As part of its effort to improve the performance of the various businesses, Sony has undertaken a number of restructuring initiatives. Sony defines restructuring initiatives as activities initiated by Sony, which are designed

to generate a positive impact on future profitability. These activities include exiting a business or product category, implementing a headcount reduction program, realignment of its manufacturing sites to

low-cost

areas, utilizing the services of third-party original equipment and design manufacturers (OEMs and ODMs), a review of its development and design structure, and the streamlining of its sales and administrative functions. The restructuring activities are generally short term in nature and are generally completed within one year of initiation.

The changes in the accrued restructuring charges for the fiscal years ended March 31, 2018, 2019 and 2020 are as follows:


	Yen in millions
	Employee termination benefits			Non-cash write-downs and disposals, net *			Other associated costs			Total
Balance at March 31, 2017		11,634			—			9,167			20,801
Restructuring costs		18,999			2,233			1,147			22,379
Non-cash charges		—			(2,233	)		—			(2,233	)
Cash payments		(9,950	)		—			(6,352	)		(16,302	)
Adjustments		(1,197	)		—			226			(971	)

Balance at March 31, 2018		19,486			—			4,188			23,674
Restructuring costs		24,449			2,731			5,825			33,005
Non-cash charges		—			(2,731	)		—			(2,731	)
Cash payments		(19,150	)		—			(2,555	)		(21,705	)
Adjustments		955			—			(357	)		598

Balance at March 31, 2019		25,740			—			7,101			32,841
Restructuring costs		22,957			100			1,653			24,710
Non-cash charges		—			(100	)		—			(100	)
Cash payments		(23,385	)		—			(6,703	)		(30,088	)
Adjustments		(674	)		—			(131	)		(805	)

Balance at March 31, 2020		24,638			—			1,920			26,558

Significant asset impairments excluded from restructuring charges are described in Note 13.

Total costs incurred in connection with these restructuring programs by segment for the fiscal years ended March 31, 2018, 2019 and 2020 are as follows:


	Yen in millions
	Fiscal year ended March 31, 2018
	Employee termination benefits		Other associated costs *		Total net restructuring charges		Depreciation associated with restructured assets		Total
Game & Network Services		—		—		—		—		—
Music		6,358		272		6,630		—		6,630
Pictures		2,922		—		2,922		—		2,922
Electronics Products & Solutions		3,384		118		3,502		0		3,502
Imaging & Sensing Solutions		28		—		28		—		28
Financial Services		—		—		—		—		—
All Other and Corporate		6,307		2,990		9,297		26		9,323

Total		18,999		3,380		22,379		26		22,405


	Yen in millions
	Fiscal year ended March 31, 2019
	Employee termination benefits		Other associated costs *		Total net restructuring charges		Depreciation associated with restructured assets		Total
Game & Network Services		—		—		—		—		—
Music		2,991		201		3,192		—		3,192
Pictures		4,795		—		4,795		—		4,795
Electronics Products & Solutions		11,437		4,574		16,011		86		16,097
Imaging & Sensing Solutions		—		—		—		—		—
Financial Services		—		—		—		—		—
All Other and Corporate		5,226		3,781		9,007		—		9,007

Total		24,449		8,556		33,005		86		33,091


	Yen in millions
	Fiscal year ended March 31, 2020
	Employee termination benefits		Other associated costs *		Total net restructuring charges		Depreciation associated with restructured assets		Total
Game & Network Services		—		—		—		—		—
Music		3,179		6		3,185		—		3,185
Pictures		545		—		545		—		545
Electronics Products & Solutions		14,500		227		14,727		—		14,727
Imaging & Sensing Solutions		—		—		—		—		—
Financial Services		—		—		—		—		—
All Other and Corporate		4,733		1,520		6,253		256		6,509

Total		22,957		1,753		24,710		256		24,966

Other associated costs includes

non-cash

write-downs and disposals, net

Depreciation associated with restructured assets as used in the context of the disclosures regarding restructuring activities refers to the increase in depreciation expense caused by revising the useful life and the salvage value of depreciable fixed assets under an approved restructuring plan. Any impairment of the assets is recognized immediately in the period it is identified.

Retirement programs

Sony has undergone several headcount reduction programs to further reduce operating costs primarily in an effort to improve the performance of certain segments related to the EP&S segment and reduce cost at the headquarters function. Through measures including the realignment of its manufacturing sites, a review of its development and design structure, and the streamlining of its sales and administrative functions, Sony has continued to implement a company-wide (including headquarters) rationalization. Sony intends to reallocate and optimize its workforce through programs including work reassignments and outplacements. The employee termination benefits costs in the above table are included in selling, general and administrative in the consolidated statements of income.

Music

In an effort to optimize the organization and improve the performance of the Music segment, Sony has implemented a number of restructuring initiatives targeting operating effectiveness and cost reduction. These activities resulted in restructuring charges primarily consisting of headcount reductions totaling 6,630 million yen, 3,192 million yen and 3,185 million yen for the fiscal years ended March 31, 2018, 2019 and 2020

respectively.

Pictures

In an effort to optimize the organization and improve the performance of the Pictures segment, Sony has implemented a number of restructuring initiatives targeting operating effectiveness and cost reduction. These activities resulted in restructuring charges primarily consisting of headcount reductions totaling 4,795 million yen for the fiscal year ended March 31

201

There were no significant charges for the Pictures segment during the fiscal year ended March 31, 2020.

EP&S

In an effort to improve the performance of each business, mainly the smartphone business in the EP&S segment, Sony has implemented a number of restructuring initiatives targeting profitability improvement. These activities resulted in restructuring charges primarily consisting of the closure and consolidation of manufacturing sites as well as sales offices overseas totaling 16,011 million yen and 14,727 million yen for the fiscal year

ended March 31, 2019 and 2020

respectively.