Sony 2015 Annual Report Download - page 220

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
In addition to the above, Sony issues contractual product warranties under which it generally guarantees the
performance of products delivered and services rendered for a certain period or term. The changes in product
warranty liability for the fiscal years ended March 31, 2014, 2015 and 2016 are as follows:
Yen in millions
Fiscal year ended March 31
2014 2015 2016
Balance at beginning of the fiscal year 66,776 79,718 75,129
Additional liabilities for warranties 83,959 87,902 83,227
Settlements (in cash or in kind) (72,230) (78,356) (81,462)
Changes in estimate for pre-existing warranty reserve (6,070) (13,731) (6,440)
Translation adjustment 7,283 (404) (3,511)
Balance at end of the fiscal year 79,718 75,129 66,943
28. Business segment information
The reportable segments presented below are the segments of Sony for which separate financial information
is available and for which operating profit or loss amounts are evaluated regularly by the chief operating decision
maker (“CODM”) in deciding how to allocate resources and in assessing performance. The CODM does not
evaluate segments using discrete asset information. Sony’s CODM is its Chief Executive Officer and President.
Sony realigned its business segments for the fiscal year ended March 31, 2016 to reflect modifications to its
organizational structure, primarily repositioning certain operations, which were in All Other and the Devices
segment. In connection with this realignment, the operations of Sony’s disc manufacturing business in Japan,
which were included in All Other are now included in the Music segment and the operations of So-net
Corporation and its subsidiaries, which were included in All Other are now included in the MC segment. Certain
operations regarding pre-installed automotive audio products which were included in the Devices segment are
now included in the HE&S segment. In addition, the medical business previously included in All Other has been
integrated into the IP&S segment as a result of a change in the Corporate Executive Officer in charge of the
medical business. In connection with these realignments, the sales and operating revenue and operating income
(loss) of each segment for the comparable period have been reclassified to conform to the current presentation.
The MC segment includes the manufacture and sale of mobile phones and an Internet-related service
business. The G&NS segment includes the manufacture and sales of home gaming products, network services
business and production and sales of software. The IP&S segment includes Digital Imaging Products,
Professional Solutions and Medical business. The HE&S segment includes Televisions, and Audio and Video.
The Devices segment includes Semiconductors and Components. The Pictures segment includes Motion Pictures,
Television Productions and Media Networks. The Music segment includes Recorded Music, Music Publishing
and Visual Media and Platform. The Financial Services segment primarily represents individual life insurance
and non-life insurance businesses in the Japanese market and a bank business in Japan. All Other consists of
various operating activities, including, the disc overseas manufacturing business and the PC business. Sony’s
products and services are generally unique to a single operating segment.
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