Edgar Filing: SONY CORP

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 April 2019

Commission File Number: 001-06439

SONY CORPORATION

(Translation of registrant's name into English)

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN

(Address of principal executive offices)

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

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,

Form 20-F X

Form 40-F __

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, Yes No X

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-______

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SONY CORPORATION
	(Registrant)


	By: /s/ Hiroki Totoki
	(Signature)
	Hiroki Totoki
	Senior Executive Vice President and
	Chief Financial Officer

Date: April 26, 2019

Financial Statements and Consolidated Financial Results

for the Fiscal Year Ended March 31, 2019

And

Outlook for the Fiscal Year Ending March 31, 2020

April 26, 2019

Sony Corporation

Financial Statements (Unaudited)	F-1

Consolidated Balance Sheets	F-1
Consolidated Statements of Income (Fiscal year ended March 31)	F-2
Consolidated Statements of Comprehensive Income (Fiscal year ended March 31)	F-2
Consolidated Statements of Income (Three months ended March 31)	F-3
Consolidated Statements of Comprehensive Income (Three months ended March 31)	F-3
Consolidated Statements of Changes in Stockholders' Equity	F-4
Consolidated Statements of Cash Flows	F-5
Notes to Consolidated Financial Statements	F-6
-Business Segment Information	F-6
-Going Concern Assumption	F-13
-Accounting Policies and Other Information	F-13

Consolidated Results for the Fiscal Year Ended March 31, 2019	1

Outlook for the Fiscal Year Ending March 31, 2020	4

Business Segment Information (Consolidated Results for the Fiscal year ended March 31, 2019 and Outlook for the Fiscal year ending March 31, 2020)	5

Basic Views on Selection of Accounting Standards	10

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			March 31			Changes from
ASSETS	2018			2019			March 31, 2018
Current assets:
Cash and cash equivalents	¥	1,586,329		¥	1,470,073		¥	-116,256
Marketable securities		1,176,601			1,324,538			+147,937
Notes and accounts receivable, trade and contract assets		1,061,442			1,091,242			+29,800
Allowance for doubtful accounts		(48,663	)		(25,440	)		+23,223
Inventories		692,937			653,278			-39,659
Other receivables		190,706			223,620			+32,914
Prepaid expenses and other current assets		516,744			509,301			-7,443
Total current assets		5,176,096			5,246,612			+70,516
Film costs		327,645			409,005			+81,360

Investments and advances:
Affiliated companies		157,389			163,365			+5,976
Securities investments and other		10,598,669			11,561,286			+962,617
		10,756,058			11,724,651			+968,593
Property, plant and equipment:
Land		84,358			83,992			-366
Buildings		655,434			664,157			+8,723
Machinery and equipment		1,798,722			1,585,382			-213,340
Construction in progress		38,295			39,208			+913
		2,576,809			2,372,739			-204,070
Less-Accumulated depreciation		1,837,339			1,595,686			-241,653
		739,470			777,053			+37,583
Other assets:
Intangibles, net		527,168			917,966			+390,798
Goodwill		530,492			768,552			+238,060
Deferred insurance acquisition costs		586,670			595,265			+8,595
Deferred income taxes		96,772			202,486			+105,714
Other		325,167			339,996			+14,829
		2,066,269			2,824,265			+757,996
Total assets	¥	19,065,538		¥	20,981,586		¥	+1,916,048


LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	496,093		¥	618,618		¥	+122,525
Current portion of long-term debt		225,522			172,461			-53,061
Notes and accounts payable, trade		468,550			492,124			+23,574
Accounts payable, other and accrued expenses		1,514,433			1,693,048			+178,615
Accrued income and other taxes		145,905			135,226			-10,679
Deposits from customers in the banking business		2,159,246			2,302,314			+143,068
Other		610,792			666,024			+55,232
Total current liabilities		5,620,541			6,079,815			+459,274
Long-term debt		623,451			568,372			-55,079
Accrued pension and severance costs		394,504			384,232			-10,272
Deferred income taxes		449,863			531,421			+81,558
Future insurance policy benefits and other		5,221,772			5,642,671			+420,899
Policyholders’ account in the life insurance business		2,820,702			3,048,202			+227,500
Other		278,338			281,382			+3,044
Total liabilities		15,409,171			16,536,095			+1,126,924

Redeemable noncontrolling interest		9,210			8,801			-409
Equity:
Sony Corporation’s stockholders’ equity:
Common stock		865,678			874,291			+8,613
Additional paid-in capital		1,282,577			1,266,874			-15,703
Retained earnings		1,440,387			2,320,586			+880,199
Accumulated other comprehensive income		(616,746	)		(610,670	)		+6,076
Treasury stock, at cost		(4,530	)		(104,704	)		-100,174
		2,967,366			3,746,377			+779,011
Noncontrolling interests		679,791			690,313			+10,522
Total equity		3,647,157			4,436,690			+789,533
Total liabilities and equity	¥	19,065,538		¥	20,981,586		¥	+1,916,048

F-1

Consolidated Statements of Income
	(Millions of yen, except per share amounts)
	Fiscal year ended March 31
	2018		2019			Change
Sales and operating revenue:
Net sales	¥	7,231,613	¥	7,306,235		¥	+74,622
Financial services revenue		1,221,235		1,274,708			+53,473
Other operating revenue		91,134		84,744			-6,390
		8,543,982		8,665,687			+121,705

Costs and expenses:
Cost of sales		5,188,259		5,150,750			-37,509
Selling, general and administrative		1,583,197		1,576,825			-6,372
Financial services expenses		1,042,163		1,112,446			+70,283
Other operating (income) expense, net		4,072		(71,568	)		-75,640
		7,817,691		7,768,453			-49,238

Equity in net income (loss) of affiliated companies		8,569		(2,999	)		-11,568

Operating income		734,860		894,235			+159,375

Other income:
Interest and dividends		19,784		21,618			+1,834
Gain on sale of securities investments, net		1,517		–			-1,517
Gain on equity securities, net		–		118,677			+118,677
Other		2,427		4,440			+2,013
		23,728		144,735			+121,007

Other expenses:
Interest expenses		13,566		12,467			-1,099
Loss on devaluation of securities investments		4,955		–			-4,955
Foreign exchange loss, net		30,634		11,279			-19,355
Other		10,384		3,576			-6,808
		59,539		27,322			-32,217

Income before income taxes		699,049		1,011,648			+312,599

Income taxes		151,770		45,098			-106,672
Net income		547,279		966,550			+419,271

Less - Net income attributable to noncontrolling interests		56,485		50,279			-6,206

Net income attributable to Sony Corporation’s stockholders	¥	490,794	¥	916,271		¥	+425,477



Per share data:
Net income attributable to Sony Corporation’s stockholders
— Basic	¥	388.32	¥	723.41		¥	+335.09
— Diluted		379.75		707.74			+327.99

Consolidated Statements of Comprehensive Income
	(Millions of yen)
	Fiscal year ended March 31
	2018			2019			Change

Net income	¥	547,279		¥	966,550		¥	+419,271

Other comprehensive income, net of tax –
Unrealized gains on securities		1,070			33,285			+32,215
Unrealized gains (losses) on derivative instruments		(1,184	)		1,223			+2,407
Pension liability adjustment		12,390			(13,960	)		-26,350
Foreign currency translation adjustments		(6,335	)		8,444			+14,779
Total comprehensive income		553,220			995,542			+442,322

Less - Comprehensive income attributable to noncontrolling interests		60,403			57,669			-2,734

Comprehensive income attributable to Sony Corporation’s stockholders	¥	492,817		¥	937,873		¥	+445,056

F-2

Consolidated Statements of Income
	(Millions of yen, except per share amounts)
	Three months ended March 31
	2018			2019		Change
Sales and operating revenue:
Net sales	¥	1,658,340		¥	1,674,178	¥	+15,838
Financial services revenue		270,943			428,345		+157,402
Other operating revenue		21,738			24,975		+3,237
		1,951,021			2,127,498		+176,477

Costs and expenses:
Cost of sales		1,230,559			1,234,143		+3,584
Selling, general and administrative		424,007			399,910		-24,097
Financial services expenses		231,196			384,200		+153,004
Other operating expense, net		44,203			28,183		-16,020
		1,929,965			2,046,436		+116,471

Equity in net income of affiliated companies		1,128			1,668		+540

Operating income		22,184			82,730		+60,546

Other income:
Interest and dividends		3,228			5,877		+2,649
Gain on sale of securities investments, net		38			–		-38
Gain on equity securities, net		–			38,740		+38,740
Other		(102	)		319		+421
		3,164			44,936		+41,772
Other expenses:
Interest		2,784			1,763		-1,021
Loss on devaluation of securities investments		3,152			–		-3,152
Foreign exchange loss, net		5,480			12,453		+6,973
Other		5,461			816		-4,645
		16,877			15,032		-1,845

Income before income taxes		8,471			112,634		+104,163

Income taxes		13,289			11,331		-1,958

Net income (loss)		(4,818	)		101,303		+106,121

Less - Net income attributable to noncontrolling interests		12,008			13,442		+1,434

Net income (loss) attributable to Sony Corporation’s stockholders	¥	(16,826	)	¥	87,861	¥	+104,687



Per share data:
Net income (loss) attributable to Sony Corporation’s stockholders
— Basic	¥	(13.30	)	¥	69.68	¥	+82.98
— Diluted		(13.30	)		68.23		+81.53

Consolidated Statements of Comprehensive Income
	(Millions of yen)
	Three months ended March 31
	2018			2019			Change

Net income (loss)	¥	(4,818	)	¥	101,303		¥	+106,121

Other comprehensive income, net of tax –
Unrealized gains (losses) on securities		(5,960	)		29,365			+35,325
Unrealized losses on derivative instruments		(1,334	)		(18	)		+1,316
Pension liability adjustment		5,381			(21,045	)		-26,426
Foreign currency translation adjustments		(40,077	)		4,139			+44,216

Total comprehensive income (loss)		(46,808	)		113,744			+160,552

Less - Comprehensive income attributable to noncontrolling interests		11,444			23,804			+12,360

Comprehensive income (loss) attributable to Sony Corporation’s stockholders	¥	(58,252	)	¥	89,940		¥	+148,192

F-3

Consolidated Statements of Changes in Stockholders' Equity
																		(Millions of yen)
	Common stock		Additional paid- in capital			Retained earnings			Accumulated other comprehensive income			Treasury stock, at cost			Sony Corporation’s stockholders’ equity				Noncontrolling interests			Total equity
Balance at March 31, 2017	¥	860,645	¥	1,275,337		¥	984,368		¥	(618,769	)	¥	(4,335	)	¥	2,497,246			¥	638,176		¥	3,135,422
Issuance of new shares		488		488												976							976
Exercise of stock acquisition rights		4,533		4,532												9,065							9,065
Conversion of convertible bonds		12		12												24							24
Stock based compensation				3,160												3,160							3,160

Comprehensive income:
Net income							490,794									490,794				56,485			547,279
Other comprehensive income, net of tax
Unrealized gains (losses) on securities										(444	)					(444	)			1,514			1,070
Unrealized losses on derivative instruments										(1,184	)					(1,184	)						(1,184	)
Pension liability adjustment										12,292						12,292				98			12,390
Foreign currency translation adjustments										(8,641	)					(8,641	)			2,306			(6,335	)
Total comprehensive income																492,817				60,403			553,220

Stock issue costs, net of tax				(879	)											(879	)						(879	)
Dividends declared							(34,775	)								(34,775	)			(14,361	)		(49,136	)
Purchase of treasury stock													(199	)		(199	)						(199	)
Reissuance of treasury stock				0									4			4							4

Transactions with noncontrolling interests shareholders and other				(73	)											(73	)			(4,427	)		(4,500	)
Balance at March 31, 2018	¥	865,678	¥	1,282,577		¥	1,440,387		¥	(616,746	)		(4,530	)		2,967,366				679,791			3,647,157

																		(Millions of yen)
	Common stock		Additional paid- in capital			Retained earnings			Accumulated other comprehensive income			Treasury stock, at cost			Sony Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2018	¥	865,678	¥	1,282,577		¥	1,440,387		¥	(616,746	)	¥	(4,530	)	¥	2,967,366		¥	679,791		¥	3,647,157
Cumulative effect of newly adopted ASUs							7,976			(15,526	)					(7,550	)		5,432			(2,118	)
Issuance of new shares		431		431												862						862
Exercise of stock acquisition rights		8,174		8,174												16,348						16,348
Conversion of convertible bonds		8		8												16						16
Stock based compensation				1,159												1,159						1,159

Comprehensive income:
Net income							916,271									916,271			50,279			966,550
Other comprehensive income, net of tax
Unrealized gains on securities										24,370						24,370			8,915			33,285
Unrealized gains on derivative instruments										1,223						1,223						1,223
Pension liability adjustment										(14,013	)					(14,013	)		53			(13,960	)
Foreign currency translation adjustments										10,022						10,022			(1,578	)		8,444
Total comprehensive income																937,873			57,669			995,542

Stock issue costs, net of tax				(147	)											(147	)					(147	)
Dividends declared							(44,048	)								(44,048	)		(28,961	)		(73,009	)
Purchase of treasury stock													(100,177	)		(100,177	)					(100,177	)
Reissuance of treasury stock				1									3			4						4
Transactions with noncontrolling interests shareholders and other				(25,329	)											(25,329	)		(23,618	)		(48,947	)
Balance at March 31, 2019	¥	874,291		1,266,874			2,320,586			(610,670	)		(104,704	)		3,746,377			690,313			4,436,690

In July 2018, Sony Corporation of America acquired from the Estate of Michael Jackson (the “Estate”) the 25.1% interest in Nile Acquisition LLC (“Nile”) held by the Estate. A total of 287.5 million U.S. dollars was paid to the Estate for the acquisition, which payment also includes reimbursement of various expenses and costs related to the acquisition. The difference between cash consideration paid of 287.5 million U.S. dollars and the carrying amount of the noncontrolling interests was recognized as a decrease to additional paid-in capital of 295.9 million U.S. dollars. As a result of the acquisition, Nile became a wholly-owned subsidiary of Sony.

F-4

Consolidated Statements of Cash Flows
	(Millions of yen)
	Fiscal year ended March 31
	2018			2019
Cash flows from operating activities:
Net income	¥	547,279		¥	966,550
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		361,444			374,026
Amortization of film costs		359,274			348,493
Accrual for pension and severance costs, less payments		4,113			(33,631	)
Other operating (income) expense, net		4,072			(71,568	)
(Gain) loss on securities investments, net (other than financial services business)		3,438			(118,630	)
Gain on marketable securities and securities investments held in the financial services business, net		(47,119	)		(66,383	)
Deferred income taxes		24,085			(121,650	)
Equity in net (income) loss of affiliated companies, net of dividends		(2,956	)		7,947
Changes in assets and liabilities:
(Increase) decrease in notes, accounts receivable, trade and contract assets		(80,004	)		1,144
(Increase) decrease in inventories		(51,508	)		30,455
Increase in film costs		(362,496	)		(410,994	)
Increase (decrease) in notes and accounts payable, trade		(87,939	)		18,534
Increase (decrease) in accrued income and other taxes		29,181			(20,039	)
Increase in future insurance policy benefits and other		495,419			544,179
Increase in deferred insurance acquisition costs		(86,779	)		(88,807	)
Increase in marketable securities held in the life insurance business		(89,797	)		(64,034	)
Decrease in other current assets		3,776			16,576
Increase in other current liabilities		151,805			56,723
Other		78,683			(110,153	)
Net cash provided by operating activities		1,253,971			1,258,738

Cash flows from investing activities:
Payments for purchases of fixed assets		(262,989	)		(312,644	)
Proceeds from sales of fixed assets		60,599			17,585
Payments for investments and advances by financial services business		(963,210	)		(1,078,250	)
Payments for investments and advances (other than financial services business)		(13,801	)		(53,525	)
Proceeds from sales or return of investments and collections of advances by financial services business		317,159			309,498
Proceeds from sales or return of investments and collections of advances (other than financial services business)		6,596			2,442
Payment for EMI Music Publishing acquisition, net of cash acquired		–			(244,197	)
Proceeds from sales of businesses		44,624			–
Proceeds related to sales of Spotify Technology S.A. Shares		–			82,467
Other		(12,046	)		(30,821	)
Net cash used in investing activities		(823,068	)		(1,307,445	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		125,092			94,351
Payments of long-term debt		(44,561	)		(382,671	)
Increase in short-term borrowings, net		35,145			123,979
Increase in deposits from customers in the financial services business, net		169,479			246,945
Dividends paid		(28,490	)		(38,067	)
Payments for purchase of treasury stock		(198	)		(100,177	)
Payment for purchase of Nile Acquisition LLC shares from noncontrolling interests		–			(32,041	)
Other		(10,011	)		(35,203	)
Net cash provided by (used in) financing activities		246,456			(122,884	)

Effect of exchange rate changes on cash and cash equivalents, including restricted		(53,044	)		52,465

Net increase (decrease) in cash and cash equivalents, including restricted		624,315			(119,126	)
Cash and cash equivalents, including restricted, at beginning of the fiscal year		968,624			1,592,939

Cash and cash equivalents, including restricted, at end of the fiscal year		1,592,939			1,473,813

Less - restricted cash and cash equivalents, included in other current assets and other assets		6,610			3,740
Cash and cash equivalents at end of the fiscal year	¥	1,586,329		¥	1,470,073

F-5

Notes to Consolidated Financial Statements
Business Segment Information
(Business Segments)
	(Millions of yen)
	Fiscal year ended March 31
Sales and operating revenue	2018		2019		Change
Game & Network Services
Customers	¥	1,848,298	¥	2,224,622	¥	+376,324
Intersegment		95,514		86,250		-9,264
Total		1,943,812		2,310,872		+367,060

Music
Customers		784,792		795,025		+10,233
Intersegment		15,203		12,464		-2,739
Total		799,995		807,489		+7,494

Pictures
Customers		1,010,173		985,270		-24,903
Intersegment		894		1,603		+709
Total		1,011,067		986,873		-24,194

Home Entertainment & Sound
Customers		1,221,734		1,154,533		-67,201
Intersegment		999		878		-121
Total		1,222,733		1,155,411		-67,322

Imaging Products & Solutions
Customers		647,163		661,304		+14,141
Intersegment		8,729		9,146		+417
Total		655,892		670,450		+14,558

Mobile Communications
Customers		713,916		487,330		-226,586
Intersegment		9,826		10,670		+844
Total		723,742		498,000		-225,742

Semiconductors
Customers		726,892		770,622		+43,730
Intersegment		123,118		108,708