9.	*Goodwill and other intangible assets*

Intangible assets other than goodwill acquired during the fiscal year ended March 31, 2018 totaled 110,788 million yen, of which 110,781 million yen is subject to amortization, and are comprised of the following:


	Intangible assets acquired during the fiscal year		Weighted-average amortization period
	Yen in millions		Years
Patent rights, know-how and license agreements		16,003		4
Software to be sold, leased or otherwise marketed		16,066		3
Internal-use software		69,205		5
Other		9,507		7

In the fiscal year ended March 31, 2018, additions to internal-use software primarily related to the capitalization of new software across several business platforms.

Intangible assets subject to amortization are comprised of the following:


	Yen in millions
	March 31, 2017					March 31, 2018
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Patent rights, know-how and license agreements		317,337		(251,401	)		175,980		(142,724	)
Customer relationships		37,289		(15,585	)		18,881		(7,615	)
Trademarks		31,630		(15,554	)		16,310		(8,451	)
Software to be sold, leased or otherwise marketed		117,897		(86,661	)		123,269		(92,457	)
Internal-use software		473,750		(310,408	)		494,649		(315,516	)
Music catalogs		218,321		(95,367	)		207,789		(94,210	)
Artist contracts		31,393		(29,001	)		28,534		(27,650	)
Television carriage contracts (broadcasting agreements)		74,780		(21,986	)		74,258		(25,884	)
Other		62,212		(46,624	)		58,543		(47,586	)

Total		1,364,609		(872,587	)		1,198,213		(762,093	)

The aggregate amortization expense for intangible assets for the fiscal years ended March 31, 2016, 2017 and 2018 was 125,616 million yen, 121,634 million yen and 123,450 million yen, respectively. The estimated aggregate amortization expense for intangible assets for the next five fiscal years is as follows:


Fiscal year ending March 31	Yen in millions
2019		89,924
2020		73,516
2021		56,485
2022		39,050
2023		27,982

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


	Yen in millions
	March 31
	2017		2018
Trademarks		70,220		68,922
Distribution agreements		18,834		18,834
Other		3,109		3,292

Total		92,163		91,048

The changes in the carrying amount of goodwill by segment for the fiscal years ended March 31, 2017 and 2018 are as follows:


	Yen in millions
	G&NS			Music			Pictures			HE&S			IP&S			MC			Semiconductors			Financial Services			All Other			Total
Balance, March 31, 2016:
Goodwill — gross		152,293			162,078			221,517			5,320			8,637			179,331			49,621			3,020			31,536			813,353
Accumulated impairments		—			(306	)		—			(5,320	)		(300	)		(176,045	)		—			(706	)		(24,386	)		(207,063	)

Goodwill		152,293			161,772			221,517			—			8,337			3,286			49,621			2,314			7,150			606,290

Increase (decrease) due to:
Acquisitions^*1		—			7,689			29,363			—			—			—			—			61			—			37,113
Sales and dispositions		—			—			(60	)		—			—			—			—			—			—			(60	)
Impairments		—			—			(112,069	)		—			—			—			—			—			—			(112,069	)
Translation adjustments		(355	)		(3,351	)		(598	)		—			(186	)		—			(77	)		—			(11	)		(4,578	)
Other		—			—			—			—			—			—			(1,475	)		—			(2,683	)		(4,158	)

Balance, March 31, 2017:
Goodwill — gross		151,938			166,416			246,085			5,320			8,451			179,331			48,069			3,081			28,842			837,533
Accumulated impairments		—			(306	)		(107,932	)		(5,320	)		(300	)		(176,045	)		—			(706	)		(24,386	)		(314,995	)

Goodwill		151,938			166,110			138,153			—			8,151			3,286			48,069			2,375			4,456			522,538

Increase (decrease) due to:
Acquisitions		—			2,877			12,842			—			1,204			—			—			4,850			—			21,773
Sales and dispositions		—			(121	)		—			—			—			—			—			—			—			(121	)
Impairments		—			—			—			—			—			—			—			—			—			—
Translation adjustments		(1,332	)		(3,472	)		(6,583	)		—			162			—			(1,072	)		—			(85	)		(12,382	)
Other		—			—			—			—			—			—			(1,204	)		—			(112	)		(1,316	)

Balance, March 31, 2018:
Goodwill — gross		150,606			165,700			246,620			5,320			9,817			179,331			45,793			7,931			27,912			839,030
Accumulated impairments		—			(306	)		(102,208	)		(5,320	)		(300	)		(176,045	)		—			(706	)		(23,653	)		(308,538	)

Goodwill		150,606			165,394			144,412			—			9,517			3,286			45,793			7,225			4,259			530,492

Sony realigned its business segments from the first quarter of the fiscal year ended March 31, 2018. As a result of this realignment, the operation of the former Components segment is now included in All Other. In connection with this realignment, the carrying amounts of associated goodwill for the former Components segment have been reclassified into All Other for the fiscal years ended March 31, 2016 and 2017. Refer to Note 28.

*1	Acquisitions for the fiscal year ended March 31, 2017 relate mainly to the TEN Sports Network acquisition in the Pictures segment. Refer to Note 24.

Impairment of goodwill in the Pictures segment -

During the fiscal year ended March 31, 2017, Sony made a downward revision in the future profitability projection for the Motion Pictures business within the Pictures segment primarily due to a lowering of previous expectations regarding the home entertainment business, mainly driven by an acceleration of market decline. The future profitability projection for the Motion Pictures business also reflected a reduction in underlying profitability projections of film performance largely mitigated by measures identified to improve the profitability of the Motion Pictures business.

Sony assessed the aforementioned events and circumstances and determined that it was more likely than not that the fair value of the Production & Distribution reporting unit (which includes the Motion Pictures and the Television Productions businesses) was less than its carrying value. Accordingly, Sony conducted the goodwill impairment tests using this new profitability projection and recalculated the implied fair value of the goodwill of the reporting unit. As a result of this recalculation, the carrying value of the goodwill was determined to be zero.

Consequently, the entire amount of the goodwill in the Production & Distribution reporting unit, 112,069 million yen, was impaired, in the fiscal year ended March 31, 2017. The impairment loss was included in other operating expense, net in the consolidated statements of income, and was recorded entirely within the Pictures segment.