Sony 2015 Annual Report Download - page 162

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
For the fiscal year ended March 31, 2016, Sony recorded an out-of-period adjustment to correct an error in
the amount of accruals for certain sales incentives being recorded at a subsidiary. The error began in the fiscal
year ended March 31, 2009 and continued until it was identified by Sony during the fiscal year ended March 31,
2016. The adjustment, which related to the HE&S segment, impacted net sales and increased income before
income taxes in the consolidated statements of income by 8,447 million yen for the fiscal year ended March 31,
2016. Sony determined that the adjustment was not material to the consolidated financial statements for the fiscal
year ended March 31, 2016 or any prior periods.
3. Inventories
Inventories are comprised of the following:
Yen in millions
March 31
2015 2016
Finished products 468,408 448,273
Work in process 96,700 130,383
Raw materials, purchased components and supplies 100,324 104,490
Inventories 665,432 683,146
4. Film costs
Film costs are comprised of the following:
Yen in millions
March 31
2015 2016
Motion picture productions:
Released 89,993 75,218
Completed and not released 4,498 2,304
In production and development 106,240 95,268
Television productions:
Released 78,510 88,538
In production and development 2,952 14,410
Broadcasting rights 69,223 62,589
Less: current portion of broadcasting rights included in inventories (46,184) (37,099)
Film costs 305,232 301,228
Sony estimates that approximately 92% of the unamortized film costs of released motion picture and
television productions at March 31, 2016 will be amortized within the next three years. Approximately
117 billion yen of completed film costs are expected to be amortized during the next
twelve months. Approximately 145 billion yen of accrued participation liabilities included in accounts payable,
other and accrued expenses are expected to be paid during the next twelve months.
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