||||||||||||||||||||||||||
Transactions with stockholders and other: | ||||||||||||||||||||||||||||||||||||
Exercise of stock acquisition rights | (354 | ) | (735 | ) | 18,074 | 16,985 | 16,985 | |||||||||||||||||||||||||||||
Conversion of convertible bonds | (3,671 | ) | (8,198 | ) | 89,402 | 77,533 | 77,533 | |||||||||||||||||||||||||||||
Stock-based compensation | 1,577 | 1,577 | 1,577 | |||||||||||||||||||||||||||||||||
Dividends declared (50.00 yen per share) | (61,343 | ) | (61,343 | ) | (12,996 | ) | (74,339 | ) | ||||||||||||||||||||||||||||
Purchase of treasury stock | (366 | ) | (366 | ) | (366 | ) | ||||||||||||||||||||||||||||||
Reissuance of treasury stock | 354 | 1,165 | 1,519 | 1,519 | ||||||||||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other | 20 | 194,137 | 457,235 | 651,372 | (1,052,197 | ) | (400,825 | ) | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | 880,214 | 1,489,597 | 2,914,503 | 1,520,257 | (124,228 | ) | 6,680,343 | 43,996 | 6,724,339 | |||||||||||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||||||||||||||
Note | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock, at cost | Sony Group Corporation’s stockholders’ equity | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||
Balance at April 1, 2021 | 880,214 | 1,489,597 | 2,914,503 | 1,520,257 | (124,228 | ) | 6,680,343 | 43,996 | 6,724,339 | |||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 882,178 | 882,178 | 6,228 | 888,406 | ||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 20 | (258,500 | ) | (258,500 | ) | 2,498 | (256,002 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 882,178 | (258,500 | ) | 623,678 | 8,726 | 632,404 | ||||||||||||||||||||||||||||||
Transfer to retained earnings | 39,425 | (39,425 | ) | — | — | |||||||||||||||||||||||||||||||
Transactions with stockholders and other: | ||||||||||||||||||||||||||||||||||||
Issuance of new shares | 151 | 151 | 302 | 302 | ||||||||||||||||||||||||||||||||
Exercise of stock acquisition rights | 547 | 12,785 | 13,332 | 13,332 | ||||||||||||||||||||||||||||||||
Conversion of convertible bonds | (2,805 | ) | (958 | ) | 18,278 | 14,515 | 14,515 | |||||||||||||||||||||||||||||
Stock-based compensation | 6,643 | 6,643 | 6,643 | |||||||||||||||||||||||||||||||||
Dividends declared (60.00 yen per share) | (74,385 | ) | (74,385 | ) | (4,955 | ) | (79,340 | ) | ||||||||||||||||||||||||||||
Purchase of treasury stock | 20 | (88,624 | ) | (88,624 | ) | (88,624 | ) | |||||||||||||||||||||||||||||
Reissuance of treasury stock | 1,544 | 1,747 | 3,291 | 3,291 | ||||||||||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other | (34,624 | ) | (34,624 | ) | 5,011 | (29,613 | ) | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | 880,365 | 1,461,053 | 3,760,763 | 1,222,332 | (180,042 | ) | 7,144,471 | 52,778 | 7,197,249 |
Yen in millions | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of long-term debt | 94,351 | 118,447 | 406,857 | |||||||||
Payments of long-term debt | (382,671 | ) | (198,055 | ) | (98,134 | ) | ||||||
Increase in short-term borrowings, net | 123,979 | 193,332 | 355,536 | |||||||||
Proceeds from issuance of short-term borrowings in connection with payment for purchase of noncontrolling interest in Sony Financial Holdings Inc. | — | — | 396,500 | |||||||||
Payments of short-term borrowings in connection with payment for purchase of noncontrolling interest in Sony Financial Holdings Inc. | — | — | (396,500 | ) | ||||||||
Increase in deposits from customers in the financial services business, net | 246,945 | 258,720 | 467,286 | |||||||||
Dividends paid | (38,067 | ) | (49,574 | ) | (61,288 | ) | ||||||
Payments for purchase of treasury stock | (100,177 | ) | (200,211 | ) | (366 | ) | ||||||
Payment for purchase of noncontrolling interest in Nile Acquisition LLC | (32,041 | ) | — | — | ||||||||
Payment for purchase of noncontrolling interest in Game Show Network, LLC | — | (39,894 | ) | — | ||||||||
Payment for purchase of noncontrolling interest in Sony Financial Holdings Inc. | — | — | (396,698 | ) | ||||||||
Other | (35,203 | ) | (17,107 | ) | (6,226 | ) | ||||||
Net cash provided by (used in) financing activities | (122,884 | ) | 65,658 | 666,967 | ||||||||
Effect of exchange rate changes on cash and cash equivalents, including restricted | 52,465 | (21,643 | ) | 36,668 | ||||||||
Net increase (decrease) in cash and cash equivalents, including restricted | (119,126 | ) | 41,482 | 272,269 | ||||||||
Cash and cash equivalents, including restricted, at beginning of the fiscal year | 1,592,939 | 1,473,813 | 1,515,295 | |||||||||
Cash and cash equivalents, including restricted, at end of the fiscal year | 1,473,813 | 1,515,295 | 1,787,564 | |||||||||
Less — Restricted cash and cash equivalents, included in other current assets and other assets | 3,740 | 2,938 | 582 | |||||||||
Cash and cash equivalents at end of the fiscal year | 1,470,073 | 1,512,357 | 1,786,982 | |||||||||
Supplemental data: | ||||||||||||
Cash paid during the fiscal year for — | ||||||||||||
Income taxes | 210,499 | 216,922 | 119,084 | |||||||||
Interest | 10,882 | 10,000 | 8,491 | |||||||||
Non-cash investing and financing activities — | ||||||||||||
Conversion of convertible bonds | 16 | 430 | 78,342 | |||||||||
Obtaining assets by entering into finance leases | 32,541 | 6,478 | 9,597 |
Yen in millions | ||||||||||||||||||||||||||||||||||||
Note | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock, at cost | Sony Group Corporation’s stockholders’ equity | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||
Balance at April 1, 2022 | 880,365 | 1,461,053 | 3,760,763 | 1,222,332 | (180,042 | ) | 7,144,471 | 52,778 | 7,197,249 | |||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 937,126 | 937,126 | 6,496 | 943,622 | ||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 20 | (709,332 | ) | (709,332 | ) | 2,750 | (706,582 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 937,126 | (709,332 | ) | 227,794 | 9,246 | 237,040 | ||||||||||||||||||||||||||||||
Transfer to retained earnings | 18,593 | (18,593 | ) | — | — | |||||||||||||||||||||||||||||||
Transactions with stockholders and other: | ||||||||||||||||||||||||||||||||||||
Exercise of stock acquisition rights | (14 | ) | (1,352 | ) | 10,364 | 8,998 | 8,998 | |||||||||||||||||||||||||||||
Conversion of convertible bonds | (2,588 | ) | (13,858 | ) | 42,993 | 26,547 | 26,547 | |||||||||||||||||||||||||||||
Stock-based compensation | 11,064 | 11,064 | 11,064 | |||||||||||||||||||||||||||||||||
Dividends declared (70.00 yen per share) | (86,635 | ) | (86,635 | ) | (5,980 | ) | (92,615 | ) | ||||||||||||||||||||||||||||
Purchase of treasury stock | 20 | (99,248 | ) | (99,248 | ) | (99,248 | ) | |||||||||||||||||||||||||||||
Reissuance of treasury stock | 1,242 | 2,426 | 3,668 | 3,668 | ||||||||||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other | (6,950 | ) | (6,950 | ) | 2,569 | (4,381 | ) | |||||||||||||||||||||||||||||
Balance at March 31, 2023 | 880,365 | 1,463,807 | 4,614,637 | 494,407 | (223,507 | ) | 7,229,709 | 58,613 | 7,288,322 |
Yen in millions | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock, at cost | Sony Group Corporation’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balance at March 31, 2018 | 865,678 | 1,282,577 | 1,440,387 | (616,746 | ) | (4,530 | ) | 2,967,366 | 679,791 | 3,647,157 | ||||||||||||||||||||||
Cumulative effect of newly adopted ASUs | 7,976 | (15,526 | ) | (7,550 | ) | 5,432 | (2,118 | ) | ||||||||||||||||||||||||
Issuance of new shares | 431 | 431 | 862 | 862 | ||||||||||||||||||||||||||||
Exercise of stock acquisition rights | 8,174 | 8,174 | 16,348 | 16,348 | ||||||||||||||||||||||||||||
Conversion of convertible bonds | 8 | 8 | 16 | 16 | ||||||||||||||||||||||||||||
Stock-based compensation | 1,159 | 1,159 | 1,159 | |||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 916,271 | 916,271 | 50,279 | 966,550 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax — | ||||||||||||||||||||||||||||||||
Unrealized gains on securities | 24,370 | 24,370 | 8,915 | 33,285 | ||||||||||||||||||||||||||||
Unrealized gains on derivative instruments | 1,223 | 1,223 | 1,223 | |||||||||||||||||||||||||||||
Pension liability adjustment | (14,013 | ) | (14,013 | ) | 53 | (13,960 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustments | 10,022 | 10,022 | (1,578 | ) | 8,444 | |||||||||||||||||||||||||||
Total comprehensive income | 937,873 | 57,669 | 995,542 | |||||||||||||||||||||||||||||
Stock issue costs, net of tax | (147 | ) | (147 | ) | (147 | ) | ||||||||||||||||||||||||||
Dividends declared (35.00 yen per share) | (44,048 | ) | (44,048 | ) | (28,961 | ) | (73,009 | ) | ||||||||||||||||||||||||
Purchase of treasury stock | (100,177 | ) | (100,177 | ) | (100,177 | ) | ||||||||||||||||||||||||||
Reissuance of treasury stock | 1 | 3 | 4 | 4 | ||||||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other | (25,329 | ) | (25,329 | ) | (23,618 | ) | (48,947 | ) | ||||||||||||||||||||||||
Balance at March 31, 2019 | 874,291 | 1,266,874 | 2,320,586 | (610,670 | ) | (104,704 | ) | 3,746,377 | 690,313 | 4,436,690 | ||||||||||||||||||||||
Yen in millions | ||||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||
Note | 2021 | 2022 | 2023 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Income before income taxes | 997,965 | 1,117,503 | 1,180,313 | |||||||||||||
Adjustments to reconcile income before income taxes to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization, including amortization of contract costs | 687,373 | 835,233 | 1,004,590 | |||||||||||||
Amortization of deferred insurance acquisition costs | 44,738 | 69,237 | 84,523 | |||||||||||||
Other operating (income) expense, net | 23 | 14,250 | (65,494 | ) | (12,021 | ) | ||||||||||
(Gain) loss on securities, net (other than Financial Services segment) | 24 | (62,704 | ) | 60,402 | 4,469 | |||||||||||
Share of profit of investments accounted for using the equity method, net of dividends | (5,012 | ) | (13,934 | ) | (17,696 | ) | ||||||||||
Change in future insurance policy benefits and other | 358,666 | 458,880 | 234,102 | |||||||||||||
Change in policyholders’ account in the life insurance business, less cash impact | 558,539 | 238,309 | 15,523 | |||||||||||||
Net cash impact of policyholders’ account in the life insurance business | 134,299 | 227,262 | 346,455 | |||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Increase in trade receivables and contract assets | (137,939 | ) | (171,094 | ) | (70,448 | ) | ||||||||||
Increase in inventories | (56,509 | ) | (194,624 | ) | (560,382 | ) | ||||||||||
Increase in investments and advances in the Financial Services segment | (1,977,092 | ) | (1,724,164 | ) | (1,250,078 | ) | ||||||||||
Increase in content assets | (309,178 | ) | (502,253 | ) | (603,314 | ) | ||||||||||
Increase in deferred insurance acquisition costs | (98,122 | ) | (117,337 | ) | (118,096 | ) | ||||||||||
Increase (decrease) in trade payables | 288,854 | 126,989 | (109,336 | ) | ||||||||||||
Increase in deposits from customers in the banking business | 333,075 | 230,236 | 300,201 | |||||||||||||
Increase in borrowings in the life insurance business and the banking business | 462,751 | 905,139 | 111,314 | |||||||||||||
Increase in taxes payable other than income taxes, net | 19,164 | 17,840 | 4,183 | |||||||||||||
(Increase) decrease in other financial assets and other current assets | (9,703 | ) | (17,681 | ) | 5,965 | |||||||||||
Increase in other financial liabilities and other current liabilities | 23,906 | 66,407 | 122,878 | |||||||||||||
Income taxes paid | 25 | (102,732 | ) | (269,885 | ) | (297,881 | ) | |||||||||
Other | (24,372 | ) | (43,328 | ) | (60,573 | ) | ||||||||||
Net cash provided by operating activities | 1,140,217 | 1,233,643 | 314,691 |
Yen in millions | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock, at cost | Sony Group Corporation’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balance at March 31, 2019 | 874,291 | 1,266,874 | 2,320,586 | (610,670 | ) | (104,704 | ) | 3,746,377 | 690,313 | 4,436,690 | ||||||||||||||||||||||
Cumulative effect of ASU 2016-02 | (7,472 | ) | (7,472 | ) | (7,472 | ) | ||||||||||||||||||||||||||
Issuance of new shares | 529 | 529 | 1,058 | 1,058 | ||||||||||||||||||||||||||||
Exercise of stock acquisition rights | 5,179 | 5,180 | 10,359 | 10,359 | ||||||||||||||||||||||||||||
Conversion of convertible bonds | 215 | 215 | 430 | 430 | ||||||||||||||||||||||||||||
Stock-based compensation | 1,980 | 1,980 | 1,980 | |||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 582,191 | 582,191 | 40,069 | 622,260 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax — | ||||||||||||||||||||||||||||||||
Unrealized gains on securities | 26,156 | 26,156 | 14,234 | 40,390 | ||||||||||||||||||||||||||||
Unrealized gains on derivative instruments | 1,267 | 1,267 | 1,267 | |||||||||||||||||||||||||||||
Pension liability adjustment | 74,937 | 74,937 | 34 | 74,971 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | (74,643 | ) | (74,643 | ) | (1,245 | ) | (75,888 | ) | ||||||||||||||||||||||||
Debt valuation adjustments | 1,973 | 1,973 | 1,059 | 3,032 | ||||||||||||||||||||||||||||
Total comprehensive income | 611,881 | 54,151 | 666,032 | |||||||||||||||||||||||||||||
Stock issue costs, net of tax | (80 | ) | (80 | ) | (80 | ) | ||||||||||||||||||||||||||
Dividends declared (45.00 yen per share) | (55,111 | ) | (55,111 | ) | (25,885 | ) | (80,996 | ) | ||||||||||||||||||||||||
Purchase of treasury stock | (200,211 | ) | (200,211 | ) | (200,211 | ) | ||||||||||||||||||||||||||
Reissuance of treasury stock | 0 | 2 | 2 | 2 | ||||||||||||||||||||||||||||
Cancellation of treasury stock | (1,072 | ) | (71,338 | ) | 72,410 | — | — | |||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other | 16,093 | 16,093 | (54,350 | ) | (38,257 | ) | ||||||||||||||||||||||||||
Balance at March 31, 2020 | 880,214 | 1,289,719 | 2,768,856 | (580,980 | ) | (232,503 | ) | 4,125,306 | 664,229 | 4,789,535 | ||||||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock, at cost | Sony Group Corporation’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balance at March 31, 2020 | 880,214 | 1,289,719 | 2,768,856 | (580,980 | ) | (232,503 | ) | 4,125,306 | 664,229 | 4,789,535 | ||||||||||||||||||||||
Cumulative effect of ASU 2016-13 | (3,669 | ) | (3,669 | ) | (1,386 | ) | (5,055 | ) | ||||||||||||||||||||||||
Exercise of stock acquisition rights | (354 | ) | (735 | ) | 18,074 | 16,985 | 16,985 | |||||||||||||||||||||||||
Conversion of convertible bonds | (11,060 | ) | 89,402 | 78,342 | 78,342 | |||||||||||||||||||||||||||
Stock-based compensation | 1,577 | 1,577 | 1,577 | |||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 1,171,776 | 1,171,776 | 19,599 | 1,191,375 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax — | ||||||||||||||||||||||||||||||||
Unrealized losses on securities | (90,521 | ) | (90,521 | ) | (11,971 | ) | (102,492 | ) | ||||||||||||||||||||||||
Unrealized gains on derivative Instruments | 1,513 | 1,513 | 1,513 | |||||||||||||||||||||||||||||
Pension liability adjustment | 12,962 | 12,962 | 3 | 12,965 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | 105,643 | 105,643 | 1,183 | 106,826 | ||||||||||||||||||||||||||||
Debt valuation adjustments | (2,537 | ) | (2,537 | ) | (583 | ) | (3,120 | ) | ||||||||||||||||||||||||
Total comprehensive income | 1,198,836 | 8,231 | 1,207,067 | |||||||||||||||||||||||||||||
Dividends declared (55.00 yen per share) | (68,016 | ) | (68,016 | ) | (12,996 | ) | (81,012 | ) | ||||||||||||||||||||||||
Purchase of treasury stock | (366 | ) | (366 | ) | (366 | ) | ||||||||||||||||||||||||||
Reissuance of treasury stock | 354 | 1,165 | 1,519 | 1,519 | ||||||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other | 195,425 | 29,900 | 225,325 | (612,441 | ) | (387,116 | ) | |||||||||||||||||||||||||
Balance at March 31, 2021 | 880,214 | 1,486,721 | 3,857,152 | (524,020 | ) | (124,228 | ) | 5,575,839 | 45,637 | 5,621,476 | ||||||||||||||||||||||
Yen in millions | ||||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||
Note | 2021 | 2022 | 2023 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Payments for property, plant and equipment and other intangible assets | (477,931 | ) | (441,096 | ) | (613,635 | ) | ||||||||||
Proceeds from sales of property, plant and equipment and other intangible assets | 15,893 | 11,409 | 11,595 | |||||||||||||
Payments for investments and advances (other than Financial Services segment) | (103,351 | ) | (91,082 | ) | (191,129 | ) | ||||||||||
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment) | 20,352 | 16,081 | 13,548 | |||||||||||||
Payments for purchases of businesses | (15,260 | ) | (277,618 | ) | (283,402 | ) | ||||||||||
Proceeds from sales of businesses | 3,151 | 64,609 | 1,221 | |||||||||||||
Other | (6,764 | ) | (11,083 | ) | 9,138 | |||||||||||
Net cash used in investing activities | (563,910 | ) | (728,780 | ) | (1,052,664 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||
Increase (decrease) in short-term borrowings, net | 14, 27 | (18,334 | ) | 408 | 32,391 | |||||||||||
Proceeds from issuance of long-term debt | 14, 27 | 236,935 | 31,458 | 361,776 | ||||||||||||
Payments of long-term debt | 14, 27 | (89,918 | ) | (194,562 | ) | (132,198 | ) | |||||||||
Proceeds from issuance of short-term borrowings in connection with payment for purchase of noncontrolling interest in Sony Financial Group Inc. | 396,500 | — | — | |||||||||||||
Payments of short-term borrowings in connection with payment for purchase of noncontrolling interest in Sony Financial Group Inc. | (396,500 | ) | — | — | ||||||||||||
Dividends paid | (61,288 | ) | (74,342 | ) | (86,568 | ) | ||||||||||
Payments for purchases of treasury stock | 20 | (366 | ) | (88,624 | ) | (99,248 | ) | |||||||||
Payment for purchase of noncontrolling interest in Sony Financial Group Inc. | 20 | (396,698 | ) | — | — | |||||||||||
Other | (8,864 | ) | (10,916 | ) | 8,147 | |||||||||||
Net cash provided by (used in) financing activities | (338,533 | ) | (336,578 | ) | 84,300 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 36,685 | 94,369 | 84,937 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 274,459 | 262,654 | (568,736 | ) | ||||||||||||
Cash and cash equivalents at beginning of the fiscal year | 27 | 1,512,523 | 1,786,982 | 2,049,636 | ||||||||||||
Cash and cash equivalents at end of the fiscal year | 27 | 1,786,982 | 2,049,636 | 1,480,900 |
Page | ||||||||
Notes to Consolidated Financial Statements | ||||||||
1. | ||||||||
2. | F-13 | |||||||
3. | ||||||||
F-38 | ||||||||
5. | F-43 | |||||||
6. | F-53 | |||||||
7. | ||||||||
F-72 | ||||||||
13. | ||||||||
F-85 | ||||||||
18. | F-91 | |||||||
19. | F-91 | |||||||
20. | ||||||||
F-101 | ||||||||
25. | ||||||||
F-106 | ||||||||
28. | ||||||||
F-111 | ||||||||
30. | ||||||||
F-114 | ||||||||
33. | ||||||||
1. |
2. |
3. | Summary of significant accounting policies |
I. | Significant accounting policies |
(1) | Basis of consolidation - |
i) | Subsidiaries |
ii) | Associates and joint ventures |
iii) | Joint operations |
iv) | Structured entities |
(2) | Business combinations - |
(3) | Foreign currency translation - |
i) | Foreign currency transactions |
ii) | Foreign operations |
(4) | Cash and cash equivalents |
(5) | Financial instruments - |
i) | Non-derivative financial assets |
a. | Classification and measurement |
b. | Derecognition |
c. | Impairment |
ii) | Non-derivative financial liabilities |
iii) | Derivative financial instruments and hedge accounting |
iv) | Offsetting a financial asset and a financial liability |
(6) | Inventories - |
(7) | Property, plant and equipment and depreciation - |
(8) | Leases - |
(9) | Intangible assets and amortization, including content assets - |
(10) | Impairment of non-financial assets - |
(11) | Insurance-related accounts - |
i) | Deferred insurance acquisition costs |
ii) | Future insurance policy benefits |
iii) | Policyholders’ account in the life insurance business |
iv) | Insurance-related accounts measured at fair |
v) | Shadow accounting in the life insurance business |
(12) | Provisions - |
i) | Participation and residual liabilities in the Pictures segment |
ii) | Product warranties |
(13) | Employee benefits - |
i) | Post-employment benefits |
ii) | Short-term employee benefits |
(14) | Stock-based compensation - |
i) | Stock option plan |
ii) | Restricted stock plan |
iii) | Restricted stock unit plan |
(15) | Fair value measurement - |
Level 1 | — | Inputs are unadjusted quoted prices for identical assets and liabilities in active markets. | ||
Level 2 | — | Inputs are based on observable inputs other than | ||
Level 3 | — | One or more significant inputs are unobservable. |
(16) | Revenue recognition - |
(17) | Cost of sales - |
(18) | Research and development expenditures - |
(19) | Selling, general and administrative - |
(20) | Financial services expenses - |
(21) | Advertising costs - |
(22) | Shipping and handling costs - |
(23) | Income taxes - |
(24) | Net income (loss) attributable to Sony Group Corporation’s stockholders per share (“EPS”) - |
II. | Recently adopted accounting standards |
III. | New accounting standards and interpretations not yet adopted |
(1) | Significant accounting policies of IFRS 17, which Sony will apply from the fiscal year ending March 31, 2024 |
i) | Definition and classification of insurance contracts |
ii) | Aggregation of insurance contracts |
iii) | Recognition and derecognition of insurance contracts |
iv) | Contract boundaries |
(a) | has the practical ability to reassess the risks of the particular policyholder and can set a price or level of benefits that fully reflects those reassessed risks; or |
(b) | has the practical ability to reassess the risks of the portfolio that contains the contract and can set a price or level of benefits that fully reflects the risks of that portfolio, and the pricing of the premiums up to the reassessment date does not take into account risks that relate to periods after the reassessment date. |
v) | Initial measurement of insurance contracts not measured under the premium allocation approach (“PAA”) |
(a) | Fulfillment cash flows |
(b) | CSM |
vi) | Subsequent measurement of insurance contracts not measured under the PAA |
(a) | Fulfillment cash flows |
(b) | CSM |
(1) | the effect of any new contracts that are added to the group during the current fiscal year; |
(2) | interest accreted on the carrying amount of the CSM during the current fiscal year; |
(3) | the changes in fulfillment cash flows relating to future service including the following items below: |
1. | experience adjustments arising from premiums received in the current fiscal year that relate to future services (including those for related cash flows such as insurance acquisition cash flows and premium-based taxes); |
2. | changes in estimates of the present value of future cash flows in the liability for remaining coverage (excluding the effect of the time value of money, financial risk and changes therein); |
3. | differences between any investment component expected to become payable in the current fiscal year and the actual investment component that becomes payable in the current fiscal year; and |
4. | changes in the risk adjustment for non-financial risk that relate to future services; |
(4) | the effect of any currency exchange differences; and |
(5) | the amount recognized as insurance revenue for insurance contract services provided during the current fiscal year, which is determined after all the adjustments above. |
(1) | the effect of any new contracts that are added to the group during the current fiscal year; |
(2) | changes in Sony’s share of the fair value of the underlying items; |
(3) | changes in the fulfillment cash flows that do not vary based on the returns of underlying items including the following items below: |
1. | changes in the effect of the time value of money and financial risks including the effect of financial guarantees; |
2. | experience adjustments arising from premiums received in the current fiscal year that relate to future services (including those for related cash flows such as insurance acquisition cash flows and premium-based taxes); |
3. | changes in estimates of the present value of future cash flows in the liability for remaining coverage (excluding the effect of the time value of money, financial risk and changes therein); |
4. | differences between any investment component expected to become payable in the current fiscal year and the actual investment component that becomes payable in the current fiscal year; and |
5. | changes in the risk adjustment for non-financial risk that relate to future services; |
(4) | the effect of any currency exchange differences; and |
(5) | the amount recognized as insurance revenue for insurance contract services provided during the current fiscal year, which is determined after all the adjustments above. |
(1) | expected incurred claims and expenses for the period; |
(2) | changes in the risk adjustment for non-financial risk for the risk expired; and |
(3) | finance income (expenses) from insurance contracts issued. |
vii) | Application of the PAA |
viii) | Presentation |
(a) | Insurance revenue |
(1) | Contracts not measured under the PAA |
(2) | Contracts measured under the PAA |
(b) | Insurance service expenses |
(1) | incurred claims and benefits excluding investment components and reduced by the loss component allocation; |
(2) | other incurred and directly attributable insurance service expenses (reduced by the loss component allocation); |
(3) | amortization of insurance acquisition cash flows; |
(4) | changes that relate to past services (e.g., changes in the fulfillment cash flows relating to the liability for incurred claims; and |
(5) | changes that relate to future services (e.g., losses on onerous insurance contracts and reversal of those losses arising from changes in the loss components). |
(c) | Insurance finance income and expenses |
(2) | Significant judgments and estimates for IFRS 17, which Sony will apply from the fiscal year ending March 31, 2024 |
i) | Measurement methods and inputs for insurance contracts |
ii) | Discretionary participation features of future cash flows |
iii) | Risk adjustments for non-financial risk |
iv) | Discount rates |
v) | Investment components |
vi) | Determination of coverage units |
(3) | Disclosure of transition to IFRS 17 |
Year of issue (fiscal year) | Transition approach | |
2015 and thereafter | For all groups of insurance contracts: Full retrospective approach | |
1993 – 2014 | For groups of insurance contracts with direct participation features and certain groups of insurance contracts without direct participation features: Fair value approach | |
For other groups of insurance contracts: Modified retrospective approach | ||
In and before 1992 | For all groups of insurance contracts: Fair value approach |
4. | Business segment information |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Sales and financial services revenue: | ||||||||||||
Game & Network Services — | ||||||||||||
Customers | 2,604,713 | 2,674,356 | 3,538,533 | |||||||||
Intersegment | 51,565 | 65,407 | 106,065 | |||||||||
Total | 2,656,278 | 2,739,763 | 3,644,598 | |||||||||
Music — | ||||||||||||
Customers | 927,250 | 1,100,532 | 1,364,815 | |||||||||
Intersegment | 12,617 | 16,417 | 15,817 | |||||||||
Total | 939,867 | 1,116,949 | 1,380,632 | |||||||||
Pictures — | ||||||||||||
Customers | 751,800 | 1,236,399 | 1,364,887 | |||||||||
Intersegment | 1,187 | 2,512 | 4,535 | |||||||||
Total | 752,987 | 1,238,911 | 1,369,422 | |||||||||
Entertainment, Technology & Services — | ||||||||||||
Customers | 2,016,887 | 2,297,886 | 2,436,739 | |||||||||
Intersegment | 51,200 | 41,300 | 39,286 | |||||||||
Total | 2,068,087 | 2,339,186 | 2,476,025 | |||||||||
Imaging & Sensing Solutions — | ||||||||||||
Customers | 937,859 | 992,200 | 1,301,481 | |||||||||
Intersegment | 74,638 | 84,224 | 100,706 | |||||||||
Total | 1,012,497 | 1,076,424 | 1,402,187 | |||||||||
Financial Services — | ||||||||||||
Customers | 1,664,991 | 1,524,811 | 1,443,996 | |||||||||
Intersegment | 9,011 | 9,018 | 10,550 | |||||||||
Total | 1,674,002 | 1,533,829 | 1,454,546 | |||||||||
All Other — | ||||||||||||
Customers | 84,202 | 82,264 | 72,338 | |||||||||
Intersegment | 16,534 | 16,519 | 15,285 | |||||||||
Total | 100,736 | 98,783 | 87,623 | |||||||||
Corporate and elimination | (205,793 | ) | (222,332 | ) | (275,196 | ) | ||||||
Consolidated total | 8,998,661 | 9,921,513 | 11,539,837 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Operating income (loss): | ||||||||||||
Game & Network Services | 341,718 | 346,089 | 250,006 | |||||||||
Music | 184,786 | 210,933 | 263,107 | |||||||||
Pictures | 79,851 | 217,393 | 119,255 | |||||||||
Entertainment, Technology & Services | 127,859 | 212,942 | 179,461 | |||||||||
Imaging & Sensing Solutions | 145,884 | 155,597 | 212,214 | |||||||||
Financial Services | 154,765 | 150,111 | 223,935 | |||||||||
All Other | 7,178 | 17,981 | 16,849 | |||||||||
Total | 1,042,041 | 1,311,046 | 1,264,827 | |||||||||
Corporate and elimination | (86,786 | ) | (108,707 | ) | (56,621 | ) | ||||||
Consolidated operating income | 955,255 | 1,202,339 | 1,208,206 | |||||||||
Financial income | 83,792 | 19,304 | 31,058 | |||||||||
Financial expenses | (41,082 | ) | (104,140 | ) | (58,951 | ) | ||||||
Consolidated income before income taxes | 997,965 | 1,117,503 | 1,180,313 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Share of profit (loss) of investments accounted for using the equity method: | ||||||||||||
Game & Network Services | — | 14 | 144 | |||||||||
Music | 570 | 4,073 | 7,063 | |||||||||
Pictures | 123 | (664 | ) | 515 | ||||||||
Entertainment, Technology & Services | 57 | 1,103 | 1,076 | |||||||||
Imaging & Sensing Solutions | (123 | ) | (603 | ) | (1,128 | ) | ||||||
Financial Services | — | — | — | |||||||||
All Other | 10,924 | 19,723 | 16,779 | |||||||||
Consolidated total | 11,551 | 23,646 | 24,449 | |||||||||
Depreciation and amortization: | ||||||||||||
Game & Network Services | 52,987 | 61,219 | 87,201 | |||||||||
Music | 46,217 | 61,465 | 67,240 | |||||||||
Pictures | 290,895 | 396,251 | 506,697 | |||||||||
Entertainment, Technology & Services | 82,174 | 91,759 | 97,448 | |||||||||
Imaging & Sensing Solutions | 159,469 | 172,842 | 196,674 | |||||||||
Financial Services, including deferred insurance acquisition costs | 68,598 | 94,169 | 110,856 | |||||||||
All Other | 7,686 | 4,300 | 4,376 | |||||||||
Total | 708,026 | 882,005 | 1,070,492 | |||||||||
Corporate | 24,085 | 22,465 | 18,621 | |||||||||
Consolidated total | 732,111 | 904,470 | 1,089,113 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Sales and financial services revenue: | ||||||||||||
Game & Network Services | ||||||||||||
Digital Software and Add-on Content | 1,454,654 | 1,424,459 | 1,523,045 | |||||||||
Network Services | 382,950 | 409,355 | 464,676 | |||||||||
Hardware and Others | 767,109 | 840,542 | 1,550,812 | |||||||||
Total | 2,604,713 | 2,674,356 | 3,538,533 | |||||||||
Music | ||||||||||||
Recorded Music — Streaming | 337,100 | 462,368 | 598,868 | |||||||||
Recorded Music — Others | 179,167 | 206,412 | 286,270 | |||||||||
Music Publishing | 156,862 | 200,334 | 276,665 | |||||||||
Visual Media and Platform | 254,121 | 231,418 | 203,012 | |||||||||
Total | 927,250 | 1,100,532 | 1,364,815 | |||||||||
Pictures | ||||||||||||
Motion Pictures | 265,301 | 518,840 | 464,043 | |||||||||
Television Productions | 267,123 | 419,494 | 536,250 | |||||||||
Media Networks | 219,376 | 298,065 | 364,594 | |||||||||
Total | 751,800 | 1,236,399 | 1,364,887 | |||||||||
Entertainment, Technology & Services | ||||||||||||
Televisions | 709,007 | 858,837 | 733,251 | |||||||||
Audio and Video | 313,975 | 326,704 | 391,608 | |||||||||
Still and Video Cameras | 338,694 | 414,898 | 565,018 | |||||||||
Mobile Communications | 358,580 | 365,864 | 356,771 | |||||||||
Other | 296,631 | 331,583 | 390,091 | |||||||||
Total | 2,016,887 | 2,297,886 | 2,436,739 | |||||||||
Imaging & Sensing Solutions | 937,859 | 992,200 | 1,301,481 | |||||||||
Financial Services | 1,664,991 | 1,524,811 | 1,443,996 | |||||||||
All Other | 84,202 | 82,264 | 72,338 | |||||||||
Corporate | 10,959 | 13,065 | 17,048 | |||||||||
Consolidated total | 8,998,661 | 9,921,513 | 11,539,837 | |||||||||
Yen in millions | ||||||||||||||||||||
March 31, 2020 | Impact of Adoption | April 1, 2020 | ||||||||||||||||||
ASU 2016-13 | ASU 2019-02 | Total | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Notes and accounts receivable, trade and contract assets | 1,028,793 | — | — | — | 1,028,793 | |||||||||||||||
Allowance for credit losses * | (25,873 | ) | (280 | ) | — | (280 | ) | (26,153 | ) | |||||||||||
Inventories | 589,969 | — | (31,517 | ) | (31,517 | ) | 558,452 | |||||||||||||
Other receivables | 188,106 | (30 | ) | — | (30 | ) | 188,076 | |||||||||||||
Prepaid expenses and other current assets | 594,021 | (12 | ) | — | (12 | ) | 594,009 | |||||||||||||
Total current assets | 5,735,145 | (322 | ) | (31,517 | ) | (31,839 | ) | 5,703,306 | ||||||||||||
Film costs | 427,336 | — | 31,517 | 31,517 | 458,853 | |||||||||||||||
Investments and advances: | ||||||||||||||||||||
Securities investments and other | 12,526,210 | 780 | — | 780 | 12,526,990 | |||||||||||||||
Allowance for credit losses | — | (6,341 | ) | — | (6,341 | ) | (6,341 | ) | ||||||||||||
Total investments and advances | 12,734,132 | (5,561 | ) | — | (5,561 | ) | 12,728,571 | |||||||||||||
Other assets: | ||||||||||||||||||||
Deferred income taxes | 210,372 | 45 | — | 45 | 210,417 | |||||||||||||||
Other | 340,005 | (721 | ) | — | (721 | ) | 339,284 | |||||||||||||
Total other assets | 3,234,086 | (676 | ) | — | (676 | ) | 3,233,410 | |||||||||||||
Total assets | 23,039,343 | (6,559 | ) | — | (6,559 | ) | 23,032,784 | |||||||||||||
LIABILITIES | ||||||||||||||||||||
Deferred income taxes | 549,538 | (1,504 | ) | — | (1,504 | ) | 548,034 | |||||||||||||
Total liabilities | 18,242,041 | (1,504 | ) | — | (1,504 | ) | 18,240,537 | |||||||||||||
EQUITY | ||||||||||||||||||||
Sony Group Corporation’s stockholders’ equity: | ||||||||||||||||||||
Retained earnings | 2,768,856 | (3,669 | ) | — | (3,669 | ) | 2,765,187 | |||||||||||||
Total Sony Group Corporation’s stockholders’ equity | 4,125,306 | (3,669 | ) | — | (3,669 | ) | 4,121,637 | |||||||||||||
Noncontrolling interests | 664,229 | (1,386 | ) | — | (1,386 | ) | 662,843 | |||||||||||||
Total equity | 4,789,535 | (5,055 | ) | — | (5,055 | ) | 4,784,480 | |||||||||||||
Total liabilities and equity | 23,039,343 | (6,559 | ) | — | (6,559 | ) | 23,032,784 | |||||||||||||
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Finished products | 345,231 | 398,478 | ||||||
Work in process | 149,969 | 133,560 | ||||||
Raw materials, purchased components and supplies | 94,769 | 105,353 | ||||||
Inventories | 589,969 | 637,391 | ||||||
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Motion picture productions: | ||||||||
Released | 99,482 | 68,302 | ||||||
Completed and not released | 18,776 | 20,148 | ||||||
In production and development | 67,199 | 141,268 | ||||||
Television productions: | ||||||||
Released | 186,344 | 126,236 | ||||||
In production and development | 25,093 | 33,712 | ||||||
Film costs for content predominantly monetized individually | 396,894 | 389,666 | ||||||
Film costs for Media Networks content*1 | 61,959 | 69,760 | ||||||
Less: current portion of broadcasting rights included in inventories *2 | (31,517 | ) | — | |||||
Film costs | 427,336 | 459,426 | ||||||
Fiscal year ending March 31 | Film costs for released content predominantly monetized individually | Film costs for Media Networks content | ||||||
2022 | 77 | % | 42 | % | ||||
2023 | 11 | % | 24 | % | ||||
2024 | 3 | % | 14 | % | ||||
Total | 91 | % | 80 | % |
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Current assets | 389,195 | 435,910 | ||||||
Noncurrent assets | 164,852 | 172,795 | ||||||
Current liabilities | 194,219 | 208,306 | ||||||
Noncurrent liabilities and noncontrolling interests | 60,469 | 61,232 | ||||||
Percentage of ownership in equity investees | 20%-50 | % | 20%-50 | % |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Net revenues | 390,457 | 387,678 | 414,934 | |||||||||
Operating income | 53,920 | 58,431 | 78,096 | |||||||||
Net income attributable to controlling interests | 5,539 | 34,916 | 46,914 | |||||||||
Percentage of ownership in equity investees | 20%-50 | % | 20%-50 | % | 20%-50 | % |
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Accounts receivable, trade | 12,030 | 5,814 | ||||||
Other receivables | 1,589 | 3,014 | ||||||
Other current assets | 9,757 | 16,097 | ||||||
Accounts payable, trade | 1,497 | 1,409 | ||||||
Short-term borrowings | 31,557 | 21,367 | ||||||
Finance lease liabilities and other | 34,564 | 48,018 | ||||||
Operating lease liabilities | 2,393 | 2,730 |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Sales | 41,437 | 35,951 | 32,372 | |||||||||
Purchases | 5,584 | 3,479 | 3,058 |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Sales and financial services revenue: | ||||||||||||
Japan | 2,965,936 | 2,764,321 | 2,691,972 | |||||||||
United States | 2,147,686 | 2,766,021 | 3,401,402 | |||||||||
Europe | 1,817,854 | 1,870,091 | 2,190,311 | |||||||||
China | 762,766 | 771,006 | 855,437 | |||||||||
Asia-Pacific | 861,623 | 1,149,261 | 1,563,414 | |||||||||
Other Areas | 442,796 | 600,813 | 837,301 | |||||||||
Total | 8,998,661 | 9,921,513 | 11,539,837 | |||||||||
Yen in millions | ||||||||||||
March 31 | ||||||||||||
2022 | 2023 | |||||||||||
Non-current assets (property, plant and equipment,right-of-use | ||||||||||||
Japan | 1,592,981 | 1,875,354 | ||||||||||
United States | 1,830,602 | 2,417,228 | ||||||||||
Europe | 565,044 | 603,338 | ||||||||||
China | 34,029 | 34,322 | ||||||||||
Asia-Pacific | 158,030 | 186,359 | ||||||||||
Other Areas | 91,001 | 107,162 | ||||||||||
Total | 4,271,687 | 5,223,763 | ||||||||||
(1) Europe: | United Kingdom, France, Germany, Russia, Spain and Italy | |
(2) Asia-Pacific: | India, South Korea, Oceania, Thailand and Malaysia | |
(3) Other Areas: | The Middle East/Africa, Brazil, Mexico and Canada |
Financial instruments |
Financial instruments by measurement method |
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2020 | March 31, 2021 | |||||||||||||||||||||||||||||||
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
Japanese national government bonds | 1,552,036 | 210,459 | (566 | ) | 1,761,929 | 2,301,995 | 159,880 | (18,609 | ) | 2,443,266 | ||||||||||||||||||||||
Japanese local government bonds | 69,132 | 73 | (33 | ) | 69,172 | 73,989 | 94 | (20 | ) | 74,063 | ||||||||||||||||||||||
Japanese corporate bonds | 202,164 | 19,112 | (567 | ) | 220,709 | 259,932 | 13,356 | (1,475 | ) | 271,813 | ||||||||||||||||||||||
Foreign government bonds | 198,777 | 81,014 | (14 | ) | 279,777 | 323,557 | 23,118 | (20,819 | ) | 325,856 | ||||||||||||||||||||||
Foreign corporate bonds | 361,422 | 507 | (2,179 | ) | 359,750 | 382,231 | 1,102 | (459 | ) | 382,874 | ||||||||||||||||||||||
Securitized products | 205,223 | 0 | — | 205,223 | 198,593 | — | — | 198,593 | ||||||||||||||||||||||||
Other | 14,398 | 1,867 | (12 | ) | 16,253 | 42,469 | 3,492 | (140 | ) | 45,821 | ||||||||||||||||||||||
2,603,152 | 313,032 | (3,371 | ) | 2,912,813 | 3,582,766 | 201,042 | (41,522 | ) | 3,742,286 | |||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Japanese national government bonds | 6,204,505 | 2,098,885 | (1,397 | ) | 8,301,993 | 6,244,125 | 1,650,057 | (13,390 | ) | 7,880,792 | ||||||||||||||||||||||
Japanese local government bonds | 2,504 | 331 | — | 2,835 | 1,716 | 294 | — | 2,010 | ||||||||||||||||||||||||
Japanese corporate bonds | 482,050 | 61,176 | (4,754 | ) | 538,472 | 543,870 | 36,071 | (14,919 | ) | 565,022 | ||||||||||||||||||||||
Foreign government bonds | 723,937 | 302,297 | — | 1,026,234 | 850,740 | 51,494 | (25,277 | ) | 876,957 | |||||||||||||||||||||||
Foreign corporate bonds | 98 | 7 | — | 105 | 27,392 | 572 | (109 | ) | 27,855 | |||||||||||||||||||||||
Securitized products | 5,418 | — | (421 | ) | 4,997 | 69,062 | 65 | (4 | ) | 69,123 | ||||||||||||||||||||||
7,418,512 | 2,462,696 | (6,572 | ) | 9,874,636 | 7,736,905 | 1,738,553 | (53,699 | ) | 9,421,759 | |||||||||||||||||||||||
Total | 10,021,664 | 2,775,728 | (9,943 | ) | 12,787,449 | 11,319,671 | 1,939,595 | (95,221 | ) | 13,164,045 | ||||||||||||||||||||||
Yen in millions | ||||||||||||||||
March 31, 2021 | ||||||||||||||||
Available-for-sale | Held-to-maturity | |||||||||||||||
Cost | Fair value | Cost | Fair value | |||||||||||||
Due in one year or less | 568,574 | 568,625 | 6,680 | 6,757 | ||||||||||||
Due after one year through five years | 419,311 | 434,470 | 288,952 | 307,127 | ||||||||||||
Due after five years through ten years | 650,929 | 725,747 | 252,897 | 284,725 | ||||||||||||
Due after ten years | 1,943,952 | 2,013,444 | 7,188,376 | 8,823,150 | ||||||||||||
Total | 3,582,766 | 3,742,286 | 7,736,905 | 9,421,759 | ||||||||||||
Yen in millions | ||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Japanese national government bonds | 51,746 | (539 | ) | 2,032 | (27 | ) | 53,778 | (566 | ) | |||||||||||||||
Japanese local government bonds | 25,010 | (10 | ) | 16,340 | (23 | ) | 41,350 | (33 | ) | |||||||||||||||
Japanese corporate bonds | 62,118 | (548 | ) | 10,694 | (19 | ) | 72,812 | (567 | ) | |||||||||||||||
Foreign government bonds | — | — | 1,537 | (14 | ) | 1,537 | (14 | ) | ||||||||||||||||
Foreign corporate bonds | 86,220 | (2,133 | ) | 18,896 | (46 | ) | 105,116 | (2,179 | ) | |||||||||||||||
Securitized products | — | — | — | — | — | — | ||||||||||||||||||
Other | 12,055 | (12 | ) | — | — | 12,055 | (12 | ) | ||||||||||||||||
Total | 237,149 | (3,242 | ) | 49,499 | (129 | ) | 286,648 | (3,371 | ) | |||||||||||||||
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Assets: | ||||||||
Financial assets required to be measured at amortized cost (“AC”) | ||||||||
Investments and advances in the Financial Services segment | ||||||||
Debt securities | 358,238 | 422,025 | ||||||
Housing loans in the banking business | 2,752,985 | 3,129,393 | ||||||
Other loans | 230,516 | 229,666 | ||||||
Trade and other receivables * | ||||||||
Trade receivables | 1,617,323 | 1,761,025 | ||||||
Other receivables | 2,736 | 2,712 | ||||||
Other financial assets | ||||||||
Time deposit | 39,223 | 36,671 | ||||||
Security deposit | 121,856 | 95,813 | ||||||
Non-current other receivables in the Pictures segment | 166,279 | 152,619 | ||||||
Other | 16,425 | 19,582 | ||||||
Financial assets required to be measured at fair value through profit or loss (“FVPL”) | ||||||||
Investments and advances in the Financial Services segment | ||||||||
Debt securities | 1,012,057 | 1,059,718 | ||||||
Equity securities | 1,798,536 | 2,123,062 | ||||||
Other financial assets | ||||||||
Debt securities | 16,013 | 20,905 | ||||||
Equity securities | 120,274 | 125,590 | ||||||
Derivative assets | 61,023 | 70,144 | ||||||
Financial assets designated to be measured at FVPL | ||||||||
Investments and advances in the Financial Services segment | ||||||||
Debt securities | 267,169 | 188,906 | ||||||
Financial assets required to be measured at fair value through other comprehensive income (“FVOCI”) | ||||||||
Investments and advances in the Financial Services segment | ||||||||
Debt securities | 12,378,244 | 11,615,862 | ||||||
Other financial assets | ||||||||
Debt securities | 522 | 125 | ||||||
Financial assets designated to be measured at FVOCI | ||||||||
Investments and advances in the Financial Services segment | ||||||||
Equity securities | 8,016 | 5,453 | ||||||
Other financial assets | ||||||||
Equity securities | 303,992 | 421,845 | ||||||
Total assets | 21,271,427 | 21,481,116 | ||||||
Current assets | 2,130,033 | 2,203,044 | ||||||
Non-current assets | 19,141,394 | 19,278,072 |
* | The amounts of trade and other receivables exclude contract assets within trade and other receivables, and contract assets in the consolidated statements of financial position. |
Yen in millions | ||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Japanese national government bonds | 485,941 | (18,418 | ) | 29,424 | (191 | ) | 515,365 | (18,609 | ) | |||||||||||||||
Japanese local government bonds | 20,421 | (8 | ) | 15,256 | (12 | ) | 35,677 | (20 | ) | |||||||||||||||
Japanese corporate bonds | 73,238 | (925 | ) | 42,310 | (550 | ) | 115,548 | (1,475 | ) | |||||||||||||||
Foreign government bonds | 128,085 | (20,800 | ) | 1,522 | (19 | ) | 129,607 | (20,819 | ) | |||||||||||||||
Foreign corporate bonds | 29,651 | (302 | ) | 12,026 | (157 | ) | 41,677 | (459 | ) | |||||||||||||||
Securitized products | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,162 | (140 | ) | — | — | 1,162 | (140 | ) | ||||||||||||||||
Total | 738,498 | (40,593 | ) | 100,538 | (929 | ) | 839,036 | (41,522 | ) | |||||||||||||||
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Debt securities: | ||||||||
Held-to-maturity | ||||||||
AAA | 5,516 | 69,161 | ||||||
AA | 1,193,053 | 1,465,168 | ||||||
A | 6,219,943 | 6,202,576 | ||||||
BBB | — | — | ||||||
Other | — | — | ||||||
Total | 7,418,512 | 7,736,905 | ||||||
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Liabilities: | ||||||||
Financial liabilities required to be measured at AC | ||||||||
Short-term borrowings | 1,976,553 | 1,914,934 | ||||||
Current portion of long-term debt | 171,409 | 187,942 | ||||||
Trade and other payables | ||||||||
Trade payables | 1,716,316 | 1,701,598 | ||||||
Other payables | 126,926 | 162,475 | ||||||
Deposits from customers in the banking business *1 | 3,004,215 | 3,306,981 | ||||||
Long-term debt | 1,203,646 | 1,767,696 | ||||||
Deferred consideration *2 | — | 87,937 | ||||||
Other financial liabilities | 63,281 | 61,128 | ||||||
Financial liabilities required to be measured at FVPL | ||||||||
Other financial liabilities | ||||||||
Derivative liabilities | 72,120 | 34,123 | ||||||
Contingent consideration | 21,552 | 51,512 | ||||||
Financial liabilities designated to be measured at FVPL | ||||||||
Other financial liabilities | ||||||||
Redeemable noncontrolling interests | 34,995 | 47,326 | ||||||
Total liabilities | 8,391,013 | 9,323,652 | ||||||
Current liabilities | 6,975,408 | 7,205,678 | ||||||
Non-current liabilities | 1,415,605 | 2,117,974 |
*1 | Deposits from customers in the banking business include the |
*2 |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2020 | 2021 | |||||||
Finance Lease cost | ||||||||
Amortization of right-of-use | 10,077 | 7,795 | ||||||
Interest on lease liabilities | 1,266 | 863 | ||||||
Total finance lease cost | 11,343 | 8,658 | ||||||
Operating lease cost | 76,863 | 80,309 | ||||||
Short-term lease cost | 20,620 | 17,805 | ||||||
Variable lease cost | 141 | 108 | ||||||
Sublease income | (3,860 | ) | (2,256 | ) | ||||
Total lease cost | 105,107 | 104,624 | ||||||
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Finance leases | ||||||||
Current portion of long-term debt | 9,240 | 7,382 | ||||||
Long-term debt | 29,843 | 43,684 | ||||||
Total finance lease liabilities | 39,083 | 51,066 | ||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Weighted average remaining lease term | ||||||||
Operating leases | 8.61 years | 8.08 years | ||||||
Finance leases | 9.91 years | 16.85 years | ||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Weighted average discount rate | ||||||||
Operating leases | 2.338 | % | 2.119 | % | ||||
Finance leases | 3.147 | % | 1.776 | % |
Yen in millions | ||||||||
Fiscal year ending March 31 | Operating leases | Finance leases | ||||||
2022 | 79,980 | 8,309 | ||||||
2023 | 65,595 | 6,909 | ||||||
2024 | 55,127 | 5,067 | ||||||
2025 | 36,893 | 4,306 | ||||||
2026 | 29,850 | 2,941 | ||||||
Later fiscal years | 130,838 | 33,869 | ||||||
Total lease payments | 398,283 | 61,401 | ||||||
Less imputed interest | 34,662 | 10,335 | ||||||
Total | 363,621 | 51,066 | ||||||
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2020 | 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Payments for operating leases, included in cash flows from operating activities | 71,612 | 75,907 | ||||||
Payments for finance leases, included in cash flows from financing activities | 33,088 | 9,311 | ||||||
Right-of-use | 124,380 | 46,710 |
Intangible assets acquired during the fiscal year | Weighted-average amortization period | |||||||
Yen in millions | Years | |||||||
Patent rights, know-how and license agreements | 14,131 | 5 | ||||||
Software to be sold, leased or otherwise marketed | 17,255 | 3 | ||||||
Internal-use software | 87,788 | 5 | ||||||
Music catalogs | 61,341 | 19 | ||||||
Other | 7,081 | 3 |
Yen in millions | ||||||||||||||||
March 31, 2020 | March 31, 2021 | |||||||||||||||
Gross carrying amount | Accumulated amortization | Gross carrying amount | Accumulated amortization | |||||||||||||
Patent rights, know-how and license agreements | 173,800 | (154,772 | ) | 180,379 | (143,448 | ) | ||||||||||
Customer relationships | 16,104 | (12,467 | ) | 18,681 | (13,962 | ) | ||||||||||
Trademarks | 11,115 | (6,079 | ) | 11,177 | (6,394 | ) | ||||||||||
Software to be sold, leased or otherwise marketed | 141,111 | (110,663 | ) | 156,820 | (124,819 | ) | ||||||||||
Internal-use software | 594,109 | (384,236 | ) | 660,133 | (437,438 | ) | ||||||||||
Music catalogs | 612,266 | (124,787 | ) | 708,320 | (151,568 | ) | ||||||||||
Artist contracts | 41,764 | (29,017 | ) | 42,902 | (30,425 | ) | ||||||||||
Television carriage contracts (broadcasting agreements) | 53,266 | (21,645 | ) | 55,752 | (27,162 | ) | ||||||||||
Other | 56,769 | (42,631 | ) | 63,102 | (57,001 | ) | ||||||||||
Total | 1,700,304 | (886,297 | ) | 1,897,266 | (992,217 | ) | ||||||||||
Fiscal year ending March 31 | Yen in millions | |||
2022 | 102,884 | |||
2023 | 88,057 | |||
2024 | 66,244 | |||
2025 | 48,197 | |||
2026 | 33,799 |
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Trademarks | 69,975 | 70,265 | ||||||
Distribution agreements | 18,834 | 18,834 | ||||||
Other | 3,494 | 2,157 | ||||||
Total | 92,303 | 91,256 | ||||||
G&NS | Music | Pictures | EP&S | I&SS | Financial Services | All Other | Total | |||||||||||||||||||||||||
Balance, March 31, 2019: | ||||||||||||||||||||||||||||||||
Goodwill — gross | 153,955 | 403,676 | 252,262 | 194,416 | 46,564 | 7,931 | 28,570 | 1,087,374 | ||||||||||||||||||||||||
Accumulated impairments | — | (306 | ) | (106,778 | ) | (182,462 | ) | — | (706 | ) | (28,570 | ) | (318,822 | ) | ||||||||||||||||||
Goodwill | 153,955 | 403,370 | 145,484 | 11,954 | 46,564 | 7,225 | — | 768,552 | ||||||||||||||||||||||||
Increase (decrease) due to: | ||||||||||||||||||||||||||||||||
Acquisitions | 17,945 | 2,956 | 14,889 | 364 | — | 3,609 | — | 39,763 | ||||||||||||||||||||||||
Sales and dispositions | — | — | (609 | ) | — | — | — | — | (609 | ) | ||||||||||||||||||||||
Impairments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Translation adjustments | (926 | ) | (13,802 | ) | (5,410 | ) | (129 | ) | (372 | ) | — | — | (20,639 | ) | ||||||||||||||||||
Other | — | (1,199 | ) | (1,980 | ) | — | — | — | — | (3,179 | ) | |||||||||||||||||||||
Balance, March 31, 2020: | ||||||||||||||||||||||||||||||||
Goodwill — gross | 170,974 | 391,631 | 257,074 | 194,635 | 46,192 | 11,540 | 28,269 | 1,100,315 | ||||||||||||||||||||||||
Accumulated impairments | — | (306 | ) | (104,700 | ) | (182,446 | ) | — | (706 | ) | (28,269 | ) | (316,427 | ) | ||||||||||||||||||
Goodwill | 170,974 | 391,325 | 152,374 | 12,189 | 46,192 | 10,834 | — | 783,888 | ||||||||||||||||||||||||
Increase (decrease) due to: | ||||||||||||||||||||||||||||||||
Acquisitions | — | 1,791 | 13,007 | 5,156 | — | — | — | 19,954 | ||||||||||||||||||||||||
Sales and dispositions | — | (902 | ) | (392 | ) | — | — | — | — | (1,294 | ) | |||||||||||||||||||||
Impairments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Translation adjustments | 1,386 | 16,609 | 6,026 | 267 | 318 | — | — | 24,606 | ||||||||||||||||||||||||
Other | — | — | 1,467 | (1,472 | ) | — | — | — | (5 | ) | ||||||||||||||||||||||
Balance, March 31, 2021: | ||||||||||||||||||||||||||||||||
Goodwill — gross | 172,360 | 409,129 | 278,991 | 198,600 | 46,510 | 11,540 | 28,526 | 1,145,656 | ||||||||||||||||||||||||
Accumulated impairments | — | (306 | ) | (106,509 | ) | (182,460 | ) | — | (706 | ) | (28,526 | ) | (318,507 | ) | ||||||||||||||||||
Goodwill | 172,360 | 408,823 | 172,482 | 16,140 | 46,510 | 10,834 | — | 827,149 | ||||||||||||||||||||||||
(2) |
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Universal life insurance | 2,611,577 | 3,067,791 | ||||||
Investment contracts | 885,690 | 1,103,785 | ||||||
Other | 145,004 | 159,489 | ||||||
Total | 3,642,271 | 4,331,065 | ||||||
Yen in millions | ||||||||||||
March 31, 2020 | ||||||||||||
Variable annuities | Variable life insurance contracts | Total | ||||||||||
Policyholders’ account value | 464,093 | 1,096,935 | 1,561,028 | |||||||||
Net amount at risk | 71,685 | 4,564,214 | 4,635,899 | |||||||||
Liability for minimum guarantee benefit | 64,045 | 79,860 | 143,905 |
Age | ||||||||
March 31 2020 | ||||||||
Variable annuities | Variable life insurance contracts | |||||||
Average attained age | 60 | 45 |
Yen in millions | ||||||||||||
March 31, 2021 | ||||||||||||
Variable annuities | Variable life insurance contracts | Total | ||||||||||
Policyholders’ account value | 490,152 | 1,486,001 | 1,976,153 | |||||||||
Net amount at risk | 50,861 | 5,074,637 | 5,125,498 | |||||||||
Liability for minimum guarantee benefit | 42,309 | 58,246 | 100,555 |
Age | ||||||||
March 31 2021 | ||||||||
Variable annuities | Variable life insurance contracts | |||||||
Average attained age | 61 | 45 |
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Unsecured loans: | ||||||||
with a weighted-average interest rate of 0.86% | 91,725 | |||||||
with a weighted-average interest rate of 0.77% | 58,659 | |||||||
Repurchase agreement: | ||||||||
with a weighted-average interest rate of 0.93% | 567,194 | |||||||
with a weighted-average interest rate of 0.06% | 917,792 | |||||||
Call money: | ||||||||
with a weighted-average interest rate of 0.13% | 151,257 | |||||||
with a weighted-average interest rate of -0.03% | 211,417 | |||||||
810,176 | 1,187,868 | |||||||
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Unsecured loans, representing obligations principally to banks: | ||||||||
Due 2020 to 2029, with interest rates ranging from 0.01 % to 5.10 % per annum | 17,880 | |||||||
Due 2021 to 2030, with interest rates ranging from 0.01 % to 5.10 % per annum | 238,196 | |||||||
Unsecured 0.23% bonds, due 2021 | 89,894 | 89,969 | ||||||
Unsecured 0.11% bonds, due 2022 | 10,000 | 10,000 | ||||||
Unsecured 1.41% bonds, due 2022 | 10,000 | 10,000 | ||||||
Unsecured 0.28% bonds, due 2023 | 15,000 | 15,000 | ||||||
Unsecured 0.13% bonds, due 2024 | 29,886 | 29,911 | ||||||
Unsecured 0.15% bonds, due 2024 | 9,971 | |||||||
Unsecured 0.22% bonds, due 2025 | 10,000 | 10,000 | ||||||
Unsecured 0.18% bonds, due 2026 | 10,000 | 10,000 | ||||||
Unsecured 0.20% bonds, due 2026 | 19,943 | |||||||
Unsecured 0.42% bonds, due 2026 | 24,923 | 24,935 | ||||||
Unsecured 0.30% bonds, due 2029 | 59,738 | 59,760 | ||||||
Unsecured zero coupon convertible bonds, due 2022: | ||||||||
Conversion price 4,996.0 yen per common share | 119,531 | |||||||
Conversion price 4,982.5 yen per common share | 41,189 | |||||||
Secured 0.00% loans, due 2022 to 2023 | 201,205 | |||||||
Secured 0.00% loans, due 2021 to 2026 | 240,019 | |||||||
Finance lease liabilities and other: | ||||||||
Due 2020 to 2050, with interest rates ranging from 0.01% to 12.59% per annum | 56,350 | |||||||
Due 2021 to 2051, with interest rates ranging from 0.01% to 5.45% per annum | 85,564 | |||||||
Guarantee deposits received | 10,366 | 10,536 | ||||||
664,773 | 904,993 | |||||||
Less — Portion due within one year | 29,807 | 131,699 | ||||||
634,966 | 773,294 | |||||||
Fiscal year ending March 31 | Yen in millions | |||
2022 | 131,699 | |||
2023 | 106,626 | |||
2024 | 95,016 | |||
2025 | 188,572 | |||
2026 | 26,867 | |||
Later fiscal years | 356,213 | |||
Total | 904,993 | |||
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||
Amortized Cost by Origination Year | ||||||||||||||||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||||
Housing loans by the credit ratings of debtors: | ||||||||||||||||||||||||||||
Normal* | 547,133 | 349,334 | 252,609 | 158,546 | 269,450 | 772,072 | 2,349,144 | |||||||||||||||||||||
Other than normal | 212 | 136 | 358 | 265 | 218 | 4,213 | 5,402 | |||||||||||||||||||||
Total assets | 547,345 | 349,470 | 252,967 | 158,811 | 269,668 | 776,285 | 2,354,546 | |||||||||||||||||||||
Fiscal year ending March 31 | Yen in millions | |||
2023 | 36,586 | |||
2024 | 19,643 | |||
2025 | 3,135 | |||
2026 | 3,159 | |||
2027 | 400 | |||
Later fiscal years | 28,805 | |||
Total | 91,728 | |||
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Investments and advances in the Financial Services segment (Current) | Other financial assets (Current) | Investments and advances in the Financial Services segment (Non-current) | Other financial assets (Non-current) | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Japanese national government bonds | — | 368,273 | — | 368,273 | — | — | 368,273 | — | ||||||||||||||||||||||||
Japanese local government bonds | — | 600 | — | 600 | — | — | 600 | — | ||||||||||||||||||||||||
Japanese corporate bonds | — | 15,350 | 18 | 15,368 | — | — | 15,317 | 51 | ||||||||||||||||||||||||
Foreign government bonds | 29,237 | 185,238 | — | 214,475 | — | — | 214,475 | — | ||||||||||||||||||||||||
Foreign corporate bonds | — | — | 117 | 117 | — | — | — | 117 | ||||||||||||||||||||||||
Securitized products | — | — | 3,713 | 3,713 | — | — | 3,713 | — | ||||||||||||||||||||||||
Investment funds | — | 377,004 | 48,520 | 425,524 | 3 | — | 409,676 | 15,845 | ||||||||||||||||||||||||
Equity securities | 1,906,244 | 9,349 | 3,217 | 1,918,810 | — | — | 1,798,536 | 120,274 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Interest rate contracts | — | 26,795 | — | 26,795 | — | 32 | — | 26,763 | ||||||||||||||||||||||||
Foreign exchange contracts | — | 30,204 | — | 30,204 | — | 28,147 | — | 2,057 | ||||||||||||||||||||||||
Equity contracts | — | — | 4,024 | 4,024 | — | 3,669 | — | 355 | ||||||||||||||||||||||||
Financial assets designated to be measured at FVPL | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Japanese national government bonds | — | 48,711 | — | 48,711 | 4,002 | — | 44,709 | — | ||||||||||||||||||||||||
Japanese local government bonds | — | 26,612 | — | 26,612 | 5,315 | — | 21,297 | — | ||||||||||||||||||||||||
Japanese corporate bonds | — | 7,228 | — | 7,228 | 3,907 | — | 3,321 | — | ||||||||||||||||||||||||
Foreign government bonds | — | 17,598 | — | 17,598 | 1,466 | — | 16,132 | — | ||||||||||||||||||||||||
Foreign corporate bonds | — | 163,395 | 3,625 | 167,020 | 33,690 | — | 133,330 | — | ||||||||||||||||||||||||
Financial assets required to be measured at FVOCI | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Japanese national government bonds | — | 9,667,158 | — | 9,667,158 | — | — | 9,667,158 | — | ||||||||||||||||||||||||
Japanese local government bonds | — | 36,369 | — | 36,369 | 12,435 | — | 23,934 | — | ||||||||||||||||||||||||
Japanese corporate bonds | — | 746,223 | 154,245 | 900,468 | 10,257 | — | 890,211 | — | ||||||||||||||||||||||||
Foreign government bonds | — | 1,353,394 | — | 1,353,394 | — | — | 1,353,277 | 117 | ||||||||||||||||||||||||
Foreign corporate bonds | — | 318,699 | 20,837 | 339,536 | 65,000 | — | 274,131 | 405 | ||||||||||||||||||||||||
Securitized products | — | 41,982 | 39,859 | 81,841 | — | — | 81,841 | — | ||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI | ||||||||||||||||||||||||||||||||
Equity securities | 106,499 | — | 205,509 | 312,008 | — | — | 8,016 | 303,992 | ||||||||||||||||||||||||
Total assets | 2,041,980 | 13,440,182 | 483,684 | 15,965,846 | 136,075 | 31,848 | 15,327,947 | 469,976 | ||||||||||||||||||||||||
Presentation in the consolidated statements of financial position | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Other financial liabilities (Current) | Other financial liabilities (Non-current) | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL | ||||||||||||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||||
Interest rate contracts | — | 7,530 | — | 7,530 | 471 | 7,059 | ||||||||||||||||||||||||||
Foreign exchange contracts | — | 36,582 | — | 36,582 | 36,582 | — | ||||||||||||||||||||||||||
Equity contracts | 11,903 | 16,105 | — | 28,008 | 28,008 | — | ||||||||||||||||||||||||||
Contingent consideration | — | — | 21,552 | 21,552 | 1,475 | 20,077 | ||||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL | ||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | 34,995 | 34,995 | 2,435 | 32,560 | ||||||||||||||||||||||||||
Total liabilities | 11,903 | 60,217 | 56,547 | 128,667 | 68,971 | 59,696 | ||||||||||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Investments and advances in the Financial Services segment (Current) | Other financial assets (Current) | Investments and advances in the Financial Services segment (Non-current) | Other financial assets (Non-current) | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Japanese national government bonds | — | 422,739 | — | 422,739 | — | — | 422,739 | — | ||||||||||||||||||||||||
Japanese local government bonds | — | 600 | — | 600 | — | — | 600 | — | ||||||||||||||||||||||||
Japanese corporate bonds | — | 16,872 | 38 | 16,910 | — | — | 16,872 | 38 | ||||||||||||||||||||||||
Foreign government bonds | 30,100 | 173,393 | — | 203,493 | — | — | 203,493 | — | ||||||||||||||||||||||||
Foreign corporate bonds | — | 5,515 | 3,377 | 8,892 | — | — | 5,515 | 3,377 | ||||||||||||||||||||||||
Securitized products | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Investment funds | — | 367,193 | 60,796 | 427,989 | — | — | 410,499 | 17,490 | ||||||||||||||||||||||||
Equity securities | 2,236,646 | 5,217 | 6,789 | 2,248,652 | — | — | 2,123,062 | 125,590 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Interest rate contracts | — | 43,844 | — | 43,844 | — | 438 | — | 43,406 | ||||||||||||||||||||||||
Foreign exchange contracts | — | 21,318 | — | 21,318 | — | 19,978 | — | 1,340 | ||||||||||||||||||||||||
Equity contracts | 290 | — | 4,692 | 4,982 | — | 4,982 | — | — | ||||||||||||||||||||||||
Financial assets designated to be measured at FVPL | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Japanese national government bonds | — | 8,830 | — | 8,830 | 1,001 | — | 7,829 | — | ||||||||||||||||||||||||
Japanese local government bonds | — | 16,038 | — | 16,038 | 2,010 | — | 14,028 | — | ||||||||||||||||||||||||
Japanese corporate bonds | — | 3,315 | — | 3,315 | — | — | 3,315 | — | ||||||||||||||||||||||||
Foreign government bonds | — | 15,325 | — | 15,325 | — | — | 15,325 | — | ||||||||||||||||||||||||
Foreign corporate bonds | — | 141,857 | 3,541 | 145,398 | 21,227 | — | 124,171 | — | ||||||||||||||||||||||||
Financial assets required to be measured at FVOCI | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Japanese national government bonds | — | 9,095,550 | — | 9,095,550 | — | — | 9,095,550 | — | ||||||||||||||||||||||||
Japanese local government bonds | — | 43,655 | — | 43,655 | 1,369 | — | 42,286 | — | ||||||||||||||||||||||||
Japanese corporate bonds | — | 736,204 | 171,622 | 907,826 | 6,815 | — | 901,011 | — | ||||||||||||||||||||||||
Foreign government bonds | — | 1,166,279 | — | 1,166,279 | — | — | 1,166,154 | 125 | ||||||||||||||||||||||||
Foreign corporate bonds | — | 307,717 | 24,672 | 332,389 | 46,367 | — | 286,022 | — | ||||||||||||||||||||||||
Securitized products | — | 29,697 | 40,591 | 70,288 | — | — | 70,288 | — | ||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI | ||||||||||||||||||||||||||||||||
Equity securities | 103,270 | — | 324,028 | 427,298 | — | — | 5,453 | 421,845 | ||||||||||||||||||||||||
Total assets | 2,370,306 | 12,621,158 | 640,146 | 15,631,610 | 78,789 | 25,398 | 14,914,212 | 613,211 | ||||||||||||||||||||||||
Presentation in the consolidated statements of financial position | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Other financial liabilities (Current) | Other financial liabilities (Non-current) | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL | ||||||||||||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||||
Interest rate contracts | — | 5,656 | — | 5,656 | 427 | 5,229 | ||||||||||||||||||||||||||
Foreign exchange contracts | — | 19,876 | — | 19,876 | 18,679 | 1,197 | ||||||||||||||||||||||||||
Equity contracts | 3,321 | 5,270 | — | 8,591 | 8,591 | — | ||||||||||||||||||||||||||
Contingent consideration | — | — | 51,512 | 51,512 | 14,790 | 36,722 | ||||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL | ||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | 47,326 | 47,326 | — | 47,326 | ||||||||||||||||||||||||||
Total liabilities | 3,321 | 30,802 | 98,838 | 132,961 | 42,487 | 90,474 | ||||||||||||||||||||||||||
Valuation technique(s) | Significant unobservable inputs | Range | ||||||||||||||
March 31, 2022 | March 31, 2023 | |||||||||||||||
Financial assets required to be measured at FVOCI | ||||||||||||||||
Debt securities | ||||||||||||||||
Japanese corporate bonds | Discounted cash flow | | Credit spread * | 26bp-67bp | 34bp-63bp | |||||||||||
Foreign corporate bonds | 0bp-170bp | 10bp | ||||||||||||||
Securitized products | 100bp-160bp | 150bp-190bp |
* | bp = basis point |
Yen in millions | ||||||||||||||||||||||||||||||||||||
Fiscal year ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) *1 | ||||||||||||||||||||||||||||||||||||
Beginning balance | Net income *2 | Other comprehensive income *3 | Purchases | Sales and settlements | Transfers into Level 3 *4 | Transfers out of Level 3 *5 | Other | Ending balance | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
Japanese corporate bonds | 62 | — | — | 20 | — | — | (34 | ) | (30 | ) | 18 | |||||||||||||||||||||||||
Foreign corporate bonds | 213 | 5 | — | 10 | — | — | — | (111 | ) | 117 | ||||||||||||||||||||||||||
Securitized products | 6,142 | — | — | — | (2,429 | ) | — | — | — | 3,713 | ||||||||||||||||||||||||||
Investment funds | 37,254 | 5,678 | 394 | 22,079 | (16,885 | ) | — | — | — | 48,520 | ||||||||||||||||||||||||||
Equity securities | 3,172 | (395 | ) | (15 | ) | 477 | (22 | ) | — | — | — | 3,217 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||||||
Equity contracts | 10,176 | (6,629 | ) | 477 | — | — | — | — | — | 4,024 | ||||||||||||||||||||||||||
Financial assets designated to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
Foreign corporate bonds | — | 337 | — | — | — | 3,288 | — | — | 3,625 | |||||||||||||||||||||||||||
Financial assets required to be measured at FVOCI | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
Japanese corporate bonds | 93,288 | (1 | ) | (13,006 | ) | 73,964 | — | — | — | — | 154,245 | |||||||||||||||||||||||||
Foreign corporate bonds | 18,066 | 700 | (5 | ) | 12,000 | (9,868 | ) | — | — | (56 | ) | 20,837 | ||||||||||||||||||||||||
Securitized products | 9,402 | 279 | (82 | ) | 41,763 | (10,625 | ) | 3,166 | (4,044 | ) | — | 39,859 | ||||||||||||||||||||||||
Financial assets designated to be me asured a t FVOCI | ||||||||||||||||||||||||||||||||||||
Equity securities | 104,541 | — | 25,614 | 89,274 | (5,825 | ) | 63 | (7,884 | ) | (274 | ) | 205,509 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Contingent consideration | 6,161 | 297 | 1,645 | 15,221 | (1,762 | ) | — | — | (10 | ) | 21,552 | |||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | 8,179 | 2,008 | 2,978 | 27,240 | (5,285 | ) | — | — | (125 | ) | 34,995 |
Yen in millions | ||||||||||||||||||||||||||||||||||||
Fiscal year ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) *1 | ||||||||||||||||||||||||||||||||||||
Beginning balance | Net income *2 | Other comprehensive income *3 | Purchases | Sales and settlements | Transfers to Level 3 *4 | Transfers out of Level 3 *5 | Other | Ending balance | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
Japanese corporate bonds | 18 | — | — | 20 | — | — | — | — | 38 | |||||||||||||||||||||||||||
Foreign corporate bonds | 117 | (14 | ) | — | 3,434 | (70 | ) | — | — | (90 | ) | 3,377 | ||||||||||||||||||||||||
Securitized products | 3,713 | — | — | — | (3,713 | ) | — | — | — | — | ||||||||||||||||||||||||||
Investment funds | 48,520 | (2,541 | ) | 395 | 17,254 | (2,832 | ) | — | — | — | 60,796 | |||||||||||||||||||||||||
Equity securities | 3,217 | (413 | ) | — | 4,021 | (36 | ) | — | — | — | 6,789 | |||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||||||
Equity contracts | 4,024 | (393 | ) | 356 | 705 | — | — | — | — | 4,692 | ||||||||||||||||||||||||||
Financial assets designated to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
Foreign corporate bonds | 3,625 | (84 | ) | — | — | — | — | — | — | 3,541 | ||||||||||||||||||||||||||
Financial assets required to be measured at FVOCI | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
Japanese corporate bonds | 154,245 | 6 | (30,203 | ) | 47,574 | — | — | — | — | 171,622 | ||||||||||||||||||||||||||
Foreign corporate bonds | 20,837 | 598 | — | 24,362 | (21,125 | ) | — | — | — | 24,672 | ||||||||||||||||||||||||||
Securitized products | 39,859 | (389 | ) | 6 | 13,575 | (15,048 | ) | 6,712 | (4,124 | ) | — | 40,591 | ||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI | ||||||||||||||||||||||||||||||||||||
Equity securities | 205,509 | — | (24,913 | ) | 143,611 | (126 | ) | 146 | (600 | ) | 401 | 324,028 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Contingent consideration | 21,552 | (475 | ) | 1,240 | 43,455 | (13,951 | ) | — | — | (309 | ) | 51,512 | ||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL | ||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | 34,995 | (1,410 | ) | 2,877 | 13,670 | (2,802 | ) | — | — | (4 | ) | 47,326 |
*1 | For liability items, gains are presented as negative and losses are presented as positive. |
*2 | Gains (losses) recognized in net income are includ ed in financ ial services revenue, other operating (income) expense, net, financial income and financial expenses in the consolidated statements of income. |
*3 | Gains (losses) recognized in other comprehensive income are included in changes in equity instruments measured at fair value through other comprehensive income, changes in debt instruments measured at fair value through other comprehensive income and exchange differences on translating foreign operations in the consolidated statements of comprehensive income. |
*4 | Certain fi assets were transferred to Level 3 because the observability of the inputs used decreased.nancial |
*5 | Certain financial assets were transferred from Level 3 because observable market data became available. |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Assets: | ||||||||
Financial assets required to be measured at FVPL | ||||||||
Debt securities | ||||||||
Foreign corporate bonds | 5 | (14 | ) | |||||
Investment funds | 4,562 | (2,420 | ) | |||||
Equity securities | 98 | (413 | ) | |||||
Derivative assets | ||||||||
Equity contracts | (6,629 | ) | (393 | ) | ||||
Financial assets designated to be measured at FVPL | ||||||||
Debt securities | ||||||||
Foreign corporate bonds | 337 | (84 | ) | |||||
Financial assets required to be measured at FVOCI | ||||||||
Debt securities | ||||||||
Japanese corporate bonds | — | 6 | ||||||
Foreign corporate bonds | 700 | 598 | ||||||
Securitized products | 238 | (389 | ) | |||||
Liabilities: | ||||||||
Financial liabilities required to be measured at FVPL | ||||||||
Contingent consideration | (513 | ) | (2,683 | ) | ||||
Financial liabilities designated to be measured at FVPL | ||||||||
Redeemable noncontrolling interests | (1,878 | ) | 1,410 |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Marketable equity instruments | 106,499 | 103,270 | ||||||
Non-marketable equity instruments | 205,509 | 324,028 | ||||||
Total | 312,008 | 427,298 | ||||||
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Bilibili Inc. | 54,162 | 54,214 | ||||||
Toei Animation Co., Ltd. | 8,371 | 10,407 | ||||||
ANYCOLOR Inc. | — | 10,061 | ||||||
KADOKAWA Corporation | 9,161 | 8,017 |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Entertainment *1 | 148,283 | 259,214 | ||||||
Manufacturing *2 | 35,406 | 35,182 | ||||||
Information technology, Communication and Service *3 | 20,327 | 27,136 |
*1 | Major investments included Epic Games, Inc. and Scopely, Inc. |
*2 | Major investments included Nichia Corporation. |
*3 | Major investments included Semiconductor Energy Laboratory Co., Ltd. |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Fair value at derecognition | 11,015 | 625 | ||||||
Cumulative amount recognized in other comprehensive income, net of tax * | 5,784 | (298 | ) | |||||
Dividend received | 70 | 8 |
* | The cumulative amount recognized in other comprehensive income, net of tax, was transferred to retained earnings upon derecognition of the equity instruments. |
(3) | Financial instruments measured at amortized cost |
Yen in millions | ||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||
Fair value | Carrying amount | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Debt securities | ||||||||||||||||||||
Japanese national government bonds | — | 86,622 | — | 86,622 | 75,634 | |||||||||||||||
Japanese local government bonds | — | 1,963 | — | 1,963 | 1,717 | |||||||||||||||
Japanese corporate bonds | — | 3,727 | — | 3,727 | 3,583 | |||||||||||||||
Foreign corporate bonds | — | 5,121 | — | 5,121 | 5,047 | |||||||||||||||
Securitized products | — | — | 269,376 | 269,376 | 271,308 | |||||||||||||||
Other | — | 41 | 909 | 950 | 949 | |||||||||||||||
Housing loans in the banking business | — | — | 2,837,349 | 2,837,349 | 2,752,985 | |||||||||||||||
Total assets | — | 97,474 | 3,107,634 | 3,205,108 | 3,111,223 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt including the current portion | — | 841,249 | 60,873 | 902,122 | 909,706 | |||||||||||||||
Total liabilities | — | 841,249 | 60,873 | 902,122 | 909,706 | |||||||||||||||
Yen in millions | ||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||
Fair value | Carrying amount | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Debt securities | ||||||||||||||||||||
Japanese national government bonds | — | 83,357 | — | 83,357 | 79,550 | |||||||||||||||
Japanese local government bonds | — | 1,803 | — | 1,803 | 1,618 | |||||||||||||||
Japanese corporate bonds | — | 3,337 | — | 3,337 | 3,483 | |||||||||||||||
Foreign corporate bonds | — | 4,814 | — | 4,814 | 4,796 | |||||||||||||||
Securitized products | — | — | 324,153 | 324,153 | 331,354 | |||||||||||||||
Other | — | 41 | 1,173 | 1,214 | 1,224 | |||||||||||||||
Housing loans in the banking business | — | — | 3,184,060 | 3,184,060 | 3,129,393 | |||||||||||||||
Total assets | — | 93,352 | 3,509,386 | 3,602,738 | 3,551,418 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt including the current portion | — | 1,343,077 | 67,844 | 1,410,921 | 1,423,392 | |||||||||||||||
Total liabilities | — | 1,343,077 | 67,844 | 1,410,921 | 1,423,392 | |||||||||||||||
(4) | Income and expenses related to financial instruments in the Financial Services segment |
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||
Financial instruments required to be measured at FVPL | Financial instruments designated to be measured at FVPL | Financial assets measured at AC | Financial liabilities measured at AC | Debt instruments measured at FVOCI | Equity instruments measured at FVOCI | Total | ||||||||||||||||||||||
Income | ||||||||||||||||||||||||||||
Net gains (losses) recognized in profit or loss | 412,957 | 4,936 | (14,069 | ) | (5,569 | ) | 51,194 | — | 449,449 | |||||||||||||||||||
Total interest income | — | — | 26,141 | — | 169,072 | — | 195,213 | |||||||||||||||||||||
Dividend income | — | — | — | — | — | 2 | 2 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Total interest expenses | — | — | — | 4,577 | — | — | 4,577 | |||||||||||||||||||||
Impairment losses (gains) on financial assets | — | — | (15 | ) | — | 18 | — | 3 |
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||
Financial instruments required to be measured at FVPL | Financial instruments designated to be measured at FVPL | Financial assets measured at AC | Financial liabilities measured at AC | Debt instruments measured at FVOCI | Equity instruments measured at FVOCI | Total | ||||||||||||||||||||||
Income | ||||||||||||||||||||||||||||
Net gains (losses) recognized in profit or loss | 225,922 | (6,673 | ) | 14,765 | (49,110 | ) | 148,813 | — | 333,717 | |||||||||||||||||||
Total interest income | — | — | 32,839 | — | 180,006 | — | 212,845 | |||||||||||||||||||||
Dividend income | — | — | — | — | — | 85 | 85 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Total interest expenses | — | — | — | 3,838 | — | — | 3,838 | |||||||||||||||||||||
Impairment losses (gains) on financial assets | — | — | 19 | — | 24 | — | 43 | |||||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||
Financial instruments required to be measured at FVPL | Financial instruments designated to be measured at FVPL | Financial assets measured at AC | Financial liabilities measured at AC | Debt instruments measured at FVOCI | Equity instruments measured at FVOCI | Total | ||||||||||||||||||||||
Income | ||||||||||||||||||||||||||||
Net gains (losses) recognized in profit or loss | 47,709 | (2,493 | ) | 14,944 | (58,484 | ) | 140,589 | — | 142,265 | |||||||||||||||||||
Total interest income | — | — | 47,054 | — | 198,549 | — | 245,603 | |||||||||||||||||||||
Dividend income | — | — | — | — | — | 195 | 195 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Total interest expenses | — | — | — | 29,774 | — | — | 29,774 | |||||||||||||||||||||
Impairment losses (gains) on financial assets | — | — | 144 | — | 8 | — | 152 |
6. | Financial risk management |
(1) | Capital risk |
March 31 | ||||||||
2022 | 2023 | |||||||
ROE* | 12.8 | % | 13.0 | % |
* | ROE is calculated using equity attributable to Sony Group Corporation’s stockholders. |
(2) | Interest rate risk |
(3) | Price risk |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Income before income taxes | (11,604 | ) | (11,734 | ) | ||||
Other comprehensive income (before considering the tax effects) | (9,871 | ) | (9,800 | ) |
(4) | Liquidity risk |
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Carrying amount | Total | Within 1 year | 1 year to 2 years | 2 years to 3 years | 3 years to 4 years | 4 years to 5 years | 5+ years | |||||||||||||||||||||||||
Deposits from customers in the banking business *1 | 3,004,215 | 3,004,215 | 2,886,361 | 48,676 | 15,860 | 3,038 | 1,186 | 49,094 | ||||||||||||||||||||||||
Bonds | 216,103 | 218,676 | 36,976 | 25,363 | 40,326 | 20,303 | 35,243 | 60,465 | ||||||||||||||||||||||||
Borrowings | 2,670,156 | 2,687,135 | 2,053,340 | 58,767 | 76,434 | 115,460 | 23,813 | 359,321 | ||||||||||||||||||||||||
Loan commitments | — | 33,587 | 33,587 | — | — | — | — | — | ||||||||||||||||||||||||
Derivative liabilities *2 | 72,120 | 72,118 | 66,017 | 688 | 718 | 753 | 721 | 3,221 | ||||||||||||||||||||||||
Guarantee deposits received | 39,296 | 39,296 | 28,872 | 345 | 27 | 8 | 8 | 10,036 | ||||||||||||||||||||||||
Redeemable noncontrolling interests | 34,995 | 37,046 | 2,435 | 19,927 | 9,046 | 2,381 | — | 3,257 |
Yen in millions | ||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Carrying amount | Total | Within 1 year | 1 year to 2 years | 2 years to 3 years | 3 years to 4 years | 4 years to 5 years | ||||||||||||||||||||
Lease liabilities | 465,349 | 511,883 | 81,421 | 69,791 | 59,214 | 45,063 | 37,363 | |||||||||||||||||||
5 years to 6 years | 6 years to 7 years | 7 years to 8 years | 8 years to 9 years | 9 years to 10 years | 10+ years | |||||||||||||||||||||
35,841 | 32,369 | 30,593 | 27,864 | 19,913 | 72,451 |
*1 | Demand deposits are included in the “Within 1 year” category. |
*2 | Breakdown of net settlements and gross settlements in the derivative liabilities are presented below. |
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||
Total | Within 1 year | 1 year to 2 years | 2 years to 3 years | 3 years to 4 years | 4 years to 5 years | 5+ years | ||||||||||||||||||||||
Derivative contracts | ||||||||||||||||||||||||||||
—Net settled | ||||||||||||||||||||||||||||
Paid | 72,118 | 66,017 | 688 | 718 | 753 | 721 | 3,221 | |||||||||||||||||||||
Derivative contracts | ||||||||||||||||||||||||||||
—Gross settled | ||||||||||||||||||||||||||||
Received | — | — | — | — | — | — | — | |||||||||||||||||||||
Paid | — | — | — | — | — | — | — |
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Carrying amount | Total | Within 1 year | 1 year to 2 years | 2 years to 3 years | 3 years to 4 years | 4 years to 5 years | 5+ years | |||||||||||||||||||||||||
Deposits from customers in the banking business *1 | 3,306,981 | 3,316,556 | 3,171,377 | 30,215 | 14,933 | 1,060 | 2,410 | 96,561 | ||||||||||||||||||||||||
Bonds | 349,332 | 354,169 | 26,039 | 40,986 | 110,862 | 35,591 | 80,416 | 60,275 | ||||||||||||||||||||||||
Borrowings | 2,988,994 | 3,025,480 | 1,998,315 | 70,690 | 147,447 | 270,268 | 62,571 | 476,189 | ||||||||||||||||||||||||
Loan commitments | — | 35,831 | 35,831 | — | — | — | — | — | ||||||||||||||||||||||||
Derivative liabilities *2 | 34,123 | 33,766 | 28,886 | 623 | 1,041 | 912 | 918 | 1,386 | ||||||||||||||||||||||||
Guarantee deposits received | 40,568 | 40,568 | 31,085 | 272 | 19 | 58 | 13 | 9,121 | ||||||||||||||||||||||||
Redeemable noncontrolling interests | 47,326 | 48,616 | — | 24,844 | 10,397 | 4,572 | 198 | 8,605 |
Yen in millions | ||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Carrying amount | Total | Within 1 year | 1 year to 2 years | 2 years to 3 years | 3 years to 4 years | 4 years to 5 years | ||||||||||||||||||||
Lease liabilities | 532,246 | 593,967 | 90,244 | 80,476 | 68,143 | 55,189 | 47,665 | |||||||||||||||||||
5 years to 6 years | 6 years to 7 years | 7 years to 8 years | 8 years to 9 years | 9 years to 10 years | 10+ years | |||||||||||||||||||||
56,603 | 37,539 | 34,588 | 25,798 | 18,384 | 79,338 |
*1 | Demand deposits are included in the “Within 1 year” category. |
*2 | Breakdown of net settlements and gross settlements in the derivative liabilities are presented below. |
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||
Total | Within 1 year | 1 year to 2 years | 2 years to 3 years | 3 years to 4 years | 4 years to 5 years | 5+ years | ||||||||||||||||||||||
Derivative contracts | ||||||||||||||||||||||||||||
—Net settled | ||||||||||||||||||||||||||||
Paid | 32,881 | 27,820 | 769 | 1,076 | 912 | 918 | 1,386 | |||||||||||||||||||||
Derivative contracts | ||||||||||||||||||||||||||||
—Gross settled | ||||||||||||||||||||||||||||
Received | 29,092 | 25,894 | 156 | 3,042 | — | — | — | |||||||||||||||||||||
Paid | 29,977 | 26,960 | 10 | 3,007 | — | — | — |
(5) | Foreign exchange risk |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
U.S. dollar | (6,384 | ) | 45,316 | |||||
Euro | (22,713 | ) | 1,459 |
* | Net exposures resulting in a liability are presented as negative and net exposures resulting in an asset are presented as positive. |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
U.S. dollar | 638 | (4,532 | ) | |||||
Euro | 2,271 | (146 | ) |
(6) | Credit risk |
(a) | Changes in the loss allowances |
Yen in millions | ||||||||
Lifetime expected credit losses | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Balance at beginning of the fiscal year | 30,066 | 31,341 | ||||||
Changes due to financial assets recognized at beginning of the fiscal year: | ||||||||
— Financial assets that have been derecognized | (935 | ) | (4,568 | ) | ||||
New financial assets originated or purchased | 5,998 | 6,401 | ||||||
Write-offs | (9,501 | ) | (6,647 | ) | ||||
Changes in models/risk parameters | 4,269 | (1,409 | ) | |||||
Foreign exchange and other movements | 1,444 | 2,416 | ||||||
Balance at end of the fiscal year | 31,341 | 27,534 | ||||||
Debt Securities | ||||||||
Yen in millions | ||||||||
12-month expected credit losses * | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Balance at beginning of the fiscal year | 29 | 53 | ||||||
Changes due to financial assets recognized at beginning of the fiscal year: | ||||||||
— Financial assets that have been derecognized | (6 | ) | (4 | ) | ||||
New financial assets originated or purchased | 44 | 13 | ||||||
Changes in models/risk parameters | (14 | ) | (1 | ) | ||||
Foreign exchange and other movements | — | — | ||||||
Balance at end of the fiscal year | 53 | 61 | ||||||
* | For all debt securities, Sony considers that the credit risk has not increased significantly since initial recognition, and therefore the loss allowance is measured at an amount equal to 12-months of expected credit losses. |
Yen in millions | ||||||||||||
12-month expected credit losses | Lifetime expected credit losses | Total | ||||||||||
Balance as of April 1, 2021 | 122 | 946 | 1,068 | |||||||||
Changes due to financial assets recognized as of April 1, 2021: | ||||||||||||
— Transfer to lifetime expected credit losses | (1 | ) | 1 | — | ||||||||
— Transfer to 12-month expected credit losses | 103 | (103 | ) | — | ||||||||
— Financial assets that have been derecognized | (59 | ) | (97 | ) | (156 | ) | ||||||
New financial assets originated or purchased | 33 | 17 | 50 | |||||||||
Changes in models/risk parameters | (34 | ) | 163 | 129 | ||||||||
Foreign exchange and other movements | — | — | — | |||||||||
Balance as of March 31, 2022 | 164 | 927 | 1,091 | |||||||||
Changes due to financial assets recognized as of March 31, 2022: | ||||||||||||
— Transfer to lifetime expected credit losses | (1 | ) | 1 | — | ||||||||
— Transfer to 12-month expected credit losses | 80 | (80 | ) | — | ||||||||
— Financial assets that have been derecognized | (6 | ) | (285 | ) | (291 | ) | ||||||
New financial assets originated or purchased | 51 | 20 | 71 | |||||||||
Changes in models/risk parameters | 25 | 241 | 266 | |||||||||
Foreign exchange and other movements | — | — | — | |||||||||
Balance as of March 31, 2023 | 313 | 824 | 1,137 | |||||||||
(b) | Description of collateral held as security and other credit enhancements |
(c) | Credit risk exposure by risk rating grades |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Outstanding receivables by overview period of overdue (Gross carrying amount) | ||||||||
Not past due or due within 30 days | 1,732,371 | 1,849,112 | ||||||
Due over 30 to 90 days | 52,895 | 46,332 | ||||||
Due over 90 days | 45,269 | 63,519 | ||||||
Total | 1,830,535 | 1,958,963 | ||||||
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Debt securities by credit ratings (Gross carrying amount) | ||||||||
AAA | 488,275 | 559,271 | ||||||
AA | 2,431,758 | 2,807,508 | ||||||
A | 8,560,523 | 8,695,883 | ||||||
BBB | 12,948 | 9,625 | ||||||
Other | 32,422 | 6,434 | ||||||
Total | 11,525,926 | 12,078,721 | ||||||
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||
Normal* | Other than Normal | Total | ||||||||||||||||||||||||||
12-month expected credit losses | Lifetime expected credit losses | Sub total | 12-month expected credit losses | Lifetime expected credit losses | Sub total | |||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Housing loans | 2,747,406 | 156 | 2,747,562 | 2,532 | 3,423 | 5,955 | 2,753,517 | |||||||||||||||||||||
Other | 24,522 | 282 | 24,804 | 11 | 85 | 96 | 24,900 | |||||||||||||||||||||
Total | 2,771,928 | 438 | 2,772,366 | 2,543 | 3,508 | 6,051 | 2,778,417 | |||||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||
Normal* | Other than Normal | Total | ||||||||||||||||||||||||||
12-month expected credit losses | Lifetime expected credit losses | Sub total | 12-month expected credit losses | Lifetime expected credit losses | Sub total | |||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Housing loans | 3,124,410 | 140 | 3,124,550 | 2,173 | 3,350 | 5,523 | 3,130,073 | |||||||||||||||||||||
Other | 16,852 | 242 | 17,094 | 4 | 74 | 78 | 17,172 | |||||||||||||||||||||
Total | 3,141,262 | 382 | 3,141,644 | 2,177 | 3,424 | 5,601 | 3,147,245 | |||||||||||||||||||||
* | Normal is defined as borrowers who have strong results and no particular problems with their financial position. |
(d) | Credit risk for debt securities designated to be measured at fair value through profit or loss |
(7) | Market risks for the banking business |
(8) | Effect of IBOR reform |
Yen in millions | ||||||||
March 31, 2023 | ||||||||
Carrying Value | Of which have yet to transition to an alternative benchmark interest rate | |||||||
Debt securities | ||||||||
Financial assets required to be measured at FVOCI | 18,529 | 3,291 | ||||||
Financial assets required to be measured at AC | 290,178 | 223,111 | ||||||
Long-term debt | (159,918 | ) | (159,918 | ) | ||||
Derivatives* | 35,483 | 34,375 | ||||||
Total | 184,272 | 100,859 | ||||||
* | Derivatives are presented on a net basis. |
7. | Inventories |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Finished products | 533,612 | 1,028,614 | ||||||
Work in process | 163,206 | 244,140 | ||||||
Raw materials, purchased components and supplies | 177,189 | 195,288 | ||||||
Inventories | 874,007 | 1,468,042 | ||||||
8. | Investments in associates and joint ventures |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Investments accounted for using the equity method | ||||||||
Associates | 235,671 | 279,640 | ||||||
Joint ventures | 32,842 | 45,580 | ||||||
Total | 268,513 | 325,220 | ||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Share of profit or loss | ||||||||||||
Associates | 14,086 | 21,920 | 22,637 | |||||||||
Joint ventures | (2,535 | ) | 1,726 | 1,812 | ||||||||
Total | 11,551 | 23,646 | 24,449 | |||||||||
Share of other comprehensive income | ||||||||||||
Associates | 884 | 2,077 | 3,659 | |||||||||
Joint ventures | 1 | 1 | 40 | |||||||||
Total | 885 | 2,078 | 3,699 | |||||||||
Share of comprehensive income | ||||||||||||
Associates | 14,970 | 23,997 | 26,296 | |||||||||
Joint ventures | (2,534 | ) | 1,727 | 1,852 | ||||||||
Total | 12,436 | 25,724 | 28,148 | |||||||||
9. | Property, plant and equipment |
Yen in millions | ||||||||||||||||||||
Land | Buildings | Machinery and equipment | Construction in progress | Total | ||||||||||||||||
Balance as of April 1, 2021: | ||||||||||||||||||||
Cost | 76,077 | 755,115 | 1,864,034 | 102,310 | 2,797,536 | |||||||||||||||
Accumulated depreciation and impairment losses | (37 | ) | (491,156 | ) | (1,314,220 | ) | (1,582 | ) | (1,806,995 | ) | ||||||||||
Carrying amount | 76,040 | 263,959 | 549,814 | 100,728 | 990,541 | |||||||||||||||
Changes in carrying amount: | ||||||||||||||||||||
Additions | 2,461 | 25,434 | 91,189 | 229,094 | 348,178 | |||||||||||||||
Acquisitions through business combinations | — | 1,946 | 1,437 | — | 3,383 | |||||||||||||||
Reclassifications | 24 | 48,600 | 134,660 | (185,979 | ) | (2,695 | ) | |||||||||||||
Disposals or classified as held for sale *1 | (1,628 | ) | (2,248 | ) | (4,690 | ) | (158 | ) | (8,724 | ) | ||||||||||
Depreciation *2 | — | (29,906 | ) | (205,920 | ) | — | (235,826 | ) | ||||||||||||
Impairment losses | — | (235 | ) | (579 | ) | (74 | ) | (888 | ) | |||||||||||
Translation adjustment | 1,226 | 9,640 | 7,032 | 1,036 | 18,934 | |||||||||||||||
Other | — | 282 | 22 | 6 | 310 | |||||||||||||||
Total changes | 2,083 | 53,513 | 23,151 | 43,925 | 122,672 | |||||||||||||||
Balance as of March 31, 2022: | ||||||||||||||||||||
Cost | 78,160 | 832,785 | 1,953,985 | 145,940 | 3,010,870 | |||||||||||||||
Accumulated depreciation and impairment losses | (37 | ) | (515,313 | ) | (1,381,020 | ) | (1,287 | ) | (1,897,657 | ) | ||||||||||
Carrying amount | 78,123 | 317,472 | 572,965 | 144,653 | 1,113,213 | |||||||||||||||
Changes in carrying amount: | ||||||||||||||||||||
Additions | 700 | 17,369 | 112,351 | 364,450 | 494,870 | |||||||||||||||
Acquisitions through business combinations | — | 168 | 2,480 | 5,939 | 8,587 | |||||||||||||||
Reclassifications | 75 | 75,608 | 232,218 | (314,742 | ) | (6,841 | ) | |||||||||||||
Disposals or classified as held for sale *1 | (876 | ) | (1,610 | ) | (2,793 | ) | (644 | ) | (5,923 | ) | ||||||||||
Depreciation *2 | — | (33,682 | ) | (234,530 | ) | — | (268,212 | ) | ||||||||||||
Impairment losses | — | (317 | ) | (570 | ) | (52 | ) | (939 | ) | |||||||||||
Translation adjustment | 1,232 | 8,931 | 5,315 | 531 | 16,009 | |||||||||||||||
Other | — | (4,636 | ) | (1,264 | ) | — | (5,900 | ) | ||||||||||||
Total changes | 1,131 | 61,831 | 113,207 | 55,482 | 231,651 | |||||||||||||||
Balance as of March 31, 2023: | ||||||||||||||||||||
Cost | 79,291 | 921,156 | 2,202,010 | 201,299 | 3,403,756 | |||||||||||||||
Accumulated depreciation and impairment losses | (37 | ) | (541,853 | ) | (1,515,838 | ) | (1,164 | ) | (2,058,892 | ) | ||||||||||
Carrying amount | 79,254 | 379,303 | 686,172 | 200,135 | 1,344,864 | |||||||||||||||
*1 | An asset or disposal group for which the cash flows are expected to arise principally from sale rather than continuing use is classified to current asset as an asset held for sale. |
*2 | Depreciation expenses are allocated to the cost of inventory and are recognized in cost of sales as inventory is sold, or are directly recognized in selling, general and administrative expenses and research and development expenditures in the consolidated statements of income, depending on the use of the asset. |
10. | Leases |
(1) | Right-of-use |
Yen in millions | ||||||||||||||||
Land | Buildings | Machinery and equipment | Total | |||||||||||||
Balance as of April 1, 2021: | ||||||||||||||||
Carrying amount | 15,394 | 327,350 | 15,290 | 358,034 | ||||||||||||
Changes in the carrying amount | ||||||||||||||||
Increase due to new lease agreements and remeasurement of lease liabilities | 2,908 | 104,456 | 12,816 | 120,180 | ||||||||||||
Decrease due to termination of lease agreements and remeasurement of lease liabilities | (159 | ) | (5,685 | ) | (356 | ) | (6,200 | ) | ||||||||
Depreciation | (1,140 | ) | (72,944 | ) | (7,700 | ) | (81,784 | ) | ||||||||
Other | 797 | 22,091 | 312 | 23,200 | ||||||||||||
Net changes | 2,406 | 47,918 | 5,072 | 55,396 | ||||||||||||
Balance as of March 31, 2022: | ||||||||||||||||
Carrying amount | 17,800 | 375,268 | 20,362 | 413,430 | ||||||||||||
Changes in the carrying amount | ||||||||||||||||
Increase due to new lease agreements and remeasurement of lease liabilities | 1,533 | 90,395 | 36,604 | 128,532 | ||||||||||||
Decrease due to termination of lease agreements and remeasurement of lease liabilities | (3,323 | ) | (10,654 | ) | (214 | ) | (14,191 | ) | ||||||||
Depreciation | (1,171 | ) | (77,368 | ) | (7,808 | ) | (86,347 | ) | ||||||||
Other | 399 | 35,422 | 818 | 36,639 | ||||||||||||
Net changes | (2,562 | ) | 37,795 | 29,400 | 64,633 | |||||||||||
Balance as of March 31, 2023: | ||||||||||||||||
Carrying amount | 15,238 | 413,063 | 49,762 | 478,063 | ||||||||||||
(2) | Income, expenses, and cash flows (except for depreciation) arising from lease contracts as a lessee and lessor are as follows: |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Interest expenses on lease liabilities | 8,292 | 8,223 | 10,382 | |||||||||
Expenses related to short-term leases accounted for applying an exemption | 17,805 | 19,764 | 36,807 | |||||||||
Income from subleases | (2,256 | ) | (2,256 | ) | (1,784 | ) | ||||||
Net cash outflows for leases | 81,399 | 83,546 | 89,681 |
11. | Goodwill and intangible assets |
(1) | Goodwill |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Balance at beginning of the fiscal year | ||||||||
Cost | 1,073,178 | 1,312,615 | ||||||
Accumulated impairments | (347,069 | ) | (359,720 | ) | ||||
Carrying amount | 726,109 | 952,895 | ||||||
Increase (decrease) due to: | ||||||||
Acquisitions | 197,644 | 274,499 | ||||||
Disposals or classified as held for sale * | (40,201 | ) | (445 | ) | ||||
Impairments | — | — | ||||||
Translation adjustments | 69,343 | 48,163 | ||||||
Other | — | — | ||||||
Balance at end of the fiscal year | ||||||||
Cost | 1,312,615 | 1,649,041 | ||||||
Accumulated impairments | (359,720 | ) | (373,929 | ) | ||||
Carrying amount | 952,895 | 1,275,112 | ||||||
* | Disposals or classified as held for sale for the fiscal year ended March 31, 2022 relate mainly to the transfer of certain operations of Game Show Network, LLC, a wholly-owned subsidiary in the Pictures segment. Refer to Note 31 for the details of the transfer. |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Game & Network Services *1 | 200,206 | 407,121 | ||||||
Music *2 | 539,055 | 579,969 | ||||||
Pictures *3 | 187,658 | 259,055 | ||||||
Entertainment, Technology & Services | 11,949 | 14,654 | ||||||
Imaging & Sensing Solutions | 3,193 | 3,479 | ||||||
Financial Services | 10,834 | 10,834 | ||||||
All Other | — | — | ||||||
Total | 952,895 | 1,275,112 | ||||||
*1 | Game & Network Services |
*2 | Music |
*3 | Pictures |
(2) | Content assets |
Yen in millions | ||||||||||||||||||||||||||||
Film costs | Broadcasting rights | Music catalogs | Artist contracts | Music distribution rights | Game content | Content assets Total | ||||||||||||||||||||||
Balance as of April 1, 2021: | ||||||||||||||||||||||||||||
Cost | 2,909,102 | 304,036 | 724,513 | 26,709 | 32,019 | 14,178 | 4,010,557 | |||||||||||||||||||||
Accumulated amortization and impairment losses | (2,514,627 | ) | (239,403 | ) | (167,761 | ) | (14,232 | ) | (7,008 | ) | (4,979 | ) | (2,948,010 | ) | ||||||||||||||
Carrying amount | 394,475 | 64,633 | 556,752 | 12,477 | 25,011 | 9,199 | 1,062,547 | |||||||||||||||||||||
Changes in carrying amount: | ||||||||||||||||||||||||||||
Additions* | 313,648 | 75,841 | 87,350 | 2,209 | — | 20,997 | 500,045 | |||||||||||||||||||||
Acquisitions through business combinations | 11,724 | 32,124 | 28,194 | — | 9,760 | 10,797 | 92,599 | |||||||||||||||||||||
Disposals or classified as held for sale | (932 | ) | (4,747 | ) | — | — | — | — | (5,679 | ) | ||||||||||||||||||
Amortization | (294,350 | ) | (70,514 | ) | (25,182 | ) | (604 | ) | (1,648 | ) | (8,602 | ) | (400,900 | ) | ||||||||||||||
Impairment losses | (13,870 | ) | (738 | ) | — | — | — | — | (14,608 | ) | ||||||||||||||||||
Translation adjustment | 42,782 | 4,619 | 57,676 | 1,161 | 938 | 866 | 108,042 | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
Total changes | 59,002 | 36,585 | 148,038 | 2,766 | 9,050 | 24,058 | 279,499 | |||||||||||||||||||||
Balance as of March 31, 2022: | ||||||||||||||||||||||||||||
Cost | 3,549,934 | 395,045 | 914,418 | 30,278 | 43,219 | 46,086 | 4,978,980 | |||||||||||||||||||||
Accumulated amortization and impairment losses | (3,096,457 | ) | (293,827 | ) | (209,628 | ) | (15,035 | ) | (9,158 | ) | (12,829 | ) | (3,636,934 | ) | ||||||||||||||
Carrying amount | 453,477 | 101,218 | 704,790 | 15,243 | 34,061 | 33,257 | 1,342,046 | |||||||||||||||||||||
Changes in carrying amount: | ||||||||||||||||||||||||||||
Additions* | 526,273 | 83,491 | 27,839 | 942 | 35 | 10,725 | 649,305 | |||||||||||||||||||||
Acquisitions through business combinations | 419 | 7 | 607 | — | 1,171 | 46,079 | 48,283 | |||||||||||||||||||||
Disposals or classified as held for sale | (38,899 | ) | — | — | — | — | (7 | ) | (38,906 | ) | ||||||||||||||||||
Amortization | (381,753 | ) | (76,824 | ) | (31,686 | ) | (1,285 | ) | (2,755 | ) | (15,820 | ) | (510,123 | ) | ||||||||||||||
Impairment losses | (13,815 | ) | — | (236 | ) | — | — | (152 | ) | (14,203 | ) | |||||||||||||||||
Translation adjustment | 27,228 | 4,665 | 50,980 | 1,086 | 937 | 294 | 85,190 | |||||||||||||||||||||
Other | — | — | — | — | — | 290 | 290 | |||||||||||||||||||||
Total changes | 119,453 | 11,339 | 47,504 | 743 | (612 | ) | 41,409 | 219,836 | ||||||||||||||||||||
Balance as of March 31, 2023: | ||||||||||||||||||||||||||||
Cost | 4,320,022 | 419,025 | 1,008,942 | 32,484 | 45,988 | 97,386 | 5,923,847 | |||||||||||||||||||||
Accumulated amortization and impairment losses | (3,747,092 | ) | (306,468 | ) | (256,648 | ) | (16,498 | ) | (12,539 | ) | (22,720 | ) | (4,361,965 | ) | ||||||||||||||
Carrying amount | 572,930 | 112,557 | 752,294 | 15,986 | 33,449 | 74,666 | 1,561,882 | |||||||||||||||||||||
* | The additions in Film costs include the cost of films internally produced and acquired from third party projects. Film costs acquired from third party projects are not a significant portion of Film costs recorded by Sony. The additions in Broadcasting rights, Music catalogs, Artist contracts and Music distribution rights mainly represent acquisitions through contracts with third parties. The additions in Game content primarily include externally acquired game content for the fiscal year ended March 31, 2022 and internally developed game content for the fiscal year ended March 31, 2023. |
Yen in millions | ||||||||||||||||||||||||||||
Patent rights, know-how and license agreements | Customer relationships | Trademarks | Software | Television carriage contracts | Other | Total | ||||||||||||||||||||||
Balance as of April 1, 2021: | ||||||||||||||||||||||||||||
Cost | 218,192 | 41,494 | 24,250 | 827,210 | 55,752 | 148,729 | 1,315,627 | |||||||||||||||||||||
Accumulated amortization and impairment losses | (200,406 | ) | (36,775 | ) | (6,397 | ) | (582,875 | ) | (27,162 | ) | (70,957 | ) | (924,572 | ) | ||||||||||||||
Carrying amount | 17,786 | 4,719 | 17,853 | 244,335 | 28,590 | 77,772 | 391,055 | |||||||||||||||||||||
Changes in carrying amount: | ||||||||||||||||||||||||||||
Additions | 4,668 | 639 | 158 | 93,642 | — | 3,538 | 102,645 | |||||||||||||||||||||
Acquisitions through business combinations | 2,488 | 19,121 | 7,076 | 6,895 | — | 8,132 | 43,712 | |||||||||||||||||||||
Internal development | — | — | — | 15,681 | — | — | 15,681 | |||||||||||||||||||||
Disposals or classified as held for sale | (49 | ) | (565 | ) | (550 | ) | (2,599 | ) | — | (107 | ) | (3,870 | ) | |||||||||||||||
Amortization | (5,576 | ) | (4,975 | ) | (1,875 | ) | (87,113 | ) | (3,361 | ) | (6,904 | ) | (109,804 | ) | ||||||||||||||
Impairment losses | (6 | ) | — | (313 | ) | (3,218 | ) | — | (202 | ) | (3,739 | ) | ||||||||||||||||
Translation adjustment | 216 | 2,146 | 2,280 | 5,534 | 2,829 | 1,577 | 14,582 | |||||||||||||||||||||
Other | 140 | — | 1 | 819 | — | (1,119 | ) | (159 | ) | |||||||||||||||||||
Total changes | 1,881 | 16,366 | 6,777 | 29,641 | (532 | ) | 4,915 | 59,048 | ||||||||||||||||||||
Balance as of March 31, 2022: | ||||||||||||||||||||||||||||
Cost | 213,649 | 58,427 | 32,683 | 952,153 | 61,939 | 155,479 | 1,474,330 | |||||||||||||||||||||
Accumulated amortization and impairment losses | (193,982 | ) | (37,342 | ) | (8,053 | ) | (678,177 | ) | (33,881 | ) | (72,792 | ) | (1,024,227 | ) | ||||||||||||||
Carrying amount | 19,667 | 21,085 | 24,630 | 273,976 | 28,058 | 82,687 | 450,103 | |||||||||||||||||||||
Changes in carrying amount: | ||||||||||||||||||||||||||||
Additions | 6,432 | — | 17 | 117,019 | — | 3,323 | 126,791 | |||||||||||||||||||||
Acquisitions through business combinations | 2,056 | 9,237 | 16,655 | 26,298 | — | 38,394 | 92,640 | |||||||||||||||||||||
Internal development | — | — | — | 19,835 | — | — | 19,835 | |||||||||||||||||||||
Disposals or classified as held for sale | (8 | ) | (112 | ) | (14 | ) | (2,907 | ) | — | (129 | ) | (3,170 | ) | |||||||||||||||
Amortization | (8,152 | ) | (9,437 | ) | (4,290 | ) | (94,821 | ) | (3,954 | ) | (14,566 | ) | (135,220 | ) | ||||||||||||||
Impairment losses | (8 | ) | (93 | ) | — | (342 | ) | — | (66 | ) | (509 | ) | ||||||||||||||||
Translation adjustment | 156 | 1,483 | 1,516 | 3,715 | 2,176 | 613 | 9,659 | |||||||||||||||||||||
Other | (1,121 | ) | 158 | 699 | 4,299 | — | (322 | ) | 3,713 | |||||||||||||||||||
Total changes | (645 | ) | 1,236 | 14,583 | 73,096 | (1,778 | ) | 27,247 | 113,739 | |||||||||||||||||||
Balance as of March 31, 2023: | ||||||||||||||||||||||||||||
Cost | 201,243 | 66,593 | 51,747 | 1,045,743 | 66,583 | 199,311 | 1,631,220 | |||||||||||||||||||||
Accumulated amortization and impairment losses | (182,221 | ) | (44,272 | ) | (12,534 | ) | (698,671 | ) | (40,303 | ) | (89,377 | ) | (1,067,378 | ) | ||||||||||||||
Carrying amount | 19,022 | 22,321 | 39,213 | 347,072 | 26,280 | 109,934 | 563,842 | |||||||||||||||||||||
12. | Impairment of non-financial assets |
13. | Insurance-related accounts |
(1) | Assets, liabilities, revenues and expenses included in the insurance business |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Universal life insurance | 3,278,148 | 3,348,137 | ||||||
Investment contracts | 1,393,257 | 1,715,921 | ||||||
Other | 119,890 | 84,521 | ||||||
Total | 4,791,295 | 5,148,579 | ||||||
Yen in millions | ||||||||||||
March 31, 2022 | ||||||||||||
Individual variable annuity contracts | Variable life insurance contracts | Total | ||||||||||
Policyholders’ account value | 467,924 | 1,686,488 | 2,154,412 | |||||||||
Net amount at risk | 58,961 | 6,361,770 | 6,420,731 | |||||||||
Liability for minimum guarantee benefit | 37,382 | 63,392 | 100,774 |
Age | ||||||||
March 31, 2022 | ||||||||
Individual variable annuity contracts | Variable life insurance contracts | |||||||
Average attained age | 63 | 45 |
Yen in millions | ||||||||||||
March 31, 2023 | ||||||||||||
Individual variable annuity contracts | Variable life insurance contracts | Total | ||||||||||
Policyholders’ account value | 419,628 | 1,778,451 | 2,198,079 | |||||||||
Net amount at risk | 78,322 | 7,727,061 | 7,805,383 | |||||||||
Liability for minimum guarantee benefit | 41,214 | 76,012 | 117,226 |
Age | ||||||||
March 31, 2023 | ||||||||
Individual variable annuity contracts | Variable life insurance contracts | |||||||
Average attained age | 64 | 45 |
(2) | Changes in insurance contract liabilities and deferred insurance acquisition costs |
Yen in millions | ||||||||||||
Future insurance policy benefits and other | Policyholders’ account in the life insurance business | Total | ||||||||||
Balance as of April 1, 2021 | 6,749,450 | 4,328,894 | 11,078,344 | |||||||||
Current portion *1 | 134,865 | — | 134,865 | |||||||||
Non-current portion | 6,614,585 | 4,328,894 | 10,943,479 | |||||||||
Net premiums | 813,856 | 468,299 | 1,282,155 | |||||||||
Insurance liabilities released | (539,586 | ) | (251,169 | ) | (790,755 | ) | ||||||
Unwind of discount and actuarial items *2 | 149,869 | 201,797 | 351,666 | |||||||||
Changes in valuation of expected future benefits | (11,144 | ) | 946 | (10,198 | ) | |||||||
Shadow accounting adjustments | (15,692 | ) | (3,169 | ) | (18,861 | ) | ||||||
Other | (65,198 | ) | 29,328 | (35,870 | ) | |||||||
Currency exchange rate fluctuations | 110,485 | 16,369 | 126,854 | |||||||||
Balance as of March 31, 2022 | 7,192,040 | 4,791,295 | 11,983,335 | |||||||||
Current portion *1 | 153,006 | — | 153,006 | |||||||||
Non-current portion | 7,039,034 | 4,791,295 | 11,830,329 | |||||||||
Net premiums | 821,226 | 594,239 | 1,415,465 | |||||||||
Insurance liabilities released | (778,728 | ) | (261,212 | ) | (1,039,940 | ) | ||||||
Unwind of discount and actuarial items *2 | 151,058 | (31,604 | ) | 119,454 | ||||||||
Changes in valuation of expected future benefits | 7,378 | 12,142 | 19,520 | |||||||||
Shadow accounting adjustments | 2,083 | (4,694 | ) | (2,611 | ) | |||||||
Other | (76,745 | ) | 38,177 | (38,568 | ) | |||||||
Currency exchange rate fluctuations | 108,200 | 10,236 | 118,436 | |||||||||
Balance as of March 31, 2023 | 7,426,512 | 5,148,579 | 12,575,091 | |||||||||
Current portion *1 | 162,091 | — | 162,091 | |||||||||
Non-current portion | 7,264,421 | 5,148,579 | 12,413,000 |
*1 | The current portion of future insurance policy benefits and other is included in other current liabilities in the consolidated statements of financial position. |
*2 | Mainly includes interests credited to reserves, expenses and mortality charges. |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Balance at beginning of the fiscal year | 631,231 | 683,836 | ||||||
Current portion* | 7,245 | 7,310 | ||||||
Non-current portion | 623,986 | 676,526 | ||||||
New deferred insurance acquisition costs | 109,320 | 110,108 | ||||||
Amortization amount for current period | (69,237 | ) | (84,523 | ) | ||||
Shadow accounting adjustments | 4,505 | 20,604 | ||||||
Currency exchange rate fluctuations | 8,017 | 7,988 | ||||||
Balance at end of the fiscal year | 683,836 | 738,013 | ||||||
Current portion* | 7,310 | 7,149 | ||||||
Non-current portion | 676,526 | 730,864 |
* | The current portion of deferred insurance acquisition costs is included in other current assets in the consolidated statements of financial position. |
(3) | Significant assumptions regarding insurance contracts |
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Discount rate | (0.075%)-6.25% | (0.115%)-6.25% |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Impact on gains (losses) | 6,643 | 15,640 | ||||||
Changes in economic assumptions | 7,091 | 15,378 | ||||||
Changes in non-economic assumptions | (448 | ) | 262 | |||||
Impact on capital | 18,087 | 31,244 | ||||||
Changes in economic assumptions | 16,874 | 30,858 | ||||||
Changes in non-economic assumptions | 1,213 | 386 |
(4) | Insurance-related accounts measured at fair value |
Yen in millions | ||||||||||||
Fair value | Presentation in the consolidated statements of financial position | |||||||||||
Future insurance policy benefits and other | Policyholders’ account in the life insurance business | |||||||||||
March 31, 2022 | 507,699 | 37,382 | 470,317 | |||||||||
March 31, 2023 | 462,684 | 41,214 | 421,470 |
Valuation techniques | Significant unobservable inputs | Range | ||||
March 31, 2022 | March 31, 2023 | |||||
Present value of future expected cash flows | Credit spread* | 47.5bp | 83.6bp | |||
Mortality rates | 0.003% - 35.693% | 0.003% - 37.438% | ||||
Lapse rates | 0% - | 0% - 7.500% |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Balance at beginning of the fiscal year | 536,189 | 507,699 | ||||||
Total (gains) losses *1 : | ||||||||
Included in net income *2 | 830 | (11,740 | ) | |||||
Included in other comprehensive income *3 | (797 | ) | (2,380 | ) | ||||
Issuances | — | — | ||||||
Settlements | (28,523 | ) | (30,895 | ) | ||||
Balance at end of the fiscal year | 507,699 | 462,684 | ||||||
Changes in unrealized gains (losses) relating to future insurance policy benefits and policyholders’ account in the life insurance business still held as of the end of the reporting period included in net income *2 | (13,638 | ) | (501 | ) |
*1 | Gains presented as negative and losses presented as positive. |
*2 | Included in financial services revenue and financial services expense s in the consolidated statements of income. |
*3 | Included in insurance contract valuation adjustments in the consolidated statements of comprehensive income. |
(5) | Insurance and market risks |
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||||||
Presentation in the consolidated balance sheets | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Marketable securities | Securities investments and other | Other current assets | Other noncurrent assets | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Trading securities | 24,330 | 245,790 | — | 270,120 | 270,120 | — | — | — | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
Japanese national government bonds | — | 1,761,929 | — | 1,761,929 | 10,011 | 1,751,918 | — | — | ||||||||||||||||||||||||
Japanese local government bonds | — | 69,172 | — | 69,172 | 15,334 | 53,838 | — | — | ||||||||||||||||||||||||
Japanese corporate bonds | — | 220,679 | 30 | 220,709 | 14,774 | 205,935 | — | — | ||||||||||||||||||||||||
Foreign government bonds *1 | — | 279,777 | — | 279,777 | 2,690 | 277,087 | — | — | ||||||||||||||||||||||||
Foreign corporate bonds *2 | — | 343,980 | 15,770 | 359,750 | 94,156 | 265,594 | — | — | ||||||||||||||||||||||||
Securitized products *3 | — | 33,383 | 171,840 | 205,223 | — | 205,223 | — | — | ||||||||||||||||||||||||
Other | — | 4,152 | 12,101 | 16,253 | — | 16,253 | — | — | ||||||||||||||||||||||||
Equity securities | 950,744 | 581,642 | — | 1,532,386 | 1,434,612 | 97,774 | — | — | ||||||||||||||||||||||||
Other investments *4 | 7,162 | 816 | 9,242 | 17,220 | — | 17,220 | — | — | ||||||||||||||||||||||||
Derivative assets *5 | 1,310 | 41,073 | — | 42,383 | — | — | 40,784 | 1,599 | ||||||||||||||||||||||||
Total assets | 983,546 | 3,582,393 | 208,983 | 4,774,922 | 1,841,697 | 2,890,842 | 40,784 | 1,599 | ||||||||||||||||||||||||
Presentation in the consolidated balance sheets | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Future insurance policy benefits | Policyholders’ account | Other current liabilities | Other noncurrent liabilities | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Future insurance policy benefits and policyholders’ account in the life insurance business *6 | — | — | 532,191 | 532,191 | 64,045 | 468,146 | — | — | ||||||||||||||||||||||||
Derivative liabilities *5 | 2,077 | 33,789 | — | 35,866 | — | — | 16,814 | 19,052 | ||||||||||||||||||||||||
Total liabilities | 2,077 | 33,789 | 532,191 | 568,057 | 64,045 | 468,146 | 16,814 | 19,052 | ||||||||||||||||||||||||
(a) | Insurance risk management |
(b) | Market risk management |
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||
Presentation in the consolidated balance sheets | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Marketable securities | Securities investments and other | Other current assets | Other noncurrent assets | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Trading securities | 30,164 | 258,731 | 0 | 288,895 | 288,895 | 0 | 0 | 0 | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
Japanese national government bonds | 0 | 2,443,266 | 0 | 2,443,266 | 394,295 | 2,048,971 | 0 | 0 | ||||||||||||||||||||||||
Japanese local government bonds | 0 | 74,063 | 0 | 74,063 | 29,624 | 44,439 | 0 | 0 | ||||||||||||||||||||||||
Japanese corporate bonds | 0 | 264,644 | 7,169 | 271,813 | 24,980 | 246,833 | 0 | 0 | ||||||||||||||||||||||||
Foreign government bonds *1 | 0 | 325,856 | 0 | 325,856 | 0 | 325,856 | 0 | 0 | ||||||||||||||||||||||||
Foreign corporate bonds *2 | 0 | 365,029 | 17,845 | 382,874 | 117,209 | 265,665 | 0 | 0 | ||||||||||||||||||||||||
Securitized products *3 | 0 | 44,104 | 154,489 | 198,593 | 0 | 198,593 | 0 | 0 | ||||||||||||||||||||||||
Other | 0 | 21,466 | 24,355 | 45,821 | 0 | 45,821 | 0 | 0 | ||||||||||||||||||||||||
Equity securities | 1,757,134 | 704,214 | 0 | 2,461,348 | 2,044,763 | 416,585 | 0 | 0 | ||||||||||||||||||||||||
Other investments *4 | 7,544 | 4,128 | 9,326 | 20,998 | 0 | 20,998 | 0 | 0 | ||||||||||||||||||||||||
Derivative assets *5 | 261 | 28,476 | 0 | 28,737 | 0 | 0 | 14,412 | 14,325 | ||||||||||||||||||||||||
Total assets | 1,795,103 | 4,533,977 | 213,184 | 6,542,264 | 2,899,766 | 3,613,761 | 14,412 | 14,325 | ||||||||||||||||||||||||
Presentation in the consolidated balance sheets | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Future insurance policy benefits | Policyholders’ account | Other current liabilities | Other noncurrent liabilities | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Future insurance policy benefits and policyholders’ account in the life insurance business *6 | 0 | 0 | 536,189 | 536,189 | 42,309 | 493,880 | 0 | 0 | ||||||||||||||||||||||||
Derivative liabilities *5 | 1,116 | 39,238 | 0 | 40,354 | 0 | 0 | 26,086 | 14,268 | ||||||||||||||||||||||||
Total liabilities | 1,116 | 39,238 | 536,189 | 576,543 | 42,309 | 493,880 | 26,086 | 14,268 | ||||||||||||||||||||||||
* bp = basis point
* bp = basis point |
Yen in millions | ||||||||||||||||||||||||
Fiscal year ended March 31, 2020 | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
Debt securities | Future insurance policy benefits and Policyholders’ account | |||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Japanese corporate bonds | Foreign corporate bonds | Securitized products | Other | Other investments | ||||||||||||||||||||
Beginning balance | 0 | 22,704 | 165,083 | — | 6,918 | — | ||||||||||||||||||
Acquisition of AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd. *1 | — | — | — | — | — | 547,190 | ||||||||||||||||||
Total realized and unrealized gains (losses): | ||||||||||||||||||||||||
Included in earnings (loss) *2 | 0 | 311 | (18,151 | ) | — | (500 | ) | 12,500 | ||||||||||||||||
Included in other comprehensive income (loss) *3 | 0 | (73 | ) | 1 | — | 0 | 3,032 | |||||||||||||||||
Purchases and Issuances | 30 | 13,597 | 40,175 | 12,101 | 4,711 | 5,295 | ||||||||||||||||||
Sales | 0 | 0 | 0 | — | (9 | ) | 0 | |||||||||||||||||
Settlements | 0 | (20,867 | ) | (12,967 | ) | — | (1,878 | ) | (4,762 | ) | ||||||||||||||
Transfers into level 3 *4 | 0 | 3,374 | 0 | — | 0 | 0 | ||||||||||||||||||
Transfers out of level 3 *5 | 0 | (3,276 | ) | (2,301 | ) | — | 0 | 0 | ||||||||||||||||
Ending balance | 30 | 15,770 | 171,840 | 12,101 | 9,242 | 532,191 | ||||||||||||||||||
Changes in unrealized gains (losses) relating to instruments still held at reporting date: | ||||||||||||||||||||||||
Included in earnings (loss) *2 | 0 | (94 | ) | (16,507 | ) | — | (376 | ) | 10,273 |
Yen in millions | ||||||||||||||||||||||||
Fiscal year ended March 31, 2021 | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
Debt securities | Future insurance policy benefits and Policyholders’ account | |||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Japanese corporate bonds | Foreign corporate bonds | Securitized products | Other | Other investments | ||||||||||||||||||||
Beginning balance | 30 | 15,770 | 171,840 | 12,101 | 9,242 | 532,191 | ||||||||||||||||||
Total realized and unrealized gains (losses): | ||||||||||||||||||||||||
Included in earnings (loss)* 2 | 0 | 1,465 | 14,000 | 5,703 | 772 | (16,475 | ) | |||||||||||||||||
Included in other comprehensive income (loss)* 3 | (461 | ) | 73 | 0 | (11 | ) | 0 | (3,120 | ) | |||||||||||||||
Purchases and Issuances | 7,600 | 5,441 | 0 | 11,215 | 28 | 1,996 | ||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | (2 | ) | 0 | |||||||||||||||||
Settlements | 0 | (7,835 | ) | (34,488 | ) | (4,681 | ) | (825 | ) | (17,593 | ) | |||||||||||||
Other | 0 | (1,613 | ) | 1,014 | 28 | 111 | ||||||||||||||||||
Transfers into level 3* 4 | 0 | 4,544 | 2,123 | 0 | 0 | 0 | ||||||||||||||||||
Ending balance | 7,169 | 17,845 | 154,489 | 24,355 | 9,326 | 536,189 | ||||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||
Included in earnings (loss)* 2 | 0 | 600 | 17,419 | 0 | (77 | ) | (29,205 | ) | ||||||||||||||||
Included in other comprehensive income (loss)* 3 | (461 | ) | 14 | 0 | (17 | ) | 0 | (3,120 | ) |
During the fiscal year ended March 31, 2020 | ||||||||||||||||
Estimated fair value | Amounts included in earnings | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Remeasurement of retained investment in SRE | 15,911 | — | — | 13,347 | ||||||||||||
Long-lived assets impairments | 0 | 0 | 8,155 | (36,003 | ) | |||||||||||
(22,656 | ) | |||||||||||||||
During the fiscal year ended March 31, 2021 | ||||||||||||||||
Estimated fair value | Amounts included in earnings | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Long-lived assets impairments | 0 | 0 | 32,033 | (25,685 | ) | |||||||||||
(25,685 | ) | |||||||||||||||
Yen in millions | ||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||
Estimated fair value | Carrying amount | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Housing loans in the banking business | — | 2,161,432 | — | 2,161,432 | 1,927,054 | |||||||||||||||
Total assets | — | 2,161,432 | — | 2,161,432 | 1,927,054 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt including the current portion | — | 699,358 | — | 699,358 | 664,773 | |||||||||||||||
Investment contracts included in policyholders’ account in the life insurance business | — | 969,464 | — | 969,464 | 885,690 | |||||||||||||||
Total liabilities | — | 1,668,822 | — | 1,668,822 | 1,550,463 | |||||||||||||||
Yen in millions | ||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||
Estimated fair value | Carrying amount | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Housing loans in the banking business | — | 0 | 2,559,073 | 2,559,073 | 2,354,546 | |||||||||||||||
Total assets | — | 0 | 2,559,073 | 2,559,073 | 2,354,546 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt including the current portion | — | 911,885 | 39,989 | 951,874 | 904,993 | |||||||||||||||
Investment contracts included in policyholders’ account in the life insurance business | — | 1,159,195 | — | 1,159,195 | 1,103,785 | |||||||||||||||
Total liabilities | — | 2,071,080 | 39,989 | 2,111,069 | 2,008,778 | |||||||||||||||
(b) | Maturity analysis |
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Total | Indefinite Terms | Within 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | More than 5 years | |||||||||||||||||||||||||
Insurance contract liabilities | 25,561,549 | — | 165,028 | 155,586 | 198,370 | 234,987 | 263,679 | 24,543,899 | ||||||||||||||||||||||||
Securities held in the insurance business | 18,536,483 | 2,008,071 | 656,948 | 223,111 | 348,527 | 335,791 | 311,466 | 14,652,569 |
Yen in millions | ||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Total | Indefinite Terms | Within 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | More than 5 years | |||||||||||||||||||||||||
Insurance contract liabilities | 27,737,139 | — | 165,746 | 153,881 | 198,154 | 224,698 | 263,708 | 26,730,952 | ||||||||||||||||||||||||
Securities held in the insurance business | 19,640,244 | 2,408,401 | 636,352 | 367,283 | 345,113 | 322,176 | 428,997 | 15,131,922 |
14. | Short-term borrowings and long-term debt |
March 31, 2022 | ||||||||||||
Book value (Yen in millions) | Weighted average interest rate | Due | ||||||||||
Short-term borrowings | 1,976,553 | 0.18 | % | |||||||||
Long-term debt | ||||||||||||
Long-term loans | 693,603 | 0.70 | % | 2022-2056 | ||||||||
Unsecured bonds | 189,608 | 0.25 | % | 2022-2029 | ||||||||
Unsecured zero coupon convertible bonds | 26,495 | — | % | 2022 | ||||||||
Lease liabilities | 465,349 | 2.10 | % | |||||||||
1,375,055 | ||||||||||||
Less — Portion due within one year | 171,409 | |||||||||||
1,203,646 | ||||||||||||
March 31, 2023 | ||||||||||||
Book value (Yen in millions) | Weighted average interest rate | Due | ||||||||||
Short-term borrowings | 1,914,934 | 1.89 | % | |||||||||
Long-term debt | ||||||||||||
Long-term loans | 1,074,060 | 1.70 | % | 2023-2056 | ||||||||
Unsecured bonds | 349,332 | 0.30 | % | 2023-2029 | ||||||||
Lease liabilities | 532,246 | 2.35 | % | |||||||||
1,955,638 | ||||||||||||
Less — Portion due within one year | 187,942 | |||||||||||
1,767,696 | ||||||||||||
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Securities | 1,490,663 | 1,678,553 | ||||||
Housing loans in the banking business | 782,175 | 829,659 |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Securities | 521,912 | 4,728 |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Securities | 21,271 | 80,328 |
Derivative instruments and hedging activities |
Yen in millions | ||||||||||||||||
March 31, 2022 | March 31, 2023 | |||||||||||||||
Asset derivatives | Liability derivatives | Asset derivatives | Liability derivatives | |||||||||||||
Interest rate contracts | ||||||||||||||||
Interest rate swap agreements | 26,795 | 6,455 | 43,464 | 3,139 | ||||||||||||
Interest rate swaptions agreements | — | 1,075 | 380 | 2,517 | ||||||||||||
Foreign exchange contracts | ||||||||||||||||
Foreign exchange forward contracts | 14,687 | 34,284 | 12,496 | 12,257 | ||||||||||||
Swap agreements | 11,897 | 925 | 3,774 | 5,781 | ||||||||||||
Currency option contracts purchased | 42 | — | 508 | 835 | ||||||||||||
Currency option contracts written | — | 172 | — | 5 | ||||||||||||
Other currency contracts | 3,578 | 1,201 | 4,540 | 998 | ||||||||||||
Equity contracts | ||||||||||||||||
Equity future contracts | — | 11,903 | 290 | 3,321 | ||||||||||||
Equity swap agreements | — | 16,105 | — | 5,270 | ||||||||||||
Option contracts purchased | 4,024 | — | 4,692 | — | ||||||||||||
Total derivatives | 61,023 | 72,120 | 70,144 | 34,123 | ||||||||||||
Derivatives designated as hedging instruments | Yen in millions | |||||||||||||||||||
Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||||||||
March 31 | March 31 | |||||||||||||||||||
Asset derivatives | 2020 | 2021 | Liability derivatives | 2020 | 2021 | |||||||||||||||
Interest rate contracts | Prepaid expenses and other current assets | 9 | — | Current liabilities: Other | 183 | 286 | ||||||||||||||
Interest rate contracts | Other assets: Other | 27 | 10,921 | Liabilities: Other | 8,177 | 6,064 | ||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | 1,799 | 8 | Current liabilities: Other | — | 6,000 | ||||||||||||||
1,835 | 10,929 | 8,360 | 12,350 | |||||||||||||||||
Derivatives not designated as hedging instruments | Yen in millions | |||||||||||||||||||
Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||||||||
March 31 | March 31 | |||||||||||||||||||
Asset derivatives | 2020 | 2021 | Liability derivatives | 2020 | 2021 | |||||||||||||||
Interest rate contracts | Prepaid expenses and other current assets | 44 | 50 | Current liabilities: Other | 200 | 408 | ||||||||||||||
Interest rate contracts | Other assets: Other | 1,523 | 1,817 | Liabilities: Other | 9,120 | 8,204 | ||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | 19,655 | 14,097 | Current liabilities: Other | 14,580 | 14,233 | ||||||||||||||
Foreign exchange contracts | Other assets: Other | 49 | 1,587 | Liabilities: Other | 1,755 | 0 | ||||||||||||||
Equity contracts | Prepaid expenses and other current assets | 18,886 | 240 | Current liabilities: Other | 1,476 | 5,157 | ||||||||||||||
Bond contracts | Prepaid expenses and other current assets | 306 | 17 | Current liabilities: Other | 290 | 2 | ||||||||||||||
Commodity contracts | Prepaid expenses and other current assets | 85 | 0 | Current liabilities: Other | 85 | 0 | ||||||||||||||
40,548 | 17,808 | 27,506 | 28,004 | |||||||||||||||||
Total derivatives | 42,383 | 28,737 | 35,866 | 40,354 | ||||||||||||||||
Yen in millions | ||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||
Notional amounts | Fair Value | |||||||||||||||||||||||
Within 1 Year | Over 1 Year | Total | Asset derivatives | Liability derivatives | Balance sheet location | |||||||||||||||||||
Cash flow hedging relationships | ||||||||||||||||||||||||
Foreign exchange forward contracts | 138,135 | — | 138,135 | — | 7,618 | Current liabilities: Other financial liabilities | | |||||||||||||||||
Average rate (JPY/USD) | 115.3 | — | ||||||||||||||||||||||
Currency option bought contracts | 4,830 | — | 4,830 | 28 | — | Current assets: Other financial assets | | |||||||||||||||||
Average rate (JPY/USD) | 115.0 | — | ||||||||||||||||||||||
Currency option sold contracts | 4,975 | — | 4,975 | — | 161 | | Current liabilities: Other financial liabilities | | ||||||||||||||||
Average rate (JPY/USD) | 118.5 | — | ||||||||||||||||||||||
Interest rate swap agreements | — | 146,778 | 146,778 | 17,987 | — | Non-current assets: Other financial assets | | |||||||||||||||||
Average rate | — | 1.5 | % |
Derivatives under fair value hedging relationships | Yen in millions | |||||||||||||
Location of gains or (losses) recognized in income on derivative instruments | Amounts of gains or (losses) recognized in income on derivative instruments | |||||||||||||
Fiscal year ended March 31 | ||||||||||||||
2019 | 2020 | 2021 | ||||||||||||
Interest rate contracts | Financial services revenue | (1,835 | ) | (3,925 | ) | (1,189 | ) | |||||||
Total | (1,835 | ) | (3,925 | ) | (1,189 | ) | ||||||||
Yen in millions | ||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||
Notional amounts | Fair Value | |||||||||||||||||||||||
Within 1 Year | Over 1 Year | Total | Asset derivatives | Liability derivatives | Balance sheet location | |||||||||||||||||||
Cash flow hedging relationships | ||||||||||||||||||||||||
Foreign exchange forward contracts | 70,125 | — | 70,125 | 458 | — | Current assets: Other financial assets | | |||||||||||||||||
Average rate (JPY/USD) | 131.3 | — | ||||||||||||||||||||||
Currency option bought contracts | 45,789 | — | 45,789 | 502 | — | Current assets: Other financial assets | | |||||||||||||||||
Average rate (JPY/USD) | 125.8 | — | ||||||||||||||||||||||
Currency option sold contracts | 47,995 | — | 47,995 | — | 835 | | Current liabilities: Other financial liabilities | | ||||||||||||||||
Average rate (JPY/USD) | 131.9 | — | ||||||||||||||||||||||
Interest rate swap agreements | — | 159,918 | 159,918 | 28,513 | — | Non-current assets: Other financial assets | | |||||||||||||||||
Average rate | — | 1.5 | % |
Yen in millions | ||||||||||||
Derivatives under cash flow hedging relationships | Fiscal year ended March 31 | |||||||||||
2019 | 2020 | 2021 | ||||||||||
Amounts recognized in unrealized gains (losses) on derivative instruments in OCI (before tax) | ||||||||||||
Interest rate contracts: | ||||||||||||
Components included in the assessment of hedge effectiveness | 0 | 0 | 10,153 | |||||||||
Foreign exchange contracts: | ||||||||||||
Components included in the assessment of hedge effectiveness | 2,315 | 1,712 | (2,210 | ) | ||||||||
Components excluded from the assessment of hedge effectiveness that were recognized based on amortization approach | 0 | 1,087 | 263 | |||||||||
Total | 2,315 | 2,799 | 8,206 | |||||||||
Yen in millions | ||||||||||||||
Derivatives under cash flow hedging relationships | Affected line item in consolidated statements of income | Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||||
Amounts reclassified from unrealized gains (losses) on derivative instruments in accumulated OCI (before tax) | ||||||||||||||
Interest rate contracts: | ||||||||||||||
Components included in the assessment of hedge effectiveness | Interest | 0 | 0 | 285 | ||||||||||
Foreign exchange contracts: | — | |||||||||||||
Components included in the assessment of hedge effectiveness | Cost of sales | (1,093 | ) | — | 0 | |||||||||
Components included in the assessment of hedge effectiveness | Net sales | 0 | 106 | (5,382 | ) | |||||||||
Components excluded from the assessment of hedge effectiveness that were recognized based on amortization approach | Net sales | — | (1,087 | ) | (263 | ) | ||||||||
Total | (1,093 | ) | (981 | ) | (5,360 | ) | ||||||||
Derivatives not designated as hedging instruments | Yen in millions | |||||||||||||
Location of gains or (losses) recognized in income on derivative instruments | Amounts of gains or (losses) recognized in income on derivative instruments | |||||||||||||
Fiscal year ended March 31 | ||||||||||||||
2019 | 2020 | 2021 | ||||||||||||
Interest rate contracts | Financial services revenue | (3,192 | ) | 1,190 | (9,603 | ) | ||||||||
Foreign exchange contracts | Financial services revenue | (8,198 | ) | 2,473 | (10,730 | ) | ||||||||
Foreign exchange contracts | Foreign exchange loss, net | (7,437 | ) | 10,184 | (8,454 | ) | ||||||||
Equity contracts | Financial services revenue | (7,649 | ) | 15,438 | (85,118 | ) | ||||||||
Bond contracts | Financial services revenue | — | (2,954 | ) | 99 | |||||||||
Commodity contracts | Financial services revenue | — | 110 | 4,790 | ||||||||||
Total | (26,476 | ) | 26,441 | (109,016 | ) | |||||||||
Yen in millions | ||||||||||||
Foreign exchange contracts | Interest rate contracts | Total | ||||||||||
Balance as of April 1, 2021 | (4,282 | ) | 5,581 | 1,299 | ||||||||
Changes in fair value of hedging instruments recognized in other comprehensive income | (14,645 | ) | 6,942 | (7,703 | ) | |||||||
Reclassification adjustments to profit (loss) for the year *1,2 | 12,886 | 1,643 | 14,529 | |||||||||
Deferred tax | 538 | (2,629 | ) | (2,091 | ) | |||||||
Balance as of March 31, 2022 | (5,503 | ) | 11,537 | 6,034 | ||||||||
Changes in fair value of hedging instruments recognized in other comprehensive income | (26,950 | ) | 13,975 | (12,975 | ) | |||||||
Reclassification adjustments to profit (loss) for the year *1,2 | 34,825 | (4,012 | ) | 30,813 | ||||||||
Deferred tax | (2,408 | ) | (3,051 | ) | (5,459 | ) | ||||||
Balance as of March 31, 2023 | (36 | ) | 18,449 | 18,413 | ||||||||
*1 | In the consolidated statements of income, the amount reclassified to profit (loss) is included in sales for hedges of foreign exchange contracts and in financial expenses for hedges of interest rate contracts. |
*2 | For the fiscal years ended March 31, 2022 and 2023, hedge ineffectiveness recognized in profit or loss was not material. |
Derivatives under fair value hedging relationships | Yen in millions | |||||||||
Balance sheet location of hedged items | March 31, 2020 | |||||||||
Amortized cost | Cumulative effect to carrying amount of hedged items by fair value hedges | |||||||||
Interest rate contracts | Marketable securities | 15,255 | — | |||||||
Interest rate contracts | Securities investments and other | 91,080 | — | |||||||
Total | 106,335 | — | ||||||||
Derivatives under fair value hedging relationships | Yen in millions | |||||||||
Balance sheet location of hedged items | March 31, 2021 | |||||||||
Amortized cost | Cumulative effect to carrying amount of hedged items by fair value hedges | |||||||||
Interest rate contracts | Marketable securities | 30,167 | 0 | |||||||
Interest rate contracts | Securities investments and other | 74,872 | 0 | |||||||
Total | 105,039 | 0 | ||||||||
Yen in millions | ||||||||||||||||
March 31, 2020 | March 31, 2021 | |||||||||||||||
Notional amount | Fair value | Notional amount | Fair value | |||||||||||||
Foreign exchange contracts: | ||||||||||||||||
Foreign exchange forward contracts* | 989,966 | 3,201 | 1,176,589 | (5,420 | ) | |||||||||||
Currency option contracts purchased | 473 | 7 | 36,234 | 15 | ||||||||||||
Currency option contracts written | 460 | (5 | ) | 36,164 | (1,790 | ) | ||||||||||
Currency swap agreements | 893,874 | (1,006 | ) | 612,813 | 490 | |||||||||||
Other currency contracts* | 62,080 | 2,971 | 68,663 | 2,164 | ||||||||||||
Interest rate contracts: | ||||||||||||||||
Interest rate swap agreements | 994,133 | (16,019 | ) | 979,554 | (1,969 | ) | ||||||||||
Interest rate swaption agreements | 18,700 | (58 | ) | 38,700 | (205 | ) | ||||||||||
Equity contracts: | ||||||||||||||||
Equity future contracts | 63,354 | (871 | ) | 129,526 | (746 | ) | ||||||||||
Equity swap agreements | 103,409 | 18,281 | 117,055 | (4,171 | ) | |||||||||||
Bond contracts: | ||||||||||||||||
Bond future contracts | 56,546 | 16 | 169,441 | 15 | ||||||||||||
Commodity contracts: | ||||||||||||||||
Commodity future contracts | 1,465 | 0 | 2,957 | (0 | ) |
Yen in millions | ||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||
Gross amounts recognized financial assets and financial liabilities | Amount s offsetin the consolidated statements of financial position | Net amounts presented in the consolidated statements of financial position | Gross amounts not offset in the consolidated statements of financial position | |||||||||||||||||||||
Financial instruments | Cash collateral | Net amounts | ||||||||||||||||||||||
Derivative assets *1 | 37,847 | — | 37,847 | 24,504 | 10,782 | 2,561 | ||||||||||||||||||
Trade receivables *2 | 30,370 | 26,739 | 3,631 | — | — | 3,631 | ||||||||||||||||||
Total assets | 68,217 | 26,739 | 41,478 | 24,504 | 10,782 | 6,192 | ||||||||||||||||||
Derivative liabilities *1 | 72,004 | — | 72,004 | 33,514 | 29,530 | 8,960 | ||||||||||||||||||
Trade payables *2 | 60,056 | 26,739 | 33,317 | — | — | 33,317 | ||||||||||||||||||
Short-term borrowings *3 | 1,272,040 | — | 1,272,040 | 1,269,188 | — | 2,852 | ||||||||||||||||||
Total liabilities | 1,404,100 | 26,739 | 1,377,361 | 1,302,702 | 29,530 | 45,129 | ||||||||||||||||||
Yen in millions | ||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||
Gross amounts recognized financial assets and financial liabilities | Amounts offset in the consolidated statements of financial position | Net amounts presented in the consolidated statements of financial position | Gross amounts not offset in the consolidated statements of financial position | |||||||||||||||||||||
Financial instruments | Cash collateral | Net amounts | ||||||||||||||||||||||
Derivative assets *1 | 34,382 | — | 34,382 | 16,430 | 13,852 | 4,100 | ||||||||||||||||||
Trade receivables *2 | 175,872 | 174,930 | 942 | — | — | 942 | ||||||||||||||||||
Total assets | 210,254 | 174,930 | 35,324 | 16,430 | 13,852 | 5,042 | ||||||||||||||||||
Derivative liabilities *1 | 31,997 | — | 31,997 | 21,700 | 5,216 | 5,081 | ||||||||||||||||||
Trade payables *2 | 281,295 | 174,930 | 106,365 | — | — | 106,365 | ||||||||||||||||||
Short-term borrowings *3 | 1,557,652 | — | 1,557,652 | 1,556,595 | — | 1,057 | ||||||||||||||||||
Total liabilities | 1,870,944 | 174,930 | 1,696,014 | 1,578,295 | 5,216 | 112,503 | ||||||||||||||||||
Yen in millions | ||||||||||||||||
As of March 31, 2020 | ||||||||||||||||
Gross amounts presented in the consolidated balance sheet | Gross amounts not offset in the consolidated balance sheet that are subject to master netting agreements | |||||||||||||||
Financial instruments | Cash collateral | Net amounts | ||||||||||||||
Derivative assets subject to master netting agreements | 38,281 | 12,614 | 20,545 | 5,122 | ||||||||||||
Derivative assets not subject to master netting agreements | 4,102 | 4,102 | ||||||||||||||
Total assets | 42,383 | 12,614 | 20,545 | 9,224 | ||||||||||||
Derivative liabilities subject to master netting agreements | 31,896 | 7,086 | 23,873 | 937 | ||||||||||||
Derivative liabilities not subject to master netting agreements | 3,970 | 3,970 | ||||||||||||||
Repurchase, securities lending and similar arrangements | 567,194 | 564,874 | — | 2,320 | ||||||||||||
Total liabilities | 603,060 | 571,960 | 23,873 | 7,227 | ||||||||||||
Yen in millions | ||||||||||||||||
As of March 31, 2021 | ||||||||||||||||
Gross amounts presented in the consolidated balance sheet | Gross amounts not offset in the consolidated balance sheet that are subject to master netting agreements | |||||||||||||||
Financial instruments | Cash collateral | Net amounts | ||||||||||||||
Derivative assets subject to master netting agreements | 15,159 | 10,666 | 2,008 | 2,485 | ||||||||||||
Derivative assets not subject to master netting agreements | 13,578 | 13,578 | ||||||||||||||
Securities borrowing and securities lending transactions | 326,156 | 326,156 | — | |||||||||||||
Total assets | 354,893 | 336,822 | 2,008 | 16,063 | ||||||||||||
Derivative liabilities subject to master netting agreements | 38,966 | 11,052 | 16,225 | 11,689 | ||||||||||||
Derivative liabilities not subject to master netting agreements | 1,388 | 1,388 | ||||||||||||||
Repurchase, securities lending and similar arrangements | 917,792 | 911,881 | 0 | 5,911 | ||||||||||||
Total liabilities | 958,146 | 922,933 | 16,225 | 18,988 | ||||||||||||
*2 | Amounts offset in the consolidated statements of financial position are related to repurchase agreements of products. |
*3 | Short-term borrowings relate to repurchase agreements (repos). |
17. | Employee benefits |
(1) | Defined benefit and severance plans |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Service cost | 23,128 | 17,948 | 12,763 | |||||||||
Interest cost | 7,020 | 4,162 | 3,684 | |||||||||
Expected return on plan assets | (16,695 | ) | (17,040 | ) | (10,802 | ) | ||||||
Recognized actuarial loss | 15,365 | 12,969 | 8,852 | |||||||||
Amortization of prior service costs | (7,864 | ) | (4,294 | ) | (343 | ) | ||||||
Losses on curtailments and settlements | — | 6,358 | — | |||||||||
Net periodic benefit costs | 20,954 | 20,103 | 14,154 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Service cost | 2,780 | 3,616 | 2,767 | |||||||||
Interest cost | 10,083 | 9,212 | 6,509 | |||||||||
Expected return on plan assets | (11,797 | ) | (10,916 | ) | (6,395 | ) | ||||||
Recognized actuarial loss | 2,656 | 2,606 | 3,614 | |||||||||
Amortization of prior service costs | (269 | ) | 2 | 1,058 | ||||||||
Losses on curtailments and settlements | 1,804 | 68 | 2,128 | |||||||||
Net periodic benefit costs | 5,257 | 4,588 | 9,681 | |||||||||
Japanese plans | Foreign plans | |||||||||||||||
Yen in millions | Yen in millions | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of the fiscal year | 1,034,954 | 658,863 | 351,918 | 359,811 | ||||||||||||
Service cost | 17,948 | 12,763 | 3,616 | 2,767 | ||||||||||||
Interest cost | 4,162 | 3,684 | 9,212 | 6,509 | ||||||||||||
Plan participants’ contributions | — | — | 487 | 269 | ||||||||||||
Plan amendments | — | — | 10,210 | 157 | ||||||||||||
Actuarial (gain) loss | (3,330 | ) | 271 | 19,776 | 32,432 | |||||||||||
Foreign currency exchange rate changes | — | — | (16,919 | ) | 29,486 | |||||||||||
Curtailments and settlements | (359,205 | ) | 0 | (4,434 | ) | (14,587 | ) | |||||||||
Other | 2 | 43 | — | 0 | ||||||||||||
Benefits paid | (35,668 | ) | (35,563 | ) | (14,055 | ) | (18,555 | ) | ||||||||
Benefit obligation at end of the fiscal year | 658,863 | 640,061 | 359,811 | 398,289 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of the fiscal year | 742,204 | 437,206 | 274,749 | 281,110 | ||||||||||||
Actual return on plan assets | 2,942 | 59,536 | 26,738 | (596 | ) | |||||||||||
Foreign currency exchange rate changes | — | 0 | (14,904 | ) | 25,433 | |||||||||||
Employer contribution | 7,453 | 2,333 | 9,916 | 38,169 | ||||||||||||
Plan participants’ contributions | — | 0 | 487 | 269 | ||||||||||||
Curtailments and settlements | (284,333 | ) | 0 | (3,146 | ) | (11,927 | ) | |||||||||
Benefits paid | (31,060 | ) | (22,664 | ) | (12,730 | ) | (16,967 | ) | ||||||||
Fair value of plan assets at end of the fiscal year | 437,206 | 476,411 | 281,110 | 315,491 | ||||||||||||
Funded status at end of the fiscal year | (221,657 | ) | (163,650 | ) | (78,701 | ) | (82,798 | ) | ||||||||
Japanese plans | Foreign plans | |||||||||||||||
Yen in millions | Yen in millions | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Noncurrent assets | 3,391 | 5,746 | 24,777 | 13,660 | ||||||||||||
Current liabilities | — | — | (4,355 | ) | (12,364 | ) | ||||||||||
Noncurrent liabilities | (225,048 | ) | (169,396 | ) | (99,123 | ) | (84,094 | ) | ||||||||
Ending balance | (221,657 | ) | (163,650 | ) | (78,701 | ) | (82,798 | ) | ||||||||
Yen in millions | ||||||||||||||||
Japanese plans | Foreign plans | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Present value of defined benefit obligations | 614,763 | 573,143 | 277,903 | 124,702 | ||||||||||||
Fair value of plan assets | (474,933 | ) | (447,747 | ) | (198,791 | ) | (56,987 | ) | ||||||||
The impact of minimum funding requirement and asset ceiling | 4,870 | 6,897 | 2,491 | 3,455 | ||||||||||||
Net amount | 144,700 | 132,293 | 81,603 | 71,170 | ||||||||||||
Amount recognized in the consolidated statements of financial position | ||||||||||||||||
Net defined benefit asset | (21,057 | ) | (28,334 | ) | (6,544 | ) | (1,775 | ) | ||||||||
Net defined benefit liability | 165,757 | 160,627 | 88,147 | 72,945 | ||||||||||||
Net amount | 144,700 | 132,293 | 81,603 | 71,170 | ||||||||||||
Yen in millions | ||||||||||||||||
Japanese plans | Foreign plans | |||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Beginning balance of the fiscal year | 640,061 | 614,763 | 371,239 | 277,903 | ||||||||||||
Current service cost | 12,868 | 12,660 | 2,424 | 2,319 | ||||||||||||
Past service cost | 4 | 5 | (34 | ) | (365 | ) | ||||||||||
Interest cost | 3,751 | 4,367 | 5,117 | 4,623 | ||||||||||||
Remeasurements: | ||||||||||||||||
Change in demographic assumptions | (536 | ) | 2,974 | 630 | (458 | ) | ||||||||||
Change in financial assumptions | (8,594 | ) | (27,314 | ) | (16,789 | ) | (60,179 | ) | ||||||||
Other | (95 | ) | (569 | ) | (91 | ) | (940 | ) | ||||||||
Translation adjustments | — | — | 19,372 | 11,213 | ||||||||||||
Plan participants’ contributions | — | — | 333 | 516 | ||||||||||||
Benefits paid | (32,909 | ) | (33,741 | ) | (38,923 | ) | (9,798 | ) | ||||||||
Curtailments and settlements * | — | — | (65,375 | ) | (100,132 | ) | ||||||||||
Other | 213 | (2 | ) | — | — | |||||||||||
Ending balance of the fiscal year | 614,763 | 573,143 | 277,903 | 124,702 | ||||||||||||
* | Curtailments and settlements of the foreign plans for the fiscal year ended March 31, 2022 relate mainly to the termination of the defined benefit pension plan at certain U.S. subsidiaries. Curtailments and settlements of the foreign plans for the fiscal year ended March 31, 2023 relate mainly to the termination of the defined benefit pension plan at certain U.K. subsi di aries. |
Japanese plans | Foreign plans | |||||||||||||||
Yen in millions | Yen in millions | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Prior service cost (credit) | (369 | ) | (26 | ) | 10,058 | 9,350 | ||||||||||
Net actuarial loss | 223,354 | 163,401 | 66,326 | 102,821 | ||||||||||||
Ending balance | 222,985 | 163,375 | 76,384 | 112,171 | ||||||||||||
Japanese plans | Foreign plans | |||||||||||||||
Yen in millions | Yen in millions | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Accumulated benefit obligations | 654,209 | 635,285 | 354,100 | 392,375 |
Japanese plans | Foreign plans | |||||||||||||||
Yen in millions | Yen in millions | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Accumulated benefit obligations | 640,890 | 621,296 | 226,080 | 200,020 | ||||||||||||
Fair value of plan assets | 420,497 | 456,662 | 130,955 | 109,468 |
Japanese plans | Foreign plans | |||||||||||||||
Yen in millions | Yen in millions | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Projected benefit obligations | 645,544 | 626,057 | 234,652 | 205,915 | ||||||||||||
Fair value of plan assets | 420,497 | 456,662 | 131,546 | 109,468 |
Japanese plans | Foreign plans | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Discount rate | 0.6 | % | 0.6 | % | 2.0 | % | 1.4 | % | ||||||||
Interest crediting rate | 3.4 | 3.4 | 4.8 | 4.8 | ||||||||||||
Rate of compensation increase | 0* | 0* | 2.2 | 2.5 |
Japanese plans | Foreign plans | |||||||||||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||||||||||
2019 | 2020 | 2021 | 2019 | 2020 | 2021 | |||||||||||||||||||
Discount rate | 0.8 | % | 0.6 | % | 0.6 | % | 2.9 | % | 2.8 | % | 2.0 | % | ||||||||||||
Expected return on plan assets | 2.6 | 2.6 | 2.5 | 4.4 | 4.2 | 2.3 | ||||||||||||||||||
Interest crediting rate | 3.5 | 3.5 | 3.4 | 4.8 | 4.8 | 4.8 | ||||||||||||||||||
Rate of compensation increase | 0* | 0* | 0* | 2.6 | 2.3 | 2.2 |
Japanese plans | Foreign plans | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Weighted average duration of defined benefit obligations | 11.5 years | 11.2 years | 15.7 years | 12.2 years |
|
Yen in millions | ||||||||||||||||
Japanese plans | Foreign plans | |||||||||||||||
March 31 | March 31 | |||||||||||||||
Change in assumptions | 2022 | 2023 | 2022 | 2023 | ||||||||||||
Discount rate | ||||||||||||||||
0.25% decrease | 18,069 | 16,042 | 11,055 | 3,487 | ||||||||||||
0.25% increase | (15,372 | ) | (13,201 | ) | (10,439 | ) | (3,316 | ) |
Yen in millions | ||||||||||||||||
Japanese plans | Foreign plans | |||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Beginning balance of the fiscal year | 476,411 | 474,933 | 288,394 | 198,791 | ||||||||||||
Interest income | 3,026 | 3,649 | 3,955 | 2,804 | ||||||||||||
Remeasurements: | ||||||||||||||||
Return on plan assets excluding interest income | 17,617 | (13,378 | ) | (10,121 | ) | (43,173 | ) | |||||||||
Translation adjustments | — | — | 13,880 | 5,760 | ||||||||||||
Employer contribution | 2,476 | 5,650 | 4,573 | 3,444 | ||||||||||||
Plan participants’ contributions | — | — | 333 | 516 | ||||||||||||
Benefits paid | (24,597 | ) | (23,107 | ) | (37,545 | ) | (8,240 | ) | ||||||||
Refunds from the plans | — | — | (5,005 | ) | — | |||||||||||
Curtailments and settlements * | — | — | (59,673 | ) | (102,915 | ) | ||||||||||
Ending balance of the fiscal year | 474,933 | 447,747 | 198,791 | 56,987 | ||||||||||||
* | Curtailments and settlements of the foreign plans for the fiscal year ended March 31, 2022 relate mainly to the termination of the defined benefit pension plan at certain U.S. subsidiaries. Curtailments and settlements of the foreign plans for the fiscal year ended March 31, 2023 relate mainly to the termination of the defined benefit pension plan at certain U.K. subsidiaries. |
Japanese plans | ||||||||||||||||
Yen in millions | ||||||||||||||||
Fair value at March 31, 2020 | Fair value measurements using inputs considered as | |||||||||||||||
Asset class | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash and cash equivalents | 24,851 | 24,851 | — | — | ||||||||||||
Equity: | ||||||||||||||||
Equity securities *1 | 50,646 | 47,308 | 3,338 | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds *2 | 107,478 | 1,087 | 106,391 | — | ||||||||||||
Corporate bonds *3 | 71,192 | 20 | 71,172 | — | ||||||||||||
Asset-backed securities *4 | 1,090 | — | 1,090 | — | ||||||||||||
Commingled funds *5 | 58,740 | — | 58,740 | — | ||||||||||||
Commodity funds *6 | 21,823 | — | 21,823 | — | ||||||||||||
Private equity *7 | 30,191 | — | — | 30,191 | ||||||||||||
Hedge funds *8 | 48,410 | — | — | 48,410 | ||||||||||||
Real estate and other *9 | 22,785 | — | (2,586 | ) | 25,371 | |||||||||||
Total | 437,206 | 73,266 | 259,968 | 103,972 | ||||||||||||
Japanese plans | ||||||||||||||||
Yen in millions | ||||||||||||||||
Fair value at March 31, 2021 | Fair value measurements using inputs considered as | |||||||||||||||
Asset class | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash and cash equivalents | 53,298 | 53,298 | — | — | ||||||||||||
Equity: | ||||||||||||||||
Equity securities *1 | 63,927 | 59,946 | 3,981 | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds *2 | 116,687 | 1,149 | 115,538 | — | ||||||||||||
Corporate bonds *3 | 30,348 | 19 | 30,329 | — | ||||||||||||
Asset-backed securities *4 | 1,029 | — | 1,029 | — | ||||||||||||
Commingled funds *5 | 89,281 | — | 89,281 | — | ||||||||||||
Commodity funds *6 | 22,283 | — | 22,283 | — | ||||||||||||
Private equity *7 | 29,153 | — | — | 29,153 | ||||||||||||
Hedge funds *8 | 47,384 | — | — | 47,384 | ||||||||||||
Real estate and other *9 | 23,021 | — | (2,488 | ) | 25,509 | |||||||||||
Tota l | 476,411 | 114,412 | 259,953 | 102,046 | ||||||||||||
Yen in millions | ||||||||||||
Japanese plans | ||||||||||||
March 31 2022 | Market price in active market | |||||||||||
Asset class | Quoted | Unquoted | ||||||||||
Cash and cash equivalents | 13,843 | 13,843 | — | |||||||||
Equity securities *1 | 31,660 | 28,175 | 3,485 | |||||||||
Fixed income: | ||||||||||||
Government bonds *2 | 10,005 | 1,122 | 8,883 | |||||||||
Corporate bonds *3 | 4,222 | 31 | 4,191 | |||||||||
Commingled funds *4 | 316,319 | — | 316,319 | |||||||||
Private equity | 49,777 | — | 49,777 | |||||||||
Hedge funds | 49,107 | — | 49,107 | |||||||||
Total | 474,933 | 43,171 | 431,762 | |||||||||
Yen in millions | ||||||||||||
Japanese plans | ||||||||||||
March 31 2023 | Market price in active market | |||||||||||
Asset class | Quoted | Unquoted | ||||||||||
Cash and cash equivalents | 18,060 | 18,060 | — | |||||||||
Equity securities *1 | 37,562 | 33,335 | 4,227 | |||||||||
Fixed income: | ||||||||||||
Government bonds *2 | 10,369 | 975 | 9,394 | |||||||||
Corporate bonds *3 | 4,587 | 25 | 4,562 | |||||||||
Commingled funds *4 | 287,978 | — | 287,978 | |||||||||
Private equity | 40,612 | — | 40,612 | |||||||||
Hedge funds | 48,579 | — | 48,579 | |||||||||
Total | 447,747 | 52,395 | 395,352 | |||||||||
*1 |
*2 | Includes approximately of debt securities issued by foreign national and local governments |
*3 | Includes debt securities issued by Japanese and foreign corporation s |
*4 | Commingled funds represent pooled institutional investments, including primarily investment trusts. |
Yen in millions | ||||||||||||
Foreign plans | ||||||||||||
March 31 2022 | Market price in active market | |||||||||||
Asset class | Quoted | Unquoted | ||||||||||
Cash and cash equivalents | 2,350 | 2,350 | — | |||||||||
Equity securities *1 | 61 | 61 | — | |||||||||
Fixed income: | ||||||||||||
Government bonds *2 | 19,141 | — | 19,141 | |||||||||
Corporate bonds *3 | 23,546 | — | 23,546 | |||||||||
Asset-backed securities | 63 | — | 63 | |||||||||
Insurance contracts *4 | 129,084 | 432 | 128,652 | |||||||||
Commingled funds *5 | 22,316 | — | 22,316 | |||||||||
Real estate and other | 2,230 | 8 | 2,222 | |||||||||
Total | 198,791 | 2,851 | 195,940 | |||||||||
Yen in millions | ||||||||||||
Foreign plans | ||||||||||||
March 31 2023 | Market price in active market | |||||||||||
Asset class | Quoted | Unquoted | ||||||||||
Cash and cash equivalents | 2,403 | 2,403 | — | |||||||||
Equity securities *1 | 65 | 65 | — | |||||||||
Fixed income: | ||||||||||||
Government bonds *2 | 2,135 | — | 2,135 | |||||||||
Corporate bonds *3 | 12,052 | — | 12,052 | |||||||||
Asset-backed securities | 61 | — | 61 | |||||||||
Insurance contracts *4 | 19,401 | 341 | 19,060 | |||||||||
Commingled funds *5 | 18,113 | — | 18,113 | |||||||||
Real estate and other | 2,757 | 8 | 2,749 | |||||||||
Total | 56,987 | 2,817 | 54,170 | |||||||||
*1 | Includes primarily |
*2 | Includes primarily foreign government debt securities. |
*3 | Includes primarily foreign corporate debt securities. |
*4 | Represents annuity contracts with or without profit sharing and bulk insurance contracts. |
*5 | Commingled funds represent pooled institutional investments, including primarily investment trusts. |
Yen in millions | ||||||||||||||||
Japanese plans | Foreign plans | |||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Beginning balance of the fiscal year | 3,990 | 4,870 | 13,156 | 2,491 | ||||||||||||
Interest income | 25 | 39 | 187 | 65 | ||||||||||||
Remeasurements: | ||||||||||||||||
Change in asset ceiling excluding interest income | 855 | 1,988 | (11,018 | ) | 811 | |||||||||||
Translation adjustments | — | — | 166 | 88 | ||||||||||||
Ending balance of the fiscal year | 4,870 | 6,897 | 2,491 | 3,455 | ||||||||||||
Foreign plans | ||||||||||||||||
Yen in millions | ||||||||||||||||
Fair value at March 31, 2020 | Fair value measurements using inputs considered as | |||||||||||||||
Asset class | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash and cash equivalents | 4,632 | 4,632 | — | — | ||||||||||||
Equity: | ||||||||||||||||
Equity securities *1 | 18,380 | 17,762 | 618 | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds *2 | 93,826 | — | 93,826 | — | ||||||||||||
Corporate bonds *3 | 31,769 | — | 31,769 | — | ||||||||||||
Asset-backed securities | 1,320 | — | 1,320 | — | ||||||||||||
Insurance contracts *4 | 19,334 | — | 7,156 | 12,178 | ||||||||||||
Commingled funds *5 | 78,280 | — | 78,280 | — | ||||||||||||
Real estate and other *6 | 33,569 | — | 11,272 | 22,297 | ||||||||||||
Total | 281,110 | 22,394 | 224,241 | 34,475 | ||||||||||||
Foreign plans | ||||||||||||||||
Yen in millions | ||||||||||||||||
Fair value at March 31, 2021 | Fair value measurements using inputs considered as | |||||||||||||||
Asset class | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash and cash equivalents | 5,914 | 5,914 | — | — | ||||||||||||
Equity: | ||||||||||||||||
Equity securities *1 | 11,349 | 10,631 | 718 | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds *2 | 18,843 | — | 18,843 | — | ||||||||||||
Corporate bonds *3 | 59,071 | — | 59,071 | — | ||||||||||||
Asset-backed securities | 120 | — | 120 | — | ||||||||||||
Insurance contracts *4 | 156,567 | — | 7,480 | 149,087 | ||||||||||||
Commingled funds *5 | 59,867 | — | 59,867 | — | ||||||||||||
Other | 3,760 | — | 69 | 3,691 | ||||||||||||
Total | 315,491 | 16,545 | 146,168 | 152,778 | ||||||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Japanese plans | 10,992 | 11,137 | 11,461 | |||||||||
Foreign plans | 9,639 | 11,154 | 17,271 |
(3) | Employee benefits expenses |
Japanese plans | ||||||||||||||||
Yen in millions | ||||||||||||||||
Fair value measurement using significant unobservable inputs (Level 3) | ||||||||||||||||
Private equity | Hedge funds | Real estate and other | Total | |||||||||||||
Beginning balance at April 1, 2019 | 27,956 | 71,606 | 21,392 | 120,954 | ||||||||||||
Return on assets held at end of year | 2,649 | (648 | ) | 418 | 2,419 | |||||||||||
Purchases, sales, and settlements, net | (414 | ) | (22,548 | ) | 3,561 | (19,401 | ) | |||||||||
Ending balance at March 31, 2020 | 30,191 | 48,410 | 25,371 | 103,972 | ||||||||||||
Return on assets held at end of year | 7,793 | 4,199 | 1,558 | 13,550 | ||||||||||||
Purchases, sales, and settlements, net | (1,083 | ) | (4,182 | ) | 178 | (5,087 | ) | |||||||||
Transfers, net | (7,748 | ) | (1,043 | ) | (1,598 | ) | (10,389 | ) | ||||||||
Ending balance at March 31, 2021 | 29,153 | 47,384 | 25,509 | 102,046 | ||||||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Total employee benefits expenses | 1,187,119 | 1,253,148 | 1,539,965 |
18. | Participation and residual liabilities in the Pictures segment |
Yen in millions | ||||
Fiscal year ended March 31 | ||||
2023 | ||||
Balance at beginning of the fiscal year | 410,275 | |||
Current portion | 190,162 | |||
Non-current portion | 220,113 | |||
Additional participation and residual liabilities | 210,226 | |||
Amounts paid during the year | (220,415 | ) | ||
Unpaid amounts reversed during the year | (13,605 | ) | ||
Translation adjustment | 36,694 | |||
Balance at end of the fiscal year | 423,175 | |||
Current portion | 230,223 | |||
Non-current portion | 192,952 |
19. | Other assets and other liabilities |
(1) | Other assets |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Advance payments and prepaid expenses | 384,299 | 481,080 | ||||||
Income taxes receivable and other taxes receivable | 169,580 | 243,569 | ||||||
Other | 208,241 | 207,627 | ||||||
Total | 762,120 | 932,276 | ||||||
Current assets | 473,070 | 610,330 | ||||||
Non-current assets | 289,050 | 321,946 |
(2) | Other liabilities |
Foreign plans | ||||||||||||
Yen in millions | ||||||||||||
Fair value measurement using significant unobservable inputs (Level 3) | ||||||||||||
Insurance contracts | Real estate and other | Total | ||||||||||
Beginning balance at April 1, 2019 | 12,494 | 22,089 | 34,583 | |||||||||
Return on assets held at end of year | 559 | 132 | 691 | |||||||||
Purchases, sales, and settlements, net | (373 | ) | 755 | 382 | ||||||||
Other * | (502 | ) | (679 | ) | (1,181 | ) | ||||||
Ending balance at March 31, 2020 | 12,178 | 22,297 | 34,475 | |||||||||
Return on assets held at end of year | (3,904 | ) | (402 | ) | (4,306 | ) | ||||||
Purchases, sales, and settlements, net | 139,769 | (19,605 | ) | 120,164 | ||||||||
Other * | 1,044 | 1,401 | 2,445 | |||||||||
Ending balance at March 31, 2021 | 149,087 | 3,691 | 152,778 | |||||||||
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Contract liabilities | 366,227 | 508,454 | ||||||
Accrued short-term employee benefits | 347,023 | 395,110 | ||||||
Refund liabilities | 197,791 | 197,836 | ||||||
Taxes payable other than income taxes | 163,316 | 185,224 | ||||||
Accrued expenses | 177,404 | 177,789 | ||||||
Future insurance policy benefits and other | 153,006 | 162,091 | ||||||
Other long-term employee benefit obligations | 15,030 | 64,684 | ||||||
Product warranties | 28,606 | 26,167 | ||||||
Other | 146,566 | 130,573 | ||||||
Total | 1,594,969 | 1,847,928 | ||||||
Current liabilities | 1,488,488 | 1,720,335 | ||||||
Non-current liabilities | 106,481 | 127,593 |
Yen in millions | ||||
Fiscal year ended March 31 | ||||
2023 | ||||
Balance at beginning of the fiscal year | 28,606 | |||
Additional product warranties | 22,963 | |||
Amounts used during the year | (20,442 | ) | ||
Unused amounts reversed during the year | (6,359 | ) | ||
Translation adjustment | 1,399 | |||
Balance at end of the fiscal year | 26,167 | |||
Japanese plans | Foreign plans | |||||||
Fiscal year ending March 31 | Yen in millions | Yen in millions | ||||||
2022 | 38,662 | 106,434 | ||||||
2023 | 36,885 | 12,742 | ||||||
2024 | 38,468 | 13,063 | ||||||
2025 | 37,414 | 13,633 | ||||||
2026 | 37,947 | 13,735 | ||||||
2027 — 2031 | 183,084 | 76,482 |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Japanese plans | 3,353 | 6,925 | 10,992 | |||||||||
Foreign plans | 11,602 | 10,313 | 9,639 |
Stockholders’ equity |
(1) | Common stock |
Number of shares | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Balance at beginning of the fiscal year | 1,261,058,781 | 1,261,058,781 | 1,261,081,781 | |||||||||
Issuance of new shares | — | 23,000 | — | |||||||||
Balance at end of the fiscal year | 1,261,058,781 | 1,261,081,781 | 1,261,081,781 | |||||||||
(2) | Additional paid-in capital |
(3) | Retained earnings |
(Resolution) | Type of shares | Total amount of dividends (Yen in millions) | Source of dividends | Dividends per share (Yen) | Record date | Effective date | ||||||||||||||||||
Board of Directors’ meeting held on May 10, 2022 | Common stock | 43,295 | Retained earnings | 35.00 | March 31, 2022 | June 3, 2022 | ||||||||||||||||||
Board of Directors’ meeting held on April 28, 2023 | Common stock | 49,380 | Retained earnings | 40.00 | March 31, 2023 | June 5, 2023 |
Other comprehensive income |
Yen in millions | ||||||||||||||||||||
Unrealized gains (losses) on securities | Unrealized gains (losses) on derivative instruments | Pension liability adjustment | Foreign currency translation adjustments | Total | ||||||||||||||||
Balance at March 31, 2018 | 126,191 | (1,242 | ) | (296,444 | ) | (445,251 | ) | (616,746 | ) | |||||||||||
Cumulative effect of ASU | (15,526 | ) | — | — | — | (15,526 | ) | |||||||||||||
Other comprehensive income before reclassifications | 33,124 | 2,316 | (23,448 | ) | 10,071 | 22,063 | ||||||||||||||
Amounts reclassified out of accumulated other comprehensive income * | 161 | (1,093 | ) | 9,488 | (1,627 | ) | 6,929 | |||||||||||||
Net other comprehensive income | 33,285 | 1,223 | (13,960 | ) | 8,444 | 28,992 | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 8,915 | — | 53 | (1,578 | ) | 7,390 | ||||||||||||||
Balance at March 31, 2019 | 135,035 | (19 | ) | (310,457 | ) | (435,229 | ) | (610,670 | ) | |||||||||||
Yen in millions | ||||||||||||||||||||
Balance at April 1, 2020 | Other comprehensive income attributable to Sony Group Corporation’s stockholders | Transfer to retained earnings | Transactions with noncontrolling interests shareholders and other | Balance at March 31, 2021 | ||||||||||||||||
Changes in equity instruments measured at fair value through other comprehensive income | (8,882 | ) | 144,544 | 6,085 | (2,125 | ) | 139,622 | |||||||||||||
Changes in debt instruments measured at fair value through other comprehensive income | 985,234 | (179,251 | ) | — | 458,754 | 1,264,737 | ||||||||||||||
Cash flow hedges | 1,248 | 51 | — | — | 1,299 | |||||||||||||||
Remeasurement of defined benefit pension plans | — | 11,555 | (11,555 | ) | — | — | ||||||||||||||
Exchange differences on translating foreign operations | — | 113,771 | — | 130 | 113,901 | |||||||||||||||
Insurance contract valuation adjustments | 1,973 | (2,537 | ) | — | 476 | (88 | ) | |||||||||||||
Share of other comprehensive income of investments accounted for using the equity method | (97 | ) | 885 | (2 | ) | — | 786 | |||||||||||||
Total | 979,476 | 89,018 | (5,472 | ) | 457,235 | 1,520,257 | ||||||||||||||
Yen in millions | ||||||||||||||||||||
Balance at April 1, 2021 | Other comprehensive income attributable to Sony Group Corporation’s stockholders | Transfer to retained earnings | Balance at March 31, 2022 | |||||||||||||||||
Changes in equity instruments measured at fair value through other comprehensive income | 139,622 | (106,426 | ) | (5,784 | ) | 27,412 | ||||||||||||||
Changes in debt instruments measured at fair value through other comprehensive income | 1,264,737 | (416,904 | ) | — | 847,833 | |||||||||||||||
Cash flow hedges | 1,299 | 4,735 | — | 6,034 | ||||||||||||||||
Remeasurement of defined benefit pension plans | — | 33,641 | (33,641 | ) | — | |||||||||||||||
Exchange differences on translating foreign operations | 113,901 | 223,777 | — | 337,678 | ||||||||||||||||
Insurance contract valuation adjustments | (88 | ) | 599 | — | 511 | |||||||||||||||
Share of other comprehensive income of investments accounted for using the equity method | 786 | 2,078 | — | 2,864 | ||||||||||||||||
Total | 1,520,257 | (258,500 | ) | (39,425 | ) | 1,222,332 | ||||||||||||||
Yen in millions | ||||||||||||||||||||||||
Unrealized gains (losses) on securities | Unrealized gains (losses) on derivative instruments | Pension liability adjustment | Foreign currency translation adjustments | Debt valuation adjustments | Total | |||||||||||||||||||
Balance at March 31, 2019 | 135,035 | (19 | ) | (310,457 | ) | (435,229 | ) | — | (610,670 | ) | ||||||||||||||
Other comprehensive income before reclassifications | 40,334 | 1,193 | (17,519 | ) | (75,814 | ) | 3,032 | (48,774 | ) | |||||||||||||||
Amounts reclassified out of accumulated other comprehensive income * | 56 | 74 | 92,490 | (74 | ) | — | 92,546 | |||||||||||||||||
Net other comprehensive income | 40,390 | 1,267 | 74,971 | (75,888 | ) | 3,032 | 43,772 | |||||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 14,234 | — | 34 | (1,245 | ) | 1,059 | 14,082 | |||||||||||||||||
Balance at March 31, 2020 | 161,191 | 1,248 | (235,520 | ) | (509,872 | ) | 1,973 | (580,980 | ) | |||||||||||||||
Yen in millions | ||||||||||||||||||||||||
Unrealized gains (losses) on securities | Unrealized gains (losses) on derivative instruments | Pension liability adjustment | Foreign currency translation adjustments | Debt valuation adjustments | Total | |||||||||||||||||||
Balance at March 31, 2020 | 161,191 | 1,248 | (235,520 | ) | (509,872 | ) | 1,973 | (580,980 | ) | |||||||||||||||
Other comprehensive income before reclassifications | (102,588 | ) | 5,571 | 2,358 | 107,661 | (3,081 | ) | 9,921 | ||||||||||||||||
Amounts reclassified out of accumulated other comprehensive income * | 96 | (4,058 | ) | 10,607 | (835 | ) | (39 | ) | 5,771 | |||||||||||||||
Net other comprehensive income | (102,492 | ) | 1,513 | 12,965 | 106,826 | (3,120 | ) | 15,692 | ||||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | (11,971 | ) | — | 3 | 1,183 | (583 | ) | (11,368 | ) | |||||||||||||||
Transactions with noncontrolling interests shareholders and other | 30,635 | — | (910 | ) | (300 | ) | 475 | 29,900 | ||||||||||||||||
Balance at March 31, 2021 | 101,305 | 2,761 | (223,468 | ) | (404,529 | ) | (89 | ) | (524,020 | ) | ||||||||||||||
Yen in millions | ||||||||||||||||
Balance at April 1, 202 2 | Other comprehensive income attributable to Sony Group Corporation’s stockholders | Transfer to retained earnings | Balance at March 31, 202 3 | |||||||||||||
Changes in equity instruments measured at fair value through other comprehensive income | 27,412 | (36,862 | ) | 298 | (9,152 | ) | ||||||||||
Changes in debt instruments measured at fair value through other comprehensive income | 847,833 | (884,678 | ) | — | (36,845 | ) | ||||||||||
Cash flow hedges | 6,034 | 12,379 | — | 18,413 | ||||||||||||
Remeasurement of defined benefit pension plans | — | 18,891 | (18,891 | ) | — | |||||||||||
Exchange differences on translating foreign operations | 337,678 | 175,525 | — | 513,203 | ||||||||||||
Insurance contract valuation adjustments | 511 | 1,714 | — | 2,225 | ||||||||||||
Share of other comprehensive income of investments accounted for using the equity method | 2,864 | 3,699 | — | 6,563 | ||||||||||||
Total | 1,222,332 | (709,332 | ) | (18,593 | ) | 494,407 | ||||||||||
Yen in millions | ||||||||||||||
Comprehensive income components | Amounts reclassified from accumulated other comprehensive income | Affected line items in consolidated statements of income | ||||||||||||
2019 | 2020 | 2021 | ||||||||||||
Unrealized gains (losses) on securities | 235 | 82 | 130 | Financial services revenue | ||||||||||
Tax expense or (benefit) | (74 | ) | (26 | ) | (34 | ) | ||||||||
Net of tax | 161 | 56 | 96 | |||||||||||
Unrealized gains (losses) on derivative instruments | (1,093 | ) | — | — | Cost of sales | |||||||||
— | 106 | (5,382 | ) | Net sales | ||||||||||
— | — | 285 | Interest | |||||||||||
Total before tax | (1,093 | ) | 106 | (5,097 | ) | |||||||||
Tax expense or (benefit) | — | (32 | ) | 1,039 | ||||||||||
Net of tax | (1,093 | ) | 74 | (4,058 | ) | |||||||||
Pension liability adjustment | 9,891 | 92,514 | 13,181 | * | ||||||||||
Tax expense or (benefit) | (403 | ) | (24 | ) | (2,574 | ) | ||||||||
Net of tax | 9,488 | 92,490 | 10,607 | |||||||||||
Foreign currency translation adjustments | (1,627 | ) | (74 | ) | (835 | ) | Foreign exchange loss, net, other operating (income) expense, net and other income: other | |||||||
Tax expense or (benefit) | — | — | — | |||||||||||
Net of tax | (1,627 | ) | (74 | ) | (835 | ) | ||||||||
Debt valuation adjustments | — | — | (39 | ) | Financial services expenses | |||||||||
Tax expense or (benefit) | — | — | — | |||||||||||
Net of tax | — | — | (39 | ) | ||||||||||
Total amounts reclassified out of accumulated other comprehensive income, net of tax | 6,929 | 92,546 | 5,771 | |||||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Net income attributable to Sony Group Corporation’s stockholders | 916,271 | 582,191 | 1,171,776 | |||||||||
Transfers (to) from the noncontrolling interests: | ||||||||||||
Increase (decrease) in additional paid-in capital for purchase of additional shares in consolidated subsidiaries | (22,775 | ) | 16,372 | 196,002 | ||||||||
Change from net income attributable to Sony Group Corporation’s stockholders and transfers (to) from the noncontrolling interests | 893,496 | 598,563 | 1,367,778 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
Comprehensive income components | 2021 | 2022 | 2023 | |||||||||
Items that will not be reclassified to profit or loss | ||||||||||||
Changes in equity instruments measured at fair value through other comprehensive income | ||||||||||||
Amount incurred during the year | 191,122 | (139,511 | ) | (45,708 | ) | |||||||
Total before tax | 191,122 | (139,511 | ) | (45,708 | ) | |||||||
Tax expense or (benefit) | (46,382 | ) | 33,085 | 8,846 | ||||||||
Net of tax | 144,740 | (106,426 | ) | (36,862 | ) | |||||||
Remeasurement of defined benefit pension plans | ||||||||||||
Amount incurred during the year | 17,856 | 43,134 | 27,136 | |||||||||
Total before tax | 17,856 | 43,134 | 27,136 | |||||||||
Tax expense or (benefit) | (6,301 | ) | (9,493 | ) | (8,245 | ) | ||||||
Net of tax | 11,555 | 33,641 | 18,891 | |||||||||
Share of other comprehensive income of investments accounted for using the equity method | ||||||||||||
Amount incurred during the year | 98 | 869 | 197 | |||||||||
Total before tax | 98 | 869 | 197 | |||||||||
Tax expense or (benefit) | (11 | ) | (292 | ) | (52 | ) | ||||||
Net of tax | 87 | 577 | 145 | |||||||||
Total | 156,382 | (72,208 | ) | (17,826 | ) |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
Comprehensive income components | 2021 | 2022 | 2023 | |||||||||
Items that may be reclassified subsequently to profit or loss | ||||||||||||
Changes in debt instruments measured at fair value through other comprehensive income | ||||||||||||
Amount incurred during the year | (285,504 | ) | (572,692 | ) | (1,223,450 | ) | ||||||
Reclassification to profit or loss | (98 | ) | (6,408 | ) | (5,300 | ) | ||||||
Total before tax | (285,602 | ) | (579,100 | ) | (1,228,750 | ) | ||||||
Tax expense or (benefit) | 80,053 | 162,196 | 344,072 | |||||||||
Net of tax | (205,549 | ) | (416,904 | ) | (884,678 | ) | ||||||
Cash flow hedges | ||||||||||||
Amount incurred during the year | 7,481 | (7,703 | ) | (12,975 | ) | |||||||
Reclassification to profit or loss | (7,228 | ) | 14,529 | 30,813 | ||||||||
Total before tax | 253 | 6,826 | 17,838 | |||||||||
Tax expense or (benefit) | (202 | ) | (2,091 | ) | (5,459 | ) | ||||||
Net of tax | 51 | 4,735 | 12,379 | |||||||||
Insurance contract valuation adjustments | ||||||||||||
Amount incurred during the year | (3,081 | ) | 807 | 2,463 | ||||||||
Reclassification to profit or loss | (39 | ) | (10 | ) | (83 | ) | ||||||
Total before tax | (3,120 | ) | 797 | 2,380 | ||||||||
Tax expense or (benefit) | — | (198 | ) | (666 | ) | |||||||
Net of tax | (3,120 | ) | 599 | 1,714 | ||||||||
Exchange differences on translating foreign operations | ||||||||||||
Amount incurred during the year | 115,304 | 227,017 | 177,645 | |||||||||
Reclassification to profit or loss | 17 | (742 | ) | 630 | ||||||||
Total before tax | 115,321 | 226,275 | 178,275 | |||||||||
Tax expense or (benefit) | — | — | — | |||||||||
Net of tax | 115,321 | 226,275 | 178,275 | |||||||||
Share of other comprehensive income of investments accounted for using the equity method | ||||||||||||
Amount incurred during the year | 798 | 1,501 | 3,554 | |||||||||
Reclassification to profit or loss | — | — | — | |||||||||
Total before tax | 798 | 1,501 | 3,554 | |||||||||
Tax expense or (benefit) | — | — | — | |||||||||
Net of tax | 798 | 1,501 | 3,554 | |||||||||
Total | (92,499 | ) | (183,794 | ) | (688,756 | ) | ||||||
Total other comprehensive income | 63,883 | (256,002 | ) | (706,582 | ) | |||||||
(5) | Equity transactions with noncontrolling interests shareholders |
Stock-based compensation plans |
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Weighted-average assumptions | ||||||||||||
Risk-free interest rate | 1.37 | % | 0.70 | % | 0.17 | % | ||||||
Expected lives | 5.98 | years | 5.73 | years | 5.41 | years | ||||||
Expected volatility * | 32.52 | % | 29.30 | % | 26.97 | % | ||||||
Expected dividends | 0.35 | % | 0.32 | % | 0.34 | % |
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Weighted-average assumptions | ||||||||||||
Share price at the grant date | 9,202 | yen | 14,361 | yen | 11,389 | yen | ||||||
Risk-free interest rate | 0.17 | % | 0.60 | % | 1.88 | % | ||||||
Expected lives | 5.41 | years | 5.33 | years | 5.46 | years | ||||||
Expected volatility* | 26.97 | % | 22.47 | % | 26.55 | % | ||||||
Expected dividends | 0.34 | % | 0.29 | % | 0.47 | % |
* | Expected volatility was based on the historical volatilities of Sony Group Corporation’s common stock over the expected life of the stock acquisition rights. |
Fiscal year ended March 31 | ||||||||||||||||||||||||
2021 | 2022 | 2023 | ||||||||||||||||||||||
Number of shares | Weighted- average exercise price | Number of shares | Weighted- average exercise price | Number of shares | Weighted- average exercise price | |||||||||||||||||||
Yen | Yen | Yen | ||||||||||||||||||||||
Outstanding at beginning of the fiscal year | 12,876,700 | 4,982 | 14,022,400 | 6,653 | 16,544,300 | 9,397 | ||||||||||||||||||
Granted | 4,534,600 | 9,221 | 4,876,400 | 14,188 | 4,744,300 | 10,979 | ||||||||||||||||||
Exercised | 3,178,300 | 3,911 | 1,944,900 | 5,313 | 1,260,800 | 5,565 | ||||||||||||||||||
Forfeited or expired | 210,600 | 6,280 | 409,600 | 9,484 | 336,300 | 12,654 | ||||||||||||||||||
Outstanding at end of the fiscal year | 14,022,400 | 6,653 | 16,544,300 | 9,397 | 19,691,500 | 10,312 | ||||||||||||||||||
Exercisable at end of the fiscal year | 5,800,700 | 4,535 | 7,044,700 | 5,883 | 9,683,000 | 8,033 |
Series | Date of grant | Exercise term | Exercise price | Outstanding at end of the fiscal year (shares) | ||||||||||||||||
2021 | 2022 | 2023 | ||||||||||||||||||
22 nd | November 22, 2011 | November 22, 2012 to November 21, 2021 | ¥ | 1,523 | 24,700 | — | — | |||||||||||||
23 rd | November 22, 2011 | November 22, 2012 to November 21, 2021 | $ | 19.44 | 77,500 | — | — | |||||||||||||
24 th | December 4, 2012 | December 4, 2013 to December 3, 2022 | ¥ | 932 | 24,000 | 14,700 | — | |||||||||||||
25 th | December 4, 2012 | December 4, 2013 to December 3, 2022 | $ | 11.23 | 102,600 | 77,900 | — | |||||||||||||
26 th | November 20, 2013 | November 20, 2014 to November 19, 2023 | ¥ | 2,007 | 88,500 | 47,000 | 14,400 | |||||||||||||
27 th | November 20, 2013 | November 20, 2014 to November 19, 2023 | $ | 20.01 | 140,900 | 127,300 | 110,700 | |||||||||||||
28 th | November 20, 2014 | November 20, 2015 to November 19, 2024 | ¥ | 2,410.5 | 243,700 | 190,900 | 132,500 | |||||||||||||
29 th | November 20, 2014 | November 20, 2015 to November 19, 2024 | $ | 20.67 | 167,300 | 154,100 | 135,500 | |||||||||||||
30 th | November 19, 2015 | November 19, 2016 to November 18, 2025 | ¥ | 3,404 | 323,900 | 252,600 | 186,900 | |||||||||||||
31 st | November 19, 2015 | November 19, 2016 to November 18, 2025 | $ | 27.51 | 218,800 | 170,800 | 148,200 | |||||||||||||
32 nd | November 22, 2016 | November 22, 2017 to November 21, 2026 | ¥ | 3,364 | 672,100 | 516,300 | 390,400 | |||||||||||||
33 rd | November 22, 2016 | November 22, 2017 to November 21, 2026 | $ | 31.06 | 446,200 | 367,900 | 330,500 | |||||||||||||
34 th | November 21, 2017 | November 21, 2018 to November 20, 2027 | ¥ | 5,231 | 872,800 | 572,500 | 434,200 | |||||||||||||
35 th | November 21, 2017 | November 21, 2018 to November 20, 2027 | $ | 45.73 | 787,200 | 676,400 | 620,500 | |||||||||||||
36 th | February 28, 2018 | February 28, 2019 to February 27, 2028 | ¥ | 5,442 | 5,800 | 4,500 | 3,900 | |||||||||||||
38 th | November 20, 2018 | November 20, 2019 to November 19, 2028 | ¥ | 6,440 | 1,290,600 | 977,800 | 839,900 | |||||||||||||
39 th | November 20, 2018 | November 20, 2019 to November 19, 2028 | $ | 56.22 | 987,300 | 826,800 | 760,500 | |||||||||||||
40 th | November 20, 2019 | November 20, 2020 to November 19, 2029 | ¥ | 6,705 | 1,645,300 | 1,389,700 | 1,210,100 | |||||||||||||
41 st | November 20, 2019 | November 20, 2020 to November 19, 2029 | $ | 60.99 | 1,393,400 | 1,190,800 | 1,076,300 | |||||||||||||
42 nd | April 17, 2020 | April 17, 2021 to April 16, 2030 | $ | 63.75 | 20,000 | 13,300 | 13,300 | |||||||||||||
43 rd | November 18, 2020 | November 18, 2021 to November 17, 2030 | ¥ | 9,237 | 2,252,000 | 2,193,000 | 2,060,400 | |||||||||||||
44 th | November 18, 2020 | November 18, 2021 to November 17, 2030 | $ | 87.48 | 2,222,800 | 1,974,800 | 1,862,100 | |||||||||||||
45 th | November 18, 2021 | November 18, 2022 to November 17, 2031 | ¥ | 14,350 | — | 2,399,100 | 2,367,500 | |||||||||||||
46 th | November 18, 2021 | November 18, 2022 to November 17, 2031 | $ | 124.90 | — | 2,391,100 | 2,277,100 | |||||||||||||
47 th | November 16, 2022 | November 16, 2023 to November 15, 2032 | ¥ | 11,390 | — | — | 2,427,100 | |||||||||||||
48 th | November 16, 2022 | November 16, 2023 to November 15, 2032 | $ | 77.89 | — | — | 2,289,500 |
Fiscal year ended March 31, 2021 | ||||||||||||||||
Number of shares | Weighted- average exercise price | Weighted- average remaining life | Total intrinsic value | |||||||||||||
Yen | Years | Yen in millions | ||||||||||||||
Outstanding at beginning of the fiscal year | 12,876,700 | 4,982 | ||||||||||||||
Granted | 4,534,600 | 9,221 | ||||||||||||||
Exercised | 3,178,300 | 3,911 | ||||||||||||||
Forfeited or expired | 210,600 | 6,280 | ||||||||||||||
Outstanding at end of the fiscal year | 14,022,400 | 6,653 | 7.80 | 68,218 | ||||||||||||
Exercisable at end of the fiscal year | 5,800,700 | 4,535 | 6.34 | 38,794 | ||||||||||||
Revenue |
(1) | Contract balances |
Yen in millions | ||||||||
March 31, 2020 | March 31, 2021 | |||||||
Receivables from contracts with customers *1 | 1,126,597 | 1,176,828 | ||||||
Contract assets *1 | 13,985 | 12,204 | ||||||
Contract liabilities *2 | 271,286 | 294,911 |
Yen in millions | ||||||||
April 1 | March 31 | |||||||
2021 | 2022 | |||||||
Receivables from contracts with customers *1 | 1,177,027 | 1,382,377 | ||||||
Contract assets *2 | 12,204 | 16,785 | ||||||
Contract liabilities *3 | 294,911 | 366,227 |
Yen in millions | ||||||||
April 1 | March 31 | |||||||
2022 | 2023 | |||||||
Receivables from contracts with customers *1 | 1,382,377 | 1,679,106 | ||||||
Contract assets *2 | 16,785 | 19,355 | ||||||
Contract liabilities *3 | 366,227 | 508,454 |
*1 | Receivables from contracts with customers non-current. |
*2 | Contract assets are included in the consolidated statements of financial position as “Trade and other receivables, and contract assets” and “Other non-current assets.” |
*3 | Contract liabilities are included in the consolidated |
(2) | Performance obligations |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Pictures — Motion Pictures and Television Productions *1 | 705,974 | 796,690 | ||||||
Pictures — Media Networks | 17,568 | 8,120 | ||||||
Music *2 | 127,530 | 140,842 | ||||||
Others | 57,948 | 68,708 |
*1 | For Motion Pictures and Television Productions in the Pictures segment, Sony has included all contracts regardless of duration. |
*2 |
(3) | Contract costs |
Yen in millions | ||||||||
March 31, 2020 | March 31, 2021 | |||||||
Incremental costs of obtaining a contract | 7,464 | 8,348 |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Incremental costs of obtaining a contract | 7,336 | 6,110 |
(4) | Disaggregation of revenue |
Yen in millions | ||||||||||||||||
Employee termination benefits | Non-cash write-downs and disposals, net * | Other associated costs | Total | |||||||||||||
Balance at March 31, 2018 | 19,486 | — | 4,188 | 23,674 | ||||||||||||
Restructuring costs | 24,449 | 2,731 | 5,825 | 33,005 | ||||||||||||
Non-cash charges | — | (2,731 | ) | — | (2,731 | ) | ||||||||||
Cash payments | (19,150 | ) | — | (2,555 | ) | (21,705 | ) | |||||||||
Adjustments | 955 | — | (357 | ) | 598 | |||||||||||
Balance at March 31, 2019 | 25,740 | — | 7,101 | 32,841 | ||||||||||||
Restructuring costs | 22,957 | 100 | 1,653 | 24,710 | ||||||||||||
Non-cash charges | — | (100 | ) | — | (100 | ) | ||||||||||
Cash payments | (23,385 | ) | — | (6,703 | ) | (30,088 | ) | |||||||||
Adjustments | (674 | ) | — | (131 | ) | (805 | ) | |||||||||
Balance at March 31, 2020 | 24,638 | — | 1,920 | 26,558 | ||||||||||||
Restructuring costs | 19,669 | 2,806 | 3,240 | 25,715 | ||||||||||||
Non-cash charges | — | (2,806 | ) | — | (2,806 | ) | ||||||||||
Cash payments | (24,246 | ) | — | (3,152 | ) | (27,398 | ) | |||||||||
Adjustments | (891 | ) | — | 144 | (747 | ) | ||||||||||
Balance at March 31, 2021 | 19,170 | — | 2,152 | 21,322 | ||||||||||||
Yen in millions | ||||||||||||||||||||
Fiscal year ended March 31, 2019 | ||||||||||||||||||||
Employee termination benefits | Other associated costs * | Total net restructuring charges | Depreciation associated with restructured assets | Total | ||||||||||||||||
Game & Network Services | — | — | — | — | — | |||||||||||||||
Music | 2,991 | 201 | 3,192 | — | 3,192 | |||||||||||||||
Pictures | 4,795 | — | 4,795 | — | 4,795 | |||||||||||||||
Electronics Products & Solutions | 11,437 | 4,574 | 16,011 | 86 | 16,097 | |||||||||||||||
Imaging & Sensing Solutions | — | — | — | — | — | |||||||||||||||
Financial Services | — | — | — | — | — | |||||||||||||||
All Other and Corporate | 5,226 | 3,781 | 9,007 | — | 9,007 | |||||||||||||||
Total | 24,449 | 8,556 | 33,005 | 86 | 33,091 | |||||||||||||||
Yen in millions | ||||||||||||||||||||
Fiscal year ended March 31, 2020 | ||||||||||||||||||||
Employee termination benefits | Other associated costs * | Total net restructuring charges | Depreciation associated with restructured assets | Total | ||||||||||||||||
Game & Network Services | — | — | — | — | — | |||||||||||||||
Music | 3,179 | 6 | 3,185 | — | 3,185 | |||||||||||||||
Pictures | 545 | — | 545 | — | 545 | |||||||||||||||
Electronics Products & Solutions | 14,500 | 227 | 14,727 | — | 14,727 | |||||||||||||||
Imaging & Sensing Solutions | — | — | — | — | — | |||||||||||||||
Financial Services | — | — | — | — | — | |||||||||||||||
All Other and Corporate | 4,733 | 1,520 | 6,253 | 256 | 6,509 | |||||||||||||||
Total | 22,957 | 1,753 | 24,710 | 256 | 24,966 | |||||||||||||||
Yen in millions | ||||||||||||||||||||
Fiscal year ended March 31, 2021 | ||||||||||||||||||||
Employee termination benefits | Other associated costs * | Total net restructuring charges | Depreciation associated with restructured assets | Total | ||||||||||||||||
Game & Network Services | 3,524 | 553 | 4,077 | 13 | 4,090 | |||||||||||||||
Music | (1,139 | ) | 96 | (1,043 | ) | — | (1,043 | ) | ||||||||||||
Pictures | 1,519 | 54 | 1,573 | — | 1,573 | |||||||||||||||
Electronics Products & Solutions | 11,466 | 4,205 | 15,671 | — | 15,671 | |||||||||||||||
Imaging & Sensing Solutions | 1,362 | — | 1,362 | — | 1,362 | |||||||||||||||
Financial Services | — | — | — | — | — | |||||||||||||||
All Other and Corporate | 2,937 | 1,138 | 4,075 | 148 | 4,223 | |||||||||||||||
Total | 19,669 | 6,046 | 25,715 | 161 | 25,876 | |||||||||||||||
Supplemental consolidated statements of income information |
(1) | Other operating (income) expense, net |
Yen in millions | ||||||||||||
March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Gain on remeasurement of EMI shares *1 | (116,939 | ) | — | — | ||||||||
Gain on remeasurement and sale of SRE shares *2 | — | (17,266 | ) | — | ||||||||
Gain on remeasurement of AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd. shares *3 | — | (1,827 | ) | — | ||||||||
(Gain) loss on purchase/sale of interests in subsidiaries and affiliates, net | (1,557 | ) | (12,801 | ) | (16,895 | ) | ||||||
(Gain) loss on sale, disposal or impairment of assets, net* 4 | 46,928 | 29,778 | 23,835 | |||||||||
Other | — | (1,495 | ) | 528 | ||||||||
(71,568 | ) | (3,611 | ) | 7,468 | ||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Gain on transfer of GSN Games shares *1 | — | (70,020 | ) | — | ||||||||
(Gain) loss on purchase/sale of interests in subsidiaries and associates, net | (18,868 | ) | (4,593 | ) | (4,318 | ) | ||||||
(Gain) loss on sale, disposal or impairment of assets, net *2 | 32,122 | 8,316 | (417 | ) | ||||||||
Other | 996 | 803 | (7,286 | ) | ||||||||
14,250 | (65,494 | ) | (12,021 | ) | ||||||||
*1 | Refer to |
*2 | Refer to |
(2) | Research and development |
(3) | Advertising costs |
(4) | Shipping and handling costs |
24. | Financial income and expense |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Interest income | ||||||||||||
Financial assets measured at AC | 7,610 | 6,996 | 22,399 | |||||||||
Dividends | ||||||||||||
Financial assets measured at FVOCI | 1,566 | 2,792 | 3,488 | |||||||||
Gain on revaluation of equity instruments | ||||||||||||
Financial assets measured at FVPL * 2 | 61,259 | — | — | |||||||||
Other | 13,357 | 9,516 | 5,171 | |||||||||
Total | 83,792 | 19,304 | 31,058 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Interest expense | ||||||||||||
Financial liabilities measured at AC | 5,916 | 6,377 | 16,016 | |||||||||
Other | 8,292 | 8,223 | 10,382 | |||||||||
Foreign exchange loss, net * 1 | 16,191 | 1,612 | 14,489 | |||||||||
Loss on revaluation of equity instruments | ||||||||||||
Financial assets measured at FVPL * 2 | — | 66,177 | 4,623 | |||||||||
Other | 10,683 | 21,751 | 13,441 | |||||||||
Total | 41,082 | 104,140 | 58,951 | |||||||||
*1 | Foreign exchange loss, net includes gains or losses from foreign exchange contracts. |
* 2 | Shares of Spotify Technology S.A. (“Spotify”) held by Sony are classified as equity securities required to be measured at fair value through profit or loss. The revaluation of the Spotify shares, net of costs to be paid to Sony’s artists and distributed labels, owned as of March 31, 2021, March 31, 2022 and March 31, 2023 resulted in an unrealized gain of 51,310 million yen (480 million U.S. dollars), an unrealized loss of 45,017 million yen (395 million U.S. dollars), and an unrealized loss of 7,787 million yen (58 million U.S. dollars), respectively. |
25. | Income taxes |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Income before income taxes: | ||||||||||||
Sony Group Corporation and all subsidiaries in Japan | 310,020 | 466,253 | 488,738 | |||||||||
Foreign subsidiaries | 701,628 | 333,197 | 703,632 | |||||||||
1,011,648 | 799,450 | 1,192,370 | ||||||||||
Income taxes — Current: | ||||||||||||
Sony Group Corporation and all subsidiaries in Japan | 82,081 | 105,755 | 81,706 | |||||||||
Foreign subsidiaries | 84,667 | 66,636 | 72,716 | |||||||||
166,748 | 172,391 | 154,422 | ||||||||||
Income taxes — Deferred: | ||||||||||||
Sony Group Corporation and all subsidiaries in Japan | 17,907 | 9,421 | (172,095 | ) | ||||||||
Foreign subsidiaries | (139,557 | ) | (4,622 | ) | 18,668 | |||||||
(121,650 | ) | 4,799 | (153,427 | ) | ||||||||
Total income tax expense | 45,098 | 177,190 | 995 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Income (loss) before income taxes: | 997,965 | 1,117,503 | 1,180,313 | |||||||||
Income tax expenses | ||||||||||||
Current | 156,592 | 238,602 | 302,379 | |||||||||
Deferred | (202,523 | ) | (9,505 | ) | (65,688 | ) | ||||||
Total income tax expense | (45,931 | ) | 229,097 | 236,691 | ||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Statutory tax rate | 31.5 | % | 31.5 | % | 31.5 | % | ||||||
Non-deductible expenses | 0.7 | 0.3 | 0.1 | |||||||||
Income tax credits | (1.6 | ) | (1.7 | ) | (1.2 | ) | ||||||
Change in statutory tax rate and law | (0.3 | ) | (0.4 | ) | (0.1 | ) | ||||||
Change in valuation allowances (other than the reversal of valuation allowance in U.S. and Japan national tax below) | 2.3 | (8.1 | ) | (5.0 | ) | |||||||
The reversal of valuation allowances in the U.S. | (15.3 | ) | — | (5.5 | ) | |||||||
The reversal of valuation allowances relating to the national tax of Sony Group Corporation and its national tax filing group in Japan | — | — | (18.0 | ) | ||||||||
Change in deferred tax liabilities on undistributed earnings of foreign subsidiaries and corporate joint ventures | (0.1 | ) | 0.2 | 0.7 | ||||||||
Lower tax rate applied to life and non-life insurance business in Japan | (0.5 | ) | (0.6 | ) | (0.4 | ) | ||||||
Foreign income tax differential | (6.4 | ) | (2.4 | ) | (5.0 | ) | ||||||
Adjustments to tax reserves | (0.3 | ) | 0.9 | (0.3 | ) | |||||||
The remeasurement gain for the equity interest in EMI | (2.4 | ) | — | — | ||||||||
Japan controlled foreign company taxation | 0.0 | 5.3 | 2.5 | |||||||||
Other | (3.1 | ) | (2.8 | ) | 0.8 | |||||||
Effective income tax rat e | 4.5 | % | 22.2 | % | 0.1 | % | ||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Statutory tax rate | 31.5 | % | 31.5 | % | 31.5 | % | ||||||
Non-deductible expenses | 0.2 | 0.2 | 0.2 | |||||||||
Income tax credits | (1.4 | ) | (1.9 | ) | (3.2 | ) | ||||||
Change in statutory tax rate | (0.1 | ) | (0.2 | ) | (0.1 | ) | ||||||
Change in unrecognized tax assets (other than the reversal of a previous write-down of the deferred tax assets below) | (5.5 | ) | (3.7 | ) | (1.1 | ) | ||||||
Reversal of a previous write-down of the deferred tax assets of the consolidated tax filing group in the United States | (6.6 | ) | — | — | ||||||||
Reversal of a previous write-down of the deferred tax assets relating to the national tax of Sony Group Corporation and its national tax filing group in Japan | (21.5 | ) | — | — | ||||||||
Change in deferred tax liabilities on undistributed earnings of foreign subsidiaries and corporate joint ventures | 0.7 | 1.0 | 1.6 | |||||||||
Lower tax rate applied to life and non-life insurance business in Japan | (0.5 | ) | (0.4 | ) | (0.6 | ) | ||||||
Foreign income tax differential | (4.4 | ) | (5.5 | ) | (6.4 | ) | ||||||
Recording or reversal of liabilities for uncertain tax positions | (0.4 | ) | 0.8 | (0.3 | ) | |||||||
Controlled Foreign Company taxation in Japan | 3.0 | (1.8 | ) | (2.1 | ) | |||||||
Other | 0.4 | 0.5 | 0.6 | |||||||||
Effective income tax rate | -4.6 | % | 20.5 | % | 20.1 | % | ||||||
Yen in millions | ||||||||||||||||||||||||||||
Fiscal year ended March 31, 2022 | ||||||||||||||||||||||||||||
Beginning balance | Recognized in profit or loss | Recognized in other comprehensive income | Changes accompanying business combination | Recognized directly in equity | Other* | Ending balance | ||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||||||
Operating loss carryforwards for tax purposes | 86,170 | (16,573 | ) | — | — | — | 1,490 | 71,087 | ||||||||||||||||||||
Defined benefit liabilities | 62,426 | 20,721 | (9,493 | ) | — | 1,640 | (2,729 | ) | 72,565 | |||||||||||||||||||
Amortization including content assets | 44,251 | (20,323 | ) | — | — | — | 2,831 | 26,759 | ||||||||||||||||||||
Lease liabilities | 90,818 | 5,091 | — | 1,244 | — | (1,053 | ) | 96,100 | ||||||||||||||||||||
Warranty reserves and accrued expenses | 129,649 | 8,389 | — | 134 | — | 3,172 | 141,344 | |||||||||||||||||||||
Inventories | 29,714 | (547 | ) | — | — | — | 379 | 29,546 | ||||||||||||||||||||
Depreciation | 40,231 | 2,539 | — | 161 | — | 258 | 43,189 | |||||||||||||||||||||
Tax credit carryforwards | 48,315 | (12,007 | ) | — | — | — | 2,576 | 38,884 | ||||||||||||||||||||
Loss allowances | 7,165 | 98 | — | 2 | — | 483 | 7,748 | |||||||||||||||||||||
Impairment of investments | 6,800 | 3,418 | — | — | — | (402 | ) | 9,816 | ||||||||||||||||||||
Deferred revenue | 24,502 | 3,779 | — | — | — | 2,904 | 31,185 | |||||||||||||||||||||
Other | 152,242 | (32,131 | ) | (538 | ) | 13,304 | (125 | ) | 7,842 | 140,594 | ||||||||||||||||||
Total deferred tax assets | 722,283 | (37,546 | ) | (10,031 | ) | 14,845 | 1,515 | 17,751 | 708,817 | |||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||||||
Insurance acquisition costs | (176,745 | ) | (13,182 | ) | (1,261 | ) | — | — | (286 | ) | (191,474 | ) | ||||||||||||||||
Insurance contract liabilities | (151,061 | ) | (10,796 | ) | (5,480 | ) | — | — | — | (167,337 | ) | |||||||||||||||||
Non-current other receivables in the Pictures segment | (7,894 | ) | 8,009 | — | — | — | (115 | ) | — | |||||||||||||||||||
Right-of-use | (84,728 | ) | 25,955 | — | (1,245 | ) | — | 452 | (59,566 | ) | ||||||||||||||||||
Equity securities measured at FVOCI | (51,011 | ) | 1,841 | 33,085 | — | — | 116 | (15,969 | ) | |||||||||||||||||||
Equity securities measured at FVPL | (87,718 | ) | 36,915 | — | — | — | (2,336 | ) | (53,139 | ) | ||||||||||||||||||
Debt securities measured at FVOCI | (505,914 | ) | 9,822 | 168,937 | — | — | (204 | ) | (327,359 | ) | ||||||||||||||||||
Intangible assets acquired through stock exchange offerings | (23,949 | ) | — | — | — | — | — | (23,949 | ) | |||||||||||||||||||
Intangible assets derived from EMI Music Publishing acquisition | (93,481 | ) | (1,209 | ) | — | — | — | (6,904 | ) | (101,594 | ) | |||||||||||||||||
Undistributed earnings of foreign subsidiaries and corporate joint ventures | (39,166 | ) | (15,031 | ) | — | — | — | (1,834 | ) | (56,031 | ) | |||||||||||||||||
Investment in M3 | (41,347 | ) | (1,345 | ) | — | — | — | — | (42,692 | ) | ||||||||||||||||||
Other | (60,187 | ) | 6,072 | (292 | ) | (15,230 | ) | 765 | 1,262 | (67,610 | ) | |||||||||||||||||
Total deferred tax liabilities | (1,323,201 | ) | 47,051 | 194,989 | (16,475 | ) | 765 | (9,849 | ) | (1,106,720 | ) | |||||||||||||||||
* | Other mainly consists of exchange differences on translating foreign operations. |
Yen in millions | ||||||||||||||||||||||||||||
Fiscal year ended March 31, 2023 | ||||||||||||||||||||||||||||
Beginning balance | Recognized in profit or loss | Recognized in other comprehensive income | Changes accompanying business combination | Recognized directly in equity | Other* | Ending balance | ||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||||||
Operating loss carryforwards for tax purposes | 71,087 | (5,756 | ) | — | 10,157 | — | 5,600 | 81,088 | ||||||||||||||||||||
Defined benefit liabilities | 72,565 | 5,826 | (8,245 | ) | (28 | ) | (1,881 | ) | (1,102 | ) | 67,135 | |||||||||||||||||
Amortization including content assets | 26,759 | (1,675 | ) | — | (25,695 | ) | — | 2,828 | 2,217 | |||||||||||||||||||
Lease liabilities | 96,100 | 12,628 | — | 221 | — | 4,378 | 113,327 | |||||||||||||||||||||
Warranty reserves and accrued expenses | 141,344 | 4,240 | — | 1,599 | — | 2,644 | 149,827 | |||||||||||||||||||||
Inventories | 29,546 | 15,479 | — | — | — | (302 | ) | 44,723 | ||||||||||||||||||||
Depreciation | 43,189 | (3,566 | ) | — | — | — | 429 | 40,052 | ||||||||||||||||||||
Debt securities measured at FVOCI | — | — | 28,658 | — | — | — | 28,658 | |||||||||||||||||||||
Tax credit carryforwards | 38,884 | (12,297 | ) | — | 5,792 | — | 3,845 | 36,224 | ||||||||||||||||||||
Loss allowances | 7,748 | (1,857 | ) | — | — | — | 259 | 6,150 | ||||||||||||||||||||
Impairment of investments | 9,816 | (3,709 | ) | — | — | — | (55 | ) | 6,052 | |||||||||||||||||||
Deferred revenue | 31,185 | 22,076 | — | (2,299 | ) | — | 2,478 | 53,440 | ||||||||||||||||||||
Other | 140,594 | 45,871 | (2,408 | ) | 21,427 | (985 | ) | 6,099 | 210,598 | |||||||||||||||||||
Total deferred tax assets | 708,817 | 77,260 | 18,005 | 11,174 | (2,866 | ) | 27,101 | 839,491 | ||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||||||
Insurance acquisition costs | (191,474 | ) | (8,914 | ) | (5,769 | ) | — | — | (487 | ) | (206,644 | ) | ||||||||||||||||
Insurance contract liabilities | (167,337 | ) | (12,317 | ) | (1,398 | ) | — | — | 7,220 | (173,832 | ) | |||||||||||||||||
Non-current other receivables in the Pictures segment | — | — | — | — | — | — | — | |||||||||||||||||||||
Right-of-use | (59,566 | ) | (24,365 | ) | — | (208 | ) | — | (6,328 | ) | (90,467 | ) | ||||||||||||||||
Equity securities measured at FVOCI | (15,969 | ) | 923 | 8,846 | — | — | 1,823 | (4,377 | ) | |||||||||||||||||||
Equity securities measured at FVPL | (53,139 | ) | 31,952 | — | — | — | (3,380 | ) | (24,567 | ) | ||||||||||||||||||
Debt securities measured at FVOCI | (327,359 | ) | 5,024 | 322,581 | — | — | (246 | ) | — | |||||||||||||||||||
Intangible assets acquired through stock exchange offerings | (23,949 | ) | — | — | — | — | — | (23,949 | ) | |||||||||||||||||||
Intangible assets derived from EMI Music Publishing acquisition | (101,594 | ) | 2,277 | — | — | — | (6,639 | ) | (105,956 | ) | ||||||||||||||||||
Undistributed earnings of foreign subsidiaries and corporate joint ventures | (56,031 | ) | (15,318 | ) | — | — | — | 1,759 | (69,590 | ) | ||||||||||||||||||
Investment in M3 | (42,692 | ) | (4,646 | ) | — | — | — | — | (47,338 | ) | ||||||||||||||||||
Other | (67,610 | ) | 13,812 | (52 | ) | (3,120 | ) | (159 | ) | (7,127 | ) | (64,256 | ) | |||||||||||||||
Total deferred tax liabilities | (1,106,720 | ) | (11,572 | ) | 324,208 | (3,328 | ) | (159 | ) | (13,405 | ) | (810,976 | ) | |||||||||||||||
* | Other mainly consists of exchange differences on tra nslatin g foreig n operations. |
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Deferred tax assets: | ||||||||
Operating loss carryforwards for tax purposes | 348,714 | 302,647 | ||||||
Accrued pension and severance costs | 77,559 | 59,608 | ||||||
Amortization including film costs | 65,349 | 45,506 | ||||||
Lease liabilities | 100,720 | 91,186 | ||||||
Warranty reserves and accrued expenses | 116,234 | 138,413 | ||||||
Future insurance policy benefits | 42,056 | 44,023 | ||||||
Inventories | 15,512 | 28,086 | ||||||
Depreciation | 39,085 | 45,096 | ||||||
Tax credit carryforwards | 94,900 | 63,590 | ||||||
Loss on equity securities | 11,815 | 0 | ||||||
Allowance for credit losses | 9,090 | 7,958 | ||||||
Impairment of investments | 6,029 | 1,821 | ||||||
Deferred revenue | 24,420 | 24,502 | ||||||
Other | 122,591 | 167,255 | ||||||
Gross deferred tax assets | 1,074,074 | 1,019,691 | ||||||
Less: Valuation allowance | (608,243 | ) | (276,382 | ) | ||||
Total deferred tax assets | 465,831 | 743,309 | ||||||
Deferred tax liabilities: | ||||||||
Insurance acquisition costs | (170,868 | ) | (187,155 | ) | ||||
Future insurance policy benefits | (193,315 | ) | (196,045 | ) | ||||
Unbilled accounts receivable in the Pictures segment | (26,214 | ) | (7,894 | ) | ||||
Right-of-use | (96,970 | ) | (85,244 | ) | ||||
Unrealized gains on securities | (92,791 | ) | (51,147 | ) | ||||
Gain on equity securities | 0 | (109,218 | ) | |||||
Intangible assets acquired through stock exchange offerings | (23,949 | ) | (23,949 | ) | ||||
Intangible assets derived from EMI Music Publishing acquisition | (89,909 | ) | (93,481 | ) | ||||
Undistributed earnings of foreign subsidiaries and corporate joint ventures | (25,359 | ) | (41,515 | ) | ||||
Investment in M3 | (38,303 | ) | (41,347 | ) | ||||
Other | (47,319 | ) | (65,605 | ) | ||||
Gross deferred tax liabilities | (804,997 | ) | (902,600 | ) | ||||
Net deferred tax liabilities | (339,166 | ) | (159,291 | ) | ||||
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Deductible temporary differences | 154,581 | 126,406 | ||||||
Operating loss carryforwards | 1,437,551 | 1,384,658 | ||||||
Tax credit carryforwards | 19,066 | 18,853 |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2022 | 2023 | |||||||
Within 5 years | 599,333 | 602,799 | ||||||
Over 5 years to 10 years | 277,418 | 250,587 | ||||||
Over 10 years to 15 years | 23,974 | 25,786 | ||||||
Over 15 years | 2,930 | 13,245 | ||||||
No expiration period | 533,896 | 492,241 | ||||||
Total | 1,437,551 | 1,384,658 | ||||||
Yen in millions | ||||||||||||
March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at beginning of the fiscal year | 95,425 | 50,577 | 41,268 | |||||||||
Reductions for tax positions of prior years | (31,396 | ) | (331 | ) | (761 | ) | ||||||
Additions for tax positions of prior years | 3,094 | 162 | 52 | |||||||||
Additions based on tax positions related to the current year | 2,594 | 8,074 | 8,267 | |||||||||
Settlements | (4,235 | ) | (13,240 | ) | (4,467 | ) | ||||||
Lapse in statute of limitations | (14,824 | ) | (1,251 | ) | (1,095 | ) | ||||||
Foreign currency translation adjustments | (81 | ) | (2,723 | ) | 2,476 | |||||||
Balance at end of the fiscal year | 50,577 | 41,268 | 45,740 | |||||||||
Total net amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 35,004 | 29,539 | 33,126 |
26. Reconciliation of the differences between basic and diluted EPS |
Yen in millions | Yen in millions | |||||||||||||||||||||||
Fiscal year ended March 31 | Fiscal year ended March 31 | |||||||||||||||||||||||
2019 | 2020 | 2021 | 2021 | 2022 | 2023 | |||||||||||||||||||
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation | 916,271 | 582,191 | 1,171,776 | |||||||||||||||||||||
Net income attributable to Sony Group Corporation’s stockholders | 1,029,610 | 882,178 | 937,126 | |||||||||||||||||||||
Adjustment amount to net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation: | ||||||||||||||||||||||||
Zero coupon convertible bonds | 385 | 163 | 51 | |||||||||||||||||||||
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation | 1,029,995 | 882,341 | 937,177 | |||||||||||||||||||||
Thousands of shares | Thousands of shares | |||||||||||||||||||||||
Weighted-average shares outstanding | 1,266,592 | 1,234,408 | 1,230,480 | |||||||||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||||||||||
2021 | 2022 | 2023 | ||||||||||||||||||||||
Weighted-average shares outstanding for basic EPS computation | 1,230,480 | 1,239,299 | 1,235,701 | |||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||
Stock acquisition rights | 4,088 | 3,853 | 4,820 | |||||||||||||||||||||
Stock acquisition rights and other | 4,474 | 5,470 | 3,646 | |||||||||||||||||||||
Zero coupon convertible bonds | 23,966 | 23,994 | 15,392 | 15,392 | 6,491 | 2,030 | ||||||||||||||||||
Weighted-average shares for diluted EPS computation | 1,294,646 | 1,262,255 | 1,250,692 | 1,250,346 | 1,251,260 | 1,241,377 | ||||||||||||||||||
Yen | ||||||||||||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||||||||||
Yen | 2021 | 2022 | 2023 | |||||||||||||||||||||
Basic EPS | 723.41 | 471.64 | 952.29 | 836.75 | 711.84 | 758.38 | ||||||||||||||||||
Diluted EPS | 707.74 | 461.23 | 936.90 | 823.77 | 705.16 | 754.95 | ||||||||||||||||||
Supplemental cash flow information |
(1) |
(2) | Classification of cash flows of content assets |
(3) | Interest and dividends |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Interest received | ||||||||||||
Financial services revenue | 198,310 | 208,170 | 224,137 | |||||||||
Financial income | 8,409 | 6,988 | 20,872 | |||||||||
Dividends received | ||||||||||||
Financial services revenue | 19,299 | 27,075 | 23,409 | |||||||||
Financial income | 1,559 | 2,800 | 3,488 | |||||||||
Interest paid | ||||||||||||
Financial services expenses | 9,659 | 6,607 | 27,352 | |||||||||
Financial expenses | 8,172 | 8,843 | 11,663 |
(4) | Non-cash investing and financing activities |
(5) | Reconciliation of liabilities arising from financing activities |
Yen in millions | ||||||||
Short-term borrowings | Long-term debt | |||||||
Balance as of April 1, 2020 | 66,631 | 817,919 | ||||||
Net cash flows from financing activities | (18,334 | ) | 147,017 | |||||
Acquisitions through business combinations | — | 59 | ||||||
Non-cash items: | ||||||||
Conversion of convertible bonds | — | (78,342 | ) | |||||
Obtaining assets by entering into lease contracts | — | 56,247 | ||||||
Translation adjustment | 106 | 15,514 | ||||||
Other | 4,134 | 10,630 | ||||||
Total changes | (14,094 | ) | 151,125 | |||||
Balance as of March 31, 2021 | 52,537 | 969,044 | ||||||
Net cash flows from financing activities | 408 | (163,104 | ) | |||||
Acquisitions through business combinations | — | 8,346 | ||||||
Non-cash items: | ||||||||
Conversion of convertible bonds | — | (14,597 | ) | |||||
Obtaining assets by entering into lease contracts | — | 121,937 | ||||||
Translation adjustment | 1,659 | 35,652 | ||||||
Other | 1,487 | (6,045 | ) | |||||
Total changes | 3,554 | (17,811 | ) | |||||
Balance as of March 31, 2022 | 56,091 | 951,233 | ||||||
Net cash flows from financing activities | 32,391 | 229,578 | ||||||
Acquisitions through business combinations | — | 32,009 | ||||||
Non-cash items: | ||||||||
Conversion of convertible bonds | — | (26,563 | ) | |||||
Obtaining assets by entering into lease contracts | — | 127,322 | ||||||
Translation adjustment | 4,533 | 22,684 | ||||||
Other | (369 | ) | (13,936 | ) | ||||
Total changes | 36,555 | 371,094 | ||||||
Balance as of March 31, 2023 | 92,646 | 1,322,327 | ||||||
(6) | Components of cash and cash equivalents |
Yen in millions | ||||||||||||
March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Cash and demand deposits | 902,036 | 1,824,912 | 1,227,541 | |||||||||
Time deposits with original maturities of three months or less | 635,848 | 72,270 | 76,452 | |||||||||
Money market funds | 249,098 | 71,554 | 116,607 | |||||||||
Call loans | — | 80,900 | 60,300 | |||||||||
Total | 1,786,982 | 2,049,636 | 1,480,900 | |||||||||
28. | Structured entities |
(1) | Consolidated structured entities |
(2) | Unconsolidated |
Yen in millions | ||||||||||||||||
March 31, 2020 | ||||||||||||||||
Presentation in the consolidated balance sheets | Maximum exposure to loss | |||||||||||||||
Marketable securities | Securities investments and other | Prepaid expenses and other current assets | ||||||||||||||
Equity securities *1 | 579,773 | 6,229 | — | 587,602 | ||||||||||||
Securitized products | — | 210,641 | — | 210,641 | ||||||||||||
Foreign corporate bonds *2 | 41,452 | 41,036 | — | 82,488 | ||||||||||||
Other investments | — | 16,253 | 21,000 | 43,719 | ||||||||||||
Total | 621,225 | 274,159 | 21,000 | 924,450 | ||||||||||||
Yen in millions | ||||||||||||||||
March 31, 2021 | ||||||||||||||||
Presentation in the consolidated balance sheets | Maximum exposure to loss | |||||||||||||||
Marketable securities | Securities investments and other | Prepaid expenses and other current assets | ||||||||||||||
Equity securities *1 | 681,201 | 6,698 | — | 688,428 | ||||||||||||
Securitized products | — | 270,818 | — | 270,818 | ||||||||||||
Foreign corporate bonds *2 | 49,011 | 31,026 | — | 80,037 | ||||||||||||
Other investments | 101 | 42,525 | 21,000 | 83,659 | ||||||||||||
Total | 730,313 | 351,067 | 21,000 | 1,122,942 | ||||||||||||
Yen in millions | ||||||||||||||||
March 31, 2022 | ||||||||||||||||
Presentation in the consolidated statements of financial position | Maximum exposure to loss | |||||||||||||||
Investments and advances in the Financial Services segment (Current assets) | Investments and advances in the Financial Services segment (Non-current assets) | Other financial assets (Current assets) | ||||||||||||||
Securitized products | — | 356,862 | — | 356,862 | ||||||||||||
Foreign corporate bonds *1 | 28,412 | 168,167 | — | 196,579 | ||||||||||||
Other investments *2 | 2 | 247,394 | 24,697 | 286,662 | ||||||||||||
Total | 28,414 | 772,423 | 24,697 | 840,103 | ||||||||||||
Yen in millions | ||||||||||||||||
March 31, 2023 | ||||||||||||||||
Presentation in the consolidated statements of financial position | Maximum exposure to loss | |||||||||||||||
Investments and advances in the Financial Services segment (Current assets) | Investments and advances in the Financial Services segment (Non-current assets) | Other financial assets (Current assets) | ||||||||||||||
Securitized products | — | 401,642 | — | 401,642 | ||||||||||||
Foreign corporate bonds *1 | 20,806 | 186,878 | — | 207,684 | ||||||||||||
Other investments *2 | — | 286,066 | 25,464 | 332,076 | ||||||||||||
Total | 20,806 | 874,586 | 25,464 | 941,402 | ||||||||||||
*1 | Foreign corporate bonds primarily include |
*2 | Other investments primarily include |
Subsidiaries |
Name of company | Country of incorporation /residence | (As of March 31, 2023) Percentage owned | ||
Sony Interactive Entertainment Inc. | Japan | 100.0 | ||
Sony Music Entertainment (Japan) Inc. | Japan | 100.0 | ||
Sony Corporation | Japan | 100.0 | ||
Sony Global Manufacturing & Operations Corporation | Japan | 100.0 | ||
Sony Semiconductor Solutions Corporation | Japan | 100.0 | ||
Sony Semiconductor Manufacturing Corporation | Japan | 100.0 | ||
Sony Network Communications Inc. | Japan | 100.0 | ||
Sony Marketing Inc. | Japan | 100.0 | ||
Sony Storage Media Solutions Corporation | Japan | 100.0 | ||
Sony Financial Group Inc. | Japan | 100.0 | ||
Sony Life Insurance Co., Ltd. | Japan | 100.0 | ||
Sony Bank Inc. | Japan | 100.0 | ||
Sony Assurance Inc. | Japan | 100.0 | ||
Sony Corporation of America | U.S.A. | 100.0 | ||
Sony Interactive Entertainment LLC | U.S.A. | 100.0 | ||
Sony Music Entertainment | U.S.A. | 100.0 | ||
Sony Music Publishing LLC | U.S.A. | 100.0 | ||
Sony Pictures Entertainment Inc. | U.S.A. | 100.0 | ||
Sony Electronics Inc. | U.S.A. | 100.0 | ||
Sony Europe B.V. | U.K. | 100.0 | ||
Sony Interactive Entertainment Europe Ltd. | U.K. | 100.0 | ||
Sony Global Treasury Services Plc | U.K. | 100.0 | ||
Sony Overseas Holding B.V. | Netherlands | 100.0 | ||
Sony (China) Limited | China | 100.0 | ||
Sony EMCS (Malaysia) Sdn. Bhd. | Malaysia | 100.0 | ||
Sony Electronics (Singapore) Pte. Ltd. | Singapore | 100.0 |
30. | Acquisitions |
(1) |
Yen in millions | ||||||||||||
Acquired assets and liabilities recorded at fair value as of acquisition date (Preliminary) | Measurement period adjustments | Acquired assets and liabilities recorded at fair value as of acquisition date (Final) | ||||||||||
Cash and cash equivalents | 12,971 | 12,971 | ||||||||||
Notes and accounts receivable, trade and contract assets | 32,287 | 32,287 | ||||||||||
Prepaid expenses and other current assets | 10,220 | (98 | ) | 10,122 | ||||||||
Securities investments and other | 1,476 | 1,476 | ||||||||||
Intangibles, net | 420,534 | 420,534 | ||||||||||
Goodwill | 237,271 | (1,206 | ) | 236,065 | ||||||||
Other | 10,023 | 10,023 | ||||||||||
Total assets | 724,782 | (1,304 | ) | 723,478 | ||||||||
Notes and accounts payable, trade | 1,731 | 1,731 | ||||||||||
Accounts payable, other and accrued expenses | 70,675 | 70,675 | ||||||||||
Accrued income and other taxes | 3,082 | (69 | ) | 3,013 | ||||||||
Long-term debt | 148,621 | 148,621 | ||||||||||
Accrued pension and severance costs | 1,947 | 1,947 | ||||||||||
Deferred income taxes | 94,849 | (1,235 | ) | 93,614 | ||||||||
Other | 5,564 | 5,564 | ||||||||||
Total liabilities | 326,469 | (1,304 | ) | 325,165 | ||||||||
Yen in millions | ||||
Cash and cash equivalents | 8,379 | |||
Trade and other receivables, and contract assets | 3,714 | |||
Inventories | 3,295 | |||
Right-of-use | 4,962 | |||
Goodwill | 81,250 | |||
Content assets | 36,266 | |||
Other intangible assets | 35,697 | |||
Other | 2,512 | |||
Total assets | 176,075 | |||
Trade and other payables | 17,365 | |||
Other current liabilities | 7,723 | |||
Long-term debt | 4,386 | |||
Deferred tax liabilities | 9,408 | |||
Other | 659 | |||
Total liabilities | 39,541 | |||
Yen in millions | ||||
Cash and cash equivalents | ||||
Right-of-use | 15,540 | |||
Goodwill | ||||
Content assets | 45,512 | |||
Other intangible assets | 66,257 | |||
Deferred tax assets | 7,297 | |||
Other | ||||
Total assets | ||||
Long-term debt | 30,944 | |||
Other | ||||
Total liabilities | ||||
Other acquisitions |
32. | Related party transactions |
(1) | Account balances and transactions with associates and joint ventures accounted for under the equity method |
Yen in millions | ||||||||
March 31 | ||||||||
2022 | 2023 | |||||||
Trade and other accounts receivable | ||||||||
Associates | 9,587 | 7,779 | ||||||
Joint ventures | 5,143 | 6,326 | ||||||
Total | 14,730 | 14,105 | ||||||
Other current assets | ||||||||
Associates | 7,042 | 7,747 | ||||||
Joint ventures | — | — | ||||||
Total | 7,042 | 7,747 | ||||||
Accounts payable, trade | ||||||||
Associates | 1,219 | 1,425 | ||||||
Joint ventures | 157 | 228 | ||||||
Total | 1,376 | 1,653 | ||||||
Short-term borrowings | ||||||||
Associates | 2,131 | 3,124 | ||||||
Joint ventures | 20,132 | 25,218 | ||||||
Total | 22,263 | 28,342 | ||||||
Lease liabilities and other | ||||||||
Associates | 64,552 | 74,955 | ||||||
Joint ventures | — | — | ||||||
Total | 64,552 | 74,955 | ||||||
Accounts payable for property, plant and equipment | ||||||||
Associates | 7,189 | 12,050 | ||||||
Joint ventures | — | — | ||||||
Total | 7,189 | 12,050 | ||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Sales | ||||||||||||
Associates | 15,087 | 20,385 | 15,040 | |||||||||
Joint ventures | 17,985 | 27,374 | 30,220 | |||||||||
Total | 33,072 | 47,759 | 45,260 | |||||||||
Purchases | ||||||||||||
Associates | 3,083 | 3,271 | 4,450 | |||||||||
Joint ventures | 1 | 785 | 649 | |||||||||
Total | 3,084 | 4,056 | 5,099 | |||||||||
Lease payments and other | ||||||||||||
Associates | 8,028 | 11,180 | 13,720 | |||||||||
Joint ventures | — | — | — | |||||||||
Total | 8,028 | 11,180 | 13,720 | |||||||||
Payments for property, plant and equipment | ||||||||||||
Associates | 1,272 | 12,052 | 20,553 | |||||||||
Joint ventures | — | — | — | |||||||||
Total | 1,272 | 12,052 | 20,553 | |||||||||
(2) | Compensation for key management personnel |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Short-term employee benefits | 1,202 | 1,480 | 1,831 | |||||||||
Stock-based compensation | 2,329 | 1,597 | 1,928 | |||||||||
Total | 3,531 | 3,077 | 3,759 | |||||||||
(1) | Loan commitments |
(2) | Purchase commitments |
Fiscal year ending March 31 | Yen in millions | |||
2022 | 519,953 | |||
2023 | 112,975 | |||
2024 | 66,939 | |||
2025 | 53,358 | |||
2026 | 13,786 | |||
Later fiscal years | 44,389 | |||
Total | 811,400 | |||
(3) | Litigation |
(4) | Guarantees |
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at beginning of the fiscal year | 44,717 | 33,005 | 31,807 | |||||||||
Additional liabilities for warranties | 23,041 | 21,448 | 19,560 | |||||||||
Settlements (in cash or in kind) | (26,326 | ) | (21,491 | ) | (19,666 | ) | ||||||
Changes in estimate for pre-existing warranty reserve | (7,370 | ) | (562 | ) | (860 | ) | ||||||
Translation adjustments | (1,057 | ) | (593 | ) | 2,010 | |||||||
Balance at end of the fiscal year | 33,005 | 31,807 | 32,851 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Sales and operating revenue: | ||||||||||||
Game & Network Services — | ||||||||||||
Customers | 2,224,622 | 1,919,760 | 2,604,713 | |||||||||
Intersegment | 86,250 | 57,791 | 51,565 | |||||||||
Total | 2,310,872 | 1,977,551 | 2,656,278 | |||||||||
Music — | ||||||||||||
Customers | 795,025 | 838,592 | 927,250 | |||||||||
Intersegment | 12,464 | 11,317 | 12,617 | |||||||||
Total | 807,489 | 849,909 | 939,867 | |||||||||
Pictures — | ||||||||||||
Customers | 985,270 | 1,010,714 | 757,580 | |||||||||
Intersegment | 1,603 | 1,140 | 1,187 | |||||||||
Total | 986,873 | 1,011,854 | 758,767 | |||||||||
Electronics Products & Solutions — | ||||||||||||
Customers | 2,303,167 | 1,969,880 | 1,902,887 | |||||||||
Intersegment | 17,461 | 21,388 | 17,843 | |||||||||
Total | 2,320,628 | 1,991,268 | 1,920,730 | |||||||||
Imaging & Sensing Solutions — | ||||||||||||
Customers | 770,622 | 985,259 | 937,859 | |||||||||
Intersegment | 108,708 | 85,317 | 74,638 | |||||||||
Total | 879,330 | 1,070,576 | 1,012,497 | |||||||||
Financial Services — | ||||||||||||
Customers | 1,274,708 | 1,299,847 | 1,661,520 | |||||||||
Intersegment | 7,831 | 7,901 | 7,401 | |||||||||
Total | 1,282,539 | 1,307,748 | 1,668,921 | |||||||||
All Other — | ||||||||||||
Customers | 299,806 | 214,999 | 196,517 | |||||||||
Intersegment | 45,931 | 36,421 | 32,736 | |||||||||
Total | 345,737 | 251,420 | 229,253 | |||||||||
Corporate and elimination | (267,781 | ) | (200,441 | ) | (186,953 | ) | ||||||
Consolidated total | 8,665,687 | 8,259,885 | 8,999,360 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Operating income (loss): | ||||||||||||
Game & Network Services | 311,092 | 238,400 | 342,192 | |||||||||
Music | 232,487 | 142,345 | 188,056 | |||||||||
Pictures | 54,599 | 68,157 | 80,478 | |||||||||
Electronics Products & Solutions | 76,508 | 87,276 | 139,180 | |||||||||
Imaging & Sensing Solutions | 143,874 | 235,584 | 145,876 | |||||||||
Financial Services | 161,477 | 129,597 | 164,582 | |||||||||
All Other | (11,127 | ) | 16,288 | 11,368 | ||||||||
Total | 968,910 | 917,647 | 1,071,732 | |||||||||
Corporate and elimination | (74,675 | ) | (72,188 | ) | (99,867 | ) | ||||||
Consolidated operating income | 894,235 | 845,459 | 971,865 | |||||||||
Other income | 144,735 | 21,949 | 264,235 | |||||||||
Other expenses | (27,322 | ) | (67,958 | ) | (43,730 | ) | ||||||
Consolidated income before income taxes | 1,011,648 | 799,450 | 1,192,370 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Equity in net income (loss) of affiliated companies: | ||||||||||||
Game & Network Services | — | — | 0 | |||||||||
Music | (6,915 | ) | 4,239 | 570 | ||||||||
Pictures | 106 | (629 | ) | 123 | ||||||||
Electronics Products & Solutions | (38 | ) | 136 | (36 | ) | |||||||
Imaging & Sensing Solutions | — | 0 | (123 | ) | ||||||||
Financial Services | (682 | ) | (104 | ) | 0 | |||||||
All Other | 4,530 | 5,995 | 10,953 | |||||||||
Consolidated total | (2,999 | ) | 9,637 | 11,487 | ||||||||
Depreciation and amortization: | ||||||||||||
Game & Network Services | 29,023 | 29,135 | 38,707 | |||||||||
Music | 21,259 | 29,137 | 30,666 | |||||||||
Pictures | 24,081 | 21,665 | 19,330 | |||||||||
Electronics Products & Solutions | 61,749 | 63,291 | 62,145 | |||||||||
Imaging & Sensing Solutions | 110,746 | 134,035 | 152,380 | |||||||||
Financial Services, including deferred insurance acquisition costs | 91,179 | 106,667 | 59,885 | |||||||||
All Other | 4,940 | 5,095 | 4,363 | |||||||||
Total | 342,977 | 389,025 | 367,476 | |||||||||
Corporate | 31,049 | 27,617 | 23,217 | |||||||||
Consolidated total | 374,026 | 416,642 | 390,693 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Sales and operating revenue: | ||||||||||||
Game & Network Services | ||||||||||||
Digital Software and Add-on Content | 1,102,231 | 1,010,296 | 1,454,654 | |||||||||
Network Services | 326,524 | 337,265 | 382,950 | |||||||||
Hardware and Others | 795,867 | 572,199 | 767,109 | |||||||||
Total | 2,224,622 | 1,919,760 | 2,604,713 | |||||||||
Music | ||||||||||||
Recorded Music — Streaming | 227,513 | 276,039 | 337,100 | |||||||||
Recorded Music — Others | 199,413 | 191,114 | 179,167 | |||||||||
Music Publishing | 106,666 | 157,478 | 156,862 | |||||||||
Visual Media and Platform | 261,433 | 213,961 | 254,121 | |||||||||
Total | 795,025 | 838,592 | 927,250 | |||||||||
Pictures | ||||||||||||
Motion Pictures | 436,017 | 475,061 | 271,081 | |||||||||
Television Productions | 288,816 | 301,224 | 267,123 | |||||||||
Media Networks | 260,437 | 234,429 | 219,376 | |||||||||
Total | 985,270 | 1,010,714 | 757,580 | |||||||||
Electronics Products & Solutions | ||||||||||||
Televisions | 788,423 | 646,513 | 709,007 | |||||||||
Audio and Video | 362,580 | 346,060 | 313,975 | |||||||||
Still and Video Cameras | 421,506 | 384,142 | 338,694 | |||||||||
Mobile Communications | 487,330 | 362,144 | 358,580 | |||||||||
Other | 243,328 | 231,021 | 182,631 | |||||||||
Total | 2,303,167 | 1,969,880 | 1,902,887 | |||||||||
Imaging & Sensing Solutions | 770,622 | 985,259 | 937,859 | |||||||||
Financial Services | 1,274,708 | 1,299,847 | 1,661,520 | |||||||||
All Other | 299,806 | 214,999 | 196,517 | |||||||||
Corporate | 12,467 | 20,834 | 11,034 | |||||||||
Consolidated total | 8,665,687 | 8,259,885 | 8,999,360 | |||||||||
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Sales and operating revenue: | ||||||||||||
Japan | 2,591,784 | 2,472,479 | 2,962,465 | |||||||||
United States | 1,982,135 | 1,864,390 | 2,153,466 | |||||||||
Europe | 1,862,166 | 1,697,791 | 1,816,244 | |||||||||
China | 770,416 | 845,235 | 762,766 | |||||||||
Asia-Pacific | 912,193 | 892,026 | 861,623 | |||||||||
Other Areas | 546,993 | 487,964 | 442,796 | |||||||||
Total | 8,665,687 | 8,259,885 | 8,999,360 | |||||||||
Yen in millions | ||||||||
March 31 | ||||||||
2020 | 2021 | |||||||
Property, plant and equipment, net and right-of-use | ||||||||
Japan | 946,922 | 999,280 | ||||||
United States | 214,226 | 211,109 | ||||||
Europe | 67,799 | 74,313 | ||||||
China | 17,996 | 16,976 | ||||||
Asia-Pacific | 46,932 | 48,515 | ||||||
Other Areas | 7,379 | 12,335 | ||||||
Total | 1,301,254 | 1,362,528 | ||||||
1. | Total number of shares for repurchase: 25 million shares (maximum) |
2. | Total purchase price for repurchase of shares: 200 billion yen (maximum) |
Yen in millions | ||||||||||||||||||||||||
Balance at beginning of period | Beginning adjustment (Note 1) | Additions charged to costs and expenses | Deductions (Note 3) | Other (Note 4) | Balance at end of period | |||||||||||||||||||
Fiscal year ended March 31, 2019: | ||||||||||||||||||||||||
Allowance for doubtful accounts | 48,663 | (25,114 | ) | 7,112 | (5,532 | ) | 311 | 25,440 | ||||||||||||||||
Fiscal year ended March 31, 2020: | ||||||||||||||||||||||||
Allowance for doubtful accounts | 25,440 | — | 9,006 | (6,908 | ) | (1,665 | ) | 25,873 | ||||||||||||||||
Fiscal year ended March 31, 2021: | ||||||||||||||||||||||||
Allowance for credit losses (Note 2) | 25,873 | 6,621 | 12,133 | (8,115 | ) | 1,313 | 37,825 | |||||||||||||||||
3. |
Yen in millions | ||||||||||||||||||||
Balance at beginning of period | Additions | Deductions (Note 1) | Other (Note 2) | Balance at end of period | ||||||||||||||||
Fiscal year ended March 31, 2019: | ||||||||||||||||||||
Valuation allowance — Deferred tax assets | 899,835 | 116,938 | (309,226 | ) | 15,567 | 723,114 | ||||||||||||||
Fiscal year ended March 31, 2020: | ||||||||||||||||||||
Valuation allowance — Deferred tax assets | 723,114 | 53,245 | (161,547 | ) | (6,569 | ) | 608,243 | |||||||||||||
Fiscal year ended March 31, 2021: | ||||||||||||||||||||
Valuation allowance — Deferred tax assets | 608,243 | 41,816 | (379,661 | ) | 5,984 | 276,382 | ||||||||||||||