Sony 2015 Annual Report Download - page 226

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
29. Subsequent events
(1) Kumamoto Earthquake
In April 2016, a series of earthquakes occurred in the Kumamoto region of Japan. Due to these earthquakes,
the operations at Sony Semiconductor Manufacturing Corporation’s Kumamoto Technology Center, which is the
primary manufacturing site for image sensors for digital cameras and security cameras as well as micro-display
devices, have been affected. These earthquakes may have an adverse impact on Sony’s operation of the Devices
and IP&S business segments, primarily. Sony expects a significant impact on its financial position and results of
operations for the fiscal year ending March 31, 2017 due to these earthquakes. Sony is currently evaluating the
amounts to be recognized for the fiscal year ending March 31, 2017, including losses of fixed assets and
inventory, and insurance recoveries.
(2) Termination of the development and manufacturing of certain camera modules
In May 2016, Sony decided to terminate the development and manufacturing of high-functionality camera
modules for external sale, the mass production of which was being prepared at Sony Semiconductor
Manufacturing Corporation’s Kumamoto Technology Center, as a result of a reconsideration of the strategy of
this business from a long-term perspective. Sony expects a significant impact on its consolidated results due to
this termination. Sony is currently evaluating the expenses to be recognized related to this termination for the
fiscal year ending March 31, 2017.
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