v3.25.2
Goodwill and intangible assets
 12 Months Ended
Mar. 31, 2025
Text Block1 [Abstract]  
Goodwill and intangible assets
11.
Goodwill and intangible assets
 
(1)
Goodwill
The changes in goodwill for the fiscal years ended March 31, 2024 and 2025 are as follows:
 
    
Yen in millions
  
    
 Fiscal year ended March 31 
  
    
 2024 
    
 2025 
  
Balance at beginning of the fiscal year
     
Cost
      1,649,041       1,884,627  
Accumulated impairments
      (373,929 )      (397,527 ) 
  
 
 
    
 
 
  
Carrying amount
      1,275,112       1,487,100  
  
 
 
    
 
 
  
Increase (decrease) due to:
     
Acquisitions
      70,791       44,424  
Disposals or classified as held for sale
      (14,491 )      -  
Impairments
      -       -  
Translation adjustments
      155,688       (22,803 ) 
  
 
 
    
 
 
  
Total changes
      211,988       21,621  
  
 
 
    
 
 
  
Balance at end of the fiscal year
     
Cost
      1,884,627       1,903,617  
Accumulated impairments
      (397,527 )      (394,896 ) 
  
 
 
    
 
 
  
Carrying amount
      1,487,100       1,508,721  
  
 
 
    
 
 
  
The carrying amounts of goodwill by segment as of March 31, 2024 and 2025 are as follows:
 
    
Yen in millions
  
    
March 31
  
    
  2024  
     
  2025  
  
Game & Network Services
*1
      465,647        460,621  
Music
*2
      710,888        729,593  
Pictures
*3
      279,949        283,201  
Entertainment, Technology & Services
      15,829        20,636  
Imaging & Sensing Solutions
      3,953        3,836  
Financial Services
      10,834        10,834  
All Other
      -        -  
  
 
 
     
 
 
  
Total
      1,487,100        1,508,721  
  
 
 
     
 
 
  
 
*1
Game & Network Services
All of the goodwill shown in the G&NS line of the table above is allocated to a group of CGUs which comprise the entire G&NS segment.
Intangible assets with indefinite useful lives related to the G&NS business have carrying amounts of 57,438 million yen and 57,434 million yen, as of March 31, 2024 and 2025, respectively, which are included in “Other intangible assets.” Intangible assets with indefinite useful lives include the trademark for PlayStation
®
, which is assessed to have an indefinite useful life as the trademark for PlayStation
®
is utilized as the core trademark for Sony’s products and services throughout the G&NS segment and Sony expects to continue using the trademark in the foreseeable future as well.
The recoverable amount of the group of CGUs is determined by the value in use. The value in use is calculated by discounting the estimated future cash flows including a terminal value. The estimated future cash flows are prepared based on the MRP. A terminal value after the final year of the total forecasted period is determined by utilizing a perpetual growth rate. The growth rate and the
pre-tax
discount rate were 1.5% and 9.6% as of March 31, 2024, and 2.0% and 10.9% as of March 31, 2025, respectively.
 
 
*2
Music
Goodwill shown in the Music line of the table above is primarily allocated to the worldwide recorded music and the worldwide music publishing CGUs excluding operations in Japan.

Goodwill related to the worldwide recorded music CGU has carrying amounts of 342,653 million yen and 355,985 million yen, as of March 31, 2024 and 2025, respectively. The recoverable amount of the CGU is determined by the value in use. The value in use is calculated by discounting the estimated future cash flows including a terminal value. The estimated future cash flows are prepared based on the MRP. A terminal value after the final year of the total forecasted period is determined by utilizing a perpetual growth rate. The growth rate and the
pre-tax
discount rate were 1.0% and 12.5% as of March 31, 2024, and 1.0% and 12.2% as of March 31, 2025, respectively.
Goodwill related to the music publishing CGU has carrying amounts of 330,240 million yen and 325,590 million yen, as of March 31, 2024 and 2025, respectively. The recoverable amount of the CGU is determined by the value in use. The value in use is calculated by discounting the estimated future cash flows including a terminal value. The estimated future cash flows are prepared based on the MRP. A terminal value after the final year of the total forecasted period is determined by utilizing a perpetual growth rate. The growth rate and the
pre-tax
discount rate were 3.0% and 11.4% as of March 31, 2024, and 3.0% and 11.1% as of March 31, 2025, respectively.
 
*3
Pictures
Goodwill shown in the Pictures line of the table above is primarily allocated to the animation distribution CGU.
Goodwill related to the animation distribution CGU has carrying amounts of 141,155 million yen and 139,236 million yen, as of March 31, 2024 and 2025, respectively. The recoverable amount of the CGU is determined by the value in use. The value in use is calculated by discounting the estimated future cash flows including a terminal value. The estimated future cash flows are prepared based on the MRP, with revenues in years beyond the MRP based on declining growth rates. A terminal value is based on a revenue multiple applied to the final year of the total forecasted period. The growth rates beyond the MRP period were 5.0% to 12.0% and 5.0% to 12.0%, and the
pre-tax
discount rates were 15.9% and 16.4% as of March 31, 2024 and 2025, respectively.
The value in use calculation uses key assumptions such as the
pre-tax
discount rate, perpetual growth rate, competitive and regulatory environment, and technology trends. For each assumption, historical experience, external information, competitors and industry trends are taken into account. Sony does not expect the recoverable amounts to be lower than the carrying amounts even when the growth rate and
pre-tax
discount rate that are used in the evaluation of the recoverable amounts change within a reasonably possible range.
 
 
(2)
Content assets
The changes in content assets for the fiscal years ended March 31, 2024 and 2025 are as follows:
 
   
Yen in millions
  
   
Film costs
    
Broadcasting

rights
    
Music

  catalogs  
    
Artist

 contracts 
    
Music

distribution

rights
    
Game

content
    
Content

assets Total
  
Balance as of April 1, 2023:
              
Cost
     4,320,022       419,025       1,008,942       32,484       45,988       97,386       5,923,847  
Accumulated amortization and impairment losses
     (3,747,092 )      (306,468 )      (256,648 )      (16,498 )      (12,539 )      (22,720 )      (4,361,965 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
     572,930       112,557       752,294       15,986       33,449       74,666       1,561,882  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Changes in carrying amount:
              
Additions
*1
     329,104       97,028       20,842       3,061       146       83,757       533,938  
Acquisitions through business combinations and other
*2
     -       -       229,884       15,075       2,627       -       247,586  
Disposals or classified as held for sale
     (35,927 )      (7,371 )      -       (224 )      -       (227 )      (43,749 ) 
Amortization
     (397,855 )      (93,240 )      (43,779 )      (1,394 )      (3,146 )      (31,594 )      (571,008 ) 
Impairment losses
     (13,454 )      (883 )      -       (16 )      -       (1,064 )      (15,417 ) 
Translation adjustment
     76,678       16,150       106,777       3,168       2,045       10,063       214,881  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total changes
     (41,454 )      11,684       313,724       19,670       1,672       60,935       366,231  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2024:
              
Cost
     5,216,247       528,970       1,401,970       54,131       52,498       170,058       7,423,874  
Accumulated amortization and impairment losses
     (4,684,771 )      (404,729 )      (335,952 )      (18,475 )      (17,377 )      (34,457 )      (5,495,761 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
     531,476       124,241       1,066,018       35,656       35,121       135,601       1,928,113  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Changes in carrying amount:
              
Additions
*1
  
 
425,914
 
  
 
112,579
 
  
 
141,927
 
  
 
4,941
 
  
 
17
 
  
 
56,013
 
  
 
741,391
 
Acquisitions through business combinations and other
*2
  
 
1,868
 
  
 
-
 
  
 
202,660
 
  
 
3,273
 
  
 
5,784
 
  
 
-
 
  
 
213,585
 
Disposals or classified as held for sale
  
 
(43,614
) 
  
 
(97
) 
  
 
-
 
  
 
(564
) 
  
 
-
 
  
 
-
 
  
 
(44,275
) 
Amortization
  
 
(328,167
) 
  
 
(110,057
) 
  
 
(51,825
) 
  
 
(2,760
) 
  
 
(3,639
) 
  
 
(39,381
) 
  
 
(535,829
) 
Impairment losses
  
 
(14,449
) 
  
 
(88
) 
  
 
-
 
  
 
-
 
  
 
(13
) 
  
 
(545
) 
  
 
(15,095
) 
Translation adjustment
  
 
(9,886
) 
  
 
(2,894
) 
  
 
(23,970
) 
  
 
(651
) 
  
 
(132
) 
  
 
(1,309
) 
  
 
(38,842
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total changes
  
 
31,666
 
  
 
(557
) 
  
 
268,792
 
  
 
4,239
 
  
 
2,017
 
  
 
14,778
 
  
 
320,935
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2025:
              
Cost
  
 
5,522,693
 
  
 
555,679
 
  
 
1,716,674
 
  
 
61,012
 
  
 
57,952
 
  
 
221,406
 
  
 
8,135,416
 
Accumulated amortization and impairment losses
  
 
(4,959,551
) 
  
 
(431,995
) 
  
 
(381,864
) 
  
 
(21,117
) 
  
 
(20,814
) 
  
 
(71,027
) 
  
 
(5,886,368
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
  
 
563,142
 
  
 
123,684
 
  
 
1,334,810
 
  
 
39,895
 
  
 
37,138
 
  
 
150,379
 
  
 
2,249,048
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
*1
The additions in Film costs include the cost of films internally produced and acquired from third party projects. Film costs acquired from third party projects are not a significant portion of Film costs recorded by Sony. The additions in Broadcasting rights, Music catalogs, Artist contracts and Music distribution rights mainly represent acquisitions through contracts with third parties. The additions in Game content primarily include approximately equal amounts of internally developed game content and externally acquired game content for the fiscal year ended March 31, 2024, and include only internally developed game content for the fiscal year ended March 31, 2025.
*2
Refer to Notes 27 (7) and 30 (2).
 
(3)
Other intangible assets
The changes in other intangible assets for the fiscal years ended March 31, 2024 and 2025 are as follows:
 
   
Yen in millions
  
   
Patent rights,

know-how

and license

agreements
    
Customer
relationships
    
Trademarks
    
Software
    
Television

carriage

contracts
    
Other
    
Total
  
Balance as of April 1, 2023:
              
Cost
        201,243         66,593         51,747       1,045,743       66,583       199,311       1,631,220  
Accumulated amortization and impairment losses
     (182,221 )      (44,272 )      (12,534 )      (698,671 )      (40,303 )      (89,377 )      (1,067,378 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
     19,022       22,321       39,213       347,072       26,280       109,934       563,842  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Changes in carrying amount:
              
Additions
     8,854       -       20       145,515       -       6,038       160,427  
Acquisitions through business combinations
     371       2,003       1,887       13       -       123       4,397  
Internal development
     -       -       -       20,096       -       -       20,096  
Disposals or classified as held for sale
     (16 )      (1,697 )      (616 )      (5,576 )      (33 )      (244 )      (8,182 ) 
Amortization
     (8,838 )      (10,166 )      (5,874 )      (110,296 )      (4,129 )      (14,587 )      (153,890 ) 
Impairment losses
     (16 )      -       -       (8 )      -       (571 )      (595 ) 
Translation adjustment
     444       2,472       5,094       10,981       3,329       4,963       27,283  
Other
     97       -       (104 )      2,193       -       38       2,224  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total changes
     896       (7,388 )      407       62,918       (833 )      (4,240 )      51,760  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2024:
              
Cost
     212,000       70,560       59,377       1,196,266       75,716       211,848       1,825,767  
Accumulated amortization and impairment losses
     (192,082 )      (55,627 )      (19,757 )      (786,276 )      (50,269 )      (106,154 )      (1,210,165 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
     19,918       14,933       39,620       409,990       25,447       105,694       615,602  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Changes in carrying amount:
              
Additions
  
 
4,121
 
  
 
230
 
  
 
825
 
  
 
169,476
 
  
 
-
 
  
 
5,356
 
  
 
180,008
 
Acquisitions through business combinations
  
 
8,433
 
  
 
4,338
 
  
 
6,288
 
  
 
4,698
 
  
 
-
 
  
 
18,031
 
  
 
41,788
 
Internal development
  
 
-
 
  
 
-
 
  
 
-
 
  
 
23,128
 
  
 
-
 
  
 
-
 
  
 
23,128
 
Disposals or classified as held for sale
  
 
(8
) 
  
 
(414
) 
  
 
(1
) 
  
 
(3,897
) 
  
 
-
 
  
 
(397
) 
  
 
(4,717
) 
Amortization
  
 
(6,734
) 
  
 
(6,485
) 
  
 
(5,547
) 
  
 
(127,401
) 
  
 
(4,324
) 
  
 
(15,556
) 
  
 
(166,047
) 
Impairment losses
  
 
(10
) 
  
 
-
 
  
 
-
 
  
 
(10,337
) 
  
 
-
 
  
 
(3
) 
  
 
(10,350
) 
Translation adjustment
  
 
(406
) 
  
 
(74
) 
  
 
(478
) 
  
 
(1,567
) 
  
 
(358
) 
  
 
(703
) 
  
 
(3,586
) 
Other
  
 
56
 
  
 
-
 
  
 
23
 
  
 
(6,372
) 
  
 
26
 
  
 
1,653
 
  
 
(4,614
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total changes
  
 
5,452
 
  
 
(2,405
) 
  
 
1,110
 
  
 
47,728
 
  
 
(4,656
) 
  
 
8,381
 
  
 
55,610
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2025:
              
Cost
  
 
216,960
 
  
 
73,654
 
  
 
65,643
 
  
 
1,353,946
 
  
 
73,958
 
  
 
233,542
 
  
 
2,017,703
 
Accumulated amortization and impairment losses
  
 
(191,590
) 
  
 
(61,126
) 
  
 
(24,913
) 
  
 
(896,228
) 
  
 
(53,167
) 
  
 
(119,467
) 
  
 
(1,346,491
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
  
 
25,370
 
  
 
12,528
 
  
 
40,730
 
  
 
457,718
 
  
 
20,791
 
  
 
114,075
 
  
 
671,212