Sony 2015 Annual Report Download - page 205

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Yen in millions
Fiscal year ended March 31, 2016
Employee
termination
benefits
Other
associated
costs*
Total net
restructuring
charges
Depreciation
associated with
restructured
assets Total
Mobile Communications 17,259 3,669 20,928 710 21,638
Game & Network Services 15 120 135 — 135
Imaging Products & Solutions 78 126 204 — 204
Home Entertainment & Sound 1,181 26 1,207 — 1,207
Devices (10) (81) (91) — (91)
Pictures 1,594 7 1,601 5 1,606
Music 1,501 367 1,868 — 1,868
Financial Services — — — — —
All Other and Corporate 5,783 4,892 10,675 1,017 11,692
Total 27,401 9,126 36,527 1,732 38,259
* Other associated costs includes non-cash write-downs and disposals, net
Depreciation associated with restructured assets as used in the context of the disclosures regarding
restructuring activities refers to the increase in depreciation expense caused by revising the useful life and the
salvage value of depreciable fixed assets under an approved restructuring plan. Any impairment of the assets is
recognized immediately in the period it is identified.
Retirement programs
Sony has undergone several headcount reduction programs to further reduce operating costs primarily in an
effort to improve the performance of certain segments related to the Electronics business and reduce cost at the
headquarters function. Through measures including the realignment of its manufacturing sites, a review of its
development and design structure, and the streamlining of its sales and administrative functions, Sony has
continued to implement a company-wide (including headquarters) rationalization. Sony intends to reallocate and
optimize its workforce through programs including work reassignments and outplacements. The employee
termination benefits costs in the above table are included in selling, general and administrative in the
consolidated statements of income.
During the fiscal year ended March 31, 2014, Sony announced its exit from the PC business resulting in a
reduction in the scale of sales companies (refer to All Other and Corporate in this note), plans to operate the TV
business in the HE&S segment as a wholly-owned subsidiary, and additional plans to optimize the sales and
headquarters functions that indirectly support the Electronics businesses.
During the fiscal year ended March 31, 2015, Sony substantially completed the activities for optimizing the
functions of sales companies and headquarters described above, other than those for the Mobile Communication
segment. In the third quarter of the fiscal year ended March 31, 2015, Sony began restructuring plans regarding
the Mobile Communication segment to reduce headcount by streamlining business operations, including closure
and consolidation of manufacturing sites, and the consolidation of headquarters and administrative functions.
During the fiscal year ended March 31, 2016, the restructuring plans regarding the Mobile Communication
segment progressed as planned by streamlining business operations, including closure and consolidation of
manufacturing sites, and the consolidation of headquarters and administrative functions described above.
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