Payment received in respect of arbitration award regarding stake in Tata Teleservices
Oct 31, 2017
TOKYO, JAPAN, October 31, 2017 --- NTT DOCOMO, INC. announced today that it has received from Tata Sons Limited ("Tata Sons") payment of the award amount in accordance with the High Court of Delhi's decision regarding DOCOMO's stake in Tata Teleservices Limited ("TTSL"). DOCOMO previously announced the court's decision in a press release entitled "Court Decision Regarding Stake in Tata Teleservices" dated May 1, 2017.
1 Amount Received by DOCOMO
- ¥144.9 billion*1
2 Transfer of TTSL Shares
- Concurrent with the receipt of the above amount, all shares in TTSL held by DOCOMO have been transferred to Tata Sons and companies designated by Tata Sons.
3 Financial Impact and Partial Adjustment to Forecasts of Consolidated Financial Results
DOCOMO expects to include the award amount of ¥144.9 billion in other income on its consolidated financial statements for the three-month period ending December 31, 2017.
Concurrent with the receipt of the above award amount, all shares in TTSL held by DOCOMO have been transferred to Tata Sons and companies designated by Tata Sons. Upon the transfer of DOCOMO's shares in TTSL, DOCOMO no longer accounts for investments in TTSL under the equity method. Accordingly, DOCOMO expects to include a loss on transfer of investments in affiliates of ¥29.8 billion, equal to the reclassification adjustments of foreign currency translation adjustments, in other expense on its consolidated financial statements for the three-month period ending December 31, 2017.
As a result, net income attributable to NTT DOCOMO, INC. will be adjusted to ¥740 billion and free cash flow will be adjusted to ¥855 billion in DOCOMO's forecasts of consolidated financial results for the fiscal year ending March 31, 2018.