Form 6-K SONY CORP For: Jan 29

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January 29, 2016 6:10 AM EST

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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 January 2016

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/ Kenichiro Yoshida
	(Signature)
	Kenichiro Yoshida
	Executive Deputy President and
	Chief Financial Officer

Date: January 29, 2016

List of materials

Documents attached hereto:

i) Press release announcing Consolidated Financial Results for the Third Quarter Ended December 31, 2015

News & Information

1-7-1 Konan, Minato-ku

Tokyo 108-0075 Japan

No. 16-011E

3:00 P.M. JST, January 29, 2016

Consolidated Financial Results

for the Third Quarter Ended December 31, 2015

Tokyo, January 29, 2016 -- Sony Corporation today announced its consolidated financial results for the third quarter ended December 31, 2015 (October 1, 2015 to December 31, 2015).

	(Billions of yen, millions of U.S. dollars, except per share amounts)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015*
Sales and operating revenue	¥	2,566.7	¥	2,580.8		+0.5	%	$	21,507
Operating income		182.1		202.1		+11.0			1,685
Income before income taxes		167.8		193.3		+15.2			1,611
Net income attributable to Sony Corporation’s stockholders		90.0		120.1		+33.5			1,001
Net income attributable to Sony Corporation’s stockholders per share of common stock:
- Basic	¥	78.12	¥	95.25		+21.9		$	0.79
- Diluted		76.96		93.33		+21.3			0.78

* U.S. dollar amounts have been translated from yen, for convenience only, at the rate of 120 yen = 1 U.S. dollar, the approximate Tokyo foreign exchange market rate as of December 31, 2015.

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”.

The average foreign exchange rates during the quarters ended December 31, 2014 and 2015 are presented below.

	Third Quarter ended December 31
	2014		2015		Change
The average rate of yen
1 U.S. dollar	¥	114.5	¥	121.4		5.7	%	(yen depreciation)
1 Euro		143.0		133.0		7.5		(yen appreciation)

Consolidated Results for the Third Quarter Ended December 31, 2015

Sales and operating revenue (“Sales”) increased 0.5% compared to the same quarter of the previous fiscal year (“year-on-year”) to 2,580.8 billion yen (21,507 million U.S. dollars). Sales were essentially flat year-on-year mainly due to increases in Game & Network Services (“G&NS”) segment sales, reflecting a significant increase in PlayStation®4 (“PS4”) software sales, and in Pictures segment sales, reflecting a significant increase in Motion Pictures sales, substantially offset by decreases in Mobile Communications (“MC”) segment sales, reflecting a significant decrease in smartphone unit sales, and in Devices segment sales, primarily reflecting a significant decrease in image sensor sales. On a constant currency basis, sales were essentially flat year-on-year. For further details about the impact of foreign exchange rate fluctuations on sales and operating income (loss), see Notes on page 10.

Operating income increased 20.1 billion yen year-on-year to 202.1 billion yen (1,685 million U.S. dollars). This increase was primarily due to improvements in the results of All Other, the Pictures segment, the MC segment and the G&NS segment. The increase in consolidated operating income was partially offset by a significant deterioration in the operating results of the Devices segment, primarily due to deterioration in the operating results of the battery business, including the recording of a 30.6 billion yen (255 million U.S. dollars) impairment charge related to long-lived assets. In the same quarter of the previous fiscal year, an 11.2 billion yen write-down of PlayStation®Vita (“PS Vita”) and PlayStation®TV (“PS TV”) components in the G&NS segment was recorded.

During the current quarter, restructuring charges, net, decreased 3.0 billion yen year-on-year to 6.1 billion yen (51 million U.S. dollars).

Equity in net income of affiliated companies, recorded within operating income, was 1.8 billion yen (15 million U.S. dollars), compared to a loss of 0.1 billion yen in the same quarter of the previous fiscal year. This improvement was mainly due to an improvement of equity in net income (loss) for AEGON Sony Life Insurance Co., Ltd. in the Financial Services segment.

The net effect of other income and expenses was an expense of 8.9 billion yen (74 million U.S. dollars), an improvement of 5.4 billion yen year-on-year mainly due to a decrease in foreign exchange loss, net.

Income before income taxes increased 25.5 billion yen year-on-year to 193.3 billion yen (1,611 million U.S. dollars).

Income taxes: During the current quarter, Sony recorded 55.7 billion yen (464 million U.S. dollars) of income tax expense, resulting in an effective tax rate of 28.8%. This effective tax rate was lower than the Japanese statutory tax rate primarily as a result of profits recorded in the insurance business, which is subject to lower tax rates, coupled with lower income tax expenses due to profits recorded at Sony Corporation and its national tax filing group in Japan, which currently have valuation allowances for deferred tax assets. In the same quarter of the previous fiscal year, Sony recorded 56.2 billion yen of income tax expense, resulting in an effective tax rate of 33.5%.

Net income attributable to Sony Corporation’s stockholders, which deducts net income attributable to noncontrolling interests, increased 30.2 billion yen year-on-year to 120.1 billion yen (1,001 million U.S. dollars).

Operating Performance Highlights by Business Segment

“Sales and operating revenue” in each business segment represents sales and operating revenue recorded before intersegment transactions are eliminated. “Operating income (loss)” in each business segment represents operating income (loss) reported before intersegment transactions are eliminated and excludes unallocated corporate expenses.

Mobile Communications (MC)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015
Sales and operating revenue	¥	450.9	¥	384.5		-14.7	%	$	3,204
Operating income		10.4		24.1		+133.2			201

Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income (loss) of the MC segment of the comparable prior period have been reclassified to conform to the current presentation. For details, please see Notes on page 10.

Sales decreased 14.7% year-on-year (a 13% decrease on a constant currency basis) to 384.5 billion yen (3,204 million U.S. dollars). This decrease was due to a significant decrease in smartphone unit sales resulting from a strategic decision not to pursue scale in order to improve profitability.

Operating income increased 13.8 billion yen year-on-year to 24.1 billion yen (201 million U.S. dollars). This significant increase was primarily due to an improvement in product mix reflecting a shift to high value-added models, as well as reductions in costs including marketing, research and development and other selling, general and administrative expenses, partially offset by the above-mentioned decrease in smartphone unit sales and the negative impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs. During the current quarter, there was an 18.8 billion yen negative impact from foreign exchange rate fluctuations.

Game & Network Services (G&NS)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015
Sales and operating revenue	¥	531.5	¥	587.1		+10.5	%	$	4,892
Operating income		27.6		40.2		+45.5			335

The G&NS segment includes the Hardware, Network, and Other categories. Hardware includes home and portable game consoles; Network includes network services relating to game, video and music content provided by Sony Network Entertainment International LLC; Other includes packaged software and peripheral devices.

Sales increased 10.5% year-on-year (an 11% increase on a constant currency basis) to 587.1 billion yen (4,892 million U.S. dollars). This significant increase was primarily due to increases in PS4 software sales and PS4 hardware unit sales, partially offset by a decrease in PlayStation®3 (“PS3”) software and hardware sales.

Operating income increased 12.6 billion yen year-on-year to 40.2 billion yen (335 million U.S. dollars). This increase was primarily due to the increase in PS4 software sales as well as the absence in the current quarter of an 11.2 billion yen write-down of PS Vita and PS TV components recorded in the same quarter of the previous fiscal year. Partially offsetting the increase in operating income were the negative impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs, and the decrease in PS3 software sales. During the current quarter, there was a 19.2 billion yen negative impact from foreign exchange rate fluctuations.

Imaging Products & Solutions (IP&S)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015
Sales and operating revenue	¥	201.9	¥	191.9		-5.0	%	$	1,599
Operating income		19.7		23.7		+20.5			197

The IP&S segment includes the Digital Imaging Products, Professional Solutions and Other categories. Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products; Other includes operating revenues and flow cytometers. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income (loss) of the IP&S segment of the comparable prior period have been reclassified to conform to the current presentation. For details, please see Notes on page 10.

Sales decreased 5.0% year-on-year (a 5% decrease on a constant currency basis) to 191.9 billion yen (1,599 million U.S. dollars). This decrease was primarily due to decreases in unit sales of video cameras and digital cameras* reflecting a contraction of the market, partially offset by an improvement in the product mix of digital cameras reflecting a shift to high value-added models.

Operating income increased 4.0 billion yen year-on-year to 23.7 billion yen (197 million U.S. dollars). This increase was mainly due to the improvement in the product mix of digital cameras and cost reductions, partially offset by the impact of the above-mentioned decrease in sales. During the current quarter, there was a 2.3 billion yen negative impact from foreign exchange rate fluctuations.

* Digital cameras includes compact digital cameras, interchangeable single-lens cameras and interchangeable lenses.

Home Entertainment & Sound (HE&S)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015
Sales and operating revenue	¥	420.2	¥	402.0		-4.3	%	$	3,350
Operating income		26.0		31.2		+19.8			260

The HE&S segment includes the Televisions and Audio and Video categories. Televisions includes LCD televisions; Audio and Video includes Blu-ray DiscTM players and recorders, home audio, headphones and memory-based portable audio devices. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income (loss) of the HE&S segment of the comparable prior period have been reclassified to conform to the current presentation. For details, please see Notes on page 10.

Sales decreased 4.3% year-on-year (a 3% decrease on a constant currency basis) to 402.0 billion yen (3,350 million U.S. dollars). This decrease was primarily due to a decrease in unit sales of LCD televisions, and a decrease in home audio and video unit sales, reflecting a contraction of the market, as well as the impact of foreign exchange rates, partially offset by an improvement in the product mix of LCD televisions, reflecting a shift to high value-added models.

Operating income increased 5.2 billion yen year-on-year to 31.2 billion yen (260 million U.S. dollars). This increase was primarily due to cost reductions and an improvement in product mix, partially offset by the negative impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs, as well as the impact of the above-mentioned decrease in sales. During the current quarter, there was a 14.9 billion yen negative impact from foreign exchange rate fluctuations.

In Televisions, sales* were 278.5 billion yen (2,321 million U.S. dollars), essentially flat year-on-year. This was primarily due to a decrease in LCD television unit sales resulting from a strategic decision not to pursue scale in order to improve profitability and the impact of foreign exchange rates, substantially offset by the improvement in product mix reflecting a shift to high value-added models. Operating income** increased 6.6 billion yen year-on-year to 15.9 billion yen (132 million U.S. dollars). This increase was primarily due to cost reductions and the improvement in product mix, partially offset by the negative impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs, and the impact of the decrease in unit sales.

* Sales for Televisions do not include operating revenue.

** The operating income in Televisions excludes restructuring charges, which are included in the overall segment results and are not allocated to product categories.

Devices

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015			Change in yen			2015
Sales and operating revenue	¥	285.9	¥	249.9			-12.6	%	$	2,082
Operating income (loss)		53.8		(11.7	)		-			(97	)

The Devices segment includes the Semiconductors and Components categories. Semiconductors includes image sensors and camera modules; Components includes batteries and recording media. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income (loss) of the Devices segment of the comparable prior period have been reclassified to conform to the current presentation. For details, please see Notes on page 10.

Sales decreased 12.6% year-on-year (a 16% decrease on a constant currency basis) to 249.9 billion yen (2,082 million U.S. dollars). This decrease was primarily due to a significant decrease in sales of image sensors, reflecting a decrease in demand for mobile products, and a significant decrease in battery business sales. This sales decrease was partially offset by an increase in sales of camera modules which were lower than originally forecasted and the impact of foreign exchange rates. Sales to external customers decreased 7.5% year-on-year.

Operating loss of 11.7 billion yen (97 million U.S. dollars) was recorded, compared to an operating income of 53.8 billion yen in the same quarter of the previous fiscal year. This significant deterioration was primarily due to the deterioration in the operating results of the battery business, including the recording of a 30.6 billion yen (255 million U.S. dollars) impairment charge related to long-lived assets, increases in depreciation and amortization expenses as well as in research and development expenses for image sensors and camera modules, and the impact of the decrease in sales of image sensors. For the battery business, due to the increasingly competitive markets, Sony performed an impairment analysis in the current quarter ended December 31, 2015, and reduced the corresponding estimated future cash flows and the estimated ability to recover the entire carrying amount of the long-lived assets, resulting in an impairment charge. During the current quarter, there was a 3.1 billion yen positive impact from foreign exchange rate fluctuations.

* * * * *

Total inventory of the five Electronics* segments above as of December 31, 2015 was 644.7 billion yen (5,373 million U.S. dollars), a decrease of 27.6 billion yen, or 4.1% year-on-year. Inventory decreased by 188.8 billion yen, or 22.7% compared with the level as of September 30, 2015.

* The term “Electronics” refers to the sum of the MC, G&NS, IP&S, HE&S and Devices segments.

In connection with the realignments made from the first quarter and the third quarter of the fiscal year ending March 31, 2016, total inventory of the five Electronics segments as of December 31, 2014 and September 30, 2015 has been reclassified to conform to the current presentation. For further details, please see Notes on page 10.

* * * * *

Pictures

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015
Sales and operating revenue	¥	206.6	¥	262.1		+26.9	%	$	2,184
Operating income		6.2		20.4		+227.4			170

The Pictures segment is comprised of the Motion Pictures, Television Productions, and Media Networks categories. Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks.

The results presented in Pictures are a yen-translation of the results of Sony Pictures Entertainment Inc. (“SPE”), a U.S.-based operation that aggregates the results of its worldwide subsidiaries on a U.S. dollar basis. Management analyzes the results of SPE in U.S. dollars, so discussion of certain portions of its results is specified as being on “a U.S. dollar basis.”

Sales increased 26.9% year-on-year (a 21% increase on a U.S. dollar basis) to 262.1 billion yen (2,184 million U.S. dollars). The increase in sales on a U.S. dollar basis was primarily due to significantly higher sales for Motion Pictures, partially offset by the impact of foreign exchange rates. The increase in Motion Pictures sales was primarily driven by higher theatrical revenues, as the current quarter benefitted from the strong worldwide theatrical performances of Spectre and Hotel Transylvania 2, partially offset by lower home entertainment revenues, as the same quarter of the previous fiscal year benefitted from the home entertainment performances of 22 Jump Street and The Equalizer.

Operating income increased 14.1 billion yen year-on-year to 20.4 billion yen (170 million U.S. dollars). This increase was primarily due to the impact of the above-mentioned increase in sales, partially offset by higher theatrical marketing expenses. The increase in operating income also reflects lower overhead expenses as compared to the same quarter of the previous fiscal year, primarily due to a reduction in incentive compensation expense as well as insurance recoveries related to losses incurred from the cyberattack on SPE’s network and IT infrastructure in the Fall of 2014.

Music

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015
Sales and operating revenue	¥	167.5	¥	181.2		+8.2	%	$	1,510
Operating income		25.9		27.4		+5.7			228

The Music segment is comprised of the Recorded Music, Music Publishing and Visual Media and Platform categories. 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 various service offerings for music and visual products and the production and distribution of animation titles.

The results presented in Music include the yen-translated results of Sony Music Entertainment (“SME”), a U.S.-based operation which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis, the results of Sony Music Entertainment (Japan) Inc., a Japan-based music company which aggregates its results in yen, and the yen-translated consolidated results of Sony/ATV Music Publishing LLC (“Sony/ATV”), a 50% owned U.S.-based joint venture in the music publishing business which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis.

Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income (loss) of the Music segment of the comparable prior period have been reclassified to conform to the current presentation. For details, please see Notes on page 10.

Sales increased 8.2% year-on-year (a 4% increase on a constant currency basis) to 181.2 billion yen (1,510 million U.S. dollars) primarily due to the impact of the depreciation of the yen against the U.S. dollar. The increase in sales on a constant currency basis is due to higher Recorded Music sales, reflecting an increase in digital streaming revenue, and higher Visual Media and Platform sales, reflecting the strong performance of a game application for mobile devices. The current quarter includes the record-breaking sales of Adele’s new album 25. Other best-selling titles included One Direction’s Made in the A.M., Elvis Presley’s If I Can Dream: Elvis Presley with the Royal Philharmonic Orchestra and Bruce Springsteen’s The Ties That Bind: The River Collection.

Operating income increased 1.5 billion yen year-on-year to 27.4 billion yen (228 million U.S. dollars). This increase was primarily due to the above-mentioned increase in sales in Recorded Music and Visual Media and Platform.

Financial Services

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014		2015		Change in yen			2015
Financial services revenue	¥	304.9	¥	322.0		+5.6	%	$	2,684
Operating income		50.9		52.2		+2.7			435

The Financial Services segment results include Sony Financial Holdings Inc. (“SFH”) and SFH’s consolidated subsidiaries such as Sony Life Insurance Co., Ltd. (“Sony Life”), Sony Assurance Inc. and Sony Bank Inc. The results of Sony Life discussed in the Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

Financial services revenue increased 5.6% year-on-year to 322.0 billion yen (2,684 million U.S. dollars) primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 5.7% year-on-year to 295.0 billion yen (2,458 million U.S. dollars) mainly due to an increase in insurance premium revenue reflecting a steady increase in policy amount in force.

Operating income of 52.2 billion yen (435 million U.S. dollars) was recorded, essentially flat year-on-year. At Sony Life, operating income of 51.6 billion yen (430 million U.S. dollars) was recorded, essentially flat year-on-year, mainly due to the above-mentioned increase in insurance premium revenue, substantially offset by an increase in operating expenses.

All Other

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2014			2015		Change in yen			2015
Sales and operating revenue	¥	117.6		¥	96.8		-17.7	%	$	807
Operating income (loss)		(12.6	)		5.7		-			47

All Other included costs related to the PC business in the same quarter of the previous fiscal year. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income (loss) of All Other of the comparable prior period have been reclassified to conform to the current presentation. For details, please see Notes on page 10.

Sales decreased 17.7% year-on-year to 96.8 billion yen (807 million U.S. dollars).

Operating income of 5.7 billion yen (47 million U.S. dollars) was recorded, compared to an operating loss of 12.6 billion yen in the same quarter of the previous fiscal year. This significant improvement was primarily due to a decrease in PC exit costs, including restructuring charges and after-sales service expenses, as well as the absence in the current quarter of sales company fixed costs charged to the PC business in the same quarter of the previous fiscal year which were allocated based on the prior year results.

* * * * *

Consolidated Results for the Nine Months ended December 31, 2015

For Consolidated Statements of Income and Business Segment Information for the nine months ended December 31, 2015 and 2014, please refer to pages F-3 and F-7 respectively.

Sales for the nine months ended December 31, 2015 (“the current nine months”) were 6,281.6 billion yen (52,347 million U.S. dollars), essentially flat year-on-year. This was primarily due to the significant increase in sales in the G&NS segment and the impact of foreign exchange rates, substantially offset by the significant decrease in sales in the MC segment.

During the current nine months, the average rates of the yen were 121.7 yen against the U.S. dollar and 134.4 yen against the euro, which were 12.2% lower and 4.4% higher, respectively, as compared with the same period in the previous fiscal year. On a constant currency basis, consolidated sales decreased 4%. For further details about sales on a constant currency basis, see Notes on page 10.

In the MC segment, sales decreased significantly primarily due to a significant decrease in smartphone unit sales resulting from a strategic decision not to pursue scale in order to improve profitability. In the G&NS segment, sales increased significantly primarily due to the contribution of PS4 software sales. In the IP&S segment, sales were essentially flat year-on-year primarily due to an improvement in the product mix of digital cameras reflecting a shift to high value-added models, substantially offset by a decrease in unit sales of digital cameras reflecting a contraction of the market. In the HE&S segment, sales decreased primarily due to decreases in LCD televisions and home audio and video unit sales. In the Devices segment, sales increased mainly due to the impact of foreign exchange rates and an increase in sales of image sensors. In the Pictures segment, sales increased primarily due to the impact of the depreciation of the yen against the U.S. dollar. On a U.S. dollar basis, sales for the Pictures segment decreased primarily due to lower home entertainment and television licensing revenues for Motion Pictures and the impact of foreign exchange rates. In the Music segment, sales increased significantly primarily due to the impact of the depreciation of the yen against the U.S. dollar and higher Recorded Music and Visual Media and Platform sales. In the Financial Services segment, revenue was essentially flat year-on-year primarily due to a deterioration in investment performance in the separate account at Sony Life, substantially offset by an increase in insurance premium revenue at Sony Life.

Operating income increased 220.7 billion yen year-on-year to 387.1 billion yen (3,226 million U.S. dollars). This increase was primarily due to the absence of the impairment charge of goodwill of 176.0 billion yen recorded in the MC segment in the same period of the previous fiscal year, the improvement in the operating results of All Other, reflecting a decrease in operating loss of the PC business, as well as the improvements in G&NS, Music, IP&S and HE&S segment results, partially offset by significant deteriorations in the operating results of the Devices and Pictures segments.

Operating income during the current nine months includes a 30.6 billion yen (255 million U.S. dollar) impairment charge of long-lived assets in the battery business recorded in the Devices segment, a 151 million U.S. dollar (18.1 billion yen) gain on the remeasurement to fair value of SME’s 51% equity interest in Orchard Media, Inc. (“The Orchard”), which had previously been accounted for under the equity method, as a result of SME increasing its ownership interest to 100%, recorded in the Music Segment, as well as a gain of 12.3 billion yen (101 million U.S. dollars) from the sale of a part of the logistics business, in connection with the formation of a logistics joint venture, recorded in Corporate and elimination. The operating income in the same period of the previous fiscal year included the above-mentioned 176.0 billion yen impairment charge of goodwill recorded in the MC segment, a gain of 14.8 billion yen recognized on the sale of certain buildings and premises at the Gotenyama Technology Center in Japan, recorded in Corporate and elimination and an 11.2 billion yen write-down of PS Vita and PS TV components recorded in the G&NS segment.

In the MC segment, operating loss decreased significantly year-on-year mainly due to the absence in the current period of the above-mentioned goodwill impairment charge recorded in the same period of the previous fiscal year. In the G&NS segment, operating income increased significantly year-on-year primarily due to the contribution of PS4 software sales. In the IP&S segment, operating income increased significantly year-on-year primarily due to an improvement in the product mix of digital cameras as a result of a shift to high value-added models. In the HE&S segment, operating income increased year-on-year primarily due to cost reductions and an improvement in product mix reflecting a shift to high value-added models. In the Devices segment, operating income decreased significantly mainly due to the recording of an impairment charge in the battery business. In the Pictures segment, operating results deteriorated significantly primarily due to the above-mentioned decrease in Motion Pictures sales. In the Music segment, operating income increased significantly primarily due to the gain recorded on the remeasurement to fair value of SME’s 51% equity interest in The Orchard. In the Financial Services segment, operating income was essentially flat year-on-year. This result was primarily due to increases in the provision of policy reserves and the amortization of deferred insurance acquisition costs, both pertaining to variable insurance, driven by the deterioration in investment performance in the separate account at Sony Life, substantially offset by an improvement in investment performance in the general account at Sony Life.

Restructuring charges, net, recorded as operating expenses, amounted to 21.8 billion yen (182 million U.S. dollars) for the current nine months, compared to 33.7 billion yen for the same period of the previous fiscal year.

Equity in net income of affiliated companies, recorded within operating income, decreased 0.6 billion yen year-on-year to 3.1 billion yen (26 million U.S. dollars) for the current nine months.

The net effect of other income and expenses was income of 17.1 billion yen (142 million U.S. dollars), compared to an expense of 20.1 billion yen in the same period of the previous fiscal year. This was primarily due to an increase in the gain on sales of securities investments.

Income before income taxes increased 257.9 billion yen year-on-year to 404.2 billion yen (3,368 million U.S. dollars) for the current nine months.

Income taxes: During the current nine months, Sony recorded 119.4 billion yen (994 million U.S. dollars) of income tax expense, resulting in an effective tax rate of 29.5%. This effective tax rate was lower than the Japanese statutory tax rate primarily as a result of profits recorded in the insurance business, which is subject to lower tax rates, coupled with lower income tax expenses due to profits recorded at Sony Corporation and its national tax filing group in Japan, which currently have valuation allowances for deferred tax assets. In the same period of the previous fiscal year, Sony recorded 112.3 billion yen of income tax expense, and Sony’s effective tax rate exceeded the Japanese statutory tax rate. This was primarily due to the nondeductible goodwill impairment recorded during the same period of the previous fiscal year.

Net income attributable to Sony Corporation’s stockholders, which deducts net income attributable to noncontrolling interests, was 236.1 billion yen (1,968 million U.S. dollars) in the current nine months, compared to a loss of 19.2 billion yen in the same period of the previous fiscal year.

* * * * *

Cash Flows

For Consolidated Statements of Cash Flows, charts showing Sony’s cash flow information for all segments, all segments excluding the Financial Services segment and the Financial Services segment alone, please refer to pages F-5 and F-17.

Operating Activities: During the current nine months, there was a net cash inflow of 321.5 billion yen (2,680 million U.S. dollars) from operating activities, a decrease of 61.4 billion yen, or 16.0% year-on-year.

For all segments excluding the Financial Services segment, there was a net cash inflow of 22.6 billion yen (189 million U.S. dollars), a decrease of 89.9 billion yen, or 79.9% year-on-year. This decrease was primarily due to an increase in inventories, compared to a decrease in the same period of the previous fiscal year, partially offset by factors such as a larger increase in notes and accounts payable, trade.

The Financial Services segment had a net cash inflow of 308.2 billion yen (2,569 million U.S. dollars), an increase of 30.0 billion yen, or 10.8% year-on-year. This increase was primarily due to an increase in insurance premium revenue at Sony Life.

Investing Activities: During the current nine months, Sony used 669.8 billion yen (5,582 million U.S. dollars) of net cash in investing activities, an increase of 306.0 billion yen, or 84.1% year-on-year.

For all segments excluding the Financial Services segment, there was a net cash outflow of 186.6 billion yen (1,555 million U.S. dollars), an increase of 139.9 billion yen, or 299.8% year-on-year. This increase was primarily due to an increase in the amount of fixed asset purchases, such as semiconductor manufacturing equipment, partially offset by factors such as cash inflow from the sale of certain shares of Olympus Corporation.

The Financial Services segment used 482.1 billion yen (4,018 million U.S. dollars) of net cash, an increase of 165.0 billion yen, or 52.0% year-on-year. This increase was mainly due to a year-on-year increase in payments for investments and advances at Sony Life.

In all segments excluding the Financial Services segment, net cash used in operating and investing activities combined*1 for the current nine months was 163.9 billion yen (1,366 million U.S. dollars), a 229.8 billion yen deterioration from cash generated in the same period of the previous fiscal year.

Financing Activities: Net cash provided by financing activities during the current nine months was 497.8 billion yen (4,148 million U.S. dollars), compared to a net cash outflow of 184.6 billion yen in the same period of the previous fiscal year.

For all segments excluding the Financial Services segment, there was a 275.3 billion yen (2,294 million U.S. dollars) net cash inflow, compared to a net cash outflow of 281.5 billion yen in the same period of the previous fiscal year. This change was primarily due to the issuance of new stock and convertible bonds in the current nine months.

In the Financial Services segment, financing activities provided 212.0 billion yen (1,767 million U.S. dollars) of net cash, an increase of 122.9 billion yen, or 137.9% year-on-year. This increase was primarily due to a larger increase in short-term borrowings and policyholders’ account at Sony Life.

Total Cash and Cash Equivalents: Accounting for the above factors and the effect of fluctuations in foreign exchange rates, the total outstanding balance of cash and cash equivalents at December 31, 2015 was 1,090.6 billion yen (9,089 million U.S. dollars). Cash and cash equivalents of all segments excluding the Financial Services segment was 845.0 billion yen (7,042 million U.S. dollars) at December 31, 2015, an increase of 202.0 billion yen, or 31.4% compared with the balance as of December 31, 2014, and an increase of 103.1 billion yen, or 13.9% compared with the balance as of March 31, 2015. Sony believes that it continues to maintain sufficient liquidity through access to a total, translated into yen, of 537.9 billion yen (4,483 million U.S. dollars) of unused committed lines of credit with financial institutions in addition to the cash and cash equivalents balance at December 31, 2015. Within the Financial Services segment, the outstanding balance of cash and cash equivalents was 245.7 billion yen (2,047 million U.S. dollars) at December 31, 2015, a decrease of 44.9 billion yen, or 15.4% compared with the balance as of December 31, 2014, and an increase of 38.1 billion yen, or 18.4% compared with the balance as of March 31, 2015.

*1 Sony has included the information for cash flow from operating and investing activities combined, excluding the Financial Services segment’s activities, as Sony’s management frequently monitors this financial measure, and believes this non-U.S. GAAP measurement is important for use in evaluating Sony’s ability to generate cash to maintain liquidity and fund debt principal and dividend payments from business activities other than its Financial Services segment. This information is derived from the reconciliations prepared in the Condensed Statements of Cash Flows on page F-17. This information and the separate condensed presentations shown below are not required or prepared in accordance with U.S. GAAP. The Financial Services segment’s cash flow is excluded from the measure because SFH, which constitutes a majority of the Financial Services segment, is a separate publicly traded entity in Japan with a significant minority interest and it, as well as its subsidiaries, secure liquidity on their own. This measure may not be comparable to those of other companies. This measure has limitations because it does not represent residual cash flows available for discretionary expenditures principally due to the fact that the measure does not deduct the principal payments required for debt service. Therefore, Sony believes it is important to view this measure as supplemental to its entire statement of cash flows and together with Sony’s disclosures regarding investments, available credit facilities and overall liquidity.

A reconciliation of the differences between the Consolidated Statements of Cash Flows reported and cash flows from operating and investing activities combined excluding the Financial Services segment’s activities is as follows:

	(Billions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2014			2015			2015

Net cash provided by operating activities reported in the consolidated statements of cash flows	¥	382.9		¥	321.5		$	2,680
Net cash used in investing activities reported in the consolidated statements of cash flows		(363.8	)		(669.8	)		(5,582	)
		19.1			(348.3	)		(2,902	)

Less: Net cash provided by operating activities within the Financial Services segment		278.2			308.2			2,569
Less: Net cash used in investing activities within the Financial Services segment		(317.1	)		(482.1	)		(4,018	)
Eliminations *2		7.9			10.5			87

Cash flow provided by (used by) operating and investing activities combined excluding the Financial Services segment’s activities	¥	65.9		¥	(163.9	)	$	(1,366	)

*2	Eliminations primarily consist of intersegment dividend payments.

* * * * *

Notes

Business Segment Realignment

Sony realigned its business segments from the first quarter of the fiscal year ending March 31, 2016 to reflect modifications to its organizational structure as of April 1, 2015, primarily repositioning certain operations in All Other and the Devices segment. In connection with this realignment, the operations of Sony’s disc manufacturing business in Japan, which were included in All Other, are now included in the Music segment and the operations of So-net Corporation and its subsidiaries, which were included in All Other, are now included in the MC segment. Certain operations regarding pre-installed automotive audio products which were included in the Devices segment are now included in the HE&S segment.

In addition, in order to reflect a change as of October 1, 2015 in the Corporate Executive Officer in charge of the medical business, which was previously included in All Other, this business is now included in the IP&S segment from the third quarter of the fiscal year ending March 31, 2016.

In connection with these realignments, the sales and operating income (loss) of each segment in the fiscal year ended March 31, 2015 have been reclassified to conform to the presentation of the fiscal year ending March 31, 2016.

Impact of Foreign Exchange Rate Fluctuations on Sales and Operating Income (Loss)

For all segments other than Pictures and Music, the impact of foreign exchange rate fluctuations on sales is calculated by applying the change in the yen’s periodic weighted average exchange rates for the three and nine months ended December 31, 2014 from the three and nine months ended December 31, 2015 to the major transactional currencies in which the sales are denominated. The impact of foreign exchange rate fluctuations on operating income (loss) described herein is calculated by subtracting from the impact on sales the impact on cost of sales and selling, general and administrative expenses calculated by applying the same major transactional currencies calculation process to cost of sales and selling, general and administrative expenses as for the impact on sales. Since the worldwide subsidiaries of the Pictures segment and of SME and Sony/ATV in the Music segment are aggregated on a U.S. dollar basis and are translated into yen, the impact of foreign exchange rate fluctuations is calculated by applying the change in the periodic weighted average exchange rates for the three and nine months ended December 31, 2014 from the three and nine months ended December 31, 2015 from U.S. dollar to yen to the U.S. dollar basis operating results. This information is not a substitute for Sony’s consolidated financial statements measured in accordance with U.S. GAAP. However, Sony believes that these disclosures provide additional useful analytical information to investors regarding the operating performance of Sony.

* * * * *

Outlook for the Fiscal Year Ending March 31, 2016

The forecast for consolidated results for the fiscal year ending March 31, 2016, as announced on October 29, 2015, remains unchanged, as per the table below.

	(Billions of yen)
	January Forecast		March 31, 2015 Results			Change from March 31, 2015 Results
Sales and operating revenue	¥	7,900	¥	8,215.9			-3.8	%
Operating income		320		68.5		+ ¥251.5 bil
Income before income taxes		345		39.7		+ ¥305.3 bil
Net income (loss) attributable to Sony Corporation’s stockholders		140		(126.0	)	+ ¥266.0 bil

Assumed foreign currency exchange rates for the remainder of the fiscal year ending March 31, 2016 are the following.

	Remainder of the current fiscal year	(For your reference) Remainder of the current fiscal year at the time of the October forecast*
	Consolidated forecast and forecasts for each segment	Consolidated forecast	Forecasts for each segment
1 U.S. dollar	approximately 120 yen	approximately 125 yen	approximately 121 yen
1 Euro	approximately 129 yen	approximately 130 yen	approximately 132 yen

* Due to volatility in foreign exchange rates, the assumed foreign currency exchange rates were revised after the individual segments had already completed their October forecasts. Accordingly, the impact of the difference between the assumed rates and the rates used when the individual segments completed their forecasts were included in the October forecast for All Other.

Restructuring charges are expected to be approximately 35 billion yen for Sony in the fiscal year ending March 31, 2016, compared to 98.0 billion yen recorded in the fiscal year ended March 31, 2015. This amount will be recorded as an operating expense included in the above-mentioned forecast for operating income.

The forecast for each business segment has been revised as follows:

	(Billions of yen)									Change - January Forecast from
	January Forecast			October Forecast			March 31, 2015 Results			October Forecast			March 31, 2015 Results
Mobile Communications
Sales and operating revenue	¥	1,140		¥	1,190		¥	1,410.2			-4.2	%		-19.2	%
Operating loss		(60	)		(60	)		(217.6	)		-		+ ¥ 157.6 bil
Game & Network Services
Sales and operating revenue		1,520			1,520			1,388.0			-			+9.5	%
Operating income		85			80			48.1		+ ¥ 5.0 bil			+ ¥ 36.9 bil
Imaging Products & Solutions
Sales and operating revenue		710			720			723.9			-1.4	%		-1.9	%
Operating income		63			58			41.8		+¥ 5.0 bil			+ ¥ 21.2 bil
Home Entertainment & Sound
Sales and operating revenue		1,150			1,140			1,238.1			+0.9	%		-7.1	%
Operating income		38			25			24.1		+ ¥ 13.0 bil			+ ¥ 13.9 bil
Devices
Sales and operating revenue		940			1,060			927.1			-11.3	%		+1.4	%
Operating income		39			121			89.0		- ¥ 82.0 bil			- ¥ 50.0 bil
Pictures
Sales and operating revenue		1,000			1,000			878.7			-			+13.8	%
Operating income		35			35			58.5			-		- ¥ 23.5 bil
Music
Sales and operating revenue		600			550			559.2			+9.1	%		+7.3	%
Operating income		84			74			60.6		+ ¥10.0 bil			+ ¥ 23.4 bil
Financial Services
Financial services revenue		1,060			1,060			1,083.6			-			-2.2	%
Operating income		175			175			193.3			-		- ¥ 18.3 bil
All Other, Corporate and Elimination
Operating loss		(139	)		(188	)		(229.3	)	+ ¥49.0 bil			+ ¥ 90.3bil
Consolidated
Sales and operating revenue		7,900			7,900			8,215.9			-			-3.8	%
Operating income		320			320			68.5			-		+ ¥ 251.5 bil

Mobile Communications

Sales are expected to be lower than the October forecast primarily due to an expected decrease in smartphone unit sales. The forecast for operating loss remains unchanged from the October forecast due to the above-mentioned decrease in sales being offset mainly by higher than originally anticipated selling prices of smartphones and additional cost reductions.

Game & Network Services

The forecast for sales remains unchanged from the October forecast. Operating income is expected to be above the October forecast primarily due to an increase in network sales, partially offset by the impact of a change in the launch date of a first-party title.

Imaging Products & Solutions

Sales are expected to be lower than the October forecast primarily due to lower than expected sales of broadcast- and professional-use products. Operating income is expected to be higher than the October forecast primarily due to an improvement in the product mix of digital cameras reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in sales.

Home Entertainment & Sound

Sales are expected to be higher than the October forecast primarily due to an upward revision in the annual unit sales forecast for LCD televisions. Operating income is expected to be higher than the October forecast primarily due to the impact of the above-mentioned increase in sales and cost reductions. Included in this forecast is the reversal recorded for certain sales incentive accruals, which were related to the current and prior periods. For further details, see Note 8 on page F-19.

Devices

Sales are expected to be lower than the October forecast primarily due to significantly lower than expected sales of image sensors and camera modules, reflecting a decrease in demand for mobile products and lower than expected sales in the battery business. The forecast for operating income is expected to be significantly lower than the October forecast primarily due to the impact of the above-mentioned decrease in sales and the recording of an impairment charge related to long-lived assets in the battery business during the current quarter.

Sony is currently formulating its business plan for all of its business segments for the fiscal year ending March 31, 2017. With regard to the camera module business, there is a possibility that factors such as a decrease in projected future demand, which caused a downward revision in the forecast for the current fiscal year for the business, could continue to have a negative impact on the business going forward. It is therefore possible that the above-described business environment might result in an impairment charge against long-lived assets in the camera module business.

Music

Sales are expected to be higher than the October forecast primarily due to higher than expected sales for Recorded Music and Visual Media and Platform. Operating income is expected to be higher than the October forecast due to the impact of the above-mentioned increase in sales.

The forecasts for sales and operating income for the Pictures and Financial Services segments remain unchanged from the October forecast.

The effects of future gains and losses on investments held by the Financial Services segment due to market fluctuations have not been incorporated within the above forecast as it is difficult for Sony to predict market trends in the future. Accordingly, future market fluctuations could further impact the current forecast.

Sony’s forecast for capital expenditures and research and development expenses for the current fiscal year, as announced on October 29, 2015, has been changed as per the table below. The forecast for depreciation and amortization remains unchanged.

Consolidated

	(Billions of yen)						Change - January Forecast from
	January Forecast		October Forecast		March 31, 2015 Results		October Forecast			March 31, 2015 Results
Capital expenditures*	¥	475	¥	510	¥	251.0		-6.9	%		+89.2	%
[additions to property, plant and equipment (included above)		395		430		164.8		-8.1			+139.6	]
[additions to intangible assets (included above) *		80		80		86.2		-			-7.2	]
Depreciation and amortization**		365		365		354.6		-			+2.9
[for property, plant and equipment (included above)		175		175		165.9		-			+5.5	]
[for intangible assets (included above)		190		190		188.8		-			+0.7	]
Research and development expenses		470		490		464.3		-4.1			+1.2

* Does not include the increase in intangible assets resulting from business acquisitions.

** The forecast for depreciation and amortization includes amortization expenses for deferred insurance acquisition costs.

Sony without Financial Services

	(Billions of yen)						Change - January Forecast from
	January Forecast		October Forecast		March 31, 2015 Results		October Forecast			March 31, 2015 Results
Capital expenditures*	¥	466	¥	501	¥	243.9		-7.0	%		+91.0	%
[additions to property, plant and equipment (included above)		393		428		163.4		-8.2			+140.5	]
[additions to intangible assets (included above) *		73		73		80.5		-			-9.3	]
Depreciation and amortization		294		294		288.4		-			+1.9
[for property, plant and equipment (included above)		174		174		164.7		-			+5.7	]
[for intangible assets (included above)		120		120		123.7		-			-3.0	]

* Does not include the increase in intangible assets resulting from business acquisitions.

A 19.0 billion yen investment related to the purchase of semiconductor fabrication facilities, equipment and related assets from Toshiba Corporation is included in the January forecast for capital expenditures. This amount was not included in the October forecast because a definitive agreement was reached in December 2015.

This forecast is based on management’s current expectations and is subject to uncertainties and changes in circumstances. Actual results may differ materially from those included in this forecast due to a variety of factors. See “Cautionary Statement” below.

* * * * *

Year-end Dividend for the Fiscal Year Ending March 31, 2016

Sony paid 10 yen per share as an interim dividend, and plans to pay 10 yen per share as the year-end dividend, resulting in a total dividend of 20 yen per share for the fiscal year ending March 31, 2016.

* * * * *

Cautionary Statement

Statements made in this release with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:

(i)	the global economic environment in which Sony operates and the economic conditions in Sony’s markets, particularly levels of consumer spending;

(ii)	foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets and liabilities are denominated;

(iii)

Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including televisions, game platforms and smartphones, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing consumer preferences;

(iv)	Sony’s ability and timing to recoup large-scale investments required for technology development and production capacity;

(v)	Sony’s ability to implement successful business restructuring and transformation efforts under changing market conditions;

(vi)	Sony’s ability to implement successful hardware, software, and content integration strategies for all segments excluding the Financial Services segment, and to develop and implement successful sales and distribution strategies in light of the Internet and other technological developments;

(vii)

Sony’s continued ability to devote sufficient resources to research and development and, with respect to capital expenditures, to prioritize investments correctly (particularly in the electronics businesses);

(viii)

Sony’s ability to maintain product quality;

(ix)	the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures and other strategic investments;

(x)	significant volatility and disruption in the global financial markets or a ratings downgrade;

(xi)	Sony’s ability to forecast demands, manage timely procurement and control inventories;

(xii)

the outcome of pending and/or future legal and/or regulatory proceedings;

(xiii)

shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment;

(xiv)

the impact of unfavorable conditions or developments (including market fluctuations or volatility) in the Japanese equity markets on the revenue and operating income of the Financial Services segment;

(xv)	Sony’s ability to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information, potential business disruptions or financial losses; and

(xvi)

risks related to catastrophic disasters or similar events.

Risks and uncertainties also include the impact of any future events with material adverse impact.

Investor Relations Contacts:

Tokyo	New York	London
Atsuko Murakami	Justin Hill	Haruna Nagai
+81-(0)3-6748-2111	+1-212-833-6722	+44-(0)19-3281-6000

IR home page: http://www.sony.net/IR/

Presentation slides: http://www.sony.net/SonyInfo/IR/financial/fr/15q3_sonypre.pdf

(Unaudited)
Consolidated Financial Statements
Consolidated Balance Sheets
	(Millions of yen, millions of U.S. dollars)
	March 31			December 31			Change from		December 31
ASSETS	2015			2015			March 31, 2015		2015
Current assets:
Cash and cash equivalents	¥	949,413		¥	1,090,637		¥	+141,224	$	9,089
Marketable securities		936,731			957,809			+21,078		7,982
Notes and accounts receivable, trade		986,500			1,318,825			+332,325		10,990
Allowance for doubtful accounts and sales returns		(86,598	)		(107,848	)		-21,250		(899	)
Inventories		665,432			741,727			+76,295		6,181
Other receivables		231,947			255,882			+23,935		2,132
Deferred income taxes		47,788			52,061			+4,273		434
Prepaid expenses and other current assets		466,688			531,525			+64,837		4,429
Total current assets		4,197,901			4,840,618			+642,717		40,338

Film costs		305,232			357,635			+52,403		2,980

Investments and advances:
Affiliated companies		171,063			167,334			-3,729		1,394
Securities investments and other		8,360,290			8,806,908			+446,618		73,391
		8,531,353			8,974,242			+442,889		74,785

Property, plant and equipment:
Land		123,629			122,619			-1,010		1,022
Buildings		679,125			653,706			-25,419		5,448
Machinery and equipment		1,764,241			1,809,552			+45,311		15,079
Construction in progress		35,786			85,357			+49,571		711
		2,602,781			2,671,234			+68,453		22,260
Less-Accumulated depreciation		1,863,496			1,847,339			-16,157		15,394
		739,285			823,895			+84,610		6,866

Other assets:
Intangibles, net		642,361			631,990			-10,371		5,267
Goodwill		561,255			612,614			+51,359		5,105
Deferred insurance acquisition costs		520,571			538,981			+18,410		4,492
Deferred income taxes		89,637			78,567			-11,070		655
Other		246,736			248,181			+1,445		2,068
		2,060,560			2,110,333			+49,773		17,587
Total assets	¥	15,834,331		¥	17,106,723		¥	+1,272,392	$	142,556

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	62,008		¥	211,280		¥	+149,272	$	1,761
Current portion of long-term debt		159,517			154,300			-5,217		1,286
Notes and accounts payable, trade		622,215			703,912			+81,697		5,866
Accounts payable, other and accrued expenses		1,374,099			1,463,292			+89,193		12,194
Accrued income and other taxes		98,414			147,656			+49,242		1,230
Deposits from customers in the banking business		1,872,965			1,861,127			-11,838		15,509
Other		556,372			555,566			-806		4,630
Total current liabilities		4,745,590			5,097,133			+351,543		42,476

Long-term debt		712,087			734,265			+22,178		6,119
Accrued pension and severance costs		298,753			294,574			-4,179		2,455
Deferred income taxes		445,876			437,146			-8,730		3,643
Future insurance policy benefits and other		4,122,372			4,388,208			+265,836		36,568
Policyholders’ account in the life insurance business		2,259,514			2,413,031			+153,517		20,109
Other		316,422			313,183			-3,239		2,610
Total liabilities		12,900,614			13,677,540			+776,926		113,980

Redeemable noncontrolling interest		5,248			7,035			+1,787		59

Equity:
Sony Corporation’s stockholders’ equity:
Common stock		707,038			858,768			+151,730		7,156
Additional paid-in capital		1,185,777			1,324,964			+139,187		11,041
Retained earnings		813,765			1,037,280			+223,515		8,644
Accumulated other comprehensive income		(385,283	)		(437,250	)		-51,967		(3,643	)
Treasury stock, at cost		(4,220	)		(4,244	)		-24		(35	)
		2,317,077			2,779,518			+462,441		23,163

Noncontrolling interests		611,392			642,630			+31,238		5,354
Total equity		2,928,469			3,422,148			+493,679		28,517
Total liabilities and equity	¥	15,834,331		¥	17,106,723		¥	+1,272,392	$	142,556

F-1

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
	Three months ended December 31
	2014			2015			Change from 2014			2015
Sales and operating revenue:
Net sales	¥	2,239,485		¥	2,238,674					$	18,656
Financial services revenue		303,211			320,368						2,670
Other operating revenue		24,053			21,770						181
		2,566,749			2,580,812			+0.5	%		21,507

Costs and expenses:
Cost of sales		1,659,261			1,623,410						13,528
Selling, general and administrative		473,282			461,418						3,845
Financial services expenses		251,375			267,365						2,228
Other operating expense, net		608			28,253						236
		2,384,526			2,380,446			-0.2			19,837

Equity in net income (loss) of affiliated companies		(128	)		1,779			–			15

Operating income		182,095			202,145			+11.0			1,685

Other income:
Interest and dividends		3,408			2,739						23
Gain on sale of securities investments, net		1,042			219						2
Other		10			355						3
		4,460			3,313			-25.7			28

Other expenses:
Interest		5,942			8,346						70
Foreign exchange loss, net		10,607			1,954						16
Other		2,178			1,878						16
		18,727			12,178			-35.0			102

Income before income taxes		167,828			193,280			+15.2			1,611

Income taxes		56,162			55,676						464

Net income		111,666			137,604			+23.2			1,147

Less - Net income attributable to noncontrolling interests		21,695			17,470						146

Net income attributable to Sony Corporation’s stockholders	¥	89,971		¥	120,134			+33.5	%	$	1,001

Per share data:
Net income attributable to Sony Corporation’s stockholders
— Basic	¥	78.12		¥	95.25			+21.9	%	$	0.79
— Diluted		76.96			93.33			+21.3			0.78


Consolidated Statements of Comprehensive Income
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
	2014			2015			Change from 2014			2015

Net income	¥	111,666		¥	137,604			+23.2	%	$	1,147

Other comprehensive income, net of tax –
Unrealized gains on securities		34,324			23,002						192
Unrealized gains on derivative instruments	–				3,855						32
Pension liability adjustment		(752	)		459						4
Foreign currency translation adjustments		75,051			(10,338	)					(87	)

Total comprehensive income		220,289			154,582			-29.8			1,288

Less - Comprehensive income attributable to noncontrolling interests		33,754			20,676						172

Comprehensive income attributable to Sony Corporation’s stockholders	¥	186,535		¥	133,906			-28.2	%	$	1,116

F-2

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
	Nine months ended December 31
	2014			2015			Change from 2014			2015
Sales and operating revenue:
Net sales	¥	5,385,450		¥	5,405,599					$	45,047
Financial services revenue		817,153			807,092						6,726
Other operating revenue		75,565			68,920						574
		6,278,168			6,281,611			+0.1	%		52,347

Costs and expenses:
Cost of sales		3,978,983			3,985,905						33,216
Selling, general and administrative		1,302,932			1,258,448						10,487
Financial services expenses		673,884			666,479						5,554
Other operating (income) expense, net		159,750			(13,146	)					(110	)
		6,115,549			5,897,686			-3.6			49,147

Equity in net income of affiliated companies		3,702			3,145			-15.0			26

Operating income		166,321			387,070			+132.7			3,226

Other income:
Interest and dividends		9,160			9,055						75
Gain on sale of securities investments, net		8,628			51,796						432
Other		2,092			1,541						13
		19,880			62,392			+213.8			520

Other expenses:
Interest		18,401			19,321						161
Foreign exchange loss, net		15,175			20,302						169
Other		6,375			5,655						48
		39,951			45,278			+13.3			378

Income before income taxes		146,250			404,184			+176.4			3,368

Income taxes		112,286			119,354						994

Net income		33,964			284,830			+738.6			2,374

Less - Net income attributable to noncontrolling interests		53,154			48,702						406

Net income (loss) attributable to Sony Corporation’s stockholders	¥	(19,190	)	¥	236,128		–		%	$	1,968

Per share data:
Net income (loss) attributable to Sony Corporation’s stockholders
— Basic	¥	(17.50	)	¥	191.98		–		%	$	1.60
— Diluted		(17.50	)		189.17		–				1.58


Consolidated Statements of Comprehensive Income
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2014			2015			Change from 2014			2015

Net income	¥	33,964		¥	284,830			+738.6	%	$	2,374

Other comprehensive income, net of tax –
Unrealized gains (losses) on securities		49,390			(34,864	)					(290	)
Unrealized gains on derivative instruments	–				2,114						18
Pension liability adjustment		(2	)		1,366						11
Foreign currency translation adjustments		105,768			(22,239	)					(185	)

Total comprehensive income		189,120			231,207			+22.3			1,928

Less - Comprehensive income attributable to noncontrolling interests		72,136			47,046						393

Comprehensive income attributable to Sony Corporation’s stockholders	¥	116,984		¥	184,161			+57.4	%	$	1,535

F-3

Supplemental equity and comprehensive income information
	(Millions of yen, millions of U.S. dollars)
		Sony Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2014		¥	2,258,137		¥	525,004		¥	2,783,141
Exercise of stock acquisition rights			703		–				703
Conversion of zero coupon convertible bonds			107,660		–				107,660
Stock based compensation			845		–				845

Comprehensive income:
Net income (loss)			(19,190	)		53,154			33,964
Other comprehensive income, net of tax –
Unrealized gains on securities			33,778			15,612			49,390
Pension liability adjustment			44			(46	)		(2	)
Foreign currency translation adjustments			102,352			3,416			105,768
Total comprehensive income			116,984			72,136			189,120

Dividends declared		–				(13,075	)		(13,075	)
Transactions with noncontrolling interests shareholders and other			(2,951	)		8,713			5,762
Balance at December 31, 2014		¥	2,481,378		¥	592,778		¥	3,074,156

Balance at March 31, 2015		¥	2,317,077		¥	611,392		¥	2,928,469
Issuance of new shares			301,708		–				301,708
Exercise of stock acquisition rights			1,752		–				1,752
Stock based compensation			977		–				977

Comprehensive income:
Net income			236,128			48,702			284,830
Other comprehensive income, net of tax –
Unrealized losses on securities			(33,853	)		(1,011	)		(34,864	)
Unrealized gains on derivative instruments			2,114		–				2,114
Pension liability adjustment			1,361			5			1,366
Foreign currency translation adjustments			(21,589	)		(650	)		(22,239	)
Total comprehensive income			184,161			47,046			231,207

Dividends declared			(12,612	)		(19,947	)		(32,559	)
Transactions with noncontrolling interests shareholders and other			(13,545	)		4,139			(9,406	)
Balance at December 31, 2015		¥	2,779,518		¥	642,630		¥	3,422,148

On July 21, 2015, Sony issued 87,200,000 new shares of common stock by way of a Japanese public offering and an international offering. In addition, on August 18, 2015, Sony issued 4,800,000 new shares of common stock by way of third-party allotment in connection with secondary offering of shares to cover over-allotments.


		Sony Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2015		$	19,310		$	5,095		$	24,405
Issuance of new shares			2,514		–				2,514
Exercise of stock acquisition rights			15		–				15
Stock based compensation			8		–				8

Comprehensive income:
Net income			1,968			406			2,374
Other comprehensive income, net of tax –
Unrealized losses on securities			(282	)		(8	)		(290	)
Unrealized gains on derivative instruments			18		–				18
Pension liability adjustment			11			0			11
Foreign currency translation adjustments			(180	)		(5	)		(185	)
Total comprehensive income			1,535			393			1,928

Dividends declared			(106	)		(166	)		(272	)
Transactions with noncontrolling interests shareholders and other			(113	)		32			(81	)
Balance at December 31, 2015		$	23,163		$	5,354		$	28,517

F-4

Consolidated Statements of Cash Flows
	(Millions of yen, millions of U.S. dollars)
		Nine months ended December 31
		2014			2015			2015
Cash flows from operating activities:
Net income		¥	33,964		¥	284,830		$	2,374
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including amortization of deferred insurance acquisition costs			251,080			275,130			2,293
Amortization of film costs			190,892			200,643			1,672
Accrual for pension and severance costs, less payments			(7,694	)		(6,667	)		(56	)
Other operating (income) expense, net			159,750			(13,146	)		(110	)
Gain on sale or devaluation of securities investments, net			(8,193	)		(51,546	)		(430	)
Gain on revaluation of marketable securities held in the financial services business for trading purposes, net			(88,299	)		(4,347	)		(36	)
(Gain) loss on revaluation or impairment of securities investments held in the financial services business, net			(2,363	)		2,586			22
Deferred income taxes			16,585			12,543			105
Equity in net income of affiliated companies, net of dividends			1,633			3,816			32
Changes in assets and liabilities:
Increase in notes and accounts receivable, trade			(318,401	)		(310,954	)		(2,591	)
(Increase) decrease in inventories			20,366			(91,742	)		(765	)
Increase in film costs			(205,190	)		(252,998	)		(2,108	)
Increase in notes and accounts payable, trade			34,943			85,718			714
Increase in accrued income and other taxes			46,113			43,932			366
Increase in future insurance policy benefits and other			355,114			312,040			2,600
Increase in deferred insurance acquisition costs			(58,352	)		(67,354	)		(561	)
Increase in marketable securities held in the financial services business for trading purposes			(40,051	)		(69,941	)		(583	)
Increase in other current assets			(33,385	)		(57,444	)		(479	)
Increase in other current liabilities			124,037			9,931			83
Other			(89,617	)		16,481			138
Net cash provided by operating activities			382,932			321,511			2,680

Cash flows from investing activities:
Payments for purchases of fixed assets			(145,813	)		(254,272	)		(2,119	)
Proceeds from sales of fixed assets			31,631			18,369			153
Payments for investments and advances by financial services business			(678,116	)		(942,226	)		(7,852	)
Payments for investments and advances (other than financial services business)			(13,951	)		(18,784	)		(157	)
Proceeds from sales or return of investments and collections of advances by financial services business			417,799			465,525			3,879
Proceeds from sales or return of investments and collections of advances (other than financial services business)			37,096			79,754			665
Proceeds from sales of businesses	–					17,790			148
Other			(12,436	)		(35,958	)		(299	)
Net cash used in investing activities			(363,790	)		(669,802	)		(5,582	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt			15,203			18,772			156
Payments of long-term debt			(243,652	)		(137,743	)		(1,148	)
Increase in short-term borrowings, net			43,353			151,485			1,262
Increase in deposits from customers in the financial services business, net			30,605			91,113			759
Proceeds from issuance of convertible bonds	–					120,000			1,000
Proceeds from issuance of new shares	–					301,708			2,514
Dividends paid			(13,106	)		(12,766	)		(106	)
Other			(16,978	)		(34,819	)		(289	)
Net cash provided by (used in) financing activities			(184,575	)		497,750			4,148

Effect of exchange rate changes on cash and cash equivalents			52,465			(8,235	)		(69	)

Net increase (decrease) in cash and cash equivalents			(112,968	)		141,224			1,177
Cash and cash equivalents at beginning of the fiscal year			1,046,466			949,413			7,912

Cash and cash equivalents at end of the period		¥	933,498		¥	1,090,637		$	9,089

F-5

Business Segment Information
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue	2014			2015				Change			2015
Mobile Communications
Customers	¥	450,600		¥	382,262				-15.2	%	$	3,186
Intersegment		258			2,252							18
Total		450,858			384,514				-14.7			3,204

Game & Network Services
Customers		499,242			565,220				+13.2			4,710
Intersegment		32,295			21,868							182
Total		531,537			587,088				+10.5			4,892

Imaging Products & Solutions
Customers		201,319			190,112				-5.6			1,584
Intersegment		612			1,778							15
Total		201,931			191,890				-5.0			1,599

Home Entertainment & Sound
Customers		419,682			400,564				-4.6			3,338
Intersegment		565			1,428							12
Total		420,247			401,992				-4.3			3,350

Devices
Customers		224,756			207,867				-7.5			1,732
Intersegment		61,188			42,008							350
Total		285,944			249,875				-12.6			2,082

Pictures
Customers		206,470			259,800				+25.8			2,165
Intersegment		110			2,319							19
Total		206,580			262,119				+26.9			2,184

Music
Customers		162,810			176,954				+8.7			1,475
Intersegment		4,715			4,280							35
Total		167,525			181,234				+8.2			1,510

Financial Services
Customers		303,211			320,368				+5.7			2,670
Intersegment		1,715			1,675							14
Total		304,926			322,043				+5.6			2,684

All Other
Customers		91,598			71,564				-21.9			596
Intersegment		25,997			25,234							211
Total		117,595			96,798				-17.7			807

Corporate and elimination		(120,394	)		(96,741	)			–			(805	)
Consolidated total	¥	2,566,749		¥	2,580,812				+0.5	%	$	21,507

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other. Devices intersegment amounts primarily consist of transactions with the Mobile Communications (“MC”) segment, the G&NS segment and the Imaging Products & Solutions (“IP&S”) segment. All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment. Corporate and elimination includes certain brand and patent royalty income.


	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Operating income (loss)	2014			2015				Change			2015
Mobile Communications	¥	10,356		¥	24,148				+133.2	%	$	201
Game & Network Services		27,608			40,168				+45.5			335
Imaging Products & Solutions		19,660			23,688				+20.5			197
Home Entertainment & Sound		25,993			31,151				+19.8			260
Devices		53,833			(11,672	)	–					(97	)
Pictures		6,219			20,358				+227.4			170
Music		25,923			27,407				+5.7			228
Financial Services		50,850			52,220				+2.7			435
All Other		(12,576	)		5,689		–					47
Total		207,866			213,157				+2.5			1,776

Corporate and elimination		(25,771	)		(11,012	)	–					(91	)
Consolidated total	¥	182,095		¥	202,145				+11.0	%	$	1,685

The 2014 segment disclosure above has been reclassified to reflect the change in the business segment classification discussed in Note 5. 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, restructuring costs related to the reduction in scale of sales companies following the decision to exit from the PC business, 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. Within the Home Entertainment & Sound (“HE&S”) segment, the operating income of Televisions, which primarily consists of LCD televisions, for the three months ended December 31, 2014 and 2015 was 9,256 million yen and 15,853 million yen, respectively. The operating income of Televisions excludes restructuring charges which are included in the overall segment results and are not allocated to product categories.

F-6

Business Segment Information
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sales and operating revenue	2014			2015				Change			2015
Mobile Communications
Customers	¥	1,114,554		¥	940,077				-15.7	%	$	7,834
Intersegment		750			4,186							35
Total		1,115,304			944,263				-15.3			7,869

Game & Network Services
Customers		1,016,364			1,172,200				+15.3			9,768
Intersegment		82,182			64,159							535
Total		1,098,546			1,236,359				+12.5			10,303

Imaging Products & Solutions
Customers		543,996			545,948				+0.4			4,550
Intersegment		2,534			4,860							40
Total		546,530			550,808				+0.8			4,590

Home Entertainment & Sound
Customers		1,001,595			941,252				-6.0			7,844
Intersegment		2,054			2,954							24
Total		1,003,649			944,206				-5.9			7,868

Devices
Customers		535,337			604,853				+13.0			5,040
Intersegment		167,107			141,022							1,176
Total		702,444			745,875				+6.2			6,216

Pictures
Customers		583,043			614,806				+5.4			5,123
Intersegment		490			2,604							22
Total		583,533			617,410				+5.8			5,145

Music
Customers		394,387			439,013				+11.3			3,658
Intersegment		13,794			11,083							93
Total		408,181			450,096				+10.3			3,751

Financial Services
Customers		817,153			807,092				-1.2			6,726
Intersegment		4,316			5,069							42
Total		821,469			812,161				-1.1			6,768

All Other
Customers		237,903			191,583				-19.5			1,597
Intersegment		67,750			67,479							562
Total		305,653			259,062				-15.2			2,159

Corporate and elimination		(307,141	)		(278,629	)			–			(2,322	)
Consolidated total	¥	6,278,168		¥	6,281,611				+0.1	%	$	52,347

The G&NS intersegment amounts primarily consist of transactions with All Other. Devices intersegment amounts primarily consist of transactions with the MC segment, the G&NS segment and the IP&S segment. All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment. Corporate and elimination includes certain brand and patent royalty income.


	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Operating income (loss)	2014			2015				Change			2015
Mobile Communications	¥	(161,841	)	¥	(19,377	)	–			%	$	(161	)
Game & Network Services		53,717			83,547				+55.5			696
Imaging Products & Solutions		51,379			65,678				+27.8			547
Home Entertainment & Sound		43,892			57,837				+31.8			482
Devices		93,668			51,360				-45.2			428
Pictures		13,009			(13,795	)	–					(115	)
Music		49,720			73,747				+48.3			615
Financial Services		142,308			139,367				-2.1			1,161
All Other		(46,523	)		6,320		–					53
Total		239,329			444,684				+85.8			3,706

Corporate and elimination		(73,008	)		(57,614	)	–					(480	)
Consolidated total	¥	166,321		¥	387,070				+132.7	%	$	3,226

The 2014 segment disclosure above has been reclassified to reflect the change in the business segment classification discussed in Note 5. 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, restructuring costs related to the reduction in scale of sales companies following the decision to exit from the PC business, 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. Within the HE&S segment, the operating income of Televisions, which primarily consists of LCD televisions, for the nine months ended December 31, 2014 and 2015 was 22,094 million yen and 32,561 million yen, respectively. The operating income of Televisions excludes restructuring charges which are included in the overall segment results and are not allocated to product categories.

F-7

Sales to Customers by Product Category
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue (to external customers)	2014		2015		Change			2015

Mobile Communications	¥	450,600	¥	382,262		-15.2	%	$	3,186

Game & Network Services
Hardware		321,744		326,589		+1.5			2,722
Network		102,025		152,067		+49.0			1,267
Other		75,473		86,564		+14.7			721
Total		499,242		565,220		+13.2			4,710

Imaging Products & Solutions
Digital Imaging Products		126,361		119,397		-5.5			995
Professional Solutions		70,658		64,943		-8.1			541
Other		4,300		5,772		+34.2			48
Total		201,319		190,112		-5.6			1,584

Home Entertainment & Sound
Televisions		280,572		278,470		-0.7			2,321
Audio and Video		138,013		121,975		-11.6			1,016
Other		1,097		119		-89.2			1
Total		419,682		400,564		-4.6			3,338

Devices
Semiconductors		162,884		155,881		-4.3			1,299
Components		59,415		49,040		-17.5			409
Other		2,457		2,946		+19.9			24
Total		224,756		207,867		-7.5			1,732

Pictures
Motion Pictures		100,723		149,140		+48.1			1,243
Television Productions		51,831		54,863		+5.8			457
Media Networks		53,916		55,797		+3.5			465
Total		206,470		259,800		+25.8			2,165

Music
Recorded Music		122,211		131,637		+7.7			1,097
Music Publishing		16,675		16,721		+0.3			139
Visual Media and Platform		23,924		28,596		+19.5			239
Total		162,810		176,954		+8.7			1,475

Financial Services		303,211		320,368		+5.7			2,670
All Other		91,598		71,564		-21.9			596
Corporate		7,061		6,101		-13.6			51
Consolidated total	¥	2,566,749	¥	2,580,812		+0.5	%	$	21,507


The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page 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 this table is useful to investors in understanding sales by product category. Sony has realigned its product category configuration from the first and third quarters of the fiscal year ending March 31, 2016. 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, Hardware includes home and portable game consoles; Network includes network services relating to game, video, and music content provided by Sony Network Entertainment International LLC; Other includes packaged software and peripheral devices. In the IP&S segment, Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products; Other includes operating revenues and flow cytometers. In the HE&S segment, Televisions includes LCD televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones, and memory-based portable audio devices. In the Devices segment, Semiconductors includes image sensors and camera modules; Components includes batteries and recording media. In the Pictures segment, Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks. 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 various service offerings for music and visual products and the production and distribution of animation titles.

F-8

Sales to Customers by Product Category
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sales and operating revenue (to external customers)	2014		2015		Change			2015

Mobile Communications	¥	1,114,554	¥	940,077		-15.7	%	$	7,834

Game & Network Services
Hardware		619,306		624,488		+0.8			5,204
Network		242,401		369,402		+52.4			3,078
Other		154,657		178,310		+15.3			1,486
Total		1,016,364		1,172,200		+15.3			9,768

Imaging Products & Solutions
Digital Imaging Products		342,061		339,397		-0.8			2,828
Professional Solutions		191,196		189,474		-0.9			1,579
Other		10,739		17,077		+59.0			143
Total		543,996		545,948		+0.4			4,550

Home Entertainment & Sound
Televisions		685,303		650,398		-5.1			5,420
Audio and Video		314,450		288,448		-8.3			2,404
Other		1,842		2,406		+30.6			20
Total		1,001,595		941,252		-6.0			7,844

Devices
Semiconductors		365,927		445,806		+21.8			3,715
Components		163,741		151,411		-7.5			1,262
Other		5,669		7,636		+34.7			63
Total		535,337		604,853		+13.0			5,040

Pictures
Motion Pictures		302,688		298,467		-1.4			2,487
Television Productions		138,452		148,171		+7.0			1,235
Media Networks		141,903		168,168		+18.5			1,401
Total		583,043		614,806		+5.4			5,123

Music
Recorded Music		282,035		311,532		+10.5			2,596
Music Publishing		49,329		52,263		+5.9			436
Visual Media and Platform		63,023		75,218		+19.4			626
Total		394,387		439,013		+11.3			3,658

Financial Services		817,153		807,092		-1.2			6,726
All Other		237,903		191,583		-19.5			1,597
Corporate		33,836		24,787		-26.7			207
Consolidated total	¥	6,278,168	¥	6,281,611		+0.1	%	$	52,347

The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-7. 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 this table is useful to investors in understanding sales by product category.

Sony has realigned its product category configuration from the first and third quarters of the fiscal year ending March 31, 2016. 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, Hardware includes home and portable game consoles; Network includes network services relating to game, video, and music content provided by Sony Network Entertainment International LLC; Other includes packaged software and peripheral devices. In the IP&S segment, Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products; Other includes operating revenues and flow cytometers. In the HE&S segment, Televisions includes LCD televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones, and memory-based portable audio devices. In the Devices segment, Semiconductors includes image sensors and camera modules; Components includes batteries and recording media. In the Pictures segment, Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks. 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 various service offerings for music and visual products and the production and distribution of animation titles.

F-9

Other Items
	(Millions of yen, millions of U.S. dollars)
		Three months ended December 31
Depreciation and amortization		2014		2015		Change			2015
Mobile Communications		¥	6,072	¥	6,049		-0.4	%	$	50
Game & Network Services			4,740		5,603		+18.2			47
Imaging Products & Solutions			7,449		6,757		-9.3			56
Home Entertainment & Sound			6,356		5,428		-14.6			45
Devices			21,967		27,836		+26.7			232
Pictures			5,241		5,922		+13.0			49
Music			3,652		4,650		+27.3			39
Financial Services, including deferred insurance acquisition costs			13,770		16,005		+16.2			133
All Other			2,414		4,564		+89.1			39
Total			71,661		82,814		+15.6			690

Corporate			12,672		8,261		-34.8			69
Consolidated total		¥	84,333	¥	91,075		+8.0	%	$	759

(Millions of yen, millions of U.S. dollars)

Three months ended December 31, 2014

Restructuring charges and associated depreciation

Total net

restructuring

charges

Depreciation

associated with

restructured

assets

Total

Mobile Communications		¥	1,768			¥	22			¥	1,790
Game & Network Services			12		–						12
Imaging Products & Solutions			315		–						315
Home Entertainment & Sound			3		–						3
Devices			208				12				220
Pictures			166		–						166
Music			1,317		–						1,317
Financial Services	–				–				–
All Other and Corporate			5,238				(13	)			5,225
Consolidated total		¥	9,027			¥	21			¥	9,048


		Three months ended December 31, 2015
Restructuring charges and associated depreciation		Total net restructuring charges				Depreciation associated with restructured assets				Total

Mobile Communications		¥	2,530			¥	106			¥	2,636
Game & Network Services			120		–						120
Imaging Products & Solutions			4		–						4
Home Entertainment & Sound			555		–						555
Devices			26		–						26
Pictures			(169	)	–						(169	)
Music			104		–						104
Financial Services	–				–				–
All Other and Corporate			2,397				409				2,806
Consolidated total		¥	5,567			¥	515			¥	6,082

Depreciation associated with restructured assets as used in the context of the disclosures regarding restructuring activities refers to the increase in depreciation expense caused by revising the useful life and the salvage value of depreciable fixed assets to coincide with the earlier end of production under an approved restructuring plan. Any impairment of the assets is recognized immediately in the period it is identified.


		Three months ended December 31, 2015
Restructuring charges and associated depreciation		Total net restructuring charges				Depreciation associated with restructured assets				Total

Mobile Communications		$	22			$	0			$	22
Game & Network Services			1		–						1
Imaging Products & Solutions			0		–						0
Home Entertainment & Sound			4		–						4
Devices			0		–						0
Pictures			(1	)	–						(1	)
Music			1		–						1
Financial Services	–				–				–
All Other and Corporate			20				4				24
Consolidated total		$	47			$	4			$	51

F-10

Other Items
	(Millions of yen, millions of U.S. dollars)
		Nine months ended December 31
Depreciation and amortization		2014			2015			Change			2015
Mobile Communications		¥	17,972		¥	18,256			+1.6	%	$	152
Game & Network Services			13,166			14,750			+12.0			123
Imaging Products & Solutions			23,091			21,155			-8.4			176
Home Entertainment & Sound			18,599			16,815			-9.6			140
Devices			64,569			78,906			+22.2			658
Pictures			14,497			16,645			+14.8			139
Music			10,915			13,455			+23.3			112
Financial Services, including deferred insurance acquisition costs			42,991			56,570			+31.6			471
All Other			7,207			7,556			+4.8			63
Total			213,007			244,108			+14.6			2,034

Corporate			38,073			31,022			-18.5			259
Consolidated total		¥	251,080		¥	275,130			+9.6	%	$	2,293

		(Millions of yen, millions of U.S. dollars)
		Nine months ended December 31, 2014
Restructuring charges and associated depreciation		Total net restructuring charges			Depreciation associated with restructured assets			Total

Mobile Communications		¥	1,825		¥	22		¥	1,847
Game & Network Services			76	–					76
Imaging Products & Solutions			515	–					515
Home Entertainment & Sound			580	–					580
Devices			3,569			16			3,585
Pictures			182	–					182
Music			1,377	–					1,377
Financial Services	–			–			–
All Other and Corporate			24,916			656			25,572
Consolidated total		¥	33,040		¥	694		¥	33,734

		Nine months ended December 31, 2015
Restructuring charges and associated depreciation		Total net restructuring charges			Depreciation associated with restructured assets			Total

Mobile Communications		¥	14,300		¥	646		¥	14,946
Game & Network Services			135	–					135
Imaging Products & Solutions			64	–					64
Home Entertainment & Sound			503	–					503
Devices			30	–					30
Pictures			1	–					1
Music			439	–					439
Financial Services	–			–			–
All Other and Corporate			4,749			951			5,700
Consolidated total		¥	20,221		¥	1,597		¥	21,818

Depreciation associated with restructured assets as used in the context of the disclosures regarding restructuring activities refers to the increase in depreciation expense caused by revising the useful life and the salvage value of depreciable fixed assets to coincide with the earlier end of production under an approved restructuring plan. Any impairment of the assets is recognized immediately in the period it is identified.

		Nine months ended December 31, 2015
Restructuring charges and associated depreciation		Total net restructuring charges			Depreciation associated with restructured assets			Total

Mobile Communications		$	120		$	5		$	125
Game & Network Services			1	–					1
Imaging Products & Solutions			1	–					1
Home Entertainment & Sound			4	–					4
Devices			0	–					0
Pictures			0	–					0
Music			4	–					4
Financial Services	–			–			–
All Other and Corporate			39			8			47
Consolidated total		$	169		$	13		$	182

F-11

Geographic Information
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue (to external customers)	2014		2015		Change			2015

Japan	¥	654,936	¥	689,084		+5.2	%	$	5,742
United States		496,027		586,469		+18.2			4,887
Europe		668,333		665,849		-0.4			5,549
China		155,839		150,074		-3.7			1,251
Asia-Pacific		308,499		280,458		-9.1			2,337
Other Areas		283,115		208,878		-26.2			1,741
Total	¥	2,566,749	¥	2,580,812		+0.5	%	$	21,507

	Nine months ended December 31
Sales and operating revenue (to external customers)	2014		2015		Change			2015

Japan	¥	1,665,860	¥	1,746,196		+4.8	%	$	14,552
United States		1,129,151		1,332,480		+18.0			11,104
Europe		1,521,924		1,468,733		-3.5			12,239
China		433,420		431,370		-0.5			3,595
Asia-Pacific		812,768		757,067		-6.9			6,309
Other Areas		715,045		545,765		-23.7			4,548
Total	¥	6,278,168	¥	6,281,611		+0.1	%	$	52,347

Geographic Information shows sales and operating revenue recognized by location of customers.
Major countries and areas in each geographic segment excluding Japan, United States and China are as follows:
(1) Europe: United Kingdom, France, Germany, Russia, Spain and Sweden
(2) Asia-Pacific: India, South Korea and Oceania
(3) Other Areas: The Middle East/Africa, Brazil, Mexico and Canada

F-12

Condensed Financial Services Financial Statements

The results of the Financial Services segment are included in Sony’s consolidated 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, millions of U.S. dollars)
Financial Services		March 31		December 31
		2015		2015		2015
ASSETS
Current assets:
Cash and cash equivalents		¥	207,527	¥	245,673	$	2,047
Marketable securities			933,424		954,598		7,955
Other			147,663		182,737		1,523
			1,288,614		1,383,008		11,525

Investments and advances			8,217,715		8,730,190		72,752
Property, plant and equipment			17,305		18,343		153
Other assets:
Deferred insurance acquisition costs			520,571		538,981		4,492
Other			45,645		50,744		422
			566,216		589,725		4,914
Total assets		¥	10,089,850	¥	10,721,266	$	89,344

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings		¥	6,351	¥	154,457	$	1,287
Deposits from customers in the banking business			1,872,965		1,861,127		15,509
Other			199,098		206,432		1,721
			2,078,414		2,222,016		18,517

Long-term debt			44,460		34,679		289
Future insurance policy benefits and other			4,122,372		4,388,208		36,568
Policyholders’ account in the life insurance business			2,259,514		2,413,031		20,109
Other			335,964		336,335		2,803
Total liabilities			8,840,724		9,394,269		78,286

Equity:
Stockholders’ equity of Financial Services			1,247,840		1,325,679		11,047
Noncontrolling interests			1,286		1,318		11
Total equity			1,249,126		1,326,997		11,058
Total liabilities and equity		¥	10,089,850	¥	10,721,266	$	89,344

F-13

	(Millions of yen, millions of U.S. dollars)
Sony without Financial Services	March 31		December 31
	2015		2015		2015
ASSETS
Current assets:
Cash and cash equivalents	¥	741,886	¥	844,964	$	7,042
Marketable securities		3,307		3,211		27
Notes and accounts receivable, trade		893,847		1,202,659		10,022
Other		1,272,562		1,408,765		11,739
		2,911,602		3,459,599		28,830

Film costs		305,232		357,635		2,980
Investments and advances		395,189		324,499		2,704
Investments in Financial Services, at cost		111,476		111,476		929
Property, plant and equipment		720,694		804,266		6,702
Other assets		1,497,805		1,524,070		12,701
Total assets	¥	5,941,998	¥	6,581,545	$	54,846

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	215,175	¥	211,123	$	1,759
Notes and accounts payable, trade		622,215		703,912		5,866
Other		1,832,085		1,962,071		16,351
		2,669,475		2,877,106		23,976

Long-term debt		671,104		703,049		5,859
Accrued pension and severance costs		274,220		268,792		2,240
Other		478,704		466,508		3,887
Total liabilities		4,093,503		4,315,455		35,962

Redeemable noncontrolling interest		5,248		7,035		59

Equity:
Stockholders’ equity of Sony without Financial Services		1,733,233		2,148,970		17,908
Noncontrolling interests		110,014		110,085		917
Total equity		1,843,247		2,259,055		18,825
Total liabilities and equity	¥	5,941,998	¥	6,581,545	$	54,846

	(Millions of yen, millions of U.S. dollars)
Consolidated	March 31		December 31
	2015		2015		2015
ASSETS
Current assets:
Cash and cash equivalents	¥	949,413	¥	1,090,637	$	9,089
Marketable securities		936,731		957,809		7,982
Notes and accounts receivable, trade		899,902		1,210,977		10,091
Other		1,411,855		1,581,195		13,176
		4,197,901		4,840,618		40,338

Film costs		305,232		357,635		2,980
Investments and advances		8,531,353		8,974,242		74,785
Property, plant and equipment		739,285		823,895		6,866
Other assets:
Deferred insurance acquisition costs		520,571		538,981		4,492
Other		1,539,989		1,571,352		13,095
		2,060,560		2,110,333		17,587
Total assets	¥	15,834,331	¥	17,106,723	$	142,556

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	221,525	¥	365,580	$	3,047
Notes and accounts payable, trade		622,215		703,912		5,866
Deposits from customers in the banking business		1,872,965		1,861,127		15,509
Other		2,028,885		2,166,514		18,054
		4,745,590		5,097,133		42,476

Long-term debt		712,087		734,265		6,119
Accrued pension and severance costs		298,753		294,574		2,455
Future insurance policy benefits and other		4,122,372		4,388,208		36,568
Policyholders’ account in the life insurance business		2,259,514		2,413,031		20,109
Other		762,298		750,329		6,253
Total liabilities		12,900,614		13,677,540		113,980

Redeemable noncontrolling interest		5,248		7,035		59

Equity:
Sony Corporation’s stockholders’ equity		2,317,077		2,779,518		23,163
Noncontrolling interests		611,392		642,630		5,354
Total equity		2,928,469		3,422,148		28,517
Total liabilities and equity	¥	15,834,331	¥	17,106,723	$	142,556

F-14

Condensed Statements of Income
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Financial Services	2014			2015			Change		2015

Financial services revenue	¥	304,926		¥	322,043		+5.6	%	$	2,684
Financial services expenses		253,099			269,910		+6.6			2,250
Equity in net income (loss) of affiliated companies		(977	)		87		–			1
Operating income		50,850			52,220		+2.7			435
Other income (expenses), net		–			–		–			–
Income before income taxes		50,850			52,220		+2.7			435
Income taxes and other		15,876			15,556		-2.0			129
Net income of Financial Services	¥	34,974		¥	36,664		+4.8	%	$	306


	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sony without Financial Services	2014			2015			Change		2015

Net sales and operating revenue	¥	2,264,469		¥	2,261,213		-0.1	%	$	18,843
Costs and expenses		2,134,072			2,112,980		-1.0			17,608
Equity in net income of affiliated companies		849			1,692		+99.3			14
Operating income		131,246			149,925		+14.2			1,249
Other income (expenses), net		(14,268	)		(8,864	)	–			(73	)
Income before income taxes		116,978			141,061		+20.6			1,176
Income taxes and other		47,992			42,925		-10.6			358
Net income of Sony without Financial Services	¥	68,986		¥	98,136		+42.3	%	$	818


	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Consolidated	2014			2015			Change		2015

Financial services revenue	¥	303,211		¥	320,368		+5.7	%	$	2,670
Net sales and operating revenue		2,263,538			2,260,444		-0.1			18,837
		2,566,749			2,580,812		+0.5			21,507
Costs and expenses		2,384,526			2,380,446		-0.2			19,837
Equity in net income (loss) of affiliated companies		(128	)		1,779		–			15
Operating income		182,095			202,145		+11.0			1,685
Other income (expenses), net		(14,267	)		(8,865	)	–			(74	)
Income before income taxes		167,828			193,280		+15.2			1,611
Income taxes and other		77,857			73,146		-6.1			610
Net income attributable to Sony Corporation’s stockholders	¥	89,971		¥	120,134		+33.5	%	$	1,001

F-15

Condensed Statements of Income
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Financial Services	2014			2015			Change		2015

Financial services revenue	¥	821,469		¥	812,161		-1.1	%	$	6,768
Financial services expenses		678,240			672,421		-0.9			5,604
Equity in net in loss of affiliated companies		(921	)		(373	)	–			(3	)
Operating income		142,308			139,367		-2.1			1,161
Other income (expenses), net		–			–		–			–
Income before income taxes		142,308			139,367		-2.1			1,161
Income taxes and other		44,513			41,615		-6.5			346
Net income of Financial Services	¥	97,795		¥	97,752		-0.0	%	$	815


	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sony without Financial Services	2014			2015			Change		2015

Net sales and operating revenue	¥	5,463,978		¥	5,477,465		+0.2	%	$	45,646
Costs and expenses		5,393,075			5,233,286		-3.0			43,611
Equity in net income of affiliated companies		4,623			3,518		-23.9			29
Operating income		75,526			247,697		+228.0			2,064
Other income (expenses), net		(12,241	)		27,560		–			230
Income before income taxes		63,285			275,257		+334.9			2,294
Income taxes and other		81,809			87,340		+6.8			728
Net income (loss) of Sony without Financial Services	¥	(18,524	)	¥	187,917		–	%	$	1,566


	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Consolidated	2014			2015			Change		2015

Financial services revenue	¥	817,153		¥	807,092		-1.2	%	$	6,726
Net sales and operating revenue		5,461,015			5,474,519		+0.2			45,621
		6,278,168			6,281,611		+0.1			52,347
Costs and expenses		6,115,549			5,897,686		-3.6			49,147
Equity in net income of affiliated companies		3,702			3,145		-15.0			26
Operating income		166,321			387,070		+132.7			3,226
Other income (expenses), net		(20,071	)		17,114		–			142
Income before income taxes		146,250			404,184		+176.4			3,368
Income taxes and other		165,440			168,056		+1.6			1,400
Net income (loss) attributable to Sony Corporation’s stockholders	¥	(19,190	)	¥	236,128		–	%	$	1,968

F-16

Condensed Statements of Cash Flows
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Financial Services	2014			2015			2015

Net cash provided by operating activities	¥	278,246		¥	308,217		$	2,569
Net cash used in investing activities		(317,125	)		(482,110	)		(4,018	)
Net cash provided by financing activities		89,111			212,039			1,767
Net increase in cash and cash equivalents		50,232			38,146			318
Cash and cash equivalents at beginning of the fiscal year		240,332			207,527			1,729
Cash and cash equivalents at end of the period	¥	290,564		¥	245,673		$	2,047


	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sony without Financial Services	2014			2015			2015

Net cash provided by operating activities	¥	112,516		¥	22,645		$	189
Net cash used in investing activities		(46,665	)		(186,589	)		(1,555	)
Net cash provided by (used in) financing activities		(281,516	)		275,257			2,294
Effect of exchange rate changes on cash and cash equivalents		52,465			(8,235	)		(69	)
Net increase (decrease) in cash and cash equivalents		(163,200	)		103,078			859
Cash and cash equivalents at beginning of the fiscal year		806,134			741,886			6,183
Cash and cash equivalents at end of the period	¥	642,934		¥	844,964		$	7,042


	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Consolidated	2014			2015			2015

Net cash provided by operating activities	¥	382,932		¥	321,511		$	2,680
Net cash used in investing activities		(363,790	)		(669,802	)		(5,582	)
Net cash provided by (used in) financing activities		(184,575	)		497,750			4,148
Effect of exchange rate changes on cash and cash equivalents		52,465			(8,235	)		(69	)
Net increase (decrease) in cash and cash equivalents		(112,968	)		141,224			1,177
Cash and cash equivalents at beginning of the fiscal year		1,046,466			949,413			7,912
Cash and cash equivalents at end of the period	¥	933,498		¥	1,090,637		$	9,089

F-17

(Notes)

1.	U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥120 = U.S. $1, the approximate Tokyo foreign exchange market rate as of December 31, 2015.

2.	As of December 31, 2015, Sony had 1,298 consolidated subsidiaries (including variable interest entities) and 102 affiliated companies accounted for under the equity method.

3.	The weighted-average number of outstanding shares used for the computation of earnings per share of common stock is as follows:

Weighted-average number of outstanding shares	(Thousands of shares)
	Three months ended December 31
Net income attributable to Sony Corporation’s stockholders	2014	2015
— Basic	1,151,770	1,261,274
— Diluted	1,168,990	1,287,220

Weighted-average number of outstanding shares	(Thousands of shares)
		Nine months ended December 31
Net income (loss) attributable to Sony Corporation’s stockholders		2014	2015
— Basic		1,096,392		1,229,937
— Diluted		1,096,392		1,248,258

The dilutive effect in the weighted-average number of outstanding shares for the three months ended December 31, 2014 primarily resulted from convertible bonds which were issued in November 2012. All potential shares were excluded as anti-dilutive for the nine months ended December 31, 2014 due to Sony incurring a net loss attributable to Sony Corporation’s stockholders. The dilutive effect in the weighted-average number of outstanding shares for the three and nine months ended December 31, 2015 primarily resulted from convertible bonds which were issued in July 2015.

4.	Recently adopted accounting pronouncements:

Reporting discontinued operations and disclosures of disposals of components of an entity

In April 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance that changes the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations that has, or will have, a major effect on the entity’s operations and financial results should be presented as discontinued operations. Additionally, the revised guidance requires additional disclosures for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. This guidance was effective for Sony as of April 1, 2015. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

Repurchase-to-maturity transactions and repurchase financings

In June 2014, the FASB issued new accounting guidance for the accounting and disclosure of repurchase-to-maturity transactions and repurchase financings. The guidance requires that repurchase-to-maturity transactions be accounted for as secured borrowings, and requires that a transfer of a financial asset and a repurchase agreement executed contemporaneously be accounted for separately. The guidance also requires additional disclosures about certain transferred financial assets accounted for as sales and certain transactions accounted for as secured borrowings. Except for the disclosure for transactions accounted for as secured borrowings, the guidance was effective for Sony as of January 1, 2015. The guidance for disclosure for transactions accounted for as secured borrowings was effective for Sony as of April 1, 2015. The adoption of this guidance did not have a material impact on Sony’s result of operations and financial position.

Sony realigned its business segments for the first quarter of the fiscal year ending March 31, 2016 to reflect modifications to its organizational structure as of April 1, 2015, primarily repositioning certain operations, which were in All Other and the Devices segment. In connection with this realignment, the operations of Sony’s disc manufacturing business in Japan, which were included in All Other are now included in the Music segment and the operations of So-net Corporation and its subsidiaries, which were included in All Other are now included in the MC segment. Certain operations regarding pre-installed automotive audio products which were included in the Devices segment are now included in the HE&S segment. In addition, Sony realigned its business segments for the third quarter of the fiscal year ending March 31, 2016 to reflect a change in the Corporate Executive Officer in charge of the medical business as of October 1, 2015. In connection with this realignment, the medical business, which was included in All Other is now included in the IP&S segment. For further details of current segments and categories, see page F-8 and F-9. In connection with this realignment, the sales and operating revenue and operating income (loss) of each segment for the comparable period have been reclassified to conform to the current presentation.

F-18

Sony estimates the annual effective tax rate ("ETR") derived from a projected annual net income before taxes and calculates the interim period income tax provision based on the year-to-date income tax provision computed by applying the ETR to the year-to-date net income before taxes at the end of each interim period. The income tax provision based on the ETR reflects anticipated income tax credits and net operating loss carryforwards; however, it excludes the income tax provision related to significant unusual or extraordinary transactions. Such income tax provision is separately reported from the provision based on the ETR in the interim period in which it occurs.

7.	Certain reclassifications of the financial statements and accompanying footnotes for the three and nine months ended December 31, 2014 have been made to conform to the presentation for the three and nine months ended December 31, 2015.

For the nine months ended December 31, 2015, Sony recorded an out-of-period adjustment to correct an error in the amount of accruals for certain sales incentives being recorded at a subsidiary. The error began in the fiscal year ended March 31, 2009 and continued until it was identified by Sony during the three months ended December 31, 2015. The adjustment, which related to the HE&S segment, impacted net sales and increased income before income taxes in the consolidated statements of income by 8,447 million yen for the nine months ended December 31, 2015. Sony determined that the adjustment was not material to the consolidated financial statements for the three and nine months ended December 31, 2015 or any prior annual or interim periods.

Other Consolidated Financial Data

	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
	2014			2015			2015
Capital expenditures*	¥	56,937		¥	119,778		$	998
(Additions to property, plant and equipment)		(36,622	)		(89,518	)		(746	)
(Additions to intangible assets)		(20,315	)		(30,260	)		(252	)
Depreciation and amortization expenses**		84,333			91,075			759
(Depreciation expenses for property, plant and equipment)		(40,344	)		(45,613	)		(380	)
(Amortization expenses for intangible assets)		(43,989	)		(45,462	)		(379	)
Research and development expenses		118,295			114,470			954

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2014			2015			2015
Capital expenditures*	¥	169,558		¥	329,380		$	2,745
(Additions to property, plant and equipment)		(112,948	)		(265,583	)		(2,213	)
(Additions to intangible assets)		(56,610	)		(63,797	)		(532	)
Depreciation and amortization expenses**		251,080			275,130			2,293
(Depreciation expenses for property, plant and equipment)		(118,329	)		(131,999	)		(1,100	)
(Amortization expenses for intangible assets)		(132,751	)		(143,131	)		(1,193	)
Research and development expenses		340,301			340,050			2,834

*	Excluding additions for tangible and intangible assets from business combinations.
**	Including amortization expenses for deferred insurance acquisition costs.

F-19

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