Pension and severance plans (Tables)

12 Months Ended

Mar. 31, 2014

Components of Net Periodic Benefit Costs

The components of net periodic benefit costs for the fiscal years ended March 31, 2012, 2013 and 2014 were as follows:

Japanese plans:


	Yen in millions
	Fiscal year ended March 31
	2012			2013			2014
Service cost		29,774			25,343			24,827
Interest cost		15,196			14,606			12,152
Expected return on plan assets		(15,401	)		(16,389	)		(17,822	)
Recognized actuarial loss		12,219			12,853			11,480
Amortization of prior service costs		(10,380	)		(10,271	)		(10,176	)

Net periodic benefit costs		31,408			26,142			20,461

Foreign plans:


	Yen in millions
	Fiscal year ended March 31
	2012			2013			2014
Service cost		3,348			2,387			3,032
Interest cost		10,082			10,197			12,068
Expected return on plan assets		(9,049	)		(9,245	)		(11,480	)
Amortization of net transition asset		139			117			12
Recognized actuarial loss		2,771			1,781			3,693
Amortization of prior service costs		(448	)		(566	)		(643	)
Losses (gains) on curtailments and settlements		1,111			(405	)		1,074

Net periodic benefit costs		7,954			4,266			7,756

Changes in Benefit Obligation and Plan Assets as well as Funded Status and Composition of Amounts Recognized in Consolidated Balance Sheets

The changes in the benefit obligation and plan assets as well as the funded status and composition of amounts recognized in the consolidated balance sheets were as follows:


	Japanese plans						Foreign plans
	Yen in millions						Yen in millions
	March 31						March 31
	2013			2014			2013			2014
Change in benefit obligation:
Benefit obligation at beginning of the fiscal year		789,059			827,044			221,641			274,928
Service cost		25,343			24,827			2,387			3,032
Interest cost		14,606			12,152			10,197			12,068
Plan participants’ contributions		—			—			619			813
Amendments		—			—			27			(107	)
Actuarial loss		49,258			14,138			25,385			3,392
Foreign currency exchange rate changes		—			—			27,354			36,867
Curtailments and settlements		—			—			(2,106	)		(4,500	)
Effect of changes in consolidated subsidiaries		(15,061	)		(5	)		—			—
Benefits paid		(36,161	)		(30,710	)		(10,576	)		(12,795	)

Benefit obligation at end of the fiscal year		827,044			847,446			274,928			313,698

Change in plan assets:
Fair value of plan assets at beginning of the fiscal year		556,247			608,004			151,139			188,019
Actual return on plan assets		69,491			53,476			17,075			17,979
Foreign currency exchange rate changes		—			—			18,460			26,167
Employer contribution		10,369			16,758			10,501			6,912
Plan participants’ contributions		—			—			619			813
Curtailments and settlements		—			—			(351	)		(3,334	)
Effect of changes in consolidated subsidiaries		(7,003	)		—			—			—
Benefits paid		(21,100	)		(23,446	)		(9,424	)		(11,532	)

Fair value of plan assets at end of the fiscal year		608,004			654,792			188,019			225,024

Funded status at end of the fiscal year		(219,040	)		(192,654	)		(86,909	)		(88,674	)

Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the consolidated balance sheets consist of:


	Japanese plans						Foreign plans
	Yen in millions						Yen in millions
	March 31						March 31
	2013			2014			2013			2014
Noncurrent assets		2,219			2,446			1,903			3,292
Current liabilities		—			—			(2,462	)		(2,565	)
Noncurrent liabilities		(221,259	)		(195,100	)		(86,350	)		(89,401	)

Ending balance		(219,040	)		(192,654	)		(86,909	)		(88,674	)

Amounts Recognized in Accumulated Other Comprehensive Income, Excluding Tax Effects

Amounts recognized in accumulated other comprehensive income, excluding tax effects, consist of:


	Japanese plans						Foreign plans
	Yen in millions						Yen in millions
	March 31						March 31
	2013			2014			2013			2014
Prior service cost (credit)		(64,194	)		(54,008	)		(2,753	)		(2,307	)
Net actuarial loss		264,559			237,023			62,686			61,841
Obligation existing at transition		—			—			35			25

Ending balance		200,365			183,015			59,968			59,559

Accumulated Benefit Obligations for All Defined Benefit Pension Plans

The accumulated benefit obligations for all defined benefit pension plans were as follows:

Japanese plans

Foreign plans

Yen in millions

March 31

2013

2014

2013

2014

Accumulated benefit obligations

824,345

842,978

233,949

290,014

Projected Benefit Obligations, Accumulated Benefit Obligations and Fair Value of Plan Assets for Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets

The projected benefit obligations, the accumulated benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were as follows:


	Japanese plans				Foreign plans
	Yen in millions				Yen in millions
	March 31				March 31
	2013		2014		2013		2014
Projected benefit obligations		819,059		838,145		210,384		260,950
Accumulated benefit obligations		816,360		834,694		204,253		255,018
Fair value of plan assets		599,227		644,502		154,058		186,519

Fair Values of Assets Held by Japanese and Foreign Plans

The fair values of the assets held by Japanese and foreign plans, which are classified in accordance with the fair value hierarchy described in Note 2, are as follows:


	Japanese plans
	Yen in millions
	Fair value at March 31, 2013		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2013		Level 1		Level 2		Level 3
Cash and cash equivalents		8,419		8,419		—		—
Equity:
Equity securities*¹		157,566		154,630		2,936		—
Fixed income:
Government bonds*²		268,297		—		268,297		—
Corporate bonds*³		33,053		—		33,053		—
Asset-backed securities*⁴		2,797		—		2,797		—
Commingled funds*⁵		72,410		—		72,410		—
Commodity funds*⁶		1,712		—		1,712		—
Private equity*⁷		27,205		—		—		27,205
Hedge funds*⁸		35,071		—		—		35,071
Real estate		1,474		—		—		1,474

Total		608,004		163,049		381,205		63,750


	Japanese plans
	Yen in millions
	Fair value at March 31, 2014		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2014		Level 1		Level 2		Level 3
Cash and cash equivalents		8,384		8,384		—		—
Equity:
Equity securities*¹		173,067		169,210		3,857		—
Fixed income:
Government bonds*²		263,921		—		263,921		—
Corporate bonds*³		50,131		—		50,131		—
Asset-backed securities*⁴		2,930		—		2,930		—
Commingled funds*⁵		84,853		—		84,853		—
Commodity funds*⁶		1,767		—		1,767		—
Private equity*⁷		26,942		—		—		26,942
Hedge funds*⁸		41,108		—		—		41,108
Real estate		1,689		—		—		1,689

Total		654,792		177,594		407,459		69,739

*1	Includes approximately 63 percent and 64 percent of Japanese equity securities, and 37 percent and 36 percent of foreign equity securities for the fiscal years ended March 31, 2013 and 2014, respectively.

*2	Includes approximately 59 percent and 56 percent of debt securities issued by Japanese national and local governments, and 41 percent and 44 percent of debt securities issued by foreign national and local governments for the fiscal years ended March 31, 2013 and 2014, respectively.

*3	Includes debt securities issued by Japanese and foreign corporation and government related agencies.

*4	Includes primarily mortgage-backed securities.

Commingled funds represent pooled institutional investments, including primarily investment trusts. They include approximately 48 percent and 47 percent of investments in equity, 48 percent and 51 percent of investments in fixed income, and 4 percent and 2 percent of investments in other for the fiscal years ended March 31, 2013 and 2014, respectively.

*6	Represents commodity futures funds.

*7	Includes multiple private equity funds of funds that primarily invest in venture, buyout, and distressed markets in the U.S. and Europe.

*8	Includes primarily funds that invest in a portfolio of a broad range of hedge funds to diversify the risks and reduce the volatilities associated with a single hedge fund.


	Foreign plans
	Yen in millions
	Fair value at March 31, 2013		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2013		Level 1		Level 2		Level 3
Cash and cash equivalents		171		171		—		—
Equity:
Equity securities*¹		36,917		29,348		7,569		—
Fixed income:
Government bonds*²		52,061		—		52,061		—
Corporate bonds*³		20,095		—		15,322		4,773
Asset-backed securities		526		—		526		—
Insurance contracts*⁴		11,639		—		11,639		—
Commingled funds*⁵		58,007		—		58,007		—
Real estate and other*⁶		8,603		73		1,573		6,957

Total		188,019		29,592		146,697		11,730


	Foreign plans
	Yen in millions
	Fair value at March 31, 2014		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2014		Level 1		Level 2		Level 3
Cash and cash equivalents		1,648		1,648		—		—
Equity:
Equity securities*¹		48,140		40,045		8,095		—
Fixed income:
Government bonds*²		61,644		—		61,644		—
Corporate bonds*³		25,937		—		19,682		6,255
Asset-backed securities		332		—		332		—
Insurance contracts*⁴		11,364		—		11,364		—
Commingled funds*⁵		63,057		—		63,057		—
Real estate and other*⁶		12,902		—		3,970		8,932

Total		225,024		41,693		168,144		15,187

*1	Includes primarily foreign equity securities.

*2	Includes primarily foreign government debt securities.

*3	Includes primarily foreign corporate debt securities.

*4	Represents annuity contracts with or without profit sharing.

*5	Commingled funds represent pooled institutional investments including mutual funds, common trust funds, and collective investment funds. They are primarily comprised of foreign equities and fixed income investments.

*6	Includes primarily private real estate investment trusts.

Summary of Changes in Fair Values of Japanese and Foreign Plans' Level Three Assets

The following table sets forth a summary of changes in the fair values of Japanese and foreign plans’ level 3 assets for the fiscal years ended March 31, 2013 and 2014:


	Japanese plans
	Yen in millions
	Fair value measurement using significant unobservable inputs (Level 3)
	Private equity			Hedge funds			Real estate		Total
Beginning balance at April 1, 2012		23,388			42,258			1,435		67,081
Return on assets held at end of year		3,817			(1,514	)		39		2,342
Return on assets sold during the year		—			—			—		—
Purchases, sales, and settlements, net		—			(5,673	)		—		(5,673	)
Transfers, net		—			—			—		—

Ending balance at March 31, 2013		27,205			35,071			1,474		63,750

Return on assets held at end of year		1,123			1,514			215		2,852
Return on assets sold during the year		—			—			—		—
Purchases, sales, and settlements, net		(1,386	)		4,523			—		3,137
Transfers, net		—			—			—		—

Ending balance at March 31, 2014		26,942			41,108			1,689		69,739


	Foreign plans
	Yen in millions
	Fair value measurement using significant unobservable inputs (Level 3)
	Corporate bonds			Commingled funds		Real estate and other			Total
Beginning balance at April 1, 2012		3,961			—		5,083			9,044
Return on assets held at end of year		260			—		245			505
Return on assets sold during the year		1			—		—			1
Purchases, sales, and settlements, net		(20	)		—		(23	)		(43	)
Transfers, net		—			—		—			—
Other*		571			—		1,652			2,223

Ending balance at March 31, 2013		4,773			—		6,957			11,730

Return on assets held at end of year		1,032			—		504			1,536
Return on assets sold during the year		—			—		(47	)		(47	)
Purchases, sales, and settlements, net		—			—		69			69
Transfers, net		—			—		—			—
Other*		450			—		1,449			1,899

Ending balance at March 31, 2014		6,255			—		8,932			15,187

*	Primarily consists of translation adjustments.

Expected Future Benefit Payments

The expected future benefit payments are as follows:


	Japanese plans		Foreign plans
Fiscal year ending March 31	Yen in millions		Yen in millions
2015		31,224		11,374
2016		33,221		11,689
2017		34,303		12,393
2018		35,929		13,270
2019		39,183		13,761
2020 — 2024		216,059		76,629

Total Defined Contribution Expenses

Total defined contribution expenses for the fiscal years ended March 31, 2012, 2013 and 2014 were as follows:


	Yen in millions
	Fiscal year ended March 31
	2012		2013		2014
Japanese plans		464		3,729		3,602
Foreign plans		6,726		13,070		12,703

Benefit obligation

Weighted-Average Assumptions

Weighted-average assumptions used to determine benefit obligations as of March 31, 2013 and 2014 were as follows:


	Japanese plans						Foreign plans
	March 31						March 31
	2013			2014			2013			2014
Discount rate		1.5	%		1.4	%		4.1	%		4.1	%
Rate of compensation increase		*			*			3.1			3.1

*	Substantially all of Sony’s Japanese pension plans were point-based. Point-based plans do not incorporate a measure of compensation rate increases.

Net periodic benefit cost

Weighted-Average Assumptions

Weighted-average assumptions used to determine the net periodic benefit costs for the fiscal years ended March 31, 2012, 2013 and 2014 were as follows:


	Japanese plans									Foreign plans
	Fiscal year ended March 31									Fiscal year ended March 31
	2012			2013			2014			2012			2013			2014
Discount rate		2.1	%		1.9	%		1.5	%		5.2	%		4.7	%		4.1	%
Expected return on plan assets		3.0			3.0			3.0			6.5			6.1			5.8
Rate of compensation increase		*			*			*			3.5			3.5			3.1

*	Substantially all of Sony’s Japanese pension plans were point-based. Point-based plans do not incorporate a measure of compensation rate increases.