Income Taxes (Tables)

12 Months Ended

Mar. 31, 2011

Income Taxes (Tables) [Abstract]

Domestic and foreign components of income (loss) before income taxes and the provision for current and deferred income taxes attributable to such income

Domestic and foreign components of income (loss) before income taxes and the provision for current and deferred income taxes attributable to such income are summarized as follows:

	Yen in millions
	Fiscal year ended March 31
	2009			2010			2011
Income (loss) before income taxes:
Sony Corporation and all subsidiaries in Japan		(4,453	)		45,290			143,917
Foreign subsidiaries		(170,502	)		(18,378	)		61,096
		(174,955	)		26,912			205,013
Income taxes — Current:
Sony Corporation and all subsidiaries in Japan		34,631			42,723			60,514
Foreign subsidiaries		45,890			5,975			57,404
		80,521			48,698			117,918
Income taxes — Deferred:
Sony Corporation and all subsidiaries in Japan		(105,211	)		(25,589	)		365,665
Foreign subsidiaries		(48,051	)		(9,151	)		(58,244	)
		(153,262	)		(34,740	)		307,421
Total income tax expense (benefit)		(72,741	)		13,958			425,339

Reconciliation of differences between statutory tax rate and effective tax rate

A reconciliation of the differences between the Japanese statutory tax rate and the effective tax rate is as follows:

	Fiscal year ended
	March 31
	2009			2010			2011
Statutory tax rate		(41.0	)%		41.0	%		41.0	%
Non-deductible expenses		1.9			10.3			1.3
Income tax credits		11.4			(18.0	)		(2.0	)
Change in valuation allowances		12.9			4.7			174.5
Change in deferred tax liabilities on undistributed earnings of foreign subsidiaries and corporate joint ventures		(31.8	)		5.8			1.5
Lower tax rate applied to life and non-life insurance business in Japan		0.8			(30.3	)		(2.8	)
Foreign income tax differential		0.5			(17.6	)		(10.5	)
Adjustments to tax accruals and reserves		(7.3	)		16.2			4.5
Effect of equity in net income (loss) of affiliated companies		5.9			46.0			(2.8	)
Other		5.1			(6.2	)		2.8
Effective income tax rate		(41.6	)%		51.9	%		207.5	%

Components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities are as follows:

	Yen in millions
	March 31
	2010			2011
Deferred tax assets:
Operating loss carryforwards for tax purposes		242,172			316,856
Accrued pension and severance costs		130,508			103,674
Film costs		22,683			16,405
Warranty reserves and accrued expenses		74,528			69,240
Future insurance policy benefits		21,810			26,177
Accrued bonus		22,764			24,825
Inventory		31,608			35,989
Depreciation		37,553			35,128
Tax credit carryforwards		70,737			74,284
Reserve for doubtful accounts		9,243			8,404
Impairment of investments		42,948			33,743
Deferred revenue in the Pictures segment		17,579			19,254
Other		136,363			140,745
Gross deferred tax assets		860,496			904,724
Less: Valuation allowance		(117,486	)		(463,702	)
Total deferred tax assets		743,010			441,022
Deferred tax liabilities:
Insurance acquisition costs		(151,548	)		(155,073	)
Unbilled accounts receivable in the Pictures segment		(42,421	)		(40,469	)
Unrealized gains on securities		(38,792	)		(33,101	)
Intangible assets acquired through stock exchange offerings		(32,456	)		(32,136	)
Undistributed earnings of foreign subsidiaries and#@corporate joint ventures		(44,717	)		(46,261	)
Other		(96,674	)		(109,903	)
Gross deferred tax liabilities		(406,608	)		(416,943	)
Net deferred tax assets		336,402			24,079

Net deferred tax assets included in consolidated balance sheets

Net deferred tax assets are included in the consolidated balance sheets as follows:

	Yen in millions
	March 31
	2010			2011
Current assets — Deferred income taxes		197,598			133,059
Other assets — Deferred income taxes		403,537			239,587
Current liabilities — Other		(28,212	)		(42,340	)
Long-term liabilities — Deferred income taxes		(236,521	)		(306,227	)
Net deferred tax assets		336,402			24,079

Reconciliation of the beginning and ending gross amounts of unrecognized tax benefits

	Yen in millions
	March 31
	2009			2010			2011
Balance at beginning of the fiscal year		282,098			276,627			229,228
Reductions for tax positions of prior years		(23,585	)		(38,450	)		(39,005	)
Additions for tax positions of prior years		11,164			4,816			19,947
Additions based on tax positions related to the current year		68,848			10,873			41,201
Settlements		(13,267	)		(5,921	)		(1,478	)
Lapse in statute of limitations		(921	)		(1,506	)		(7,770	)
Foreign currency translation adjustments		(47,710	)		(17,211	)		(17,003	)
Balance at end of the fiscal year		276,627			229,228			225,120
Total net amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate		72,008			76,125			87,497