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Stockholders' equity
 12 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Stockholders' equity
16.
Stockholders’ equity
 
 
 
(1)
Common stock
Changes in the number of shares of common stock issued and outstanding during the fiscal years ended March 31, 2018, 2019 and 2020 have resulted from the following:
         
 
Number of shares
 
Balance at March 31, 2017
   
1,263,763,660
 
Issuance of new shares
   
218,000
 
Exercise of stock acquisition rights
   
2,565,700
 
Conversion of convertible bonds
   
4,789
 
   
 
 
  
Balance at March 31, 2018
   
1,266,552,149
 
Issuance of new shares
   
149,900
 
Exercise of stock acquisition rights
   
4,525,300
 
Conversion of convertible bonds
   
2,992
 
   
 
 
  
Balance at March 31, 2019
   
1,271,230,341
 
   
 
 
  
Issuance of new shares
   
184,900
 
Exercise of stock acquisition rights
   
2,294,900
 
Conversion of convertible bonds
   
86,040
 
Cancellation of treasury stock
   
(12,737,400
 )
   
 
 
  
Balance at March 31, 2020
   
1,261,058,781
 
         
 
 
 
At March 31, 2020, 36,802,040 shares of common stock would be issued upon the conversion or exercise of all convertible bonds and stock acquisition rights outstanding.
Conversions of convertible bonds into common stock are accounted for in accordance with the provisions of the Companies Act of Japan (
Kaishaho
) and related regulations (collectively the “Companies Act”) by crediting approximately
one-half
of the conversion proceeds to the common stock account and the remainder to the additional
paid-in
capital account.
Sony Corporation may purchase its own shares at any time by a resolution of the Board of Directors up to the retained earnings available for dividends to shareholders, in accordance with the Companies Act.
Sony Corporation’s
Board of Directors resolved and authorized the repurchase of shares of its own common stock pursuant to the Companies Act at the meeting of the Board of Directors held on February 8, 2019. During the year ended March 31, 2019, Sony
Corporation
 
repurchased
19,309,100 shares of its common stock for an amount of 100,000 million yen under the above resolution.
Sony Corporation’s
 Board of Directors resolved and authorized the repurchase of shares of its own common stock pursuant to the Companies Act at the meeting of the Board of Directors held on May 16, 2019. During the year ended March 31, 2020, Sony
Corporation
 
repurchased 33,059,200 shares of its common stock for an amount of 199,999 million yen under the above resolution.
Based on the resolution of Sony
 
Corporation
’s Representative Corporate Executive Officer delegated by the Board of Directors, Sony Corporation canceled 12,737,400 shares of its common stock held as treasury stock on March 26, 2020.
(2)
Retained earnings
 
 
 
 
 
 
The amount of statutory retained earnings of Sony Corporation available for dividends to shareholders as of March 31, 2020 was 683,084 million yen.
The appropriation of retained earnings for the fiscal year ended March 31, 2020, including cash dividends for the six-month period ended March 31, 2020, has been incorporated in the consolidated financial statements. This appropriation of retained earnings was approved by the written resolution of the Board of Directors of Sony Corporation as of May 13, 2020 and was then recorded in the statutory books of account, in accordance with the Companies Act.
Retained earnings include Sony’s equity in undistributed earnings of affiliated companies accounted for by the equity method in the amount of 46,477 million yen and 61,226 million yen at March 31, 2019 and 2020, respectively.
(3)
Other comprehensive income
Changes in accumulated other comprehensive income, net of tax, by component for the fiscal years ended March 31, 2018, 2019 and 2020 were as follows:
                                         
 
Yen in millions
 
 
Unrealized
gains (losses)
on securities
 
  
Unrealized
gains (losses)
on derivative
instruments
 
  
Pension
liability
adjustment
 
  
Foreign
currency
translation
adjustments
 
  
Total
 
Balance at March 31, 2017
   
126,635
     
(58
 )    
(308,736
 )    
(436,610
 )    
(618,769
 )
Other comprehensive income before reclassifications
   
2,013
     
(2,295
 )    
1,779
     
(4,480
 )    
(2,983
 )
Amounts reclassified out of accumulated other
comprehensive income
*
    
(943
 )    
1,111
     
10,611
     
(1,855
 )    
8,924
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income
   
1,070
     
(1,184
 )    
12,390
     
(6,335
 )    
5,941
 
Less: Other comprehensive income attributable to noncontrolling interests
   
1,514
     
—
     
98
     
2,306
     
3,918
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at March 31, 2018
   
126,191
     
(1,242
 )    
(296,444
 )    
(445,251
 )    
(616,746
 )
                                         
 
 
 
 
 
 
                                         
 
Yen in millions
 
 
Unrealized
gains (losses)
on securities
 
  
Unrealized
gains (losses)
on derivative
instruments
 
  
Pension
liability
Adjustment
 
  
Foreign
currency
translation
adjustments
 
  
Total
 
Balance at March 31, 2018
   
126,191
     
(1,242
 )    
(296,444
 )    
(445,251
 )    
(616,746
 )
Cumulative effect of
ASU2016-01
   
(15,526
 )    
—
     
—
     
—
     
(15,526
 )
Other comprehensive income before reclassifications
   
33,124
     
2,316
     
(23,448
 )    
10,071
     
22,063
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Amounts reclassified out of accumulated other comprehensive income
*
    
161
     
(1,093
 )    
9,488
     
(1,627
 )    
6,929
 
Net other comprehensive income
   
33,285
     
1,223
     
(13,960
 )    
8,444
     
28,992
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Less: Other comprehensive income attributable to noncontrolling interests
   
8,915
     
—
     
53
     
(1,578
 )    
7,390
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at March 31, 2019
   
135,035
     
(19
 )    
(310,457
 )    
(435,229
 )    
(610,670
 )
                                         
 
 
 
 
 
 
                                                 
 
Yen in millions
 
 
Unrealized
gains (losses)
on securities
 
  
Unrealized
gains (losses)
on derivative
instruments
 
  
Pension
liability
adjustment
 
  
Foreign
currency
translation
adjustments
 
  
Debt
valuation
adjustments
 
  
Total
 
Balance at March 31, 2019
   
135,035
     
(19
 )    
(310,457
 )    
(435,229
 )    
—
     
(610,670
 )
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income before reclassifications
   
40,334
     
1,193
     
(17,519
 )    
(75,814
 )    
3,032
      
(48,774
 )
Amounts reclassified out of accumulated other
comprehensive income
*
    
56
     
74
     
92,490
     
(74
)     
—
     
92,546
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income
   
40,390
     
1,267
     
74,971
     
(75,888
 )    
3,032
      
43,772
 
Less: Other comprehensive income attributable to noncontrolling interests
   
14,234
     
—
     
34
     
(1,245
 )    
1,059
      
14,082
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at March 31, 2020
   
161,191
     
1,248
     
(235,520
 )    
(509,872
 )    
1,973
      
(580,980
 )
                                                 
 
 
 
 
 
 
* Foreign currency translation adjustments were transferred from accumulated other comprehensive income to net income as a result of a complete or substantially complete liquidation or sale of certain foreign subsidiaries and affiliates.
 
 
 
 
 
 
Reclassifications out of accumulated other comprehensive income for the fiscal years ended March 31, 2018, 2019 and 2020 were as follows:
                             
 
Yen in millions
   
Comprehensive income components
 
Amounts reclassified from
accumulated other
comprehensive income
   
Affected line items in consolidated
statements of income
 
2018
 
  
2019
 
  
2020
 
  
Unrealized gains (losses) on securities
   
(646
 )    
235
     
82
   
Financial services revenue
   
(561
 )    
—
     
—
   
Gain on sale of securities investments, net
   
 
 
    
 
 
    
 
 
      
Total before tax
   
(1,207
 )    
235
     
82
   
Tax expense or (benefit)
   
264
     
(74
 )    
(26
 )  
   
 
 
    
 
 
    
 
 
      
Net of tax
   
(943
 )    
161
     
56
   
   
 
 
    
 
 
    
 
 
      
Unrealized gains (losses) on derivative instruments
   
1,111
     
(1,093
 )    
—
   
Cost of sales
   
—
     
—
     
106
    
Net sales
   
 
 
    
 
 
    
 
 
      
Total before tax
   
1,111
     
(1,093
 )    
106
   
Tax expense or (benefit)
   
—
     
—
     
(32
)
  
   
 
 
    
 
 
    
 
 
      
Net of tax
   
1,111
     
(1,093
 )    
74
   
   
 
 
    
 
 
    
 
 
      
Pension liability adjustment
   
11,034
     
9,891
     
92,514
   
*
Tax expense or (benefit)
   
(423
 )    
(403
 )    
(24
)   
   
 
 
    
 
 
    
 
 
      
Net of tax
   
10,611
     
9,488
     
92,490
   
   
 
 
    
 
 
    
 
 
      
Foreign currency translation adjustments
   
(1,855
 )    
(1,627
 )    
(74
)  
Foreign exchange loss, net and other operating (income) expense, net
Tax expense or (benefit)
   
—
     
—
     
—
   
   
 
 
    
 
 
    
 
 
      
Net of tax
   
(1,855
 )    
(1,627
 )    
(74
)  
   
 
 
    
 
 
    
 
 
      
Total amounts reclassified out of accumulated other comprehensive income, net of tax
   
8,924
     
6,929
     
92,546
   
                             
 
 
 
 
 
 
 
* The amortization of pension and postretirement benefit components
is
included in the computation of net periodic pension cost. Refer to Note 15.
 
 
 
(4)
Equity transactions with noncontrolling interests
Net income attributable to Sony Corporation’s stockholders and transfers (to) from the noncontrolling interests for the fiscal years ended March 31, 2018, 2019 and 2020 were as follows:
                         
 
Yen in millions
 
 
Fiscal year ended March 31
 
 
      2018      
 
  
      2019      
 
  
      2020      
 
Net income attributable to Sony Corporation’s stockholders
   
490,794
     
916,271
     
582,191
 
Transfers (to) from the noncontrolling interests:
   
     
     
 
Increase (decrease) in additional
paid-in
capital for purchase of additional shares in consolidated subsidiaries
    
(74
 )    
(22,775
 )    
16,372
 
   
 
 
    
 
 
    
 
 
  
Change from net income attributable to Sony Corporation’s stockholders and transfers (to) from the noncontrolling interests
   
490,720
     
893,496
     
598,563
 
                         
 
 
 
 
 
 
 
During the fiscal year ended March 31, 2019, Sony acquired from the Estate of Michael Jackson (the “Estate”) the 25.1% interest in Nile Acquisition LLC (“Nile”) held by the Estate. A total of 287.5 million U.S.
dollars was paid to the Estate for the acquisition. The difference between the cash consideration paid and the carrying amount of the noncontrolling interests was recognized as a decrease to additional
paid-in
capital of 295.9 million U.S. dollars. As a result of the acquisition, Nile became a wholly-owned subsidiary of Sony.
On November 18, 2019, Sony, through a wholly-owned subsidiary in the Pictures segment, acquired AT&T Inc.’s (“AT&T”) 42% equity interest in Game Show Network, LLC (“Game Show Network”), a U.S.-based media network subsidiary. As a result of this acquisition, Game Show Network has become a wholly-owned subsidiary of Sony. Sony paid 53,992 million yen (496 million U.S. dollars) to AT&T, including 129 million U.S. dollars of dividends Sony distributed to AT&T prior to the acquisition. The difference between the cash paid and the carrying amount of the noncontrolling interests was recognized as an increase to additional
paid-in
capital.