Property, plant and equipment

12 Months Ended

Mar. 31, 2026

9.	Property, plant and equipment

The changes in property, plant and equipment for the fiscal years ended March 31, 2025 and 2026 are as follows:


	Yen in millions
	Land			Buildings			Machinery and equipment			Construction in progress			Total
Balance as of April 1, 2024:
Cost		85,983			1,033,758			2,551,174			185,287			3,856,202
Accumulated depreciation and impairment losses		(37	)		(589,975	)		(1,742,511	)		(1,039	)		(2,333,562	)

Carrying amount		85,946			443,783			808,663			184,248			1,522,640

Changes in carrying amount:
Additions		2,815			19,701			76,224			248,163			346,903
Acquisitions through business combinations		258			12,511			3,964			1,221			17,954
Reclassifications		371			56,556			213,401			(273,978	)		(3,650	)
Disposals or classified as held for sale *1		(657	)		(1,957	)		(5,762	)		(984	)		(9,360	)
Depreciation *2		-			(45,722	)		(301,344	)		-			(347,066	)
Impairment losses		-			(1,154	)		(645	)		(203	)		(2,002	)
Translation adjustment		(162	)		(2,051	)		901			497			(815	)
Other		54			(212	)		(10,904	)		118			(10,944	)

Total changes		2,679			37,672			(24,165	)		(25,166	)		(8,980	)

Balance as of March 31, 2025:
Cost		88,662			1,093,460			2,719,283			159,963			4,061,368
Accumulated depreciation and impairment losses		(37	)		(612,005	)		(1,934,785	)		(881	)		(2,547,708	)

Carrying amount		88,625			481,455			784,498			159,082			1,513,660

Changes in carrying amount:
Additions		495			14,448			73,757			260,571			349,271
Acquisitions through business combinations		-			396			1,068			-			1,464
Reclassifications		9			138,417			136,416			(276,907	)		(2,065	)
Disposals or classified as held for sale *1		(584	)		(19,167	)		(14,637	)		(3,820	)		(38,208	)
Classified as held for distribution to owners *3		(6,672	)		(24,134	)		(1,535	)		(62	)		(32,403	)
Depreciation *2		-			(47,232	)		(281,288	)		-			(328,520	)
Impairment losses *4		-			(9,800	)		(13,784	)		(13,900	)		(37,484	)
Translation adjustment		1,440			12,139			10,053			2,179			25,811
Other		-			(463	)		3,970			(1,228	)		2,279

Total changes		(5,312	)		64,604			(85,980	)		(33,167	)		(59,855	)

Balance as of March 31, 2026:
Cost		83,313			1,175,951			2,831,795			140,944			4,232,003
Accumulated depreciation and impairment losses		-			(629,892	)		(2,133,277	)		(15,029	)		(2,778,198	)

Carrying amount		83,313			546,059			698,518			125,915			1,453,805

*1	An asset or disposal group for which the cash flows are expected to arise principally from sale rather than continuing use is classified to current asset as an asset held for sale.

A portion of depreciation expenses is allocated to the cost of inventory and recognized in cost of sales as inventory is sold, or directly recognized in selling, general and administrative expenses and research and development expenditures in the consolidated statements of income, depending on the use of the asset.

In connection with the Resolution for the plan regarding the execution of the Partial

Spin-off

of the Financial Services business, the Financial Services business was classified as a discontinued operation. Therefore, assets of the Financial Services business have been classified as a disposal group held for distribution to owners. As a result of the execution of the Partial

Spin-off

of the Financial Services business, SFGI, which operates the Financial Services business, has been excluded from consolidation. Therefore, there are no balances related to the Financial Services business as of March 31, 2026.

*4	Refer to Note 12 for the details of impairment losses.