Income taxes (Tables)

12 Months Ended

Mar. 31, 2013

Components of Domestic and Foreign Income (Loss) and Provision for Current and Deferred Income Taxes

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
	2011			2012			2013
Income (loss) before income taxes:
Sony Corporation and all subsidiaries in Japan		143,917			(106,496	)		185,767
Foreign subsidiaries		61,096			23,310			59,914
		205,013			(83,186	)		245,681
Income taxes — Current:
Sony Corporation and all subsidiaries in Japan		60,514			33,921			34,288
Foreign subsidiaries		57,404			74,624			41,446
		117,918			108,545			75,734
Income taxes — Deferred:
Sony Corporation and all subsidiaries in Japan		365,665			2,794			76,256
Foreign subsidiaries		(58,244	)		203,900			(10,485	)
		307,421			206,694			65,771
Total income tax expense		425,339			315,239			141,505

Reconciliation of 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
	2011			2012			2013
Statutory tax rate		41.0	%		(41.0	%)		38.3	%
Non-deductible expenses		1.3			4.2			1.3
Income tax credits		(2.0	)		(3.6	)		(1.4	)
Change in statutory tax rate		0.9			(36.2	)		(1.9	)
Change in valuation allowances		174.5			491.0			22.9
Change in deferred tax liabilities on undistributed earnings of foreign subsidiaries and corporate joint ventures		1.5			(21.2	)		(0.7	)
Lower tax rate applied to life and non-life insurance business in Japan		(2.8	)		(7.8	)		(3.2	)
Foreign income tax differential		(10.5	)		6.7			3.3
Adjustments to tax accruals and reserves		4.5			(15.9	)		(3.1	)
Effect of equity in net income (loss) of affiliated companies		(2.8	)		60.0			0.1
Sony Ericsson remeasurement gain		—			(50.6	)		—
Insurance recovery tax exemptions related to the Floods		—			(5.2	)		(1.2	)
Other		1.9			(1.4	)		3.2
Effective income tax rate		207.5	%		379.0	%		57.6	%

Components of Deferred Tax Assets and Liabilities

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

	Yen in millions
	March 31
	2012			2013
Deferred tax assets:
Operating loss carryforwards for tax purposes		533,912			546,322
Accrued pension and severance costs		87,871			102,970
Film costs		40,566			90,456
Warranty reserves and accrued expenses		82,842			70,529
Future insurance policy benefits		22,907			24,217
Inventory		37,431			33,232
Depreciation		39,473			38,334
Tax credit carryforwards		73,945			62,599
Reserve for doubtful accounts		5,580			5,629
Impairment of investments		34,387			32,136
Deferred revenue in the Pictures segment		21,980			30,181
Other		146,777			170,865
Gross deferred tax assets		1,127,671			1,207,470
Less: Valuation allowance		(868,233	)		(931,247	)
Total deferred tax assets		259,438			276,223
Deferred tax liabilities:
Insurance acquisition costs		(140,190	)		(145,048	)
Future insurance policy benefits		(66,998	)		(85,400	)
Unbilled accounts receivable in the Pictures segment		(45,467	)		(54,232	)
Unrealized gains on securities		(43,831	)		(63,730	)
Intangible assets acquired through stock exchange offerings		(28,139	)		(27,525	)
Undistributed earnings of foreign subsidiaries and corporate joint ventures		(27,920	)		(28,057	)
Investment in M3		—			(46,336	)
Other		(73,399	)		(61,152	)
Gross deferred tax liabilities		(425,944	)		(511,480	)
Net deferred tax liabilities		(166,506	)		(235,257	)

Net Deferred Tax Assets

Net deferred tax assets (net of valuation allowance) and liabilities are included in the consolidated balance sheets as follows:

	Yen in millions
	March 31
	2012			2013
Current assets — Deferred income taxes		36,769			44,615
Other assets — Deferred income taxes		100,460			107,688
Current liabilities — Other		(19,236	)		(13,561	)
Long-term liabilities — Deferred income taxes		(284,499	)		(373,999	)
Net deferred tax liabilities		(166,506	)		(235,257	)

Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits is as follows:

	Yen in millions
	March 31
	2011			2012			2013
Balance at beginning of the fiscal year		229,228			225,120			288,311
Reductions for tax positions of prior years		(39,005	)		(25,302	)		(11,533	)
Additions for tax positions of prior years		19,947			59,159			8,980
Additions based on tax positions related to the current year		41,201			44,307			27,849
Settlements		(1,478	)		(4,046	)		(140,813	)
Lapse in statute of limitations		(7,770	)		(3,807	)		(7,495	)
Foreign currency translation adjustments		(17,003	)		(7,120	)		26,587
Balance at end of the fiscal year		225,120			288,311			191,886
Total net amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate		87,497			77,925			72,947