v3.26.1
Goodwill and intangible assets
 12 Months Ended
Mar. 31, 2026
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, 2025 and 2026 are as follows:
 
    
Yen in millions
  
    
Fiscal year ended March 31
  
    
 2025 
    
 2026 
  
Balance at beginning 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  
  
 
 
    
 
 
  
Increase (decrease) due to:
     
Acquisitions
      44,424       88,058  
Disposals or classified as held for sale
      -       (1,245 )
Classified as held for distribution to owners
*1
    -   (10,834
)
 
Impairment losses
*2
      -       (17,430 )
Translation adjustments
      (22,803 )      106,636  
  
 
 
    
 
 
  
Total changes
      21,621       165,185  
  
 
 
    
 
 
  
Balance at end of the fiscal year
     
Cost
      1,903,617       2,084,956  
Accumulated impairments
      (394,896 )      (411,050 )
  
 
 
    
 
 
  
Carrying amount
      1,508,721       1,673,906  
 
 
 
 
 
 
 
 
 
 
*1  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, the assets of the Financial Services business were 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.
 
*2  Refer to Note 12 for the details of impairment losses.
The carrying amounts of goodwill by segment as of March 31, 2025 and 2026 are as follows:
 
 
  
Yen in millions
 
 
  
March 31
 
 
  
  2025  
 
  
  2026  
 
Game & Network Services
*1
      460,621       487,551  
Music
*2
      729,593        864,910  
Pictures
*3
      283,201        285,417  
Entertainment, Technology & Services
      20,636        30,731  
Imaging & Sensing Solutions
      3,836        5,297
 
Financial Services (Discontinued operation)
*4
      10,834
 
 		      -  
All Other
      -        -  
  
 
 
     
 
 
  
Total
      1,508,721        1,673,906  
  
 
 
     
 
 
  
 
*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 57,434 million yen and 57,451 million yen, as of March 31, 2025 and 2026, 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 2.0% and 10.9% as of March 31, 2025, and 2.0% and 9.6% as of March 31, 2026, 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 355,985 million yen and 417,461 million yen, as of March 31, 2025 and 2026, 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 12.2% as of March 31, 2025, and 1.0% and 13.7% as of March 31, 2026, respectively.
Goodwill related to the music publishing CGU has carrying amounts of 325,590 million yen and 354,856 million yen, as of March 31, 2025 and 2026, 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 11.1% as of March 31, 2025, and 3.4% and 12.1% as of March 31, 2026, 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 139,236 million yen and 148,230 million yen, as of March 31, 2025 and 2026, 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 9.0%, and the
pre-tax
discount rates were 16.4% and 18.4% as of March 31, 2025 and 2026, 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.
 
*4
Financial Services (Discontinued operation)
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 and has been excluded from the reporting segments. For further information on discontinued operations, refer to Note 33.
 
 
(2)
Content assets
The changes in content assets for the fiscal years ended March 31, 2025 and 2026 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, 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
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Changes in carrying amount:
 
 
 
 
 
 
 
Additions
*1
 
 
475,564
 
 
 
104,069
 
 
 
152,768
 
 
 
3,706
 
 
 
171
 
 
 
72,438
 
 
 
808,716
 
Acquisitions through business combinations and other
*2
 
 
-
 
 
 
-
 
 
 
39,586
 
 
 
774
 
 
 
-
 
 
 
-
 
 
 
40,360
 
Disposals or classified as held for sale
 
 
(50,119
)
 
 
(627
)
 
 
-
 
 
 
(674
)
 
 
-
 
 
 
-
 
 
 
(51,420
)
Amortization
 
 
(378,855
)
 
 
(96,772
)
 
 
(59,510
)
 
 
(3,776
)
 
 
(2,236
)
 
 
(54,029
)
 
 
(595,178
)
Impairment losses
*3
 
 
(20,177
)
 
 
-
 
 
 
(587
)
 
 
 
(53
)
 
 
 
-
 
 
 
(56,347
)
 
 
(77,164
)
Translation adjustment
 
 
44,281
 
 
 
7,018
 
 
 
118,825
 
 
 
3,431
 
 
 
1,499
 
 
 
9,199
 
 
 
184,253
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total changes
 
 
70,694
 
 
 
13,688
 
 
 
251,082
 
 
 
3,408
 
 
 
(566
)
 
 
(28,739
)
 
 
309,567
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2026:
 
 
 
 
 
 
 
Cost
 
 
6,356,737
 
 
 
652,384
 
 
 
2,062,201
 
 
 
69,170
 
 
 
61,272
 
 
 
311,394
 
 
 
9,513,158
 
Accumulated amortization and impairment losses
 
 
(5,722,901
)
 
 
(515,012
)
 
 
(476,309
)
 
 
(25,867
)
 
 
(24,700
)
 
 
(189,754
)
 
 
(6,954,543
)
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
 
 
633,836
 
 
 
137,372
 
 
 
1,585,892
 
 
 
43,303
 
 
 
36,572
 
 
 
121,640
 
 
 
2,558,615
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
*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 include only internally developed game content for the fiscal years ended March 31, 2025 and 2026.
*2
Refer to Notes 27 (7) and 30 (2).
*3
Refer to Note 12 for the details of impairment losses related to the Game content.
 
 
(3)
Other intangible assets
The changes in other intangible assets for the fiscal years ended March 31, 2025 and 2026 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, 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
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Changes in carrying amount:
 
 
 
 
 
 
 
Additions
 
 
3,718
 
 
 
-
 
 
 
8
 
 
 
118,603
 
 
 
-
 
 
 
1,275
 
 
 
123,604
 
Acquisitions through business combinations
*1
 
 
7,415
 
 
 
6,350
 
 
 
123,058
 
 
 
88
 
 
 
-
 
 
 
2,637
 
 
 
139,548
 
Internal development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
22,814
 
 
 
-
 
 
 
-
 
 
 
22,814
 
Disposals or classified as held for sale
 
 
(485
)
 
 
-
 
 
 
(386
)
 
 
(10,161
)
 
 
(28
)
 
 
 
(169
)
 
 
(11,229
)
Classified as held for distribution to owners
*2
 
-
 
-
 
(5
)
 
(75,895
)
 
-
 
(19
) 
 
(75,919
) 
Amortization
 
 
(8,029
)
 
 
(3,512
)
 
 
(6,057
)
 
 
(122,884
)
 
 
(4,223
)
 
 
(15,925
)
 
 
(160,630
)
Impairment losses
*3
 
 
(39
)
 
 
(2,078
)
 
 
 
(14,073
)
 
 
 
(19,652
)
 
 
-
 
 
 
(9,940
)
 
 
(45,782
)
Translation adjustment
 
 
903
 
 
 
752
 
 
 
2,154
 
 
 
7,110
 
 
 
1,099
 
 
 
2,307
 
 
 
14,325
 
Other
 
 
3,494
 
 
 
-
 
 
 
1
 
 
 
(19,133
)
 
 
(1
)
 
 
(2,726
)
 
 
(18,365
)
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total changes
 
 
6,977
 
 
 
1,512
 
 
 
104,700
 
 
 
(99,110
)
 
 
(3,153
)
 
 
(22,560
)
 
 
(11,634
)
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2026:
 
 
 
 
 
 
 
Cost
 
 
223,692
 
 
 
83,877
 
 
 
192,613
 
 
 
1,240,309
 
 
 
77,479
 
 
 
229,027
 
 
 
2,046,997
 
Accumulated amortization and impairment losses
 
 
(191,345
)
 
 
(69,837
)
 
 
(47,183
)
 
 
(881,701
)
 
 
(59,841
)
 
 
(137,512
)
 
 
(1,387,419
)
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Carrying amount
*1
 
 
32,347
 
 
 
14,040
 
 
 
145,430
 
 
 
358,608
 
 
 
17,638
 
 
 
91,515
 
 
 
659,578
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
*1
Acquisitions through business combinations of trademarks for the fiscal year ended March 31, 2026 mainly consist of the acquisition of trademarks recognized in connection with the acquisition of an additional equity interest in Peanuts Holdings LLC (“Peanuts Holdings”). For further details of the acquisition of an additional equity interest, refer to Note 30 (1). As a result of the additional acquisition, the carrying amounts in Trademarks include trademarks related to the “PEANUTS” IP as intangible assets with indefinite useful lives, and the carrying amounts of such trademarks as of March 31, 2026 were
115,799
million yen. The trademarks related to the “PEANUTS” IP are classified as intangible assets with indefinite useful lives because their legal protection period is indefinite, and Sony has assessed that there is no foreseeable limit to the period over which such trademarks are expected to generate net cash inflows for Sony. Such trademarks are allocated to the CGU of the anime-related business operated by Sony Music Entertainment (Japan) Inc. (“SMEJ”) and its consolidated subsidiaries. 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 fiscal year of the total forecasted period is determined by utilizing a perpetual growth rate.
*2
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, the 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.
*3
Refer to Note 12 for the details of impairment losses.