EFTA01382642.pdf

8-1/A Table of Contents Depreciation and amortization expense decreased for the six months ended June 30, 2015 compared to the same period in 2014 due to a decrease in the amortization of acquisition related intangible assets. Other operating expenses. net includes restructuring. Refer to note 3 "Restructuring" to our unaudited consolidated financial statements included elsewhere in this prospectus for details regarding restructuring charges and our restructuring program. Pursuant to our recently announced expense management initiative, we are seeking to achieve $200 million in annualized savings by mid-2016. We expect to incur $75 million of restructuring charges of which we incurred $20 million during the six months ended June 30, 2015, related to severance costs. The first half of 2015 did not include any meaningful savings as a result of this program. Interest income (expense) Six mornIt ended June 30, fin mallow 2015 2014 Ferretti Change Interest income S 2 $ 7 (71)% Interest expense (813) (927) (12)% Interest income decreased for the six months ending June 30, 2015 compared to the same period in 2014 due to liquidation of short-temi investments during the first quarter of 2015. Interest expense decreased for the six months ending June 30, 2015 compared to the same period in 2014 due to lower outstanding debt balances as a result of debt extinguishments, lower interest rates as a result of debt exchanges and refinancing, and lower financing fees amortization. Refer to note 5 "Borrowings" to our unaudited consolidated financial statements included elsewhere in this prospectus for additional information. Loss on debt extinguishment We incurred a $3 million loss on the extinguishment of debt during the first half of 2014. Other income (expense) Six months ended June 30, (In minions) 2015 2014 Investment gains $ — $ 89 Derivative financial instruments logs... (16) (4) Divestiltuts. net gains 3 1 Non-operating foreign currency gains (losses) 24 (3) Other income (expense) $ 11 $ 83 Investmeiu gains in the six months ended June 30, 2014 relate to the sale of our 30% minority interest in EFS resulting in a pretax gain of $89 million. Derivativefinancial instruments losses increased for the six months ending June 30, 2015 compared to the same period in 2014 due to the fair value adjustments on our interest rate swaps and cross currency swaps that are not designated as accounting hedges. Non-operatingforeign currency gains and (losses) for the six months ended June 30.2015 and 2014 relate to currency translations on our euro-denominated debt and our intercompany loans. The gain in the six months ended June 30, 2015 was driven by the U.S. dollar strengthening 8% against the euro. 64 httplAvvmsee.gov/Arehivecledgar/datant83980/000119312515334479/d31022dsla.htm[10/14/2015 9:06:38 AM) CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082082 CONFIDENTIAL SONY GM_00228288 EFTA01382642