6-K 1 a52259687.htm SONY CORPORATION 6-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of August 2020
Commission File Number: 001-06439

SONY CORPORATION
(Translation of registrant's name into English)

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN
(Address of principal executive offices)

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

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,
 
Form 20-F  X
Form 40-F __
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, Yes No X
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-______
 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
SONY CORPORATION
 
(Registrant)
   
   
 
By:  /s/  Hiroki Totoki
 
                (Signature)
 
Hiroki Totoki
 
Executive Deputy President and
 
Chief Financial Officer
 
Date: August 4, 2020

List of materials

Documents attached hereto:
 
i) Press release: Quarterly Financial Statements for the First Quarter Ended June 30, 2020 And Outlook for the Fiscal Year Ending March 31, 2021




Quarterly Financial Statements
for the First Quarter Ended June 30, 2020
And
Outlook for the Fiscal Year Ending March 31, 2021


August 4, 2020
Sony Corporation


Quarterly Financial Statements (Unaudited)
F-1
   
Consolidated Balance Sheets
F-1
Consolidated Statements of Income (Three months ended June 30)
F-2
Consolidated Statements of Comprehensive Income (Three months ended June 30)
F-2
Consolidated Statements of Cash Flows (Three months ended June 30)
F-3
Notes to Consolidated Financial Statements
F-4
-     Business Segment Information
F-4
-     Going Concern Assumption
F-9
-     Significant Changes in Shareholders’ Equity
F-9
-     Accounting Policies and Other Information
F-9
   
Current View Regarding the Impact on the Business from the Spread of the Coronavirus Disease 2019 (“COVID-19”)
1
   
Outlook for the Fiscal Year Ending March 31, 2021
3
   
Outlook for the Fiscal Year Ending March 31, 2021
3
   
Cautionary Statement
7


All amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. (“U.S. GAAP”).
 
Sony Corporation and its consolidated subsidiaries are together referred to as “Sony”.
 


(Unaudited)
                 
Consolidated Financial Statements
                 
Consolidated Balance Sheets
                 
   
(Millions of yen)
 
    March 31
    June 30
   
Change from
 
ASSETS
  2020
    2020
   
March 31, 2020
 
Current assets:
                 
Cash and cash equivalents
 
¥
1,512,357
   
¥
1,448,614
   
¥
-63,743
 
Marketable securities
   
1,847,772
     
2,105,977
     
+258,205
 
Notes and accounts receivable, trade and contract assets
   
1,028,793
     
1,005,429
     
-23,364
 
Allowance for credit losses
   
(25,873
)
   
(26,060
)
   
-187
 
Inventories
   
589,969
     
588,797
     
-1,172
 
Other receivables
   
188,106
     
179,568
     
-8,538
 
Prepaid expenses and other current assets
   
594,021
     
608,271
     
+14,250
 
 Total current assets
   
5,735,145
     
5,910,596
     
+175,451
 
                         
Film costs
   
427,336
     
417,646
     
-9,690
 
                         
Investments and advances:
                       
Affiliated companies
   
207,922
     
210,800
     
+2,878
 
Securities investments and other
   
12,526,210
     
12,937,934
     
+411,724
 
Allowance for credit losses
         
(7,677
)
   
-7,677
 
     
12,734,132
     
13,141,057
     
+406,925
 
                         
Property, plant and equipment:
                       
Land
   
81,482
     
79,860
     
-1,622
 
Buildings
   
659,556
     
658,911
     
-645
 
Machinery and equipment
   
1,725,720
     
1,792,832
     
+67,112
 
Construction in progress
   
76,391
     
71,599
     
-4,792
 
     
2,543,149
     
2,603,202
     
+60,053
 
Less-Accumulated depreciation
   
1,634,505
     
1,677,282
     
+42,777
 
     
908,644
     
925,920
     
+17,276
 
                         
Other assets:
                       
Operating lease right-of-use assets
   
359,510
     
351,828
     
-7,682
 
Finance lease right-of-use assets
   
33,100
     
31,778
     
-1,322
 
Intangibles, net
   
906,310
     
902,575
     
-3,735
 
Goodwill
   
783,888
     
783,453
     
-435
 
Deferred insurance acquisition costs
   
600,901
     
617,899
     
+16,998
 
Deferred income taxes
   
210,372
     
202,880
     
-7,492
 
Other
   
340,005
     
340,724
     
+719
 
     
3,234,086
     
3,231,137
     
-2,949
 
  Total assets
 
¥
23,039,343
   
¥
23,626,356
   
¥
+587,013
 
                         
                         
LIABILITIES AND EQUITY
                       
Current liabilities:
                       
Short-term borrowings
 
¥
810,176
   
¥
977,414
   
¥
+167,238
 
Current portion of long-term debt
   
29,807
     
28,516
     
-1,291
 
Current portion of long-term operating lease liabilities
   
68,942
     
72,275
     
+3,333
 
Notes and accounts payable, trade
   
380,810
     
391,223
     
+10,413
 
Accounts payable, other and accrued expenses
   
1,630,197
     
1,461,252
     
-168,945
 
Accrued income and other taxes
   
145,996
     
148,208
     
+2,212
 
Deposits from customers in the banking business
   
2,440,783
     
2,558,346
     
+117,563
 
Other
   
733,732
     
692,863
     
-40,869
 
 Total current liabilities
   
6,240,443
     
6,330,097
     
+89,654
 
                         
Long-term debt
   
634,966
     
654,145
     
+19,179
 
Long-term operating lease liabilities
   
314,836
     
304,647
     
-10,189
 
Accrued pension and severance costs
   
324,655
     
320,439
     
-4,216
 
Deferred income taxes
   
549,538
     
556,206
     
+6,668
 
Future insurance policy benefits and other
   
6,246,047
     
6,331,757
     
+85,710
 
Policyholders’ account in the life insurance business
   
3,642,271
     
3,843,393
     
+201,122
 
Other
   
289,285
     
283,852
     
-5,433
 
  Total liabilities
   
18,242,041
     
18,624,536
     
+382,495
 
                         
Redeemable noncontrolling interest
   
7,767
     
9,916
     
+2,149
 
                         
Equity:
                       
Sony Corporation’s stockholders’ equity:
                       
Common stock
   
880,214
     
880,214
   
 
Additional paid-in capital
   
1,289,719
     
1,290,992
     
+1,273
 
Retained earnings
   
2,768,856
     
2,997,579
     
+228,723
 
Accumulated other comprehensive income
   
(580,980
)
   
(612,648
)
   
-31,668
 
Treasury stock, at cost
   
(232,503
)
   
(225,287
)
   
+7,216
 
     
4,125,306
     
4,330,850
     
+205,544
 
                         
Noncontrolling interests
   
664,229
     
661,054
     
-3,175
 
  Total equity
   
4,789,535
     
4,991,904
     
+202,369
 
  Total liabilities and equity
 
¥
23,039,343
   
¥
23,626,356
   
¥
+587,013
 
 
F-1

 
Consolidated Statements of Income
                 
   
(Millions of yen, except per share amounts)
 
    Three months ended June 30  

  2019     2020
   
Change
 
Sales and operating revenue:
                 
Net sales
 
¥
1,558,646
   
¥
1,504,870
   
¥
-53,776
 
Financial services revenue
   
334,820
     
444,916
     
+110,096
 
Other operating revenue
   
32,258
     
19,133
     
-13,125
 
     
1,925,724
     
1,968,919
     
+43,195
 
                         
Costs and expenses:
                       
Cost of sales
   
1,061,038
     
1,052,673
     
-8,365
 
Selling, general and administrative
   
350,167
     
301,166
     
-49,001
 
Financial services expenses
   
288,493
     
397,659
     
+109,166
 
Other operating income, net
   
(3,557
)
   
(11,248
)
   
-7,691
 
     
1,696,141
     
1,740,250
     
+44,109
 
                         
Equity in net income (loss) of affiliated companies
   
1,342
     
(274
)
   
-1,616
 
                         
Operating income
   
230,925
     
228,395
     
-2,530
 
                         
Other income:
                       
Interest and dividends
   
5,805
     
2,836
     
-2,969
 
Gain on equity securities, net
   
323
     
96,900
     
+96,577
 
Other
   
1,119
     
1,273
     
+154
 
     
7,247
     
101,009
     
+93,762
 
                         
Other expenses:
                       
Interest expenses
   
4,880
     
1,805
     
-3,075
 
Foreign exchange loss, net
   
1,696
     
5,054
     
+3,358
 
Other
   
578
     
2,626
     
+2,048
 
     
7,154
     
9,485
     
+2,331
 
                         
Income before income taxes
   
231,018
     
319,919
     
+88,901
 
                         
Income taxes
   
65,012
     
72,878
     
+7,866
 
                         
Net income
   
166,006
     
247,041
     
+81,035
 
                         
Less - Net income attributable to noncontrolling interests
   
13,884
     
13,790
     
-94
 
                         
Net income attributable to Sony Corporation’s
                       
 stockholders
 
¥
152,122
   
¥
233,251
   
¥
+81,129
 
                         
                         
                         
Per share data:
                       
Net income attributable to Sony Corporation’s
                       
   stockholders
                       
   — Basic
 
¥
121.78
   
¥
191.09
   
¥
+69.31
 
   — Diluted
   
119.22
     
186.94
     
+67.72
 
 
 
Consolidated Statements of Comprehensive Income
                 
    (Millions of yen)
 
    Three months ended June 30  
 
  2019     2020    
Change
 
                   
Net income
 
¥
166,006
   
¥
247,041
   
¥
+81,035
 
                         
Other comprehensive income, net of tax –
                       
Unrealized gains (losses) on securities
   
26,301
     
(32,111
)
   
-58,412
 
Unrealized gains (losses) on derivative instruments
   
764
     
(260
)
   
-1,024
 
Pension liability adjustment
   
2,914
     
566
     
-2,348
 
Foreign currency translation adjustments
   
(42,698
)
   
(11,483
)
   
+31,215
 
Debt valuation adjustments
         
(1,650
)
   
-1,650
 
                         
Total comprehensive income
   
153,287
     
202,103
     
+48,816
 
                         
Less - Comprehensive income attributable
                       
   to noncontrolling interests
   
22,622
     
520
     
-22,102
 
                         
Comprehensive income attributable
                       
   to Sony Corporation’s stockholders
 
¥
130,665
   
¥
201,583
   
¥
+70,918
 
 
F-2


Consolidated Statements of Cash Flows
           
    (Millions of yen)  
    Three months ended June 30  
 
  2019     2020  
Cash flows from operating activities:
           
Net income
 
¥
166,006
   
¥
247,041
 
Adjustments to reconcile net income to net cash
               
provided by (used in) operating activities:
               
Depreciation and amortization, including amortization of
               
    deferred insurance acquisition costs and contract costs
   
93,412
     
90,101
 
Amortization of film costs
   
56,546
     
56,858
 
Accrual for pension and severance costs, less payments
   
5
     
355
 
Other operating income, net
   
(3,557
)
   
(11,248
)
Gain on securities investments, net (other than financial services business)
   
(329
)
   
(96,891
)
Gain on marketable securities and securities investments held in the financial
               
    services business, net
   
(9,172
)
   
(154,558
)
Deferred income taxes
   
(1,352
)
   
26,114
 
Equity in net loss of affiliated companies, net of dividends
   
1,196
     
3,518
 
Changes in assets and liabilities:
               
   (Increase) decrease in notes, accounts receivable, trade and contract assets
   
(85,901
)
   
19,100
 
   Increase in inventories
   
(51,976
)
   
(26,318
)
   Increase in film costs
   
(91,680
)
   
(20,747
)
   Increase in notes and accounts payable, trade
   
55,807
     
10,513
 
   Increase in accrued income and other taxes
   
6,836
     
15,501
 
   Increase in future insurance policy benefits and other
   
138,925
     
255,401
 
   Increase in deferred insurance acquisition costs
   
(22,185
)
   
(22,269
)
   Increase in marketable securities held in the life insurance business
   
(59,080
)
   
(46,580
)
   Increase in other current assets
   
(39,226
)
   
(25,561
)
   Decrease in other current liabilities
   
(205,943
)
   
(173,983
)
Other
   
50,845
     
(20,162
)
        Net cash provided by (used in) operating activities
   
(823
)
   
126,185
 
                 
Cash flows from investing activities:
               
Payments for purchases of fixed assets
   
(78,264
)
   
(132,868
)
Proceeds from sales of fixed assets
   
7,409
     
3,945
 
Payments for investments and advances by financial services business
   
(302,434
)
   
(416,809
)
Payments for investments and advances
               
    (other than financial services business)
   
(22,969
)
   
(47,958
)
Proceeds from sales or return of investments and collections of advances
               
   by financial services business
   
72,375
     
99,782
 
Proceeds from sales or return of investments and collections of advances
               
   (other than financial services business)
   
303
     
12,680
 
Proceeds from sales of businesses
         
1,313
 
Other
   
427
     
4,642
 
        Net cash used in investing activities
   
(323,153
)
   
(475,273
)
                 
Cash flows from financing activities:
               
Proceeds from issuance of long-term debt
   
5,775
     
44,214
 
Payments of long-term debt
   
(114,297
)
   
(25,615
)
Increase in short-term borrowings, net
   
198,835
     
164,911
 
Increase in deposits from customers in the financial services business, net
   
57,354
     
146,465
 
Dividends paid
   
(25,035
)
   
(30,094
)
Payments for purchase of treasury stock
   
(25,354
)
   
(29
)
Other
   
(10,622
)
   
(9,600
)
        Net cash provided by financing activities
   
86,656
     
290,252
 
                 
Effect of exchange rate changes on cash and cash equivalents, including restricted
   
(23,451
)
   
(6,517
)
                 
Net decrease in cash and cash equivalents, including restricted
   
(260,771
)
   
(65,353
)
Cash and cash equivalents, including restricted, at beginning of the fiscal year
   
1,473,813
     
1,515,295
 
                 
Cash and cash equivalents, including restricted, at end of the period
   
1,213,042
     
1,449,942
 
                 
Less - restricted cash and cash equivalents, included in other current assets and
   
2,535
     
1,328
 
other assets
               
Cash and cash equivalents at end of the period
 
¥
1,210,507
   
¥
1,448,614
 

F-3


Notes to Consolidated Financial Statements
                 
Business Segment Information
                 
(Business Segments)
                 
   
(Millions of yen)
 
   
Three months ended June 30
 
Sales and operating revenue
  2019
    2020    
Change
 
                   
Game & Network Services
                 
Customers
 
¥
441,750
   
¥
599,049
   
¥
+157,299
 
Intersegment
   
15,711
     
7,060
     
-8,651
 
Total
   
457,461
     
606,109
     
+148,648
 
                         
Music
                       
Customers
   
200,038
     
173,735
     
-26,303
 
Intersegment
   
2,215
     
3,380
     
+1,165
 
Total
   
202,253
     
177,115
     
-25,138
 
                         
Pictures
                       
Customers
   
185,759
     
174,441
     
-11,318
 
Intersegment
   
329
     
648
     
+319
 
Total
   
186,088
     
175,089
     
-10,999
 
                         
Electronics Products & Solutions
                       
Customers
   
480,656
     
327,393
     
-153,263
 
Intersegment
   
3,259
     
4,453
     
+1,194
 
Total
   
483,915
     
331,846
     
-152,069
 
                         
Imaging & Sensing Solutions
                       
Customers
   
211,175
     
198,371
     
-12,804
 
Intersegment
   
19,503
     
7,815
     
-11,688
 
Total
   
230,678
     
206,186
     
-24,492
 
                         
Financial Services
                       
Customers
   
334,820
     
444,916
     
+110,096
 
Intersegment
   
2,115
     
1,844
     
-271
 
Total
   
336,935
     
446,760
     
+109,825
 
                         
All Other
                       
Customers
   
60,632
     
46,097
     
-14,535
 
Intersegment
   
8,959
     
7,998
     
-961
 
Total
   
69,591
     
54,095
     
-15,496
 
                         
Corporate and elimination
   
(41,197
)
   
(28,281
)
   
+12,916
 
Consolidated total
 
¥
1,925,724
   
¥
1,968,919
   
¥
+43,195
 

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other.
Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the
Electronics Products & Solutions (“EP&S”) segment.
All Other intersegment amounts primarily consist of transactions with the G&NS segment, the Music segment and the Pictures segment.
Corporate and elimination includes certain brand and patent royalty income.

                   
    (Millions of yen)  
   
Three months ended June 30
 
Operating income (loss)
  2019     2020    
Change
 
                   
Game & Network Services
 
¥
73,804
   
¥
124,037
   
¥
+50,233
 
Music
   
38,277
     
34,892
     
-3,385
 
Pictures
   
376
     
24,742
     
+24,366
 
Electronics Products & Solutions
   
25,066
     
(9,121
)
   
-34,187
 
Imaging & Sensing Solutions
   
49,528
     
25,426
     
-24,102
 
Financial Services
   
46,105
     
47,203
     
+1,098
 
All Other
   
(2,602
)
   
3,532
     
+6,134
 
Total
   
230,554
     
250,711
     
+20,157
 
                         
Corporate and elimination
   
371
     
(22,316
)
   
-22,687
 
Consolidated total
 
¥
230,925
   
¥
228,395
   
¥
-2,530
 

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

F-4


(Sales to Customers by Product Category)

The following table is a breakdown of sales and operating revenue to external customers by product category for each segment. Sony management views each segment as a single operating segment.

   
(Millions of yen)
 
   
Three months ended June 30
 
Sales and operating revenue (to external customers)
  2019
    2020
   
Change
 
                   
Game & Network Services
                 
Digital Software and Add-on Content
 
¥
215,964
   
¥
394,637
   
¥
+178,673
 
Network Services
   
83,606
     
93,295
     
+9,689
 
Hardware and Others
   
142,180
     
111,117
     
-31,063
 
Total
   
441,750
     
599,049
     
+157,299
 
                         
Music
                       
Recorded Music – Streaming
   
66,482
     
68,900
     
+2,418
 
Recorded Music – Others
   
45,480
     
29,186
     
-16,294
 
Music Publishing
   
39,290
     
31,096
     
-8,194
 
Visual Media and Platform
   
48,786
     
44,553
     
-4,233
 
Total
   
200,038
     
173,735
     
-26,303
 
                         
Pictures
                       
Motion Pictures
   
80,870
     
65,077
     
-15,793
 
Television Productions
   
46,486
     
64,303
     
+17,817
 
Media Networks
   
58,403
     
45,061
     
-13,342
 
Total
   
185,759
     
174,441
     
-11,318
 
                         
Electronics Products & Solutions
                       
Televisions
   
147,761
     
106,568
     
-41,193
 
Audio and Video
   
78,743
     
47,081
     
-31,662
 
Still and Video Cameras
   
100,254
     
46,405
     
-53,849
 
Mobile Communications
   
100,550
     
94,229
     
-6,321
 
Other
   
53,348
     
33,110
     
-20,238
 
Total
   
480,656
     
327,393
     
-153,263
 
                         
Imaging & Sensing Solutions
   
211,175
     
198,371
     
-12,804
 
                         
Financial Services
   
334,820
     
444,916
     
+110,096
 
                         
All Other
   
60,632
     
46,097
     
-14,535
 
                         
Corporate
   
10,894
     
4,917
     
-5,977
 
Consolidated total
 
¥
1,925,724
   
¥
1,968,919
   
¥
+43,195
 

Sony has realigned its product category configuration in the Music segment with a more detailed breakdown in Recorded Music from the fourth quarter of the fiscal year ended March 31, 2020. In connection with the realignment, all prior period sales amounts by product category in the table above have been reclassified to conform to the current presentation.

In the G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on content through network by Sony Interactive Entertainment; Network Services includes network services relating to game, video and music content; Hardware and Others includes home gaming consoles, packaged software and peripheral devices. In the Music segment, Recorded Music – Streaming includes the distribution of digital recorded music by streaming; Recorded Music – Others includes the distribution of recorded music by physical media and digital download as well as revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles, including game applications based on the animation titles, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of live-action and animated motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks worldwide. In the EP&S segment, Televisions includes LCD and OLED televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones and memory-based portable audio devices; Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Mobile Communications includes smartphones and an internet-related service business; Other includes display products such as projectors and medical equipment.

Within the EP&S segment, the operating income of Mobile Communications for the first quarter of the fiscal years ended March 31, 2020 and 2021 was 1,039 million yen and 11,036 million yen, respectively.

F-5


(Condensed Financial Services Financial Statements)

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

Condensed Balance Sheets
                                   
                                     
    (Millions of yen)  
    Financial Services    
Sony without
Financial Services
    Consolidated  
    March 31
    June 30
    March 31
    June 30
    March 31
    June 30
 

  2020
    2020     2020     2020
    2020
    2020
 
  ASSETS
                                   
Current assets:
                                   
Cash and cash equivalents
 
¥
550,039
   
¥
559,770
   
¥
962,318
   
¥
888,844
   
¥
1,512,357
   
¥
1,448,614
 
Marketable securities
   
1,847,772
     
2,105,977
                 
1,847,772
     
2,105,977
 
Notes and accounts receivable, trade and contract assets
   
10,532
     
13,053
     
999,976
     
979,756
     
1,002,920
     
979,369
 
Inventories
               
589,969
     
588,797
     
589,969
     
588,797
 
Other receivables
   
73,117
     
61,098
     
115,100
     
118,584
     
188,106
     
179,568
 
Prepaid expenses and other current assets
   
181,247
     
202,134
     
413,496
     
406,870
     
594,021
     
608,271
 
 Total current assets
   
2,662,707
     
2,942,032
     
3,080,859
     
2,982,851
     
5,735,145
     
5,910,596
 
                                                 
Film costs
               
427,336
     
417,646
     
427,336
     
417,646
 
                                                 
Investments and advances
   
12,457,977
     
12,697,326
     
351,936
     
519,122
     
12,734,132
     
13,141,057
 
                                                 
Investments in Financial Services, at cost
               
153,968
     
153,968
             
                                                 
Property, plant and equipment
   
18,247
     
18,243
     
890,640
     
907,933
     
908,644
     
925,920
 
                                                 
Other assets:
                                               
Right-of-use assets
   
58,897
     
58,414
     
333,753
     
325,224
     
392,610
     
383,606
 
Intangibles, net
   
49,871
     
48,492
     
856,439
     
854,083
     
906,310
     
902,575
 
Goodwill
   
10,834
     
10,834
     
773,054
     
772,619
     
783,888
     
783,453
 
Deferred insurance acquisition costs
   
600,901
     
617,899
                 
600,901
     
617,899
 
Deferred income taxes
   
10,365
     
6,260
     
200,021
     
196,631
     
210,372
     
202,880
 
Other
   
38,949
     
35,863
     
305,028
     
308,834
     
340,005
     
340,724
 
     
769,817
     
777,762
     
2,468,295
     
2,457,391
     
3,234,086
     
3,231,137
 
Total assets
 
¥
15,908,748
   
¥
16,435,363
   
¥
7,373,034
   
¥
7,438,911
   
¥
23,039,343
   
¥
23,626,356
 
                                                 
LIABILITIES AND EQUITY
                                               
Current liabilities:
                                               
Short-term borrowings
 
¥
758,737
   
¥
933,153
   
¥
81,246
   
¥
72,777
   
¥
839,983
   
¥
1,005,930
 
Short-term operating lease liabilities
   
9,363
     
9,407
     
59,595
     
62,881
     
68,942
     
72,275
 
Notes and accounts payable, trade
               
380,810
     
391,223
     
380,810
     
391,223
 
Accounts payable, other and accrued expenses
   
40,457
     
30,314
     
1,591,072
     
1,432,082
     
1,630,197
     
1,461,252
 
Accrued income and other taxes
   
22,825
     
10,871
     
123,171
     
137,337
     
145,996
     
148,208
 
Deposits from customers in the banking business
   
2,440,783
     
2,558,346
                 
2,440,783
     
2,558,346
 
Other
   
226,455
     
228,491
     
514,368
     
477,518
     
733,732
     
692,863
 
 Total current liabilities
   
3,498,620
     
3,770,582
     
2,750,262
     
2,573,818
     
6,240,443
     
6,330,097
 
                                                 
Long-term debt
   
240,143
     
260,874
     
398,793
     
397,240
     
634,966
     
654,145
 
Long-term operating lease liabilities
   
41,192
     
39,875
     
273,668
     
264,791
     
314,836
     
304,647
 
Accrued pension and severance costs
   
34,211
     
34,270
     
290,444
     
286,169
     
324,655
     
320,439
 
Deferred income taxes
   
391,883
     
375,961
     
173,022
     
195,613
     
549,538
     
556,206
 
Future insurance policy benefits and other
   
6,246,047
     
6,331,757
                 
6,246,047
     
6,331,757
 
Policyholders’ account in the life insurance business
   
3,642,271
     
3,843,393
                 
3,642,271
     
3,843,393
 
Other
   
21,843
     
20,451
     
289,574
     
285,167
     
289,285
     
283,852
 
  Total liabilities
   
14,116,210
     
14,677,163
     
4,175,763
     
4,002,798
     
18,242,041
     
18,624,536
 
                                                 
Redeemable noncontrolling interest
               
7,767
     
9,916
     
7,767
     
9,916
 
                                                 
Equity:
                                               
Stockholders’ equity of Financial Services
   
1,790,333
     
1,755,921
                         
Stockholders’ equity of Sony without Financial Services
               
3,159,071
     
3,386,984
             
Sony Corporation’s stockholders’ equity
                           
4,125,306
     
4,330,850
 
Noncontrolling interests
   
2,205
     
2,279
     
30,433
     
39,213
     
664,229
     
661,054
 
  Total equity
   
1,792,538
     
1,758,200
     
3,189,504
     
3,426,197
     
4,789,535
     
4,991,904
 
                                                 
  Total liabilities and equity
 
¥
15,908,748
   
¥
16,435,363
   
¥
7,373,034
   
¥
7,438,911
   
¥
23,039,343
   
¥
23,626,356
 

F-6


Condensed Statements of Income                          
                           
    (Millions of yen)
   
Three months ended June 30
 
                           
   
Financial Services
 
Sony without
Financial Services
 
Consolidated
 

  2019
  2020
  2019   2020   2019
  2020
 
                           
Financial services revenue
 
¥
336,935
   
¥
446,760
    ¥     ¥    
¥
334,820
   
¥
444,916
 
Net sales and operating revenue
 
 
     
1,592,343
   

1,525,480
     
1,590,904
     
1,524,003
 
     
336,935
     
446,760
     
1,592,343
     
1,525,480
     
1,925,724
     
1,968,919
 
                                                 
Cost of sales
 
 
       
1,063,869
     
1,055,315
     
1,061,038
     
1,052,673
 
Selling, general and administrative
 
 
       
348,777
     
300,012
     
350,167
     
301,166
 
Financial services expenses
   
290,606
     
399,503
 
   
       
288,493
     
397,659
 
Other operating (income) expense, net
   
36
     
54
     
(3,593
)
   
(11,302
)
   
(3,557
)
   
(11,248
)
     
290,642
     
399,557
     
1,409,053
     
1,344,025
     
1,696,141
     
1,740,250
 
                                                 
Equity in net income (loss) of affiliated companies
   
(188
)

       
1,530
     
(274
)
   
1,342
     
(274
)
                                                 
Operating income
   
46,105
     
47,203
     
184,820
     
181,181
     
230,925
     
228,395
 
                                                 
Other income (expenses), net
   
(46
)
   
(20
)
   
17,830
     
111,359
     
93
     
91,524
 
                                                 
Income before income taxes
   
46,059
     
47,183
     
202,650
     
292,540
     
231,018
     
319,919
 
                                                 
Income taxes
   
13,982
     
13,187
     
51,030
     
59,695
     
65,012
     
72,878
 
                                                 
Net income
   
32,077
     
33,996
     
151,620
     
232,845
     
166,006
     
247,041
 
                                                 
Less - Net income attributable to noncontrolling interests
   
86
     
75
     
2,624
     
1,864
     
13,884
     
13,790
 
                                                 
Net income of Financial Services
 
¥
31,991
   
¥
33,921
 
¥
 
¥
 
¥
 
¥
 
                                                 
Net income of Sony without Financial Services
  ¥    
¥
   
¥
148,996
   
¥
230,981
 
¥
 
¥
 
                                                 
Net income attributable to Sony Corporation's stockholders
  ¥    
¥
 
¥
 
¥    
¥
152,122
   
¥
233,251
 

F-7


Condensed Statements of Cash Flows
                               
                                 
             
(Millions of yen)
             
   
Three months ended June 30
 
                                 
   
Financial Services
   
Sony without
Financial Services
    Consolidated  

  2019
  2020
    2019
  2020
    2019
    2020
 
Cash flows from operating activities:
                               
Net income  (loss)
 
¥
32,077
   
¥
33,996
   
¥
151,620
   
¥
232,845
   
¥
166,006
   
¥
247,041
 
Adjustments to reconcile net income (loss) to net cash
                                           
provided by (used in) operating activities:
                                               
Depreciation and amortization, including amortization of
                                           
deferred insurance acquisition costs and contract costs
   
22,151
     
8,853
     
71,261
     
81,248
     
93,412
     
90,101
 
Amortization of film costs
 
   
       
56,546
     
56,858
     
56,546
     
56,858
 
Other operating (income) expense, net
   
36
     
54
     
(3,593
)
   
(11,302
)
   
(3,557
)
   
(11,248
)
(Gain) loss on marketable securities and
                                               
securities investments, net
   
(9,172
)
   
(154,558
)
   
(329
)
   
(96,891
)
   
(9,501
)
   
(251,449
)
Changes in assets and liabilities:
                                               
(Increase) decrease in notes, accounts receivable, trade
                                           
and contract assets
   
(298
)
   
(2,521
)
   
(84,822
)
   
15,769
     
(85,901
)
   
19,100
 
   (Increase) decrease in inventories
 

 
       
(51,976
)
   
(26,318
)
   
(51,976
)
   
(26,318
)
   (Increase) decrease in film costs
 
 
       
(91,680
)
   
(20,747
)
   
(91,680
)
   
(20,747
)
   Increase (decrease) in notes and accounts
                                               
payable, trade
 
 
       
55,807
     
10,513
     
55,807
     
10,513
 
Increase (decrease) in future insurance policy
                                           
benefits and other
   
138,925
     
255,401
   

 

       
138,925
     
255,401
 
   (Increase) decrease in deferred insurance
                                               
acquisition costs
   
(22,185
)
   
(22,269
)
 

 

       
(22,185
)
   
(22,269
)
(Increase) decrease in marketable securities held
                                           
in the life insurance business
   
(59,080
)
   
(46,580
)
 

 

       
(59,080
)
   
(46,580
)
Other
   
(891
)
   
(50,957
)
   
(187,856
)
   
(117,329
)
   
(187,639
)
   
(174,218
)
Net cash provided by (used in) operating activities
   
101,563
     
21,419
     
(85,022
)
   
124,646
     
(823
)
   
126,185
 
                                                 
Cash flows from investing activities:
                                               
Payments for purchases of fixed assets
   
(5,388
)
   
(4,922
)
   
(72,875
)
   
(128,010
)
   
(78,264
)
   
(132,868
)
Payments for investments and advances
   
(302,434
)
   
(416,809
)
   
(22,969
)
   
(47,958
)
   
(325,403
)
   
(464,767
)
Proceeds from sales or return of investments and
                                           
collections of advances
   
72,375
     
99,782
     
303
     
12,680