SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

For the month of October 2018
Commission File Number: 001-06439

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

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

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

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

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
SONY CORPORATION
 
(Registrant)
   
   
 
By:  /s/  Hiroki Totoki
 
                (Signature)
 
Hiroki Totoki
 
Senior Executive Vice President and
 
Chief Financial Officer
 
Date: October 30, 2018

List of materials

Documents attached hereto:
 
i) Quarterly Financial Statements for the Second Quarter Ended September 30, 2018 And Outlook for the Fiscal Year Ending March 31, 2019
 
 
Quarterly Financial Statements
for the Second Quarter Ended September 30, 2018
And
Outlook for the Fiscal Year Ending March 31, 2019


October 30, 2018
Sony Corporation


Quarterly Financial Statements (Unaudited)
F-1
   
Consolidated Balance Sheets
F-1
Consolidated Statements of Income (Three months ended September 30)
F-2
Consolidated Statements of Comprehensive Income (Three months ended September 30)
F-2
Consolidated Statements of Income (Six months ended September 30)
F-3
Consolidated Statements of Comprehensive Income (Six months ended September 30)
F-3
Consolidated Statements of Cash Flows (Six months ended September 30)
F-4
Notes to Consolidated Financial Statements
F-5
-Business Segment Information
F-5
-Going Concern Assumption
F-12
-Significant Changes in Shareholders’ Equity
F-12
-Accounting Policies and Other Information
F-12
   
Outlook for the Fiscal Year Ending March 31, 2019
1
   
Outlook for the Fiscal Year Ending March 31, 2019
1
   
Cautionary Statement
4

 

All amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. (“U.S. GAAP”).
 
Sony Corporation and its consolidated subsidiaries are together referred to as “Sony”.
 
(Unaudited)
                  
Consolidated Financial Statements
                  
Consolidated Balance Sheets
                  
   
 
    
(Millions of yen)
        
   
March 31
    
September 30
    
Change from
  
ASSETS
  
2018
    
2018
    
March 31, 2018
  
Current assets:
                  
Cash and cash equivalents
  
¥
1,586,329
    
¥
1,540,779
    
¥
-45,550
  
Marketable securities
    
1,176,601
      
1,335,735
      
+159,134
  
Notes and accounts receivable, trade and contract assets
    
1,061,442
      
1,290,317
      
+228,875
  
Allowance for doubtful accounts
    
(48,663
)
    
(24,349
)
    
+24,314
  
Inventories
    
692,937
      
814,639
      
+121,702
  
Other receivables
    
190,706
      
305,880
      
+115,174
  
                         
Prepaid expenses and other current assets
    
516,744
      
480,714
      
-36,030
  
 Total current assets
    
5,176,096
      
5,743,715
      
+567,619
  
                         
Film costs
    
327,645
      
416,527
      
+88,882
  
                         
Investments and advances:
                        
Affiliated companies
    
157,389
      
171,798
      
+14,409
  
Securities investments and other
    
10,598,669
      
11,133,787
      
+535,118
  
     
10,756,058
      
11,305,585
      
+549,527
  
                         
Property, plant and equipment:
                        
Land
    
84,358
      
84,549
      
+191
  
Buildings
    
655,434
      
666,852
      
+11,418
  
Machinery and equipment
    
1,798,722
      
1,852,401
      
+53,679
  
Construction in progress
    
38,295
      
29,245
      
-9,050
  
     
2,576,809
      
2,633,047
      
+56,238
  
Less-Accumulated depreciation
    
1,837,339
      
1,891,203
      
+53,864
  
     
739,470
      
741,844
      
+2,374
  
                         
Other assets:
                        
Intangibles, net
    
527,168
      
522,616
      
-4,552
  
Goodwill
    
530,492
      
551,058
      
+20,566
  
Deferred insurance acquisition costs
    
586,670
      
605,989
      
+19,319
  
Deferred income taxes
    
96,772
      
98,652
      
+1,880
  
Other
    
325,167
      
339,464
      
+14,297
  
     
2,066,269
      
2,117,779
      
+51,510
  
  Total assets
  
¥
19,065,538
    
¥
20,325,450
    
¥
+1,259,912
  
                         
                         
LIABILITIES AND EQUITY
                        
Current liabilities:
                        
Short-term borrowings
  
¥
496,093
    
¥
628,528
    
¥
+132,435
  
Current portion of long-term debt
    
225,522
      
166,423
      
-59,099
  
Notes and accounts payable, trade
    
468,550
      
781,338
      
+312,788
  
Accounts payable, other and accrued expenses
    
1,514,433
      
1,549,389
      
+34,956
  
Accrued income and other taxes
    
145,905
      
197,721
      
+51,816
  
Deposits from customers in the banking business
    
2,159,246
      
2,252,480
      
+93,234
  
Other
    
610,792
      
655,871
      
+45,079
  
 Total current liabilities
    
5,620,541
      
6,231,750
      
+611,209
  
                         
Long-term debt
    
623,451
      
510,165
      
-113,286
  
Accrued pension and severance costs
    
394,504
      
388,955
      
-5,549
  
Deferred income taxes
    
449,863
      
430,704
      
-19,159
  
Future insurance policy benefits and other
    
5,221,772
      
5,452,484
      
+230,712
  
Policyholders’ account in the life insurance business
    
2,820,702
      
2,998,376
      
+177,674
  
Other
    
278,338
      
291,417
      
+13,079
  
  Total liabilities
    
15,409,171
      
16,303,851
      
+894,680
  
                         
Redeemable noncontrolling interest
    
9,210
      
8,442
      
-768
  
                         
Equity:
                        
Sony Corporation’s stockholders’ equity:
                        
Common stock
    
865,678
      
871,925
      
+6,247
  
Additional paid-in capital
    
1,282,577
      
1,264,863
      
-17,714
  
Retained earnings
    
1,440,387
      
1,828,777
      
+388,390
  
Accumulated other comprehensive income
    
(616,746
)
    
(595,900
)
    
+20,846
  
Treasury stock, at cost
    
(4,530
)
    
(4,627
)
    
-97
  
     
2,967,366
      
3,365,038
      
+397,672
  
                         
Noncontrolling interests
    
679,791
      
648,119
      
-31,672
  
  Total equity
    
3,647,157
      
4,013,157
      
+366,000
  
  Total liabilities and equity
  
¥
19,065,538
    
¥
20,325,450
    
¥
+1,259,912
  
 
F-1
Consolidated Statements of Income
                    
 
 
  
(Millions of yen, except per share amounts)
  
 
 
  
Three months ended September 30
  
 
 
  
2017
    
2018
    
Change
  
Sales and operating revenue:
                    
Net sales
  
¥
1,764,916
    
¥
1,809,739
    
¥
+44,823
  
Financial services revenue
    
277,434
      
351,493
      
+74,059
  
Other operating revenue
    
20,181
      
21,528
      
+1,347
  
     
2,062,531
      
2,182,760
      
+120,229
  
Costs and expenses:
                        
Cost of sales
    
1,234,646
      
1,222,744
      
-11,902
  
Selling, general and administrative
    
386,279
      
397,129
      
+10,850
  
Financial services expenses
    
240,305
      
312,334
      
+72,029
  
Other operating (income) expense, net
    
(901
)
    
13,383
      
+14,284
  
     
1,860,329
      
1,945,590
      
+85,261
  
                         
Equity in net income of affiliated companies
    
2,026
      
2,341
      
+315
  
                         
Operating income
    
204,228
      
239,511
      
+35,283
  
                         
Other income:
                        
Interest and dividends
    
4,252
      
4,571
      
+319
  
Gain on equity securities, net
 
  
–
      
9,935
      
+9,935
  
Other
    
511
      
1,461
      
+950
  
      4,763        15,967        +11,204   
Other expenses:
                        
Interest
    
2,730
      
3,876
      
+1,146
  
Foreign exchange loss, net
    
6,298
      
4,922
      
-1,376
  
Other
    
1,398
      
282
      
-1,116
  
     
10,426
      
9,080
      
-1,346
  
                         
Income before income taxes
    
198,565
      
246,398
      
+47,833
  
                         
Income taxes
    
55,751
      
59,268
      
+3,517
  
Net income
    
142,814
      
187,130
      
+44,316
  
                         
Less - Net income attributable to noncontrolling interests
    
11,962
      
14,129
      
+2,167
  
                         
Net income attributable to Sony Corporation’s stockholders
  
¥
130,852
    
¥
173,001
    
¥
+42,149
  
                         
Per share data:
                        
Net income attributable to Sony Corporation’s stockholders
                        
   — Basic
  
¥
103.57
    
¥
136.38
    
¥
+32.81
  
   — Diluted
    
101.35
      
133.43
      
+32.08
  
 
Consolidated Statements of Comprehensive Income
                        
 
 
  
(Millions of yen)
  
 
 
  
Three months ended September 30
  
     
2017
      
2018
    
Change
  
                         
Net income
  
¥
142,814
    
¥
187,130
    
¥
+44,316
  
                         
Other comprehensive income, net of tax –
                        
Unrealized losses on securities
    
(1,469
)
    
(24,337
)
    
-22,868
  
Unrealized gains (losses) on derivative instruments
    
594
      
(563
)
    
-1,157
  
Pension liability adjustment
    
2,339
      
2,467
      
+128
  
Foreign currency translation adjustments
    
16,502
      
32,168
      
+15,666
  
Total comprehensive income
    
160,780
      
196,865
      
+36,085
  
 Less - Comprehensive income attributableto noncontrolling interests
    
13,178
      
5,314
      
-7,864
  
Comprehensive income attributableto Sony Corporation’s stockholders
  
¥
147,602
    
¥
191,551
    
¥
+43,949
  
 
F-2
Consolidated Statements of Income
                  
   
 
(Millions of yen, except per share amounts)
  
   
 
Six months ended September 30
  
   
 
2017
    
2018
    
Change
  
Sales and operating revenue:
                    
Net sales
  
¥
3,293,559
    
¥
3,411,934
    
¥
+118,375
  
Financial services revenue
    
578,794
      
684,733
      
+105,939
  
Other operating revenue
    
48,291
      
39,717
      
-8,574
  
     
3,920,644
      
4,136,384
      
+215,740
  
Costs and expenses:
                        
Cost of sales
    
2,349,738
      
2,335,231
      
-14,507
  
Selling, general and administrative
    
743,658
      
746,890
      
+3,232
  
Financial services expenses
    
495,563
      
604,490
      
+108,927
  
Other operating (income) expense, net
    
(27,012
)
    
13,058
      
+40,070
  
     
3,561,947
      
3,699,669
      
+137,722
  
                         
Equity in net income (loss) of affiliated companies
    
3,142
      
(2,198
)
    
-5,340
  
                         
Operating income
    
361,839
      
434,517
      
+72,678
  
                         
Other income:
                        
Interest and dividends
    
13,037
      
9,305
      
-3,732
  
Gain on equity securities, net
  
 
–
      
124,714
      
+124,714
  
Other
    
1,644
      
2,194
      
+550
  
     
14,681
      
136,213
      
+121,532
  
                         
Other expenses:
                        
Interest
    
7,246
      
7,194
      
-52
  
Foreign exchange loss, net
    
19,266
      
3,911
      
-15,355
  
Other
    
2,549
      
1,141
      
-1,408
  
     
29,061
      
12,246
      
-16,815
  
                         
Income before income taxes
    
347,459
      
558,484
      
+211,025
  
                         
Income taxes
    
110,247
      
134,490
      
+24,243
  
                         
Net income
    
237,212
      
423,994
      
+186,782
  
                         
Less - Net income attributable to noncontrolling interests
    
25,489
      
24,546
      
-943
  
 
                        
Net income attributable to Sony Corporation’s stockholders
  
¥
211,723
    
¥
399,448
    
¥
+187,725
  
                         
Per share data:
                        
Net income attributable to Sony Corporation’s stockholders
                        
   — Basic
  
¥
167.61
    
¥
315.02
    
¥
+147.41
  
   — Diluted
    
164.06
      
308.17
      
+144.11
  
 
Consolidated Statements of Comprehensive Income
                        
   
 
(Millions of yen)
  
   
 
Six months ended September 30
  
     
2017
      
2018
    
Change
  
                         
Net income
  
¥
237,212
    
¥
423,994
    
¥
+186,782
  
                         
Other comprehensive income, net of tax –
                        
Unrealized losses on securities
    
(4,658
)
    
(21,066
)
    
-16,408
  
Unrealized gains on derivative instruments
    
229
      
915
      
+686
  
Pension liability adjustment
    
4,644
      
4,743
      
+99
  
Foreign currency translation adjustments
    
30,087
      
40,465
      
+10,378
  
Total comprehensive income
    
267,514
      
449,051
      
+181,537
  
Less - Comprehensive income attributable to noncontrolling interests
    
27,356
      
13,231
      
-14,125
  
Comprehensive income attributable to Sony Corporation’s stockholders
  
¥
240,158
    
¥
435,820
    
¥
+195,662
  


F-3
Consolidated Statements of Cash Flows
            
   
(Millions of yen)
  
   
Six months ended September 30
  
   
2017
    
2018
  
Cash flows from operating activities:
            
Net income
  
¥
237,212
    
¥
423,994
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Depreciation and amortization, including amortization of deferred insurance acquisition costs and contract costs
    
169,962
      
171,826
  
Amortization of film costs
    
160,142
      
133,892
  
Accrual for pension and severance costs, less payments
    
2,583
      
(5,310
)
Other operating (income) expense, net
    
(27,012
)
    
13,058
  
Gain on securities investments, net (other than financial services business)
    
(167
)
    
(124,717
)
Gain on marketable securities and securities investments held in the financial services business, net
    
(47,715
)
    
(109,791
)
Deferred income taxes
    
8,160
      
(3,350
)
Equity in net (income) loss of affiliated companies, net of dividends
    
(1,312
)
    
4,559
  
Changes in assets and liabilities:
                
   Increase in notes, accounts receivable, trade and contract assets
    
(197,747
)
    
(185,855
)
   Increase in inventories
    
(272,386
)
    
(118,255
)
   Increase in film costs
    
(188,281
)
    
(190,494
)
   Increase in notes and accounts payable, trade
    
309,160
      
302,979
  
   Increase in accrued income and other taxes
    
49,662
      
62,075
  
   Increase in future insurance policy benefits and other
    
258,762
      
368,871
  
   Increase in deferred insurance acquisition costs
    
(43,394
)
    
(47,090
)
   Increase in marketable securities held in the life insurance business
    
(44,002
)
    
(43,949
)
   Increase in other current assets
    
(125,652
)
    
(72,246
)
   Increase (decrease) in other current liabilities
    
23,571
      
(43,719
)
Other
    
(6,190
)
    
(125,649
)
        Net cash provided by operating activities
    
265,356
      
410,829
  
                 
Cash flows from investing activities:
                
Payments for purchases of fixed assets
    
(130,254
)
    
(154,819
)
Proceeds from sales of fixed assets
    
6,760
      
11,355
  
Payments for investments and advances by financial services business
    
(461,046
)
    
(563,301
)
Payments for investments and advances (other than financial services business)
    
(10,969
)
    
(25,373
)
Proceeds from sales or return of investments and collections of advances by financial services business
    
152,561
      
140,969
  
Proceeds from sales or return of investments and collections of advances (other than financial services business)
    
4,219
      
1,996
  
Proceeds from sales of businesses
    
18,684
      
—
  
Proceeds related to sales of Spotify Technology S.A. Shares
    
—
      
82,467
  
Other
    
8,199
      
(21,295
)
        Net cash used in investing activities
    
(411,846
)
    
(528,001
)
                 
Cash flows from financing activities:
                
Proceeds from issuance of long-term debt
    
72,430
      
50,958
  
Payments of long-term debt
    
(16,299
)
    
(229,504
)
Increase in short-term borrowings, net
    
55,904
      
133,248
  
Increase in deposits from customers in the financial services business, net
    
88,344
      
132,628
  
Dividends paid
    
(12,649
)
    
(18,992
)
Payment for purchase of Nile Acquisition LLC shares from noncontrolling interests
    
–
      
(32,041
)
Other
    
(8,207
)
    
(36,567
)
        Net cash provided by (used in) financing activities
    
179,523
      
(270
)
                 
Effect of exchange rate changes on cash and cash equivalents, including restricted
    
6,650
      
70,344
  
                 
Net increase (decrease) in cash and cash equivalents, including restricted
    
39,683
      
(47,098
)
Cash and cash equivalents, including restricted, at beginning of the fiscal year
    
968,624
      
1,592,938
  
                 
Cash and cash equivalents, including restricted, at end of the period
    
1,008,307
      
1,545,840
  
                 
Less - restricted cash and cash equivalents, included in other current assets and other assets
    
7,475
      
5,061
  
Cash and cash equivalents at end of the period
  
¥
1,000,832
    
¥
1,540,779
  
 
F-4
Notes to Consolidated Financial Statements
                  
Business Segment Information
                  
(Business Segments)
                  
   
(Millions of yen)
  
   
Three months ended September 30
  
Sales and operating revenue
  
2017
    
2018
    
Change
  
Game & Network Services
                  
Customers
  
¥
414,255
    
¥
535,754
    
¥
+121,499
  
Intersegment
    
18,949
      
14,311
      
-4,638
  
Total
    
433,204
      
550,065
      
+116,861
  
Music
                        
Customers
    
202,837
      
200,294
      
-2,543
  
Intersegment
    
3,729
      
3,562
      
-167
  
Total
    
206,566
      
203,856
      
-2,710
  
Pictures
                        
Customers
    
243,738
      
242,021
      
-1,717
  
Intersegment
    
265
      
(1,150
)
    
-1,415
  
Total
    
244,003
      
240,871
      
-3,132
  
Home Entertainment & Sound
                        
Customers
    
300,770
      
274,496
      
-26,274
  
Intersegment
    
163
      
442
      
+279
  
Total
    
300,933
      
274,938
      
-25,995
  
Imaging Products & Solutions
                        
Customers
    
155,170
      
161,623
      
+6,453
  
Intersegment
    
1,550
      
2,268
      
+718
  
Total
    
156,720
      
163,891
      
+7,171
  
Mobile Communications
                        
Customers
    
169,818
      
114,886
      
-54,932
  
Intersegment
    
2,223
      
2,935
      
+712
  
Total
    
172,041
      
117,821
      
-54,220
  
Semiconductors
                        
Customers
    
193,407
      
222,924
      
+29,517
  
Intersegment
    
34,956
      
31,522
      
-3,434
  
Total
    
228,363
      
254,446
      
+26,083
  
Financial Services
                        
Customers
    
277,434
      
351,493
      
+74,059
  
Intersegment
    
1,790
      
1,960
      
+170
  
Total
    
279,224
      
353,453
      
+74,229
  
All Other
                        
Customers
    
95,592
      
77,226
      
-18,366
  
Intersegment
    
17,228
      
11,892
      
-5,336
  
Total
    
112,820
      
89,118
      
-23,702
  
Corporate and elimination
    
(71,343
)
    
(65,699
)
    
+5,644
  
Consolidated total
  
¥
2,062,531
    
¥
2,182,760
    
¥
+120,229
  
 
Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other.
Semiconductors intersegment amounts primarily consist of transactions with the G&NS segment, the Imaging Products & Solutions (“IP&S”) segment and the Mobile Communications (“MC”) 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 September 30
  
Operating income (loss)
  
2017
    
2018
    
Change
  
Game & Network Services
  
¥
54,750
    
¥
90,622
    
¥
+35,872
  
Music
    
32,514
      
31,501
      
-1,013
  
Pictures
    
7,696
      
23,535
      
+15,839
  
Home Entertainment & Sound
    
24,387
      
24,457
      
+70
  
Imaging Products & Solutions
    
18,870
      
21,813
      
+2,943
  
Mobile Communications
    
(2,453
)
    
(29,814
)
    
-27,361
  
Semiconductors
    
49,370
      
47,928
      
-1,442
  
Financial Services
    
36,599
      
39,160
      
+2,561
  
All Other
    
(28
)
    
5,042
      
+5,070
  
Total
    
221,705
      
254,244
      
+32,539
  
Corporate and elimination
    
(17,477
)
    
(14,733
)
    
+2,744
  
Consolidated total
  
¥
204,228
    
¥
239,511
    
¥
+35,283
  
 
Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.
Corporate and elimination includes headquarters restructuring costs and certain other corporate expenses, including the amortization of certain intellectual property assets such as the cross-licensing of intangible assets acquired from Ericsson at the time of the Sony Mobile Communications acquisition, which are not allocated to segments.
 
Beginning from the first quarter of the fiscal year ending March 31, 2019, a change has been made to the calculation method used for allocating indirect expenses incurred by sales companies to the segments every quarter. As a result of this change, a year-on-year increase in expenses, composed primarily of 0.6 billion yen in the Home Entertainment & Sound (“HE&S”) segment, is included for the three months ended September 30, 2018. However, because a decrease in expenses totaling the same amount is included in Corporate and elimination, this change has no impact on consolidated operating income for the three months ended September 30, 2018. Additionally, because increases and decreases in expenses per quarter for each segment resulting from this change in the calculation method will be offset by the increases and decreases in expenses in other quarters for that segment throughout the current year, this change will also have no impact on operating income (loss) for each segment, or for Corporate and elimination, for the fiscal year ending March 31, 2019.
F-5
(Business Segments)
                  
   
(Millions of yen)
  
   
Six months ended September 30
  
Sales and operating revenue
  
2017
    
2018
    
Change
  
Game & Network Services
                  
Customers
  
¥
737,306
    
¥
985,734
    
¥
+248,428
  
Intersegment
    
43,960
      
36,432
      
-7,528
  
Total
    
781,266
      
1,022,166
      
+240,900
  
Music
                        
Customers
    
367,913
      
378,002
      
+10,089
  
Intersegment
    
7,225
      
7,325
      
+100
  
Total
    
375,138
      
385,327
      
+10,189
  
Pictures
                        
Customers
    
449,408
      
415,248
      
-34,160
  
Intersegment
    
406
      
704
      
+298
  
Total
    
449,814
      
415,952
      
-33,862
  
Home Entertainment & Sound
                        
Customers
    
557,235
      
546,453
      
-10,782
  
Intersegment
    
565
      
572
      
+7
  
Total
    
557,800
      
547,025
      
-10,775
  
Imaging Products & Solutions
                        
Customers
    
309,287
      
324,106
      
+14,819
  
Intersegment
    
3,068
      
3,987
      
+919
  
Total
    
312,355
      
328,093
      
+15,738
  
Mobile Communications
                        
Customers
    
348,884
      
245,240
      
-103,644
  
Intersegment
    
4,344
      
5,088
      
+744
  
Total
    
353,228
      
250,328
      
-102,900
  
Semiconductors
                        
Customers
    
366,086
      
399,597
      
+33,511
  
Intersegment
    
66,538
      
57,088
      
-9,450
  
Total
    
432,624
      
456,685
      
+24,061
  
Financial Services
                        
Customers
    
578,794
      
684,733
      
+105,939
  
Intersegment
    
3,590
      
3,925
      
+335
  
Total
    
582,384
      
688,658
      
+106,274
  
All Other
                        
Customers
    
189,696
      
151,673
      
-38,023
  
Intersegment
    
32,364
      
20,369
      
-11,995
  
Total
    
222,060
      
172,042
      
-50,018
  
Corporate and elimination
    
(146,025
)
    
(129,892
)
    
+16,133
  
Consolidated total
  
¥
3,920,644
    
¥
4,136,384
    
¥
+215,740
  
 
G&NS intersegment amounts primarily consist of transactions with All Other.
Semiconductors intersegment amounts primarily consist of transactions with the G&NS segment, the IP&S segment and the MC 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)
  
   
Six months ended September 30
  
Operating income (loss)
  
2017
    
2018
    
Change
  
Game & Network Services
  
¥
72,483
    
¥
174,072
    
¥
+101,589
  
Music
    
57,536
      
63,605
      
+6,069
  
Pictures
    
(1,801
)
    
15,934
      
+17,735
  
Home Entertainment & Sound
    
46,970
      
41,848
      
-5,122
  
Imaging Products & Solutions
    
42,074
      
47,890
      
+5,816
  
Mobile Communications
    
1,163
      
(40,572
)
    
-41,735
  
Semiconductors
    
104,812
      
77,065
      
-27,747
  
Financial Services
    
82,822
      
79,741
      
-3,081
  
All Other
    
(8,259
)
    
5,336
      
+13,595
  
Total
    
397,800
      
464,919
      
+67,119
  
Corporate and elimination
    
(35,961
)
    
(30,402
)
    
+5,559
  
Consolidated total
  
¥
361,839
    
¥
434,517
    
¥
+72,678
  
 
Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.
Corporate and elimination includes headquarters restructuring costs and certain other corporate expenses, including the amortization of certain intellectual property assets such as the cross-licensing of intangible assets acquired from Ericsson at the time of the Sony Mobile Communications acquisition, which are not allocated to segments.
 
Beginning from the first quarter of the fiscal year ending March 31, 2019, a change has been made to the calculation method used for allocating indirect expenses incurred by sales companies to the segments every quarter. As a result of this change, a year-on-year increase in expenses, composed primarily of 3.0 billion yen in the HE&S segment, is included for the six months ended September 30, 2018. However, because a decrease in expenses totaling the same amount is included in Corporate and elimination, this change has no impact on consolidated operating income for the six months ended September 30, 2018. Additionally, because increases and decreases in expenses per quarter for each segment resulting from this change in the calculation method will be offset by the increases and decreases in expenses in other quarters for that segment throughout the current year, this change will also have no impact on operating income (loss) for each segment, or for Corporate and elimination, for the fiscal year ending March 31, 2019.
F-6
(Sales to Customers by Product Category)
 
The following tables include a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-5 and F-6. Sony management views each segment as a single operating segment. However, Sony believes that the breakdown of sales and operating revenue to external customers for the segments in these tables is useful to investors in understanding sales by product category.
 
   
(Millions of yen)
  
   
Three months ended September 30
  
Sales and operating revenue (to external customers)
  
2017
    
2018
    
Change
  
                   
Game & Network Services
                  
Network
  
¥
222,986
    
¥
334,264
    
¥
+111,278
  
Hardware and Others
    
191,269
      
201,490
      
+10,221
  
Total
    
414,255
      
535,754
      
+121,499
  
                         
Music
                        
Recorded Music
    
109,177
      
105,463
      
-3,714
  
Music Publishing
    
19,501
      
19,436
      
-65
  
Visual Media and Platform
    
74,159
      
75,395
      
+1,236
  
Total
    
202,837
      
200,294
      
-2,543
  
                         
Pictures
                        
Motion Pictures
    
124,800
      
109,334
      
-15,466
  
Television Productions
    
57,389
      
68,482
      
+11,093
  
Media Networks
    
61,549
      
64,205
      
+2,656
  
Total
    
243,738
      
242,021
      
-1,717
  
                         
Home Entertainment & Sound
                        
Televisions
    
219,553
      
191,705
      
-27,848
  
Audio and Video
    
80,639
      
81,861
      
+1,222
  
Other
    
578
      
930
      
+352
  
Total
    
300,770
      
274,496
      
-26,274
  
                         
Imaging Products & Solutions
                        
Still and Video Cameras
    
99,343
      
103,034
      
+3,691
  
Other
    
55,827
      
58,589
      
+2,762
  
Total
    
155,170
      
161,623
      
+6,453
  
                         
Mobile Communications
    
169,818
      
114,886
      
-54,932
  
                         
Semiconductors
    
193,407
      
222,924
      
+29,517
  
                         
Financial Services
    
277,434
      
351,493
      
+74,059
  
                         
All Other
    
95,592
      
77,226
      
-18,366
  
                         
Corporate
    
9,510
      
2,043
      
-7,467
  
Consolidated total
  
¥
2,062,531
    
¥
2,182,760
    
¥
+120,229
  
 
F-7
(Sales to Customers by Product Category)
                  
   
(Millions of yen)
  
   
Six months ended September 30
  
Sales and operating revenue (to external customers)
  
2017
    
2018
    
Change
  
                   
Game & Network Services
                  
Network
  
¥
418,288
    
¥
634,650
    
¥
+216,362
  
Hardware and Others
    
319,018
      
351,084
      
+32,066
  
Total
    
737,306
      
985,734
      
+248,428
  
                         
Music
                        
Recorded Music
    
208,999
      
205,202
      
-3,797
  
Music Publishing
    
36,359
      
40,900
      
+4,541
  
Visual Media and Platform
    
122,555
      
131,900
      
+9,345
  
Total
    
367,913
      
378,002
      
+10,089
  
                         
Pictures
                        
Motion Pictures
    
195,074
      
177,902
      
-17,172
  
Television Productions
    
119,287
      
113,897
      
-5,390
  
Media Networks
    
135,047
      
123,449
      
-11,598
  
Total
    
449,408
      
415,248
      
-34,160
  
                         
Home Entertainment & Sound
                        
Televisions
    
398,927
      
378,255
      
-20,672
  
Audio and Video
    
157,361
      
166,790
      
+9,429
  
Other
    
947
      
1,408
      
+461
  
Total
    
557,235
      
546,453
      
-10,782
  
                         
Imaging Products & Solutions
                        
Still and Video Cameras
    
205,206
      
216,290
      
+11,084
  
Other
    
104,081
      
107,816
      
+3,735
  
Total
    
309,287
      
324,106
      
+14,819
  
                         
Mobile Communications
    
348,884
      
245,240
      
-103,644
  
                         
Semiconductors
    
366,086
      
399,597
      
+33,511
  
                         
Financial Services
    
578,794
      
684,733
      
+105,939
  
                         
All Other
    
189,696
      
151,673
      
-38,023
  
                         
Corporate
    
16,035
      
5,598
      
-10,437
  
Consolidated total
  
¥
3,920,644
    
¥
4,136,384
    
¥
+215,740
  
 
In the G&NS segment, Network includes network services relating to game, video and music content provided by Sony Interactive Entertainment; Hardware and Others includes home and portable game consoles, packaged software and peripheral devices. In the Music segment, Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles, including game applications based on the animation titles, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of motion pictures and direct-to-video content; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks worldwide. In the HE&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. In the IP&S segment, Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Other includes display products such as projectors and medical equipment. 
 
F-8
(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
    
September 30
    
March 31
    
September 30
    
March 31
    
September 30
  
   
2018
    
2018
    
2018
    
2018
    
2018
    
2018
  
  ASSETS
                                    
Current assets:
                                    
Cash and cash equivalents
  
¥
393,133
    
¥
465,645
    
¥
1,193,196
    
¥
1,075,134
    
¥
1,586,329
    
¥
1,540,779
  
Marketable securities
    
1,176,601
      
1,335,735
    
–
    
–
      
1,176,601
      
1,335,735
  
Notes and accounts receivable, trade and contract assets
    
15,612
      
15,224
      
1,003,558
      
1,256,244
      
1,012,779
      
1,265,968
  
Inventories
  
－
    
－
      
692,937
      
814,639
      
692,937
      
814,639
  
Other receivables
    
60,819
      
57,795
      
130,393
      
248,445
      
190,706
      
305,880
  
Prepaid expenses and other current assets
    
137,539
      
126,147
      
379,893
      
355,251
      
516,744
      
480,714
  
 Total current assets
    
1,783,704
      
2,000,546
      
3,399,977
      
3,749,713
      
5,176,096
      
5,743,715
  
                                                 
Film costs
  
–
    
–
      
327,645
      
416,527
      
327,645
      
416,527
  
                                                 
Investments and advances
    
10,560,933
      
10,980,688
      
272,545
      
381,124
      
10,756,058
      
11,305,585
  
                                                 
Investments in Financial Services, at cost
  
–
    
–
      
133,514
      
153,968
    
–
    
–
  
                                                 
Property, plant and equipment
    
22,424
      
22,550
      
715,760
      
718,008
      
739,470
      
741,844
  
                                                 
Other assets:
                                                
Intangibles, net
    
34,622
      
36,882
      
492,546
      
485,734
      
527,168
      
522,616
  
Goodwill
    
7,225
      
7,225
      
523,267
      
543,833
      
530,492
      
551,058
  
Deferred insurance acquisition costs
    
586,670
      
605,989
    
－
    
－
      
586,670
      
605,989
  
Deferred income taxes
    
1,684
      
1,972
      
95,088
      
96,680
      
96,772
      
98,652
  
Other
    
33,267
      
32,693
      
295,650
      
310,518
      
325,167
      
339,464
  
     
663,468
      
684,761
      
1,406,551
      
1,436,765
      
2,066,269
      
2,117,779
  
Total assets
  
¥
13,030,529
    
¥
13,688,545
    
¥
6,255,992
    
¥
6,856,105
    
¥
19,065,538
    
¥
20,325,450
  
                                                 
LIABILITIES AND EQUITY
                                                
Current liabilities:
                                                
Short-term borrowings
  
¥
433,119
    
¥
570,421
    
¥
288,496
    
¥
224,530
    
¥
721,615
    
¥
794,951
  
Notes and accounts payable, trade
  
–
    
–
      
468,550
      
781,338
      
468,550
      
781,338
  
Accounts payable, other and accrued expenses
    
37,479
      
31,698
      
1,477,875
      
1,518,499
      
1,514,433
      
1,549,389
  
Accrued income and other taxes
    
19,401
      
25,486
      
126,504
      
172,235
      
145,905
      
197,721
  
Deposits from customers in the banking business
    
2,159,246
      
2,252,480
    
–
    
–
      
2,159,246
      
2,252,480
  
Other
    
181,467
      
191,608
      
435,996
      
470,003
      
610,792
      
655,871
  
 Total current liabilities
    
2,830,712
      
3,071,693
      
2,797,421
      
3,166,605
      
5,620,541
      
6,231,750
  
                                                 
Long-term debt
    
205,373
      
215,089
      
421,817
      
298,818
      
623,451
      
510,165
  
Accrued pension and severance costs
    
33,062
      
33,452
      
361,442
      
355,503
      
394,504
      
388,955
  
Deferred income taxes
    
342,405
      
318,483
      
107,458
      
112,221
      
449,863
      
430,704
  
Future insurance policy benefits and other
    
5,221,772
      
5,452,484
    
–
    
–
      
5,221,772
      
5,452,484
  
Policyholders’ account in the life insurance business
    
2,820,702
      
2,998,376
    
–
    
–
      
2,820,702
      
2,998,376
  
Other
    
17,778
      
14,885
      
284,270
      
299,500
      
278,338
      
291,417
  
  Total liabilities
    
11,471,804
      
12,104,462
      
3,972,408
      
4,232,647
      
15,409,171
      
16,303,851
  
                                                 
Redeemable noncontrolling interest
  
–
    
–
      
9,210
      
8,442
      
9,210
      
8,442
  
                                                 
Equity:
                                                
Stockholders’ equity of Financial Services
    
1,557,062
      
1,582,327
    
–
    
–
    
–
    
–
  
Stockholders’ equity of Sony without Financial Services
  
–
    
–
      
2,173,128
      
2,522,186
    
–
    
–
  
Sony Corporation’s stockholders’ equity
  
–
    
–
    
–
    
–
      
2,967,366
      
3,365,038
  
Noncontrolling interests
    
1,663
      
1,756
      
101,246
      
92,830
      
679,791
      
648,119
  
  Total equity
    
1,558,725
      
1,584,083
      
2,274,374
      
2,615,016
      
3,647,157
      
4,013,157
  
  Total liabilities and equity
  
¥
13,030,529
    
¥
13,688,545
    
¥
6,255,992
    
¥
6,856,105
    
¥
19,065,538
    
¥
20,325,450