Financial instruments (Tables)

12 Months Ended

Mar. 31, 2026

Summary of Carrying Amount of Assets and Liabilities by Measurement Method

The carrying amount of Sony’s assets and liabilities by measurement method as of March 31, 2025 and 2026 are as follows:


	Yen in millions
	March 31
	2025		2026
Assets:
Financial assets required to be measured at amortized cost (“AC”)
Investments and advances in the Financial Services segment
Debt securities		521,054		-
Housing loans in the banking business		3,763,261		-
Other loans		21,950		-
Trade and other receivables*
Trade receivables		1,923,433		1,806,487
Other receivables		12,364		12,071
Other financial assets
Time deposit		6,179		4,473
Security deposit		150,950		29,672
Non-current other receivables in the Pictures segment		104,943		90,816
Other		70,514		87,499
Financial assets required to be measured at fair value through profit or loss (“FVPL”)
Investments and advances in the Financial Services segment
Debt securities		1,394,539		-
Equity securities		3,740,189		-
Other financial assets
Debt securities		20,555		23,417
Equity securities		487,454		470,508
Derivative assets		86,141		27,954
Financial assets designated to be measured at FVPL
Investments and advances in the Financial Services segment
Debt securities		893,972		-
Financial assets required to be measured at fair value through other comprehensive income (“FVOCI”)
Investments and advances in the Financial Services segment
Debt securities		8,849,130		-
Other financial assets
Debt securities		139		158
Financial assets designated to be measured at FVOCI
Investments and advances in the Financial Services segment
Equity securities		5,880		-
Other financial assets
Equity securities		382,947		467,489

Total assets		22,435,594		3,020,544

Current assets		2,534,666		1,846,725
Non-current assets		19,900,928		1,173,819

*	The amounts of trade and other receivables exclude contract assets within trade and other receivables, and contract assets in the consolidated statements of financial position.

Cash and cash equivalents are excluded from the table above. Refer to Note 27.


	Yen in millions
	March 31
	2025		2026
Liabilities:
Financial liabilities required to be measured at AC
Short-term borrowings		1,843,959		51,183
Current portion of long-term debt* 1		196,950		166,410
Trade and other payables
Trade payables		1,927,633		2,047,388
Other payables		123,454		139,010
Deposits from customers in the banking business* 2		4,243,962		-
Long-term debt* 1		1,557,867		824,393
Lease liabilities* 1		599,470		627,683
Deferred consideration* 3		95,942		59,652
Investment contract liabilities		62,772		-
Other financial liabilities		79,340		50,795
Financial liabilities required to be measured at FVPL
Other financial liabilities
Derivative liabilities		154,526		70,216
Contingent consideration		25,785		16,549
Financial liabilities designated to be measured at FVPL
Other financial liabilities
Redeemable noncontrolling interests		52,963		78,568

Total liabilities		10,964,623		4,131,847

Current liabilities		8,323,430		2,668,104
Non-current liabilities		2,641,193		1,463,743

As described in Note 2 (5), “Lease liabilities,” which had previously been included within

“Current portion of long-term debt” and “Long-term debt,” has increased in materiality and is presented separately from the fiscal year ended March 31, 2026. As a result of this change,

“Current portion of long-term debt” of 90,495 million yen and

“Long-term

debt” of 508,975 million yen as of March 31, 2025 have been reclassified to “Lease liabilities” of 599,470 million yen.

*2	Deposits from customers in the banking business include the non-current portion that is recorded within other financial liabilities in the consolidated statements of financial position.

*3	Deferred consideration is recorded within other financial liabilities or trade and other payables in the consolidated statements of financial position.

Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The fair value of Sony’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2025 and 2026 is as follows:


	Yen in millions
	March 31, 2025
									Presentation in the consolidated statements of financial position
	Level 1		Level 2		Level 3		Total		Investments and advances in the Financial Services segment (Current)		Other financial assets (Current)		Investments and advances in the Financial Services segment (Non-current)		Other financial assets (Non-current)
Assets:
Financial assets required to be measured at FVPL
Debt securities
Japanese national government bonds		-		411,764		-		411,764		-		-		411,764		-
Japanese local government bonds		-		1,225		-		1,225		-		-		1,225		-
Japanese corporate bonds		-		19,828		33		19,861		-		-		19,828		33
Foreign government bonds		41,867		179,346		-		221,213		-		-		221,213		-
Foreign corporate bonds		-		24,657		2,849		27,506		-		-		24,657		2,849
Investment funds		-		666,662		66,863		733,525		-		-		715,852		17,673
Equity securities		4,210,845		7,120		9,678		4,227,643		-		-		3,740,189		487,454
Derivative assets
Interest rate contracts		-		65,433		-		65,433		-		493		-		64,940
Foreign exchange contracts		-		15,255		-		15,255		-		13,821		-		1,434
Equity contracts		910		911		2,346		4,167		-		4,167		-		-
Bond contracts		1,286		-		-		1,286		-		1,286		-		-
Financial assets designated to be measured at FVPL
Debt securities
Japanese national government bonds		-		757,357		-		757,357		3,494		-		753,863		-
Japanese local government bonds		-		8,596		-		8,596		8,596		-		-		-
Foreign government bonds		-		50,569		-		50,569		5,639		-		44,930		-
Foreign corporate bonds		-		71,408		6,042		77,450		25,659		-		51,791		-
Financial assets required to be measured at FVOCI
Debt securities
Japanese national government bonds		-		6,134,141		-		6,134,141		35,000		-		6,099,141		-
Japanese local government bonds		-		71,752		-		71,752		11,055		-		60,697		-
Japanese corporate bonds		-		693,016		111,792		804,808		11,087		-		793,721		-
Foreign government bonds		-		1,315,058		-		1,315,058		4,612		-		1,310,307		139
Foreign corporate bonds		-		353,862		61,068		414,930		29,447		-		385,483		-
Securitized products		-		59,702		48,878		108,580		-		-		108,580		-
Financial assets designated to be measured at FVOCI
Equity securities		86,339		-		302,488		388,827		-		-		5,880		382,947

Total assets		4,341,247		10,907,662		612,037		15,860,946		134,589		19,767		14,749,121		957,469


									Presentation in the consolidated statements of financial position
	Level 1		Level 2		Level 3		Total		Other financial liabilities (Current)		Other financial liabilities (Non-current)
Liabilities:
Financial liabilities required to be measured at FVPL
Derivative liabilities
Interest rate contracts		-		15,835		-		15,835		1,016		14,819
Foreign exchange contracts		-		15,778		-		15,778		15,778		-
Equity contracts		514		-		118,606		119,120		514		118,606
Bond contracts		3,793		-		-		3,793		3,793		-
Contingent consideration		-		-		25,785		25,785		11,594		14,191
Financial liabilities designated to be measured at FVPL
Redeemable noncontrolling interests		-		-		52,963		52,963		10,912		42,051

Total liabilities		4,307		31,613		197,354		233,274		43,607		189,667


	Yen in millions
	March 31, 2026
									Presentation in the consolidated statements of financial position
	Level 1		Level 2		Level 3		Total		Other financial assets (Current)		Other financial assets (Non-current)
Assets:
Financial assets required to be measured at FVPL
Debt securities
Japanese corporate bonds		-		-		170		170		-		170
Foreign corporate bonds		-		-		6,601		6,601		-		6,601
Investment funds		-		-		16,646		16,646		-		16,646
Equity securities		446,932		8,547		15,029		470,508		-		470,508
Derivative assets
Interest rate contracts		-		20,982		-		20,982		-		20,982
Foreign exchange contracts		-		6,972		-		6,972		6,972		-
Financial assets required to be measured at FVOCI
Debt securities
Foreign government bonds		-		158		-		158		-		158
Financial assets designated to be measured at FVOCI
Equity securities		148,537		-		318,952		467,489		-		467,489

Total assets		595,469		36,659		357,398		989,526		6,972		982,554


									Presentation in the consolidated statements of financial position
	Level 1		Level 2		Level 3		Total		Other financial liabilities (Current)		Other financial liabilities (Non-current)
Liabilities:
Financial liabilities required to be measured at FVPL
Derivative liabilities
Foreign exchange contracts		-		14,553		-		14,553		14,553		-
Equity contracts		-		-		55,663		55,663		55,663		-
Contingent consideration		-		-		16,549		16,549		9,906		6,643
Financial liabilities designated to be measured at FVPL
Redeemable noncontrolling interests		-		-		78,568		78,568		35,663		42,905

Total liabilities		-		14,553		150,780		165,333		115,785		49,548

Summary of Valuation Techniques Used to Measure the Fair Value of Assets and Liabilities Classified as Level 3

The valuation techniques used to measure the fair value of assets and liabilities classified as Level 3, significant unobservable inputs that have a material impact on fair value measurement, and their respective ranges, are as follows:

Valuation

technique(s)

Significant
unobservable
inputs

Range

March 31, 2025

March 31, 2026

Financial assets required to be measured at FVOCI

Debt securities

Japanese corporate bonds

Discounted cash flow

Credit spread

53bp-71bp

Securitized products

80bp-140bp

Financial liabilities required to be measured at FVPL

Derivative liabilities

Equity contracts

Option pricing

(Black-Scholes)

Volatility

47.7%-57.0%

51.1%-67.7%

* bp = basis point

Summary of Changes in Fair Value of Level 3 Assets and Liabilities

The changes in fair value of Level 3 assets and liabilities for the fiscal years ended March 31, 2025 and 2026 are as follows:


	Yen in millions
	Fiscal year ended March 31, 2025
			Total gains (losses)*¹
	Beginning balance		Net income*²			Other comprehensive income*³			Purchases		Sales and settlements			Transfers to Level 3		Transfers out of Level 3 *4			Other *5			Ending balance
Assets:
Financial assets required to be measured at FVPL
Debt securities
Japanese corporate bonds		20		-			-			33		-			-		-			(20	)		33
Foreign corporate bonds		2,933		(53	)		-			-		(31	)		-		-			-			2,849
Investment funds		67,355		2,580			(94	)		35,176		(37,968	)		-		-			(186	)		66,863
Equity securities		9,434		(1,725	)		(1	)		2,391		(421	)		-		-			-			9,678
Derivative assets
Equity contracts		2,379		-			(33	)		-		-			-		-			-			2,346
Financial assets designated to be measured at FVPL
Debt securities
Foreign corporate bonds		5,923		119			-			-		-			-		-			-			6,042
Financial assets required to be measured at FVOCI
Debt securities
Japanese corporate bonds		138,848		9			(27,065	)		-		-			-		-			-			111,792
Foreign corporate bonds		34,757		(939	)		(452	)		48,023		(17,628	)		-		(2,693	)		-			61,068
Securitized products		22,008		(1,605	)		37			40,906		(12,468	)		-		-			-			48,878
Financial assets designated to be measured at FVOCI
Equity securities		249,181		-			(16,430	)		7,200		(2,185	)		-		(1,699	)		66,421			302,488
Liabilities:
Financial liabilities required to be measured at FVPL
Derivative liabilities
Equity contracts		-		121,082			(2,476	)		-		-			-		-			-			118,606
Contingent consideration		50,343		(3,013	)		(260	)		3,101		(24,221	)		-		-			(165	)		25,785
Financial liabilities designated to be measured at FVPL
Redeemable noncontrolling interests		54,028		(610	)		(348	)		6,199		(6,306	)		-		-			-			52,963


	Yen in millions
	Fiscal year ended March 31, 2026
			Total gains (losses) *1
	Beginning balance		Net income *2			Other comprehensive income * 3			Purchases		Sales and settlements			Transfers to Level 3		Transfers out of Level 3 *4			Other *6			Ending balance
Assets:
Financial assets required to be measured at FVPL
Debt securities
Japanese corporate bonds		33		(9	)		-			26		-			-		-			120			170
Foreign corporate bonds		2,849		201			-			3,551		-			-		-			-			6,601
Investment funds		66,863		(2,296	)		399			3,873		(2,302	)		-		-			(49,891	)		16,646
Equity securities		9,678		401			1			7,067		(160	)		-		-			(1,958	)		15,029
Derivative assets
Equity contracts		2,346		(2,119	)		20			-		(247	)		-		-			-			-
Financial assets designated to be measured at FVPL
Debt securities
Foreign corporate bonds		6,042		74			-			-		-			-		(1,808	)		(4,308	)		-
Financial assets required to be measured at FVOCI
Debt securities
Japanese corporate bonds		111,792		4			(17,509	)		-		-			-		-			(94,287	)		-
Foreign corporate bonds		61,068		727			70			29,629		(16,921	)		-		-			(74,573	)		-
Securitized products		48,878		154			19			31,207		(4,816	)		-		(12,650	)		(62,792	)		-
Financial assets designated to be measured at FVOCI
Equity securities		302,488		-			(11,154	)		31,126		(3,005	)		-		-			(503	)		318,952
Liabilities:
Financial liabilities required to be measured at FVPL
Derivative liabilities
Equity contracts		118,606		(67,174	)		4,231			-		-			-		-			-			55,663
Contingent consideration		25,785		(873	)		1,480			1,271		(10,933	)		-		-			(181	)		16,549
Financial liabilities designated to be measured at FVPL
Redeemable noncontrolling interests		52,963		2,865			3,472			20,360		(1,092	)		-		-			-			78,568

*1	For liability items, gains are presented as negative and losses are presented as positive.

Gains (losses) recognized in net income are included in other operating (income) expense, net, financial income, financial expenses and net income (loss) from discontinued operations in the consolidated statements of income. 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, income and loss from the Financial Services business is included in net income (loss) from discontinued operations, which was previously included in financial services revenue in the consolidated statements of income.

Gains (losses) recognized in other comprehensive income are included in changes in equity instruments measured at fair value through other comprehensive income, exchange differences on translating foreign operations and other comprehensive income from discontinued operations in the consolidated statements of comprehensive income. 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, other comprehensive income from the Financial Services business, which was previously included in changes in equity instruments measured at fair value through other comprehensive income and changes in debt instruments measured at fair value through other comprehensive income in the consolidated statements of comprehensive income, is included in other comprehensive income from discontinued operations.

*4	Certain financial assets were transferred from Level 3 because observable market data became available.

*5	This column primarily includes the amount of equity securities designated to be measured at fair value through other comprehensive income due to a change in the scope of consolidation.

*6	This column primarily includes the amount excluded from consolidation as a result of the execution of the Partial Spin-off of the Financial Services business.

Summary of Changes in Unrealized Gains (Losses) Recognized in Net Income for Level 3 Assets and Liabilities

The changes in unrealized gains (losses) recognized in net income for Level 3 assets and liabilities held as of March 31, 2025 and 2026 are as follows:


	Yen in millions
	Fiscal year ended March 31
	2025			2026
Assets:
Financial assets required to be measured at FVPL
Debt securities
Japanese corporate bonds		-			(9	)
Foreign corporate bonds		(39	)		201
Investment funds		(1,801	)		(2,067	)
Equity securities		(840	)		319
Financial assets designated to be measured at FVPL
Debt securities
Foreign corporate bonds		119			-
Financial assets required to be measured at FVOCI
Debt securities
Japanese corporate bonds		9			-
Foreign corporate bonds		(939	)		-
Securitized products		(1,610	)		-
Liabilities:
Financial liabilities required to be measured at FVPL
Derivative liabilities
Equity contracts		(121,082	)		67,174
Contingent consideration		(1,223	)		(524	)
Financial liabilities designated to be measured at FVPL
Redeemable noncontrolling interests		600			(2,865	)

Summary of Equity Instruments Measured at Fair Value Through Other Comprehensive Income

Equity instruments measured at fair value through other comprehensive income as of March 31, 2025 and 2026 comprise the following:


	Yen in millions
	March 31
	2025		2026
Marketable equity instruments		86,339		148,537
Non-marketable equity instruments		302,488		318,952

Total		388,827		467,489

Summary of Significant Marketable Equity Instruments Measured at Fair Value Through Other Comprehensive Income

Significant marketable equity instruments measured at fair value through other comprehensive income as of March 31, 2025 and 2026 are as follows:


	Yen in millions
	March 31
	2025		2026
KADOKAWA Corporation		52,951		62,200
ANYCOLOR Inc.		10,815		9,706
Bandai Namco Holdings Inc.		-		61,872

Summary of Balances of the Non-Marketable Instruments Measured at Fair Value Through Other Comprehensive Income by Major Sector Categories

The balances of the

non-marketable

instruments measured at fair value through other comprehensive income by major sector categories as of March 31, 2025 and 2026 are as follows:


	Yen in millions
	March 31
	2025		2026
Entertainment *1		181,000		171,267
Manufacturing *2		91,099		114,305
Information technology, Communication and Service *3		27,987		29,810

*1	Major investments included Epic Games, Inc.

*2	Major investments included Japan Advanced Semiconductor Manufacturing, Inc. and Nichia Corporation as of March 31, 2025.

Major investments included Japan Advanced Semiconductor Manufacturing, Inc., Rapidus Corporation and Nichia Corporation as of March 31, 2026.

*3	Major investments included Semiconductor Energy Laboratory Co., Ltd.

Summary of Information Relating to Derecognized Equity Instruments Measured at Fair Value Through Other Comprehensive Income by Way of Sale

In order to enhance the efficiency of using assets held effectively, Sony derecognizes equity instruments measured at fair value through other comprehensive income upon the sale of the investment. Information relating to investments derecognized during the fiscal years ended March 31, 2025 and 2026 is as follows:


	Yen in millions
	Fiscal year ended March 31
	2025			2026
Fair value at derecognition		32,275			10,073
Cumulative amount recognized in other comprehensive income, net of tax*		(29,508	)		(3,892	)
Dividend received		-			-

*	The cumulative amount recognized in other comprehensive income, net of tax, was transferred to retained earnings upon derecognition of the equity instruments.

Summary of Fair Values by Fair Value Hierarchy Level of Certain Financial Instruments that are Measured at Amortized Cost

The fair values by fair value hierarchy level of certain financial instruments that are measured at amortized cost as of March 31, 2025 and 2026 are summarized as follows:


	Yen in millions
	March 31, 2025
	Fair value								Carrying amount
	Level 1		Level 2		Level 3		Total		Total
Assets:
Debt securities
Japanese local government bonds		-		11,696		-		11,696		11,626
Japanese corporate bonds		-		24,273		-		24,273		24,916
Foreign corporate bonds		-		937		-		937		935
Securitized products		-		-		439,132		439,132		439,281
Other		-		29,820		14,364		44,184		44,296
Housing loans in the banking business		-		-		3,709,148		3,709,148		3,763,261

Total assets		-		66,726		4,162,644		4,229,370		4,284,315

Liabilities:
Long-term debt including the current portion		-		1,621,264		101,632		1,722,896		1,754,817
Investment contract liabilities		-		60,558		-		60,558		62,772

Total liabilities		-		1,681,822		101,632		1,783,454		1,817,589


	Yen in millions
	March 31, 2026
	Fair value								Carrying amount
	Level 1		Level 2		Level 3		Total		Total
Liabilities:
Long-term debt including the current portion		-		962,660		1,874		964,534		990,803

Total liabilities		-		962,660		1,874		964,534		990,803