Pension and severance plans (Tables)

12 Months Ended

Mar. 31, 2019

Components of Net Periodic Benefit Costs

The components of net periodic benefit costs for the fiscal years ended March 31, 2017, 2018 and 2019 were as follows:

Japanese plans:


	Yen in millions
	Fiscal year ended March 31
	2017			2018			2019
Service cost		26,811			25,185			23,128
Interest cost		5,912			8,024			7,020
Expected return on plan assets		(17,829	)		(16,440	)		(16,695	)
Recognized actuarial loss		20,436			16,099			15,365
Amortization of prior service costs		(9,490	)		(8,693	)		(7,864	)

Net periodic benefit costs		25,840			24,175			20,954

Foreign plans:


	Yen in millions
	Fiscal year ended March 31
	2017			2018			2019
Service cost		2,958			3,181			2,780
Interest cost		10,426			10,393			10,083
Expected return on plan assets		(11,000	)		(11,687	)		(11,797	)
Amortization of net transition asset		9			5			—
Recognized actuarial loss		2,552			3,014			2,656
Amortization of prior service costs		(463	)		(574	)		(269	)
Losses on curtailments and settlements		43			1,058			1,804

Net periodic benefit costs		4,525			5,390			5,257

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
	2018			2019			2018			2019
Change in benefit obligation:
Benefit obligation at beginning of the fiscal year		1,004,676			1,010,574			352,442			356,397
Service cost		25,185			23,128			3,181			2,780
Interest cost		8,024			7,020			10,393			10,083
Plan participants’ contributions		—			—			573			462
Actuarial loss		21,920			29,295			663			1,700
Foreign currency exchange rate changes		—			—			8,858			(1,554	)
Curtailments and settlements		—			—			(5,422	)		(6,120	)
Effect of changes in consolidated subsidiaries		—			—			—			1,947
Other		(8	)		6			—			—
Benefits paid		(49,223	)		(35,069	)		(14,291	)		(13,777	)

Benefit obligation at end of the fiscal year		1,010,574			1,034,954			356,397			351,918

Change in plan assets:
Fair value of plan assets at beginning of the fiscal year		699,008			711,077			259,177			269,745
Actual return on plan assets		38,896			18,701			13,426			15,243
Foreign currency exchange rate changes		—			—			6,181			(838	)
Employer contribution		6,090			36,875			9,040			8,542
Plan participants’ contributions		—			—			573			462
Curtailments and settlements		—			—			(5,285	)		(5,960	)
Benefits paid		(32,917	)		(24,449	)		(13,367	)		(12,445	)

Fair value of plan assets at end of the fiscal year		711,077			742,204			269,745			274,749

Funded status at end of the fiscal year		(299,497	)		(292,750	)		(86,652	)		(77,169	)

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
	2018			2019			2018			2019
Noncurrent assets		3,426			3,476			8,396			14,745
Current liabilities		—			—			(4,121	)		(4,412	)
Noncurrent liabilities		(302,923	)		(296,226	)		(90,927	)		(87,502	)

Ending balance		(299,497	)		(292,750	)		(86,652	)		(77,169	)

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
	2018			2019			2018			2019
Prior service cost (credit)		(16,723	)		(8,859	)		(488	)		(45	)
Net actuarial loss		299,852			311,128			73,404			71,906

Ending balance		283,129			302,269			72,916			71,861

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

2018

2019

2018

2019

Accumulated benefit obligations

1,005,557

1,029,910

340,353

336,185

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
	2018		2019		2018		2019
Projected benefit obligations		998,629		1,022,235		301,046		200,596
Accumulated benefit obligations		993,612		1,017,191		293,834		196,928
Fair value of plan assets		695,706		726,009		215,510		123,937

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, 2018 and 2019 were as follows:


	Japanese plans						Foreign plans
	March 31						March 31
	2018			2019			2018			2019
Discount rate		0.8	%		0.6	%		2.9	%		2.8	%
Rate of compensation increase		*			*			2.6			2.3

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, 2017, 2018 and 2019 were as follows:


	Japanese plans									Foreign plans
	Fiscal year ended March 31									Fiscal year ended March 31
	2017			2018			2019			2017			2018			2019
Discount rate		0.6	%		0.9	%		0.8	%		3.2	%		3.1	%		2.9	%
Expected return on plan assets		2.7			2.4			2.6			4.8			4.6			4.4
Rate of compensation increase		*			*			*			2.8			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.

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, 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


	Japanese plans
	Yen in millions
	Fair value at March 31, 2019		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2019		Level 1		Level 2		Level 3
Cash and cash equivalents		10,689		10,689		—		—
Equity:								—
Equity securities^*1		140,559		135,713		4,846		—
Fixed income:								—
Government bonds^*2		210,817		—		210,817		—
Corporate bonds^*3		97,519		—		97,519		—
Asset-backed securities^*4		1,537		—		1,537		—
Commingled funds^*5		138,455		—		138,455		—
Commodity funds^*6		21,674		—		21,674		—
Private equity^*7		27,956		—		—		27,956
Hedge funds^*8		71,606		—		—		71,606
Real estate and other^*9		21,392		—		—		21,392

Total		742,204		146,402		474,848		120,954

Includes approximately 52 percent and 51 percent of Japanese equity securities, and 48 percent and 49 percent of foreign equity securities for the fiscal years ended March 31, 2018 and 2019, respectively.

Includes approximately 49 percent and 48 percent of debt securities issued by Japanese national and local governments, and 51 percent and 52 percent of debt securities issued by foreign national and local governments for the fiscal years ended March 31, 2018 and 2019, respectively.

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

Includes primarily mortgage-backed securities.

Commingled funds represent pooled institutional investments, including primarily investment trusts. They include approximately 51 percent and 50 percent of investments in equity, 48 percent and 49 percent of investments in fixed income, and 1 percent and 1 percent of investments in other for the fiscal years ended March 31, 2018 and 2019, respectively.

Represents commodity futures funds.

Includes multiple private equity funds of funds that primarily invest in venture, buyout, and distressed markets in the United States and Europe.

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.

Includes primarily private real estate investment trusts.


	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


	Foreign plans
	Yen in millions
	Fair value at March 31, 2019		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2019		Level 1		Level 2		Level 3
Cash and cash equivalents		4,340		4,340		—		—
Equity:
Equity securities^*1		23,766		23,113		653		—
Fixed income:
Government bonds^*2		84,761		—		84,761		—
Corporate bonds^*3		32,749		—		32,749		—
Asset-backed securities		1,115		—		1,115		—
Insurance contracts^*4		18,308		—		5,814		12,494
Commingled funds^*5		76,503		—		76,503		—
Real estate and other^*6		33,207		—		11,118		22,089

Total		274,749		27,453		212,713		34,583

Includes primarily foreign equity securities.

Includes primarily foreign government debt securities.

Includes primarily foreign corporate debt securities.

Represents annuity contracts with or without profit sharing.

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.

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, 2018 and 2019:


	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, 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

Return on assets held at end of year		4,428			659		1,622		6,709
Purchases, sales, and settlements, net		(616	)		743		339		466

Ending balance at March 31, 2019		27,956			71,606		21,392		120,954


	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, 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

Return on assets held at end of year		736			—			559			1,295
Purchases, sales, and settlements, net		(389	)		—			(3,809	)		(4,198	)
Transfers, net		—			(5,540	)		123			(5,417	)
Other^*		(582	)		237			(760	)		(1,105	)

Ending balance at March 31, 2019		12,494			—			22,089			34,583

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
2020		41,345		17,972
2021		40,700		17,892
2022		42,487		18,138
2023		43,740		18,896
2024		46,345		19,441
2025 — 2029		238,416		107,668

Total Defined Contribution Expenses

Total defined contribution expenses for the fiscal years ended March 31, 2017, 2018 and 2019 were as follows:


	Yen in millions
	Fiscal year ended March 31
	2017		2018		2019
Japanese plans		3,412		3,237		3,353
Foreign plans		10,458		11,379		11,602