Sony 2015 Annual Report Download - page 203

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
19. Restructuring charges
As part of its effort to improve the performance of the various businesses, Sony has undertaken a number of
restructuring initiatives. Sony defines restructuring initiatives as activities initiated by Sony, which are designed
to generate a positive impact on future profitability. These activities include exiting a business or product
category, implementing a headcount reduction program, realignment of its manufacturing sites to low-cost areas,
utilizing the services of third-party original equipment and design manufacturers (OEMs and ODMs), a review of
its development and design structure, and the streamlining of its sales and administrative functions. The
restructuring activities are generally short term in nature and are generally completed within one year of
initiation.
The changes in the accrued restructuring charges for the fiscal years ended March 31, 2014, 2015 and 2016
are as follows:
Yen in millions
Employee
termination
benefits
Non-cash
write-downs and
disposals, net*
Other
associated
costs Total
Balance at March 31, 2013 32,729 — 5,675 38,404
Restructuring costs 41,820 18,991 14,759 75,570
Non-cash charges — (18,991) — (18,991)
Cash payments (46,017) — (7,177) (53,194)
Adjustments 3,312 — 659 3,971
Balance at March 31, 2014 31,844 — 13,916 45,760
Restructuring costs 53,261 17,169 20,259 90,689
Non-cash charges — (17,169) — (17,169)
Cash payments (48,787) — (19,937) (68,724)
Adjustments 403 — (42) 361
Balance at March 31, 2015 36,721 — 14,196 50,917
Restructuring costs 27,401 1,828 7,298 36,527
Non-cash charges — (1,828) — (1,828)
Cash payments (40,261) — (11,232) (51,493)
Adjustments (1,330) — 1,473 143
Balance at March 31, 2016 22,531 — 11,735 34,266
* Significant asset impairments excluded from restructuring charges are described in Note 13.
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