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Marketable securities and securities investments
 12 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Marketable securities and securities investments
7.
Marketable securities and securities investments
Marketable securities and securities investments, primarily held in the Financial Services segment, include debt securities for which the aggregate cost, gross unrealized gains and losses and fair value pertaining to
available-for-sale
securities and
held-to-maturity
securities are as follow
s
.
                                                                 
 
Yen in millions
 
 
March 31, 2019
 
 
March 31, 2020
 
 
Cost
 
 
Gross
unrealized
gains
 
 
Gross
unrealized
losses
 
 
Fair value
 
 
Cost
 
 
Gross
unrealized
gains
 
 
Gross
unrealized
losses
 
 
Fair value
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japanese national government bonds
 
 
1,422,620
 
 
 
220,989
 
 
 
(20
)
 
 
1,643,589
 
 
 
1,552,036
 
 
 
210,459
 
 
 
(566
)
 
 
1,761,929
 
Japanese local government bonds
 
 
67,461
 
 
 
70
 
 
 
(34
)
 
 
67,497
 
 
 
69,132
 
 
 
73
 
 
 
(33
)
 
 
69,172
 
Japanese corporate bonds
 
 
202,433
 
 
 
17,178
 
 
 
(223
)
 
 
219,388
 
 
 
202,164
 
 
 
19,112
 
 
 
(567
)
 
 
220,709
 
Foreign government bonds
 
 
153,429
 
 
 
8,669
 
 
 
(603
)
 
 
161,495
 
 
 
198,777
 
 
 
81,014
 
 
 
(14
)
 
 
279,777
 
Foreign corporate bonds
 
 
360,299
 
 
 
944
 
 
 
(376
)
 
 
360,867
 
 
 
361,422
 
 
 
507
 
 
 
(2,179
)
 
 
359,750
 
Securitized products
 
 
190,111
 
 
 
1
 
 
 
—
 
 
 
190,112
 
 
 
205,223
 
 
 
0
 
 
 
—
 
 
 
205,223
 
Other
 
 
2,286
 
 
 
2,402
 
 
 
—
 
 
 
4,688
 
 
 
14,398
 
 
 
1,867
 
 
 
(12
)
 
 
16,253
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,398,639
 
 
 
250,253
 
 
 
(1,256
)
 
 
2,647,636
 
 
 
2,603,152
 
 
 
313,032
 
 
 
(3,371
)
 
 
2,912,813
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity
securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japanese national government bonds
 
 
6,042,635
 
 
 
2,016,786
 
 
 
—
 
 
 
8,059,421
 
 
 
6,204,505
 
 
 
2,098,885
 
 
 
(1,397
)
 
 
8,301,993
 
Japanese local government bonds
 
 
3,518
 
 
 
388
 
 
 
—
 
 
 
3,906
 
 
 
2,504
 
 
 
331
 
 
 
—
 
 
 
2,835
 
Japanese corporate bonds
 
 
409,329
 
 
 
44,348
 
 
 
(5,845
)
 
 
447,832
 
 
 
482,050
 
 
 
61,176
 
 
 
(4,754
)
 
 
538,472
 
Foreign government bonds
 
 
386,392
 
 
 
18,609
 
 
 
(13,742
)
 
 
391,259
 
 
 
723,937
 
 
 
302,297
 
 
 
—
 
 
 
1,026,234
 
Foreign corporate bonds
 
 
198
 
 
 
11
 
 
 
—
 
 
 
209
 
 
 
98
 
 
 
7
 
 
 
—
 
 
 
105
 
Securitized products
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
5,418
 
 
 
—
 
 
 
(421
)
 
 
4,997
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,842,072
 
 
 
2,080,142
 
 
 
(19,587
)
 
 
8,902,627
 
 
 
7,418,512
 
 
 
2,462,696
 
 
 
(6,572
)
 
 
9,874,636
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
9,240,711
 
 
 
2,330,395
 
 
 
(20,843
)
 
 
11,550,263
 
 
 
10,021,664
 
 
 
2,775,728
 
 
 
(9,943
)
 
 
12,787,449
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents the cost and fair value of debt securities classified as
available-for-sale
securities and
held-to-maturity
securities by contractual maturity:
                                 
 
Yen in millions
 
 
March 31, 2020
 
 
Available-for-sale
securities
   
Held-to-maturity
securities
 
 
Cost
 
  
Fair value
 
  
Cost
 
  
Fair value
 
Due in one year or less
   
145,867
     
146,084
     
6,075
     
6,109
 
Due after one year through five years
   
432,281
     
435,443
     
199,509
     
217,983
 
Due after five years through ten years
   
561,098
     
637,363
     
246,072
     
283,086
 
Due after ten years
   
1,463,906
     
1,693,923
     
6,966,856
     
9,367,458
 
   
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
2,603,152
     
2,912,813
     
7,418,512
     
9,874,636
 
                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sales of
available-for-sale
securities were 39,982 million yen, 66,906 million yen and 84,362 million yen for the fiscal years ended March 31, 2018, 2019 and 2020, respectively. On these sales, gross realized gains were 1,257 million yen, 240 million yen and 354 million yen and gross realized losses were 2 million yen, 475 million yen and 128 million yen, respectively, for the fiscal years ended March 31, 2018, 2019 and 2020. Sony adopted ASU
2016-01
from April 1, 2018, and as a result, the
available-for-sale
classification is eliminated for equity securities for the fiscal year
s
ended March 31, 2019 and 2020.
Marketable securities classified as trading securities, which are held primarily in the Financial Services segment, totaled 234,117 million yen and 270,120 million yen as of March 31, 2019 and 2020, respectively. Sony recorded net unrealized gains of 48,047 million yen, net unrealized gains of 3,610 million yen, and net
unrealized gains of 1,705 million yen for the fiscal years ended March 31 2018, 2019 and 2020, respectively. Changes in the fair value of trading securities are primarily recognized in financial services revenue in the consolidated statements of income. Sony adopted ASU 2016-01 from April 1, 2018, and as a result, the trading classification is eliminated for equity securities for the fiscal years ended March 31, 2019 and 2020.
The following tables present the gross unrealized losses on, and fair value of, Sony’s investment securities with unrealized losses, aggregated by investment category and the length of time that individual investment securities have been in a continuous unrealized loss position, at March 31, 2019 and 2020.
                                                 
 
Yen in millions
 
 
March 31, 2019
 
 
Less than 12 months
   
12 months or more
   
Total
 
 
Fair
value
 
  
Unrealized
losses
 
  
Fair
value
 
  
Unrealized
losses
 
  
Fair
value
 
  
Unrealized
losses
 
Debt securities:
   
     
     
     
     
     
 
Available-for-sale securities:
   
     
     
     
     
     
 
Japanese national government bonds
   
—
     
—
     
4,063
     
(20
 )    
4,063
     
(20
 )
Japanese local government bonds
   
27,404
     
(29
 )    
4,872
     
(5
 )    
32,276
     
(34
 )
Japanese corporate bonds
   
25,725
     
(21
 )    
19,925
     
(202
 )    
45,650
     
(223
 )
Foreign government bonds
   
—
     
—
     
15,878
     
(603
 )    
15,878
     
(603
 )
Foreign corporate bonds
   
50,281
     
(117
 )    
15,455
     
(259
 )    
65,736
     
(376
 )
Securitized products
   
—
     
—
     
—
     
—
     
—
     
—
 
Other
   
—
     
—
     
—
     
—
     
—
     
—
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
   
103,410
     
(167
 )    
60,193
     
(1,089
 )    
163,603
     
(1,256
 )
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Held-to-maturity
securities:
    
     
     
     
     
     
 
Japanese national government bonds
   
—
     
—
     
—
     
—
     
—
     
—
 
Japanese local government bonds
   
—
     
—
     
—
     
—
     
—
     
—
 
Japanese corporate bonds
   
—
     
—
     
97,984
     
(5,845
 )    
97,984
     
(5,845
 )
Foreign government bonds
   
—
     
—
     
151,229
     
(13,742
 )    
151,229
     
(13,742
 )
Foreign corporate bonds
   
—
     
—
     
—
     
—
     
—
     
—
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
   
—
     
—
     
249,213
     
(19,587
 )    
249,213
     
(19,587
 )
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
103,410
     
(167
 )    
309,406
     
(20,676
 )    
412,816
     
(20,843
 )
                                                 
 
 
 
 
 
                                                 
 
Yen in millions
 
 
March 31, 2020
 
 
Less than 12 months
   
12 months or more
   
Total
 
 
Fair
value
 
  
Unrealized
losses
 
  
Fair
value
 
  
Unrealized
losses
 
  
Fair
value
 
  
Unrealized
losses
 
Debt securities:
   
     
     
     
     
     
 
Available-for-sale securities:
   
     
     
     
     
     
 
Japanese national government bonds
   
51,746
     
(539
 )    
2,032
     
(27
 )    
53,778
     
(566
 )
Japanese local government bonds
   
25,010
     
(10
 )    
16,340
     
(23
 )    
41,350
     
(33
 )
Japanese corporate bonds
   
62,118
     
(548
 )    
10,694
     
(19
 )    
72,812
     
(567
 )
Foreign government bonds
   
—
     
—
     
1,537
     
(14
 )    
1,537
     
(14
 )
Foreign corporate bonds
   
86,220
     
(2,133
 )    
18,896
     
(46
 )    
105,116
     
(2,179
 )
Securitized products
   
—
     
—
     
—
     
—
     
—
     
—
 
Other
   
12,055
 
 
 
(12
)
 
 
—
 
 
 
—
 
 
 
12,055
      
(12
)
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
   
237,149
     
(3,242
 )    
49,499
     
(129
 )    
286,648
     
(3,371
 )
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Held-to-maturity
securities:
    
     
     
     
     
     
 
Japanese national government bonds
   
134,320
     
(1,397
 )    
—
     
—
     
134,320
     
(1,397
 )
Japanese local government bonds
   
—
     
—
     
—
     
—
     
—
     
—
 
Japanese corporate bonds
   
98,172
     
(4,285
 )    
3,727
     
(469
 )    
101,899
     
(4,754
 )
Foreign government bonds
   
—
     
—
     
—
     
—
     
—
     
—
 
Foreign corporate bonds
   
—
     
—
     
—
     
—
     
—
     
—
 
Securitized products
   
5,418
      
(421
 )    
—
      
—
      
5,418
      
(421
 )
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
   
237,910
     
(6,103
 )    
3,727
     
(469
 )    
241,637
     
(6,572
 )
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
475,059
     
(9,345
 )    
53,226
     
(598
 )    
528,285
     
(9,943
 )
                                                 
 
 
 
 
 
At March 31, 2020, Sony determined that the decline in value for securities with unrealized losses shown in the above table is not other-than-temporary in nature.
For the
fiscal
 
years
ended March 31, 2019 and 2020, with respect to equity securities included in marketable securities and securities investments, Sony recorded net realized gains of 77,495 million yen and 20,176 million yen due to the sale of equity securities and net unrealized gains of 104,168 million yen and net
 
unrealized
loss of 134,831 million yen due to revaluation of equity securities held as of March 31, 2019 and 2020, respectively. Gains or losses arising from equity securities held in the Financial Services segment are recorded in financial services revenue, and gains or losses arising from equity securities held in all segments other than the Financial Services segment are recorded in gain
 (loss)
on equity securities, net in the consolidated statement of income. Included in the
gains and (losses)
noted above were
gains and (losses)
recorded by Sony with respect to the equity securities held by Sony in Spotify Technology S.A. (“Spotify”).
On April 3, 2018, Spotify was publicly listed for trading on the New York Stock Exchange. Sony owned 5.707% of Spotify’s shares at the time of the public listing.
During the fiscal year ended March 31, 2019, Sony sold a portion of the Spotify shares that it owned for aggregate consideration of 82,616 million yen (768 million U.S. dollars) in cash proceeds. The sale of such shares, offset by costs to be paid to Sony’s artists and distributed labels and other transaction costs which directly related to the gains recognized from the sale of Spotify shares, resulted in a net
pre-tax
realized gain of 54,179 million yen (504 million U.S. dollars) recorded in gain on equity securities, net in the consolidated statement of income. The payments to Sony’s artists and distributed labels are included within Other in the cash flows from investing activities of the consolidated statement of cash flows.
The remaining Spotify shares retained as of March 31, 2019 had a gross fair value of 78,947 million yen (711 million U.S. dollars), and the revaluation of such shares resulted in a
pre-tax
unrealized gain, net of costs to be paid to Sony’s artists and distributed labels and other costs which directly related to the gains recognized from the revaluation of Spotify shares, of 47,543 million yen (449 million U.S. dollars) recorded in gain on equity securities, net in the consolidated statement of income.
During the fiscal year ended March 31, 2020,
Sony did not sell any portion of the Spotify shares that it owned. The
revaluation of the remaining Spotify shares retained as of March 31, 2020 resulted in a
pre-tax
unrealized loss, net of
a decrease in
costs to be paid to Sony’s artists and distributed labels, of 6,063 million yen (57 million U.S. dollars) recorded in loss on equity securities, net in the consolidated statements of income.
The aggregate carrying amounts of securities that do not have readily determinable fair values
 as of March 31, 2019 and 2020 totaled 25,720 million yen and 30,120 million yen, respectively. Sony recorded no upward adjustments
for securities that do not have readily determinable fair values
for
 
the fiscal year ended March 31, 2019
, and
 upward adjustments of 1,070 million yen
for securities that do not have readily determinable fair values
for
 
the fiscal year ended March 31, 2020. Sony recorded downward adjustments (including impairments) of 4,285 million yen and 9,075 million yen for securities that do not have readily determinable fair values for the fiscal year
s
ended March 31, 2019 and 2020, respectively.