v3.26.1
Supplemental cash flow information
12 Months Ended
Mar. 31, 2026
Text Block1 [Abstract]  
Supplemental cash flow information
27.
Supplemental cash flow information
 
(1)
Classification of cash flows of content assets
Sony classifies the cash flows from the additions, except for additions from purchases of businesses and other, and disposals of content assets as cash flows from operating activities in the consolidated statements of cash flows because the additions and disposals of content assets are derived from the principal revenue-producing activities of Sony.
 
 
(2)
Interest and dividends
 
 
  
Yen in millions
 
 
  
Fiscal year ended March 31
 
 
  
2024
 
  
2025
 
  
2026
 
Interest received
  
  
  
Financial income
 
 
36,295
 
 
 
49,582
 
 
 
55,647
 
Net income (loss) from discontinued operations
       244,292          260,725        138,878  
Dividends received
        
Financial income
 
 
1,138
 
 
 
1,390
 
 
 
2,995
 
Net income (loss) from discontinued operations
     52,760        41,214        7,612  
Interest paid
        
Financial expenses
 
 
22,667
 
 
 
21,829
 
 
 
16,541
 
Net income (loss) from discontinued operations
     74,857        91,431        52,448  
The above are items presented in the consolidated statements of income, which include cash flows for interest and dividends.
Sony classifies the cash flows from interest and dividends of the above as cash flows from operating activities in the consolidated statements of cash flows.
 
(3)
Non-cash
investing and financing activities
Non-cash
investing and financing activities included an increase in ROU assets as a result of entering into lease contracts during the fiscal years ended March 31, 2024, 2025 and 2026. In addition,
non-cash
investing and financing activities included an increase in ROU assets and dividends in kind as a result of the execution of the Partial
Spin-off
of the Financial Services business during the fiscal year ended March 31, 2026. Refer to “(4) Reconciliation of liabilities arising from financing activities” below for more details on the increase in ROU assets and refer to Note 20(5) for more details on the dividends in kind, respectively.
 
(4)
Reconciliation of liabilities arising from financing activities
 
    
Yen in millions
 
    
Short-term
borrowings
*1
    
Long-term

debt
*1,2
    
Lease
liabilities
*2,3
 
Balance as of April 1, 2023
  
 
   92,646
 
  
 
   790,080
 
    
   532,247
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net cash flows from financing activities
     (18,370      188,260        (91,234 )
Acquisitions through business combinations
     796        -        853  
Non-cash
items:
        
Obtaining assets by entering into lease contracts
     -        -        101,039  
Translation adjustment
     12,097        36,946        39,222  
Other
     1,133        (1,000 )      (10,400 )
  
 
 
    
 
 
    
 
 
 
Total changes
     (4,344      224,206        39,480  
  
 
 
    
 
 
    
 
 
 
Balance as of March 31, 202
4
  
 
88,302
 
  
 
1,014,286
 
    
571,727
 
  
 
 
    
 
 
    
 
 
 
Net cash flows from financing activities
     (28,585      57,325        (99,112 )
 
Acquisitions through business combinations
     -        -      32,801  
Non-cash
items:
        
Obtaining assets by entering into lease contracts
     -        -        115,087  
Translation adjustment
     (1,040      (3,664 )      (5,744 )
Other
     (8,036      19,266        (15,289 )
  
 
 
 
  
 
 
 
  
 
 
 
Total changes
  
 
(37,661
  
 
72,927
 
  
 
27,743
 
  
 
 
 
  
 
 
 
  
 
 
 
Balance as of March 31, 2025
  
 
50,641
 
  
 
1,087,213
 
  
 
599,470
 
  
 
 
 
  
 
 
 
  
 
 
 
Net cash flows from financing activities
  
 
(829
)
 
 
  
 
(106,588
)
 
  
 
(91,817
)
Acquisitions through business combinations
  
 
-
 
  
 
-
 
  
 
33
 
Non-cash
items:
  
  
  
Obtaining assets by entering into lease contracts
  
 
-
 
  
 
-
 
  
 
99,188
 
Translation adjustment
  
 
1,591
 
  
 
20,154
 
  
 
27,399
 
Other
*3
  
 
(220
  
 
12
 
  
 
82,874
 
Impact from loss of control of the Financial Services business
*4
  
 
-
 
  
 
(9,988
)
 
  
 
(89,464
)
 
  
 
 
 
  
 
 
 
  
 
 
 
Total changes
  
 
542
 
  
 
(96,410
)
  
 
28,213
 
  
 
 
 
  
 
 
 
  
 
 
 
Balance as of March 31, 2026
  
 
51,183
 
  
 
990,803
 
  
 
627,683
 
  
 
 
 
  
 
 
 
  
 
 
 

 
*1
The amount of short-term borrowings and long-term debt associated with the insurance business and banking business operations, which are classified as cash flows from operating activities in the consolidated statements of cash flows, is excluded from the amount above.
 
 
*2
As described in Note 2 (5), “Lease liabilities,” which were included within the “Current portion of long-term debt” and “Long-term debt,” are presented as part of a separate caption in the consolidated statements of financial position as of March 31, 2026. In connection with this change, the amounts related to lease liabilities have also been reclassified in the table above.
 
 
*3
The amount includes 103,165 million yen of lease liabilities arising from lease agreements with the Financial Services business that were previously eliminated as intercompany transactions. As a result of the execution of the Partial
Spin-off
of the Financial Services business, these leases became external transactions and are therefore recognized in the
consolidated statements of financial position. 
 
 
*4
This is the amount as of the date of deconsolidation of SFGI, which operates the Financial Services business, resulting from the execution of the Partial
Spin-off
of the Financial Services business.
 
(5)
Components of cash and cash equivalents
 
 
  
Yen in millions
 
 
  
March 31
 
 
  
2024
 
  
2025
 
  
2026
 
Cash and demand deposits
     1,535,476        1,885,112        1,127,113  
Time deposits with original maturities of three months or less
     63,169        126,375        570,153  
Money market funds
     219,559        709,460        511,613  
Call loans
     88,909        260,009        -  
  
 
 
    
 
 
    
 
 
 
Total
     1,907,113        2,980,956        2,208,879  
  
 
 
    
 
 
    
 
 
 
Notes:
 
 
1.
Cash and demand deposits, time deposits with original maturities of three months or less and call loans are classified as financial assets required to be measured at amortized cost, whose carrying amounts approximate their fair values mainly due to their short-term nature. Money market funds are short-term and highly liquid investments with insignificant risk of changes in value. Money market funds are classified as financial assets required to be measured at fair value through profit or loss and classified within Level 1 of the fair value hierarchy.
 
2.
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, the balance as of March 31, 2026 does not include cash and cash equivalents related to the Financial Services business.
 
(6)
Cash flows from discontinued operations
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. In the consolidated statements of cash flows, the decrease resulting from deconsolidation in cash and cash equivalent previously recorded in the Financial Services business at the time of execution, amounting to
1,170,068 million yen, is included in net cash used in investing activities from discontinued operations.
 
(7)
Acquisition of a group of assets that does not constitute a business
During the fiscal year ended March 31, 2024, Sony newly obtained an interest in a company which owns certain music assets in the Music segment for consideration of 90,968 million yen, which is reflected in cash flows from investing activities as “Payments for purchases of businesses and other.” This transaction is accounted for as an acquisition of a group of assets that does not constitute a business.
As a result of the transaction, Sony consolidated the company and recognized 182,689 million yen of content assets (music catalogs) as well as 90,968 million yen of noncontrolling interests.
During the fiscal year ended March 31, 2025, Sony established a new joint venture in the Music segment with a third party partner, which acquired interests in companies that own certain music and other assets (the “target companies”) as well as music assets directly from other rights holders. Sony consolidated the joint venture through Sony’s majority interest and reflected the consideration of 133,064 million yen for the acquisition of the interests in the target companies in cash flows from investing activities as “Payments for purchases of businesses and other.” Sony primarily recognized 116,289 million yen of content assets (music catalogs) and 11,501 million yen of other intangible assets from the acquisition of the interests in the target companies. The acquisition of the interests in the target companies is accounted for as an acquisition of a group of assets that does not constitute a business. The consideration for the content assets (music catalogs) directly acquired from other rights holders was 84,382 million yen, which was recorded in cash flows from operating activities as “Increase in content assets.”