$NPPXF

NIPPON TELEGRAPH & TELEPHONE CORP

CIK:0000769594|SEC Filings

Consolidated Statements of Income - JPY (¥) ¥ in Millions	12 Months Ended
Consolidated Statements of Income - JPY (¥) ¥ in Millions	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Operating revenues(Notes 3 and 18):
Fixed voice related services	¥ 1,233,885	¥ 1,329,963	¥ 1,441,383
Mobile voice related services	865,293	837,818	872,062
IP / packet communications services	3,808,972	3,757,846	3,672,157
Sale of telecommunication equipment	806,493	953,022	996,996
System integration	3,041,587	3,063,501	2,691,766
Other	1,634,786	1,598,847	1,420,953
Operating revenues, Total	11,391,016	11,540,997	11,095,317
Operating expenses(Notes 3, 18 and 20):
Cost of services (excluding items shown separately below)	2,487,588	2,458,057	2,434,870
Cost of equipment sold (Note 2) (excluding items shown separately below)	879,725	970,478	948,903
Cost of system integration (excluding items shown separately below)	2,161,007	2,197,506	1,900,319
Depreciation and amortization (Notes 2, 10 and 18)	1,462,235	1,766,325	1,827,998
Impairment losses
Goodwill (Notes 2, 10 and 18)	53,294	4,719	3,464
Other (Notes 2, 7, 10 and 18)	20,558	28,002	38,739
Selling, general and administrative expenses (Note 20)	2,786,820	2,767,761	2,856,458
Operating expenses, Total	9,851,227	10,192,848	10,010,751
Operating income(Note 18)	1,539,789	1,348,149	1,084,566
Other income (expenses):
Interest and amortization of bond discounts and issue costs (Note 2)	(37,761)	(41,670)	(44,016)
Interest income	17,753	17,708	18,398
Other, net (Notes 9, 21 and 22)	7,988	5,072	7,681
Nonoperating income (expense), Total	(12,020)	(18,890)	(17,937)
Income before income taxes and equity in earnings (losses) of affiliated companies	1,527,769	1,329,259	1,066,629
Income tax expense (benefit) (Note 13):
Current	472,711	457,674	364,845
Deferred	(4,341)	(102,849)	32,504
Income tax expense (benefit), Total	468,370	354,825	397,349
Income before equity in earnings (losses) of affiliated companies	1,059,399	974,434	669,280
Equity in earnings (losses) of affiliated companies (Notes 8 and 18)	(21)	5,772	5,889
Net income	1,059,378	980,206	675,169
Less-Net income attributable to noncontrolling interests	259,249	242,468	157,103
Net income attributable to NTT	¥ 800,129	¥ 737,738	¥ 518,066
Per share of common stock (Note 16):
Weighted average number of shares outstanding	2,046,678,144	2,105,782,828	2,187,360,018
Net income attributable to NTT	¥ 390.94	¥ 350.34	¥ 236.85
Cash dividends to be paid to shareholders of record date	¥ 120.00	¥ 110.00	¥ 90.00

Consolidated Statements of Cash Flows - JPY (¥) ¥ in Millions	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	¥ 1,059,378	¥ 980,206	¥ 675,169
Adjustments to reconcile net income to net cash provided by operating activities-
Depreciation and amortization (Notes 2, 10 and 18)	1,462,235	1,766,325	1,827,998
Impairment losses (Notes 7, 10 and 18)	73,852	32,721	42,203
Deferred taxes (Note 13)	(4,341)	(102,849)	32,504
Losses on disposals of property, plant and equipment	105,790	107,474	104,718
Gains on sales of property, plant and equipment	(15,633)	(20,364)	(34,191)
Equity in (earnings) losses of affiliated companies (Note 8)	21	(5,772)	(5,889)
(Increase) decrease in notes and accounts receivable, trade	63,842	(72,575)	(126,476)
(Increase) decrease in inventories (Note 6)	(731)	(47,569)	(12,044)
(Increase) decrease in other current assets	(30,143)	(63,107)	(86,809)
Increase (decrease) in accounts payable, trade and accrued payroll	52,872	(34,539)	(21,538)
Increase (decrease) in accrued consumption tax	(7,258)	(64,596)	99,661
Increase (decrease) in advances received	36,925	46,191	(32,481)
Increase (decrease) in accrued taxes on income	(8,931)	124,905	(133,894)
Increase (decrease) in other current liabilities	8,934	8,198	60,141
Increase (decrease) in liability for employees' retirement benefits	7,133	49,360	38,753
Increase (decrease) in other long-term liabilities	41,785	(1,965)	2,588
Other	71,627	9,801	(38,601)
Net cash provided by operating activities	2,917,357	2,711,845	2,391,812
Cash flows from investing activities:
Payments for property, plant and equipment	(1,301,697)	(1,265,622)	(1,444,917)
Payments for intangibles	(400,110)	(371,924)	(358,209)
Proceeds from sales of property, plant and equipment	24,920	83,521	54,424
Payments for purchases of non-current investments	(40,344)	(56,641)	(31,097)
Proceeds from sales and redemptions of non-current investments	58,835	57,173	27,478
Acquisitions of subsidiaries, net of cash acquired (Note 25)	(329,005)	(120,596)	(42,217)
Payments for purchases of short-term investments	(178,939)	(26,521)	(61,364)
Proceeds from redemptions of short-term investments	146,132	23,095	70,644
Other	(69,103)	(82,263)	(83,321)
Net cash used in investing activities	(2,089,311)	(1,759,778)	(1,868,579)
Cash flows from financing activities:
Proceeds from issuance of long-term debt (Note 11)	320,464	398,348	615,353
Payments for settlement of long-term debt (Note 11)	(485,612)	(449,025)	(496,729)
Proceeds from issuance of short-term debt (Note 11)	4,987,795	4,460,110	5,931,664
Payments for settlement of short-term debt (Note 11)	(4,897,024)	(4,659,686)	(5,889,243)
Dividends paid	(247,994)	(200,182)	(199,770)
Proceeds from sale of (payments for acquisition of) treasury stock, net (Note 16)	(374,436)	(93,924)	(338,399)
Acquisitions of shares of subsidiaries from noncontrolling interests	(155,905)	(15,718)	(175,088)
Other	(128,799)	(147,498)	(125,796)
Net cash used in financing activities	(981,511)	(707,575)	(678,008)
Effect of exchange rate changes on cash and cash equivalents	(6,959)	(7,419)	19,486
Net increase (decrease) in cash and cash equivalents	(160,424)	237,073	(135,289)
Cash and cash equivalents at beginning of year	1,088,275	849,174	984,463
Increase (decrease) in cash and cash equivalents due to change in fiscal year end of consolidated subsidiaries (Note 2)	(2,638)	2,028
Cash and cash equivalents at end of year (Note 5)	925,213	1,088,275	849,174
Cash paid during the year for:
Interest	37,339	41,626	44,795
Income taxes, net	468,357	342,431	543,354
Noncash investing and financing activities:
Capital lease obligations incurred during the year	¥ 16,809	11,099	20,987
Cancellation of treasury stock (Note 16)		¥ 590,687
Assets acquired through exchange of buildings			¥ 18,719

Consolidated Balance Sheets - JPY (¥) ¥ in Millions	Mar. 31, 2017	Mar. 31, 2016
Current assets (Note 2):
Cash and cash equivalents (Note 5)	¥ 925,213	¥ 1,088,275
Short-term investments	63,844	33,076
Notes and accounts receivable, trade (Notes 3 and 22)	2,699,708	2,733,116
Allowance for doubtful accounts (Note 23)	(48,626)	(45,236)
Accounts receivable, other	505,145	473,192
Inventories (Note 6)	365,379	414,581
Prepaid expenses and other current assets (Note 22)	573,170	469,529
Deferred income taxes (Note 13)	228,590	260,446
Total current assets	5,312,423	5,426,979
Property, plant and equipment (Notes 2 and 19):
Telecommunications equipment	11,046,115	11,586,812
Telecommunications service lines	16,064,732	15,870,097
Buildings and structures	6,147,869	6,069,437
Machinery, vessels and tools	2,032,389	1,996,898
Land	1,292,685	1,273,209
Construction in progress	421,819	382,196
Property, plant and equipment, gross, total	37,005,609	37,178,649
Accumulated depreciation	(27,286,588)	(27,626,728)
Net property, plant and equipment	9,719,021	9,551,921
Investments and other assets (Note 2):
Investments in affiliated companies (Note 8)	484,596	515,716
Marketable securities and other investments (Note 9)	495,290	474,247
Goodwill (Note 10)	1,314,645	1,229,208
Software (Note 10)	1,209,485	1,212,482
Other intangible assets (Note 10)	453,918	391,977
Other assets (Notes 12 and 22)	1,492,076	1,486,840
Deferred income taxes (Note 13)	768,871	746,561
Total investments and other assets	6,218,881	6,057,031
Total assets	21,250,325	21,035,931
Current liabilities (Note 2):
Short-term borrowings (Note 11)	227,207	129,656
Current portion of long-term debt (Notes 11 and 22)	681,904	476,777
Accounts payable, trade (Note 3)	1,612,996	1,572,797
Current portion of obligations under capital leases (Note 19)	14,430	14,711
Accrued payroll	443,308	430,248
Accrued taxes on income	239,755	249,356
Accrued consumption tax	75,083	83,481
Advances received	324,342	290,132
Other (Notes 13 and 22)	512,368	493,970
Total current liabilities	4,131,393	3,741,128
Long-term liabilities (Note 2):
Long-term debt (excluding current portion) (Notes 11 and 22)	3,168,478	3,546,203
Obligations under capital leases (excluding current portion) (Note 19)	25,568	27,630
Liability for employees' retirement benefits (Note 12)	1,599,381	1,688,611
Accrued liabilities for point programs	103,047	89,003
Deferred income taxes (Note 13)	166,751	166,547
Other (Note 22)	497,132	491,630
Total long-term liabilities	5,560,357	6,009,624
Redeemable noncontrolling interests (Notes 2 and 15):	50,819	45,097
Nippon Telegraph and Telephone Corporation ("NTT") shareholders' equity
Common stock, no par value- Authorized-6,192,920,900 shares Issued-2,096,394,470 shares in 2016 and 2017	937,950	937,950
Additional paid-in capital (Note 16)	2,862,035	2,879,560
Retained earnings (Notes 8 and 16)	5,626,155	5,074,234
Accumulated other comprehensive income (loss) (Notes 9, 12, 16 and 22)	1,562	(57,055)
Treasury stock, at cost (Note 16)- 255,269 shares in 2016 and 81,026,959 shares in 2017	(375,223)	(883)
Total NTT shareholders' equity	9,052,479	8,833,806
Noncontrolling interests	2,455,277	2,406,276
Total equity	11,507,756	11,240,082
Commitments and contingent liabilities (Note 24):
Total liabilities and equity	¥ 21,250,325	¥ 21,035,931