10. |
Purchase commitments, contingent liabilities and other |
Subsidiaries in the Financial Services segment have lines of credit in accordance with loan agreements with their customers.
As of March 31, 2023 and June 30, 2023, the total unused portion of the lines of credit extended under these contracts was 35,831 million yen and 33,553 million yen, respectively.
Purchase commitments as of March 31, 2023 and June 30, 2023 amounted to 1,084,774 million yen and
1,100,887 million yen, respectively. The amount of these purchase commitments covers the purchase consideration for property, plant and equipment, intangible assets, other goods and other services. The major components of these purchase
commitments are as follows:
Certain subsidiaries in the Pictures segment have entered into agreements with creative
talent for the development and production of motion pictures and television programming as well as agreements with third parties to acquire completed motion pictures, or certain rights therein, and to acquire the rights to broadcast certain live
action sporting events. These agreements cover various periods mainly within four years from the end of each period. As of March 31, 2023 and June 30, 2023, these subsidiaries were committed to make payments under such contracts of
125,098 million yen and 106,460 million yen, respectively.
Certain subsidiaries in the Music segment have
entered into contracts with recording artists, songwriters and companies for the future production, distribution and/or licensing of music products. These contracts cover various periods mainly within five years from the end of each period. As of
March 31, 2023 and June 30, 2023, these subsidiaries were committed to make payments of 193,576 million yen and 241,524 million yen, respectively, under such contracts.
Certain subsidiaries in the G&NS segment have entered into long-term contracts for the development, distribution and
publishing of game software. These contracts cover various periods mainly within six years from the end of each period. As of March 31, 2023 and June 30, 2023, these subsidiaries were committed to make payments of 31,298 million yen
and 31,281 million yen, respectively, under such contracts.
In addition to the above, Sony has entered into
purchase contracts for property, plant and equipment and intangible assets. As of March 31, 2023 and June 30, 2023, Sony has committed to make payments of 292,608 million yen and 306,366 million yen, respectively, under such
contracts.
Sony has entered into purchase contracts for materials. As of March 31, 2023 and June 30, 2023,
Sony has committed to make payments of 288,260 million yen and 277,110 million yen, respectively, under such contracts.
Sony Group Corporation and certain of its subsidiaries are defendants or otherwise involved in pending legal and regulatory
proceedings. However, based upon the information currently available, Sony believes that the outcome from such legal and regulatory proceedings would not have a material impact on Sonys results of operations and financial position.
Sony has issued guarantees that contingently require payments to guaranteed parties if certain specified events or conditions
occur. The maximum potential amount of future payments under these guarantees as of March 31, 2023 and June 30, 2023 amounted to 458 million yen and 515 million yen, respectively.
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