Income taxes (Tables)

12 Months Ended

Mar. 31, 2022

Text Block [Abstract]

Income (loss) before income taxes and the provision for current and deferred income taxes attributable to such income

Income (loss) before income taxes and the provision for current and deferred income taxes attributable to such income are as follows:

	Yen in millions
	Fiscal year ended March 31
	2021			2022
Income (loss) before income taxes:		997,965			1,117,503
Income tax expenses
Current		156,592			238,602
Deferred		(202,523	)		(9,505	)
Total income tax expense		(45,931	)		229,097

A reconciliation of the differences between the Japanese statutory tax rate and the effective tax rate

A reconciliation of the differences between the Japanese statutory tax rate and the effective tax rate is as follows:

	Fiscal year ended March 31
	2021			2022
Statutory tax rate		31.5	%		31.5	%
Non-deductible expenses		0.2			0.2
Income tax credits		(1.4	)		(1.9	)
Change in statutory tax rate		(0.1	)		(0.2	)
Change in unrecognized tax assets (other than the reversal of a previous write-down of the deferred tax assets below)		(5.5	)		(3.7	)
Reversal of a previous write-down of the deferred tax assets of the consolidated tax filing group in the United States		(6.6	)		—
Reversal of a previous write-down of the deferred tax assets relating to the national tax of Sony Group Corporation and its national tax filing group in Japan		(21.5	)		—
Change in deferred tax liabilities on undistributed earnings of foreign subsidiaries and corporate joint ventures		0.7			1.0
Lower tax rate applied to life and non-life insurance business in Japan		(0.5	)		(0.4	)
Foreign income tax differential		(4.4	)		(5.5	)
Adjustments to tax reserves		(0.4	)		0.8
Controlled Foreign Company taxation in Japan		3.0			(1.8	)
Other		0.4			0.5
Effective income tax rate		-4.6	%		20.5	%

Schedules of deferred tax assets and liabilities by major cause of their occurrence

The schedules of deferred tax assets and liabilities by major cause of their occurrence are as follows:

	Yen in millions
	Fiscal year ended March 31, 2021
	Beginning balance			Recognized in profit or loss			Recognized in other comprehensive income			Changes accompanying business combination			Recognized directly in equity		Other*			Ending balance
Deferred tax assets:
Operating loss carryforwards for tax purposes		34,308			50,453			—			—			—		1,409			86,170
Defined benefit liabilities		33,601			34,373			(6,301	)		—			—		753			62,426
Amortization including content assets		64,465			(20,432	)		—			—			—		218			44,251
Lease liabilities		99,360			(9,413	)		—			—			—		871			90,818
Warranty reserves and accrued expenses		51,811			76,032			—			—			—		1,806			129,649
Inventories		2,929			26,549			—			—			—		236			29,714
Depreciation		15,973			23,787			—			—			—		471			40,231
Tax credit carryforwards		16,120			31,944			—			—			—		251			48,315
Loss allowances		8,505			(1,391	)		—			—			—		51			7,165
Impairment of investments		1,506			5,441			—			—			—		(147	)		6,800
Deferred revenue		24,420			(326	)		—			—			—		408			24,502
Other		95,874			53,236			2,261			—			1,478		(607	)		152,242
Total deferred tax assets		448,872			270,253			(4,040	)		—			1,478		5,720			722,283
Deferred tax liabilities:
Insurance acquisition costs		(54,312	)		(14,978	)		(107,445	)		—			—		(10	)		(176,745	)
Insurance contract liabilities		(77,359	)		(89	)		(73,614	)		—			—		1			(151,061	)
Non-current other receivables in the Pictures segment		(26,214	)		17,984			—			—			—		336			(7,894	)
Right-of-use assets		(96,978	)		13,149			—			—			—		(899	)		(84,728	)
Equity securities measured at FVOCI		(4,916	)		2,296			(46,382	)		—			—		(2,009	)		(51,011	)
Equity securities measured at FVPL		(36,160	)		(53,736	)		—			—			—		2,178			(87,718	)
Debt securities measured at FVOCI		(766,567	)		(459	)		261,112			—			—		—			(505,914	)
Intangible assets acquired through stock exchange offerings		(23,949	)		—			—			—			—		—			(23,949	)
Intangible assets derived from EMI Music Publishing acquisition		(89,909	)		1,556			—			—			—		(5,128	)		(93,481	)
Undistributed earnings of foreign subsidiaries and corporate joint ventures		(24,498	)		(12,740	)		—			—			—		(1,928	)		(39,166	)
Investment in M3		(38,303	)		(3,044	)		—			—			—		—			(41,347	)
Other		(40,530	)		(17,669	)		(11	)		(224	)		357		(2,110	)		(60,187	)
Total deferred tax liabilities		(1,279,695	)		(67,730	)		33,660			(224	)		357		(9,569	)		(1,323,201	)

* Other mainly consists of exchange differences on translating foreign operations.

	Yen in millions
	Fiscal year ended March 31, 2022
	Beginning balance			Recognized in profit or loss			Recognized in other comprehensive income			Changes accompanying business combination			Recognized directly in equity			Other*			Ending balance
Deferred tax assets:
Operating loss carryforwards for tax purposes		86,170			(16,573	)		—			—			—			1,490			71,087
Defined benefit liabilities		62,426			20,721			(9,493	)		—			1,640			(2,729	)		72,565
Amortization including content assets		44,251			(20,323	)		—			—			—			2,831			26,759
Lease liabilities		90,818			5,091			—			1,244			—			(1,053	)		96,100
Warranty reserves and accrued expenses		129,649			8,389			—			134			—			3,172			141,344
Inventories		29,714			(547	)		—			—			—			379			29,546
Depreciation		40,231			2,539			—			161			—			258			43,189
Tax credit carryforwards		48,315			(12,007	)		—			—			—			2,576			38,884
Loss allowances		7,165			98			—			2			—			483			7,748
Impairment of investments		6,800			3,418			—			—			—			(402	)		9,816
Deferred revenue		24,502			3,779			—			—			—			2,904			31,185
Other		152,242			(32,131	)		(538	)		13,304			(125	)		7,842			140,594
Total deferred tax assets		722,283			(37,546	)		(10,031	)		14,845			1,515			17,751			708,817
Deferred tax liabilities:
Insurance acquisition costs		(176,745	)		(13,182	)		(1,261	)		—			—			(286	)		(191,474	)
Insurance contract liabilities		(151,061	)		(10,796	)		(5,480	)		—			—			—			(167,337	)
Non-current other receivables in the Pictures segment		(7,894	)		8,009			—			—			—			(115	)		—
Right-of-use assets		(84,728	)		25,955			—			(1,245	)		—			452			(59,566	)
Equity securities measured at FVOCI		(51,011	)		1,841			33,085			—			—			116			(15,969	)
Equity securities measured at FVPL		(87,718	)		36,915			—			—			—			(2,336	)		(53,139	)
Debt securities measured at FVOCI		(505,914	)		9,822			168,937			—			—			(204	)		(327,359	)
Intangible assets acquired through stock exchange offerings		(23,949	)		—			—			—			—			—			(23,949	)
Intangible assets derived from EMI Music Publishing acquisition		(93,481	)		(1,209	)		—			—			—			(6,904	)		(101,594	)
Undistributed earnings of foreign subsidiaries and corporate joint ventures		(39,166	)		(15,031	)		—			—			—			(1,834	)		(56,031	)
Investment in M3		(41,347	)		(1,345	)		—			—			—			—			(42,692	)
Other		(60,187	)		6,072			(292	)		(15,230	)		765			1,262			(67,610	)
Total deferred tax liabilities		(1,323,201	)		47,051			194,989			(16,475	)		765			(9,849	)		(1,106,720	)

* Other mainly consists of exchange differences on translating foreign operations.