Pension and severance plans (Tables)

12 Months Ended

Mar. 31, 2018

Components of Net Periodic Benefit Costs

The components of net periodic benefit costs for the fiscal years ended March 31, 2016, 2017 and 2018 were as follows:

Japanese plans:


	Yen in millions
	Fiscal year ended March 31
	2016			2017			2018
Service cost		24,670			26,811			25,185
Interest cost		8,689			5,912			8,024
Expected return on plan assets		(20,853	)		(17,829	)		(16,440	)
Recognized actuarial loss		8,588			20,436			16,099
Amortization of prior service costs		(9,489	)		(9,490	)		(8,693	)

Net periodic benefit costs		11,605			25,840			24,175

Foreign plans:


	Yen in millions
	Fiscal year ended March 31
	2016			2017			2018
Service cost		3,504			2,958			3,181
Interest cost		12,096			10,426			10,393
Expected return on plan assets		(14,117	)		(11,000	)		(11,687	)
Amortization of net transition asset		10			9			5
Recognized actuarial loss		4,236			2,552			3,014
Amortization of prior service costs		(478	)		(463	)		(574	)
Losses on curtailments and settlements		354			43			1,058

Net periodic benefit costs		5,605			4,525			5,390

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
	2017			2018			2017			2018
Change in benefit obligation:
Benefit obligation at beginning of the fiscal year		1,034,284			1,004,676			356,875			352,442
Service cost		26,811			25,185			2,958			3,181
Interest cost		5,912			8,024			10,426			10,393
Plan participants’ contributions		—			—			490			573
Actuarial (gain) loss		(33,333	)		21,920			20,045			663
Foreign currency exchange rate changes		—			—			(23,183	)		8,858
Curtailments and settlements		—			—			(1,507	)		(5,422	)
Other		(5	)		(8	)		—			—
Benefits paid		(28,993	)		(49,223	)		(13,662	)		(14,291	)

Benefit obligation at end of the fiscal year		1,004,676			1,010,574			352,442			356,397

Change in plan assets:
Fair value of plan assets at beginning of the fiscal year		679,432			699,008			256,341			259,177
Actual return on plan assets		35,508			38,896			29,346			13,426
Foreign currency exchange rate changes		—			—			(20,004	)		6,181
Employer contribution		6,640			6,090			6,738			9,040
Plan participants’ contributions		—			—			490			573
Curtailments and settlements		—			—			(1,161	)		(5,285	)
Benefits paid		(22,572	)		(32,917	)		(12,573	)		(13,367	)

Fair value of plan assets at end of the fiscal year		699,008			711,077			259,177			269,745

Funded status at end of the fiscal year		(305,668	)		(299,497	)		(93,265	)		(86,652	)

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
	2017			2018			2017			2018
Noncurrent assets		2,753			3,426			6,251			8,396
Current liabilities		—			—			(3,114	)		(4,121	)
Noncurrent liabilities		(308,421	)		(302,923	)		(96,402	)		(90,927	)

Ending balance		(305,668	)		(299,497	)		(93,265	)		(86,652	)

Amounts Recognized in Accumulated Other Comprehensive Income, Excluding Tax Effect

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
	2017			2018			2017			2018
Prior service cost (credit)		(25,415	)		(16,723	)		(1,034	)		(488	)
Net actuarial loss		317,397			299,852			78,548			73,404
Obligation existing at transition		—			—			(3	)		0

Ending balance		291,982			283,129			77,511			72,916

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

2017

2018

2017

2018

Accumulated benefit obligations

998,501

1,005,557

329,989

340,353

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
	2017		2018		2017		2018
Projected benefit obligations		992,052		998,629		291,413		301,046
Accumulated benefit obligations		987,428		993,612		287,491		293,834
Fair value of plan assets		685,183		695,706		207,406		215,510

Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Costs

Weighted-average assumptions used to determine benefit obligations as of March 31, 2017 and 2018 were as follows:


	Japanese plans						Foreign plans
	March 31						March 31
	2017			2018			2017			2018
Discount rate		0.9	%		0.8	%		3.1	%		2.9	%
Rate of compensation increase		*			*			2.4			2.6

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

Weighted-average assumptions used to determine the net periodic benefit costs for the fiscal years ended March 31, 2016, 2017 and 2018 were as follows:


	Japanese plans									Foreign plans
	Fiscal year ended March 31									Fiscal year ended March 31
	2016			2017			2018			2016			2017			2018
Discount rate		1.0	%		0.6	%		0.9	%		3.1	%		3.2	%		3.1	%
Expected return on plan assets		3.0			2.7			2.4			4.8			4.8			4.6
Rate of compensation increase		*			*			*			2.9			2.8			2.4

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

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, 2017		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2017		Level 1		Level 2		Level 3
Cash and cash equivalents		7,976		7,976		—		—
Equity:
Equity securities^*1		157,012		152,852		4,160		—
Fixed income:
Government bonds^*2		206,632		—		206,632		—
Corporate bonds^*3		75,971		—		75,971		—
Asset-backed securities^*4		1,105		—		1,105		—
Commingled funds^*5		122,264		—		122,264		—
Commodity funds^*6		21,098		—		21,098		—
Private equity^*7		21,790		—		—		21,790
Hedge funds^*8		67,235		—		—		67,235
Real estate and other^*9		17,925		—		—		17,925

Total		699,008		160,828		431,230		106,950


	Japanese plans
	Yen in millions
	Fair value at March 31, 2018		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2018		Level 1		Level 2		Level 3
Cash and cash equivalents		9,446		9,446		—		—
Equity:
Equity securities^*1		138,443		134,091		4,352		—
Fixed income:
Government bonds^*2		225,879		—		225,879		—
Corporate bonds^*3		79,323		—		79,323		—
Asset-backed securities^*4		121		—		121		—
Commingled funds^*5		122,950		—		122,950		—
Commodity funds^*6		21,136		—		21,136		—
Private equity^*7		24,144		—		—		24,144
Hedge funds^*8		70,204		—		—		70,204
Real estate and other^*9		19,431		—		—		19,431

Total		711,077		143,537		453,761		113,779

*1	Includes approximately 48 percent and 52 percent of Japanese equity securities, and 52 percent and 48 percent of foreign equity securities for the fiscal years ended March 31, 2017 and 2018, respectively.

*2	Includes approximately 46 percent and 49 percent of debt securities issued by Japanese national and local governments, and 54 percent and 51 percent of debt securities issued by foreign national and local governments for the fiscal years ended March 31, 2017 and 2018, 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 51 percent of investments in equity, 51 percent and 48 percent of investments in fixed income, and 1 percent and 1 percent of investments in other for the fiscal years ended March 31, 2017 and 2018, 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.

*9	Includes primarily private real estate investment trusts.


	Foreign plans
	Yen in millions
	Fair value at March 31, 2017		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2017		Level 1		Level 2		Level 3
Cash and cash equivalents		8,091		8,091		—		—
Equity:
Equity securities^*1		33,103		31,783		1,320		—
Fixed income:
Government bonds^*2		65,671		—		65,671		—
Corporate bonds^*3		28,296		—		21,370		6,926
Asset-backed securities		982		—		982		—
Insurance contracts^*4		5,135		—		5,135		—
Commingled funds^*5		81,683		—		81,683		—
Real estate and other^*6		36,216		—		13,287		22,929

Total		259,177		39,874		189,448		29,855


	Foreign plans
	Yen in millions
	Fair value at March 31, 2018		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2018		Level 1		Level 2		Level 3
Cash and cash equivalents		2,377		2,377		—		—
Equity:
Equity securities^*1		30,916		29,814		1,102		—
Fixed income:
Government bonds^*2		78,129		—		78,129		—
Corporate bonds^*3		26,424		—		21,121		5,303
Asset-backed securities		960		—		960		—
Insurance contracts^*4		18,670		—		5,941		12,729
Commingled funds^*5		75,785		—		75,785		—
Real estate and other^*6		36,484		—		10,508		25,976

Total		269,745		32,191		193,546		44,008

*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, 2017 and 2018:


	Japanese plans
	Yen in millions
	Fair value measurement using significant unobservable inputs (Level 3)
	Private equity			Hedge funds		Real estate and other		Total
Beginning balance at April 1, 2016		31,852			60,395		7,315		99,562
Return on assets held at end of year		425			2,817		599		3,841
Purchases, sales, and settlements, net		(10,487	)		4,023		10,011		3,547

Ending balance at March 31, 2017		21,790			67,235		17,925		106,950

Return on assets held at end of year		1,483			636		425		2,544
Purchases, sales, and settlements, net		871			2,333		1,081		4,285

Ending balance at March 31, 2018		24,144			70,204		19,431		113,779


	Foreign plans
	Yen in millions
	Fair value measurement using significant unobservable inputs (Level 3)
	Insurance contracts		Corporate bonds			Real estate and other			Total
Beginning balance at April 1, 2016		—		7,000			24,124			31,124
Return on assets held at end of year		—		—			84			84
Purchases, sales, and settlements, net		—		(44	)		(367	)		(411	)
Transfers, net		—		—			(8	)		(8	)
Other*		—		(30	)		(904	)		(934	)

Ending balance at March 31, 2017		—		6,926			22,929			29,855

Return on assets held at end of year		—		—			1,101			1,101
Purchases, sales, and settlements, net		12,651		(1,256	)		12			11,407
Transfers, net		—		—			1,181			1,181
Other*		78		(367	)		753			464

Ending balance at March 31, 2018		12,729		5,303			25,976			44,008

*	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
2019		39,918		14,889
2020		40,328		15,039
2021		41,233		16,133
2022		42,609		16,689
2023		43,772		17,830
2024 — 2028		232,325		102,045

Total Defined Contribution Expenses

Total defined contribution expenses for the fiscal years ended March 31, 2016, 2017 and 2018 were as follows:


	Yen in millions
	Fiscal year ended March 31
	2016		2017		2018
Japanese plans		3,155		3,412		3,237
Foreign plans		12,419		10,458		11,379