Pension and severance plans (Tables)

12 Months Ended

Mar. 31, 2020

Components of Net Periodic Benefit Costs

The components of net periodic benefit costs for the fiscal years ended March 31, 2018, 2019 and 2020 were as follows:

Japanese plans


	Yen in millions
	Fiscal year ended March 31
	2018			2019			2020
Service cost		25,185			23,128			17,948
Interest cost		8,024			7,020			4,162
Expected return on plan assets		(16,440	)		(16,695	)		(17,040	)
Recognized actuarial loss		16,099			15,365			12,969
Amortization of prior service costs		(8,693	)		(7,864	)		(4,294	)
Losses on curtailments and settlements		—			—			6,358

Net periodic benefit costs		24,175			20,954			20,103

Foreign plans


	Yen in millions
	Fiscal year ended March 31
	2018			2019			2020
Service cost		3,181			2,780			3,616
Interest cost		10,393			10,083			9,212
Expected return on plan assets		(11,687	)		(11,797	)		(10,916	)
Amortization of net transition asset		5			—			—
Recognized actuarial loss		3,014			2,656			2,606
Amortization of prior service costs		(574	)		(269	)		2
Losses on curtailments and settlements		1,058			1,804			68

Net periodic benefit costs		5,390			5,257			4,588

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
	2019			2020			2019			2020
Change in benefit obligation:
Benefit obligation at beginning of the fiscal year		1,010,574			1,034,954			356,397			351,918
Service cost		23,128			17,948			2,780			3,616
Interest cost		7,020			4,162			10,083			9,212
Plan participants’ contributions		—			—			462			487
Plan amendments		—			—			—			10,210
Actuarial (gain) loss		29,295			(3,330	)		1,700			19,776
Foreign currency exchange rate changes		—			—			(1,554	)		(16,919	)
Curtailments and settlements		—			(359,205	)		(6,120	)		(4,434	)
Effect of changes in consolidated subsidiaries		—			—			1,947			—
Other		6			2			—			—
Benefits paid		(35,069	)		(35,668	)		(13,777	)		(14,055	)

Benefit obligation at end of the fiscal year		1,034,954			658,863			351,918			359,811

Change in plan assets:
Fair value of plan assets at beginning of the fiscal year		711,077			742,204			269,745			274,749
Actual return on plan assets		18,701			2,942			15,243			26,738
Foreign currency exchange rate changes		—			—			(838	)		(14,904	)
Employer contribution		36,875			7,453			8,542			9,916
Plan participants’ contributions		—			—			462			487
Curtailments and settlements		—			(284,333	)		(5,960	)		(3,146	)
Benefits paid		(24,449	)		(31,060	)		(12,445	)		(12,730	)

Fair value of plan assets at end of the fiscal year		742,204			437,206			274,749			281,110

Funded status at end of the fiscal year		(292,750	)		(221,657	)		(77,169	)		(78,701	)

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
	2019			2020			2019			2020
Noncurrent assets		3,476			3,391			14,745			24,777
Current liabilities		—			—			(4,412	)		(4,355	)
Noncurrent liabilities		(296,226	)		(225,048	)		(87,502	)		(99,123	)

Ending balance		(292,750	)		(221,657	)		(77,169	)		(78,701	)

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
	2019			2020			2019			2020
Prior service cost (credit)		(8,859	)		(369	)		(45	)		10,058
Net actuarial loss		311,128			223,354			71,906			66,326

Ending balance		302,269			222,985			71,861			76,384

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				Yen in millions
	March 31				March 31
	2019		2020		2019		2020
Accumulated benefit obligations		1,029,910		654,209		336,185		354,100

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
	2019		2020		2019		2020
Projected benefit obligations		1,022,235		645,544		200,596		230,058
Accumulated benefit obligations		1,017,191		640,890		196,928		226,080
Fair value of plan assets		726,009		420,497		123,937		130,955

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, 2019 and 2020 were as follows:


	Japanese plans						Foreign plans
	March 31						March 31
	2019			2020			2019			2020
Discount rate		0.6	%		0.6	%		2.8	%		2.0	%
Rate of compensation increase		*			*			2.3			2.2

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, 2018, 2019 and 2020 were as follows:


	Japanese plans									Foreign plans
	Fiscal year ended March 31									Fiscal year ended March 31
	2018			2019			2020			2018			2019			2020
Discount rate		0.9	%		0.8	%		0.6	%		3.1	%		2.9	%		2.8	%
Expected return on plan assets		2.4			2.6			2.6			4.6			4.4			4.2
Rate of compensation increase		*			*			*			2.4			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.

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, 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


	Japanese plans
	Yen in millions
	Fair value at March 31, 2020		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2020		Level 1		Level 2			Level 3
Cash and cash equivalents		24,851		24,851		—			—
Equity:
Equity securities *1		50,646		47,308		3,338			—
Fixed income:
Government bonds *2		107,478		1,087		106,391			—
Corporate bonds *3		71,192		20		71,172			—
Asset-backed securities *4		1,090		—		1,090			—
Commingled funds *5		58,740		—		58,740			—
Commodity funds *6		21,823		—		21,823			—
Private equity *7		30,191		—		—			30,191
Hedge funds *8		48,410		—		—			48,410
Real estate and other *9		22,785		—		(2,586	)		25,371

Total		437,206		73,266		259,968			103,972

Includes approximately 51 percent and 37 percent of Japanese equity securities, and 49 percent and 63 percent of foreign equity securities for the fiscal years ended March 31, 2019 and 2020, respectively.

Includes approximately 48 percent and 36 percent of debt securities issued by Japanese national and local governments, and 52 percent and 64 percent of debt securities issued by foreign national and local governments for the fiscal years ended March 31, 2019 and 2020, 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 50 percent and 50 percent of investments in equity, 49 percent and 45 percent of investments in fixed income, and 1 percent and 5 percent of investments in other for the fiscal years ended March 31, 2019 and 2020, 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, 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


	Foreign plans
	Yen in millions
	Fair value at March 31, 2020		Fair value measurements using inputs considered as
Asset class	Fair value at March 31, 2020		Level 1		Level 2		Level 3
Cash and cash equivalents		4,632		4,632		—		—
Equity:
Equity securities *1		18,380		17,762		618		—
Fixed income:
Government bonds *2		93,826		—		93,826		—
Corporate bonds *3		31,769		—		31,769		—
Asset-backed securities		1,320		—		1,320		—
Insurance contracts *4		19,334		—		7,156		12,178
Commingled funds *5		78,280		—		78,280		—
Real estate and other *6		33,569		—		11,272		22,297

Total		281,110		22,394		224,241		34,475

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, 2019 and 2020:


	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, 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

Return on assets held at end of year		2,649			(648	)		418			2,419
Purchases, sales, and settlements, net		(414	)		(22,548	)		3,561			(19,401	)

Ending balance at March 31, 2020		30,191			48,410			25,371			103,972


	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, 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

Return on assets held at end of year		559			—			132			691
Purchases, sales, and settlements, net		(373	)		—			755			382
Transfers, net		—			—			—			—
Other *		(502	)		—			(679	)		(1,181	)

Ending balance at March 31, 2020		12,178			—			22,297			34,475

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
2021		37,384		20,825
2022		36,228		104,988
2023		36,985		12,089
2024		38,271		12,269
2025		37,216		13,074
2026 — 2030		185,218		112,218

Total Defined Contribution Expenses

Total defined contribution expenses 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
Japanese plans		3,237		3,353		6,925
Foreign plans		11,379		11,602		10,313