Sony 2015 Annual Report Download - page 172

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
The changes in the carrying amount of goodwill by segment for the fiscal years ended March 31, 2015 and
2016 are as follows:
Yen in millions
Mobile
Communications
Game &
Network
Services
Imaging
Products &
Solutions
Home
Entertainment
& Sound Devices Pictures Music
Financial
Services
All
Other Total
Balance, March 31, 2014:
Goodwill — gross 183,464 150,572 7,202 5,320 37,400 187,307 123,086 3,020 24,360 721,731
Accumulated impairments — — (300) (5,320) — — (306) (706) (23,296) (29,928)
Goodwill 183,464 150,572 6,902 — 37,400 187,307 122,780 2,314 1,064 691,803
Increase (decrease) due to:
Acquisitions*1 — — — — — 12,626 — — — 12,626
Sales and dispositions — (617) — — — (54) (4) — — (675)
Impairments (176,045) — — — — — — — (1,090) (177,135)
Translation adjustments (4,134) 4,444 (16) — 362 24,357 9,593 — 39 34,645
Other 1 — — — — 3 — — (13) (9)
Balance, March 31, 2015:
Goodwill — gross 179,331 154,399 7,186 5,320 37,762 224,239 132,675 3,020 24,386 768,318
Accumulated impairments (176,045) — (300) (5,320) — — (306) (706) (24,386) (207,063)
Goodwill 3,286 154,399 6,886 — 37,762 224,239 132,369 2,314 — 561,255
Increase (decrease) due to:
Acquisitions*2 — — 1,589 — 20,634 12,082 38,487 — — 72,792
Sales and dispositions — — — — — — — — — —
Impairments — — — — — — — — — —
Translation adjustments — (2,106) (138) — (1,625) (14,804) (9,084) — — (27,757)
Other — — — — — — — — — —
Balance, March 31, 2016:
Goodwill — gross 179,331 152,293 8,637 5,320 56,771 221,517 162,078 3,020 24,386 813,353
Accumulated impairments (176,045) — (300) (5,320) — — (306) (706) (24,386) (207,063)
Goodwill 3,286 152,293 8,337 — 56,771 221,517 161,772 2,314 — 606,290
Sony realigned its business segments during the fiscal year ended March 31, 2016. In connection with these
realignments, the operations of So-net Corporation and its subsidiaries (“So-net”), which were included in All
Other, are now included in the MC segment and the medical business, which was included in All Other, is now
included in the IP&S segment. As part of these realignments, the carrying amounts of associated goodwill for
So-net and the medical business have been reclassified for the fiscal years ended March 31, 2014 and March 31,
2015. Refer to Note 28.
*1 Acquisitions in the Pictures segment for the fiscal year ended March 31, 2015 mainly relate to the CSC
Media Group Ltd. (“CSC Media Group”) acquisition. Refer to Note 24.
*2 Acquisitions for the fiscal year ended March 31, 2016 relate mainly to the Altair Semiconductor Ltd.
(“Altair”) acquisition in the Devices segment, and the Orchard Media, Inc. (“The Orchard”) acquisition in
the Music segment. Refer to Note 24.
Impairment of goodwill related to mobile communications business -
During the fiscal year ended March 31, 2015, Sony recorded an impairment charge of 176,045 million yen
in the MC segment. The goodwill impairment reflects a revision in the strategy for the MC business to
concentrate on its premium lineup and reduce the number of models in the mid-range lineup as well as
concentrating on certain selected markets due to continued increasingly competitive markets in various
geographical areas, primarily resulting from rapid growth by Chinese smartphone competitors. The impairment
charge is included in other operating expenses, net in the consolidated statements of income, and is recorded
entirely within the MC segment. Refer to Note 13.
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