|
|
Page
|
||
|
Note for readers of this English translation
Cautionary Statement
|
1
1
|
||
|
I
|
Corporate Information
|
2
|
|
|
(1) Selected Consolidated Financial Data
|
|
2
|
|
|
(2) Business Overview
|
3
|
||
|
II
|
State of Business
|
4
|
|
|
(1) Risk Factors
|
4
|
||
|
(2) Material Contracts
|
4
|
||
|
(3) Management’s Discussion and Analysis of Financial Condition, Results of Operations and
Status of Cash Flows
|
4
|
||
|
III
|
Company Information
|
7
|
|
|
(1) Information on the Company’s Shares
|
7
|
||
|
(2) Directors and Corporate Executive Officers
|
10
|
||
|
IV
|
Financial Statements
|
|
11
|
|
(1) Consolidated Financial Statements
|
12
|
||
|
(2) Other Information
|
31
|
||
| Note for readers of this English translation
On August 12, 2011, Sony Corporation (the “Company” or “Sony Corporation”) filed its Japanese-language Quarterly Securities Report (Shihanki Houkokusho) for the three months ended June 30, 2011 with the Director-General of the Kanto Local Finance Bureau in Japan pursuant to the Financial Instruments and Exchange Act of Japan. This document is an English translation of the Quarterly Securities Report in its entirety, except for (i) information that had been previously filed with or submitted to the U.S. Securities and Exchange Commission (the “SEC”) in a Form 20-F, Form 6-K or any other form and (ii) a description of differences between generally accepted accounting principles in the U.S. (“U.S. GAAP”) and generally accepted accounting principles in Japan (“J-GAAP”), which are required to be described in the Quarterly Securities Report under the Financial Instruments and Exchange Act of Japan if the Company prepares its financial statements in conformity with accounting principles other than J-GAAP.
Cautionary Statement
Statements made in this translation with respect to the current plans, estimates, strategies and beliefs and other statements of the Company and its consolidated subsidiaries (collectively “Sony”) 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 and beliefs in light of the information currently available to it. Sony cautions you 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 you should not place undue reliance on them. You 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) 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 LCD televisions and game platforms, which are offered in highly competitive markets characterized by 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 Consumer Products & Services segment and Professional, Device & Solutions segment); (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) Sony’s ability to forecast demands, manage timely procurement and control inventories; (xi) the outcome of pending legal and/or regulatory proceedings; (xii) 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; (xiii) 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 (xiv) those related to catastrophic disasters or similar events, including the Great East Japan Earthquake and its aftermath. Risks and uncertainties also include the impact of any future events with material adverse impacts.
|
|
Yen in millions, Yen per share amounts
|
|||
|
Three Months
Ended June 30, 2010
|
Three Months
Ended June 30, 2011
|
Fiscal Year
Ended March 31, 2011
|
|
|
Sales and operating revenue
|
1,661,049
|
1,494,921
|
7,181,273
|
|
Operating income
|
67,016
|
27,500
|
199,821
|
|
Income before income taxes
|
78,911
|
23,119
|
205,013
|
|
Net income (loss) attributable to Sony Corporation’s stockholders
|
25,737
|
(15,502)
|
(259,585)
|
|
Comprehensive income (loss)
|
(77,252)
|
(14,424)
|
(359,727)
|
|
Total equity
|
3,204,956
|
2,916,340
|
2,936,579
|
|
Total assets
|
12,741,481
|
12,857,253
|
12,924,988
|
|
Net income (loss) attributable to Sony Corporation’s stockholders per share of common stock, basic (yen)
|
25.65
|
(15.45)
|
(258.66)
|
|
Net income (loss) attributable to Sony Corporation’s stockholders per share of common stock, diluted (yen)
|
25.61
|
(15.45)
|
(258.66)
|
|
Ratio of stockholders’ equity to total assets (%)
|
22.6
|
19.6
|
19.7
|
|
Net cash provided by (used in) operating activities
|
(6,848)
|
(39,893)
|
616,245
|
|
Net cash used in investing activities
|
(181,791)
|
(148,125)
|
(714,439)
|
|
Net cash provided by (used in) financing activities
|
26,200
|
9,050
|
（10,112)
|
|
Cash and cash equivalents at end of the period
|
994,627
|
816,588
|
1,014,412
|
|
1.
|
The Company’s consolidated financial statements are prepared in conformity with U.S. GAAP.
|
|
2.
|
The Company reports equity in net income (loss) of affiliated companies as a component of operating income.
|
|
3.
|
Consumption taxes are not included in sales and operating revenue.
|
|
4.
|
Total equity is presented based on U.S. GAAP.
|
|
5.
|
Ratio of stockholders’ equity to total assets is calculated by using total equity attributable to the stockholders of the Company.
|
|
6.
|
The Company prepares consolidated financial statements. Therefore parent-only selected financial data is not presented.
|
| Note for readers of this English translation:
There was no significant change from the information presented in the Risk Factors section of the Annual Report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on June 28, 2011. Based on the current judgment of management, there is also no significant change to any forward-looking statement included in the Risk Factors section of the Annual Report on Form 20-F filed on June 28, 2011.
URL: The Annual Report on Form 20-F filed with the SEC on June 28, 2011
http://www.sec.gov/Archives/edgar/data/313838/000095012311062283/k02583e20vf.htm
|
| Note for readers of this English translation:
The above means that there is no update from the description in the Annual Report on Form 20-F (“Patents and Licenses” in item 4) filed with the SEC on June 28, 2011.
URL: The Annual Report on Form 20-F filed with the SEC on June 28, 2011
http://www.sec.gov/Archives/edgar/data/313838/000095012311062283/k02583e20vf.htm
|
| Note for readers of this English translation:
Except for information specifically included in this English translation, this document omits certain information set out in the Japanese-language Quarterly Securities Report for the three-month period ended June 30, 2011, since it is the same as described in the press release previously submitted to the SEC. Please refer to “Consolidated Financial Results for the First Quarter Ended June 30, 2011” submitted to the SEC on Form 6-K on July 28, 2011.
URL: The press release titled “Consolidated Financial Results for the First Quarter Ended June 30, 2011”
http://www.sec.gov/Archives/edgar/data/313838/000115752311004351/a6806790.htm
|
| Note for readers of this English translation:
Even though foreign exchange rates have fluctuated, there was no significant change in risk hedging policy from the description in the Annual Report on Form 20-F filed with the SEC on June 28, 2011.
URL: The Annual Report on Form 20-F filed with the SEC on June 28, 2011
http://www.sec.gov/Archives/edgar/data/313838/000095012311062283/k02583e20vf.htm
|
|
Note for readers of this English translation:
Except for information specifically included in this English translation, this document omits certain information set out in the Japanese-language Quarterly Securities Report for the three-month period ended June 30, 2011, since it is the same as described in the press release previously submitted to the SEC. Please refer to “Consolidated Financial Results for the First Quarter Ended June 30, 2011” submitted to the SEC on Form 6-K on July 28, 2011.
URL: The press release titled “Consolidated Financial Results for the First Quarter Ended June 30, 2011”
http://www.sec.gov/Archives/edgar/data/313838/000115752311004351/a6806790.htm
|
| Note for readers of this English translation:
There was no significant change from the information presented as the Issues Facing Sony and Management’s Response to those Issues in the Trend Information section of the Annual Report on Form 20-F filed with the SEC on June 28, 2011. Based on the current judgment of management, there is also no significant change to any forward-looking statement included in the Trend Information section of the Annual Report on Form 20-F filed on June 28, 2011.
URL: The Annual Report on Form 20-F filed with the SEC on June 28, 2011
http://www.sec.gov/Archives/edgar/data/313838/000095012311062283/k02583e20vf.htm
|
| Note for readers of this English translation:
Excluding the below, there was no significant change from the information presented as the Research and Development in the Annual Report on Form 20-F filed with the SEC on June 28, 2011.
URL: The Annual Report on Form 20-F filed with the SEC on June 28, 2011
http://www.sec.gov/Archives/edgar/data/313838/000095012311062283/k02583e20vf.htm
|
| Note for readers of this English translation:
Excluding the below, there was no significant change from the information presented in the Annual Report on Form 20-F filed with the SEC on June 28, 2011. The changes are indicated by underline below. Any forward-looking statement included in the descriptions below is based on the current judgment of management.
URL: The Annual Report on Form 20-F filed with the SEC on June 28, 2011
http://www.sec.gov/Archives/edgar/data/313838/000095012311062283/k02583e20vf.htm
|
|
Class
|
Total number of shares authorized to be issued
|
|
Common stock
|
3,600,000,000
|
|
Total
|
3,600,000,000
|
|
Class
|
Number of shares issued
|
Name of Securities Exchanges where the shares are listed or authorized Financial Instruments Firms Association where the shares are registered
|
Description
|
|
|
As of the end of the
first quarterly period
(June 30, 2011)
|
As of the filing date of
the Quarterly
Securities Report
(August 12, 2011)
|
|||
|
Common
stock
|
1,004,638,164
|
1,004,638,164
|
Tokyo Stock Exchange
Osaka Securities Exchange
New York Stock Exchange
London Stock Exchange
|
The number of shares constituting one full unit is one hundred (100).
|
|
Total
|
1,004,638,164
|
1,004,638,164
|
—
|
—
|
|
Notes:
|
|
1.
|
The Company’s shares of common stock are listed on the First Sections of the Tokyo Stock Exchange and the Osaka Securities Exchange in Japan.
|
|
2.
|
The number of shares issued as of the filing date of this Quarterly Securities Report does not include shares issued upon the exercise of stock acquisition rights (“SARs”) (including the conversion of convertible bonds issued under the former Commercial Code of Japan) during August 2011, the month in which this Quarterly Securities Report (Shihanki Houkokusho) was filed.
|
| Note for readers of this English translation:
The above means that there was no issuance of stock acquisition rights during the three months ended June 30, 2011.
|
|
Period
|
Change in the total number of shares issued
|
Balance of the total number of shares issued
|
Change in
the amount of
common stock
|
Balance of
the amount of
common stock
|
Change in the additional
paid-in capital
|
Balance of the additional
paid-in capital
|
|
(Thousands)
|
(Thousands)
|
(Yen in Millions)
|
(Yen in Millions)
|
(Yen in Millions)
|
(Yen in Millions)
|
|
|
From April 1 to
June 30, 2011
|
2
|
1,004,638
|
2
|
630,923
|
2
|
837,611
|
|
2.
|
The total number of shares issued, the amount of common stock and the additional paid-in capital did not change during the period from July 1, 2011 to July 31, 2011.
|
|
Name
|
Address
|
Number of
shares held
(Thousands)
|
Percentage
of shares held to total shares issued (%)
|
|
Moxley and Company *1
(Local Custodian: The Bank of Tokyo-Mitsubishi UFJ, Ltd.)
|
New York, U.S.A.
(2-7-1, Marunouchi, Chiyoda-ku,
Tokyo)
|
83,524
|
8.31
|
|
Japan Trustee Services Bank, Ltd. (Trust account) *2
|
1-8-11, Harumi, Chuo-ku, Tokyo
|
58,566
|
5.83
|
|
The Master Trust Bank of Japan, Ltd.
(Trust account) *2
|
2-11-3, Hamamatsu-cho, Minato-ku, Tokyo
|
44,597
|
4.44
|
|
SSBT OD05 Omnibus Account - Treaty Clients *3
(Local Custodian: The Hongkong and Shanghai Banking Corporation Limited)
|
Sydney, Australia
(3-11-1, Nihonbashi, Chuo-ku,
Tokyo)
|
22,456
|
2.24
|
|
Japan Trustee Services Bank, Ltd.
(Trust account 9) *2
|
1-8-11, Harumi, Chuo-ku,
Tokyo
|
17,890
|
1.78
|
|
State Street Bank and Trust Company *3
(Local Custodian: The Hongkong and Shanghai Banking Corporation Limited)
|
Boston, U.S.A.
(3-11-1, Nihonbashi, Chuo-ku,
Tokyo)
|
16,049
|
1.60
|
|
Mellon Bank, N.A. as Agent for its Client
Mellon Omnibus US Pension *3
(Local Custodian: Mizuho Corporate Bank, Ltd.)
|
Boston, U.S.A.
(4-16-13, Tsukishima, Chuo-ku,
Tokyo)
|
9,334
|
0.93
|
|
The Chase Manhattan Bank, N.A. London Secs Lending Omnibus Account *3
(Local Custodian: Mizuho Corporate Bank, Ltd.)
|
London, U.K.
(4-16-13, Tsukishima, Chuo-ku,
Tokyo)
|
9,194
|
0.92
|
|
State Street Bank West Client - Treaty *3
(Local Custodian: Mizuho Corporate Bank, Ltd.)
|
Quincy, U.S.A.
(4-16-13, Tsukishima, Chuo-ku,
Tokyo)
|
8,863
|
0.88
|
|
State Street Bank - West Pension Fund Clients - Exempt *3
(Local Custodian: Mizuho Corporate Bank, Ltd.)
|
Quincy, U.S.A.
(4-16-13, Tsukishima, Chuo-ku,
Tokyo)
|
8,782
|
0.87
|
|
Total
|
279,257
|
27.80
|
|
|
*1.
|
Moxley and Company is the nominee of JPMorgan Chase Bank, N.A., which is the Depositary for holders of the Company’s American Depositary Receipts (“ADRs”).
|
|
*2.
|
The shares held by each shareholder are held in trust for investors, including shares in securities investment trusts.
|
|
*3.
|
Each shareholder provides depositary services for shares owned by institutional investors, mainly in Europe and North America. They are also the nominees for these investors.
|
|
Classification
|
Number of shares of common stock
|
Number of voting rights
(Units)
|
Description
|
|
Shares without voting rights
|
—
|
—
|
—
|
|
Shares with restricted voting rights
(Treasury stock, etc.)
|
—
|
—
|
—
|
|
Shares with restricted voting rights
(Others)
|
—
|
—
|
—
|
|
Shares with full voting rights
(Treasury stock, etc.)
|
1,073,200
|
—
|
—
|
|
Shares with full voting rights
(Others)
|
1,000,989,600
|
10,009,896
|
—
|
|
Shares constituting less than one full unit
|
2,575,364
|
—
|
Shares constituting less than
one full unit
(100 shares)
|
|
Total number of shares issued
|
1,004,638,164
|
—
|
—
|
|
Total voting rights held by all shareholders
|
—
|
10,009,896
|
—
|
|
Note:
|
Included in “Shares with full voting rights (Others)” under “Number of shares of common stock” are 19,700 shares of common stock held under the name of Japan Securities Depository Center, Incorporated. Also included in “Shares with full voting rights (Others)” under “Number of voting rights (Units)” are 197 units of voting rights relating to the shares of common stock with full voting rights held under the name of Japan Securities Depository Center, Incorporated.
|
|
|
(As of June 30, 2011)
|
|
Name of shareholder
|
Address of shareholder
|
Number of shares held under own name
|
Number of shares held under the names of others
|
Total number of shares held
|
Percentage of shares held to total shares issued
(%)
|
|
Sony Corporation
(Treasury stock)
|
1-7-1, Konan, Minato-ku, Tokyo
|
1,073,200
|
—
|
1,073,200
|
0.11
|
|
Total
|
—
|
1,073,200
|
—
|
1,073,200
|
0.11
|
|
Note:
|
In addition to the 1,073,200 shares listed above, there are 300 shares of common stock held in the name of the Company in the register of shareholders that the Company does not beneficially own. These shares are included in “Shares with full voting rights (Others)” in table 1 “Shares Issued” above.
|
|
Page
|
|||
|
(1) Consolidated Financial Statements
|
12
|
||
|
(i)
|
Consolidated Balance Sheets
|
12
|
|
|
(ii)
|
Consolidated Statements of Income
|
14
|
|
|
(iii)
|
Consolidated Statements of Cash Flows
|
15
|
|
|
(2) Other Information
|
31
|
||
|
Yen in millions
|
||
|
At March 31,
2011
|
At June 30,
2011
|
|
|
ASSETS
|
||
|
Current assets:
|
||
|
Cash and cash equivalents
|
1,014,412
|
816,588
|
|
Marketable securities
|
646,171
|
616,478
|
|
Notes and accounts receivable, trade
|
834,221
|
784,498
|
|
Allowance for doubtful accounts and sales returns
|
(90,531))
|
(79,690))
|
|
Inventories
|
704,043
|
808,862
|
|
Deferred income taxes
|
133,059
|
110,436
|
|
Prepaid expenses and other current assets
|
602,671
|
592,161
|
|
Total current assets
|
3,844,046
|
3,649,333
|
|
Film costs
|
275,389
|
283,449
|
|
Investments and advances:
|
||
|
Affiliated companies
|
221,993
|
190,092
|
|
Securities investments and other
|
5,670,662
|
5,831,691
|
|
5,892,655
|
6,021,783
|
|
|
Property, plant and equipment:
|
||
|
Land
|
145,968
|
145,291
|
|
Buildings
|
868,615
|
864,725
|
|
Machinery and equipment
|
2,016,956
|
2,081,567
|
|
Construction in progress
|
53,219
|
50,898
|
|
3,084,758
|
3,142,481
|
|
|
Less – Accumulated depreciation
|
2,159,890
|
2,172,549
|
|
924,868
|
969,932
|
|
|
Other assets:
|
||
|
Intangibles, net
|
391,122
|
379,281
|
|
Goodwill
|
469,005
|
462,629
|
|
Deferred insurance acquisition costs
|
428,262
|
430,502
|
|
Deferred income taxes
|
239,587
|
213,135
|
|
Other
|
460,054
|
447,209
|
|
1,988,030
|
1,932,756
|
|
|
Total assets
|
12,924,988
|
12,857,253
|
|
Yen in millions
|
||
|
At March 31,
2011
|
At June 30,
2011
|
|
|
LIABILITIES
|
||
|
Current liabilities:
|
||
|
Short-term borrowings
|
53,737
|
63,924
|
|
Current portion of long-term debt
|
109,614
|
205,846
|
|
Notes and accounts payable, trade
|
793,275
|
761,451
|
|
Accounts payable, other and accrued expenses
|
1,013,037
|
929,394
|
|
Accrued income and other taxes
|
79,076
|
60,588
|
|
Deposits from customers in the banking business
|
1,647,752
|
1,663,387
|
|
Other
|
430,488
|
383,538
|
|
Total current liabilities
|
4,126,979
|
4,068,128
|
|
Long-term debt
|
812,235
|
745,186
|
|
Accrued pension and severance costs
|
271,320
|
267,911
|
|
Deferred income taxes
|
306,227
|
324,703
|
|
Future insurance policy benefits and other
|
4,225,373
|
4,323,522
|
|
Other
|
226,952
|
192,647
|
|
Total liabilities
|
9,969,086
|
9,922,097
|
|
Redeemable noncontrolling interest
|
19,323
|
18,816
|
|
Commitments and contingent liabilities
|
||
|
EQUITY
Sony Corporation’s stockholders’ equity:
Common stock, no par value –
At March 31, 2011–Shares authorized: 3,600,000,000, shares issued: 1,004,636,664
|
630,921
|
|
| At June 30, 2011–Shares authorized: 3,600,000,000, shares issued: 1,004,638,164 |
630,923
|
|
|
Additional paid-in capital
|
1,159,666
|
1,159,668
|
|
Retained earnings
|
1,566,274
|
1,550,771
|
|
Accumulated other comprehensive income –
|
|
|
|
Unrealized gains on securities, net
|
50,336
|
61,551
|
|
Unrealized losses on derivative instruments, net
|
(1,589))
|
(1,137))
|
|
Pension liability adjustment
|
(152,165))
|
(151,592))
|
|
Foreign currency translation adjustments
|
(700,786))
|
(729,535))
|
|
(804,204))
|
(820,713))
|
|
|
Treasury stock, at cost
|
||
|
Common stock
At March 31, 2011–1,051,588 shares
At June 30, 2011–1,073,217 shares
|
(4,670))
|
(4,724))
|
|
2,547,987
|
2,515,925
|
|
|
Noncontrolling interests
|
388,592
|
400,415
|
|
Total equity
|
2,936,579
|
2,916,340
|
|
Total liabilities and equity
|
12,924,988
|
12,857,253
|
|
Yen in millions
|
||
|
Three months ended June 30
|
||
|
2010
|
2011
|
|
|
Sales and operating revenue:
|
||
|
Net sales
|
1,473,473
|
1,275,940
|
|
Financial services revenue
|
166,598
|
200,903
|
|
Other operating revenue
|
20,978
|
18,078
|
|
1,661,049
|
1,494,921
|
|
|
Costs and expenses:
|
||
|
Cost of sales
|
1,109,291
|
973,569
|
|
Selling, general and administrative
|
359,770
|
320,146
|
|
Financial services expenses
|
136,100
|
171,648
|
|
(Gain) loss on sale, disposal or impairment of assets and other, net
|
(4,464)
|
(2,777)
|
|
1,600,697
|
1,462,586
|
|
|
Equity in net income (loss) of affiliated companies
|
6,664
|
(4,835)
|
|
Operating income
|
67,016
|
27,500
|
|
Other income:
|
||
|
Interest and dividends
|
3,213
|
4,274
|
|
Gain on sale of securities investments, net
|
991
|
739
|
|
Foreign exchange gain, net
|
13,931
|
-
|
|
Other
|
1,923
|
1,998
|
|
20,058
|
7,011
|
|
|
Other expenses:
|
||
|
Interest
|
6,102
|
6,112
|
|
Foreign exchange loss, net
|
-
|
3,635
|
|
Other
|
2,061
|
1,645
|
|
8,163
|
11,392
|
|
|
Income before income taxes
|
78,911
|
23,119
|
|
Income taxes
|
43,673
|
27,534
|
|
Net income (loss)
|
35,238
|
(4,415)
|
|
Less - Net income attributable to noncontrolling interests
|
9,501
|
11,087
|
|
Net income (loss) attributable to Sony Corporation’s stockholders
|
25,737
|
(15,502)
|
|
Yen
|
||
|
Three months ended June 30
|
||
|
2010
|
2011
|
|
|
Per share data:
|
||
|
Net income (loss) attributable to Sony Corporation’s stockholders
|
||
|
– Basic
|
25.65
|
(15.45))
|
|
– Diluted
|
25.61
|
(15.45))
|
|
Yen in millions
|
||
|
Three months ended June 30
|
||
|
2010
|
2011
|
|
|
Cash flows from operating activities:
|
||
|
Net income (loss)
|
35,238
|
(4,415))
|
|
Adjustments to reconcile net income (loss) to net cash
|
||
|
used in operating activities –
|
||
|
Depreciation and amortization, including amortization of deferred insurance acquisition costs
|
86,824
|
78,194
|
|
Amortization of film costs
|
48,300
|
37,529
|
|
Stock-based compensation expense
|
980
|
571
|
|
Accrual for pension and severance costs, less payments
|
(2,574))
|
(1,613))
|
|
(Gain) loss on sale, disposal or impairment of assets and other, net
|
(4,464))
|
(2,777))
|
|
(Gain) loss on sale of securities investments, net
|
(991))
|
(739))
|
|
(Gain) loss on revaluation of marketable securities held in the financial service business for trading purpose, net
|
29,837
|
(2,979))
|
|
(Gain) loss on revaluation or impairment of securities investments held in the financial service business, net
|
1,841
|
2,802
|
|
Deferred income taxes
|
6,265
|
(4,740))
|
|
Equity in net (income) losses of affiliated companies, net of dividends
|
(6,656))
|
20,128
|
|
Changes in assets and liabilities:
|
||
|
Decrease in notes and accounts receivable, trade
|
5,842
|
26,872
|
|
Increase in inventories
|
(158,549))
|
(110,160))
|
|
Increase in film costs
|
(48,863))
|
(53,606))
|
|
Increase (decrease) in notes and accounts payable, trade
|
68,211
|
(24,076))
|
|
Decrease in accrued income and other taxes
|
(15,020))
|
(15,578))
|
|
Increase in future insurance policy benefits and other
|
36,175
|
81,213
|
|
Increase in deferred insurance acquisition costs
|
(16,345))
|
(17,085))
|
|
Increase in marketable securities held in the
financial service business for trading purpose
|
(2,739))
|
(7,463))
|
|
Increase in other current assets
|
(100,319))
|
(16,851))
|
|
Decrease in other current liabilities
|
(44,207))
|
(62,858))
|
|
Other
|
74,366
|
37,738
|
|
Net cash used in operating activities
|
(6,848))
|
(39,893))
|
|
Yen in millions
|
||
|
Three months ended June 30
|
||
|
2010
|
2011
|
|
|
Cash flows from investing activities:
|
||
|
Payments for purchases of fixed assets
|
(71,896))
|
(71,222))
|
|
Proceeds from sales of fixed assets
|
1,668
|
2,350
|
|
Payments for investments and advances by financial service business
|
(362,970))
|
(244,974))
|
|
Payments for investments and advances (other than financial service business)
|
(5,271))
|
(695))
|
|
Proceeds from sales or return of investments and collections of advances by financial service business
|
253,150
|
141,586
|
|
Proceeds from sales or return of investments and collections of advances (other than financial service business)
|
2,531
|
16,306
|
|
Proceeds from sales of businesses
|
1,425
|
2,502
|
|
Other
|
(428))
|
6,022
|
|
Net cash used in investing activities
|
(181,791))
|
(148,125))
|
|
Cash flows from financing activities:
|
||
|
Proceeds from issuance of long-term debt
|
582
|
622
|
|
Payments of long-term debt
|
(5,744))
|
(21,245))
|
|
Increase in short-term borrowings, net
|
19,187
|
11,376
|
|
Increase in deposits from customers in the financial service business, net
|
28,895
|
37,482
|
|
Dividends paid
|
(12,618))
|
(12,614))
|
|
Other
|
(4,102))
|
(6,571))
|
|
Net cash provided by financing activities
|
26,200
|
9,050
|
|
Effect of exchange rate changes on cash and cash equivalents
|
(34,542))
|
(18,856))
|
|
Net decrease in cash and cash equivalents
|
(196,981))
|
(197,824))
|
|
Cash and cash equivalents at beginning of the fiscal year
|
1,191,608
|
1,014,412
|
|
Cash and cash equivalents at end of the period
|
994,627
|
816,588
|
|
Notes to Consolidated Financial Statements
|
Page
|
||
|
1.
|
Summary of significant accounting policies
|
18
|
|
|
2.
|
Marketable securities and securities investments
|
19
|
|
|
3.
|
Fair value measurements
|
20
|
|
|
4.
|
Supplemental equity and comprehensive income information
|
21
|
|
|
5.
|
Acquisitions
|
22
|
|
|
6.
|
Reconciliation of the differences between basic and diluted EPS
|
23
|
|
|
7.
|
Commitments, contingent liabilities and other
|
24
|
|
|
8.
|
Business segment information
|
26
|
|
|
Yen in millions
|
||||||||||||||||
|
March 31, 2011
|
June 30, 2011
|
|||||||||||||||
|
Cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Fair value
|
Cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Fair value
|
|||||||||
|
Available-for-sale:
|
||||||||||||||||
|
Debt securities:
|
||||||||||||||||
|
Japanese national
government bonds
|
1,124,704
|
24,032
|
(4,971)
|
1,143,765
|
1,117,054
|
40,777
|
(1,880)
|
1,155,951
|
||||||||
|
Japanese local
government bonds
|
22,845
|
184
|
(64)
|
22,965
|
25,033
|
191
|
(14)
|
25,210
|
||||||||
|
Japanese corporate
bonds
|
332,567
|
1,511
|
(440)
|
333,638
|
339,509
|
1,717
|
(352)
|
340,874
|
||||||||
|
Foreign corporate bonds
|
332,616
|
4,872
|
(11,368)
|
326,120
|
342,681
|
5,156
|
(10,313)
|
337,524
|
||||||||
|
Other
|
7,941
|
109
|
(117)
|
7,933
|
16,205
|
160
|
(136)
|
16,229
|
||||||||
|
1,820,673
|
30,708
|
(16,960)
|
1,834,421
|
1,840,482
|
48,001
|
(12,695)
|
1,875,788
|
|||||||||
|
Equity securities
|
84,417
|
69,073
|
(3,447)
|
150,043
|
79,143
|
77,119
|
(3,031)
|
153,231
|
||||||||
|
Held-to-maturity
|
||||||||||||||||
|
securities:
|
||||||||||||||||
|
Japanese national
government bonds
|
2,902,342
|
22,420
|
(48,149)
|
2,876,613
|
2,957,193
|
77,509
|
(15,543)
|
3,019,159
|
||||||||
|
Japanese local
government bonds
|
18,912
|
218
|
(2)
|
19,128
|
17,197
|
266
|
(1)
|
17,462
|
||||||||
|
Japanese corporate
bonds
|
32,349
|
158
|
(67)
|
32,440
|
32,652
|
895
|
(8)
|
33,539
|
||||||||
|
Foreign corporate bonds
|
47,330
|
13
|
(3)
|
47,340
|
44,927
|
12
|
(1)
|
44,938
|
||||||||
|
|
3,000,933
|
22,809
|
(48,221)
|
2,975,521
|
3,051,969
|
78,682
|
(15,553)
|
3,115,098
|
||||||||
|
|
||||||||||||||||
|
Total
|
4,906,023
|
122,590
|
(68,628)
|
4,959,985
|
4,971,594
|
203,802
|
(31,279)
|
5,144,117
|
||||||||
|
Yen in millions
|
||||||||
|
At March 31, 2011
|
||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||
|
Assets:
|
||||||||
|
Trading securities
|
189,320
|
186,482
|
-
|
375,802
|
||||
|
Available-for-sale securities
|
||||||||
|
Debt securities
|
||||||||
|
Japanese national government bonds
|
-
|
1,143,765
|
-
|
1,143,765
|
||||
|
Japanese local government bonds
|
-
|
22,965
|
-
|
22,965
|
||||
|
Japanese corporate bonds
|
-
|
329,057
|
4,581
|
333,638
|
||||
|
Foreign corporate bonds
|
-
|
306,070
|
20,050
|
326,120
|
||||
|
Other
|
-
|
7,933
|
-
|
7,933
|
||||
|
Equity securities
|
141,408
|
4,667
|
3,968
|
150,043
|
||||
|
Other investments *1
|
5,459
|
51
|
70,058
|
75,568
|
||||
|
Derivative assets *2
|
-
|
15,110
|
-
|
15,110
|
||||
|
Total assets
|
336,187
|
2,016,100
|
98,657
|
2,450,944
|
||||
|
Liabilities:
|
||||||||
|
Derivative liabilities *2
|
-
|
33,759
|
-
|
33,759
|
||||
|
Total liabilities
|
-
|
33,759
|
-
|
33,759
|
||||
|
Yen in millions
|
||||||||
|
At June 30, 2011
|
||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||
|
Assets:
|
||||||||
|
Trading securities
|
194,602
|
191,817
|
-
|
386,419
|
||||
|
Available-for-sale securities
|
||||||||
|
Debt securities
|
||||||||
|
Japanese national government bonds
|
-
|
1,155,951
|
-
|
1,155,951
|
||||
|
Japanese local government bonds
|
-
|
25,210
|
-
|
25,210
|
||||
|
Japanese corporate bonds
|
-
|
338,861
|
2,013
|
340,874
|
||||
|
Foreign corporate bonds
|
-
|
324,375
|
13,149
|
337,524
|
||||
|
Other
|
-
|
16,229
|
-
|
16,229
|
||||
|
Equity securities
|
144,639
|
4,640
|
3,952
|
153,231
|
||||
|
Other investments *1
|
5,583
|
51
|
67,466
|
73,100
|
||||
|
Derivative assets *2
|
-
|
14,901
|
-
|
14,901
|
||||
|
Total assets
|
344,824
|
2,072,035
|
86,580
|
2,503,439
|
||||
|
Liabilities:
|
||||||||
|
Derivative liabilities *2
|
-
|
27,954
|
-
|
27,954
|
||||
|
Total liabilities
|
-
|
27,954
|
-
|
27,954
|
||||
|
Yen in millions
|
||||||||||||
|
Sony Corporation’s
stockholders’ equity
|
Noncontrolling
interests
|
Total equity
|
||||||||||
|
Balance at March 31, 2010
|
2,965,905 | 319,650 | 3,285,555 | |||||||||
|
Exercise of stock acquisition rights
|
38 | 13 | 51 | |||||||||
|
Stock-based compensation
|
457 | 457 | ||||||||||
|
Comprehensive income:
|
||||||||||||
|
Net income
|
25,737 | 9,501 | 35,238 | |||||||||
|
Other comprehensive income, net of tax ―
|
||||||||||||
|
Unrealized gains (losses) on securities
|
(1,905 | ) | 3,002 | 1,097 | ||||||||
|
Unrealized gains on derivative instruments
|
106 | 106 | ||||||||||
|
Pension liability adjustment
|
2,184 | 2,184 | ||||||||||
|
Foreign currency translation adjustments
|
(115,376 | ) | (501 | ) | (115,877 | ) | ||||||
|
Total comprehensive income (loss)
|
(89,254 | ) | 12,002 | (77,252 | ) | |||||||
|
Dividends declared
|
(4,027 | ) | (4,027 | ) | ||||||||
|
Transactions with noncontrolling interests
shareholders and other
|
(28 | ) | 200 | 172 | ||||||||
|
Balance at June 30, 2010
|
2,877,118 | 327,838 | 3,204,956 | |||||||||
|
Yen in millions
|
||||||||||||
|
Sony Corporation’s
stockholders’ equity
|
Noncontrolling
interests
|
Total equity
|
||||||||||
|
Balance at March 31, 2011
|
2,547,987 | 388,592 | 2,936,579 | |||||||||
|
Exercise of stock acquisition rights
|
4 | 11 | 15 | |||||||||
|
Stock-based compensation
|
570 | 570 | ||||||||||
|
Comprehensive income:
|
||||||||||||
|
Net income (loss)
|
(15,502 | ) | 11,087 | (4,415 | ) | |||||||
|
Other comprehensive income, net of tax ―
|
||||||||||||
|
Unrealized gains on securities
|
11,215 | 7,174 | 18,389 | |||||||||
|
Unrealized gains on derivative instruments
|
452 | 452 | ||||||||||
|
Pension liability adjustment
|
573 | 573 | ||||||||||
|
Foreign currency translation adjustments
|
(28,749 | ) | (674 | ) | (29,423 | ) | ||||||
|
Total comprehensive income (loss)
|
(32,011 | ) | 17,587 | (14,424 | ) | |||||||
|
Dividends declared
|
(5,635 | ) | (5,635 | ) | ||||||||
|
Transactions with noncontrolling interests
shareholders and other
|
(625 | ) | (140 | ) | (765 | ) | ||||||
|
Balance at June 30, 2011
|
2,515,925 | 400,415 | 2,916,340 | |||||||||
|
Yen in millions
|
|
|
Acquired assets recorded
at fair value
|
|
|
Inventories
|
4,370
|
|
Other current assets
|
82
|
|
Machinery and equipment
|
51,083
|
|
Intangibles
|
1,223
|
|
Other noncurrent assets
|
693
|
|
Total acquired assets
|
57,451
|
|
Yen in millions
|
|||
|
Three months ended June 30
|
|||
|
2010
|
2011
|
||
|
Net income (loss) attributable to Sony Corporation’s
stockholders for basic and diluted EPS computation
|
25,737
|
|
(15,502))
|
|
Thousands of shares
|
|||
|
Weighted-average shares outstanding
|
1,003,538
|
1,003,572
|
|
|
Effect of dilutive securities:
|
|||
|
Stock acquisition rights
|
324
|
-
|
|
|
Convertible bonds
|
1,248
|
-
|
|
|
Weighted-average shares for diluted EPS computation
|
1,005,110
|
1,003,572
|
|
|
Yen
|
|||
|
Basic EPS
|
25.65
|
(15.45))
|
|
|
Diluted EPS
|
25.61
|
(15.45))
|
|
|
Yen in millions
|
||||
|
Three months ended June 30
|
||||
|
2010
|
2011
|
|||
|
Sales and operating revenue:
|
||||
|
Consumer Products & Services -
|
|
|||
|
Customers
|
872,172
|
714,617
|
||
|
Intersegment
|
19,460
|
17,648
|
||
|
Total
|
891,632
|
732,265
|
||
|
Professional, Device & Solutions -
|
||||
|
Customers
|
267,736
|
223,133
|
||
|
Intersegment
|
102,959
|
86,549
|
||
|
Total
|
370,695
|
309,682
|
||
|
Pictures -
|
||||
|
Customers
|
132,085
|
144,376
|
||
|
Intersegment
|
-
|
23
|
||
|
Total
|
132,085
|
144,399
|
||
|
Music -
|
||||
|
Customers
|
107,090
|
107,330
|
||
|
Intersegment
|
3,182
|
2,288
|
||
|
Total
|
110,272
|
109,618
|
||
|
Financial Services -
|
||||
|
Customers
|
166,598
|
200,903
|
||
|
Intersegment
|
2,397
|
735
|
||
|
Total
|
168,995
|
201,638
|
||
|
All Other -
|
||||
|
Customers
|
89,738
|
88,734
|
||
|
Intersegment
|
17,087
|
14,844
|
||
|
Total
|
106,825
|
103,578
|
||
|
Corporate and elimination
|
(119,455)
|
(106,259)
|
||
|
Consolidated total
|
1,661,049
|
1,494,921
|
||
|
Yen in millions
|
||||
|
Three months ended June 30
|
||||
|
2010
|
|
2011
|
||
|
Operating income (loss):
|
||||
|
Consumer Products & Services
|
28,543
|
1,690
|
||
|
Professional, Device & Solutions
|
17,755
|
2,338
|
||
|
Pictures
|
2,860
|
4,302
|
||
|
Music
|
7,493
|
12,094
|
||
|
Financial Services
|
29,976
|
28,696
|
||
|
Equity in net income (loss) of Sony Ericsson
|
582
|
(3,056)
|
||
|
All Other
|
(3,931)
|
(2,979)
|
||
|
Total
|
83,278
|
43,085
|
||
|
Corporate and elimination
|
(16,262)
|
(15,585)
|
||
|
Consolidated operating income
|
67,016
|
27,500
|
||
|
Other income
|
20,058
|
7,011
|
||
|
Other expenses
|
(8,163)
|
(11,392)
|
||
|
Consolidated income before income taxes
|
78,911
|
23,119
|
||
|
Yen in millions
|
||||
|
Three months ended June 30
|
||||
|
Sales and operating revenue:
|
2010
|
2011
|
||
|
Consumer Products & Services
|
||||
|
Televisions
|
291,935
|
241,736
|
||
|
Home Audio and Video
|
62,374
|
53,312
|
||
|
Digital Imaging
|
172,231
|
131,049
|
||
|
Personal and Mobile Products
|
198,475
|
163,161
|
||
|
Game
|
142,102
|
125,253
|
||
|
Other
|
5,055
|
106
|
||
|
Total
|
872,172
|
714,617
|
||
|
Professional, Device & Solutions
|
||||
|
Professional Solutions
|
67,759
|
52,704
|
||
|
Semiconductors
|
90,233
|
91,119
|
||
|
Components
|
107,204
|
76,310
|
||
|
Other
|
2,540
|
3,000
|
||
|
Total
|
267,736
|
223,133
|
||
|
Pictures
|
132,085
|
144,376
|
||
|
Music
|
107,090
|
107,330
|
||
|
Financial Services
|
166,598
|
200,903
|
||
|
All Other
|
89,738
|
88,734
|
||
|
Corporate
|
25,630
|
15,828
|
||
|
Consolidated total
|
1,661,049
|
1,494,921
|
||
|
Yen in millions
|
||||
|
Three months ended June 30
|
||||
|
Sales and operating revenue
|
2010
|
|
2011
|
|
|
Japan
|
456,097
|
486,013
|
||
|
United States
|
360,039
|
274,398
|
||
|
Europe
|
330,632
|
266,842
|
||
|
China
|
143,453
|
114,166
|
||
|
Asia-Pacific
|
188,998
|
176,045
|
||
|
Other Areas
|
181,830
|
177,457
|
||
|
Total
|
1,661,049
|
1,494,921
|
||
| SONY CORPORATION (Registrant) |
||||
| By: | /s/ Masaru Kato | |||
| (Signature) Masaru Kato
Executive Vice President and Chief Financial Officer
|
||||