Fair value measurements (Tables)

12 Months Ended

Mar. 31, 2020

Fair Value of Assets and Liabilities Measured on Recurring Basis

The fair value of Sony’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2019 and 2020 are as follows.


	Yen in millions
	March 31, 2019
									Presentation in the consolidated balance sheets
	Level 1		Level 2		Level 3		Total		Marketable securities		Securities investments and other		Other current assets		Other noncurrent assets
Assets:
Debt securities
Trading securities		22,105		212,012		—		234,117		234,117		—		—		—
Available-for-sale securities
Japanese national government bonds		—		1,643,589		—		1,643,589		18,719		1,624,870		—		—
Japanese local government bonds		—		67,497		—		67,497		7,768		59,729		—		—
Japanese corporate bonds		—		219,388		—		219,388		11,472		207,916		—		—
Foreign government bonds *1		—		161,495		—		161,495		3,984		157,511		—		—
Foreign corporate bonds *2		—		338,163		22,704		360,867		90,801		270,066		—		—
Securitized products *3		—		25,029		165,083		190,112		—		190,112		—		—
Other		—		4,688		—		4,688		—		4,688		—		—
Equity securities		1,037,100		135,794		—		1,172,894		951,390		221,504		—		—
Other investments *4		5,489		1,507		6,918		13,914		—		13,914		—		—
Derivative assets *5		444		10,042		—		10,486		—		—		9,431		1,055

Total assets		1,065,138		2,819,204		194,705		4,079,047		1,318,251		2,750,310		9,431		1,055


									Presentation in the consolidated balance sheets
	Level 1		Level 2		Level 3		Total		Future insurance policy benefits		Policyholders’ account		Other current liabilities		Other noncurrent liabilitie s
Liabilities:
Derivative liabilities *5		136		32,686		—		32,822		—		—		19,852		12,970

Total liabilities		136		32,686		—		32,822		—		—		19,852		12,970


	Yen in millions
	March 31, 2020
									Presentation in the consolidated balance sheets
	Level 1		Level 2		Level 3		Total		Marketable securities		Securities investments and other		Other current assets		Other noncurrent assets
Assets:
Debt securities
Trading securities		24,330		245,790		—		270,120		270,120		—		—		—
Available-for-sale securities
Japanese national government bonds		—		1,761,929		—		1,761,929		10,011		1,751,918		—		—
Japanese local government bonds		—		69,172		—		69,172		15,334		53,838		—		—
Japanese corporate bonds		—		220,679		30		220,709		14,774		205,935		—		—
Foreign government bonds *1		—		279,777		—		279,777		2,690		277,087		—		—
Foreign corporate bonds *2		—		343,980		15,770		359,750		94,156		265,594		—		—
Securitized products *3		—		33,383		171,840		205,223		—		205,223		—		—
Other		—		4,152		12,101		16,253		—		16,253		—		—
Equity securities		950,744		581,642		—		1,532,386		1,434,612		97,774		—		—
Other investments *4		7,162		816		9,242		17,220		—		17,220		—		—
Derivative assets *5		1,310		41,073		—		42,383		—		—		40,784		1,599

Total assets		983,546		3,582,393		208,983		4,774,922		1,841,697		2,890,842		40,784		1,599


									Presentation in the consolidated balance sheets
	Level 1		Level 2		Level 3		Total		Future insurance policy benefits		Policyholders’ account		Other current liabilities		Other noncurrent liabilities
Liabilities:
Future insurance policy benefits and policyholders’ account in the life insurance business *6		—		—		532,191		532,191		64,045		468,146		—		—

Derivative liabilities *5		2,077		33,789		—		35,866		—		—		16,814		19,052

Total liabilities		2,077		33,789		532,191		568,057		64,045		468,146		16,814		19,052

4,910 million yen and 7,771 million yen are included in foreign securities for which the fair value option has been elected and classified in level 2 for the fiscal years ended March 31, 2019 and 2020

In the consolidated balance sheets, 2,386 million yen are included as marketable securities for the fiscal years ended March 31, 2020 and 4,910 million yen and 5,385 million yen are included as securities investment and other for the fiscal years ended March 31, 2019 and 2020, respectively.

173,964 million yen and 188,426 million yen are included in foreign securities for which the fair value option has been elected and classified in level 2 for the fiscal years ended March 31, 2019 and 2020, respectively. In the consolidated balance sheets, 33,391 million yen and 34,502 million yen are included as marketable securities and 140,573 million yen and 153,924 million yen are included as securities investment and other for the fiscal years ended March 31, 2019 and 2020, respectively.

185,195 million yen and 193,430 million yen are included in foreign securities for which the fair value option has been elected and classified in level 2 and level 3 for the fiscal years ended March 31, 2019 and 2020, respectively, and are included in the consolidated balance sheets as securities investments and other.

*4	Other investments include certain hybrid financial instruments and certain private equity investments.

*5	Derivative assets and liabilities are recognized and disclosed on a gross basis.

*6	Future insurance policy benefits and policyholders’ account in the life insurance business are those for which the fair value option has been elected.

Net gains of 85 million yen and net loss of 12,408 million yen arising from

assets and liabilities

for which the fair value option has been elected are included in financial services revenue and financial services expense in the consolidated statements of income for the fiscal years ended March 31, 2019 and 2020, respectively.

Changes in Fair Value of Level Three Assets and Liabilities

The changes in fair value of level 3 assets and liabilities for the fiscal years ended March 31, 2019 and 2020 are as follows:


	Yen in millions
	Fiscal year ended March 31, 2019
	Assets													Liabilities
	Debt securities													Future insurance policy benefits and Policyholders’ account
	Available-for-sale securities
	Japanese corporate bonds		Foreign corporate bonds			Securitized products			Other		Other investments
Beginning balance		—		27,878			83,614			—		9,104			—
Total realized and unrealized gains (losses):
Included in earnings *1		—		465			562			—		276			—
Included in other comprehensive income (loss) *2		—		131			1			—		—			—
Purchases and Issuances		—		5,787			94,696			—		4			—
Sales		—		—			—			—		(6	)		—
Settlements		—		(10,435	)		(13,601	)		—		(2,460	)		—
Transfers into level 3 *3		—		20,863			5,284			—		—			—
Transfers out of level 3 *4		—		(21,985	)		(5,473	)		—		—			—

Ending balance		—		22,704			165,083			—		6,918			—
Changes in unrealized gains (losses) relating to instruments still held at reporting date:
Included in earnings *1		—		219			510			—		441			—



	Yen in millions
	Fiscal year ended March 31, 2020
	Assets													Liabilities
	Debt securities													Future insurance policy benefits and Policyholder s ’ account
	Available-for-sale securities
	Japanese corporate bonds		Foreign corporate bonds			Securitized products			Other		Other investments
Beginning balance		—		22,704			165,083			—		6,918			—
Acquisition of AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd. *5		—		—			—			—		—			547,190
Total realized and unrealized gains (losses):
Included in earnings *1		—		311			(18,151	)		—		(500	)		12,500
Included in other comprehensive income (loss) *2		—		(73	)		1			—		—			3,032
Purchases and Issuances		30		13,597			40,175			12,101		4,711			5,295
Sales		—		—			—			—		(9	)		—
Settlements		—		(20,867	)		(12,967	)		—		(1,878	)		(4,762	)
Transfers into level 3 *3		—		3,374			—			—		—			—
Transfers out of level 3 *4		—		(3,276	)		(2,301	)		—		—			—
Ending balance		30		15,770			171,840			12,101		9,242			532,191
Changes in unrealized gains (losses) relating to instruments still held at reporting date:
Included in earnings *1		—		(94	)		(16,507	)		—		(376	)		10,273

Earning effects are included in financi

l services revenue and financial services expense in the consolidated statements of income.

Unrealized gains (losses) are included in unrealized gains (losses) on securities, net for available-for-sale securities and included in debt valuation adjustments for future insurance policy benefits and policyholders’ account in the consolidated statements of comprehensive income.

Certain corporate bonds and certain securitized products were transferred into level 3 because differences between the fair value determined by indicative quotes from dealers and the fair value determined by internally developed prices became significant and the observability of the inputs used decreased.

Certain corporate bonds and certain securitized products were transferred out of level 3 because observable market data became available.

Refer to Note 25

Assets and Liabilities Remeasured at Fair Value on a Nonrecurring Basis

During the fiscal years ended March 31, 2019 and 2020, such remeasurements to fair value related primarily to the following:


	During the fiscal year ended March 31, 2019
	Estimated fair value						Amounts included in earnings
	Level 1		Level 2		Level 3		Amounts included in earnings
Assets:
Long-lived assets impairments		—		—		4,389		(44,135	)
Goodwill impairment		—		—		0		(5,107	)

								(49,242	)


	During the fiscal year ended March 31, 2020
	Estimated fair value						Amounts included in earnings
	Level 1		Level 2		Level 3		Amounts included in earnings
Assets:
Remeasurement of retained investment in SRE		15,911		—		—		13,347
Long-lived assets impairments		—		—		8,155		(36,003	)

								(22,656	)

Estimated Fair Values by Fair Value Hierarchy Level of Certain Financial Instruments not Reported at Fair Value

The estimated fair values by fair value hierarchy level of certain financial instruments that are not reported at fair value are summarized as follows:


	Yen in millions
	March 31, 2019
	Estimated fair value								Carrying amount
	Level 1		Level 2		Level 3		Total		Total
Assets:
Housing loans in the banking business		—		1,861,384		—		1,861,384		1,685,504

Total assets		—		1,861,384		—		1,861,384		1,685,504

Liabilities:
Long-term debt including the current portion		—		737,529		—		737,529		740,833
Investment contracts included in policyholders’ account in the life insurance business		—		877,157		—		877,157		816,903

Total liabilities		—		1,614,686		—		1,614,686		1,557,736


	Yen in millions
	March 31, 2020
	Estimated fair value								Carrying amount
	Level 1		Level 2		Level 3		Total		Total
Assets:
Housing loans in the banking business		—		2,161,432		—		2,161,432		1,927,054

Total assets		—		2,161,432		—		2,161,432		1,927,054

Liabilities:
Long-term debt including the current portion		—		699,358		—		699,358		664,773
Investment contracts included in policyholders’ account in the life insurance business		—		969,464		—		969,464		885,690

Total liabilities		—		1,668,822		—		1,668,822		1,550,463