Goodwill and intangible assets

12 Months Ended

Mar. 31, 2011

Goodwill and intangible assets [Abstract]


9.	*Goodwill and intangible assets*

Intangible assets acquired during the fiscal year ended March 31, 2011 totaled 92,249 million yen, of which 83,188 million yen is subject to amortization and are comprised of the following:


	Intangible assets		Weighted-average
	acquired during the year		amortization period
	Yen in millions		Years

Patent rights, know-how and license agreements		8,900		7
Software to be sold, leased or otherwise marketed		22,174		3
Music catalogs		730		8
Television carriage agreements (broadcasting agreements)		33,698		20
Other		17,686		2

Intangible assets subject to amortization are comprised of the following:


	Yen in millions
	March 31, 2010					March 31, 2011
	Gross carrying		Accumulated			Gross carrying		Accumulated
	amount		amortization			amount		amortization

Patent rights, know-how and license agreements		146,932		(79,403	)		122,444		(69,224	)
Software to be sold, leased or otherwise marketed		71,300		(29,606	)		76,112		(40,447	)
Music catalogs		175,172		(37,591	)		160,325		(40,455	)
Artist contracts		28,958		(16,754	)		27,727		(17,903	)
Television carriage agreements (broadcasting agreements)		1,224		(116	)		35,874		(228	)
Other		87,950		(48,904	)		90,508		(42,642	)

Total		511,536		(212,374	)		512,990		(210,899	)

The aggregate amortization expense for intangible assets for the fiscal years ended March 31, 2009, 2010 and 2011 was 47,101 million yen, 57,069 million yen and 52,763 million yen, respectively. The estimated aggregate amortization expense for intangible assets for the next five years is as follows:


Fiscal year ending March 31	Yen in millions

2012		46,539
2013		37,485
2014		28,821
2015		22,571
2016		18,012

Total carrying amount of intangible assets having an indefinite life are comprised of the following:


	Yen in millions
	March 31
	2010		2011

Trademarks		57,857		66,967
Distribution agreements		18,834		18,834
Other		3,064		3,230

Total		79,755		89,031

The changes in the carrying amount of goodwill by segment for the fiscal years ended March 31, 2010 and 2011 are as follows:


	Yen in millions
	Consumer,			Networked
	Professional			Products &									Financial
	& Devices			Services			Pictures			Music			Services			All Other			Total

Balance, March 31, 2009:
Goodwill — gross		73,349			123,432			107,478			112,963			3,020			43,346			463,588
Accumulated impairments		(5,620	)		—			—			(306	)		—			(13,704	)		(19,630	)

Goodwill		67,729			123,432			107,478			112,657			3,020			29,642			443,958

Increase (decrease) due to:
Acquisitions		—			724			6			7,848			—			4,847			13,425
Sales and dispositions		—			(27	)		—			—			—			(202	)		(229	)
Impairments		—			—			—			—			(706	)		(349	)		(1,055	)
Translation adjustments		(71	)		(249	)		(5,427	)		(1,943	)		—			(778	)		(8,468	)
Other¹²		(470	)		1			424			(8,676	)		—			(41	)		(8,762	)

Balance, March 31, 2010:
Goodwill — gross		72,808			123,881			102,481			110,192			3,020			40,774			453,156
Accumulated impairments		(5,620	)		—			—			(306	)		(706	)		(7,655	)		(14,287	)

Goodwill		67,188			123,881			102,481			109,886			2,314			33,119			438,869

Increase (decrease) due to:
Acquisitions*³		1,085			—			46,504			203			—			55			47,847
Sales and dispositions		—			(257	)		—			—			—			—			(257	)
Impairments		—			—			—			—			—			—			—
Translation adjustments		(133	)		(510	)		(8,401	)		(6,956	)		—			(1,335	)		(17,335	)
Other*¹		232			171			—			(445	)		—			(77	)		(119	)

Balance, March 31, 2011:
Goodwill — gross		73,992			123,285			140,584			102,994			3,020			39,417			483,292
Accumulated impairments		(5,620	)		—			—			(306	)		(706	)		(7,655	)		(14,287	)

Goodwill		68,372			123,285			140,584			102,688			2,314			31,762			469,005


*1		Other primarily consists of purchase price adjustments for prior years.

*2		Substantially all of the adjustments in the Music segment relate to a decrease of goodwill recognized from the acquisition of Bertelsmann AG’s 50% interest in the SONY BMG joint venture of 8,649 million yen, primarily to reflect an increase in the deferred tax assets recognized in connection with the acquisition and a decrease in the acquired liabilities as certain restructuring activities that were identified at the time of the acquisition will not be implemented. Refer to Note 19 and 24.

*3		Substantially all of the acquisition amounts in the Pictures segment relate to the Game Show Network acquisition. Refer to Note 24.

As described in Note 2, Sony performs an annual impairment test for goodwill. As a result of the impairment test, there were no impairments for the fiscal year ended March 31, 2011.

- Definition

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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