Sony 2015 Annual Report Download - page 58

All Other
Fiscal year ended March 31, 2016 compared to fiscal year ended March 31, 2015:
Sales for the fiscal year ended March 31, 2016 decreased 13.8 percent year-on-year to 333.2 billion yen.
This significant decrease in sales was primarily due to the recording of sales in the previous fiscal year from the
PC business, which was sold in July 2014.
Operating income of 2.0 billion yen was recorded, compared to an operating loss of 95.0 billion yen in the
previous fiscal year. This significant improvement was primarily due to a decrease in PC exit costs, including
restructuring charges and after-sales service expenses, as well as the absence in the fiscal year ended March 31,
2016 of sales company fixed costs charged to the PC business in the previous fiscal year, which were allocated
based on the prior year results.
Fiscal year ended March 31, 2015 compared to fiscal year ended March 31, 2014:
Sales for the fiscal year ended March 31, 2015 decreased 49.2 percent year-on-year, to 386.6 billion yen.
This significant decrease in sales was primarily due to Sony’s exit from the PC business.
Operating loss for the fiscal year ended March 31, 2015 decreased 25.3 billion yen year-on-year to
95.0 billion yen. This decrease was primarily due to a decrease in loss from the PC business in the fiscal year
ended March 31, 2015 partially offset by a gain of 12.8 billion yen from the sale of certain shares of M3 recorded
in the fiscal year ended March 31, 2014. In the fiscal year ended March 31, 2014, a 25.6 billion yen impairment
charge was recorded, related to long-lived assets in the disc manufacturing business outside of Japan and the U.S.
and goodwill across the entire disc manufacturing business.
Restructuring
In a highly competitive landscape, Sony has made significant efforts to revitalize its Electronics businesses
and has completed several large-scale restructuring efforts. Due to these restructuring efforts at headquarters and
at the sales companies, Sony experienced fixed cost reductions of more than 100 billion yen in the fiscal year
ended March 31, 2016 compared with the fiscal year ended March 31, 2014. Additionally, in September 2014
and February 2015, Sony developed and announced restructuring plans in the MC segment. These initiatives are
expected to result in reductions of more than 90 billion yen in annual operating expenses such as research and
development expenses and marketing costs, beginning in the fiscal year ending March 31, 2017, compared to the
fiscal year ended March 31, 2015. Although these large-scale restructuring efforts have been completed, Sony
believes the competitive environment will continue to be difficult, and therefore plans to be vigilant with respect
to the scale of its businesses and to changes in the environment. Sony will continue to evaluate the cost and profit
structure of its businesses and continue to take action to reduce cost where Sony believes appropriate.
Fiscal year ended March 31, 2016 compared to fiscal year ended March 31, 2015:
In the fiscal year ended March 31, 2016, Sony recorded restructuring charges of 38.3 billion yen, which
included 1.7 billion yen of non-cash charges related to depreciation associated with restructured assets, compared
to 98.0 billion yen of restructuring charges recorded in the fiscal year ended March 31, 2015. There were
7.3 billion yen of non-cash charges related to depreciation associated with restructured assets in the fiscal year
ended March 31, 2015. Restructuring charges decreased by 59.8 billion yen or 61.0 percent year-on-year in the
fiscal year ended March 31, 2016. Of the total 38.3 billion yen in restructuring charges incurred in the fiscal year
ended March 31, 2016, 27.4 billion yen were personnel related costs, primarily included in SGA expenses in the
consolidated statements of income. These personnel-related costs decreased 48.6 percent year-on-year.
Restructuring charges for the fiscal year ended March 31, 2016 were related to restructuring initiatives
primarily associated with the MC segment. Restructuring charges for the fiscal year ended March 31, 2015 were
related to restructuring initiatives primarily associated with the Electronics businesses and Sony’s headquarters,
as mentioned above.
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