Edgar Filing: SONY CORP

a50972151.htm

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of October 2014

Commission File Number: 001-06439

SONY CORPORATION

(Translation of registrant's name into English)

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN

(Address of principal executive offices)

The registrant files annual reports under cover of Form 20-F.

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,

Form 20-F X

Form 40-F __

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, Yes No X

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-______

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SONY CORPORATION
	(Registrant)


	By: /s/ Kenichiro Yoshida
	(Signature)
	Kenichiro Yoshida
	Executive Vice President and
	Chief Financial Officer

Date: October 31, 2014

List of materials

Documents attached hereto:

i) Press release announcing Consolidated Financial Results for the Second Quarter Ended September 30, 2014

	1-7-1 Konan, Minato-ku Tokyo 108-0075 Japan
News & Information

No. 14-109E

3:00 P.M. JST, October 31, 2014

Consolidated Financial Results

for the Second Quarter Ended September 30, 2014

Tokyo, October 31, 2014 -- Sony Corporation today announced its consolidated financial results for the second quarter ended September 30, 2014 (July 1, 2014 to September 30, 2014).

	(Billions of yen, millions of U.S. dollars, except per share amounts)
	Second Quarter ended September 30
	2013			2014			Change in yen				2014*
Sales and operating revenue	¥	1,774.2		¥	1,901.5			+7.2	%	$	17,445
Operating income (loss)		13.9			(85.6	)		-			(785	)
Income (loss) before income taxes		5.1			(90.0	)		-			(825	)
Net (loss) attributable to Sony Corporation’s stockholders		(19.6	)		(136.0	)		-			(1,247	)
Net loss attributable to Sony Corporation’s stockholders per share of common stock:
- Basic	¥	(19.25	)	¥	(124.32	)		-		$	(1.14	)
- Diluted		(19.25	)		(124.32	)		-			(1.14	)

*	U.S. dollar amounts have been translated from yen, for convenience only, at the rate of 109 yen = 1 U.S. dollar, the approximate Tokyo foreign exchange market rate as of September 30, 2014.

All amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. (“U.S. GAAP”).

Sony realigned its business segments from the first quarter of the fiscal year ending March 31, 2015 to reflect modifications to its organizational structure as of April 1, 2014, primarily repositioning the operations of the previously reported Game and Mobile Products & Communications (“MP&C”) segments. In connection with this realignment, the previously-reported operations of the network business which were included in All Other have been integrated with the previously-reported Game segment and are now reported as the Game & Network Services (“G&NS”) segment. The previously reported Mobile Communications category which was included in the MP&C segment has been reclassified as the newly established Mobile Communications (“MC”) segment, while the other categories in the previously reported MP&C segment are now included in All Other. This includes the reclassification of the PC business into All Other.

In addition, as of the first quarter of the fiscal year ending March 31, 2015, the power supply business, which was previously included in the Devices segment, has been integrated into All Other to reflect modifications Sony made to its organizational structure as of June 1, 2014.

In connection with these realignments, the sales and operating revenue (“sales”) and operating income (loss) of each segment in the fiscal year ended March 31, 2014 have been reclassified to conform to the presentation of the fiscal year ending March 31, 2015.

Certain figures for the fiscal year ended March 31, 2014 related to the Financial Services segment have been revised from the versions previously disclosed. For further details, please see Note 8 on page F-19.

The average foreign exchange rates during the quarters ended September 30, 2013 and 2014 are presented below.

	Second Quarter ended September 30
	2013		2014		Change
The average rate of yen
1 U.S. dollar	¥	98.9	¥	103.9		4.8	%	(yen depreciation)
1 Euro		131.1		137.8		4.9		(yen depreciation)

Consolidated Results for the Second Quarter Ended September 30, 2014

Sales were 1,901.5 billion yen (17,445 million U.S. dollars), an increase of 7.2% compared to the same quarter of the previous fiscal year (“year-on-year”). This increase was primarily due to a significant increase in G&NS segment sales, reflecting the contribution of the PlayStation 4 (“PS4”), a significant increase in Devices segment sales primarily due to the strong performance of image sensors, as well as the favorable impact of foreign exchange rates. This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business. On a constant currency basis, sales increased 3% year-on-year. For further details about sales on a constant currency basis, see Note on page 11.

An operating loss of 85.6 billion yen (785 million U.S. dollars) was recorded, compared to operating income of 13.9 billion yen in the same quarter of the previous fiscal year. This significant detrioration was primarily due to the 176.0 billion yen (1,615 million U.S. dollars) impairment of goodwill recorded in the MC segment. As announced on September 17, 2014, Sony performed its interim goodwill impairment test during the current quarter and concluded that the fair value of the MC business has decreased. As a result, an impairment of goodwill of 176.0 billion yen was recorded. This deterioration in the current quarter’s operating results was partially offset by a significant improvement in the operating results of the G&NS, Imaging Products & Solutions (“IP&S”), Home Entertainment & Sound (“HE&S”), Devices and Pictures segments.

Operating loss in the current quarter includes a net benefit of 4.2 billion yen (39 million U.S. dollars) from insurance recoveries related to damages and losses incurred from the floods in Thailand in the fiscal year ended March 31, 2012 (the “Floods”). In the same quarter of the previous fiscal year, a gain of 12.8 billion yen from the sale of certain shares of M3, Inc. (“M3”) and a net benefit of 4.8 billion yen from the above-mentioned insurance recoveries were recorded.

During the current quarter, restructuring charges, net, increased 1.6 billion yen year-on-year to 9.4 billion yen (86 million U.S. dollars). PC exit costs of 7.7 billion yen (70 million U.S. dollars) were recorded in the current quarter, which includes 4.1 billion yen (38 million U.S. dollars) of restructuring charges. For further details about PC exit costs, see page 7.

Equity in net income of affiliated companies, recorded within operating loss, was 0.6 billion yen (6 million U.S. dollars), compared to a loss of 2.0 billion yen in the same quarter of the previous fiscal year. This improvement was mainly due to the improvement of equity in net income (loss) for EMI Music Publishing.

The net effect of other income and expenses was an expense of 4.4 billion yen (40 million U.S. dollars), an improvement of 4.4 billion yen year-on-year. This was primarily due to a decrease in net foreign exchange losses.

A loss before income taxes of 90.0 billion yen (825 million U.S. dollars) was recorded, compared to income of 5.1 billion yen in the same quarter of the previous fiscal year.

Income taxes: During the current quarter, Sony recorded 30.1 billion yen (276 million U.S. dollars) of income tax expense. Income tax expense was recorded despite the net loss before income taxes primarily due to the nondeductible goodwill impairment recorded during the current quarter.

Net loss attributable to Sony Corporation’s stockholders, which excludes net income attributable to noncontrolling interests, increased 116.3 billion yen year-on-year to 136.0 billion yen (1,247 million U.S. dollars).

Operating Performance Highlights by Business Segment

“Sales and operating revenue” in each business segment represents sales and operating revenue recorded before intersegment transactions are eliminated. “Operating income (loss)” in each business segment represents operating income (loss) reported before intersegment transactions are eliminated and excludes unallocated corporate expenses.

Mobile Communications (MC)

	(Billions of yen, millions of U.S. dollars)

	Second Quarter ended September 30

	2013		2014			Change in yen			2014
Sales and operating revenue	¥	304.6	¥	308.4			+1.2	%	$	2,829

Operating income (loss)		8.8		(172.0	)		-			(1,578	)

Sales increased 1.2% year-on-year (a 4% decrease on a constant currency basis) to 308.4 billion yen (2,829 million U.S. dollars), primarily due to the favorable impact of foreign exchange rates, partially offset by a decrease in sales mainly in Japan.

Operating loss of 172.0 billion yen (1,578 million U.S. dollars) was recorded, compared to operating income of 8.8 billion yen in the same quarter of the previous fiscal year. This deterioration was primarily due to the above-mentioned 176.0 billion yen impairment charge of goodwill recorded in this segment. In the current quarter, marketing expenses and research and development expenses increased year-on-year in order to expand sales channels.

Game & Network Services (G&NS)

	(Billions of yen, millions of U.S. dollars)

	Second Quarter ended September 30

	2013			2014		Change in yen			2014
Sales and operating revenue	¥	169.0		¥	309.5		+83.2	%	$	2,839

Operating income (loss)		(4.2	)		21.8		-			200

Sales increased 83.2% year-on-year (a 74% increase on a constant currency basis) to 309.5 billion yen (2,839 million U.S. dollars). This significant increase was primarily due to the contribution from PS4 hardware sales, a significant increase in network services revenue related to the introduction of the PS4 and the contribution from PS4 software sales, partially offset by a decrease in PlayStation®3 (“PS3”) hardware and PS3 software sales. Sales to external customers increased 97.0% year-on-year.

Operating income of 21.8 billion yen (200 million U.S. dollars) was recorded, compared to an operating loss of 4.2 billion yen in the same quarter of the previous fiscal year. This significant improvement was primarily due to the impact of the above-mentioned increase in sales related to the introduction of the PS4, partially offset by the impact of the above-mentioned decrease in PS3 software sales.

Imaging Products & Solutions (IP&S)

	(Billions of yen, millions of U.S. dollars)

	Second Quarter ended September 30

	2013			2014		Change in yen			2014
Sales and operating revenue	¥	175.5		¥	178.6		+1.8	%	$	1,639

Operating income (loss)		(2.3	)		20.1		-			184

The IP&S segment includes the Digital Imaging Products and Professional Solutions categories. Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income of the IP&S segment of the comparable prior period have been reclassified to conform to the current presentation.

Sales increased 1.8% year-on-year (a 2% decrease on a constant currency basis) to 178.6 billion yen (1,639 million U.S. dollars). Sales were essentially flat year-on-year primarily due to the favorable impact of foreign exchange rates and an improvement in the product mix of digital cameras* reflecting a shift to high value-added models, partially offset by a significant decrease in unit sales of digital cameras.

Operating income of 20.1 billion yen (184 million U.S. dollars) was recorded, compared to an operating loss of 2.3 billion yen in the same quarter of the previous fiscal year. This significant improvement was mainly due to a reduction in selling, general and administrative expenses, the above-mentioned improvement in product mix reflecting a shift to high value-added models and the favorable impact of exchange rates.

* Digital cameras includes compact digital cameras and interchangeable single-lens cameras.

Home Entertainment & Sound (HE&S)

	(Billions of yen, millions of U.S. dollars)

	Second Quarter ended September 30

	2013			2014		Change in yen			2014
Sales and operating revenue	¥	263.8		¥	282.4		+7.0	%	$	2,590

Operating income (loss)		(12.1	)		8.0		-			73

The HE&S segment includes the Televisions and Audio and Video categories. Televisions includes LCD televisions; Audio and Video includes Blu-ray DiscTM players and recorders, home audio, headphones and memory-based portable audio devices.

Sales increased 7.0% year-on-year (a 2% increase on a constant currency basis) to 282.4 billion yen (2,590 million U.S. dollars). This increase was primarily due to a significant increase in sales of televisions and the favorable impact of foreign exchange rates. Unit sales of LCD televisions increased significantly in Europe, North America, and Asia-Pacific, partially offset by a significant decrease in unit sales in Latin America. Audio and Video category sales decreased mainly due to a decrease in sales in Latin America reflecting adverse market conditions.

Operating income of 8.0 billion yen (73 million U.S. dollars) was recorded, compared to an operating loss of 12.1 billion yen in the same quarter of the previous fiscal year. This improvement was primarily due to cost reductions and an improvement in the product mix reflecting the shift to high value-added models, partially offset by a decrease in the average selling price of LCD televisions.

In Televisions, sales increased 14.7% year-on-year to 199.7 billion yen (1,832 million U.S. dollars). This significant increase was primarily due to the above-mentioned significant increase in unit sales of LCD televisions, and the favorable impact of foreign exchange rates. Operating income* of 4.9 billion yen (45 million U.S. dollars) was recorded, compared to an operating loss of 9.3 billion yen in the same quarter of the previous fiscal year. This improvement was primarily due to cost reductions and an improvement in the product mix of LCD televisions reflecting a shift to high value-added models, partially offset by a decrease in the average selling price.

*	The operating income (loss) in Televisions excludes restructuring charges, which are included in the overall segment results and are not allocated to product categories.

Devices

		(Billions of yen, millions of U.S. dollars)

		Second Quarter ended September 30

		2013		2014	Change in yen		2014
Sales and operating revenue	¥	201.3	¥	247.7	+23.1	%	$	2,273

Operating income		11.9		29.6	+149.0			271

The Devices segment includes the Semiconductors and Components categories. Semiconductors includes image sensors; Components includes batteries, recording media and data recording systems. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income of the Devices segment of the comparable prior period have been reclassified to conform to the current presentation.

Sales increased 23.1% year-on-year (an 18% increase on a constant currency basis) to 247.7 billion yen (2,273 million U.S. dollars). This significant increase was primarily due to a significant increase in sales of image sensors reflecting higher demand for mobile products, a significant increase in sales of camera modules, as well as the favorable impact of foreign exchange rates. Sales to external customers increased 25.1% year-on-year.

Operating income increased 17.7 billion yen year-on-year to 29.6 billion yen (271 million U.S. dollars). This significant increase was primarily due to the above-mentioned increase in sales of image sensors, the favorable impact of foreign exchange rates and an improvement in the results of the battery business.

* * * * *

Total inventory of the five Electronics* segments above as of September 30, 2014 was 823.0 billion yen (7,550 million U.S. dollars), an increase of 8.8 billion yen, or 1.1% year-on-year. Inventory increased by 141.6 billion yen, or 21.0% compared with the level as of June 30, 2014.

* The term “Electronics” refers to the sum of the MC, G&NS, IP&S, HE&S and Devices segments.

In connection with the realignment made from the first quarter of the fiscal year ending March 31, 2015, total inventory of the five Electronics segments as of September 30, 2013 has been reclassified to conform to the presentation for the fiscal year ending March 31, 2015. For further details, please see page 1.

* * * * *

Pictures

	(Billions of yen, millions of U.S. dollars)

	Second Quarter ended September 30

	2013			2014			Change in yen			2014
Sales and operating revenue	¥	177.8		¥	182.2			+2.4	%	$	1,671

Operating loss		(17.8	)		(1.0	)		-			(10	)

The Pictures segment is comprised of the Motion Pictures, Television Productions, and Media Networks categories. Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks.

The results presented in Pictures are a yen-translation of the results of Sony Pictures Entertainment (“SPE”), a U.S.-based operation that aggregates the results of its worldwide subsidiaries on a U.S. dollar basis. Management analyzes the results of SPE in U.S. dollars, so discussion of certain portions of its results is specified as being on “a U.S. dollar basis.”

Sales increased 2.4% year-on-year (a 3% decrease on a constant currency (U.S. dollar) basis) to 182.2 billion yen (1,671 million U.S. dollars) primarily due to the favorable impact of the depreciation of the yen against the U.S. dollar. The decrease on a U.S. dollar basis was primarily due to a decrease in sales for Motion Pictures, reflecting lower theatrical revenues, partially offset by higher home entertainment and television licensing revenues. Theatrical revenues decreased as the same quarter of the previous fiscal year benefited from a higher number of theatrical releases. Home entertainment and television licensing revenues were higher as the current year benefited from the home entertainment releases of The Amazing Spider-Man 2 and Heaven is for Real and from the television licensing sales of Men In Black 3 and The Amazing Spider-Man.

Operating loss decreased 16.7 billion yen year-on-year to 1.0 billion yen (10 million U.S. dollars) as the same quarter of the previous fiscal year included higher marketing expenses as a result of a higher number of theatrical releases as well as the underperformance of White House Down.

Music

	(Billions of yen, millions of U.S. dollars)

	Second Quarter ended September 30

	2013		2014		Change in yen			2014
Sales and operating revenue	¥	115.0	¥	116.8		+1.5	%	$	1,071

Operating income		9.7		11.8		+21.9			108

The Music segment is comprised of the Recorded Music, Music Publishing and Visual Media and Platform categories. Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

The results presented in Music include the yen-translated results of Sony Music Entertainment (“SME”), a U.S.-based operation which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis, the results of Sony Music Entertainment (Japan) Inc., a Japan-based music company which aggregates its results in yen, and the yen-translated consolidated results of Sony/ATV Music Publishing LLC (“Sony/ATV”), a 50% owned U.S.-based joint venture in the music publishing business which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis.

Sales increased 1.5 % year-on-year (a 2% decrease on a constant currency basis) to 116.8 billion yen (1,071 million U.S. dollars). The decrease in sales on a constant currency basis is primarily due to lower Music Publishing and Recorded Music sales, partially offset by higher Visual Media and Platform sales. On a constant currency basis, sales of Music Publishing decreased primarily due to a decrease in revenue outside of the U.S. Recorded Music sales decreased slightly as the worldwide decline in physical and digital download sales were partially offset by higher digital streaming revenues. Visual Media and Platform sales increased mainly due to higher sales of animation products. Best-selling titles included Barbra Streisand’s Partners, Chris Brown’s X and Sia’s 1000 Forms of Fear.

Operating income increased 2.1 billion yen year-on-year to 11.8 billion yen (108 million U.S. dollars). This increase was primarily due to an improvement in equity in net income (loss) from EMI Music Publishing and a reduction in selling, general and administrative expenses.

Financial Services

	(Billions of yen, millions of U.S. dollars)

	Second quarter ended September 30

		2013		2014	Change in yen			2014
Financial services revenue	¥	243.7	¥	269.6	+10.6	%	$	2,473

Operating income		38.4		47.7	+24.2			437

The Financial Services segment results include Sony Financial Holdings Inc. (“SFH”) and SFH’s consolidated subsidiaries such as Sony Life Insurance Co., Ltd. (“Sony Life”), Sony Assurance Inc. and Sony Bank Inc. (“Sony Bank”). The results of Sony Life discussed in the Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

Certain figures for the fiscal year ended March 31, 2014 have been revised from the versions previously disclosed. For details, please see Note 8 on page F-19.

Financial services revenue increased 10.6% year-on-year to 269.6 billion yen (2,473 million U.S. dollars) primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 12.1% year-on-year to 242.5 billion yen (2,225 million U.S. dollars), mainly due to an improvement in investment performance in the separate account resulting from a larger rise in the Japanese stock market compared to the same quarter of the previous fiscal year, as well as an increase in insurance premium revenue reflecting an increase in policy amount in force.

Operating income increased 9.3 billion yen year-on-year to 47.7 billion yen (437 million U.S. dollars). This increase was mainly due to an increase in operating income at Sony Life. Operating income at Sony Life increased 9.3 billion yen year-on-year to 45.7 billion yen (419 million U.S. dollars) primarily due to an improvement in investment performance in the general account.

All Other

	(Billions of yen, millions of U.S. dollars)

	Second quarter ended September 30

	2013			2014			Change in yen			2014
Sales and operating revenue	¥	212.0		¥	108.6			-48.8	%	$	997

Operating loss		(2.5	)		(18.2	)		-			(165	)

All Other includes the PC business. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating loss of All Other of the comparable prior period have been reclassified to conform to the current presentation.

Sales decreased 48.8% year-on-year (a 51% decrease on a constant currency basis) to 108.6 billion yen (997 million U.S. dollars). This decrease was primarily due to a significant decrease year-on-year in unit sales of PCs reflecting Sony’s exit from the PC business.

Operating loss increased 15.7 billion yen year-on-year to 18.2 billion yen (165 million U.S. dollars). This deterioration was primarily due to a gain of 12.8 billion yen from the sale of certain shares of M3 recorded in the same quarter of the previous fiscal year and the recording of PC exit costs in the current quarter. The following table provides PC exit costs and the total PC operating loss.

		(Billions of yen, millions of U.S. dollars)
		Second quarter ended September 30, 2014
		All Other			Corporate and Elimination			Consolidated Total			Year-on-year change			Consolidated Total
(I)	Restructuring charges	¥	3.3		¥	0.9		¥	4.1		¥	+4.1		$	38
(II)	After-sales service expenses etc.		3.5			-			3.5			+3.5			33
PC exit costs (I+II)			6.8			0.9			7.7			+7.7			70
Operating loss excluding exit costs			(5.1	)		-			(5.1	)		+2.3			(47	)
Total PC operating loss		¥	(11.9	)	¥	(0.9	)	¥	(12.8	)	¥	(5.4	)	$	(117	)

* * * * *

Consolidated Results for the Six Months ended September 30, 2014

For Consolidated Statements of Income and Business Segment Information for the six months ended September 30, 2014 and 2013, please refer to pages F-3 and F-7 respectively.

Sales for the six months ended September 30, 2014 (“the current six months”) increased 6.5% year-on-year to 3,711.4 billion yen (34,050 million U.S. dollars). This increase was primarily due to the significant increase in sales in the G&NS segment and the favorable impact of foreign exchange rates, partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business.

During the current six months, the average rates of the yen were 103.1 yen against the U.S. dollar and 139.0 yen against the euro, which were 4.1% lower and 6.5% lower, respectively, as compared with the same period in the previous fiscal year. On a constant currency basis, consolidated sales increased 3%. For further detail about sales on a constant currency basis, see Note on page 11.

In the MC segment, sales increased primarily due to the favorable impact of foreign exchange rates. In the G&NS segment, sales increased significantly primarily due to the contribution of PS4 hardware sales, as well as a significant increase in network services revenues accompanying the launch of the PS4. In the IP&S segment, sales decreased primarily due to lower sales of video cameras and digital cameras. In the HE&S segment, sales increased primarily due to a significant increase in sales of televisions and the favorable impact of foreign exchange rates. In the Devices segment, sales increased significantly mainly due to an increase in sales of image sensors for mobile devices and the favorable impact of foreign exchange rates. In the Pictures segment, sales increased significantly due to higher home entertainment and television licensing revenues for Motion Pictures as well as the favorable impact of the depreciation of the yen against the U.S. dollar. In the Music segment, sales increased primarily due to the favorable impact of the depreciation of the yen against the U.S. dollar and an increase in Visual Media and Platform sales, partially offset by a decrease in Recorded Music sales. In the Financial Services segment, revenue increased primarily due to higher insurance premiums revenue and an improvement in investment performance in the general account at Sony Life.

Operating loss of 15.8 billion yen (145 million U.S. dollars) was recorded, compared to operating income of 49.4 billion yen in the same period of the previous fiscal year. This deterioration was primarily due to the impairment of goodwill of 176.0 billion yen (1,615 million U.S. dollars) recorded in the MC segment, partially offset by a significant improvement in the operating results of the G&NS, IP&S, HE&S, Devices, Pictures and Financial Services segments.

Operating loss during the current six months includes a net benefit of 5.1 billion yen (47 million U.S. dollars) from insurance recoveries related to damages and losses incurred from the Floods. The same period of the previous fiscal year included a gain of 12.8 billion yen from the sale of certain shares of M3, a net benefit of 7.1 billion yen from insurance recoveries related to damages and losses incurred from the Floods and a benefit of 7.0 billion yen from the reversal of a patent royalty accrual.

In the MC segment, operating results significantly detriorated year-on-year mainly due to the above-mentioned impairment charge recorded in this segment as well as an increase in marketing expenses. In the G&NS segment, operating results improved significantly year-on-year primarily due to the contribution of PS4 hardware and software. In the IP&S segment, operating income increased significantly year-on-year primarily due to a reduction in costs and an improvement in product mix reflecting a shift to high value-added models. In the HE&S segment, operating income was recorded compared to a loss in the same period of the previous fiscal year primarily due to cost reductions and an improvement in product mix reflecting a shift to high value-added models. In the Devices segment, operating income increased significantly mainly due to the increase in sales of image sensors. In the Pictures segment, operating results improved significantly primarily due to the stronger performance of the current fiscal year’s film release slate as the previous fiscal year reflected the underperformance of White House Down and After Earth, partially offset by the gain recognized on the sale of SPE’s music publishing catalog in the same period of the previous fiscal year. In the Music segment, operating income increased primarily due to the impact of an increase in Visual Media and Platform sales and a reduction in selling, general and administrative expenses. In the Financial Services segment, operating income increased primarily due to an improvement in investment performance in the general account at Sony Life.

Restructuring charges, recorded as operating expenses, amounted to 24.7 billion yen (226 million U.S. dollars) for the current six months compared to 12.5 billion yen for the same period of the previous fiscal year.

Equity in net income of affiliated companies, recorded within operating loss was 3.8 billion yen (35 million U.S. dollars), compared to a loss of 2.5 billion yen in the same period of the previous fiscal year. This improvement was mainly due to the improvement of equity in net income for Intertrust Technologies Corporation.

The net effect of other income and expenses was an expense of 5.8 billion yen (53 million U.S. dollars), compared to income of 1.1 billion yen in the same period of the previous fiscal year. This was primarily due to a decrease in other non-operating income.

Loss before income taxes was 21.6 billion yen (198 million U.S. dollars) compared to income of 50.5 billion yen in the same period of the previous fiscal year.

Income taxes: During the current six months, Sony recorded 56.1 billion yen (515 million U.S. dollars) of income tax expense. Income tax expense was recorded despite the net loss before income taxes primarily due to nondeductible goodwill impairments recorded during the current six months.

Net loss attributable to Sony Corporation’s stockholders for the current six months increased 92.7 billion yen year-on-year to 109.2 billion yen (1,001 million U.S. dollars).

* * * * *

Cash Flows

For Consolidated Statements of Cash Flows, charts showing Sony’s cash flow information for all segments, all segments excluding the Financial Services segment and the Financial Services segment alone, please refer to pages F-5 and F-17.

In the Financial Services segment, certain figures for the fiscal year ended March 31, 2014 have been revised from the versions previously disclosed. For further details, please see Note 8 on page F-19.

Operating Activities: During the current six months, there was a net cash inflow of 104.1 billion yen (955 million U.S. dollars) from operating activities, compared to a net cash outflow of 12.8 billion yen in the same period of the previous fiscal year.

For all segments excluding the Financial Services segment, there was a net cash outflow of 110.2 billion yen (1,011 million U.S. dollars) for the current six months, a decrease of outflow of 104.1 billion yen, or 48.6% year-on-year. This decrease of outflow was primarily due to the positive impact of an improvement in net income (loss) after taking into account non-cash adjustments (including depreciation and amortization, other operating (income) expenses, net, deferred income taxes and equity in net income (loss) of affiliated companies), a smaller increase in inventories, and a smaller increase in other receivables from component assembly companies, included in other current assets. This decrease of outflow was partially offset by the negative impact of a smaller year-on-year increase in notes and accounts payable, trade.

The Financial Services segment had a net cash inflow of 222.1 billion yen (2,038 million U.S. dollars), an increase of 13.9 billion yen, or 6.7% year-on-year. This increase was primarily due to an increase of insurance premiums revenue in line with a growing policy amount in force at Sony Life.

Investing Activities: During the current six months, Sony used 282.9 billion yen (2,595 million U.S. dollars) of net cash in investing activities, an increase of 58.7 billion yen, or 26.2% year-on-year.

For all segments excluding the Financial Services segment, there was a 0.1 billion yen (1 million U.S. dollars) net cash outflow, compared to a 7.7 billion yen net cash inflow in the same period of the previous fiscal year. This was primarily due to a year-on-year decrease in proceeds from the sales of fixed assets and investment securities. Sales of fixed assets and investment securities in the current six months included the intersegment sale of Sony Corporation’s headquarters’ land to Sony Life, the sale of certain buildings and premises at the Gotenyama Technology Center in Japan and the sale of Sony’s shares in SQUARE ENIX HOLDINGS CO., LTD.

The Financial Services segment used 282.8 billion yen (2,594 million U.S. dollars) of net cash, an increase of 51.0 billion yen, or 22.0% year-on-year. This increase was mainly due to the intersegment purchase of Sony Corporation’s headquarters’ land by Sony Life, which is eliminated in the consolidated financial statements.

In all segments excluding the Financial Services segment, net cash used in operating and investing activities combined*1 for the current six months was 110.3 billion yen (1,012 million U.S. dollars), a decrease of 96.3 billion yen, or 46.6% year-on-year.

Financing Activities: During the current six months, 273.0 billion yen (2,505 million U.S. dollars) of net cash and cash equivalents was used in financing activities, compared to 111.2 billion yen of net cash and cash equivalents provided in the same period of the previous fiscal year.

For all segments excluding the Financial Services segment, there was a 255.4 billion yen (2,343 million U.S. dollars) net cash outflow, compared to a 84.8 billion yen net cash inflow in the same period of the previous fiscal year. This was primarily due to an issuance of straight bonds for Japanese retail investors in the same period of the previous fiscal year and the redemption of straight bonds and the repayment of a syndicated loan in the current six months.

In the Financial Services segment, financing activities used 25.5 billion yen (234 million U.S. dollars) of net cash, compared to 19.7 billion yen of net cash provided in the same period of the previous fiscal year. This was mainly due to a larger decrease in customer deposits at Sony Bank, compared to the figure in the same period of the previous fiscal year.

Total Cash and Cash Equivalents: Accounting for the above factors and the effect of fluctuations in foreign exchange rates, the total outstanding balance of cash and cash equivalents at September 30, 2014 was 610.5 billion yen (5,601 million U.S. dollars). Cash and cash equivalents of all segments excluding the Financial Services segment was 456.3 billion yen (4,186 million U.S. dollars) at September 30, 2014, a decrease of 71.7 billion yen, or 13.6% compared with the balance as of September 30, 2013, and a decrease of 349.8 billion yen, or 43.4% compared with the balance as of March 31, 2014. Sony believes that it continues to maintain sufficient liquidity through access to a total, translated into yen, of 749.7 billion yen (6,878 million U.S. dollars) of unused committed lines of credit with financial institutions in addition to the cash and cash equivalents balance at September 30, 2014. Within the Financial Services segment, the outstanding balance of cash and cash equivalents was 154.2 billion yen (1,415 million U.S. dollars) at September 30, 2014, a decrease of 43.4 billion yen, or 22.0% compared with the balance as of September 30, 2013, and a decrease of 86.1 billion yen, or 35.8% compared with the balance as of March 31, 2014.

Sony has included the information for cash flow from operating and investing activities combined, excluding the Financial Services segment’s activities, as Sony’s management frequently monitors this financial measure, and believes this non-U.S. GAAP measurement is important for use in evaluating Sony’s ability to generate cash to maintain liquidity and fund debt principal and dividend payments from business activities other than its Financial Services segment. This information is derived from the reconciliations prepared in the Condensed Statements of Cash Flows on page F-17. This information and the separate condensed presentations shown below are not required or prepared in accordance with U.S. GAAP. The Financial Services segment’s cash flow is excluded from the measure because SFH, which constitutes a majority of the Financial Services segment, is a separate publicly traded entity in Japan with a significant minority interest and it, as well as its subsidiaries, secure liquidity on their own. This measure may not be comparable to those of other companies. This measure has limitations because it does not represent residual cash flows available for discretionary expenditures principally due to the fact that the measure does not deduct the principal payments required for debt service. Therefore, Sony believes it is important to view this measure as supplemental to its entire statement of cash flows and together with Sony’s disclosures regarding investments, available credit facilities and overall liquidity.

A reconciliation of the differences between the Consolidated Statement of Cash Flows reported and cash flows from operating and investing activities combined excluding the Financial Services segment’s activities is as follows:

	(Billions of yen, millions of U.S. dollars)
	Six months ended September 30
	2013			2014			2014

Net cash provided (used in) operating activities reported in the consolidated statements of cash flows	¥	(12.8	)	¥	104.1		$	955
Net cash used in investing activities reported in the consolidated statements of cash flows		(224.1	)		(282.9	)		(2,595	)
		(236.9	)		(178.8	)		(1,640	)

Less: Net cash provided by operating activities within the Financial Services segment		208.2			222.1			2,038
Less: Net cash used in investing activities within the Financial Services segment		(231.8	)		(282.8	)		(2,594	)
Eliminations *2		6.7			7.8			72

Cash flow used in operating and investing activities combined excluding the Financial Services segment’s activities	¥	(206.6	)	¥	(110.3	)	$	(1,012	)

*2	Eliminations primarily consist of intersegment dividend payments.

* * * * *

Note

The descriptions of sales on a constant currency basis reflect sales obtained by applying the yen’s monthly average exchange rates from the same quarter of the previous fiscal year to local currency-denominated monthly sales in the current quarter. In certain cases, most significantly in the Pictures segment and SME and Sony/ATV in the Music segment, the constant currency amounts are after aggregation on a U.S. dollar basis. Sales on a constant currency basis are not reflected in Sony’s consolidated financial statements and are not measures in accordance with U.S. GAAP. Sony does not believe that these measures are a substitute for U.S. GAAP measures. However, Sony believes that disclosing sales information on a constant currency basis provides additional useful analytical information to investors regarding the operating performance of Sony.

* * * * *

Outlook for the Fiscal Year ending March 31, 2015

The forecast for consolidated results for the fiscal year ending March 31, 2015, as announced on September 17, 2014, remains unchanged, as per the table below:

The forecasts for consolidated operating income (loss), income (loss) before income taxes and net loss attributable to Sony Corporation’s stockholders were updated on September 17, 2014 solely to reflect the approximately 180 billion yen impairment of goodwill in the MC segment. No other factors were incorporated into the revisions in the forecast announced on September 17, 2014.

	(Billions of yen)												Change - October Forecast vs.
	October Forecast			September Forecast			July Forecast			March 31, 2014 Results			September Forecast			March 31, 2014 Results
Sales and operating revenue	¥	7,800		¥	7,800		¥	7,800		¥	7,767.3			-	%		+0.4	%
Operating income (loss)		(40	)		(40	)		140			26.5			-		¥	-66.5	bil
Income (loss) before income taxes		(50	)		(50	)		130			25.7			-		¥	-75.7	bil
Net loss attributable to Sony Corporation’s stockholders		(230	)		(230	)		(50	)		(128.4	)		-		¥	- 01.6	bil

Assumed foreign currency exchange rates for the remainder of the fiscal year ending March 31, 2015: approximately 110 yen to the U.S. dollar and approximately 138 yen to the euro. (Assumed foreign currency exchange rates for the remainder of the fiscal year ending March 31, 2015 at the time of the July and September forecasts: approximately 103 yen to the U.S. dollar and approximately 137 yen to the euro.)

The consolidated sales forecast for the current fiscal year remains unchanged from the September forecast as the favorable impact of the depreciation of the yen is expected to be offset by a downward revision in the sales forecasts for the HE&S, Pictures and MC segments. The consolidated operating loss forecast remains unchanged from the September forecast.

Costs related to the exit from the PC business and other strategic management initiatives are expected to be approximately 311 billion yen for Sony Group, an increase of 176 billion yen above the July forecast, primarily due to the recording of goodwill impairment charges in the MC segment. Such costs in the previous fiscal year were 177.4 billion yen. The above costs have been incorporated into the consolidated operating loss forecast as an operating expense. Of the above costs, approximately 85 billion yen is expected to be recorded as restructuring charges, an increase of 5 billion yen compared to the July forecast, due to an increase in restructuring charges primarily in the MC segment (restructuring charges in the previous fiscal year were 80.6 billion yen).

The forecast for each business segment has been revised as follows:

	(Billions of yen)									Change - October Forecast vs.
	October Forecast			July Forecast*			March 31, 2014 Results			July Forecast			March 31, 2014 Results
Mobile Communications
Sales and operating revenue	¥	1,350		¥	1,360		¥	1,191.8			-0.7	%		+13.3	%
Operating income (loss)		(204	)		(180	)*		12.6		¥	-24	bil	¥	-216.6	bil
Game & Network Services
Sales and operating revenue		1,290			1,240			1,043.9			+4.0	%		+23.6	%
Operating income (loss)		35			25			(18.8	)	¥	+10	bil	¥	+53.8	bil
Imaging Products & Solutions
Sales and operating revenue		710			700			741.2			+1.4	%		-4.2	%
Operating income		52			38			26.3		¥	+14	bil	¥	+25.7	bil
Home Entertainment & Sound
Sales and operating revenue		1,200			1,230			1,168.6			-2.4	%		+2.7	%
Operating income (loss)		10			10			(25.5	)		-		¥	+35.5	bil
Devices
Sales and operating revenue		890			870			773.0			+2.3	%		+15.1	%
Operating income (loss)		67			51			(12.4	)	¥	+16	bil	¥	+79.4	bil
Pictures
Sales and operating revenue		860			880			829.6			-2.3	%		+3.7	%
Operating income		58			65			51.6		¥	-7	bil	¥	+6.4	bil
Music
Sales and operating revenue		510			500			503.3			+2.0	%		+1.3	%
Operating income		50			48			50.2		¥	+2	bil	¥	-0.2	bil
Financial Services
Financial services revenue		1,000			1,000			993.8			-			+0.6	%
Operating income		164			164			170.3			-		¥	-6.3	bil
All Other, Corporate and Elimination
Operating loss		(272	)		(261	)		(227.8	)	¥	-11	bil	¥	-44.2	bil
Consolidated
Sales and operating revenue		7,800			7,800			7,767.3			-			+0.4	%
Operating income (loss)		(40	)		(40	)*		26.5			-		¥	-66.5	bil

* Operating income (loss) for the July forecast has been adjusted to reflect the approximately 180 billion yen impairment of goodwill for the MC segment that was announced on September 17, 2014. The July forecasts for the other segments are those initially announced.

Mobile Communications

Sales are expected to be below the July forecast primarily due to an expected decrease in the annual unit sales of smartphones mainly in China, partially offset by the favorable impact of foreign exchange rates. Operating loss is expected to be larger than the July forecast primarily due to the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated hardware costs in the segment, the impact of a decrease in sales and the expected recording of restructuring charges mainly related to initiatives to reduce headcount in this segment as announced on September 17, 2014. The October forecast for operating loss also includes the 176 billion yen impairment charge recorded in the current quarter.

Game & Network Services

Sales are expected to be higher than the July forecast primarily due to the favorable impact of foreign exchange rates and the strong performance of the PS4. Operating income is expected to be above the July forecast primarily due to the above-mentioned increase in sales, partially offset by the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs in the segment.

Imaging Products & Solutions

Sales are expected to be above the July forecast primarily due to the favorable impact of foreign exchange rates and an upward revision in the annual unit sales forecast for digital cameras. Operating income is expected to be above the July forecast primarily due to cost reductions and the favorable impact of foreign exchange rates.

Home Entertainment & Sound

Sales are expected to be below the July forecast mainly due to a downward revision in the annual unit sales forecast for LCD televisions, partially offset by the favorable impact of foreign exchange rates. Operating income is expected to remain unchanged from the July forecast mainly due to cost reductions being offset primarily by the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs in the segment and the above-mentioned decrease in sales.

Devices

Sales are expected to be higher than the July forecast primarily due to the favorable impact of foreign exchange rates and an anticipated increase in sales of image sensors. Operating income is expected to be higher than the July forecast primarily due to the favorable impact of foreign exchange rates and the above-mentioned increase in sales.

Pictures

Sales are expected to be lower than the July forecast primarily due to an expected decrease in Motion Pictures and Media Networks revenues, partially offset by the favorable impact of the depreciation of the yen against the U.S. dollars. Operating income is expected to be lower than the July forecast primarily due to the above-mentioned decrease in Motion Pictures and Media Networks revenues.

Music

Sales and operating income are expected to be higher than the July forecast primarily due to the favorable impact of foreign exchange rates.

The forecasts for the Financial Services segment remains unchanged from the July forecast.

The effects of future gains and losses on investments held by the Financial Services segment due to market fluctuations have not been incorporated within the above forecast as it is difficult for Sony to predict market trends in the future. Accordingly, future market fluctuations could further impact the current forecast.

Sony’s forecast for capital expenditures, depreciation and amortization, as well as research and development expenses for the current fiscal year, announced on July 31, 2014, has been changed as per the table below.

Consolidated

	(Billions of yen)						Change - October Forecast vs.
	October Forecast		July Forecast		March 31, 2014 Results		July Forecast			March 31, 2014 Results
Capital expenditures*	¥	295	¥	295	¥	261.0		-	%		+13.0	%
[additions to property, plant and equipment (included above)		195		195	¥	164.6		-			+18.5	]
[additions to intangible assets (included above) *		100		100	¥	96.4		-			+3.7	]
Depreciation and amortization**		355		365		376.7		-2.7			-5.8
[for property, plant and equipment (included above)		170		175		195.8		-2.9			-13.2	]
[for intangible assets (included above)		185		190		135.7		-2.6			+36.4	]
Research and development expenses		485		485		466.0		-			+4.1

*	Does not include the increase in intangible assets resulting from business acquisitions.

**	The forecast for depreciation and amortization includes amortization expenses for deferred insurance acquisition costs.

Sony without Financial Services

	(Billions of yen)						Change - October Forecast vs.
	October Forecast		July Forecast		March 31, 2014 Results		July Forecast			March 31, 2014 Results
Capital expenditures*	¥	284	¥	284	¥	250.8		-	%		+13.3	%
[additions to property, plant and equipment (included above)		193		193		161.4		-			+19.6	]
[additions to intangible assets (included above) *		91		91		89.4		-			+1.8	]
Depreciation and amortization		293		299		322.3		-2.0			-9.1
[for property, plant and equipment (included above)		169		174		194.9		-2.9			-13.3	]
[for intangible assets (included above)		124		125		127.4		-0.8			-2.7	]

* Does not include the increase in intangible assets resulting from business acquisitions.

This forecast is based on management’s current expectations and is subject to uncertainties and changes in circumstances. Actual results may differ materially from those included in this forecast due to a variety of factors. See “Cautionary Statement” below.

Cautionary Statement

Statements made in this release with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:

(i)	the global economic environment in which Sony operates and the economic conditions in Sony’s markets, particularly levels of consumer spending;

(ii)	foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets and liabilities are denominated;

(iii)

Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including televisions, game platforms and smartphones, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing consumer preferences;

(iv)	Sony’s ability and timing to recoup large-scale investments required for technology development and production capacity;

(v)	Sony’s ability to implement successful business restructuring and transformation efforts under changing market conditions;

(vi)	Sony’s ability to implement successful hardware, software, and content integration strategies for all segments excluding the Financial Services segment, and to develop and implement successful sales and distribution strategies in light of the Internet and other technological developments;

(vii)

Sony’s continued ability to devote sufficient resources to research and development and, with respect to capital expenditures, to prioritize investments correctly (particularly in the electronics businesses);

(viii)

Sony’s ability to maintain product quality;

(ix)	the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures and other strategic investments;

(x)	significant volatility and disruption in the global financial markets or a ratings downgrade;

(xi)	Sony’s ability to forecast demands, manage timely procurement and control inventories;

(xii)

the outcome of pending and/or future legal and/or regulatory proceedings;

(xiii)

shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment;

(xiv)

the impact of unfavorable conditions or developments (including market fluctuations or volatility) in the Japanese equity markets on the revenue and operating income of the Financial Services segment; and

(xv)	risks related to catastrophic disasters or similar events.

Risks and uncertainties also include the impact of any future events with material adverse impact.

Investor Relations Contacts:
Tokyo	New York	London
Atsuko Murakami	Justin Hill	Haruna Nagai
+81-(0)3-6748-2111	+1-212-833-6722	+44-(0)20-7426-8696

IR home page: http://www.sony.net/IR/

Presentation slides: http://www.sony.net/SonyInfo/IR/financial/fr/14q2_sonypre.pdf

(Unaudited)
Consolidated Financial Statements
Consolidated Balance Sheets
	(Millions of yen, millions of U.S. dollars)
	March 31			September 30			Change from		September 30
ASSETS	2014			2014			March 31, 2014		2014
Current assets:
Cash and cash equivalents	¥	1,046,466		¥	610,509		¥	-435,957	$	5,601
Marketable securities		832,566			936,729			+104,163		8,594
Notes and accounts receivable, trade		946,553			1,075,558			+129,005		9,868
Allowance for doubtful accounts and sales returns		(75,513	)		(73,238	)		+2,275		(672	)
Inventories		733,943			946,812			+212,869		8,686
Other receivables		224,630			326,274			+101,644		2,993
Deferred income taxes		53,068			54,064			+996		496
Prepaid expenses and other current assets		443,173			475,773			+32,600		4,365
Total current assets		4,204,886			4,352,481			+147,595		39,931

Film costs		275,799			295,121			+19,322		2,708

Investments and advances:
Affiliated companies		181,263			179,542			-1,721		1,647
Securities investments and other		7,737,748			7,958,170			+220,422		73,011
		7,919,011			8,137,712			+218,701		74,658

Property, plant and equipment:
Land		125,890			125,995			+105		1,156
Buildings		674,841			685,467			+10,626		6,289
Machinery and equipment		1,705,774			1,732,751			+26,977		15,896
Construction in progress		39,771			41,975			+2,204		385
		2,546,276			2,586,188			+39,912		23,726
Less-Accumulated depreciation		1,796,266			1,835,048			+38,782		16,835
		750,010			751,140			+1,130		6,891

Other assets:
Intangibles, net		675,663			663,842			-11,821		6,090
Goodwill		691,803			538,131			-153,672		4,937
Deferred insurance acquisition costs		497,772			512,015			+14,243		4,697
Deferred income taxes		105,442			96,171			-9,271		882
Other		213,334			222,391			+9,057		2,041
		2,184,014			2,032,550			-151,464		18,647

Total assets	¥	15,333,720		¥	15,569,004		¥	+235,284	$	142,835


LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	111,836		¥	112,143		¥	+307	$	1,029
Current portion of long-term debt		265,918			136,551			-129,367		1,253
Notes and accounts payable, trade		712,829			889,973			+177,144		8,165
Accounts payable, other and accrued expenses		1,175,413			1,216,547			+41,134		11,161
Accrued income and other taxes		81,842			125,250			+43,408		1,149
Deposits from customers in the banking business		1,890,023			1,824,665			-65,358		16,740
Other		545,753			553,970			+8,217		5,082
Total current liabilities		4,783,614			4,859,099			+75,485		44,579

Long-term debt		916,648			745,832			-170,816		6,842
Accrued pension and severance costs		284,963			281,644			-3,319		2,584
Deferred income taxes		410,896			421,663			+10,767		3,868
Future insurance policy benefits and other		3,824,572			3,982,461			+157,889		36,536
Policyholders’ account in the life insurance business		2,023,472			2,130,408			+106,936		19,545
Other		302,299			304,439			+2,140		2,794
Total liabilities		12,546,464			12,725,546			+179,082		116,748

Redeemable noncontrolling interest		4,115			4,277			+162		39

Equity:
Sony Corporation’s stockholders’ equity:
Common stock		646,654			696,908			+50,254		6,394
Additional paid-in capital		1,127,090			1,175,267			+48,177		10,782
Retained earnings		940,262			830,729			-109,533		7,621
Accumulated other comprehensive income		(451,585	)		(411,975	)		+39,610		(3,779	)
Treasury stock, at cost		(4,284	)		(4,160	)		+124		(38	)
		2,258,137			2,286,769			+28,632		20,980

Noncontrolling interests		525,004			552,412			+27,408		5,068
Total equity		2,783,141			2,839,181			+56,040		26,048
Total liabilities and equity	¥	15,333,720		¥	15,569,004		¥	+235,284	$	142,835

F-1

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
	Three months ended September 30
	2013			2014			Change from 2013		2014
Sales and operating revenue:
Net sales	¥	1,511,040		¥	1,606,159				$	14,736
Financial services revenue		242,495			268,192					2,460
Other operating revenue		20,700			27,160					249
		1,774,235			1,901,511		+7.2	%		17,445

Costs and expenses:
Cost of sales		1,155,115			1,168,883					10,724
Selling, general and administrative		412,378			419,203					3,846
Financial services expenses		203,596			220,831					2,026
Other operating (income) expense, net		(12,808	)		178,811					1,640
		1,758,281			1,987,728		+13.0			18,236

Equity in net income (loss) of affiliated companies		(2,025	)		629		-			6

Operating income (loss)		13,929			(85,588	)	-			(785	)

Other income:
Interest and dividends		5,557			2,337					21
Gain on sale of securities investments, net		116			2,386					22
Other		908			1,465					14
		6,581			6,188		-6.0			57

Other expenses:
Interest		7,092			6,047					55
Foreign exchange loss, net		5,744			2,592					24
Other		2,545			1,916					18
		15,381			10,555		-31.4			97

Income (loss) before income taxes		5,129			(89,955	)	-			(825	)

Income taxes		11,339			30,078					276

Net loss		(6,210	)		(120,033		-			(1,101	)

Less - Net income attributable to noncontrolling interests		13,421			15,936					146

Net loss attributable to Sony Corporation’s stockholders	¥	(19,631	)	¥	(135,969	)	-	%	$	(1,247	)



Per share data:
Net loss attributable to Sony Corporation’s
stockholders
— Basic	¥	(19.25	)	¥	(124.32	)	-	%	$	(1.14	)
— Diluted		(19.25	)		(124.32	)	-			(1.14	)


Consolidated Statements of Comprehensive Income
	(Millions of yen, millions of U.S. dollars)
	Three months ended September 30
	2013			2014			Change from 2013		2014

Net loss	¥	(6,210	)	¥	(120,033	)	-	%	$	(1,101	)

Other comprehensive income, net of tax –
Unrealized gains on securities		17,440			13,191					121
Unrealized gains on derivative instruments		402			-					-
Pension liability adjustment		63			414					4
Foreign currency translation adjustments		1,423			51,557					473

Total comprehensive income (loss)		13,118			(54,871	)	-			(503	)

Less - Comprehensive income attributable		19,389			19,655					180
to noncontrolling interests

Comprehensive loss attributable to Sony Corporation’s stockholders	¥	(6,271	)	¥	(74,526	)	-	%	$	(683	)

F-2

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
	Six months ended September 30
	2013			2014			Change from 2013			2014
Sales and operating revenue:
Net sales	¥	2,949,976		¥	3,145,965					$	28,862
Financial services revenue		492,665			513,942						4,715
Other operating revenue		43,013			51,512						473
		3,485,654			3,711,419			+6.5	%		34,050

Costs and expenses:
Cost of sales		2,253,995			2,319,722						21,283
Selling, general and administrative		797,371			829,650						7,611
Financial services expenses		407,893			422,509						3,876
Other operating (income) expense, net		(25,481	)		159,142						1,460
		3,433,778			3,731,023			+8.7			34,230

Equity in net income (loss) of affiliated companies		(2,450	)		3,830		-				35

Operating income (loss)		49,426			(15,774	)	-				(145	)

Other income:
Interest and dividends		9,444			5,752						53
Gain on sale of securities investments, net		616			7,586						70
Foreign exchange gain, net		447		-						－
Other		9,370			2,082						19
		19,877			15,420			-22.4			142

Other expenses:
Interest		14,048			12,459						114
Foreign exchange loss, net	-				4,568						42
Other		4,733			4,197						39
		18,781			21,224			+13.0			195

Income (loss) before income taxes		50,522			(21,578	)	-				(198	)

Income taxes		37,807			56,124						515

Net income (loss)		12,715			(77,702	)	-				(713	)

Less - Net income attributable to noncontrolling interests		29,219			31,459						288

Net loss attributable to Sony Corporation’s
stockholders	¥	(16,504	)	¥	(109,161	)	-		%	$	(1,001	)



Per share data:
Net loss attributable to Sony Corporation’s
stockholders
— Basic	¥	(16.25	)	¥	(102.14	)	-		%	$	(0.94	)
— Diluted		(16.25	)		(102.14	)	-				(0.94	)


Consolidated Statements of Comprehensive Income
	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
		2013			2014		Change from 2013				2014

Net income (loss)	¥	12,715		¥	(77,702	)	-		%	$	(713	)

Other comprehensive income, net of tax –
Unrealized gains on securities		2,546			15,066						138
Unrealized gains on derivative instruments		595		－						－
Pension liability adjustment		(3,184	)		750						7
Foreign currency translation adjustments		63,795			30,717						282

Total comprehensive income (loss)		76,467			(31,169	)	-				(286	)

Less - Comprehensive income attributable		25,599			38,382						352
to noncontrolling interests

Comprehensive income (loss) attributable to Sony Corporation’s stockholders	¥	50,868		¥	(69,551	)	-		%	$	(638	)

F-3

Supplemental equity and comprehensive income information
	(Millions of yen, millions of U.S. dollars)
	Sony Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2013	¥	2,192,262		¥	479,742		¥	2,672,004
Exercise of stock acquisition rights		38						38
Conversion of zero coupon convertible bonds		25,520						25,520
Stock based compensation		471						471

Comprehensive income:
Net income (loss)		(16,504	)		29,219			12,715
Other comprehensive income, net of tax –
Unrealized gains (losses) on securities		6,312			(3,766	)		2,546
Unrealized gains on derivative instruments		595						595
Pension liability adjustment		(3,191	)		7			(3,184	)
Foreign currency translation adjustments		63,656			139			63,795
Total comprehensive income		50,868			25,599			76,467

Dividends declared		(12,970	)		(6,878	)		(19,848	)
Transactions with noncontrolling interests shareholders and other		101			227			328
Balance at September 30, 2013	¥	2,256,290		¥	498,690		¥	2,754,980

Balance at March 31, 2014	¥	2,258,137		¥	525,004		¥	2,783,141
Exercise of stock acquisition rights		91						91
Conversion of zero coupon convertible bonds		100,400						100,400
Stock based compensation		529						529

Comprehensive income:
Net income (loss)		(109,161	)		31,459			(77,702	)
Other comprehensive income, net of tax –
Unrealized gains on securities		10,427			4,639			15,066
Pension liability adjustment		788			(38	)		750
Foreign currency translation adjustments		28,395			2,322			30,717
Total comprehensive income (loss)		(69,551	)		38,382			(31,169	)

Dividends declared					(12,270	)		(12,270	)
Transactions with noncontrolling interests shareholders and other		(2,837	)		1,296			(1,541	)
Balance at September 30, 2014	¥	2,286,769		¥	552,412		¥	2,839,181


	Sony Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2014	$	20,717		$	4,817		$	25,534
Exercise of stock acquisition rights		1						1
Conversion of zero coupon convertible bonds		921						921
Stock based compensation		5						5

Comprehensive income:
Net income (loss)		(1,001	)		288			(713	)
Other comprehensive income, net of tax –
Unrealized gains on securities		95			43			138
Pension liability adjustment		7			0			7
Foreign currency translation adjustments		261			21			282
Total comprehensive income (loss)		(638	)		352			(286	)

Dividends declared					(113	)		(113	)
Transactions with noncontrolling interests shareholders and other		(26	)		12			(14	)
Balance at September 30, 2014	$	20,980		$	5,068		$	26,048

F-4

Consolidated Statements of Cash Flows
	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
	2013			2014			2014
Cash flows from operating activities:
Net income (loss)	¥	12,715		¥	(77,702	)	$	(713	)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization, including amortization of deferred		188,956			166,747			1,530
insurance acquisition costs
Amortization of film costs		116,847			127,868			1,173
Stock-based compensation expense		612			592			5
Accrual for pension and severance costs, less payments		(3,672	)		(5,754	)		(53	)
Other operating (income) expense, net		(25,481	)		159,142			1,460
Gain on sale or devaluation of securities investments, net		(531	)		(7,582	)		(70	)
Gain on revaluation of marketable securities held in the financial		(35,062	)		(37,019	)		(340	)
services business for trading purposes, net
Gain on revaluation or impairment of securities investments held		(2,778	)		(1,251	)		(11	)
in the financial services business, net
Deferred income taxes		(11,131	)		(1,783	)		(16	)
Equity in net loss of affiliated companies, net of dividends		4,145			681			6
Changes in assets and liabilities:
Increase in notes and accounts receivable, trade		(70,549	)		(102,544	)		(941	)
Increase in inventories		(240,382	)		(190,425	)		(1,747	)
Increase in film costs		(148,661	)		(129,316	)		(1,186	)
Increase in notes and accounts payable, trade		260,074			163,389			1,499
Increase in accrued income and other taxes		16,022			19,036			175
Increase in future insurance policy benefits and other		205,663			223,669			2,052
Increase in deferred insurance acquisition costs		(37,982	)		(38,560	)		(354	)
Increase in marketable securities held in the financial services		(14,469	)		(30,631	)		(281	)
business for trading purposes
Increase in other current assets		(151,311	)		(100,128	)		(919	)
Increase (decrease) in other current liabilities		(39,003	)		1,836			17
Other		(36,782	)		(36,190	)		(331	)
Net cash provided by (used in) operating activities		(12,760	)		104,075			955

Cash flows from investing activities:
Payments for purchases of fixed assets		(135,857	)		(95,778	)		(879	)
Proceeds from sales of fixed assets		85,088			30,407			279
Payments for investments and advances by financial services business		(470,121	)		(459,625	)		(4,217	)
Payments for investments and advances		(4,059	)		(9,408	)		(86	)
(other than financial services business)
Proceeds from sales or return of investments and collections of advances		242,294			232,550			2,133
by financial services business
Proceeds from sales or return of investments and collections of advances		42,260			32,916			302
(other than financial services business)
Other		16,284			(13,921	)		(127	)
Net cash used in investing activities		(224,111	)		(282,859	)		(2,595	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		167,961			12,471			114
Payments of long-term debt		(44,106	)		(231,652	)		(2,125	)
Increase (decrease) in short-term borrowings, net		10,508			(926	)		(8	)
Increase (decrease) in deposits from customers in the financial services		16,660			(22,750	)		(209	)
business, net
Dividends paid		(12,588	)		(13,060	)		(120	)
Other		(27,248	)		(17,100	)		(157	)
Net cash provided by (used in) financing activities		111,187			(273,017	)		(2,505	)

Effect of exchange rate changes on cash and cash equivalents		24,991			15,844			145

Net decrease in cash and cash equivalents		(100,693	)		(435,957	)		(4,000	)
Cash and cash equivalents at beginning of the fiscal year		826,361			1,046,466			9,601

Cash and cash equivalents at end of the period	¥	725,668		¥	610,509		$	5,601

F-5

Business Segment Information

		(Millions of yen, millions of U.S. dollars)
		Three months ended September 30
Sales and operating revenue		2013			2014			Change		2014
	Mobile Communications
	Customers	¥	304,536		¥	308,339		+1.2	%	$	2,829
	Intersegment		52			24					0
	Total		304,588			308,363		+1.2			2,829

	Game & Network Services
	Customers		145,073			285,754		+97.0			2,622
	Intersegment		23,881			23,725					217
	Total		168,954			309,479		+83.2			2,839

	Imaging Products & Solutions
	Customers		174,624			177,152		+1.4			1,625
	Intersegment		882			1,458					14
	Total		175,506			178,610		+1.8			1,639

	Home Entertainment & Sound
	Customers		263,383			281,559		+6.9			2,583
	Intersegment		397			795					7
	Total		263,780			282,354		+7.0			2,590

	Devices
	Customers		144,752			181,143		+25.1			1,662
	Intersegment		56,537			66,569					611
	Total		201,289			247,712		+23.1			2,273

	Pictures
	Customers		177,720			181,907		+2.4			1,669
	Intersegment		120			276					2
	Total		177,840			182,183		+2.4			1,671

	Music
	Customers		112,731			114,671		+1.7			1,052
	Intersegment		2,240			2,081					19
	Total		114,971			116,752		+1.5			1,071

	Financial Services
	Customers		242,495			268,192		+10.6			2,460
	Intersegment		1,219			1,384					13
	Total		243,714			269,576		+10.6			2,473

	All Other
	Customers		193,306			87,797		-54.6			805
	Intersegment		18,712			20,847					192
	Total		212,018			108,644		-48.8			997

	Corporate and elimination		(88,425	)		(102,162	)	-			(937	)
	Consolidated total	¥	1,774,235		¥	1,901,511		+7.2	%	$	17,445

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other.

Devices intersegment amounts primarily consist of transactions with the Mobile Communications segment, the G&NS segment and the Imaging Products & Solutions (“IP&S”) segment.

All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment.

Corporate and elimination includes certain brand and patent royalty income.

		(Millions of yen, millions of U.S. dollars)
		Three months ended September 30
Operating income (loss)		2013			2014			Change		2014
	Mobile Communications	¥	8,802		¥	(171,998	)	－	%	$	(1,578	)
	Game & Network Services		(4,164	)		21,790		－			200
	Imaging Products & Solutions		(2,308	)		20,098		－			184
	Home Entertainment & Sound		(12,094	)		7,966		－			73
	Devices		11,879			29,573		+149.0			271
	Pictures		(17,756	)		(1,041	)	－			(10	)
	Music		9,696			11,815		+21.9			108
	Financial Services		38,388			47,686		+24.2			437
	All Other		(2,473	)		(18,163	)	－			(165	)
	Total		29,970			(52,274	)	－			(480	)

	Corporate and elimination		(16,041	)		(33,314	)	－			(305	)
	Consolidated total	¥	13,929		¥	(85,588	)	－	%	$	(785	)

The 2013 segment disclosure above has been reclassified to reflect the change in the business segment classification discussed in Note 5.

Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.

Corporate and elimination includes headquarters restructuring costs and certain other corporate expenses, including the amortization of certain intellectual property assets such as the cross-licensing of intangible assets acquired from Ericsson at the time of the Sony Mobile Communications acquisition, which are not allocated to segments.

Within the Home Entertainment & Sound (“HE&S”) segment, the operating income (loss) of Televisions, which primarily consists of LCD televisions, for the three months ended September 30, 2013 and 2014 was (9,262) million yen and 4,922 million yen, respectively. The operating income (loss) of Televisions excludes restructuring charges which are included in the overall segment results and are not allocated to product categories.

F-6

Business Segment Information

		(Millions of yen, millions of U.S. dollars)
		Six months ended September 30
Sales and operating revenue		2013			2014			Change		2014
	Mobile Communications
	Customers	¥	589,993		¥	622,649		+5.5	%	$	5,712
	Intersegment		61			32					1
	Total		590,054			622,681		+5.5			5,713

	Game & Network Services
	Customers		260,167			517,122		+98.8			4,744
	Intersegment		40,374			49,887					458
	Total		300,541			567,009		+88.7			5,202

	Imaging Products & Solutions
	Customers		354,449			341,288		-3.7			3,131
	Intersegment		1,945			1,922					18
	Total		356,394			343,210		-3.7			3,149

	Home Entertainment & Sound
	Customers		537,497			566,612		+5.4			5,198
	Intersegment		1,459			1,490					14
	Total		538,956			568,102		+5.4			5,212

	Devices
	Customers		290,429			325,881		+12.2			2,990
	Intersegment		101,236			105,919					971
	Total		391,665			431,800		+10.2			3,961

	Pictures
	Customers		336,522			376,573		+11.9			3,455
	Intersegment		233			380					3
	Total		336,755			376,953		+11.9			3,458

	Music
	Customers		221,906			228,147		+2.8			2,093
	Intersegment		5,024			5,468					50
	Total		226,930			233,615		+2.9			2,143

	Financial Services
	Customers		492,665			513,942		+4.3			4,715
	Intersegment		2,454			2,601					24
	Total		495,119			516,543		+4.3			4,739

	All Other
	Customers		370,990			192,429		-48.1			1,765
	Intersegment		35,512			44,987					413
	Total		406,502			237,416		-41.6			2,178

	Corporate and elimination		(157,262	)		(185,910	)	－			(1,705	)
	Consolidated total	¥	3,485,654		¥	3,711,419		+6.5	%	$	34,050

The G&NS intersegment amounts primarily consist of transactions with All Other.

Devices intersegment amounts primarily consist of transactions with the Mobile Communications segment, the G&NS segment and the IP&S segment.

All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment.

Corporate and elimination includes certain brand and patent royalty income.


		(Millions of yen, millions of U.S. dollars)
		Six months ended September 30
Operating income (loss)		2013		2014		Change		2014
	Mobile Communications	¥	21,368	¥	(174,738)	－	%	$	(1,603)
	Game & Network Services		(20,534)		26,109	－			240
	Imaging Products & Solutions		6,789		37,507	+452.5			344
	Home Entertainment & Sound		(8,727)		15,627	－			143
	Devices		22,724		42,109	+85.3			386
	Pictures		(14,014)		6,790	－			62
	Music		20,467		23,201	+13.4			213
	Financial Services		83,497		91,458	+9.5			839
	All Other		(19,394)		(36,595)	－			(335)
	Total		92,176		31,468	-65.9			289

	Corporate and elimination		(42,750)		(47,242)	－			(434)
	Consolidated total	¥	49,426	¥	(15,774)	－	%	$	(145)

The 2013 segment disclosure above has been reclassified to reflect the change in the business segment classification discussed in Note 5.

Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.

Within the HE&S segment, the operating income (loss) of Televisions, which primarily consists of LCD televisions, for the six months ended September 30, 2013 and 2014 was (4,055) million yen and 12,838 million yen, respectively. The operating income (loss) of Televisions excludes restructuring charges which are included in the overall segment results and are not allocated to product categories.

F-7

Sales to Customers by Product Category
		(Millions of yen, millions of U.S. dollars)
		Three months ended September 30
Sales and operating revenue (to external customers)		2013		2014		Change			2014

	Mobile Communications	¥	304,536	¥	308,339		+1.2	%	$	2,829

	Game & Network Services		145,073		285,754		+97.0			2,622

	Imaging Products & Solutions
	Digital Imaging Products		105,715		109,565		+3.6			1,005
	Professional Solutions		65,734		64,822		-1.4			595
	Other		3,175		2,765		-12.9			25
	Total		174,624		177,152		+1.4			1,625

	Home Entertainment & Sound
	Televisions		174,113		199,742		+14.7			1,832
	Audio and Video		87,567		81,717		-6.7			750
	Other		1,703		100		-94.1			1
	Total		263,383		281,559		+6.9			2,583

	Devices
	Semiconductors		83,342		115,846		+39.0			1,063
	Components		60,768		62,330		+2.6			572
	Other		642		2,967		+362.1			27
	Total		144,752		181,143		+25.1			1,662

	Pictures
	Motion Pictures		97,556		97,339		-0.2			893
	Television Productions		45,288		44,259		-2.3			406
	Media Networks		34,876		40,309		+15.6			370
	Total		177,720		181,907		+2.4			1,669

	Music
	Recorded Music		78,057		80,429		+3.0			738
	Music Publishing		18,273		16,366		-10.4			150
	Visual Media and Platform		16,401		17,876		+9.0			164
	Total		112,731		114,671		+1.7			1,052

	Financial Services		242,495		268,192		+10.6			2,460
	All Other		193,306		87,797		-54.6			805
	Corporate		15,615		14,997		-4.0			138
	Consolidated total	¥	1,774,235	¥	1,901,511		+7.2	%	$	17,445

	The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-6. Sony management views each segment as a single operating segment. However, Sony believes that the breakdown of sales and operating revenue to external customers for the segments in this table is useful to investors in understanding sales by product category.

	Sony has realigned its product category configuration from the first quarter of the fiscal year ending March 31, 2015. In connection with the realignment, all prior period sales amounts by product category in the table above have been reclassified to conform to the current presentation.

	In the IP&S segment, Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products. In the HE&S segment, Televisions includes LCD televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones, and memory-based portable audio devices. In the Devices segment, Semiconductors includes image sensors; Components includes batteries, recording media and data recording systems. In the Pictures segment, Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks. In the Music segment, Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

F-8

Sales to Customers by Product Category
		(Millions of yen, millions of U.S. dollars)
		Six months ended September 30
Sales and operating revenue (to external customers)		2013		2014		Change			2014

	Mobile Communications	¥	589,993	¥	622,649		+5.5	%	$	5,712

	Game & Network Services		260,167		517,122		+98.8			4,744

	Imaging Products & Solutions
	Digital Imaging Products		220,135		215,700		-2.0			1,979
	Professional Solutions		127,198		120,538		-5.2			1,106
	Other		7,116		5,050		-29.0			46
	Total		354,449		341,288		-3.7			3,131

	Home Entertainment & Sound
	Televisions		359,692		404,731		+12.5			3,713
	Audio and Video		174,948		161,137		-7.9			1,478
	Other		2,857		744		-74.0			7
	Total		537,497		566,612		+5.4			5,198

	Devices
	Semiconductors		168,599		200,874		+19.1			1,843
	Components		120,664		121,795		+0.9			1,117
	Other		1,166		3,212		+175.5			30
	Total		290,429		325,881		+12.2			2,990

	Pictures
	Motion Pictures		168,790		201,965		+19.7			1,853
	Television Productions		85,318		86,621		+1.5			795
	Media Networks		82,414		87,987		+6.8			807
	Total		336,522		376,573		+11.9			3,455

	Music
	Recorded Music		158,731		159,824		+0.7			1,466
	Music Publishing		30,854		32,654		+5.8			300
	Visual Media and Platform		32,321		35,669		+10.4			327
	Total		221,906		228,147		+2.8			2,093

	Financial Services		492,665		513,942		+4.3			4,715
	All Other		370,990		192,429		-48.1			1,765
	Corporate		31,036		26,776		-13.7			247
	Consolidated total	¥	3,485,654	¥	3,711,419		+6.5	%	$	34,050

	The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-7. Sony management views each segment as a single operating segment. However, Sony believes that the breakdown of sales and operating revenue to external customers for the segments in this table is useful to investors in understanding sales by product category.

	Sony has realigned its product category configuration from the first quarter of the fiscal year ending March 31, 2015. In connection with the realignment, all prior period sales amounts by product category in the table above have been reclassified to conform to the current presentation.

	In the IP&S segment, Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products. In the HE&S segment, Televisions includes LCD televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones, and memory-based portable audio devices. In the Devices segment, Semiconductors includes image sensors; Components includes batteries, recording media and data recording systems. In the Pictures segment, Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks. In the Music segment, Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

F-9

Other Items
		(Millions of yen, millions of U.S. dollars)
		Three months ended September 30
Depreciation and amortization		2013		2014		Change			2014

	Mobile Communications	¥	5,502	¥	4,435		-19.4	%	$	41
	Game & Network Services		4,221		4,426		+4.9			41
	Imaging Products & Solutions		9,472		8,293		-12.4			76
	Home Entertainment & Sound		6,620		6,138		-7.3			56
	Devices		26,171		21,588		-17.5			198
	Pictures		4,639		4,691		+1.1			43
	Music		3,601		3,420		-5.0			31
	Financial Services, including deferred insurance acquisition costs		15,546		13,602		-12.5			125
	All Other		7,393		3,226		-56.4			30
	Total		83,165		69,819		-16.0			641

	Corporate		12,862		12,630		-1.8			115
	Consolidated total	¥	96,027	¥	82,449		-14.1	%	$	756

		(Millions of yen, millions of U.S. dollars)
		Three months ended September 30, 2013
Restructuring charges and associated depreciation		Total net restructuring charges		Depreciation associated with restructured assets		Total

	Mobile Communications	¥	2,391	¥	-	¥	2,391
	Game & Network Services		381	-			381
	Imaging Products & Solutions		1,403	-			1,403
	Home Entertainment & Sound		553	-			553
	Devices		1,053	-			1,053
	Pictures		456	-			456
	Music		78	-			78
	Financial Services	-		-		-
	All Other and Corporate		1,381		110		1,491
	Consolidated total	¥	7,696	¥	110	¥	7,806

		Three months ended September 30, 2014
Restructuring charges and associated depreciation		Total net restructuring charges		Depreciation associated with restructured assets		Total

	Mobile Communications	¥	43	¥	-	¥	43
	Game & Network Services	-		-		-
	Imaging Products & Solutions		71	-			71
	Home Entertainment & Sound		38	-			38
	Devices		2,271		552		2,823
	Pictures		16	-			16
	Music		34	-			34
	Financial Services	-		-		-
	All Other and Corporate		6,278		121		6,399
	Consolidated total	¥	8,751	¥	673	¥	9,424

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 to coincide with the earlier end of production under an approved restructuring plan. Any impairment of the assets is recognized immediately in the period it is identified.

		Three months ended September 30, 2014
Restructuring charges and associated depreciation		Total net restructuring charges		Depreciation associated with restructured assets		Total

	Mobile Communications	$	0	$	-	$	0
	Game & Network Services	-		-		-
	Imaging Products & Solutions		1	-			1
	Home Entertainment & Sound		0	-			0
	Devices		21		5		26
	Pictures		0	-			0
	Music		0	-			0
	Financial Services	-		-		-
	All Other and Corporate		58		1		59
	Consolidated total	$	80	$	6	$	86

F-10

Other Items
		(Millions of yen, millions of U.S. dollars)
		Six months ended September 30
Depreciation and amortization		2013		2014		Change			2014

	Mobile Communications	¥	10,921	¥	10,879		-0.4	%	$	100
	Game & Network Services		7,867		8,426		+7.1			77
	Imaging Products & Solutions		19,322		15,260		-21.0			140
	Home Entertainment & Sound		13,228		12,243		-7.4			112
	Devices		51,860		42,602		-17.9			391
	Pictures		8,986		9,256		+3.0			85
	Music		7,191		6,767		-5.9			62
	Financial Services, including deferred insurance acquisition costs		29,503		29,221		-1.0			268
	All Other		14,576		6,692		-54.1			62
	Total		163,454		141,346		-13.5			1,297

	Corporate		25,502		25,401		-0.4			233
	Consolidated total	¥	188,956	¥	166,747		-11.8	%	$	1,530

		(Millions of yen, millions of U.S. dollars)
		Six months ended September 30, 2013
Restructuring charges and associated depreciation		Total net restructuring charges		Depreciation associated with restructured assets		Total

	Mobile Communications	¥	3,146	¥	-	¥	3,146
	Game & Network Services		382	-			382
	Imaging Products & Solutions		2,132	-			2,132
	Home Entertainment & Sound		713		19		732
	Devices		2,429	-			2,429
	Pictures		871	-			871
	Music		104	-			104
	Financial Services	-		-		-
	All Other and Corporate		2,320		344		2,664
	Consolidated total	¥	12,097	¥	363	¥	12,460

		Six months ended September 30, 2014
Restructuring charges and associated depreciation		Total net restructuring charges		Depreciation associated with restructured assets		Total

	Mobile Communications	¥	57	¥	-	¥	57
	Game & Network Services		64	-			64
	Imaging Products & Solutions		199	-			199
	Home Entertainment & Sound		577	-			577
	Devices		2,813		552		3,365
	Pictures		16	-			16
	Music		60	-			60
	Financial Services	-		-		-
	All Other and Corporate		19,558		790		20,348
	Consolidated total	¥	23,344	¥	1,342	¥	24,686

		Six months ended September 30, 2014
Restructuring charges and associated depreciation		Total net restructuring charges		Depreciation associated with restructured assets		Total

	Mobile Communications	$	1	$	-	$	1
	Game & Network Services		1	-			1
	Imaging Products & Solutions		2	-			2
	Home Entertainment & Sound		5	-			5
	Devices		25		5		30
	Pictures		0	-			0
	Music		1	-			1
	Financial Services	-		-		-
	All Other and Corporate		179		7		186
	Consolidated total	$	214	$	12	$	226

F-11

Geographic Information
		(Millions of yen, millions of U.S. dollars)
		Three months ended September 30
Sales and operating revenue (to external customers)		2013		2014		Change			2014

	Japan	¥	510,837	¥	499,545		-2.2	%	$	4,583
	United States		266,872		327,838		+22.8			3,008
	Europe		379,851		461,395		+21.5			4,233
	China		145,883		144,540		-0.9			1,326
	Asia-Pacific		245,377		259,396		+5.7			2,380
	Other Areas		225,415		208,797		-7.4			1,915
	Total	¥	1,774,235	¥	1,901,511		+7.2	%	$	17,445

		Six months ended September 30
Sales and operating revenue (to external customers)		2013		2014		Change			2014

	Japan	¥	1,042,587	¥	1,010,924		-3.0	%	$	9,275
	United States		519,414		633,124		+21.9			5,808
	Europe		708,055		853,591		+20.6			7,831
	China		269,114		277,581		+3.1			2,547
	Asia-Pacific		502,787		504,269		+0.3			4,626
	Other Areas		443,697		431,930		-2.7			3,963
	Total	¥	3,485,654	¥	3,711,419		+6.5	%	$	34,050

Geographic Information shows sales and operating revenue recognized by location of customers.
Major areas in each geographic segment excluding Japan, United States and China are as follows:
	(1) Europe: United Kingdom, France, Germany, Russia, Spain and Sweden
	(2) Asia-Pacific: India, South Korea and Oceania
	(3) Other Areas: The Middle East/Africa, Brazil, Mexico and Canada

F-12

Condensed Financial Services Financial Statements

The results of the Financial Services segment are included in Sony’s consolidated financial statements. The following schedules show unaudited condensed financial statements for the Financial Services segment and all other segments excluding Financial Services. These presentations are not in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which is used by Sony to prepare its consolidated financial statements. However, because the Financial Services segment is different in nature from Sony’s other segments, Sony believes that a comparative presentation may be useful in understanding and analyzing Sony’s consolidated financial statements. Transactions between the Financial Services segment and Sony without the Financial Services segment, including noncontrolling interests, are included in those respective presentations, then eliminated in the consolidated figures shown below.

Condensed Balance Sheets
	(Millions of yen, millions of U.S. dollars)
Financial Services	March 31		September 30
	2014		2014		2014
ASSETS
Current assets:
Cash and cash equivalents	¥	240,332	¥	154,194	$	1,415
Marketable securities		828,944		933,499		8,564
Other		147,241		144,676		1,327
		1,216,517		1,232,369		11,306

Investments and advances		7,567,242		7,841,610		71,941
Property, plant and equipment		17,057		17,133		157
Other assets:
Deferred insurance acquisition costs		497,772		512,015		4,697
Other		49,328		47,027		433
		547,100		559,042		5,130
Total assets	¥	9,347,916	¥	9,650,154	$	88,534

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	6,148	¥	16,514	$	152
Deposits from customers in the banking business		1,890,023		1,824,665		16,740
Other		175,499		197,422		1,811
		2,071,670		2,038,601		18,703

Long-term debt		44,678		44,625		409
Future insurance policy benefits and other		3,824,572		3,982,461		36,536
Policyholders’ account in the life insurance business		2,023,472		2,130,408		19,545
Other		302,521		311,701		2,861
Total liabilities		8,266,913		8,507,796		78,054

Equity:
Stockholders’ equity of Financial Services		1,079,740		1,141,075		10,469
Noncontrolling interests		1,263		1,283		11
Total equity		1,081,003		1,142,358		10,480
Total liabilities and equity	¥	9,347,916	¥	9,650,154	$	88,534

F-13

	(Millions of yen, millions of U.S. dollars)
Sony without Financial Services	March 31		September 30
	2014		2014		2014
ASSETS
Current assets:
Cash and cash equivalents	¥	806,134	¥	456,315	$	4,186
Marketable securities		3,622		3,230		30
Notes and accounts receivable, trade		864,178		996,667		9,144
Other		1,316,653		1,667,614		15,299
		2,990,587		3,123,826		28,659

Film costs		275,799		295,121		2,708
Investments and advances		381,076		377,454		3,463
Investments in Financial Services, at cost		111,476		111,476		1,023
Property, plant and equipment		732,953		732,723		6,722
Other assets		1,640,385		1,476,610		13,546
Total assets	¥	6,132,276	¥	6,117,210	$	56,121

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	371,606	¥	232,180	$	2,130
Notes and accounts payable, trade		712,829		889,973		8,165
Other		1,629,728		1,700,013		15,596
		2,714,163		2,822,166		25,891

Long-term debt		875,440		704,678		6,465
Accrued pension and severance costs		262,558		258,306		2,370
Other		462,386		467,970		4,293
Total liabilities		4,314,547		4,253,120		39,019

Redeemable noncontrolling interest		4,115		4,277		39

Equity:
Stockholders’ equity of Sony without Financial Services		1,722,743		1,766,089		16,203
Noncontrolling interests		90,871		93,724		860
Total equity		1,813,614		1,859,813		17,063
Total liabilities and equity	¥	6,132,276	¥	6,117,210	$	56,121

	(Millions of yen, millions of U.S. dollars)
Consolidated			September 30
		2014	2014		2014
ASSETS
Current assets:
Cash and cash equivalents	¥	1,046,466	¥	610,509	$	5,601
Marketable securities		832,566		936,729		8,594
Notes and accounts receivable, trade		871,040		1,002,320		9,196
Other		1,454,814		1,802,923		16,540
		4,204,886		4,352,481		39,931

Film costs		275,799		295,121		2,708
Investments and advances		7,919,011		8,137,712		74,658
Property, plant and equipment		750,010		751,140		6,891
Other assets:
Deferred insurance acquisition costs		497,772		512,015		4,697
Other		1,686,242		1,520,535		13,950
		2,184,014		2,032,550		18,647
Total assets	¥	15,333,720	¥	15,569,004	$	142,835

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	377,754	¥	248,694	$	2,282
Notes and accounts payable, trade		712,829		889,973		8,165
Deposits from customers in the banking business		1,890,023		1,824,665		16,740
Other		1,803,008		1,895,767		17,392
		4,783,614		4,859,099		44,579

Long-term debt		916,648		745,832		6,842
Accrued pension and severance costs		284,963		281,644		2,584
Future insurance policy benefits and other		3,824,572		3,982,461		36,536
Policyholders’ account in the life insurance business		2,023,472		2,130,408		19,545
Other		713,195		726,102		6,662
Total liabilities		12,546,464		12,725,546		116,748

Redeemable noncontrolling interest		4,115		4,277		39

Equity:
Sony Corporation’s stockholders’ equity		2,258,137		2,286,769		20,980
Noncontrolling interests		525,004		552,412		5,068
Total equity		2,783,141		2,839,181		26,048
Total liabilities and equity	¥	15,333,720	¥	15,569,004	$	142,835

F-14

Condensed Statements of Income
	(Millions of yen, millions of U.S. dollars)
	Three months ended September 30
Financial Services	2013			2014		Change			2014

Financial services revenue	¥	243,714		¥	269,576		+10.6	%	$	2,473
Financial services expenses		204,823			222,224		+8.5			2,039
Equity in net income (loss) of affiliated companies		(503	)		334	-				3
Operating income		38,388			47,686		+24.2			437
Other income (expenses), net		62		-		-			-
Income before income taxes		38,450			47,686		+24.0			437
Income taxes and other		12,363			14,786		+19.6			135
Net income of Financial Services	¥	26,087		¥	32,900		+26.1	%	$	302

	(Millions of yen, millions of U.S. dollars)
	Three months ended September 30
Sony without Financial Services	2013			2014			Change			2014

Net sales and operating revenue	¥	1,532,614		¥	1,634,224			+6.6	%	$	14,993
Costs and expenses		1,556,069			1,716,280			+10.3			15,746
Equity in net income (loss) of affiliated companies		(1,522	)		295		-				3
Operating loss		(24,977	)		(81,761	)	-				(750	)
Other income (expenses), net		(8,345	)		(4,366	)	-				(40	)
Loss before income taxes		(33,322	)		(86,127	)	-				(790	)
Income taxes and other		1,873			18,069			+864.7			166
Net loss of Sony without Financial Services	¥	(35,195	)	¥	(104,196	)	-		%	$	(956	)

	(Millions of yen, millions of U.S. dollars)
	Three months ended September 30
Consolidated	2013			2014			Change			2014

Financial services revenue	¥	242,495		¥	268,192			+10.6	%	$	2,460
Net sales and operating revenue		1,531,740			1,633,319			+6.6			14,985
		1,774,235			1,901,511			+7.2			17,445
Costs and expenses		1,758,281			1,987,728			+13.0			18,236
Equity in net income (loss) of affiliated companies		(2,025	)		629		-				6
Operating income (loss)		13,929			(85,588	)	-				(785	)
Other income (expenses), net		(8,800	)		(4,367	)	-				(40	)
Income (loss) before income taxes		5,129			(89,955	)	-				(825	)
Income taxes and other		24,760			46,014			+85.8			422
Net loss attributable to Sony Corporation’s stockholders	¥	(19,631	)	¥	(135,969	)	-		%	$	(1,247	)

F-15

Condensed Statements of Income

	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
Financial Services	2013			2014		Change			2014

Financial services revenue	¥	495,119		¥	516,543		+4.3	%	$	4,739
Financial services expenses		410,372			425,141		+3.6			3,901
Equity in net income (loss) of affiliated companies		(1,250	)		56	-				1
Operating income		83,497			91,458		+9.5			839
Other income (expenses), net		119		-		-			-
Income before income taxes		83,616			91,458		+9.4			839
Income taxes and other		27,268			28,637		+5.0			263
Net income of Financial Services	¥	56,348		¥	62,821		+11.5	%	$	576

	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
Sony without Financial Services	2013			2014			Change			2014

Net sales and operating revenue	¥	2,994,168		¥	3,199,509			+6.9	%	$	29,353
Costs and expenses		3,028,038			3,259,003			+7.6			29,899
Equity in net income (loss) of affiliated companies		(1,200	)		3,774		-				35
Operating loss		(35,070	)		(55,720	)	-				(511	)
Other income (expenses), net		8,500			2,027			-76.2			18
Loss before income taxes		(26,570	)		(53,693	)	-				(493	)
Income taxes and other		17,129			33,817			+97.4			310
Net loss of Sony without Financial Services	¥	(43,699	)	¥	(87,510	)	-		%	$	(803	)

	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
Consolidated	2013			2014			Change			2014

Financial services revenue	¥	492,665		¥	513,942			+4.3	%	$	4,715
Net sales and operating revenue		2,992,989			3,197,477			+6.8			29,335
		3,485,654			3,711,419			+6.5			34,050
Costs and expenses		3,433,778			3,731,023			+8.7			34,230
Equity in net income (loss) of affiliated companies		(2,450	)		3,830		-				35
Operating income (loss)		49,426			(15,774	)	-				(145	)
Other income (expenses), net		1,096			(5,804	)	-				(53	)
Income (loss) before income taxes		50,522			(21,578	)	-				(198	)
Income taxes and other		67,026			87,583			+30.7			803
Net loss attributable to Sony Corporation’s stockholders	¥	(16,504	)	¥	(109,161	)	-		%	$	(1,001	)

F-16

Condensed Statements of Cash Flows
	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
Financial Services	2013		2014		2014

Net cash provided by operating activities	¥	208,182	¥	222,115	$	2,038
Net cash used in investing activities		(231,767)		(282,765)		(2,594)
Net cash provided by (used in) financing activities		19,675		(25,488)		(234)
Net decrease in cash and cash equivalents		(3,910)		(86,138)		(790)
Cash and cash equivalents at beginning of the fiscal year		201,550		240,332		2,205
Cash and cash equivalents at end of the period	¥	197,640	¥	154,194	$	1,415


	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
Sony without Financial Services	2013		2014		2014

Net cash used in operating activities	¥	(214,273)	¥	(110,210)	$	(1,011)
Net cash provided by (used in) investing activities		7,652		(94)		(1)
Net cash provided by (used in) financing activities		84,847		(255,359)		(2,343)
Effect of exchange rate changes on cash and cash equivalents		24,991		15,844		145
Net decrease in cash and cash equivalents		(96,783)		(349,819)		(3,210)
Cash and cash equivalents at beginning of the fiscal year		624,811		806,134		7,396
Cash and cash equivalents at end of the period	¥	528,028	¥	456,315	$	4,186


	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
Consolidated	2013		2014		2014

Net cash provided by (used in) operating activities	¥	(12,760)	¥	104,075	$	955
Net cash used in investing activities		(224,111)		(282,859)		(2,595)
Net cash provided by (used in) financing activities		111,187		(273,017)		(2,505)
Effect of exchange rate changes on cash and cash equivalents		24,991		15,844		145
Net decrease in cash and cash equivalents		(100,693)		(435,957)		(4,000)
Cash and cash equivalents at beginning of the fiscal year		826,361		1,046,466		9,601
Cash and cash equivalents at end of the period	¥	725,668	¥	610,509	$	5,601

F-17

(Notes)

1.	U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥109 = U.S. $1, the approximate Tokyo foreign exchange market rate as of September 30, 2014.

2.	As of September 30, 2014, Sony had 1,271 consolidated subsidiaries (including variable interest entities) and 102 affiliated companies accounted for under the equity method.

3.	The weighted-average number of outstanding shares used for the computation of earnings per share of common stock are as follows:

Weighted-average number of outstanding shares	(Thousands of shares)
	Three months ended September 30
Net loss attributable to Sony Corporation’s stockholders	2013		2014
— Basic		1,019,875		1,093,725
— Diluted		1,019,875		1,093,725

Weighted-average number of outstanding shares	(Thousands of shares)
	Six months ended September 30
Net loss attributable to Sony Corporation’s stockholders	2013		2014
— Basic		1,015,395		1,068,703
— Diluted		1,015,395		1,068,703

All potential shares were excluded as anti-dilutive for the three and six months ended September 30, 2013 and 2014 due to Sony incurring a net loss attributable to Sony Corporation’s stockholders for the respective periods.

4.	Recently adopted accounting pronouncements:

Obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date

In February 2013, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, plus any additional amount the reporting entity expects to pay on behalf of its co-obligors. This guidance was effective for Sony as of April 1, 2014. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

Parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity

In March 2013, the FASB issued new accounting guidance for the parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance resolved diversity in practice and clarifies the applicable guidance for the release of the cumulative translation adjustment when the parent sells a part or all of its investment in a foreign entity, ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, or obtains control in a business combination achieved in stages involving an equity method investment that is a foreign entity. After adoption of this guidance, any accumulated translation adjustments associated with a previously held equity interest, are included in earnings in a business combination achieved in stages. This guidance was effective for Sony as of April 1, 2014. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists

In July 2013, the FASB issued new accounting guidance for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance requires an unrecognized tax benefit to be presented as a reduction to a deferred tax asset for a net operating loss, a similar tax loss, or a tax credit carryforward if certain criteria are met. This guidance was effective for Sony as of April 1, 2014. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

F-18

Sony realigned its business segments for the first quarter of the fiscal year ending March 31, 2015 to reflect modifications to its organizational structure as of April 1, 2014, primarily repositioning the operations of the previously reported Game and Mobile Products & Communications (“MP&C”) segments. In connection with this realignment, the previously-reported operations of the network business which were included in All Other are now integrated with the previously-reported Game segment and are reported as the G&NS segment. The previously reported Mobile Communications category which was included in the MP&C segment has been reclassified as the newly established Mobile Communications segment, while the other categories in the previously reported MP&C segment are now included in All Other. This includes the reclassification of the PC business into All Other. As of the first quarter of the fiscal year ending March 31, 2015, the power supply business, which was previously included in the Devices segment, has been integrated into All Other to reflect modifications Sony made to its organizational structure as of June 1, 2014. For further details of new segments and categories, see page F-8 and F-9. In connection with this realignment, the sales and operating revenue and operating income (loss) of each segment for the comparable period have been reclassified to conform to the current quarter’s presentation.

Sony estimates the annual effective tax rate ("ETR") derived from a projected annual net income before taxes and calculates the interim period income tax provision based on the year-to-date income tax provision computed by applying the ETR to the year-to-date net income before taxes at the end of each interim period. The income tax provision based on the ETR reflects anticipated income tax credits and net operating loss carryforwards; however, it excludes the income tax provision related to significant unusual or extraordinary transactions. Such income tax provision is separately reported from the provision based on the ETR in the interim period in which they occur.

Certain reclassifications of the financial statements and accompanying footnotes for the three and six months ended September 30, 2013 have been made to conform to the presentation for the three and six months ended September 30, 2014. Reclassifications include changes in the presentation and disclosure related to internal-use software, effective on March 31, 2014. Due to the changes, the amortization of internal-use software was reclassified from other to depreciation and amortization, including amortization of deferred insurance acquisition costs in the cash flows from operating activities section of the consolidated statements of cash flows. Depreciation and amortization in the business segment information were also reclassified, accordingly.

During the fourth quarter of the fiscal year ended March 31, 2014, Sony revised its financial statements related to the recognition of revenue for certain of its universal life insurance contracts as disclosed in the previous fiscal year. Accordingly, certain financial information for the comparable period has been revised. The principal amounts that have been revised are indicated below.

	(Millions of yen)
	Three months ended September 30, 2013
	As previously reported			As adjusted
Consolidated Statements of Income
Financial services revenue	¥	243,746		¥	242,495
Financial services expenses		204,012			203,596
Net loss		(5,637	)		(6,210	)

Consolidated Statements of Comprehensive Income
Unrealized gains on securities		16,807			17,440
Comprehensive loss attributable to Sony Corporation’s stockholders		(6,307	)		(6,271	)

F-19

	(Millions of yen)
	Six months ended September 30, 2013
	As previously reported		As adjusted
Consolidated Statements of Income
Financial services revenue	¥	495,209	¥	492,665
Financial services expenses		408,742		407,893
Net income		13,876		12,715

Consolidated Statements of Comprehensive Income
Unrealized gains on securities		2,876		2,546
Comprehensive income attributable to Sony Corporation’s stockholders		51,762		50,868

Consolidated Statements of Cash Flows
Increase in future insurance policy benefits and other		205,633		205,663
Increase in deposits from customers in the financial services business, net		14,116		16,660

Other Consolidated Financial Data

	(Millions of yen, millions of U.S. dollars)
	Three months ended September 30
	2013			2014			2014
Capital expenditures*	¥	57,504		¥	57,393		$	527
(Additions to property, plant and equipment)		(38,043	)		(39,199	)		(360	)
(Additions to intangible assets)		(19,461	)		(18,194	)		(167	)
Depreciation and amortization expenses**		96,027			82,449			756
(Depreciation expenses for property, plant and equipment)		(49,305	)		(39,411	)		(361	)
(Amortization expenses for intangible assets)		(46,722	)		(43,038	)		(395	)
Research and development expenses		118,047			115,080			1,056

	(Millions of yen, millions of U.S. dollars)
	Six months ended September 30
	2013			2014			2014
Capital expenditures*	¥	128,826		¥	112,621		$	1,033
(Additions to property, plant and equipment)		(89,495	)		(76,326	)		(700	)
(Additions to intangible assets)		(39,331	)		(36,295	)		(333	)
Depreciation and amortization expenses**		188,956			166,747			1,530
(Depreciation expenses for property, plant and equipment)		(97,699	)		(77,985	)		(716	)
(Amortization expenses for intangible assets)		(91,257	)		(88,762	)		(814	)
Research and development expenses		228,611			222,006			2,037

*	Excluding additions for tangible and intangible assets from business combinations.
**	Including amortization expenses for intangible assets and for deferred insurance acquisition costs.

F-20