Sony (SONY) 6-K Sony Corporation 6-K

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 July 2019

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/  Hiroki Totoki

                (Signature)

Hiroki Totoki

Senior Executive Vice President and

Chief Financial Officer

Date: July 30, 2019

List of materials

Documents attached hereto:

i) Quarterly Financial Statements for the First Quarter Ended June 30, 2019 And Outlook for the Fiscal Year Ending March 31, 2020

Quarterly Financial Statements

for the First Quarter Ended June 30, 2019

And

Outlook for the Fiscal Year Ending March 31, 2020

July 30, 2019

Sony Corporation

Quarterly Financial Statements (Unaudited)	F-1
Consolidated Balance Sheets	F-1
Consolidated Statements of Income (Three months ended June 30)	F-2
Consolidated Statements of Comprehensive Income (Three months ended June 30)	F-2
Consolidated Statements of Cash Flows (Three months ended June 30)	F-3
Notes to Consolidated Financial Statements	F-4
-Business Segment Information	F-4
-Going Concern Assumption	F-9
-Significant Changes in Shareholders’ Equity	F-9
-Accounting Policies and Other Information	F-9
Outlook for the Fiscal Year Ending March 31, 2020	1
Outlook for the Fiscal Year Ending March 31, 2020	1
Cautionary Statement	4

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

Sony Corporation and its consolidated subsidiaries are together referred to as “Sony”.

(Unaudited)
Consolidated Financial Statements
Consolidated Balance Sheets
	(Millions of yen)
	March 31			June 30			Change from
ASSETS	2019			2019			March 31, 2019
Current assets:
Cash and cash equivalents	¥	1,470,073		¥	1,210,507		¥	-259,566
Marketable securities		1,324,538			1,398,196			+73,658
Notes and accounts receivable, trade and contract assets		1,091,242			1,130,271			+39,029
Allowance for doubtful accounts		(25,440	)		(24,734	)		+706
Inventories		653,278			693,646			+40,368
Other receivables		223,620			237,201			+13,581
Prepaid expenses and other current assets		509,301			561,846			+52,545
Total current assets		5,246,612			5,206,933			-39,679
Film costs		409,005			431,761			+22,756
Investments and advances:
Affiliated companies		163,365			182,839			+19,474
Securities investments and other		11,561,286			11,926,259			+364,973
		11,724,651			12,109,098			+384,447
Property, plant and equipment:
Land		83,992			83,102			-890
Buildings		664,157			645,274			-18,883
Machinery and equipment		1,585,382			1,528,937			-56,445
Construction in progress		39,208			62,152			+22,944
		2,372,739			2,319,465			-53,274
Less-Accumulated depreciation		1,595,686			1,543,732			-51,954
		777,053			775,733			-1,320
Other assets:
Operating lease right-of-use assets	－				300,626			+300,626
Finance lease right-of-use assets	－				37,406			+37,406
Intangibles, net		917,966			892,702			-25,264
Goodwill		768,552			751,204			-17,348
Deferred insurance acquisition costs		595,265			598,631			+3,366
Deferred income taxes		202,486			189,891			-12,595
Other		339,996			313,498			-26,498
		2,824,265			3,083,958			+259,693
Total assets	¥	20,981,586		¥	21,607,483		¥	+625,897
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	618,618		¥	817,188		¥	+198,570
Current portion of long-term debt		172,461			102,571			-69,890
Current portion of long-term operating lease liabilities	－				66,335			+66,335
Notes and accounts payable, trade		492,124			543,250			+51,126
Accounts payable, other and accrued expenses		1,693,048			1,469,123			-223,925
Accrued income and other taxes		135,226			156,211			+20,985
Deposits from customers in the banking business		2,302,314			2,339,871			+37,557
Other		666,024			749,452			+83,428
Total current liabilities		6,079,815			6,244,001			+164,186
Long-term debt		568,372			528,124			-40,248
Long-term operating lease liabilities	－				259,072			+259,072
Accrued pension and severance costs		384,232			380,183			-4,049
Deferred income taxes		531,421			530,743			-678
Future insurance policy benefits and other		5,642,671			5,751,239			+108,568
Policyholders’ account in the life insurance business		3,048,202			3,099,644			+51,442
Other		281,382			260,579			-20,803
Total liabilities		16,536,095			17,053,585			+517,490
Redeemable noncontrolling interest		8,801			8,625			-176
Equity:
Sony Corporation’s stockholders’ equity:
Common stock		874,291			874,887			+596
Additional paid-in capital		1,266,874			1,268,568			+1,694
Retained earnings		2,320,586			2,465,236			+144,650
Accumulated other comprehensive income		(610,670	)		(632,127	)		-21,457
Treasury stock, at cost		(104,704	)		(130,057	)		-25,353
		3,746,377			3,846,507			+100,130
Noncontrolling interests		690,313			698,766			+8,453
Total equity		4,436,690			4,545,273			+108,583
Total liabilities and equity	¥	20,981,586		¥	21,607,483		¥	+625,897

 

 

Consolidated Statements of Income
	(Millions of yen, except per share amounts)
	Three months ended June 30
	2018			2019			Change
Sales and operating revenue:
Net sales	¥	1,602,195		¥	1,558,646		¥	-43,549
Financial services revenue		333,240			334,820			+1,580
Other operating revenue		18,189			32,258			+14,069
		1,953,624			1,925,724			-27,900
Costs and expenses:
Cost of sales		1,112,487			1,061,038			-51,449
Selling, general and administrative		349,761			350,167			+406
Financial services expenses		292,156			288,493			-3,663
Other operating income, net		(325	)		(3,557	)		-3,232
		1,754,079			1,696,141			-57,938
Equity in net income (loss) of affiliated companies		(4,539	)		1,342			+5,881
Operating income		195,006			230,925			+35,919
Other income:
Interest and dividends		4,734			5,805			+1,071
Gain on equity securities, net		114,779			323			-114,456
Foreign exchange gain, net		1,011		－				-1,011
Other income		733			1,119			+386
		121,257			7,247			-114,010
Other expenses:
Interest expenses		3,318			4,880			+1,562
Foreign exchange loss, net	－				1,696			+1,696
Other expenses		859			578			-281
		4,177			7,154			+2,977
Income before income taxes		312,086			231,018			-81,068
Income taxes		75,222			65,012			-10,210
Net income		236,864			166,006			-70,858
Less - Net income attributable to noncontrolling interests		10,417			13,884			+3,467
Net income attributable to Sony Corporation’s
stockholders	¥	226,447		¥	152,122		¥	-74,325
Per share data:
Net income attributable to Sony Corporation’s
stockholders
— Basic	¥	178.66		¥	121.78		¥	-56.88
— Diluted		174.80			119.22			-55.58
Consolidated Statements of Comprehensive Income
	(Millions of yen)
	Three months ended June 30
		2018			2019		Change
Net income	¥	236,864		¥	166,006		¥	-70,858
Other comprehensive income, net of tax –
Unrealized gains on securities		3,271			26,301			+23,030
Unrealized gains on derivative instruments		1,478			764			-714
Pension liability adjustment		2,276			2,914			+638
Foreign currency translation adjustments		8,297			(42,698	)		-50,995
Total comprehensive income		252,186			153,287			-98,899
Less - Comprehensive income attributable
to noncontrolling interests		7,917			22,622			+14,705
Comprehensive income attributable
to Sony Corporation’s stockholders	¥	244,269		¥	130,665		¥	-113,604

 

Consolidated Statements of Cash Flows
	(Millions of yen)
	Three months ended June 30
	2018			2019
Cash flows from operating activities:
Net income	¥	236,864		¥	166,006
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization, including amortization of deferred insurance acquisition costs and contract costs		86,243			93,412
Amortization of film costs		58,001			56,546
Accrual for pension and severance costs, less payments		(1,881	)		5
Other operating income, net		(325	)		(3,557	)
Gain on securities investments, net (other than financial services business)		(114,778	)		(329	)
Gain on marketable securities and securities investments held in the financial services business, net		(43,547	)		(9,172	)
Deferred income taxes		1,215			(1,352	)
Equity in net loss of affiliated companies, net of dividends		6,642			1,196
Changes in assets and liabilities:
Increase in notes, accounts receivable, trade and contract assets		(46,041	)		(85,901	)
Increase in inventories		(7,206	)		(51,976	)
Increase in film costs		(82,734	)		(91,680	)
Increase in notes and accounts payable, trade		109,783			55,807
Increase in accrued income and other taxes		26,307			6,836
Increase in future insurance policy benefits and other		173,976			138,925
Increase in deferred insurance acquisition costs		(23,352	)		(22,185	)
Increase in marketable securities held in the life insurance business		(21,421	)		(59,080	)
Increase in other current assets		(34,211	)		(39,226	)
Decrease in other current liabilities		(162,437	)		(205,943	)
Other		(64,327	)		50,845
Net cash provided by (used in) operating activities		96,771			(823	)
Cash flows from investing activities:
Payments for purchases of fixed assets		(73,179	)		(78,264	)
Proceeds from sales of fixed assets		3,923			7,409
Payments for investments and advances by financial services business		(267,217	)		(302,434	)
Payments for investments and advances (other than financial services business)		(3,916	)		(22,969	)
Proceeds from sales or return of investments and collections of advances by financial services business		64,074			72,375
Proceeds from sales or return of investments and collections of advances (other than financial services business)		635			303
Proceeds related to sales of Spotify Technology S.A. Shares		82,467			—
Other		(4,148	)		427
Net cash used in investing activities		(197,361	)		(323,153	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		20,300			5,775
Payments of long-term debt		(175,444	)		(114,297	)
Increase in short-term borrowings, net		128,164			198,835
Increase in deposits from customers in the financial services business, net		63,798			57,354
Dividends paid		(19,013	)		(25,035	)
Payments for purchase of treasury stock		(41	)		(25,354	)
Other		(39,860	)		(10,622	)
Net cash provided by (used in) financing activities		(22,096	)		86,656
Effect of exchange rate changes on cash and cash equivalents, including restricted		44,311			(23,451	)
Net decrease in cash and cash equivalents, including restricted		(78,375	)		(260,771	)
Cash and cash equivalents, including restricted, at beginning of the fiscal year		1,592,938			1,473,813
Cash and cash equivalents, including restricted, at end of the period		1,514,563			1,213,042
Less - restricted cash and cash equivalents, included in other current assets and		5,112			2,535
other assets
Cash and cash equivalents at end of the period	¥	1,509,451		¥	1,210,507

Notes to Consolidated Financial Statements
Business Segment Information
(Business Segments)
	(Millions of yen)
	Three months ended June 30
Sales and operating revenue	2018				2019			Change
Game & Network Services
Customers		¥	449,980		¥	441,750		¥	-8,230
Intersegment			22,121			15,711			-6,410
Total			472,101			457,461			-14,640
Music
Customers			177,708			200,038			+22,330
Intersegment			3,763			2,215			-1,548
Total			181,471			202,253			+20,782
Pictures
Customers			173,227			185,759			+12,532
Intersegment			1,854			329			-1,525
Total			175,081			186,088			+11,007
Electronics Products & Solutions
Customers			564,794			480,656			-84,138
Intersegment			3,364			3,259			-105
Total			568,158			483,915			-84,243
Imaging & Sensing Solutions
Customers			176,673			211,175			+34,502
Intersegment			25,566			19,503			-6,063
Total			202,239			230,678			+28,439
Financial Services
Customers			333,240			334,820			+1,580
Intersegment			1,965			2,115			+150
Total			335,205			336,935			+1,730
All Other
Customers			74,447			60,632			-13,815
Intersegment			8,477			8,959			+482
Total			82,924			69,591			-13,333
Corporate and elimination			(63,555	)		(41,197	)		+22,358
Consolidated total		¥	1,953,624		¥	1,925,724		¥	-27,900
Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other. Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the Electronics Products & Solutions (“EP&S”) segment. All Other intersegment amounts primarily consist of transactions with the G&NS segment, the Music segment and the Pictures segment. Corporate and elimination includes certain brand and patent royalty income.
	(Millions of yen)
	Three months ended June 30
Operating income (loss)			2018			2019			Change
Game & Network Services		¥	83,450		¥	73,804		¥	-9,646
Music			32,104			38,277			+6,173
Pictures			(7,601	)		376			+7,977
Electronics Products & Solutions			32,710			25,066			-7,644
Imaging & Sensing Solutions			29,137			49,528			+20,391
Financial Services			40,581			46,105			+5,524
All Other			294			(2,602	)		-2,896
Total			210,675			230,554			+19,879
Corporate and elimination			(15,669	)		371			+16,040
Consolidated total		¥	195,006		¥	230,925		¥	+35,919
Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies. The 2018 sales and operating revenue and operating income (loss) above has been reclassified to reflect the change in the business segment classification discussed on page F-10.

(Sales to Customers by Product Category)
The following table is a breakdown of sales and operating revenue to external customers for each segment. Sony management views each segment as a single operating segment.
	(Millions of yen)
	Three months ended June 30
Sales and operating revenue (to external customers)	2018		2019		Change
Game & Network Services
Digital Software and Add-on Content	¥	224,942	¥	215,964	¥	-8,978
Network Services		75,444		83,606		+8,162
Hardware and Others		149,594		142,180		-7,414
Total		449,980		441,750		-8,230
Music
Recorded Music		99,739		111,962		+12,223
Music Publishing		21,464		39,290		+17,826
Visual Media and Platform		56,505		48,786		-7,719
Total		177,708		200,038		+22,330
Pictures
Motion Pictures		68,568		80,870		+12,302
Television Productions		45,415		46,486		+1,071
Media Networks		59,244		58,403		-841
Total		173,227		185,759		+12,532
Electronics Products & Solutions
Televisions		186,550		147,761		-38,789
Audio and Video		84,929		78,743		-6,186
Still and Video Cameras		113,256		100,254		-13,002
Mobile Communications		130,354		100,550		-29,804
Other		49,705		53,348		+3,643
Total		564,794		480,656		-84,138
Imaging & Sensing Solutions		176,673		211,175		+34,502
Financial Services		333,240		334,820		+1,580
All Other		74,447		60,632		-13,815
Corporate		3,555		10,894		+7,339
Consolidated total	¥	1,953,624	¥	1,925,724	¥	-27,900
Sony has realigned its product category configuration in regard to the segmentation change. For further details, refer to Accounting Policies and Other Information in the Notes to Cosolidated Financial Statements. 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 G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on contents through network by Sony Interactive Entertainment; Network Services includes network services relating to game, video and music content; Hardware and Others includes home and portable game consoles, packaged software and peripheral devices. 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 the production and distribution of animation titles, including game applications based on the animation titles, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of motion pictures and direct-to-video content; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks worldwide. In the EP&S segment, Televisions includes LCD and OLED televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones and memory-based portable audio devices; Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Mobile Communications includes smartphones and an internet-related service business; Other includes display products such as projectors and medical equipment. Within the EP&S segment, the operating income (loss) of Mobile Communications for the first quarter of the fiscal years ended March 31, 2019 and 2020 was (10,758) million yen and 1,039 million yen, respectively.

(Condensed Financial Services 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)
			Financial Services				Sony without Financial Services				Consolidated
			March 31		June 30		March 31		June 30		March 31		June 30
			2019		2019		2019		2019		2019		2019
ASSETS
Current assets:
		Cash and cash equivalents	¥	509,595	¥	606,519	¥	960,478	¥	603,988	¥	1,470,073	¥	1,210,507
		Marketable securities		1,324,538		1,398,196		－		－		1,324,538		1,398,196
		Notes and accounts receivable, trade and contract assets		16,479		16,777		1,055,669		1,094,326		1,065,802		1,105,537
		Inventories		－		－		653,278		693,646		653,278		693,646
		Other receivables		63,921		62,577		159,758		174,740		223,620		237,201
		Prepaid expenses and other current assets		133,214		151,784		376,778		410,765		509,301		561,846
		Total current assets		2,047,747		2,235,853		3,205,961		2,977,465		5,246,612		5,206,933
Film costs				－		－		409,005		431,761		409,005		431,761
Investments and advances				11,400,938		11,765,931		399,696		418,774		11,724,651		12,109,098
Investments in Financial Services, at cost				－		－		153,968		153,968		－		－
Property, plant and equipment				22,920		16,400		752,847		758,047		777,053		775,733
Other assets:
		Right-of-use assets		－		55,336		－		283,299		－		338,032
		Intangibles, net		42,968		41,826		874,998		850,876		917,966		892,702
		Goodwill		7,225		7,225		761,327		743,979		768,552		751,204
		Deferred insurance acquisition costs		595,265		598,631		－		－		595,265		598,631
		Deferred income taxes		3,533		3,177		198,953		186,885		202,486		189,891
		Other		32,085		32,986		311,653		284,578		339,996		313,498
				681,076		739,181		2,146,931		2,349,617		2,824,265		3,083,958
	Total assets		¥	14,152,681	¥	14,757,365	¥	7,068,408	¥	7,089,632	¥	20,981,586	¥	21,607,483
LIABILITIES AND EQUITY
Current liabilities:
		Short-term borrowings	¥	564,609	¥	765,061	¥	226,470	¥	154,698	¥	791,079	¥	919,759
		Short-term operating lease liabilities		－		8,557		－		57,922		－		66,335
		Notes and accounts payable, trade		－		－		492,124		543,250		492,124		543,250
		Accounts payable, other and accrued expenses		40,228		29,276		1,653,895		1,440,917		1,693,048		1,469,123
		Accrued income and other taxes		19,655		13,747		115,571		142,464		135,226		156,211
		Deposits from customers in the banking business		2,302,314		2,339,871		－		－		2,302,314		2,339,871
		Other		197,123		327,145		474,926		427,639		666,024		749,452
		Total current liabilities		3,123,929		3,483,657		2,962,986		2,766,890		6,079,815		6,244,001
Long-term debt				235,761		235,937		336,349		296,252		568,372		528,124
Long-term operating lease liabilities				－		42,277		－		217,239		－		259,072
Accrued pension and severance costs				33,979		34,169		350,253		346,014		384,232		380,183
Deferred income taxes				355,356		365,366		176,065		165,548		531,421		530,743
Future insurance policy benefits and other				5,642,671		5,751,239		－		－		5,642,671		5,751,239
Policyholders’ account in the life insurance business				3,048,202		3,099,644		－		－		3,048,202		3,099,644
Other				15,488		16,809		288,164		265,662		281,382		260,579
Total liabilities				12,455,386		13,029,098		4,113,817		4,057,605		16,536,095		17,053,585
Redeemable noncontrolling interest				－		－		8,801		8,625		8,801		8,625
Equity:
Stockholders’ equity of Financial Services				1,695,563		1,726,450		－		－		－		－
Stockholders’ equity of Sony without Financial Services				－		－		2,850,380		2,930,494		－		－
Sony Corporation’s stockholders’ equity				－		－		－		－		3,746,377		3,846,507
Noncontrolling interests				1,732		1,817		95,410		92,908		690,313		698,766
Total equity				1,697,295		1,728,267		2,945,790		3,023,402		4,436,690		4,545,273
Total liabilities and equity			¥	14,152,681	¥	14,757,365	¥	7,068,408	¥	7,089,632	¥	20,981,586	¥	21,607,483

Condensed Statements of Income
		(Millions of yen)
		Three months ended June 30
		Financial Services				Sony without  Financial Services				Consolidated
		2018		2019		2018		2019		2018		2019
Financial services revenue		¥	335,205	¥	336,935	¥	－	¥	－	¥	333,240	¥	334,820
Net sales and operating revenue			－		－		1,622,334		1,592,343		1,620,384		1,590,904
			335,205		336,935		1,622,334		1,592,343		1,953,624		1,925,724
Cost of sales			－		－		1,115,436		1,063,869		1,112,487		1,061,038
Selling, general and administrative			－		－		348,763		348,777		349,761		350,167
Financial services expenses			294,120		290,606		－		－		292,156		288,493
Other operating (income) expense, net			25		36		(350)		(3,593)		(325)		(3,557)
			294,145		290,642		1,463,849		1,409,053		1,754,079		1,696,141
Equity in net income (loss) of affiliated companies			(479)		(188)		(4,060)		1,530		(4,539)		1,342
Operating income			40,581		46,105		154,425		184,820		195,006		230,925
Other income (expenses), net			(17)		(46)		133,541		17,830		117,080		93
Income before income taxes			40,564		46,059		287,966		202,650		312,086		231,018
Income taxes			11,532		13,982		63,691		51,030		75,222		65,012
Net income			29,032		32,077		224,275		151,620		236,864		166,006
	Less - Net income (loss) attributable to noncontrolling interests		46		86		(353)		2,624		10,417		13,884
Net income of Financial Services		¥	28,986	¥	31,991	¥	－	¥	－	¥	－	¥	－
Net income of Sony without Financial Services		¥	－	¥	－	¥	224,628	¥	148,996	¥	－	¥	－
Net income attributable to Sony Corporation's stockholders		¥	－	¥	－	¥	－	¥	－	¥	226,447	¥	152,122

Condensed Statements of Cash Flows
			(Millions of yen)
			Three months ended June 30
			Financial Services				Sony without  Financial Services				Consolidated
			2018		2019		2018		2019		2018		2019
Cash flows from operating activities:
	Net income  (loss)		¥	29,032	¥	32,077	¥	224,275	¥	151,620	¥	236,864	¥	166,006
	Adjustments to reconcile net income (loss) to net cash
	provided by (used in) operating activities:
		Depreciation and amortization, including amortization of
		deferred insurance acquisition costs and contract costs		17,906		22,151		68,337		71,261		86,243		93,412
		Amortization of film costs		－		－		58,001		56,546		58,001		56,546
		Other operating (income) expense, net		25		36		(350)		(3,593)		(325)		(3,557)
		(Gain) loss on marketable securities and
		securities investments, net		(43,547)		(9,172)		(114,778)		(329)		(158,325)		(9,501)
		Changes in assets and liabilities:
		(Increase) decrease in notes, accounts receivable, trade
		and contract assets		217		(298)		(45,734)		(84,822)		(46,041)		(85,901)
		(Increase) decrease in inventories		－		－		(7,206)		(51,976)		(7,206)		(51,976)
		(Increase) decrease in film costs		－		－		(82,734)		(91,680)		(82,734)		(91,680)
		Increase (decrease) in notes and accounts
		payable, trade		－		－		109,783		55,807		109,783		55,807
		Increase (decrease) in future insurance policy
		benefits and other		173,976		138,925		－		－		173,976		138,925
		(Increase) decrease in deferred insurance
		acquisition costs		(23,352)		(22,185)		－		－		(23,352)		(22,185)
		(Increase) decrease in marketable securities held
		in the life insurance business		(21,421)		(59,080)		－		－		(21,421)		(59,080)
		Other		(18,837)		(891)		(210,426)		(187,856)		(228,692)		(187,639)
		Net cash provided by (used in) operating activities		113,999		101,563		(832)		(85,022)		96,771		(823)
Cash flows from investing activities:
	Payments for purchases of fixed assets			(5,722)		(5,388)		(67,466)		(72,875)		(73,179)		(78,264)
	Payments for investments and advances			(267,217)		(302,434)		(3,916)		(22,969)		(271,133)		(325,403)
	Proceeds from sales or return of investments and
	collections of advances			64,074		72,375		83,102		303		147,176		72,678
	Other			35		22		(260)		7,814		(225)		7,836
		Net cash provided by (used in) investing activities		(208,830)		(235,425)		11,460		(87,727)		(197,361)		(323,153)
Cash flows from financing activities:
	Increase (decrease) in borrowings, net			130,449		200,622		(157,429)		(109,983)		(26,980)		90,313
	Increase (decrease) in deposits from customers, net			63,798		57,354		－		－		63,798		57,354
	Dividends paid			(26,100)		(27,189)		(19,013)		(25,035)		(19,013)		(25,035)
	Other			(534)		(1)		(29,654)		(26,477)		(39,901)		(35,976)
		Net cash provided by (used in) financing activities		167,613		230,786		(206,096)		(161,495)		(22,096)		86,656
Effect of exchange rate changes on cash and cash equivalents				－		－		44,311		(23,451)		44,311		(23,451)
Net increase (decrease) in cash and cash equivalents,
	including restricted			72,782		96,924		(151,157)		(357,695)		(78,375)		(260,771)
Cash and cash equivalents, including restricted,
	at beginning of the fiscal year			393,133		509,595		1,199,805		964,218		1,592,938		1,473,813
Cash and cash equivalents, including restricted,
	at end of the period			465,915		606,519		1,048,648		606,523		1,514,563		1,213,042
	Less - restricted cash and cash equivalents,
		included in other current assets and other assets		－		－		5,112		2,535		5,112		2,535
Cash and cash equivalents at end of the period			¥	465,915	¥	606,519	¥	1,043,536	¥	603,988	¥	1,509,451	¥	1,210,507

Going Concern Assumption

Not Applicable

Significant Changes in Shareholders' Equity

Not Applicable

Accounting Policies and Other Information

(Recently adopted accounting pronouncements)

Leases

      In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, which amends current leasing guidance.  The ASU requires substantially all leases to be recognized on the balance sheet.

Sony has applied this ASU as of April 1, 2019, on a modified retrospective basis with no restatement of comparative periods. Sony has applied the package of practical expedients for leases that expired or existed prior to the adoption date.  As a result, Sony did not reassess whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases, or whether initial direct costs for any existing leases qualify for capitalization.  In addition, Sony has applied the short-term lease exception.

As a result of the adoption of this ASU, Sony recognized 316,923 million yen of operating lease right-of-use assets and 341,251 million yen of lease liabilities for operating leases on the consolidated balance sheets at April 1, 2019.  This impact is mainly due to operating leases of real estate.  The difference of 24,328 million yen between right-of-use assets and lease liabilities represents deferred rent for leases that existed as of the date of adoption, which was offset against the opening balance of operating lease right-of-use assets.  Finance lease right-of-use assets which is included in property, plant and equipment in the consolidated balance sheets for the fiscal year ended March 31, 2019, is now presented as finance lease right-of-use assets from April 1, 2019 onward.

Targeted improvements to accounting for hedging activities

In August 2017, the FASB issued ASU 2017-12, which made targeted improvements to the accounting for hedging activities.   The amendments in this update simplify certain aspects of hedge accounting for both non-financial and financial risks and better align the recognition and measurement of hedge results with an entity’s risk management activities.  This ASU also amends certain presentation and disclosure requirements for hedging activities and changes how an entity assesses hedge effectiveness.  This ASU was effective for Sony as of April 1, 2019.  The adoption of this ASU did not have a material impact on Sony’s results of operations and financial position.

(Number of Consolidated Subsidiaries and Affiliated Companies)

As of June 30, 2019, Sony had 1,553 consolidated subsidiaries (including variable interest entities) and 132 affiliated companies accounted for under the equity method.

(Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)

	(Thousands of shares)
	Three months ended June 30
Net income attributable to Sony Corporation’s stockholders	2018	2019
— Basic	1,267,499	1,249,160
— Diluted	1,295,434	1,276,014

The dilutive effect in the weighted-average number of outstanding shares for the three months ended June 30, 2018 and 2019 primarily resulted from convertible bonds which were issued in July 2015.

 (Segmentation)

Sony realigned its business segments from the first quarter of the fiscal year ending March 31, 2020 to reflect modifications to the organizational structure of certain segments and a change in the Senior Executives in charge of certain segments as of April 1, 2019.  In connection with this decision, the former Home Entertainment & Sound, Imaging Products & Solutions and Mobile Communications segments have been realigned as the Electronics Products & Solutions (“EP&S”) segment.  In connection with this realignment, the sales and operating revenue and operating income (loss) of each segment for the fiscal year ended March 31, 2019 have been reclassified to conform to the presentation for the fiscal year ending March 31, 2020.  In addition, the former Semiconductors segment has been renamed the Imaging & Sensing Solutions (“I&SS”) segment effective from the first quarter of the fiscal year ending March 31, 2020.

The G&NS segment includes network services businesses, the manufacture and sales of home gaming products and production and sales of software.  The Music segment includes the Recorded Music, Music Publishing and Visual Media and Platform businesses.  The Pictures segment includes the Motion Pictures, Television Productions and Media Networks businesses.  The EP&S segment includes the Televisions business, the Audio and Video business, the Still and Video Cameras business, the　smartphone business and Internet-related service business.  The I&SS segment includes the image sensors business.  The Financial Services segment primarily represents individual life insurance and non-life insurance businesses in the Japanese market and a bank business in Japan.  All Other consists of various operating activities, including the disc manufacturing and recording media businesses.  Sony’s products and services are generally unique to a single operating segment.

(Accounting Methods Used Specifically for Interim Consolidated Financial Statements)

Income Taxes -

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 infrequent transactions.  Such income tax provision is separately reported from the provision based on the ETR in the interim period in which it occurs.

(Reclassifications)

Certain reclassifications of the financial statements and accompanying footnotes for the three months ended June 30, 2018 have been made to conform to the presentation for the three months ended June 30, 2019.

Outlook for the Fiscal Year Ending March 31, 2020

The forecast for consolidated results for the fiscal year ending March 31, 2020, as announced on April 26, 2019, has been revised as follows:

	(Billions of yen)			Change from April Forecast
	March 31, 2019 Results	April Forecast	July Forecast
Sales and operating revenue	¥8,665.7	¥8,800	¥8,600	-¥200 billion	-2.3%
Operating income	894.2	810	810	-	-
Income before income taxes	1,011.6	770	770	-	-
Net income attributable to Sony Corporation’s stockholders	916.3	500	500	-	-

Assumed foreign exchange rates are the following:

	Assumed foreign exchange rates for the nine months ending March 31, 2020	(For your reference)
		Assumed foreign exchange rates for the fiscal year ending March 31, 2020 at the time of the April forecast
1 U.S. dollar	approximately 108 yen	approximately 110 yen
1 Euro	approximately 123 yen	approximately 125 yen

Consolidated sales and operating revenue (“sales”) for the fiscal year ending March 31, 2020 are expected to be lower than the April forecast due to lower-than-expected sales in the Game & Network Services and Electronics Products & Solutions (“EP&S”) segments.

Consolidated operating income, income before income taxes, and net income attributable to Sony Corporation’s stockholders for the fiscal year ending March 31, 2020 are expected to remain unchanged from the April forecast.

Restructuring charges for the Sony Group are expected to be approximately 24.0 billion yen in the fiscal year ending March 31, 2020, which remains unchanged from the April forecast, compared to 33.1 billion yen in the fiscal year ended March 31, 2019.  Restructuring charges are recorded as an operating expense and are included in the forecast for operating income.

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The forecast for each business segment for the fiscal year ending March 31, 2020 has been revised as follows:

		(Billions of yen)
		March 31, 2019 Results	April Forecast	July Forecast
Game & Network Services (G&NS)
	Sales and operating revenue	¥2,310.9	¥2,300	¥2,200
	Operating income	311.1	280	280
Music
	Sales and operating revenue	807.5	830	830
	Operating income	232.5	135	135
Pictures
	Sales and operating revenue	986.9	1,080	1,080
	Operating income	54.6	65	65
Electronics Products & Solutions (EP&S) *
	Sales and operating revenue	2,320.6	2,240	2,160
	Operating income	76.5	121	121
Imaging & Sensing Solutions (I&SS) **
	Sales and operating revenue	879.3	990	990
	Operating income	143.9	145	145
Financial Services
	Financial services revenue	1,282.5	1,330	1,330
	Operating income	161.5	170	170
All Other, Corporate and elimination
	Operating loss	(85.8)	(106)	(106)
Consolidated
	Sales and operating revenue	8,665.7	8,800	8,600
	Operating income	894.2	810	810

* Sony realigned its business segments from the first quarter of the fiscal year ending March 31, 2020 to reflect modifications to the organizational structure of certain segments and a change in the Senior Executives in charge of certain segments as of April 1, 2019.  In connection with this decision, the former Home Entertainment & Sound, Imaging Products & Solutions and Mobile Communications segments have been realigned as the EP&S segment.  The sales and operating income (loss) of each segment for the fiscal year ended March 31, 2019 have been reclassified to conform to the presentation for the fiscal year ending March 31, 2020.

** The former Semiconductors segment has been renamed the Imaging & Sensing Solutions (“I&SS”) segment effective from the first quarter of the fiscal year ending March 31, 2020.

Game & Network Services (G&NS)

Sales are expected to be lower than the April forecast primarily due to lower-than-expected PlayStation®4 (“PS4”) software sales mainly from non-first-party titles, as well as lower-than-expected PS4 hardware unit sales.  Operating income is expected to remain unchanged from the April forecast primarily due to the impact of cost reductions and an increase in network services revenue including sales for PlayStation®Plus, substantially offset by the impact of the above-mentioned expected decrease in sales of software and hardware.

Electronics Products & Solutions (EP&S)

Sales are expected to be lower than the April forecast due to lower-than-expected unit sales for televisions and smartphones.  Operating income is expected to remain unchanged from the April forecast primarily due to a reduction in operating costs, substantially offset by the impact of the above-mentioned decrease in sales.

The forecasts for sales and operating income for the Music, Pictures, I&SS and Financial Services segments remain unchanged from the April 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 above forecast.

The above 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.

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Notes about Financial Performance of the Music, Pictures and Financial Services segments

On November 14, 2018, Sony acquired the entirety of the approximately 60% equity interest held by the investor consortium led by Mubadala Investment Company in DH Publishing, L.P. (“EMI”), which owned and managed EMI Music Publishing, resulting in EMI becoming a wholly-owned subsidiary of Sony.  Financial results of EMI included in the Music segment for the fiscal year ended March 31, 2019 include equity earnings (loss) from April 1 through November 13, 2018 and sales and operating income (loss) from November 14, 2018 through March 31, 2019.  Sales and operating income (loss) for the Music segment in the fiscal year ending March 31, 2020 include the financial results of EMI from April 1, 2019 onward.

The Music segment results include the yen-translated results of Sony Music Entertainment, Sony/ATV Music Publishing and EMI, all U.S.-based operations which aggregate the results of their worldwide subsidiaries on a U.S. dollar basis, and the results of Sony Music Entertainment (Japan) Inc., a Japan-based music company which aggregates its results in yen.

The results presented in Pictures are a yen-translation of the results of Sony Pictures Entertainment Inc., a U.S.-based operation that aggregates the results of its worldwide subsidiaries on a U.S. dollar basis.

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

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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)	Sony’s ability to maintain product quality and customer satisfaction with its products and services;
(ii)	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 image sensors, game and network platforms, smartphones and televisions, 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 customer preferences;
(iii)	Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;
(iv)	the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;
(v)	changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility;
(vi)	Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;
(vii)	Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations;
(viii)	the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;
(ix)	Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;
(x)	Sony’s ability to forecast demands, manage timely procurement and control inventories;
(xi)	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, liabilities and operating results are denominated;
(xii)	Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel;
(xiii)	Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others;
(xiv)	the impact of changes in interest rates and 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;
(xv)	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;
(xvi)	risks related to catastrophic disasters or similar events;
(xvii)	the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii)	the outcome of pending and/or future legal and/or regulatory proceedings.

Risks and uncertainties also include the impact of any future events with material adverse impact. Important information regarding risks and uncertainties is also set forth in Sony’s most recent Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

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