6-K 1 sony-6k_1109.htm Unassociated Document
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 November 2012
Commission File Number: 001-06439
SONY CORPORATION
(Translation of registrant’s name into English)
7-1, KONAN 1-CHOME, 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 þ                    Form 40-F o
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  o   No  þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-                    

 
 

 
 
Quarterly Securities Report
For the three months ended September 30, 2012
 
(TRANSLATION)
 
Sony Corporation

 
 

 
 
CONTENTS
 
 
 

 

 
On November 9, 2012, Sony Corporation (the “Company” or “Sony Corporation”) filed its Japanese-language Quarterly Securities Report (Shihanki Houkokusho) for the three months ended September 30, 2012 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.
 
 
Statements made in this release with respect to Sony’s 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, judgments 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) 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 smart phones, 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 (in particular the recent acquisition of Sony Ericsson Mobile Communications AB); (x) Sony’s ability to forecast demands, manage timely procurement and control inventories; (xi) the outcome of pending and/or future 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) risks related to catastrophic disasters or similar events, including the Great East Japan Earthquake and its aftermath as well as the floods in Thailand. Risks and uncertainties also include the impact of any future events with material adverse impact.

 
- 1 -

 

 
 
   
Yen in millions, Yen per share amounts
 
   
Six Months Ended
September 30, 2011
   
Six Months Ended
September 30, 2012
   
Fiscal Year Ended
March 31, 2012
 
Sales and operating revenue
    3,069,910       3,119,842       6,493,212  
Operating income (loss)
    25,865       36,526       (67,275 )
Income (loss) before income taxes
    23,214       29,063       (83,186 )
Net loss attributable to Sony Corporation’s stockholders
    (42,479 )     (40,111 )     (456,660 )
Comprehensive loss
    (140,401 )     (77,441 )     (428,413 )
Total equity
    2,777,826       2,328,229       2,490,107  
Total assets
    12,869,832       13,254,028       13,295,667  
Net loss attributable to Sony Corporation’s stockholders per share of common stock, basic (yen)
    (42.33 )     (39.97 )     (455.03 )
Net loss attributable to Sony Corporation’s stockholders per share of common stock, diluted (yen)
    (42.33 )     (39.97 )     (455.03 )
Ratio of stockholders’ equity to total assets (%)
    18.4       14.1       15.3  
Net cash provided by operating activities
    149,312       49,437       519,539  
Net cash used in investing activities
    (417,735 )     (470,826 )     (882,886 )
Net cash provided by financing activities
    23,950       147,974       257,336  
Cash and cash equivalents at end of the period
    719,020       588,827       894,576  
 
   
Yen in millions, Yen per share amounts
 
   
Three months Ended
September 30, 2011
   
Three months Ended
September 30, 2012
 
Sales and operating revenue
    1,574,989       1,604,659  
Net loss attributable to Sony Corporation’s stockholders
    (26,977 )     (15,470 )
Net loss attributable to Sony Corporation’s stockholders per share of common stock, basic (yen)
    (26.88 )     (15.41 )
 
Notes:
 
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 (loss).
 
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.

 
- 2 -

 

 
There was no significant change in the business of Sony during the six months ended September 30, 2012.
 
Sony realigned its reportable segments effective from the first quarter of the fiscal year ending March 31, 2013.  For further information on the realignment, please refer to “IV Financial Statements – Notes to Consolidated Financial Statements – 11. Business segment information”.
 
As of September 30, 2012, the Company had 1,316 subsidiaries and 108 affiliated companies, of which 1,292 companies are consolidated subsidiaries (including variable interest entities) of the Company.  The Company has applied the equity accounting method for 100 affiliated companies.
 
 
- 3 -

 

 
 
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 27, 2012, as amended by Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012.  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 27, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512284981/d305818d20f.htm
 
URL: The Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512308053/d305818d20fa.htm
 
 
There were no material contracts executed during the three months ended September 30, 2012.
 
Note for readers of this English translation:
 
There was no significant change from the information presented in the Annual Report on Form 20-F (“Patents and Licenses” in item 4) filed with the SEC on June 27, 2012, as amended by the Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012.
 
URL: The Annual Report on Form 20-F filed with the SEC on June 27, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512284981/d305818d20f.htm
 
URL: The Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512308053/d305818d20fa.htm
 
 
i) Results of Operations
 
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 September 30, 2012, since it is the same as described in a press release previously submitted to the SEC.  Please refer to “Consolidated Financial Results for the Second Quarter Ended September 30, 2012” submitted to the SEC on Form 6-K on November 1, 2012.
 
URL: The press release titled “Consolidated Financial Results for the Second Quarter Ended September 30, 2012”
http://www.sec.gov/Archives/edgar/data/313838/000115752312005596/a50459459.htm
 
 
- 4 -

 

Foreign Exchange Fluctuations and Risk Hedging
 
Note for readers of this English translation:
 
Except for the information below, there was no significant change from the information presented in the Foreign Exchange Fluctuations and Risk Hedging section of the Annual Report on Form 20-F filed with the SEC on June 27, 2012, as amended by Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012.  Even though foreign exchange rates have fluctuated, there was no significant change in Sony’s risk hedging policy from the description in the Annual Report on Form 20-F and Amendment No. 1 on Form 20-F/A.
 
URL: The Annual Report on Form 20-F filed with the SEC on June 27, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512284981/d305818d20f.htm
 
URL: The Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512308053/d305818d20fa.htm
 
During the three months ended September 30, 2012, the average rates of the yen were 78.6 yen against the U.S. dollar and 98.4 yen against the euro, which was 2.3 percent lower and 10.4 percent higher, respectively, than the same quarter of the previous fiscal year (“year-on-year”).
 
For the three months ended September 30, 2012, sales were 1,604.7 billion yen, an increase of 1.9 percent year-on-year, while on a constant currency basis, sales increased approximately 3 percent year-on-year.  For references to information on a constant currency basis, see Note at the bottom of this section.
 
Consolidated operating income of 30.3 billion yen was recorded for the three months ended September 30, 2012, compared to an operating loss of 1.6 billion yen in the same quarter of the previous fiscal year, an improvement of 31.9 billion yen year-on-year.  It would have increased by approximately 46.9 billion yen year-on-year on a constant currency basis.  Most of the unfavorable foreign exchange rate impact on consolidated operating income was attributable to the five Electronics segments.
 
The table below indicates the impact on sales and operating results of each of these five segments.  For a detailed analysis of segment performance, please refer to the “Operating Performance Highlights by Business Segment” in the “Results of Operations” section above, which discusses the impact of foreign exchange rates within each segment.
 
     
(Billions of yen)
 
                      Change on     Impact of  
      Second quarter ended         constant     changes in  
     
September 30
    Change in    currency       foreign  
     
2011
   
2012
   
 yen
 
basis
   
exchange rates
 
 IP&S
Sales
    219.1       182.6       - 16.7 %  
- 16
%      -1.8  
Operating income
    15.8       2.6       - 13.2       - 10.6       - 2.7  
Game
Sales
    176.0       148.2       - 15.8 %  
- 14
%      - 2.9  
Operating income
    3.0       2.3       - 0.7    
2.9
      - 3.6  
MP&C
Sales
    141.7       300.4    
112.1
 
125
%      -18.0  
Operating loss
    (6.1 )     (23.1 )     - 17.0       - 15.1       -1.9  
HE&S
Sales
    314.8       236.0       - 25.0 %  
- 24
%      -1.9  
Operating loss
    (41.8 )     (15.8 )  
26.0
   
30.2
      - 4.2  
Devices
Sales
    299.7       249.9       - 16.6 %  
- 16
%      - 2.4  
Operating income (loss)
    (18.4 )     29.8    
48.2
   
51.7
      - 3.5  
 
 
- 5 -

 
 
In addition, sales for the Pictures segment decreased 3.7 percent year-on-year to 163.0 billion yen, approximately 6 percent on a constant currency (U.S. dollar) basis.  In the Music segment, sales decreased 4.3 percent year-on-year to 99.2 billion yen, approximately 6 percent on a constant currency basis.  Sony’s Financial Services segment consolidates the yen-based results of Sony Financial Holdings Inc.  As most of the operations in this segment are based in Japan, Sony’s management analyzes the performance of the Financial Services segment on a yen basis only.
 
Note: In this section, 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 three months ended September 30, 2012.  The impact of foreign exchange rate fluctuations on operating income (loss) described herein is estimated by deducting cost of sales and SGA expenses on a constant currency basis from sales on a constant currency basis.  Cost of sales and SGA expenses on a constant currency basis are obtained by applying the yen’s monthly average exchange rates in the same quarter of the previous fiscal year to the corresponding local currency-denominated monthly cost of sales and SGA expenses for the three months ended September 30, 2012.  In certain cases, most significantly in the Pictures segment, and Sony Music Entertainment and Sony/ATV Music Publishing LLC in the Music segment, the constant currency amounts are after aggregation on a U.S. dollar basis.  Sales and operating income (loss) on a constant currency basis are not reflected in Sony’s consolidated financial statements and are not measured 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 and operating income (loss) information on a constant currency basis provides additional useful analytical information to investors regarding the operating performance of Sony.
 
Status of Cash Flows
 
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 six-month period ended September 30, 2012, since it is the same as described in a press release previously submitted to the SEC.  Please refer to “Consolidated Financial Results for the Second Quarter Ended September 30, 2012” submitted to the SEC on Form 6-K on November 1, 2012.
 
URL: The press release titled “Consolidated Financial Results for the Second Quarter Ended September 30, 2012”
http://www.sec.gov/Archives/edgar/data/313838/000115752312005596/a50459459.htm
 
ii) Issues Facing Sony and Management’s Response to those Issues
 
Note for readers of this English translation:
 
Except as set forth below, 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 27, 2012, as amended by Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012.  The change during the three months ended September 30, 2012 is 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 27, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512284981/d305818d20f.htm
 
URL: The Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512308053/d305818d20fa.htm
 
 
- 6 -

 
 
4. Creating new businesses and accelerating innovation
 
Sony will continue to aggressively promote innovation intended to deliver mid- to long-term growth, as well as the development of differentiating technologies that enhance core product value.  For example, Sony is targeting mid- to long-term growth in the medical and 4K businesses.  In the medical business Sony has already launched a range of medical peripherals such as printers, monitors, cameras, and recorders. Sony also plans to enter the medical equipment business, where its strengths in various core digital imaging technologies offer significant competitive advantages in applications such as endoscopes.  Furthermore, Sony plans to enter the life science business where it can leverage its expertise in technologies such as semiconductor lasers, image sensors and micro fabrication.  Sony is also drawing on its comprehensive strengths in audio and visual technologies to aggressively promote the growth of 4K technology, which delivers more than four times the resolution of Full HD.  Incorporation of Sony-developed technologies, such as image sensors, image processing compression LSIs and high-speed optical transmission modules into its professional-use and high-end consumer products will pave the way for Sony to continue to expand and enrich its 4K-compatible product lineup.  In an effort to create new businesses, Sony and Olympus Corporation (“Olympus”) entered into a business alliance agreement and a capital alliance agreement through a third-party allotment of Olympus’s common shares to Sony in September 2012, and the two companies agreed to establish a medical business venture.  (For further information on the capital alliance agreement, please refer to “IV Financial Statements – Notes to Consolidated Financial Statements – 10. Commitments, contingent liabilities and other”.)  Through the utilization of its leading-edge electronics technologies, such as digital imaging, 4K and 3D, Sony believes that it can create new business opportunities by offering innovative and competitive products in the area of surgical endoscopes and other related areas where future growth is anticipated.
 
iii) Research and Development
 
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 27, 2012, as amended by the Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012.
 
URL: The Annual Report on Form 20-F filed with the SEC on June 27, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512284981/d305818d20f.htm
 
URL: The Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512308053/d305818d20fa.htm
 
 
There were the following significant changes in research and development activities for the period.
 
The R&D Platform and Common Software Platform were realigned in April 2012, as the System & Software Technology Platform, the Advanced Device Technology Platform and the Corporate R&D to implement a process of stringent selection and focus in the area of R&D, to enable the Company to optimize resource allocation, and to enhance R&D which leads to generation of new businesses and establishment of next generation basic technology .
 
In addition, System Technology Laboratory and New Business Creating Division were integrated and realigned in July 2012, as Business Design and Innovation Laboratory to strengthen the development of new businesses.
 
Research and development costs for the six months ended September 30, 2012 totaled 236.6 billion yen.
 
 
- 7 -

 
 
iv) Liquidity and Capital Resources
 
Note for readers of this English translation:
 
Except for the information related to the commitment line and execution of syndicated loans below, there was no significant change from the information presented in the Annual Report on Form 20-F filed with the SEC on June 27, 2012, as amended by Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012.  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 27, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512284981/d305818d20f.htm
 
URL: The Amendment No.1 on Form 20-F/A filed with the SEC on July 20, 2012
http://www.sec.gov/Archives/edgar/data/313838/000119312512308053/d305818d20fa.htm
 
Sony typically raises funds through straight bonds, CP programs and bank loans (including syndicated loans).  If market disruption and volatility occur and if Sony could not raise sufficient funds from these sources, Sony may also draw down funds from contractually committed lines of credit from various financial institutions.  Sony has a total, translated into yen, of 748.2 billion yen in unused committed lines of credit as of September 30, 2012.  Details of those committed lines of credit are: a 475.0 billion yen committed line of credit contracted with a syndicate of Japanese banks, effective until November 2014, a 1.5 billion U.S. dollar multi-currency committed line of credit also with a syndicate of Japanese banks, effective until December 2013, and a 2.02 billion U.S. dollar multi-currency committed line of credit contracted with a syndicate of foreign banks, effective until April 2015, in all of which Sony Corporation and its consolidated subsidiary, Sony Global Treasury Services Plc are defined as borrowers.  These contracts are aimed at securing sufficient liquidity in a quick and stable manner even in the event of turmoil within the financial and capital markets.
 
Sony executed a syndicated loan totaling 65.0 billion yen in July 2012 (with a maturity of 3 to 6 years).  The proceeds of the loan were used for general corporate purposes.

 
- 8 -

 

 
 
i) Total Number of Shares
 
1) Total Number of Shares
 
Class
Total number of shares authorized to be issued
Common stock
3,600,000,000
Total
3,600,000,000
 
2) Number of Shares Issued
 
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
second quarterly period
(September 30, 2012)
As of the filing date of
the Quarterly
Securities Report
(November 9, 2012)
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”) during November 2012, the month in which this Quarterly Securities Report (Shihanki Houkokusho) was filed.
 
ii) Stock Acquisition Rights
 
Not applicable.
 
Note for readers of this English translation:
 
The above means that there was no issuance of SARs during the three months ended September 30, 2012.
 
iii) Status of the Exercise of Moving Strike Convertible Bonds
 
Not applicable.
 
iv) Description of Rights Plan
 
Not applicable.
 
 
- 9 -

 

v) Changes in the Total Number of Shares Issued and the Amount of Common Stock, etc.
 
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
legal capital
surplus
Balance of the
legal capital
surplus
(Thousands)
(Thousands)
(Yen in Millions)
(Yen in Millions)
(Yen in Millions)
(Yen in Millions)
From July 1 to September 30, 2012
1,004,638
630,923
837,611
 
Note:          The total number of shares issued, the amount of common stock and the legal capital surplus did not change  during the period from October 1, 2012 to October 31, 2012.
 
 
- 10 -

 

vi) Status of Major Shareholders
(As of September 30, 2012)
Name
Address
Number of
shares held
(Thousands)
Percentage
of shares held
to total shares
issued (%)
Moxley and Co. LLC *1
(Local Custodian: The Bank of Tokyo-Mitsubishi UFJ, Ltd.)
New York, U.S.A.
(2-7-1, Marunouchi, Chiyoda-ku,
Tokyo)
69,745
6.94
Japan Trustee Services Bank, Ltd.
(Trust account) *2
1-8-11, Harumi, Chuo-ku, Tokyo
62,660
6.24
The Master Trust Bank of Japan, Ltd.
(Trust account) *2
2-11-3, Hamamatsu-cho, Minato-ku,
Tokyo
49,363
4.91
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)
22,958
2.29
Japan Trustee Services Bank, Ltd.
(Trust account 9) *2
1-8-11, Harumi, Chuo-ku, Tokyo
13,683
1.36
Japan Trustee Services Bank, Ltd.
(Trust account 1) *2
1-8-11, Harumi, Chuo-ku, Tokyo
11,373
1.13
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)
10,977
1.09
Japan Trustee Services Bank, Ltd.
(Trust account 6) *2
1-8-11, Harumi, Chuo-ku, Tokyo
10,970
1.09
Japan Trustee Services Bank, Ltd.
(Trust account 3) *2
1-8-11, Harumi, Chuo-ku, Tokyo
10,330
1.03
Tam Two *3
(Local Custodian: The Bank of Tokyo-Mitsubishi
UFJ, Ltd.)
Riyadh, Kingdom of Saudi Arabia
(2-7-1, Marunouchi, Chiyoda-ku,
Tokyo)
9,982
0.99
Total
272,040
27.08
 
Notes:
 
*1.
Moxley and Co. LLC 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.
 
 
- 11 -

 

vii) Status of Voting Rights
 
1) Shares Issued
(As of September 30, 2012)
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.)
1,047,800
 
 
Shares with full voting rights (Others)
1,001,146,400
 
10,011,464
 
Shares constituting less than one full unit
2,443,964
 
 
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
 
10,011,464
 
 
Note:
Included in “Shares with full voting rights (Others)” under “Number of shares of common stock” are 19,500 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 195 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.
 
2) Treasury Stock, Etc.
 
 
(As of September 30, 2012)
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
1,047,800
1,047,800
0.10
Total
1,047,800
 —
1,047,800
0.10
 
Note:
In addition to the 1,047,800 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.
 
 
There was no change in directors or corporate executive officers in the period from the filing date of the Securities Report (Yukashoken Houkokusho) for the fiscal year ended March 31, 2012 to the filing date of this Quarterly Securities Report (Shihanki Houkokusho).

 
- 12 -

 

 
 
 
- 13 -

 

 
 (i)  Consolidated Balance Sheets (Unaudited)
 
Sony Corporation and Consolidated Subsidiaries
             
   
Yen in millions
 
   
At March 31,
2012
   
At September 30,
2012
 
ASSETS
           
Current assets:
           
Cash and cash equivalents
    894,576       588,827  
Marketable securities
    680,913       634,395  
Notes and accounts receivable, trade
    840,924       791,297  
Allowance for doubtful accounts and sales returns
    (71,009 )     (56,246 )
Inventories
    707,052       838,102  
Other receivables
    202,044       207,592  
Deferred income taxes
    36,769       37,258  
Prepaid expenses and other current assets
    463,693       430,412  
     Total current assets
    3,754,962       3,471,637  
                 
Film costs
    270,048       253,460  
                 
Investments and advances:
               
Affiliated companies
    36,800       60,235  
Securities investments and other
    6,282,676       6,644,691  
      6,319,476       6,704,926  
                 
Property, plant and equipment:
               
Land
    139,413       138,168  
Buildings
    817,730       800,354  
Machinery and equipment
    1,957,134       1,944,492  
Construction in progress
    35,648       38,691  
      2,949,925       2,921,705  
Less – Accumulated depreciation
    2,018,927       2,011,272  
      930,998       910,433  
                 
Other assets:
               
Intangibles, net
    503,699       470,965  
Goodwill
    576,758       579,219  
Deferred insurance acquisition costs
    441,236       446,530  
Deferred income taxes
    100,460       102,490  
Other
    398,030       314,368  
      2,020,183       1,913,572  
                 
Total assets
    13,295,667       13,254,028  
(Continued on following page.)

 
- 14 -

 
 
Consolidated Balance Sheets (Unaudited)
 
             
   
Yen in millions
 
   
At March 31,
2012
   
At September 30,
2012
 
LIABILITIES
           
Current liabilities:
           
Short-term borrowings
    99,878       285,605  
Current portion of long-term debt
    310,483       119,514  
Notes and accounts payable, trade
    758,680       670,803  
Accounts payable, other and accrued expenses
    1,073,241       958,046  
Accrued income and other taxes
    63,396       59,927  
Deposits from customers in the banking business
    1,761,137       1,819,396  
Other
    463,166       432,023  
     Total current liabilities
    4,529,981       4,345,314  
                 
Long-term debt
    762,226       871,424  
Accrued pension and severance costs
    309,375       299,248  
Deferred income taxes
    284,499       302,677  
Future insurance policy benefits and other
    3,208,843       3,372,148  
Policyholders’ account in the life insurance business
    1,449,644       1,505,206  
Other
    240,978       227,390  
Total liabilities
    10,785,546       10,923,407  
Redeemable noncontrolling interest
    20,014       2,392  
Commitments and contingent liabilities
               
                 
EQUITY                
Sony Corporation’s stockholders’ equity:                
Common stock, no par value –                
    At March 31, 2012–Shares authorized: 3,600,000,000, shares issued: 1,004,638,164     
    630,923
         
At September 30, 2012–Shares authorized: 3,600,000,000, shares issued: 1,004,638,164
   
 
            630,923  
Additional paid-in capital
    1,160,236       1,127,275  
Retained earnings
    1,084,462       1,031,804  
Accumulated other comprehensive income –
               
    Unrealized gains on securities, net
    64,882       77,783  
Unrealized losses on derivative instruments, net
    (1,050 )     (913 )
    Pension liability adjustment
    (186,833 )     (183,326 )
    Foreign currency translation adjustments
    (719,092 )     (803,657 )
      (842,093 )     (910,113 )
Treasury stock, at cost
               
    Common stock                
At March 31, 2012–1,061,803 shares
    (4,637 )        
At September 30, 2012–1,047,828 shares
             (4,543
      2,028,891       1,875,346  
Noncontrolling interests
    461,216       452,883  
Total equity
    2,490,107       2,328,229  
                 
Total liabilities and equity
    13,295,667       13,254,028  
 
The accompanying notes are an integral part of these statements.

 
- 15 -

 
 
 
Sony Corporation and Consolidated Subsidiaries
 
   
Yen in millions
 
   
Six months ended September 30
 
   
2011
   
2012
 
Sales and operating revenue:
           
Net sales
    2,648,136       2,636,714  
Financial services revenue
    384,262       424,362  
Other operating revenue
    37,512       58,766  
      3,069,910       3,119,842  
Costs and expenses:
               
Cost of sales
    2,015,546       2,051,409  
Selling, general and administrative
    665,539       678,209  
Financial services expenses
    330,133       364,130  
Other operating (income) expense, net
    29,114       (13,837 )
      3,040,332       3,079,911  
Equity in net loss of affiliated companies
    (3,713 )     (3,405 )
Operating income
    25,865       36,526  
Other income:
               
Interest and dividends
    6,615       8,908  
Foreign exchange gain, net
    1,950        
Other
    5,592       2,150  
      14,157       11,058  
Other expenses:
               
Interest
    12,561       13,475  
Loss on devaluation of securities investments
    814       189  
Foreign exchange loss, net
          1,692  
Other
    3,433       3,165  
      16,808       18,521  
Income before income taxes
    23,214       29,063  
Income taxes
    45,892       42,010  
Net loss
    (22,678 )     (12,947 )
Less - Net income attributable to noncontrolling interests
    19,801       27,164  
Net loss attributable to Sony Corporation’s stockholders
    (42,479 )     (40,111 )
 
   
Yen
 
   
Six months ended September 30
 
   
2011
   
2012
 
Per share data:
               
Net loss attributable to Sony Corporation’s stockholders
               
Basic
    (42.33 )     (39.97 )
Diluted
    (42.33 )     (39.97 )
 
The accompanying notes are an integral part of these statements.

 
- 16 -

 
 
Consolidated Statements of Income (Unaudited)
 
Sony Corporation and Consolidated Subsidiaries
 
   
Yen in millions
 
   
Three months ended September 30
 
   
2011
   
2012
 
Sales and operating revenue:
           
Net sales
    1,372,196       1,341,262  
Financial services revenue
    183,359       230,645  
Other operating revenue
    19,434       32,752  
      1,574,989       1,604,659  
Costs and expenses:
               
Cost of sales
    1,041,977       1,044,996  
Selling, general and administrative
    345,393       331,459  
Financial services expenses
    158,485       198,478  
Other operating (income) expense, net
    31,891       (3,651 )
      1,577,746       1,571,282  
Equity in net income (loss) of affiliated companies
    1,122       (3,126 )
Operating income (loss)
    (1,635 )     30,251  
Other income:
               
Interest and dividends
    2,341       3,198  
Foreign exchange gain, net
    5,585        
Other
    3,274       953  
      11,200       4,151  
Other expenses:
               
Interest
    6,449       5,912  
Loss on devaluation of securities investments
    536       187  
Foreign exchange loss, net
          7,114  
Other
    2,485       1,539  
      9,470       14,752  
Income before income taxes
    95       19,650  
Income taxes
    18,358       22,008  
Net loss
    (18,263 )     (2,358 )
Less - Net income attributable to noncontrolling interests
    8,714       13,112  
Net loss attributable to Sony Corporation’s stockholders
    (26,977 )     (15,470 )
 
   
Yen
 
   
Three months ended September 30
 
   
2011
   
2012
 
Per share data:
             
Net loss attributable to Sony Corporation’s stockholders
             
Basic
    (26.88 )     (15.41 )
Diluted
    (26.88 )     (15.41 )
 
The accompanying notes are an integral part of these statements.
 


 
- 17 -

 
 
Sony Corporation and Consolidated Subsidiaries
 
   
Yen in millions
 
   
Six months ended September 30
 
   
2011
   
2012
 
Net loss
    (22,678 )     (12,947 )
Other comprehensive income, net of tax
               
Unrealized gains on securities
    19,095       18,652  
Unrealized gains on derivative instruments
    1,829       137  
Pension liability adjustment
    2,078       2,046  
Foreign currency translation adjustments
    (140,725 )     (85,329 )
Total comprehensive loss
    (140,401 )     (77,441 )
Less – Comprehensive income attributable to noncontrolling interests
    25,842       30,690  
Comprehensive loss attributable to Sony Corporations stockholders
    (166,243 )     (108,131 )
 
   
Yen in millions
 
   
Three months ended September 30
 
   
2011
   
2012
 
Net loss
    (18,263 )     (2,358 )
Other comprehensive income, net of tax
               
Unrealized gains on securities
    706       18,545  
Unrealized gains (losses) on derivative instruments
    1,377       (29 )
Pension liability adjustment
    1,505       436  
Foreign currency translation adjustments
    (111,302 )     (6,190 )
Total comprehensive income (loss)
    (125,977 )     10,404  
Less – Comprehensive income attributable to noncontrolling interests
    8,255       16,821  
Comprehensive loss attributable to Sony Corporations stockholders
    (134,232 )     (6,417 )
 
The accompanying notes are an integral part of these statements.

 
- 18 -

 
 
Sony Corporation and Consolidated Subsidiaries
 
   
Yen in millions
 
   
Six months ended September 30
 
   
2011
   
2012
 
Cash flows from operating activities:
           
 Net loss
    (22,678 )     (12,947 )
Adjustments to reconcile net loss to net cash provided by operating activities –
               
Depreciation and amortization, including amortization of deferred insurance acquisition costs
    161,566       163,521  
Amortization of film costs
    77,394       85,707  
Stock-based compensation expense
    1,165       764  
    Accrual for pension and severance costs, less payments
    127       (3,120 )
    Other operating (income) expense, net
    29,114       (13,837 )
    Loss on devaluation of securities investments
    814       189  
Loss on revaluation of marketable securities held in the financial service business for trading purpose, net
    24,513       16,538  
Loss on revaluation or impairment of securities investments held in the financial service business, net
    8,770       3,175  
    Deferred income taxes
    (15,759 )     3,905  
Equity in net loss of affiliated companies, net of dividends
    19,078       3,734  
    Changes in assets and liabilities:
               
     Increase in notes and accounts receivable, trade
    (26,568 )     (16,944 )
     Increase in inventories
    (197,318 )     (159,456 )
     Increase in film costs
    (91,296 )     (84,164 )
     (Decrease) increase in notes and accounts payable, trade
    75,387       (55,729 )
     (Decrease) increase in accrued income and other taxes
    10,265       (5,786 )
     Increase in future insurance policy benefits and other
    140,622       161,526  
     Increase in deferred insurance acquisition costs
    (35,172 )     (36,011 )
     Increase in marketable securities held in the financial service business for trading purpose
    (16,304 )     (13,725 )
     (Increase) decrease in other current assets
    (91,790 )     3,863  
     (Decrease) increase in other current liabilities
    16,539       (48,879 )
Other
    80,843       57,113  
        Net cash provided by operating activities
    149,312       49,437  
 
(Continued on following page.)

 
- 19 -

 
 
Consolidated Statements of Cash Flows (Unaudited)
 
   
Yen in millions
 
   
Six months ended September 30
 
   
2011
   
2012
 
Cash flows from investing activities:
           
Payments for purchases of fixed assets
    (184,209 )     (151,314 )
Proceeds from sales of fixed assets
    6,124       17,801  
Payments for investments and advances by financial service business
    (503,407 )     (528,155 )
Payments for investments and advances (other than financial service business)
    (11,095 )     (33,884 )
Proceeds from sales or return of investments and collections of advances by financial service business
    247,931       178,266  
Proceeds from sales or return of investments and collections of advances (other than financial service business)
    21,344       21,403  
Proceeds from sales of businesses
    2,502       51,831  
Other
    3,075       (26,774 )
          Net cash used in investing activities
    (417,735 )     (470,826 )
Cash flows from financing activities:
               
Proceeds from issuance of long-term debt
    839       149,521  
Payments of long-term debt
    (77,737 )     (227,185 )
Increase in short-term borrowings, net
    77,897       185,580  
Increase in deposits from customers in the financial service business, net
    42,346       115,590  
Dividends paid
    (12,505 )     (12,488 )
Payment for purchase of So-net shares from noncontrolling interests
 
      (54,920 )
Other
    (6,890 )     (8,124 )
          Net cash provided by financing activities
    23,950       147,974  
Effect of exchange rate changes on cash and cash equivalents
    (50,919 )     (32,334 )
Net decrease in cash and cash equivalents
    (295,392 )     (305,749 )
Cash and cash equivalents at beginning of the fiscal year
    1,014,412       894,576  
Cash and cash equivalents at end of the period
    719,020       588,827  
                 
The accompanying notes are an integral part of these statements.
 
 
- 20 -

 
 
Index to Notes to Consolidated Financial Statements
 
Sony Corporation and Consolidated Subsidiaries
 
 
 
- 21 -

 

 
Sony Corporation and Consolidated Subsidiaries
 
 
The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), except for certain disclosures which have been omitted.  Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform with U.S. GAAP.  These adjustments were not recorded in the statutory books and records as Sony Corporation and its subsidiaries in Japan maintain their records and prepare their statutory financial statements in accordance with accounting principles generally accepted in Japan while its foreign subsidiaries maintain their records and prepare their financial statements in conformity with accounting principles generally accepted in the countries of their domiciles.
 
(1)  Recently adopted accounting pronouncements:
 
Accounting for costs associated with acquiring or renewing insurance contracts -
 
In October 2010, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for costs associated with acquiring or renewing insurance contracts.  Under the new guidance, acquisition costs are to include only those costs that are directly related to the acquisition or renewal of insurance contracts by applying a model similar to the accounting for loan origination costs.  An entity may defer incremental direct costs of contract acquisitions that are incurred in transactions with independent third parties or employees as well as the portion of employee compensation and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts.  Additionally, an entity may capitalize as a deferred acquisition cost only those advertising costs meeting the capitalization criteria for direct-response advertising.  This guidance was effective for Sony as of April 1, 2012.  Sony applied this guidance prospectively from the date of adoption.  The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.
 
Testing goodwill for impairment -
 
In September 2011, the FASB issued a new standard to simplify how an entity tests goodwill for impairment.  The new standard allows companies an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining if it is necessary to perform the two-step quantitative goodwill impairment test.  Under the new standard, a company is no longer required to calculate the fair value of a reporting unit unless the company determines, based on the qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount.  The new standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.  This standard was effective for Sony as of April 1, 2012.  The adoption of this standard did not have a material impact on Sony’s results of operations and financial position.
 
Presentation of comprehensive income -
 
In June 2011, the FASB issued new accounting guidance for the presentation of comprehensive income.  The amendments require reporting entities to report components of comprehensive income in either a continuous statement of comprehensive income or two separate but consecutive statements.  This change is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and is applied retrospectively.  Subsequently, in December 2011, the FASB issued updated accounting guidance for deferral of the effective date for amendments to the presentation of reclassifications of items out of accumulated other comprehensive income.  The remaining requirements of the guidance issued in June 2011 become effective as originally issued.  The guidance was effective for Sony as of April 1, 2012.  Since this guidance impacts disclosures only, its adoption did not have an impact on Sony’s results of operations and financial position.
 
(2)  
Change in depreciation method:
 
Effective April 1, 2012, Sony Corporation and its Japanese subsidiaries changed the depreciation method for property, plant and equipment, except for certain semiconductor manufacturing facilities and buildings whose depreciation is computed on the straight-line method, from the declining-balance method to the straight-line method.  Concurrently, estimated useful lives for certain assets were also changed.  Sony believes that the straight-line method better reflects the pattern of consumption of the estimated future benefits to be derived from those assets being depreciated and provides a better matching of costs and revenues over the assets’ estimated useful lives.
 
 
- 22 -

 
 
In accordance with the accounting guidance for a change in accounting estimate effected by a change in accounting principle, a change in depreciation method is treated on a prospective basis as a change in estimate and prior period results have not been restated.  The net effect of the changes caused a decrease in depreciation expense of 2,493 million yen and 5,233 million yen for the three and six months ended September 30, 2012, respectively, which is primarily included in cost of sales in the consolidated statements of income.  Net loss attributable to Sony Corporation’s stockholders, basic net loss per share attributable to Sony Corporation’s stockholders and diluted net loss per share attributable to Sony Corporation’s stockholders decreased by 2,307 million yen, 2.30 yen and 2.30 yen, respectively, for the three ended September 30, 2012, and decreased by 4,103 million yen, 4.09 yen and 4.09 yen, respectively, for the six months ended September 30, 2012.
 
(3)  
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 extraordinary transactions.  Such income tax provision is separately reported from the provision based on the ETR in the interim period in which they occur.
 
(4)  
Out of period adjustment:
 
In the first quarter of the fiscal year ended March 31, 2012, Sony recorded an out of period adjustment to correct an error in the calculation of indirect taxes at a subsidiary.  The indirect tax calculation error began in 2005 and continued until it was identified by Sony in the first quarter of the fiscal year ended March 31, 2012.  The adjustment, which primarily related to the Home Entertainment & Sound segment, impacted net sales, selling, general and administrative expenses and interest expenses and, in the aggregate, decreased income before income taxes in consolidated statements of income by 4,413 million yen for the six months ended September 30, 2011.  Sony determined that the adjustment was not material to the consolidated financial statements for the three and six months ended September 30, 2011 or any prior annual or interim periods and for the year ended March 31, 2012.
 
 
- 23 -

 

 
Marketable securities and securities investments, mainly included in the Financial Services segment, are comprised of debt and equity securities of which the aggregate cost, gross unrealized gains and losses and fair value pertaining to available-for-sale securities and held-to-maturity securities are as follows:
 
   
Yen in millions
 
   
March 31, 2012
   
September 30, 2012
 
   
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
    1,036,946       55,384       (879 )     1,091,451       1,082,571       76,594       (750 )     1,158,415  
                                                                 
Japanese local government bonds
    33,513       163       (1 )     33,675       66,810       174       (16 )     66,968  
                                                                 
Japanese corporate bonds
    293,885       1,489       (224 )     295,150       250,953       1,397       (134 )     252,216  
                                                                 
Foreign corporate bonds
    377,609       4,705       (7,063 )     375,251       386,333       3,384       (6,463 )     383,254  
                                                                 
Other
    22,383       1,548       (6 )     23,925       21,341       1,501             22,842  
      1,764,336       63,289       (8,173 )     1,819,452       1,808,008       83,050       (7,363 )     1,883,695  
                                                                 
Equity securities
    60,694       53,016       (1,513 )     112,197       52,660       54,174       (7,114 )     99,720  
                                                                 
Held-to-maturity securities:
                                                               
Japanese national government bonds
    3,404,069       157,740       (4,499 )     3,557,310       3,634,427       206,922       (1,161 )     3,840,188  
                                                                 
  Japanese local government bonds
    12,592       277             12,869       10,968       339       (0 )     11,307  
                                                                 
  Japanese corporate bonds
    31,379       1,501             32,880       30,145       1,887             32,032  
                                                                 
  Foreign corporate bonds
    46,441       10             46,451       43,709       12             43,721  
      3,494,481       159,528       (4,499 )     3,649,510       3,719,249       209,160       (1,161 )     3,927,248  
                                                                 
Total
    5,319,511       275,833       (14,185 )     5,581,159       5,579,917       346,384       (15,638 )     5,910,663  
 
 
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The fair value of Sony’s assets and liabilities that are measured at fair value on a recurring basis are as follows:
 
   
Yen in millions
 
   
March 31, 2012
 
         
Presentation in the consolidated balance sheets
 
   
Level 1
   
Level 2
   
Level 3
   
Total
   
Marketable securities
   
Securities investments and other
   
Other
current
assets/
liabilities
   
Other
noncurrent
assets/
liabilities
 
                                                 
Assets:
                                               
Trading securities
    214,036       219,455             433,491       433,491                    
Available-for-sale securities
                                                               
Debt securities
                                                               
    Japanese national government bonds
          1,091,451             1,091,451       23,267       1,068,184              
    Japanese local government bonds
          33,675             33,675       1,405       32,270              
    Japanese corporate bonds
          293,637       1,513       295,150       123,434       171,716              
    Foreign corporate bonds
          359,960       15,291       375,251       75,764       299,487              
Other
          23,616       309       23,925             23,925              
Equity securities
    111,517       680             112,197             112,197              
Other investments *1
    5,475       4,592       73,451       83,518             83,518              
Derivative assets *2
          18,518             18,518                   18,513       5  
Total assets
    331,028       2,045,584       90,564       2,467,176       657,361       1,791,297       18,513       5  
Liabilities:
                                                               
Derivative liabilities *2
          41,218             41,218                   40,034       1,184  
Total liabilities
          41,218             41,218                   40,034       1,184  
 
 
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Yen in millions
 
   
September 30, 2012
 
         
Presentation in the consolidated balance sheets
 
   
Level 1
   
Level 2
   
Level 3
   
Total
   
Marketable securities
   
Securities investments and other
   
Other current assets/
liabilities
   
Other noncurrent assets/
liabilities
 
                                                 
Assets:
                                               
Trading securities
    205,732       224,381             430,113       430,113                    
Available-for-sale securities
                                                               
Debt securities
                                                               
Japanese national government bonds
          1,158,415             1,158,415       29,484       1,128,931              
Japanese local government bonds
          66,968             66,968       1,402       65,566              
Japanese corporate bonds
          250,002       2,214       252,216       88,580       163,636              
    Foreign corporate bonds
          365,309       17,945       383,254       68,860       314,394              
Other
          22,526       316       22,842       178       22,664              
Equity securities
    98,898       822             99,720             99,720              
Other investments *1
    5,251       4,280       70,252       79,783             79,783              
Derivative assets *2
          13,919             13,919                   13,872       47  
Total assets
    309,881       2,106,622       90,727       2,507,230       618,617       1,874,694       13,872       47  
Liabilities:
                                                               
Derivative liabilities *2
          43,359             43,359                   42,443       916  
Total liabilities
          43,359             43,359