Sony Corp. (SNE) | Property, Plant and Equipment

Property, Plant and Equipment Accounting Policy

Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed on the declining-balance method for Sony Corporation and its Japanese subsidiaries, except for certain semiconductor manufacturing facilities and buildings whose depreciation is computed on the straight-line method over the estimated useful life of the assets. Depreciation of property, plant and equipment for foreign subsidiaries is also computed on the straight-line method. Useful lives for depreciation range from two to 50 years for buildings and from two to 10 years for machinery and equipment. Significant renewals and additions are capitalized at cost. Maintenance and repairs, and minor renewals and betterments are charged to income as incurred.

Source: Sony Corp., Annual Report

Property, Plant and Equipment Disclosure

Sony Corp., Statement of Financial Position, Property, Plant and Equipment

USD $ in millions, translated from JPY ￥

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Land	1,696	1,755	1,645	1,585	1,580	1,419
Buildings	9,949	10,446	9,642	9,277	9,014	8,290
Machinery and equipment	23,812	24,257	24,022	23,861	24,783	21,002
Construction in progress	434	640	766	1,018	556	549
Property, plant and equipment, gross	35,892	37,099	36,075	35,741	35,933	31,261
Accumulated depreciation	(24,564)	(25,976)	(25,241)	(23,770)	(23,523)	(19,219)
Property, plant and equipment, net	11,327	11,123	10,834	11,971	12,410	12,042

Source: Based on data from Sony Corp. Annual Reports

Item	Description	The company
Land	Carrying amount as of the balance sheet date of real estate held for productive use. This excludes land held for sale.	Sony Corp.'s land increased from 2010 to 2011 but then slightly declined from 2011 to 2012 not reaching 2010 level.
Buildings	Carrying amount as of the balance sheet date of long-lived, depreciable assets that include building structures held for productive use including any addition, improvement, or renovation to the structure, such as interior masonry, interior flooring, electrical, and plumbing.	Sony Corp.'s buildings increased from 2010 to 2011 but then slightly declined from 2011 to 2012 not reaching 2010 level.
Machinery and equipment	Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services.	Sony Corp.'s machinery and equipment increased from 2010 to 2011 but then declined significantly from 2011 to 2012.
Construction in progress	Carrying amount at the balance sheet date of long-lived asset under construction that include construction costs to date on capital projects that have not been completed and assets being constructed that are not ready to be placed into service.	Sony Corp.'s construction in progress declined from 2010 to 2011 and from 2011 to 2012.
Property, plant and equipment, gross	Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation.	Sony Corp.'s property, plant and equipment, gross increased from 2010 to 2011 but then declined significantly from 2011 to 2012.
Property, plant and equipment, net	Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment.	Sony Corp.'s property, plant and equipment, net increased from 2010 to 2011 and from 2011 to 2012.

Property, Plant and Equipment Ratios (Summary)

Sony Corp., Property, Plant and Equipment Ratios

		Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
	Average age	71.83%	73.50%	73.31%	69.59%	68.47%	64.40%

Ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient.	Sony Corp.'s average age of depreciable property, plant and equipment deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.

Average Age

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Accumulated depreciation	24,564	25,976	25,241	23,770	23,523	19,219
Property, plant and equipment, gross	35,892	37,099	36,075	35,741	35,933	31,261
Land	1,696	1,755	1,645	1,585	1,580	1,419
Ratio
Average age¹	71.83%	73.50%	73.31%	69.59%	68.47%	64.40%

2012 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 24,564 ÷ (35,892 – 1,696) = 71.83%

Ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient.	Sony Corp.'s average age of depreciable property, plant and equipment deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.