Income taxes (Tables)

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

Fiscal year ended March 31

Income (loss) before income taxes:

Total income tax expense

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

Fiscal year ended March 31

Non-deductible

expenses

Change in statutory tax rate

Change in unrecognized deferred tax assets

Change in deferred tax liabilities on undistributed earnings of foreign subsidiaries and affiliates

Lower tax rate applied to life and

non-life

insurance business in Japan

Foreign income tax differential

Recording or reversal of liabilities for uncertain tax positions

Controlled Foreign Company taxation in Japan

Effective income tax rate

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

Fiscal year ended March 31, 2024

Recognized
in profit or
loss

Recognized in
other
comprehensive
income

Changes
accompanying
business
combination

Recognized
directly in
equity

Deferred tax assets:

Operating loss carryforwards for tax purposes

Defined benefit liabilities

Amortization including content assets

Warranty reserves and accrued expenses

Equity securities measured at FVPL

Debt securities measured at FVOCI

Tax credit carryforwards

Impairment of investments

Total deferred tax assets

Deferred tax liabilities:

Insurance contract liabilities

Equity securities measured at FVOCI

Equity securities measured at FVPL

Intangible assets acquired through stock
exchange offerings

Intangible assets derived from EMI Music Publishing acquisition

Undistributed earnings of foreign subsidiaries
and affiliates

Investment in M3, Inc.

Total deferred tax liabilities

Other mainly consists of exchange differences on translating foreign operations.

Fiscal year ended March 31, 2025

Recognized
in profit or
loss

Recognized in
other
comprehensive
income

Changes
accompanying
business
combination

Recognized
directly in
equity

Deferred tax assets:

Operating loss carryforwards for tax purposes

Defined benefit liabilities

Amortization including content assets

Warranty reserves and accrued expenses

Equity securities measured at FVPL

Debt securities measured at FVOCI

Tax credit carryforwards

Impairment of investments

Total deferred tax assets

Deferred tax liabilities:

Insurance contract liabilities

Equity securities measured at FVPL

Intangible assets acquired through stock exchange offerings

Intangible assets derived from EMI Music Publishing acquisition

Undistributed earnings of foreign subsidiaries and affiliates

Investment in M3, Inc.

Total deferred tax liabilities

Other includes exchange differences on translating foreign operations and others.

As of March 31, 2024 and 2025, the deductible temporary differences, operating loss carryforwards and tax credit carryforwards for which no deferred tax asset is recognized are as follows:

Fiscal year ended March 31

Deductible temporary differences

Operating loss carryforwards

Tax credit carryforwards

As of March 31, 2024 and 2025, the expected expiration period of the operating loss carryforwards for which no deferred tax asset is recognized are as follows:

Fiscal year ended March 31

Over 5 years to 10 years

Over 10 years to 15 years

No expiration period