28.

Business segment information

The reportable segments presented below are the segments of Sony for which separate financial information is available and for which operating profit or loss amounts are evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The CODM does not evaluate segments using discrete asset information. Sony’s CODM is its Chief Executive Officer and President.

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 sales and operating revenue and operating income (loss) of each segment for the comparable period have been reclassified to conform to the current presentation.

The G&NS segment includes network services businesses, the manufacture and sales of home gaming products and production and sales of software. The Music segment includes Recorded Music, Music Publishing and Visual Media and Platform businesses. The Pictures segment includes Motion Pictures, Television Productions and Media Networks businesses. The HE&S segment includes Televisions as well as Audio and Video businesses. The IP&S segment includes the Still and Video Cameras business. The MC segment includes the manufacture and sales of mobile phones and an internet-related service business. The Semiconductors segment includes the image sensors business. The Financial Services segment primarily represents individual life insurance and non-life insurance businesses in the Japanese market and the banking business in Japan. All Other consists of various operating activities, including the overseas disc manufacturing, recording media and battery businesses. Sony’s products and services are generally unique to a single operating segment.

Segment sales and operating revenue:


	Yen in millions
	Fiscal year ended March 31
	2016			2017			2018
Sales and operating revenue:
Game & Network Services —
Customers		1,479,775			1,581,568			1,848,298
Intersegment		72,118			68,231			95,514

Total		1,551,893			1,649,799			1,943,812
Music —
Customers		602,564			630,767			784,792
Intersegment		16,675			16,891			15,203

Total		619,239			647,658			799,995
Pictures —
Customers		935,827			901,230			1,010,173
Intersegment		2,315			1,899			894

Total		938,142			903,129			1,011,067
Home Entertainment & Sound —
Customers		1,155,085			1,034,215			1,221,734
Intersegment		3,957			4,789			999

Total		1,159,042			1,039,004			1,222,733
Imaging Products & Solutions —
Customers		677,231			571,499			647,163
Intersegment		6,724			8,134			8,729

Total		683,955			579,633			655,892
Mobile Communications —
Customers		1,121,925			752,688			713,916
Intersegment		5,548			6,457			9,826

Total		1,127,473			759,145			723,742
Semiconductors —
Customers		599,430			659,779			726,892
Intersegment		139,629			113,344			123,118

Total		739,059			773,123			850,010
Financial Services —
Customers		1,066,319			1,080,284			1,221,235
Intersegment		6,750			7,220			7,142

Total		1,073,069			1,087,504			1,228,377
All Other —
Customers		435,668			375,116			351,527
Intersegment		104,526			75,334			55,647

Total		540,194			450,450			407,174
Corporate and elimination		(326,354	)		(286,195	)		(298,820	)

Consolidated total		8,105,712			7,603,250			8,543,982

G&NS intersegment amounts primarily consist of transactions with All Other. Semiconductors intersegment amounts primarily consist of transactions with the MC segment, the G&NS segment and the IP&S segment. All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment. Corporate and elimination includes certain brand and patent royalty income.

Segment profit or loss:


	Yen in millions
	Fiscal year ended March 31
	2016			2017			2018
Operating income (loss):
Game & Network Services		88,668			135,553			177,478
Music		86,509			75,798			127,786
Pictures		38,507			(80,521	)		41,110
Home Entertainment & Sound		50,558			58,504			85,841
Imaging Products & Solutions		69,320			47,257			74,924
Mobile Communications		(61,435	)		10,164			(27,636	)
Semiconductors		14,500			(7,811	)		164,023
Financial Services		156,543			166,424			178,947
All Other		(41,252	)		(29,585	)		(23,530	)

Total		401,918			375,783			798,943
Corporate and elimination		(107,721	)		(87,081	)		(64,083	)

Consolidated operating income		294,197			288,702			734,860
Other income		66,849			14,418			23,728
Other expenses		(56,542	)		(51,501	)		(59,539	)

Consolidated income before income taxes		304,504			251,619			699,049

Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.

Corporate and elimination includes headquarters restructuring costs and certain other corporate expenses, including the amortization of certain intellectual property assets such as the cross-licensing of intangible assets acquired from Ericsson at the time of the Sony Mobile Communications acquisition, which are not allocated to segments.

Pursuant to a separation of Sony’s businesses into distinct subsidiaries and a realignment of corporate functions, changes have been made to the method of calculating the amount of pension and severance-related expenses allocated to Sony’s headquarters and each business segment. As a result of these changes, an increase in corporate costs totaling 7.5 billion yen is included in Corporate and elimination for the fiscal year ended March 31, 2018. Conversely, a decrease in expenses totaling the same amount is included in each business segment, mainly in the Semiconductors (3.2 billion yen) and IP&S (2.0 billion yen) segments. These changes have no impact on consolidated operating income.

Other significant items:


	Yen in millions
	Fiscal year ended March 31
	2016			2017			2018
Equity in net income (loss) of affiliated companies:
Game & Network Services		—			—			—
Music		3,801			5,435			4,483
Pictures		(981	)		(35	)		(129	)
Home Entertainment & Sound		—			—			—
Imaging Products & Solutions		—			—			—
Mobile Communications		(186	)		(79	)		(102	)
Semiconductors		—			—			—
Financial Services		(645	)		(3,601	)		(61	)
All Other		249			1,843			4,378

Consolidated total		2,238			3,563			8,569

Depreciation and amortization:
Game & Network Services		20,798			25,486			29,091
Music		17,795			16,124			18,230
Pictures		22,375			20,487			24,458
Home Entertainment & Sound		21,781			19,830			21,136
Imaging Products & Solutions		27,612			25,442			23,928
Mobile Communications		24,186			19,794			19,215
Semiconductors		100,964			102,328			99,258
Financial Services, including deferred insurance acquisition costs		102,270			47,056			79,843
All Other		17,767			7,407			5,910

Total		355,548			283,954			321,069
Corporate		41,543			43,094			40,375

Consolidated total		397,091			327,048			361,444

The following table includes a breakdown of sales and operating revenue to external customers by product category for certain segments. Sony management views each segment as a single operating segment.


	Yen in millions
	Fiscal year ended March 31
	2016		2017		2018
Sales and operating revenue:
Game & Network Services
Network		529,318		714,924		1,033,192
Hardware and Others		950,457		866,644		815,106

Total		1,479,775		1,581,568		1,848,298
Music
Recorded Music		412,718		388,948		446,960
Music Publishing		71,258		66,541		74,360
Visual Media and Platform		118,588		175,278		263,472

Total		602,564		630,767		784,792
Pictures
Motion Pictures		447,355		409,363		448,945
Television Productions		270,115		271,886		289,024
Media Networks		218,357		219,981		272,204

Total		935,827		901,230		1,010,173
Home Entertainment & Sound
Televisions		797,764		720,557		861,763
Audio and Video		354,946		311,771		357,194
Other		2,375		1,887		2,777

Total		1,155,085		1,034,215		1,221,734
Imaging Products & Solutions
Still and Video Cameras		428,777		351,834		415,318
Other		248,454		219,665		231,845

Total		677,231		571,499		647,163
Mobile Communications		1,121,925		752,688		713,916
Semiconductors		599,430		659,779		726,892
Financial Services		1,066,319		1,080,284		1,221,235
All Other		435,668		375,116		351,527
Corporate		31,888		16,104		18,252

Consolidated total		8,105,712		7,603,250		8,543,982

In the G&NS segment, Network includes network services relating to game, video and music content provided by Sony Interactive Entertainment; Hardware and Others includes home and portable game consoles, packaged software and peripheral devices. In the Music segment, Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles, including game applications based on the animation titles, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of motion pictures and direct-to-video content; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks worldwide. In the HE&S segment, Televisions includes LCD and OLED televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones and memory-based portable audio devices. In the IP&S segment, Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Other includes display products such as projectors and medical equipment.

Geographic Information:

Sales and operating revenue attributed to countries and areas based on location of external customers for the fiscal years ended March 31, 2016, 2017 and 2018 and property, plant and equipment, net as of March 31, 2017 and 2018 are as follows:


	Yen in millions
	Fiscal year ended March 31
	2016		2017		2018
Sales and operating revenue:
Japan		2,317,312		2,392,790		2,625,619
United States		1,733,759		1,673,768		1,835,705
Europe		1,881,329		1,634,683		1,841,457
China		540,497		557,995		674,718
Asia-Pacific		959,171		866,712		1,024,179
Other Areas		673,644		477,302		542,304

Total		8,105,712		7,603,250		8,543,982


	Yen in millions
	March 31
	2017		2018
Property, plant and equipment, net:
Japan		580,453		563,593
United States		101,167		97,979
Europe		24,273		23,302
China		13,466		11,232
Asia-Pacific		34,575		36,738
Other Areas		4,265		6,626

Total		758,199		739,470

Major countries and areas in each geographic segment excluding Japan, United States and China are as follows:


(1) Europe:		United Kingdom, France, Germany, Russia, Spain and Sweden
(2) Asia-Pacific:		India, South Korea, Oceania, Thailand and Malaysia
(3) Other Areas:		The Middle East/Africa, Brazil, Mexico and Canada

There are no individually material countries with respect to sales and operating revenue or property, plant and equipment, net included in Europe, Asia-Pacific and Other Areas.

Transfers between reportable business segments or geographic areas are made at individually negotiated prices that are intended to reflect a market-based transfer price.

There were no sales and operating revenue with any single major external customer for the fiscal years ended March 31, 2016, 2017 and 2018.