Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2016shares | |
Document Information [Line Items] | |
Entity Registrant Name | INTERNET INITIATIVE JAPAN INC |
Entity Central Index Key | 1,090,633 |
Trading Symbol | iiji |
Current Fiscal Year End Date | --03-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding (in shares) | 46,711,400 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | ¥ 19,569,095 | ¥ 21,093,633 |
Accounts receivable, net of allowance for doubtful accounts of ¥54,590 thousand and ¥74,229 thousand at March 31, 2015 and 2016, respectively (Notes 5, 6 and 22) | 23,746,683 | 22,251,818 |
Inventories (Note 3) | 2,003,573 | 1,229,463 |
Prepaid expenses - current | 4,769,988 | 3,691,643 |
Deferred tax assets - current (Note 12) | 1,481,651 | 1,547,474 |
Other current assets, net of allowance for doubtful accounts of ¥720 thousand and ¥15,693 thousand at March 31, 2015 and 2016, respectively (Notes 5 and 9) | 1,834,951 | 2,272,605 |
Total current assets | 53,405,941 | 52,086,636 |
INVESTMENTS IN EQUITY METHOD INVESTEES (Note 6) | 2,979,652 | 2,560,557 |
OTHER INVESTMENTS (Notes 4, 17, 18 and 19) | 5,948,741 | 6,660,706 |
PROPERTY AND EQUIPMENT—Net (Notes 7 and 9) | 34,324,150 | 29,370,054 |
GOODWILL (Note 8) | 6,169,609 | 6,169,609 |
OTHER INTANGIBLE ASSETS—Net (Note 8) | 3,549,459 | 3,941,279 |
GUARANTEE DEPOSITS (Note 9) | 3,084,681 | 2,800,201 |
DEFERRED TAX ASSETS - Noncurrent (Note 12) | 224,316 | 471,087 |
NET INVESTMENT IN SALES-TYPE LEASES - Noncurrent (Note 9) | 2,444,848 | 762,159 |
PREPAID EXPENSES-Noncurrent | 4,987,193 | 2,914,375 |
OTHER ASSETS, net of allowance for doubtful accounts and loans of ¥92,935 thousand and ¥61,593 thousand at March 31, 2015 and 2016, respectively (Notes 5, 6 and 18) | 716,314 | 968,652 |
TOTAL | 117,834,904 | 108,705,315 |
CURRENT LIABILITIES: | ||
Short-term borrowings (Note 11) | 9,250,000 | 9,250,000 |
Capital lease obligations—current portion (Note 9) | 3,954,386 | 3,522,113 |
Accounts payable—trade (Notes 6 and 22) | 13,906,703 | 12,182,908 |
Accounts payable—other | 1,497,767 | 1,442,810 |
Income taxes payable (Note 12) | 1,078,412 | 499,104 |
Accrued expenses | 2,932,653 | 2,968,139 |
Deferred income—current | 2,528,885 | 2,143,480 |
Other current liabilities (Notes 10 and 12) | 917,300 | 1,732,781 |
Total current liabilities | 36,066,106 | 33,741,335 |
CAPITAL LEASE OBLIGATIONS—Noncurrent (Note 9) | 7,779,367 | 4,340,421 |
ACCRUED RETIREMENT AND PENSION COSTS— Noncurrent (Note 13) | 3,581,426 | 2,792,617 |
DEFERRED TAX LIABILITIES—Noncurrent (Note 12) | 710,055 | 1,097,650 |
DEFERRED INCOME—Noncurrent | 3,092,562 | 2,943,975 |
OTHER NONCURRENT LIABILITIES (Note 10) | 1,261,413 | 945,537 |
Total liabilities | ¥ 52,490,929 | ¥ 45,861,535 |
COMMITMENTS AND CONTINGENCIES (Note 17) | ||
SHAREHOLDERS' EQUITY (Notes 4, 13, 14 and 15): | ||
Common stock—authorized, 75,520,000 shares; issued and outstanding, 46,701,000 and 46,711,400 shares at March 31, 2015 and 2016, respectively | ¥ 25,509,499 | ¥ 25,499,857 |
Additional paid-in capital | 36,059,833 | 36,014,128 |
Retained earnings (Accumulated deficit) | 2,471,276 | (556,162) |
Accumulated other comprehensive income | 1,196,669 | 1,938,649 |
Treasury stock—758,709 shares held by the company at March 31, 2015 and 2016, respectively | (392,070) | (392,070) |
Total Internet Initiative Japan Inc. shareholders' equity | 64,845,207 | 62,504,402 |
NONCONTROLLING INTERESTS | 498,768 | 339,378 |
Total equity | 65,343,975 | 62,843,780 |
TOTAL | ¥ 117,834,904 | ¥ 108,705,315 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Accounts receivable, allowance for doubtful accounts | ¥ 74,229 | ¥ 54,590 |
Other current assets, allowance for doubtful accounts | 15,693 | 720 |
Other assets, net of allowance doubtful accounts | ¥ 61,593 | ¥ 92,935 |
Common stock, shares authorized (in shares) | 75,520,000 | 75,520,000 |
Common stock, shares issued (in shares) | 46,711,400 | 46,701,000 |
Common stock, shares outstanding (in shares) | 46,711,400 | 46,701,000 |
Treasury stock, shares (in shares) | 758,709 | 758,709 |
Consolidated Statements of Inco
Consolidated Statements of Income - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Internet Connectivity Services, Enterprise [Member] | |||
REVENUES (Notes 6 and 22): | |||
Network services | ¥ 17,597,343 | ¥ 16,349,785 | ¥ 16,585,175 |
Internet Connectivity Services, Consumer [Member] | |||
REVENUES (Notes 6 and 22): | |||
Network services | 15,255,596 | 8,222,015 | 6,024,560 |
WAN Services [Member] | |||
REVENUES (Notes 6 and 22): | |||
Network services | 25,176,730 | 24,325,951 | 25,005,867 |
Outsourcing Services [Member] | |||
REVENUES (Notes 6 and 22): | |||
Network services | 21,265,895 | 20,107,850 | 19,670,127 |
Systems Construction [Member] | |||
REVENUES (Notes 6 and 22): | |||
Systems integration | 21,144,677 | 20,437,326 | 18,673,638 |
Systems Operation and Maintenance [Member] | |||
REVENUES (Notes 6 and 22): | |||
Systems integration | 33,043,669 | 27,800,132 | 23,795,927 |
Network services | 79,295,564 | 69,005,601 | 67,285,729 |
Systems integration | 54,188,346 | 48,237,458 | 42,469,565 |
Equipment sales | 3,275,220 | 2,166,928 | 1,690,225 |
ATM operation business | 3,888,878 | 3,640,128 | 2,826,832 |
Total revenues | 140,648,008 | 123,050,115 | 114,272,351 |
COSTS AND EXPENSES (Notes 6, 9, 13 and 22): | |||
Cost of network services | 64,239,600 | 54,932,285 | 53,045,814 |
Cost of systems integration | 46,225,629 | 41,561,621 | 36,510,328 |
Cost of equipment sales | 2,968,711 | 1,932,180 | 1,526,618 |
Cost of ATM operation business | 2,558,883 | 2,551,437 | 2,123,168 |
Total costs | 115,992,823 | 100,977,523 | 93,205,928 |
Sales and marketing (Note 21) | 10,588,887 | 9,188,425 | 8,547,693 |
General and administrative (Note 7) | 7,470,746 | 7,367,600 | 6,374,057 |
Research and development | 455,198 | 441,329 | 421,361 |
Total costs and expenses | 134,507,654 | 117,974,877 | 108,549,039 |
OPERATING INCOME | 6,140,354 | 5,075,238 | 5,723,312 |
OTHER INCOME (EXPENSES): | |||
Dividend income | 93,054 | 63,143 | 51,003 |
Interest income | 27,587 | 23,111 | 26,719 |
Interest expense | (241,057) | (238,260) | (256,371) |
Foreign exchange gain (loss), net | (71,270) | (5,045) | 219,381 |
Net gain on sales of other investments (Note 4) | ¥ 23,765 | ¥ 41,251 | 107,655 |
Net gain on other investments (Note 4) | ¥ 313,393 | ||
Impairment of other investments (Note 4) | ¥ (14,729) | ¥ (29,117) | |
Other—net | 235,630 | 208,671 | ¥ 89,799 |
Other income—net | 52,980 | 63,754 | 551,579 |
INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES—(FORWARD) | 6,193,334 | 5,138,992 | 6,274,891 |
INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES—(FORWARD) | 6,193,334 | 5,138,992 | 6,274,891 |
INCOME TAX EXPENSE (Note 12) | 2,183,531 | 1,896,865 | 1,795,305 |
EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES (Note 6) | 180,219 | 154,626 | 204,046 |
NET INCOME | 4,190,022 | 3,396,753 | 4,683,632 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (151,740) | (74,672) | (241,395) |
NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. | ¥ 4,038,282 | ¥ 3,322,081 | ¥ 4,442,237 |
NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. PER SHARE (Note 16): | |||
Basic weighted-average number of common shares outstanding (in shares) | 45,950,098 | 45,942,291 | 44,306,680 |
Diluted weighted-average number of common shares outstanding (in shares) | 46,043,383 | 46,014,737 | 44,361,083 |
BASIC NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. PER COMMON SHARE (in Japanese Yen per share) | ¥ 87.88 | ¥ 72.31 | ¥ 100.26 |
DILUTED NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. PER COMMON SHARE (in Japanese Yen per share) | ¥ 87.71 | ¥ 72.20 | ¥ 100.14 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net income | ¥ 4,190,022 | ¥ 3,396,753 | ¥ 4,683,632 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (Note 15): | |||
Foreign currency translation adjustments | (67,652) | 243,538 | 419,557 |
Unrealized holding gain (loss) on securities | (275,952) | 61,590 | 988,139 |
Defined benefit pension plans | (394,418) | (83,000) | 41,115 |
TOTAL COMPREHENSIVE INCOME | 3,452,000 | 3,618,881 | 6,132,443 |
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (155,698) | (70,937) | (241,251) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. | ¥ 3,296,302 | ¥ 3,547,944 | ¥ 5,891,192 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - JPY (¥) ¥ in Thousands | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Noncontrolling Interest [Member] | Total |
BALANCE at Mar. 31, 2013 | ¥ (6,399,088) | ¥ 263,770 | ¥ 16,833,847 | ¥ (392,079) | ¥ 27,300,325 | ¥ 27,403 | ¥ 37,634,178 |
BALANCE (in shares) at Mar. 31, 2013 | 41,295,600 | ||||||
Acquisition of noncontrolling interests in consolidated subsidiaries (Note 14) | 61 | 53 | 99 | (213) | |||
Issuance of common stock, net of issuance cost (Note 14) | ¥ 8,661,600 | 8,609,604 | 17,271,204 | ||||
Issuance of common stock, net of issuance cost (Note 14) (in shares) | 5,400,000 | ||||||
Issuance of common stock upon exercise of stock options | ¥ 1,575 | 1,576 | 3,151 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 2,200 | ||||||
Stock-based compensation (Note 14) | 50,391 | 50,391 | |||||
Net income | 4,442,237 | 241,395 | 4,683,632 | ||||
Other comprehensive income (loss), net of tax | 1,448,955 | (144) | 1,448,811 | ||||
Dividends paid (Note 14) | (910,697) | (910,697) | |||||
Purchase of treasury stock | (44) | (44) | |||||
BALANCE at Mar. 31, 2014 | (2,867,548) | 1,712,786 | ¥ 25,497,022 | (392,070) | 35,961,995 | 268,441 | 60,180,626 |
BALANCE (in shares) at Mar. 31, 2014 | 46,697,800 | ||||||
Issuance of common stock upon exercise of stock options | ¥ 2,835 | 2,836 | ¥ 5,671 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 3,200 | 3,200 | |||||
Stock-based compensation (Note 14) | 49,297 | ¥ 49,297 | |||||
Net income | 3,322,081 | 74,672 | 3,396,753 | ||||
Other comprehensive income (loss), net of tax | 225,863 | (3,735) | 222,128 | ||||
Dividends paid (Note 14) | (1,010,695) | (1,010,695) | |||||
BALANCE at Mar. 31, 2015 | (556,162) | 1,938,649 | ¥ 25,499,857 | (392,070) | 36,014,128 | 339,378 | 62,843,780 |
BALANCE (in shares) at Mar. 31, 2015 | 46,701,000 | ||||||
Issuance of common stock upon exercise of stock options | ¥ 9,642 | (9,632) | ¥ 10 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 10,400 | 10,400 | |||||
Stock-based compensation (Note 14) | 55,337 | ¥ 55,337 | |||||
Net income | 4,038,282 | 151,740 | 4,190,022 | ||||
Other comprehensive income (loss), net of tax | (741,980) | 3,958 | (738,022) | ||||
Dividends paid (Note 14) | (1,010,844) | (1,010,844) | |||||
BALANCE at Mar. 31, 2016 | ¥ 2,471,276 | ¥ 1,196,669 | ¥ 25,509,499 | ¥ (392,070) | ¥ 36,059,833 | 498,768 | 65,343,975 |
BALANCE (in shares) at Mar. 31, 2016 | 46,711,400 | ||||||
Subsidiary stock issuance | ¥ 3,692 | ¥ 3,692 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES: | |||
Net income | ¥ 4,190,022 | ¥ 3,396,753 | ¥ 4,683,632 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 9,921,555 | ¥ 9,677,339 | ¥ 8,822,981 |
Impairment loss on intangible assets | 11,000 | ||
Provision for retirement and pension costs, less payments | 200,871 | ¥ 256,661 | ¥ 226,599 |
Provision for (reversal of) allowance for doubtful accounts | 48,407 | 33,158 | ¥ (46,935) |
Gain on sales of property and equipment | (38,219) | (29,733) | |
Loss on disposal of property and equipment | 66,169 | 101,189 | ¥ 83,487 |
Net gain on sales of other investments | ¥ (23,765) | ¥ (41,251) | (107,655) |
Net gain on other investments | ¥ (313,393) | ||
Impairment of other investments | ¥ 14,729 | ¥ 29,117 | |
Foreign exchange gain, net | (51,727) | (18,259) | ¥ (129,916) |
Equity in net income of equity method investees, net of dividend received | (124,141) | (122,286) | (204,046) |
Deferred income tax expense (benefit) | 249,115 | 211,230 | (699,826) |
Others | (12,341) | 8,560 | 71,448 |
Changes in operating assets and liabilities net of effects from acquisition of a company: | |||
Increase in accounts receivable | (1,565,857) | (2,819,564) | (342,391) |
Decrease (increase) in net investment in sales-type lease—noncurrent | 98,511 | (9,385) | 145,266 |
Decrease (increase) in inventories | (777,192) | 450,256 | (365,533) |
Increase in prepaid expenses | (1,083,665) | (542,770) | (612,802) |
Decrease (increase) in other current and noncurrent assets | (1,485,629) | 715,132 | (1,801,403) |
Increase in accounts payable | 1,760,207 | 648,562 | 476,860 |
Increase (decrease) in income taxes payable | 579,414 | (718,737) | (594,782) |
Increase (decrease) in accrued expenses | (32,288) | 873,815 | (219,277) |
Increase (decrease) in deferred income—current | 418,162 | 465,469 | (158,972) |
Increase (decrease) in deferred income—noncurrent | 201,897 | (248,061) | 91,462 |
Increase (decrease) in other current and noncurrent liabilities | (513,647) | 595,178 | (217,925) |
Net cash provided by operating activities—(Forward) | 12,051,588 | 12,912,373 | 8,786,879 |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (10,898,533) | (8,157,115) | (9,123,998) |
Proceeds from sales of property and equipment | 2,574,449 | 772,226 | 456,330 |
Purchases of available-for-sale securities | (59,490) | (4,104) | (167,545) |
Purchases of other investments | (376,067) | (282,478) | (1,185,985) |
Investment in equity method investees | (338,166) | ¥ (338,240) | (199,920) |
Proceeds from sales of available-for-sale securities | 141,235 | 391,814 | |
Proceeds from sales of other investments | 808,465 | ¥ 40,501 | 351,740 |
Payments of guarantee deposits | (348,005) | (1,635,910) | (688,902) |
Refund of guarantee deposits | 21,567 | 1,572,885 | 20,233 |
Payments for refundable insurance policies | (56,362) | (47,831) | ¥ (18,787) |
Proceeds from subsidies | 200,000 | ¥ 200,000 | |
Refund from insurance policies | ¥ 10,108 | ¥ 16,026 | |
Acquisition of a newly controlled company, net of cash acquired (Note 2) | ¥ (167,678) | ||
Other | ¥ (56,029) | (25,000) | ¥ (53,766) |
Net cash used in investing activities | (8,376,828) | (8,072,744) | (10,202,760) |
FINANCING ACTIVITIES: | |||
Proceeds from issuance of short-term borrowings with initial maturities over three months | 1,550,000 | 50,000 | 250,000 |
Repayments of short-term borrowings with initial maturities of over three months and long-term borrowings | (1,550,000) | (1,030,000) | (1,260,000) |
Principal payments under capital leases | ¥ (4,194,215) | (4,193,654) | ¥ (3,968,724) |
Proceeds from sale and lease back | 50,847 | ||
Net decrease in short-term borrowings | ¥ (150,000) | ||
Proceeds from issuance of subsidiary stock to noncontrolling interests | ¥ 3,692 | ||
Dividends paid | ¥ (1,010,844) | ¥ (1,010,695) | ¥ (910,697) |
Proceeds from issuance of common stock, net of issuance cost | 17,271,204 | ||
Other | ¥ 10 | ¥ 3 | 109 |
Net cash provided by (used in) financing activities | (5,201,357) | (6,283,499) | 11,381,892 |
FORWARD | (1,526,597) | (1,443,870) | 9,966,011 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 2,059 | 116,403 | 196,217 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,524,538) | (1,327,467) | 10,162,228 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 21,093,633 | 22,421,100 | 12,258,872 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 19,569,095 | 21,093,633 | 22,421,100 |
ADDITIONAL CASH FLOW INFORMATION: | |||
Interest paid | 241,260 | 239,940 | 256,722 |
Income taxes paid | 1,377,753 | 2,405,067 | 2,707,784 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | |||
Acquisition of assets by entering into capital leases | 8,065,674 | 3,678,012 | 3,436,245 |
Facilities purchase liabilities | 1,497,767 | 1,442,810 | 1,050,429 |
Asset retirement obligation | ¥ 45,169 | 287,036 | ¥ 170,814 |
Acquisition of a company (Note 2): | |||
Assets acquired | 1,064,736 | ||
Liabilities assumed | 464,736 | ||
Cash paid | (600,000) | ||
Cash acquired | 432,322 | ||
Acquisition of a newly controlled company, net of cash acquired | ¥ (167,678) |
Note 1 - Description of Busines
Note 1 - Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Internet Initiative Japan Inc. (“IIJ,” a Japanese corporation) was founded in December 1992 to develop and operate Internet access services and other Internet-related services in Japan. As of March 31, 2016, 26.4% of IIJ’s voting shares were jointly owned by Nippon Telegraph and Telephone Corporation (“NTT”) and its subsidiary. IIJ and its subsidiaries (collectively, the “Company”) provide customers substantially operating in Japan with Internet connectivity services, Wide Area Network (“WAN”) services and outsourcing services. The Company also provides systems integration which consists of systems construction and systems operation and maintenance. In addition, a subsidiary provides Automated Teller Machines (“ATM”) operation services. Certain Significant Risks and Uncertainties The Company relies on telecommunications carriers for a significant portion of its network backbone and on regional NTT subsidiaries, electric power companies and their affiliates for local connections to customers. Currently, NTT Communications Corporation, a wholly owned subsidiary of NTT, is the largest provider of network infrastructure for the Company. The Company believes that its use of multiple carriers and suppliers significantly mitigates the risk of damages from service disruptions. However, any disruption of telecommunication services could have an adverse effect on operating results. Summary of Significant Accounting Policies Basis of Presentation— Consolidation— Investments in companies over which IIJ has significant influence but not control are accounted for by the equity method. For other-than-temporary declines in the value of investments in equity method investees below the carrying amount, the investments are reduced to fair value and an impairment loss is recognized. Equity-method goodwill which is the portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an investee is not amortized, but equity-method investments are continuously to be reviewed for impairment in accordance with Accounting Standards Codification (“ASC”) 323 “Investments-Equity Method and Joint Ventures.” A subsidiary or equity method investee may issue its shares to third parties at amounts per share in excess of or less than the Company’s average per share carrying value. Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary are accounted for as equity transactions. Use of Estimates— Revenue Recognition— System integration revenue involves one or more of the following deliverables: ・System construction services ― include all or some of the following elements depending on arrangements to meet each of our customer's requirements: consulting, project planning, system design, and development of network systems. These services also include the installation of software as well as configuration and installation of hardware. ・Software ― we resell third-party software such as Oracle and Windows to our customers, which are installed by us during the system development process. ・Hardware ― we also resell third-party hardware, primarily servers, switches and routers, which we install during the system development process. The hardware is generic hardware that is often sold by third party manufacturers and resellers. ・Monitoring and operating service ― we monitor our customer's network activity and internet connectivity to detect and report problems. We also provide constant data backup services. ・Hardware and software maintenance service ― we repair or replace any malfunctioning parts of hardware. We examine software faults and provide suitable solutions to customers. The system construction services are generally delivered over a three-month period. All hardware and software are delivered and installed during this period. Customers are required to pay a specified fixed fee that is not payable until after the system construction has been completed and accepted by our customers. Monitoring, operating, and hardware and software maintenance services generally commence once our customers have accepted the systems, and contract periods are generally from one to five years. Our contracts include a stated annual fee for these services. For multiple-element arrangements that include system construction service, hardware, software essential to the hardware product’s functionality and undelivered non-software services (e.g., monitoring and operating services), the Company allocates revenue to all deliverables based on their relative selling prices. The Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). The allocation of revenue is based mainly on the Company’s ESPs except for certain undelivered non-software services for which VSOE has been established. The Company’s process for determining its ESP for deliverables includes various factors that may vary depending on the circumstances and specific characteristics related to each deliverable. In developing the ESP, the Company considers customer demand, the existence and effect of competitors, general profit margin realized in the marketplace, volume of the transactions, the Company’s internal costs of providing the deliverables, the profit objectives including targeted and historical margins realized on similar sales to similar customers and the historical pricing practices. The method used to account for each unit and the period over which each unit of accounting is recognized are as follows: ・Revenue allocated to system construction services is accounted for using contract accounting. System construction service revenues, which are generally completed within three months, are recognized based on the completed-contract method in compliance with ASC 605-35-25-92 because the Company is unable to bill customers and the title to the constructed network system is not transferred to the customers unless they are satisfied with and accept the completed systems. ・Revenue related to the hardware and software essential to the hardware product’s functionality is not recognized until customer acceptance is received because title to the hardware and software do not transfer to our customers until formal acceptance is received. ・Revenue related to undelivered non-software services (monitoring, operating and hardware maintenance services) is recognized on a straight-line basis over the contract period. The Company also enters into multiple-element arrangements for system integration services that include software not essential to the hardware product’s functionality and software-related services and accounts for them in accordance with ASC 985-605, “Software-Revenue Recognition.” The Company has been able to establish VSOE of fair value of the software-related services based on separate renewal contracts of the services that are consistently priced within a narrow range. The Company allocates revenue to such services based on VSOE and recognizes the revenues on a straight-line basis over the contract period. The Company allocates the residual amount to the software. Equipment sales revenues are recognized when equipment is delivered and accepted by the customer. The Company evaluates whether it is appropriate to record the gross amount of revenues and related costs or the net amount earned in reporting system construction services and equipment sales, depending on whether the Company functions as principal or agent. ATM operation business revenues consist primarily of commissions for each withdrawing transaction with the use of ATMs. ATM commission collected from each withdrawal is aggregated every month and recognized as ATM operation revenues. Revenue is recognized net of consumption tax collected from customers and subsequently remitted to governmental authorities. Cash and Cash Equivalents— Allowance for Doubtful Accounts— Other Investments— Non-marketable equity securities are carried at cost as fair value is not readily determinable. When the Company evaluates whether non-marketable equity securities are impaired or not, the Company evaluates first whether an event or change in circumstances has occurred in the period that may have significant adverse effect on the fair value of the securities (an impairment indicator). The Company uses such impairment indicators as follows: ・A significant deterioration in the earnings performance or business prospects of the investee. ・A significant adverse change in the regulatory, economic, or technological environment of the investee. ・A significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates. ・A recent example of the new issuance of a security, in which the issue price is less than our cost. The Company estimates the fair value of the non-marketable equity securities when an impairment indicator is present. The fair value is determined as a result of considering various unobservable inputs which are available to the Company, including expectation of future income of the investees, net asset value of the investees, and material unrealized losses to be considered in assets and liabilities held by the investees. The Company recognizes impairment of non-marketable equity securities when the fair value is below the carrying amount and the decline in fair value is considered to be other-than-temporary. Inventories— Leases— Sales-Type Leases— Property and Equipment— Range of Data communications, office and other equipment (years) 2 to 20 Buildings (years) 20 Leasehold improvements (years) 4 to 20 Capitalized software (years) 5 to 7 Capital leases (years) 4 to 6 Impairment of Long-Lived Assets— Goodwill and Intangible Assets— Asset Retirement Obligations— Pension and Severance Indemnities Plans— Income Taxes— The Company recognizes the financial statement effect of uncertain tax positions when it is more-likely- than not, based on the technical merits, that the tax positions will be sustained upon examination by the tax authorities. Benefits from tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income tax expense in the consolidated statements of income. Foreign Currency Translation— Foreign currency assets and liabilities are stated at the amount as computed by using year-end exchange rates and the resulting transaction gain or loss is recognized in earnings. Stock-Based Compensation— Research and Development Costs— Advertising— Basic and Diluted Net Income attributable to Internet Initiative Japan Inc. per Common Share— Other Comprehensive Income (Loss)— Segment Reporting— The Company provides a comprehensive range of network solutions to meet its customers’ needs by cross-selling a variety of services, including Internet connectivity services, WAN services, outsourcing services, systems integration and sales of network-related equipment, and ATM operation services. The Company’s chief operating decision maker, who is the Company’s Chief Operating Officer ("COO"), regularly reviews the revenue and cost of sales of the two operating segments, which are the Network service and systems integration business segment and the ATM operation business segment. The COO also makes decisions regarding how to allocate resources and assess performance based on the segments. New Accounting Guidance Accounting Guidance Issued But Not Adopted as of March 31, 2016 In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606),” to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. This guidance also requires an entity to improve disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which was issued in August 2015, revised the effective date for this ASU to annual and interim periods beginning after December 15, 2017, with early adoption permitted, but not earlier than the original effective date of annual and interim periods beginning after December 15, 2016, for public entities. The Company is currently evaluating the impact of adopting this guidance. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which applies to inventory that is measured using the first-in, first-out (“FIFO”) or average cost methods. Under the updated guidance, an entity should measure inventory within the scope of the guidance at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognizes assets and liabilities for leases with lease terms of more than twelve months and the recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which is an amendment to the new revenue recognition standard on assessing whether an entity is a principal or an agent in a revenue transaction. This amendment addresses implementation issues that were discussed by the Revenue Recognition Transition Resource Group ("TRG") to clarify the principal versus agent assessment and provide for a more consistent application. This new standard has the same effective date and transition requirements as ASU 2014-09. The Company is currently evaluating the impact of adopting this guidance. |
Note 2 - Business Combinations
Note 2 - Business Combinations | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. BUSINESS COMBINATIONS There were no business acquisitions during the years ended March 31, 2014 and March 31, 2016. On December 1, 2014, the Company acquired all the outstanding common shares of RYUKOSHA, which engages in human resources outsourcing services for fields such as systems operation and service support, for total consideration of ¥600,000 thousand paid in cash. The acquisition price of the shares was determined on the basis of the estimated future cash flows and efficiencies gained from an expected reduction in external recruiting expenses. There are no future contingent payments. The objectives of this acquisition are to rapidly strengthen the Company's engineering organization to meet the needs of a growing number of systems integration and outsourcing projects (such as systems construction and operation, and outsourcing for corporate customers' networks and systems) and to increase the Company's in-house business efficiency over the mid- to long-term by bringing more outsourced personnel into the Company. The fair value of the assets acquired and liabilities assumed recognized in relation to the acquisition of RYUKOSHA was ¥865,078 thousand and ¥464,736 thousand, respectively, and goodwill of ¥199,658 thousand was recorded (see Note 8, “GOODWILL AND OTHER INTANGIBLE ASSETS”). For the year ended March 31, 2015, acquisition-related costs of ¥32,262 thousand were incurred. These costs consisted of professional advisory fees and were recorded in “General and administrative” expenses. Pro forma results of operations have not been presented because the effect of the acquisition was not material. |
Note 3 - Inventory
Note 3 - Inventory | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. INVENTORY The components of inventories as of March 31, 2015 and 2016 are as follows: Thousands of Yen 2015 2016 Network equipment purchased for resale ¥ 667,110 ¥ 658,330 Work in process 562,353 1,345,243 Total inventories ¥ 1,229,463 ¥ 2,003,573 |
Note 4 - Other Investments
Note 4 - Other Investments | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. OTHER INVESTMENTS Thousands of Yen March 31, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Available-for-sale—Equity securities ¥ 1,778,803 ¥ 2,528,884 ¥ 95,116 ¥ 4,212,571 Available-for-sale—Debt securities 100,300 1,610 – 101,910 ¥ 1,879,103 ¥ 2,530,494 ¥ 95,116 ¥ 4,314,481 March 31, 2016 Available-for-sale—Equity securities ¥ 1,822,151 ¥ 2,090,940 ¥ 82,244 ¥ 3,830,847 Available-for-sale—Debt securities 100,300 13,250 – 113,550 ¥ 1,922,451 ¥ 2,104,190 ¥ 82,244 ¥ 3,944,397 Maturities of available-for-sale debt securities are due after 10 years. The following table provides the fair value and gross unrealized losses of the Company's investments, which have been deemed to be temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of March 31, 2015 and 2016: Thousands of Yen Less than 12 Months 12 Months or More Total March 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Losses Available-for-sale—Equity securities ¥ 946,712 ¥ 95,116 – – ¥ 946,712 ¥ 95,116 March 31, 2016 Available-for-sale—Equity securities ¥ 994,658 ¥ 79,267 ¥ 7,587 ¥ 2,977 ¥ 1,002,245 ¥ 82,244 The Company regularly reviews all of the Company's investments to determine if any are other-than-temporarily impaired. The analysis includes reviewing industry analyst reports, sector credit ratings and volatility of the security's market price. The Company’s unrealized loss on investments in marketable equity securities as of March 31, 2016 relates to Japanese companies (8 issuers) in various industries. The fair value of each investment is between 5.9% and 36.4% less than its cost. The duration of the unrealized loss position was primarily less than 12 months. The Company evaluated the near-term prospects of the issuers and the analyst reports in relation to the severity and duration of impairment. Based on that evaluation and the Company’s ability and intent to hold the investments for a reasonable period of time sufficient to recover the unrealized loss, the Company does not consider the investments to be other-than-temporarily impaired at March 31, 2016. Proceeds from the sale of available-for-sale securities were ¥391,814 thousand and ¥141,235 thousand for the years ended March 31, 2014 and 2016, respectively. Gross realized gains of ¥107,655 thousand and ¥35,934 thousand were included in "Other income (expenses)" for the years ended March 31, 2014 and 2015, respectively. Net gain on other investments, which was derived from realized gains on investments in funds, for the year ended March 31, 2014 was ¥313,393 thousand. The aggregate cost of the Company’s cost method investments totaled ¥2,346,225 thousand and ¥2,004,344 thousand at March 31, 2015 and 2016, respectively. Impairment of investments in certain marketable equity securities and nonmarketable equity securities, including funds, included in "Other income (expenses)" in the Company’s consolidated statements of income, were recognized to reflect the decline in value considered to be other-than-temporary. The Company recognized impairment loss of ¥29,117 thousand on nonmarketable equity securities for the year ended March 31, 2015, and ¥3,964 thousand on marketable equity securities and ¥10,765 thousand on nonmarketable equity securities for the year ended March 31, 2016. |
Note 5 - Allowance for Doubtful
Note 5 - Allowance for Doubtful Accounts and Loans | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Allowance for Credit Losses [Text Block] | 5. ALLOWANCE FOR DOUBTFUL ACCOUNTS AND LOANS An analysis of the allowance for doubtful accounts and loans for the years ended March 31, 2014, 2015 and 2016 is as follows: Thousands of Yen Balance at Beginning of Year Credits Charged Off Provision for (Reversal of) Doubtful Accounts Other Balance at End of Year Year ended March 31, 2014 ¥ 176,393 ¥ (12,067 ) ¥ (46,935 ) – ¥ 117,391 Year ended March 31, 2015 ¥ 117,391 ¥ (3,153 ) ¥ 33,158 ¥ 849 ¥ 148,245 Year ended March 31, 2016 ¥ 148,245 ¥ (45,108 ) ¥ 48,407 ¥ (29 ) ¥ 151,515 |
Note 6 - Investments in Equity
Note 6 - Investments in Equity Method Investees | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 6. INVESTMENTS IN EQUITY METHOD INVESTEES IIJ utilizes various companies in Japan to develop and operate its Internet business. Businesses operated by its equity method investees include multifeed technology services and location facilities for connecting high-speed Internet backbones (Internet Multifeed Co., “Multifeed”), comprehensive portal site operations (Internet Revolution Inc., “i-revo”), point management systems operations (Trinity Inc., “Trinity”), research and development of software (Stratosphere Inc., “Stratosphere”), cloud-based systems that undergird smartphone applications (Appiaries Corporation, “Appiaries”), system consultants (e-CORPORATION.JP Ltd, “e-CORPORATION”), cloud computing services in Indonesia (PT. BIZNET GIO NUSANTARA, “BIZNET”), system development and consulting in medical and healthcare business (KIS Inc., “KIS”) and cloud computing services in Thailand (Leap Solutions Asia Co., Ltd, “Leap Solutions”). The aggregate amounts of balances and transactions of the Company with these equity method investees as of March 31, 2015 and 2016, and for each of the three years in the period ended March 31, 2016 are summarized as follows: Thousands of Yen 2014 2015 2016 Accounts receivable – ¥ 367,741 ¥ 124,923 Accounts payable – 48,788 46,658 Revenues ¥ 538,288 956,887 666,554 Costs and expenses 451,342 460,463 502,340 Dividends from the equity method investees for the years ended March 31, 2015 and 2016 were ¥32,340 thousand and ¥48,510 thousand, respectively. The Company's investments in these equity method investees and its ownership percentage in each at March 31, 2015 and 2016 consisted of the following: Thousands of Yen 2015 2016 Multifeed 33.00 % ¥ 1,354,932 34.00 % ¥ 1,518,610 i-revo 30.00 676,732 30.00 725,529 Trinity 33.75 101,618 33.75 133,325 Stratosphere 50.00 – – – Appiaries 49.00 106,196 49.00 16,396 e-CORPORATION 35.21 32,839 35.21 29,095 BIZNET 40.00 288,240 40.00 246,193 KIS – – 36.10 53,576 Leap Solutions – – 40.00 256,928 Total ¥ 2,560,557 ¥ 2,979,652 The Company also had a loan of ¥30,658 thousand to Stratosphere, which was included in “Other assets” in the Company’s consolidated balance sheet as of March 31, 2015. The Company also provided an allowance for this loan of ¥30,658 thousand as of March 31, 2015. Stratosphere was liquidated during the year ended March 31, 2016. The Company acquired shares in KIS for ¥39,974 thousand in July 2015 and Leap Solutions for ¥256,928 thousand in March 2016. The balance of equity-method goodwill was ¥103,841 thousand and ¥57,197 thousand as of March 31, 2015 and 2016, respectively, and was included in “Investments in equity method investees” in the Company’s consolidated balance sheets. |
Note 7 - Property and Equipment
Note 7 - Property and Equipment | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 7. PROPERTY AND EQUIPMENT Property and equipment as of March 31, 2015 and 2016 consisted of the following: Thousands of Yen 2015 2016 Data communications equipment ¥ 11,159,022 ¥ 14,355,365 Office and other equipment 2,746,153 2,065,039 Land 537,889 537,889 Buildings 1,644,704 1,663,326 Leasehold improvements 3,798,172 3,904,189 Capitalized software 24,804,449 28,815,164 Assets under capital leases, primarily data communications equipment 24,271,434 28,328,721 Total 68,961,823 79,669,693 Less accumulated depreciation and amortization (39,591,769 ) (45,345,543 ) Property and equipment—net ¥ 29,370,054 ¥ 34,324,150 Depreciation and amortization expenses for property and equipment amounted to ¥8,359,907 thousand, ¥9,280,309 thousand and ¥9,533,541 thousand for the years ended March 31, 2014, 2015 and 2016, respectively. The Company recorded net losses on sales or disposal of property and equipment of ¥83,487 thousand, ¥71,456 thousand and ¥27,950 thousand for the years ended March 31, 2014, 2015 and 2016, respectively, in “General and administrative” expenses in the Company’s consolidated statements of income. The accumulated amortization for capitalized software were ¥15,298,591 thousand and ¥18,076,113 thousand for the years ended March 31, 2015 and 2016, respectively. The amortization expenses for capitalized software amounted to ¥2,343,155 thousand and ¥2,592,445 for the years ended March 31, 2015 and 2016, respectively. The weighted average amortization period for capitalized software is approximately 5.2 years. The estimated aggregate amortization expense of capitalized software for each of the next five years is as follows: Year Ending March 31 Thousands of Yen 2017 ¥ 2,990,683 2018 2,747,052 2019 2,048,524 2020 1,385,225 2021 840,041 |
Note 8 - Goodwill and Other Int
Note 8 - Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. GOODWILL AND OTHER INTANGIBLE ASSETS Thousands of Yen 2015 2016 Intangible assets subject to amortization: Customer relationships ¥ 6,424,471 ¥ 6,424,471 Total 6,424,471 6,424,471 Less accumulated amortization Customer relationships (2,619,544 ) (3,007,558 ) Intangible assets subject to amortization—net 3,804,927 3,416,913 Intangible assets not subject to amortization: Telephone rights 29,352 36,546 Trademark 107,000 96,000 Goodwill 6,169,609 6,169,609 Total 6,305,961 6,302,155 Total intangible assets ¥ 10,110,888 ¥ 9,719,068 The weighted average amortization period for customer relationships is approximately 16.2 years. The amortization expenses for the years ended March 31, 2015 and 2016 were ¥397,030 thousand and ¥388,014 thousand, respectively. The estimated aggregate amortization expense of intangible assets for each of the next five years is as follows: Year Ending March 31 Thousands of Yen 2017 ¥ 380,496 2018 365,460 2019 355,410 2020 346,223 2021 336,787 The Company recorded ¥11,000 thousand of loss on impairment of the trademark right related to hi-ho in “Sales and marketing” expenses in the Company’s consolidated statement of income for the year ended March 31, 2016. Because of the recent decrease in revenues of hi-ho, the Company recognized that the trademark might be impaired. The carrying value of the trademark exceeded its fair value and the impairment loss was recognized in an amount equal to the excess of the carrying amount of the trademark over the fair value of the trademark. The fair value of the trademark was calculated using the relief-from-royalty method. The amount of loss was included in the network service and system integration business segment. The following table shows changes in the carrying amount of goodwill for the years ended March 31, 2015 and 2016, by operating segment: Thousands of Yen Network Service and Systems Integration Business ATM Operation Business Total Balance at March 31, 2014 Goodwill ¥ 5,854,682 ¥ 235,551 ¥ 6,090,233 Accumulated impairment losses (120,282 ) – (120,282 ) 5,734,400 235,551 5,969,951 Acquisition 199,658 – 199,658 Impairment losses – – – Balance at March 31, 2015 Goodwill 6,054,340 235,551 6,289,891 Accumulated impairment losses (120,282 ) – (120,282 ) 5,934,058 235,551 6,169,609 Acquisition – – – Impairment losses – – – Balance at March 31, 2016 Goodwill 6,054,340 235,551 6,289,891 Accumulated impairment losses (120,282 ) – (120,282 ) ¥ 5,934,058 ¥ 235,551 ¥ 6,169,609 No impairment of goodwill was recognized during the years ended March 31, 2014, 2015 and 2016. On December 1, 2014, IIJ acquired a new subsidiary, RYUKOSHA, and recorded goodwill of ¥199,658 thousand. The goodwill components were mainly attributable to human resources and the goodwill was included in the network service and system integration business segment. |
Note 9 - Leases
Note 9 - Leases | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 9. LEASES The Company enters into, in the normal course of business, various leases for domestic and international backbone services, office premises, network operation centers and data communications and other equipment. Certain leases that meet one or more of the criteria set forth in the provision of ASC 840, “Leases” have been classified as capital leases and the others have been classified as operating leases. A portion of the Company’s sales result from multi-year lease agreements, under which the Company leased some network equipment to customers. The leases are classified as sale-type leases which the Company accounts for in accordance with ASC 840. Operating Leases— Refundable guarantee deposits as of March 31, 2015 and 2016 consist of the following: Thousands of Yen 2015 2016 Head office ¥ 2,187,901 ¥ 2,462,266 Sales and subsidiaries offices 547,549 551,242 Others 64,751 71,173 Total refundable guarantee deposits ¥ 2,800,201 ¥ 3,084,681 Lease expenses related to backbone lines for the years ended March 31, 2014, 2015 and 2016 amounted to ¥3,763,803 thousand, ¥3,743,576 thousand and ¥3,638,063 thousand, respectively. Lease expenses for local access lines for the years ended March 31, 2014, 2015 and 2016, which are mainly attributable to Internet connectivity services and WAN services, amounted to ¥22,602,364 thousand, ¥21,967,587 thousand and ¥23,035,615 thousand, respectively. Other lease expenses for the years ended March 31, 2014, 2015 and 2016 amounted to ¥6,513,184 thousand, ¥6,988,368 thousand and ¥6,880,307 thousand, respectively. The Company has subleased a part of its office premises. Lease expenses mentioned above have been reduced by sublease revenues totaling ¥24,082 thousand, ¥29,521 thousand and ¥41,002 thousand for the years ended March 31, 2014, 2015 and 2016, respectively. Capital Leases— The Company sold ATM and data communications equipment procured from third party vendors, which amounted to ¥799,232 thousand and ¥2,807,592 thousand, to the leasing companies for the years ended March 31, 2015 and 2016, respectively, and concurrently entered into capital lease arrangements to lease the equipment back, which resulted in total lease payments of ¥819,680 thousand due by March 2020 and ¥2,755,182 thousand due by April 2022, related to the lease contracts made in the years ended March 31, 2015 and 2016, respectively. The fair values of the assets upon execution of the capital lease arrangements and accumulated depreciation amounted to ¥24,271,434 thousand and ¥16,614,912 thousand, respectively, at March 31, 2015 and ¥28,328,721 thousand and ¥18,728,508 thousand, respectively, at March 31, 2016. Lessee Future Minimum Lease Payments— Thousands of Yen Connectivity Lines Operating Leases Other Operating Leases Capital Leases Year ending March 31: 2017 ¥ 870,720 ¥ 3,579,008 ¥ 4,142,275 2018 673,610 981,812 3,074,462 2019 309,032 173,907 2,326,311 2020 – 132,523 1,394,337 2021 – 109,581 886,236 2022 and thereafter – 274,562 338,174 Total minimum lease payments ¥ 1,853,362 ¥ 5,251,393 12,161,795 Less amounts representing interest (428,042 ) Present value of net minimum capital lease payments 11,733,753 Less current portion (3,954,386 ) Noncurrent portion ¥ 7,779,367 Sales-Type Leases— Thousands of Yen 2015 2016 Year ending March 31: 2017 ¥ 845,336 2018 751,865 2019 617,127 2020 401,579 2021 352,438 2022 and thereafter 379,599 Total minimum lease payments to be received* ¥ 1,488,656 ¥ 3,347,944 Estimated residual value of leased property (unguaranteed) – – Less unearned income (24,278 ) (89,407 ) Net investment in sales-type leases 1,464,378 3,258,537 Less current portion (702,219 ) (813,689 ) Non-current net investment in sales-type leases ¥ 762,159 ¥ 2,444,848 *Estimated executory costs, including profit thereon, of ¥345,698 thousand and ¥646,079 thousand were excluded from total minimum lease payments to be received as of March 31, 2015 and 2016, respectively. |
Note 10 - Asset Retirement Obli
Note 10 - Asset Retirement Obligations | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | 10. ASSET RETIREMENT OBLIGATIONS The asset retirement obligations are principally related to leasehold office premises and a data center which, at the end of the lease, the Company is contractually obligated to restore. The movements in asset retirement obligations for the years ended March 31, 2015 and 2016 were as follows: Thousands of Yen 2015 2016 Balance at beginning of the year ¥ 513,440 ¥ 568,869 Liabilities incurred 287,036 45,169 Liabilities settled (243,109 ) (31,321 ) Accretion expense 11,502 12,466 Balance at end of the year ¥ 568,869 ¥ 595,183 |
Note 11 - Borrowings
Note 11 - Borrowings | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11. BORROWINGS Short-term borrowings at March 31, 2015 and 2016 consisted of bank overdrafts that bear fixed rate interest. The weighted average rates at March 31, 2015 and 2016 were 0.568% and 0.498%, respectively. The Company entered into bank overdraft agreements with certain Japanese banks for which the unused balance outstanding as of March 31, 2016 was ¥10,750,000 thousand. |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 12. INCOME TAXES Income taxes imposed by the national, prefectural and municipal governments of Japan resulted in a normals tatutory rate of approximately 38.3% for the year ended March 31, 2014 and 35.9% for the year ended March 31, 2015 and 33.5% for the year ended March 31, 2016. Income from operations before income tax expense and equity in net income of equity method investees and income tax expense for the years ended March 31, 2014, 2015 and 2016 consist of the following components: Thousands of Yen 2014 2015 2016 Income from operations before income tax expense and equity in net income of equity method investees: Domestic ¥ 6,406,153 ¥ 5,407,802 ¥ 6,460,898 Foreign (131,262 ) (268,810 ) (267,564 ) Total ¥ 6,274,891 ¥ 5,138,992 ¥ 6,193,334 Income taxes ―current: Domestic ¥ 2,453,549 ¥ 1,720,557 ¥ 1,929,139 Foreign 41,582 (34,922 ) 5,277 Total ¥ 2,495,131 ¥ 1,685,635 ¥ 1,934,416 Income taxes ―deferred: Domestic ¥ (729,822 ) ¥ 181,088 ¥ 255,992 Foreign 29,996 30,142 (6,877 ) Total ¥ (699,826 ) ¥ 211,230 ¥ 249,115 IIJ and domestic subsidiaries adopted the consolidated tax declaration in the fiscal year ended March 31, 2009. On March 20, 2014, amendments to Japanese tax regulations were enacted into law. As a result, the normal Japanese statutory rate was reduced from 38.3% to 35.9% from the fiscal year beginning April 1, 2014. On March 31, 2015, new amendments to Japanese tax regulations were enacted into law. As a result, the normal Japanese statutory rate was reduced from 35.9% to 34.2% from the fiscal year beginning April 1, 2015. On March 31, 2016, further amendments to Japanese tax regulations were enacted into law. As a result, the normal Japanese statutory rate will be reduced to 31.7% from the fiscal year beginning April 1, 2016, 31.1% from the fiscal year beginning April 1, 2017 and 30.9% from the fiscal year beginning April 1, 2018. The effect of the changes in the tax rates on the balance of deferred tax assets and liabilities was an increase of income tax expense by ¥106,487 thousand, ¥51,788 thousand and ¥23,183 thousand for the years ended March 31, 2014, 2015 and 2016, respectively. The approximate effect of temporary differences and carryforwards giving rise to deferred tax balances at March 31, 2015 and 2016 was as follows: Thousands of Yen 2015 2016 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Unrealized gains on available-for-sale securities – ¥ 832,426 – ¥ 620,755 Capital leases ¥ 141,255 – ¥ 130,365 – Accrued expenses 995,253 – 933,947 – Retirement and pension cost 960,151 – 1,102,215 – Allowance for doubtful accounts 58,760 – 56,534 – Depreciation 101,652 – 72,109 – Net loss on other investments 230,794 – 205,373 – Operating loss carryforwards 1,276,690 – 947,031 – Transactions in transit* – 106,631 – 96,714 Impairment loss on telephone rights 74,268 – 67,102 – Accrued enterprise tax 86,448 – 120,793 – Asset retirement obligation 194,553 – 183,912 – Deferred revenue 353,098 – 387,481 – Customer relationships – 1,299,335 – 1,058,578 Tax deduction of goodwill – 810,172 – 791,377 Excess of tax deductible goodwill over the reported amount of goodwill 88,769 – – – Trademark – 38,413 – 29,664 Investments in equity method investees – 241,210 – 291,266 Investments in funds 100,045 – 83,818 – Asset retirement cost – 160,293 – 146,266 Other 333,752 85,128 329,491 68,941 Total 4,995,488 3,573,608 4,620,171 3,103,561 Valuation allowance (611,997 ) – (627,693 ) – Total ¥ 4,383,491 ¥ 3,573,608 ¥ 3,992,478 ¥ 3,103,561 *This item arises from transactions between IIJ and foreign subsidiaries, which were recorded in the different periods as a result of the difference in each company’s fiscal year-end. As of March 31, 2015 and 2016, the valuation allowance for deferred tax assets related principally to operating loss carryforwards, at amounts which are not considered more likely than not to be realized. The net changes in the valuation allowance for deferred tax assets were a decrease of ¥933,623 thousand, an increase of ¥183,813 thousand and an increase of ¥15,696 thousand for the years ended March 31, 2014, 2015 and 2016, respectively. Undistributed earnings of foreign subsidiaries that are deemed to be permanently invested amounted to ¥458,233 thousand as of March 31, 2016. It is not practicable to calculate the unrecognized deferred tax liability on such undistributed earnings. As of March 31, 2016, certain subsidiaries had tax operating loss carryforwards as follows: Thousands of Yen Expired in Year Ending March 31 Enterprise Tax Subject to Consolidation Tax Filing Inhabitant Tax Subject to Consolidation Tax Filing Others 2017 – – – 2018 – – ¥ 79,790 2019 – – 214,286 2020 – – 829,986 2021 and thereafter ¥ 253,286 ¥ 18,663 1,800,221 Total ¥ 253,286 ¥ 18,663 ¥ 2,924,283 “Others” consists of loss carryforwards of subsidiaries not subject to consolidation tax filing, which were composed of ¥652,326 thousand in Japan, ¥1,281,086 thousand in the United States of America, and ¥990,871 thousand in other countries. These loss carryforwards are available to offset future taxable income, and will expire in the period ending March 31, 2024 in Japan and December 31, 2035 in the United States of America. The loss carryforwards in other countries will expire in the period ending December 31, 2020 or have an indefinite carryforward period. A reconciliation between the amount of reported income taxes and the amount of income taxes computed using the normal statutory rate for each of the three years in the period ended March 31, 2016 is as follows: Thousands of Yen 2014 2015 2016 Amount computed by using normal Japanese statutory tax rate ¥ 2,403,283 ¥ 1,844,898 ¥ 2,074,767 Increase (decrease) in taxes resulting from: Expenses not deductible for tax purpose 102,634 76,258 93,262 Inhabitant tax—per capita 37,122 39,114 39,538 Change in valuation allowance (957,182 ) 159,163 15,696 Tax effects on investments in equity method investees 65,489 19,650 48,368 Enterprise tax—not based on income 82,191 90,086 146,883 Tax rate change 106,487 51,788 23,183 Tax credit – (232,834 ) (269,145 ) Tax refund by loss carryback – (32,275 ) – Other—net (44,719 ) (118,983 ) 10,979 Income tax expense as reported ¥ 1,795,305 ¥ 1,896,865 ¥ 2,183,531 There was no unrecognized tax benefit for the years ended March 31, 2015 and 2016. The Company does not reasonably expect that the unrecognized tax benefit will change significantly within the next twelve months. The Company has open tax years subject to examination by major tax jurisdictions from the year ended March 31, 2013 in Japan and from the year ended December 31, 2006 in the United States of America. |
Note 13 - Retirement and Pensio
Note 13 - Retirement and Pension Plans | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 13. RETIREMENT AND PENSION PLANS IIJ and certain subsidiaries have unfunded severance benefit, noncontributory defined benefit pension and defined contribution plans which together cover substantially all of their employees who are not directors. The defined benefit pension plan is operated under the Defined Benefit Corporate Pension Law. The following information regarding net periodic pension cost and accrued pension cost also includes the unfunded severance benefit plans. Under the severance and defined benefit pension plans, all of IIJ and IIJ-Global’s employees are entitled, upon retirement with 20 years or more of service, to a 10-year period of annuity payments from age 60 (or lump-sum severance indemnities) based on the rate of pay at the time of retirement, length of service and certain other factors. IIJ and IIJ-Global's employees who do not meet these conditions are entitled to lump-sum severance indemnities. Net periodic pension cost for the years ended March 31, 2014, 2015 and 2016 included the following components: Thousands of Yen 2014 2015 2016 Service cost ¥ 542,584 ¥ 573,956 ¥ 648,944 Interest cost 45,418 73,902 67,525 Expected return on plan assets (48,303 ) (63,037 ) (87,909 ) Amortization of transition obligation 369 369 365 Amortization of actuarial gain – (2,782 ) (2,971 ) Net periodic pension cost ¥ 540,068 ¥ 582,408 ¥ 625,954 Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended March 31, 2014, 2015 and 2016 are as follows: Thousands of Yen 2014 2015 2016 Net actuarial loss (gain) ¥ (63,775 ) ¥ 127,065 ¥ 585,332 Amortization of transition obligation in net periodic pension cost (369 ) (369 ) (365 ) Amortization of actuarial gain – 2,782 2,971 Amounts recognized in other comprehensive income ¥ (64,144 ) ¥ 129,478 ¥ 587,938 Total net periodic pension cost and amounts recognized in other comprehensive income ¥ 475,924 ¥ 711,886 ¥ 1,213,892 F- The change in benefit obligation and plan assets for the years ended March 31, 2015 and 2016 and the amounts recognized in the consolidated balance sheets as of March 31, 2015 and 2016 are as follows: Thousands of Yen 2015 2016 Change in benefit obligation: Benefit obligation at beginning of year ¥ 4,426,598 ¥ 5,285,093 Service cost 573,956 648,944 Interest cost 73,902 67,525 Actuarial loss 283,860 480,755 Benefit paid (73,223 ) (94,207 ) Benefit obligation at end of year 5,285,093 6,388,110 Change in plan assets: Fair value of plan assets at beginning of year 2,424,499 2,930,310 Actual return (loss) on plan assets 219,832 (16,667 ) Employer contribution 322,826 334,252 Benefits paid (36,847 ) (53,996 ) Fair value of plan assets at end of year 2,930,310 3,193,899 Funded status at end of year ¥ (2,354,783 ) ¥ (3,194,211 ) Amounts recognized in the consolidated balance sheets as of March 31, 2015 and 2016 consist of: Thousands of Yen 2015 2016 Accrued retirement and pension costs―noncurrent ¥ (2,354,783 ) ¥ (3,194,211 ) Net amount recognized ¥ (2,354,783 ) ¥ (3,194,211 ) The accumulated benefit obligation for the Company’s defined benefit pension plans as of March 31, 2015 and 2016 was ¥3,323,739 thousand and ¥4,084,419 thousand, respectively. The aggregate projected benefit obligation and aggregate fair value of plan assets for plans with projected benefit obligations in excess of plan assets were ¥5,285,093 thousand and ¥2,930,310 thousand, respectively, at March 31, 2015 and ¥6,388,110 thousand and ¥3,193,899 thousand, respectively, at March 31, 2016, respectively. The aggregate accumulated benefit obligations of plans with no plan assets were ¥90,851 thousand and ¥104,051 thousand at March 31, 2015 and 2016, respectively. F- Amounts recognized in accumulated other comprehensive income at March 31, 2015 and 2016 consist of: Thousands of Yen 2015 2016 Net actuarial loss ¥ 371,122 ¥ 959,426 Obligation at transition 365 – Total ¥ 371,487 ¥ 959,426 The unrecognized net loss and the unrecognized net obligation at the date of initial application are being amortized over 14 years and 21 years, respectively. The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic pension cost in the fiscal year ending March 31, 2017 is ¥24,584 thousand. Benefit Obligations Net Periodic Costs 2015 2016 2014 2015 2016 Discount rate 1.3 % 0.7 % 1.2 % 1.7 % 1.3 % Expected long-term rate of return on plan assets 2.4 2.6 3.0 Rate of increase in compensation 3.2 3.1 3.3 3.2 3.2 The Company sets the discount rate assumption annually at March 31 based on high-quality fixed income securities reflecting the estimated timing of benefit payments. F- The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid. Years Ending March 31 Thousands of Yen 2017 ¥ 94,235 2018 119,570 2019 132,585 2020 151,505 2021 195,246 2022 –2026 1,708,740 Total ¥ 2,401,881 The Company expects to contribute ¥334,252 thousand to its defined benefit pension plan in the year ending March 31, 2017. The Company’s defined contribution plan, which was established on April 1, 2009, covers substantially all its employees. The Company contributes 1.6% of its employees’ base salaries to the plan on a monthly basis. No employee contributions to the plan are allowed. Contributions to the plan were ¥125,195 thousand, ¥134,591 thousand and ¥138,372 thousand for the years ended March 31, 2014, 2015 and 2016, respectively. The Company's funding policies with respect to the noncontributory plan are generally to contribute amounts considered tax deductible under applicable income tax regulations. Plan assets, including life insurance pooled investment portfolios, consist of Japanese and U.S. government bonds, other debt securities and marketable equity securities. Life insurance pooled investment portfolios are managed by an insurance company and guarantee a minimum rate of return. The Company’s investment strategy for the plan assets is to manage the assets in order to pay retirement benefits to plan participants from the Company over the life of the plans. This is accomplished by identifying and managing the exposure to various market risks, and diversifying investments in various asset classes based on a portfolio determined by the insurance company in order to maximize long-term rate of return, while considering the liquidity needs of the plans. The plan is permitted to use derivative instruments only for the purpose of hedging. Both margin trading and real-estate investment are prohibited in principle. The Company mitigates the credit risk of investments by establishing guidelines with the insurance company. These guidelines are monitored periodically by the Company for compliance. The projected allocation of the plan assets managed by the insurance company is developed in consideration of the expected long-term investment returns for each category of the plan assets. Approximately 63.0%, 35.0%, and 2.0% of the plan assets excluding pooled investment portfolios will be allocated to debt securities, equity securities and other financial instruments, respectively, to moderate the level of volatility in pension plan asset returns and reduce risks. 50% of the employer’s contribution to the plan during the year ending March 31, 2017 will be allocated to life insurance pooled investment portfolios and the other 50% will be allocated to the aforementioned investments. F- The following table summarizes the basis used to measure the Company’s pension plan assets at fair value: Level 1—Inputs are quoted prices in active markets for identical assets or liabilities. Level 2—Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3—Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable, which reflect the reporting entity’s own assumptions about the assumptions that market participants would use in establishing a price. Basis of Fair Value Measurement Thousands of Yen of Pension Plan Assets at March 31, 2015 Level 1 Level 2 Level 3 Total Equity securities: Japanese equity ¥ 417,833 – – ¥ 417,833 U.S. equity 124,670 – – 124,670 Other equity―developed countries 78,027 – – 78,027 Total equity securities 620,530 – – 620,530 Debt securities: Japanese government and municipalities – ¥ 495,637 – 495,637 Japanese corporate bonds―investment grade – 256,954 – 256,954 U.S. government – 110,851 – 110,851 Other government―developed countries – 152,927 – 152,927 Residential mortgage-backed – 19,256 – 19,256 Total debt securities – 1,035,625 – 1,035,625 Other financial instruments* – 1,109,010 – 1,109,010 Cash 165,145 – – 165,145 Total assets at fair value ¥ 785,675 ¥ 2,144,635 – ¥ 2,930,310 F- Basis of Fair Value Measurement Thousands of Yen of Pension Plan Assets at March 31, 2016 Level 1 Level 2 Level 3 Total Equity securities: Japanese equity ¥ 469,780 – – ¥ 469,780 U.S. equity 144,147 – – 144,147 Other equity―developed countries 84,400 – – 84,400 Total equity securities 698,327 – – 698,327 Debt securities: Japanese government and municipalities – ¥ 577,488 – 577,488 Japanese corporate bonds―investment grade – 241,744 – 241,744 U.S. government – 118,099 – 118,099 Other government―developed countries – 158,547 – 158,547 Residential mortgage-backed – 21,381 – 21,381 Total debt securities – 1,117,259 – 1,117,259 Other financial instruments* – 1,267,090 – 1,267,090 Cash 111,223 – – 111,223 Total assets at fair value ¥ 809,550 ¥ 2,384,349 – ¥ 3,193,899 * Other financial instruments are life insurance pooled investment portfolios. Pension plan assets classified as Level 1 are comprised principally of equity securities, which are valued using an unadjusted quoted market price in active markets with sufficient volume and frequency of transactions. Pension plan assets classified as Level 2 are comprised principally of government bonds, corporate bonds and life insurance pooled investment portfolios which are valued based on quoted prices obtained from a well-established third-party. The bonds are traded in less active markets and the fair values are based on the price a dealer would pay for the bonds. IIJ and one subsidiary also participate in a contributory multi-employer pension plan, the Japan Computer Information Service Employee's Pension Fund (the "Multi-Employer Plan"), which covers substantially all of their employees. Contributions due and paid during the years ended March 31, 2014, 2015 and 2016 under the Multi-Employer Plan, including its substitutional portion, amounted to ¥265,470 thousand, ¥293,132 thousand and ¥123,674 thousand, respectively. The Company’s contribution did not represent more than 5% of total contributions to the plan during the years ended March 31, 2014, 2015 and 2016. The plan is not subject to a funding improvement and was more than 80% funded as of March 31, 2015. The total plan assets were ¥307,788,655 thousand as of March 31, 2016. It was not practical to obtain additional information for the plan for the year ended March 31, 2016. F- The amount of retirement benefits for retiring directors and company auditors must be approved by the shareholders. IIJ has a retirement plan for full-time company auditors. The Company recorded a liability for retirement benefit for company auditors of ¥5,530 thousand and ¥7,530 thousand, which would be required if they were all to retire at March 31, 2015 and 2016, respectively. IIJ had a retirement benefit plan for full-time directors, which was abolished in June 2011. The allowance for retirement benefit amounted to ¥255,330 thousand in consideration of their services provided up to the date of abolition of the plan, and this amount will be reserved until each director’s retirement date. IIJ’s subsidiary also has a retirement benefit plan for full-time directors. The Company recorded a liability for retirement benefit for full-time directors of ¥430,638 thousand and ¥379,685 thousand, which would be required if they were all to retire at March 31, 2015 and 2016, respectively. The retirement benefits paid to a retired company auditor was ¥2,010 thousand for the year ended March 31, 2014. |
Note 14 - Shareholders' Equity
Note 14 - Shareholders' Equity | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 14. SHAREHOLDERS' EQUITY Japanese companies are subject to the Corporation Law of Japan (the “Corporation Law”). The significant provisions in the Corporation Law that affect financial and accounting matters are summarized below: Dividends Under the Corporation Law, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the shareholders meeting. For companies that meet certain criteria such as: (1) having a Board of Directors, (2) having independent auditors, (3) having a Board of Company Auditors, and (4) the term of service of the directors is prescribed as one year rather than two years of normal term by its articles of incorporation, the Board of Directors may declare dividends (except for dividends in kind) at any time during the fiscal year if the company has prescribed so in its articles of incorporation. However, the Company cannot do so because it does not meet criteria (4) above. The Corporation Law permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to a certain limitation and additional requirements. Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles of incorporation of the company so stipulate. The Corporation Law provides certain limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after dividends must be maintained at no less than ¥3 million. At the 14 th Increases / decreases and transfer of common stock, reserve and surplus The Corporation Law requires that an amount equal to 10% of dividends must be appropriated as legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity account charged upon the payment of such dividends until the total of aggregate amount of legal reserve and additional paid-in capital equals 25% of common stock. Under the Corporation Law, the total amount of additional paid-in capital and legal reserve may be reversed without limitation. The Corporation Law also provides that common stock, legal reserve, additional paid-in capital, and other capital surplus and retained earnings can be transferred among the accounts under certain conditions upon resolution of shareholders. Treasury stock and treasury stock acquisition rights The Corporation Law also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to the shareholders which is determined by a specific formula. The Corporation Law also provides that companies can purchase both treasury stock acquisition rights and treasury stock. The amount of retained earnings available for dividends under the Corporation Law is based on the amount of retained earnings recorded in IIJ’s general books of account prepared using accepted Japanese accounting practices. The adjustments included in the accompanying consolidated financial statements for U.S. GAAP purposes but not recorded in the general books of account have no effect on the determination of retained earnings available for dividends under the Corporation Law. Retained earnings available for dividends amounted to ¥24,895,644 thousand at March 31, 2016. IIJ's equity in undistributed earnings of affiliated companies accounted for by the equity method included in retained earnings amounted to ¥869,770 thousand at March 31, 2016. On June 26, 2013, IIJ’s shareholders approved the payment of a cash dividend to shareholders of record at March 31, 2013 of ¥10 per share or the aggregate amount of ¥405,368 thousand. F- On November 8, 2013, the Board of Directors of IIJ resolved the payment of a cash dividend to shareholders of record at September 30, 2013 of ¥11 per share or the aggregate amount of ¥505,329 thousand. On June 25, 2014, IIJ’s shareholders approved the payment of a cash dividend to shareholders of record at March 31, 2014 of ¥11 per share or the aggregate amount of ¥505,330 thousand. On November 7, 2014, the Board of Directors of IIJ resolved the payment of a cash dividend to shareholders of record at September 30, 2014 of ¥11 per share or the aggregate amount of ¥505,365 thousand. On June 26, 2015, IIJ’s shareholders approved the payment of a cash dividend to shareholders of record at March 31, 2015 of ¥11 per share or the aggregate amount of ¥505,365 thousand. On November 9, 2015, the Board of Directors of IIJ resolved the payment of a cash dividend to shareholders of record at September 30, 2015 of ¥11 per share or the aggregate amount of ¥505,479 thousand. Stock Option Plans On May 26, 2011, IIJ’s board of directors resolved to introduce stock compensation-type stock options for executive officers of IIJ. On June 28, 2011, IIJ’s ordinary general meeting of shareholders approved the introduction of stock compensation-type stock options for directors of IIJ. Stock compensation-type stock options, which are stock acquisition rights entitling holders to acquire shares upon exercise, at an exercise price of one yen per share, were allocated to directors and executive officers as a substitute for the retirement allowance plan for them and to further promote their motivation and incentives to contribute to the enhancement of the mid- to long-term continuous business performance and corporate value. The stock acquisition rights become exercisable after a service period of one year and are exercisable up to 29 years from the date of vesting. The stock acquisition rights may be exercised only within 10 days from the day immediately following the day on which the person loses his or her position as either a director or an executive officer. On July 11, 2013, IIJ granted 89 stock options which were the same type of options granted in 2012 to directors and executive officers. The fair value per option at the date of grant was ¥647,000. On July 10, 2014, IIJ granted 128 stock options which were the same type of options granted in 2013 to directors and executive officers. The fair value per option at the date of grant was ¥422,600. On July 13, 2015, IIJ granted 151 stock options which were the same type of options granted in 2014 to directors and executive officers. The fair value per option at the date of grant was ¥369,200. The fair value of the stock acquisition rights used to recognize compensation expense for the fiscal years ended March 31, 2014, 2015 and 2016 were estimated using the Black-Scholes option-pricing model with the following assumptions: 2014 2015 2016 Assumptions: Risk-free interest rate 1.314 % 0.980 % 0.818 % Expected lives (years) 15 15 15 Expected volatility 55.861 % 55.217 % 53.794 % Expected dividends 0.535 % 0.909 % 1.023 % F- A summary of the activities for the stock acquisition rights plan for the years ended March 31, 2015 and 2016 is as follows: Yen Years Thousands of Yen Number of Options Number of Shares Exercise Price Remaining Life Total Intrinsic Value Unexercised options outstanding—March 31, 2014 346 69,200 ¥ 1 Granted 128 25,600 1 Exercised (16 ) (3,200 ) 1 Forfeited or expired – – – Unexercised options outstanding—March 31, 2015 458 91,600 1 Granted 151 30,200 1 Exercised (52 ) (10,400 ) 1 Forfeited or expired – – – Unexercised options outstanding—March 31, 2016 557 111,400 1 Exercisable options—March 31, 2016 406 81,200 1 26.80 ¥ 190,705 Expected to vest after July 14, 2016 151 30,200 1 29.31 70,927 The Company recognized stock compensation cost on a straight-line basis over the requisite service period. The Company recognized ¥53,542 thousand, ¥54,965 thousand and ¥55,337 thousand as stock compensation cost for the fiscal years ended March 31, 2014, 2015 and 2016, respectively. The unrecognized expense of ¥13,937 thousand is expected to be recognized over the next 3 months. IIJ absorbed IIJ-Exlayer on January 1, 2014 with the allotment of 104 shares of IIJ’s treasury stock to the shareholders of IIJ-Exlayer. Net income attributable to IIJ’s shareholders and transfers from the noncontrolling interests The following schedule represents the effects of changes in IIJ’s ownership interest in its subsidiaries in the Company’s shareholder’s equity for the years ended March 31, 2014, 2015 and 2016. Thousands of Yen 2014 2015 2016 Net income attributable to IIJ ¥ 4,442,237 ¥ 3,322,081 ¥ 4,038,282 Transfers from the noncontrolling interests Increase in additional paid-in capital for acquisition of noncontrolling interest of IIJ-Exlayer 99 – – Net transfers from noncontrolling interest 99 – – Change from net income attributable to IIJ and transfers from noncontrolling interests ¥ 4,442,336 ¥ 3,322,081 ¥ 4,038,282 |
Note 15 - Other Comprehensive I
Note 15 - Other Comprehensive Income (Loss) | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 15. OTHER COMPREHENSIVE INCOME (LOSS) Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments for the years ended March 31, 2014, 2015 and 2016 are as follows: Thousands of Yen Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Year ended March 31, 2014: Foreign currency translation adjustments ¥ 419,557 – ¥ 419,557 Unrealized holding gain (loss) on securities: Amount arising during the period 1,656,759 ¥ (594,776 ) 1,061,983 Less: Reclassification adjustments for gains included in net income (107,655 ) 41,232 (66,423 ) Other – (7,421 ) (7,421 ) Net unrealized holding gain (loss) during the period 1,549,104 (560,965 ) 988,139 Defined benefit pension plans: Amount arising during the period 63,775 (22,896 ) 40,879 Less: Reclassification adjustments for losses included in net income 369 (133 ) 236 Net defined benefit pension plans 64,144 (23,029 ) 41,115 Other comprehensive income (loss) ¥ 2,032,805 ¥ (583,994 ) ¥ 1,448,811 Year ended March 31, 2015: Foreign currency translation adjustments ¥ 243,538 – ¥ 243,538 Unrealized holding gain (loss) on securities: Amount arising during the period 124,370 ¥ (44,649 ) 79,721 Less: Reclassification adjustments for gains included in net income (35,934 ) 12,900 (23,034 ) Other – 4,903 4,903 Net unrealized holding gain (loss) during the period 88,436 (26,846 ) 61,590 Defined benefit pension plans: Amount arising during the period (127,065 ) 45,616 (81,449 ) Less: Reclassification adjustments for gains included in net income (2,413 ) 862 (1,551 ) Net defined benefit pension plans (129,478 ) 46,478 (83,000 ) Other comprehensive income (loss) ¥ 202,496 ¥ 19,632 ¥ 222,128 F- Thousands of Yen Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Year ended March 31, 2016: Foreign currency translation adjustments ¥ (67,652 ) – ¥ (67,652 ) Unrealized holding gain (loss) on securities: Amount arising during the period (417,400 ) ¥ 128,977 (288,423 ) Less: Reclassification adjustments for losses included in net income 3,965 (1,328 ) 2,637 Other – 9,834 9,834 Net unrealized holding gain (loss) during the period (413,435 ) 137,483 (275,952 ) Defined benefit pension plans: Amount arising during the period (585,332 ) 192,576 (392,756 ) Less: Reclassification adjustments for gains included in net income (2,606 ) 944 (1,662 ) Net defined benefit pension plans (587,938 ) 193,520 (394,418 ) Other comprehensive income (loss) ¥ (1,069,025 ) ¥ 331,003 ¥ (738,022 ) The changes in accumulated other comprehensive income (loss) by component for the years ended March 31, 2014, 2015 and 2016 are as follows: Thousands of Yen Unrealized holding gain on securities Defined benefit pension plans Foreign currency translation adjustments Total Year ended March 31, 2013: ¥ 495,217 ¥ (187,318 ) ¥ (44,129 ) ¥ 263,770 Other comprehensive income before reclassifications 1,054,562 40,879 419,701 1,515,142 Amounts reclassified out of accumulated other comprehensive income (66,423 ) 236 – (66,187 ) Other comprehensive income 988,139 41,115 419,701 1,448,955 Other – – 61 61 Year ended March 31, 2014: ¥ 1,483,356 ¥ (146,203 ) ¥ 375,633 ¥ 1,712,786 Thousands of Yen Unrealized holding gain on securities Defined benefit pension plans Foreign currency translation adjustments Total Year ended March 31, 2014: ¥ 1,483,356 ¥ (146,203 ) ¥ 375,633 ¥ 1,712,786 Other comprehensive income before reclassifications 84,624 (81,449 ) 247,273 250,448 Amounts reclassified out of accumulated other comprehensive income (23,034 ) (1,551 ) – (24,585 ) Other comprehensive income (loss) 61,590 (83,000 ) 247,273 225,863 Year ended March 31, 2015: ¥ 1,544,946 ¥ (229,203 ) ¥ 622,906 ¥ 1,938,649 F- Thousands of Yen Unrealized holding gain on securities Defined benefit pension plans Foreign currency translation adjustments Total Year ended March 31, 2015: ¥ 1,544,946 ¥ (229,203 ) ¥ 622,906 ¥ 1,938,649 Other comprehensive loss before reclassifications (278,589 ) (392,756 ) (71,610 ) (742,955 ) Amounts reclassified out of accumulated other comprehensive income 2,637 (1,662 ) – 975 Other comprehensive loss (275,952 ) (394,418 ) (71,610 ) (741,980 ) Year ended March 31, 2016: ¥ 1,268,994 ¥ (623,621 ) ¥ 551,296 ¥ 1,196,669 The amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, with presentation location, for the years ended March 31, 2014, 2015 and 2016, are as follows: Thousands of Yen 2014 2015 2016 Location Other comprehensive income (loss) components: Unrealized holding gain on securities ¥ 107,655 ¥ 35,934 – Net gain on sales of other investments – – ¥ (3,965 ) Impairment of other investments (41,232 ) (12,900 ) 1,328 Income tax expense 66,423 23,034 (2,637 ) Net income Defined benefit pension plans (369 ) 2,413 2,606 Net periodic pension costs (Note 13) 133 (862 ) (944 ) Income tax expense (236 ) 1,551 1,662 Net income Total amount reclassified ¥ 66,187 ¥ 24,585 ¥ (975 ) |
Note 16 - Basic and Diluted Net
Note 16 - Basic and Diluted Net Income Per Common Share | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 16. BASIC AND DILUTED NET INCOME PER COMMON SHARE Basic and diluted net income attributable to Internet Initiative Japan Inc. per common share for the three years ended March 31, 2014, 2015 and 2016 is as follows: Thousands of Yen 2014 2015 2016 Numerator: Net income attributable to Internet Initiative Japan Inc.―basic and diluted ¥ 4,442,237 ¥ 3,322,081 ¥ 4,038,282 Number of Shares 2014 2015 2016 Denominator: Weighted-average common shares outstanding―basic 44,306,680 45,942,291 45,950,098 Dilutive effect of stock options 54,403 72,446 93,285 Weighted-average common shares outstanding―diluted 44,361,083 46,014,737 46,043,383 F- Yen 2014 2015 2016 Basic net income attributable to Internet Initiative Japan Inc. per common share ¥ 100.26 ¥ 72.31 ¥ 87.88 Diluted net income attributable to Internet Initiative Japan Inc. per common share ¥ 100.14 ¥ 72.20 ¥ 87.71 |
Note 17 - Commitments And Conti
Note 17 - Commitments And Contingent Liabilities | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 17. COMMITMENTS AND CONTINGENT LIABILITIES The Company is involved in litigation and claims arising in the ordinary course of business. In evaluating the matter on an ongoing basis, the Company takes into account amounts already accrued on the balance sheet. The Company believes that an exposure to loss does not exist in excess of the amount accrued and the negative adverse outcome of such litigation and claims would not have a significant impact on the consolidated financial position or results of operations. On September 1, 2010, IIJ-Global entered into a Solutions Engagement Agreement with IBM Japan Ltd, IIJ-Global’s largest sales partner. This agreement, which establishes the basis for a procurement relationship between IIJ-Global and IBM Japan, contains indemnification for IIJ-Global to perform services, functions, responsibilities and others in a way that were being performed by AT&T Japan. In May 2006, January 2007, January 2008 and January 2015, IIJ made agreements (four agreements in total) for investing in funds which invest in mainly unlisted stocks with an investment advisory company. IIJ committed to provide up to $5,000 thousand for each fund ($20,000 thousand in total) upon the request of the fund until January 31, 2027. IIJ has provided a total of $14,093 thousand to them as of March 31, 2016. The amounts invested in their funds were recorded as other investments in the Company’s consolidated balance sheets. In April 2013, IIJ made an agreement for investing in a corporation reconstruction fund with an investment advisory company. IIJ committed to provide up to ¥100,000 thousand upon the request of the fund until April 23, 2018. IIJ has provided a total of ¥87,404 thousand to the fund as of March 31, 2016. The amounts invested in the fund were recorded as other investments in the Company’s consolidated balance sheets. |
Note 18 - Financial Instruments
Note 18 - Financial Instruments | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | 18 . Fair Value— F- Thousands of Yen 2015 2016 Carrying Amount Fair Value Carrying Amount Fair Value Other investments for which it is: Practicable to estimate fair value ¥ 4,314,481 ¥ 4,314,481 ¥ 3,944,397 ¥ 3,944,397 Not practicable 2,346,225 – 2,004,344 – Noncurrent refundable insurance policies (other assets) 110,894 110,894 155,727 155,727 Cash and cash equivalents were classified as Level 1 instruments and short-term borrowings were classified as Level 2 instruments. Other investments for which it is practicable to estimate fair value are available-for-sales equity and debt securities disclosed in Note 4. Other investments for which it is not practicable to estimate fair value were comprised of non-marketable equity securities of ¥853,629 thousand and investments in funds of ¥1,492,596 thousand as of March 31, 2015 and non-marketable equity securities of ¥1,019,685 thousand and investments in funds of ¥984,659 thousand as of March 31, 2016. |
Note 19 - Fair Value Measuremen
Note 19 - Fair Value Measurements | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 19. FAIR VALUE MEASUREMENTS ASC 820, “Fair Value Measurement” defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value as follows: Level 1—Inputs are quoted prices in active markets for identical assets or liabilities. Level 2—Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3—Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable, which reflect the reporting entity’s own assumptions about the assumptions that market participants would use in establishing a price. There were no transfers between Level 1 and Level 2 for the years ended March 31, 2015 and 2016. Assets Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets that are measured at fair value on a recurring basis at March 31, 2015 and 2016, consistent with the fair value hierarchy provisions of ASC 820. F- Thousands of Yen March 31, 2015 Level 1 Level 2 Level 3 Total Assets— Available-for-sale securities—equity securities ¥ 4,212,571 – – ¥ 4,212,571 Available-for-sale securities—debt securities – ¥ 101,910 – 101,910 Total assets ¥ 4,212,571 ¥ 101,910 – ¥ 4,314,481 Thousands of Yen March 31, 2016 Level 1 Level 2 Level 3 Total Assets— Available-for-sale securities—equity securities ¥ 3,830,847 – – ¥ 3,830,847 Available-for-sale securities—debt securities – ¥ 113,550 – 113,550 Total assets ¥ 3,830,847 ¥ 113,550 – ¥ 3,944,397 Available-for-sale securities are comprised of marketable equity and debt securities. Marketable equity securities are listed on Japan and Hong Kong securities markets and are valued using an unadjusted quoted market price in active markets with sufficient volume and frequency of transactions. Marketable debt securities are valued using quoted prices obtained from financial institutions. Assets Measured at Fair Value on a Nonrecurring Basis Thousands of Yen March 31, 2015 Level 1 Level 2 Level 3 Impairment Loss Assets: Non-marketable securities—equity securities – – ¥ 2,435 ¥ 29,117 – – ¥ 2,435 ¥ 29,117 Thousands of Yen March 31, 2016 Level 1 Level 2 Level 3 Impairment Loss Assets: Non-marketable securities—equity securities – – ¥ 235 ¥ 10,765 Trademark – – 96,000 11,000 – – ¥ 96,235 ¥ 21,765 Non-marketable equity securities with a carrying amount of ¥31,552 thousand, which was included in other investments in the balance sheets, were written down to the fair value of ¥2,435 thousand, resulting in an other-than-temporary impairment charge of ¥29,117 thousand, which was included in the Company’s statement of income for the year ended March 31, 2015. Non-marketable equity securities with a carrying amount of ¥11,000 thousand, which was included in other investments in the balance sheets, were written down to the fair value of ¥235 thousand, resulting in an other-than-temporary impairment charge of ¥10,765 thousand, which was included in the Company’s statement of income for the year ended March 31, 2016. The Company used unobservable inputs to value the impairment of these non-marketable Level 3 investments. The fair value was determined as a result of considering various unobservable inputs, including expectation of future income of the investees, net asset value of the investees, and material unrealized losses to be considered in assets and liabilities held by the investees. F- The trademark right related to hi-ho with a carrying amount of ¥107,000 thousand was written down to a fair value of ¥96,000 thousand, resulting in an impairment charge of ¥11,000 thousand, which was included in the Company’s statement of income for the year ended March 31, 2016. The impaired trademark was classified within Level 3 as the Company used unobservable inputs such as expected future income to value the trademark. Level 3 valuations are determined by the Company’s valuation team (accounting and financing managers) based on the methodologies used to perform the valuation of each instrument. The Company uses third-party valuation firms to conduct the valuation of certain instruments, if necessary. Detailed reviews of the methodologies in valuations and the reasonableness of the valuations (including those performed by third parties) are performed by the chief financial officer. The following table presents information relating to the significant unobservable inputs of the Company’s Level 3 non-recurring measurements. Thousands of Yen March 31, 2016 Fair value Valuation technique Unobservable inputs Range Trademark ¥ 96,000 Relief from royalty method Discount Rate 6.3 % Royalty rate 0.3 % |
Note 20 - Business Segments
Note 20 - Business Segments | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 20. BUSINESS SEGMENTS The operating segments reported below are those for which segment-specific financial information is available. Accounting policies used to determine segment profit or loss and segment assets are consistent with those used to prepare the consolidated financial statements in accordance with U.S. GAAP. The Company’s chief operating decision maker uses this financial information to make decisions on the allocation of resources and to evaluate business performance. The Network service and systems integration business segment comprises revenues from network services, systems integration and equipment sales. The ATM operation business segment comprises revenues from the ATM operation business. Revenues: Thousands of Yen 2014 2015 2016 Network service and systems integration business: Customers ¥ 111,445,519 ¥ 119,409,987 ¥ 136,759,130 Intersegment 455,975 408,567 383,058 Total 111,901,494 119,818,554 137,142,188 ATM operation business: Customers 2,826,832 3,640,128 3,888,878 Intersegment – – – Total 2,826,832 3,640,128 3,888,878 Elimination (455,975 ) (408,567 ) (383,058 ) Consolidated total ¥ 114,272,351 ¥ 123,050,115 ¥ 140,648,008 F- Segment Profit or Loss: Thousands of Yen 2014 2015 2016 Operating income: Network service and systems integration business ¥ 5,274,753 ¥ 4,334,946 ¥ 5,127,807 ATM operation business 578,794 886,340 1,148,922 Elimination (130,235 ) (146,048 ) (136,375 ) Consolidated total ¥ 5,723,312 ¥ 5,075,238 ¥ 6,140,354 Segment Assets: Thousands of Yen 2015 2016 Segment assets: Network service and systems integration business ¥ 105,160,187 ¥ 113,747,677 ATM operation business 3,545,128 4,087,227 Elimination – – Consolidated total ¥ 108,705,315 ¥ 117,834,904 Other significant items: Thousands of Yen 2014 2015 2016 Depreciation and amortization: Network service and systems integration business ¥ 8,405,080 ¥ 9,139,687 ¥ 9,377,657 ATM operation business 417,901 537,652 543,898 Consolidated total ¥ 8,822,981 ¥ 9,677,339 ¥ 9,921,555 For information regarding the goodwill and the other impairment losses on intangible assets, see Note 8, “Goodwill and Other intangible assets.” Transfers between reportable businesses are made at market-based prices. Operating income is operating revenue less costs and operating expenses. Substantially all revenues are from customers operating in Japan. Geographic information is not presented due to immateriality of revenue attributable to international operations. Revenue from IBM Japan, Ltd., related to the Network service and system integration business segment represents ¥13,125,454 thousand for the year ended March 31, 2014, of the Company’s revenue. |
Note 21 - Advertising Expenses
Note 21 - Advertising Expenses | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | 21. ADVERTISING EXPENSES |
Note 22 - Related Party Transac
Note 22 - Related Party Transactions | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 22. RELATED PARTY TRANSACTIONS NTT and its subsidiaries own 26.0% of IIJ's outstanding common shares and 26.4% of IIJ's voting shares as of March 31, 2016. The amounts of balances as of March 31, 2015 and 2016 and transactions of the Company with NTT and its subsidiaries for the each of the three years in the period ended March 31, 2016, are summarized as follows: Thousands of Yen 2014 2015 2016 Accounts receivable – ¥ 463,613 ¥ 1,184,804 Accounts payable – 2,535,234 3,041,505 Lease obligations – 1,268,324 1,750,054 Revenues ¥ 2,370,954 2,898,040 3,129,622 Costs 15,579,173 16,706,036 24,268,440 Interest expenses 24,756 24,402 30,370 |
Note 23 - Subsequent Events
Note 23 - Subsequent Events | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 23. SUBSEQUENT EVENTS On June 24, 2016, IIJ’s shareholders approved the payment of a cash dividend to shareholders of record at March 31, 2016 of ¥11 per share or ¥505,480 thousand in the aggregate. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation— IIJ maintains its records and prepares its financial statements in accordance with generally accepted accounting principles in Japan. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform to generally accepted accounting principles in the United States of America (“U.S. GAAP”). These adjustments were not recorded in the statutory accounts. |
Consolidation, Policy [Policy Text Block] | Consolidation— Investments in companies over which IIJ has significant influence but not control are accounted for by the equity method. For other-than-temporary declines in the value of investments in equity method investees below the carrying amount, the investments are reduced to fair value and an impairment loss is recognized. Equity-method goodwill which is the portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an investee is not amortized, but equity-method investments are continuously to be reviewed for impairment in accordance with Accounting Standards Codification (“ASC”) 323 “Investments-Equity Method and Joint Ventures.” A subsidiary or equity method investee may issue its shares to third parties at amounts per share in excess of or less than the Company’s average per share carrying value. Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary are accounted for as equity transactions. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates— The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions used are primarily in the areas of evaluation of investments, valuation allowances for deferred tax assets, allowance for doubtful accounts, determination of pension benefit costs and obligations, estimated useful lives of fixed assets and intangible assets with finite useful lives and impairment of long lived assets, goodwill and intangible assets deemed to have indefinite useful lives. Actual results could differ from those estimates. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition— Network service revenues are billed and recognized monthly on a straight line basis. Initial setup fees received in connection with network services are deferred and recognized over the estimated average period of the subscription for each service. System integration revenue involves one or more of the following deliverables: ・System construction services ― include all or some of the following elements depending on arrangements to meet each of our customer's requirements: consulting, project planning, system design, and development of network systems. These services also include the installation of software as well as configuration and installation of hardware. ・Software ― we resell third-party software such as Oracle and Windows to our customers, which are installed by us during the system development process. ・Hardware ― we also resell third-party hardware, primarily servers, switches and routers, which we install during the system development process. The hardware is generic hardware that is often sold by third party manufacturers and resellers. ・Monitoring and operating service ― we monitor our customer's network activity and internet connectivity to detect and report problems. We also provide constant data backup services. ・Hardware and software maintenance service ― we repair or replace any malfunctioning parts of hardware. We examine software faults and provide suitable solutions to customers. The system construction services are generally delivered over a three-month period. All hardware and software are delivered and installed during this period. Customers are required to pay a specified fixed fee that is not payable until after the system construction has been completed and accepted by our customers. Monitoring, operating, and hardware and software maintenance services generally commence once our customers have accepted the systems, and contract periods are generally from one to five years. Our contracts include a stated annual fee for these services. For multiple-element arrangements that include system construction service, hardware, software essential to the hardware product’s functionality and undelivered non-software services (e.g., monitoring and operating services), the Company allocates revenue to all deliverables based on their relative selling prices. The Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). The allocation of revenue is based mainly on the Company’s ESPs except for certain undelivered non-software services for which VSOE has been established. The Company’s process for determining its ESP for deliverables includes various factors that may vary depending on the circumstances and specific characteristics related to each deliverable. In developing the ESP, the Company considers customer demand, the existence and effect of competitors, general profit margin realized in the marketplace, volume of the transactions, the Company’s internal costs of providing the deliverables, the profit objectives including targeted and historical margins realized on similar sales to similar customers and the historical pricing practices. The method used to account for each unit and the period over which each unit of accounting is recognized are as follows: ・Revenue allocated to system construction services is accounted for using contract accounting. System construction service revenues, which are generally completed within three months, are recognized based on the completed-contract method in compliance with ASC 605-35-25-92 because the Company is unable to bill customers and the title to the constructed network system is not transferred to the customers unless they are satisfied with and accept the completed systems. ・Revenue related to the hardware and software essential to the hardware product’s functionality is not recognized until customer acceptance is received because title to the hardware and software do not transfer to our customers until formal acceptance is received. ・Revenue related to undelivered non-software services (monitoring, operating and hardware maintenance services) is recognized on a straight-line basis over the contract period. The Company also enters into multiple-element arrangements for system integration services that include software not essential to the hardware product’s functionality and software-related services and accounts for them in accordance with ASC 985-605, “Software-Revenue Recognition.” The Company has been able to establish VSOE of fair value of the software-related services based on separate renewal contracts of the services that are consistently priced within a narrow range. The Company allocates revenue to such services based on VSOE and recognizes the revenues on a straight-line basis over the contract period. The Company allocates the residual amount to the software. Equipment sales revenues are recognized when equipment is delivered and accepted by the customer. The Company evaluates whether it is appropriate to record the gross amount of revenues and related costs or the net amount earned in reporting system construction services and equipment sales, depending on whether the Company functions as principal or agent. ATM operation business revenues consist primarily of commissions for each withdrawing transaction with the use of ATMs. ATM commission collected from each withdrawal is aggregated every month and recognized as ATM operation revenues. Revenue is recognized net of consumption tax collected from customers and subsequently remitted to governmental authorities. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents— |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Doubtful Accounts— An allowance for doubtful accounts is established in amounts considered to be appropriate based primarily upon the Company's past credit loss experience and an evaluation of potential losses in the receivables outstanding. |
Investment, Policy [Policy Text Block] | Other Investments— The Company classifies its marketable equity and debt securities as available for sale securities, which are accounted for at fair value with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income (loss). The cost of securities sold is determined based on average cost. Non-marketable equity securities are carried at cost as fair value is not readily determinable. When the Company evaluates whether non-marketable equity securities are impaired or not, the Company evaluates first whether an event or change in circumstances has occurred in the period that may have significant adverse effect on the fair value of the securities (an impairment indicator). The Company uses such impairment indicators as follows: ・A significant deterioration in the earnings performance or business prospects of the investee. ・A significant adverse change in the regulatory, economic, or technological environment of the investee. ・A significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates. ・A recent example of the new issuance of a security, in which the issue price is less than our cost. The Company estimates the fair value of the non-marketable equity securities when an impairment indicator is present. The fair value is determined as a result of considering various unobservable inputs which are available to the Company, including expectation of future income of the investees, net asset value of the investees, and material unrealized losses to be considered in assets and liabilities held by the investees. The Company recognizes impairment of non-marketable equity securities when the fair value is below the carrying amount and the decline in fair value is considered to be other-than-temporary. |
Inventory, Policy [Policy Text Block] | Inventories— Inventories consist mainly of network equipment purchased for resale and work in process for construction of network systems. Network equipment purchased for resale is stated at the lower of cost, which is determined by the average cost method, or market. Work in process for development of network systems is stated at the lower of actual production costs, including overhead cost, or market. Inventories are reviewed periodically and items considered to be slow moving or obsolete are written down to their estimated net realizable value. |
Lease, Policy [Policy Text Block] | Leases— Capital leases are capitalized at the inception of the lease at the present value of the minimum lease payments. All other leases are accounted for as operating leases. Lease payments for capital leases are apportioned to interest expense and a reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Operating lease payments are recognized as an expense on a straight line basis over the lease term. |
Revenue Recognition Leases, Capital [Policy Text Block] | Sales-Type Leases— |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment— Range of Data communications, office and other equipment (years) 2 to 20 Buildings (years) 20 Leasehold improvements (years) 4 to 20 Capitalized software (years) 5 to 7 Capital leases (years) 4 to 6 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets— |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Intangible Assets— |
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligations— |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Severance Indemnities Plans— |
Income Tax, Policy [Policy Text Block] | Income Taxes— The Company recognizes the financial statement effect of uncertain tax positions when it is more-likely- than not, based on the technical merits, that the tax positions will be sustained upon examination by the tax authorities. Benefits from tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income tax expense in the consolidated statements of income. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation— Foreign currency assets and liabilities are stated at the amount as computed by using year-end exchange rates and the resulting transaction gain or loss is recognized in earnings. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation— |
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development Costs— |
Advertising Costs, Policy [Policy Text Block] | Advertising— |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Net Income attributable to Internet Initiative Japan Inc. per Common Share— |
Comprehensive Income, Policy [Policy Text Block] | Other Comprehensive Income (Loss)— |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting— The Company provides a comprehensive range of network solutions to meet its customers’ needs by cross-selling a variety of services, including Internet connectivity services, WAN services, outsourcing services, systems integration and sales of network-related equipment, and ATM operation services. The Company’s chief operating decision maker, who is the Company’s Chief Operating Officer ("COO"), regularly reviews the revenue and cost of sales of the two operating segments, which are the Network service and systems integration business segment and the ATM operation business segment. The COO also makes decisions regarding how to allocate resources and assess performance based on the segments. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Guidance Accounting Guidance Issued But Not Adopted as of March 31, 2016 In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606),” to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. This guidance also requires an entity to improve disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which was issued in August 2015, revised the effective date for this ASU to annual and interim periods beginning after December 15, 2017, with early adoption permitted, but not earlier than the original effective date of annual and interim periods beginning after December 15, 2016, for public entities. The Company is currently evaluating the impact of adopting this guidance. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which applies to inventory that is measured using the first-in, first-out (“FIFO”) or average cost methods. Under the updated guidance, an entity should measure inventory within the scope of the guidance at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognizes assets and liabilities for leases with lease terms of more than twelve months and the recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which is an amendment to the new revenue recognition standard on assessing whether an entity is a principal or an agent in a revenue transaction. This amendment addresses implementation issues that were discussed by the Revenue Recognition Transition Resource Group ("TRG") to clarify the principal versus agent assessment and provide for a more consistent application. This new standard has the same effective date and transition requirements as ASU 2014-09. The Company is currently evaluating the impact of adopting this guidance. |
Note 1 - Description of Busin32
Note 1 - Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment Useful Lives [Table Text Block] | Range of Data communications, office and other equipment (years) 2 to 20 Buildings (years) 20 Leasehold improvements (years) 4 to 20 Capitalized software (years) 5 to 7 Capital leases (years) 4 to 6 |
Note 3 - Inventory (Tables)
Note 3 - Inventory (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | Thousands of Yen 2015 2016 Network equipment purchased for resale ¥ 667,110 ¥ 658,330 Work in process 562,353 1,345,243 Total inventories ¥ 1,229,463 ¥ 2,003,573 |
Note 4 - Other Investments (Tab
Note 4 - Other Investments (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | Thousands of Yen March 31, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Available-for-sale—Equity securities ¥ 1,778,803 ¥ 2,528,884 ¥ 95,116 ¥ 4,212,571 Available-for-sale—Debt securities 100,300 1,610 – 101,910 ¥ 1,879,103 ¥ 2,530,494 ¥ 95,116 ¥ 4,314,481 March 31, 2016 Available-for-sale—Equity securities ¥ 1,822,151 ¥ 2,090,940 ¥ 82,244 ¥ 3,830,847 Available-for-sale—Debt securities 100,300 13,250 – 113,550 ¥ 1,922,451 ¥ 2,104,190 ¥ 82,244 ¥ 3,944,397 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | Thousands of Yen Less than 12 Months 12 Months or More Total March 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Losses Available-for-sale—Equity securities ¥ 946,712 ¥ 95,116 – – ¥ 946,712 ¥ 95,116 March 31, 2016 Available-for-sale—Equity securities ¥ 994,658 ¥ 79,267 ¥ 7,587 ¥ 2,977 ¥ 1,002,245 ¥ 82,244 |
Note 5 - Allowance for Doubtf35
Note 5 - Allowance for Doubtful Accounts and Loans (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Thousands of Yen Balance at Beginning of Year Credits Charged Off Provision for (Reversal of) Doubtful Accounts Other Balance at End of Year Year ended March 31, 2014 ¥ 176,393 ¥ (12,067 ) ¥ (46,935 ) – ¥ 117,391 Year ended March 31, 2015 ¥ 117,391 ¥ (3,153 ) ¥ 33,158 ¥ 849 ¥ 148,245 Year ended March 31, 2016 ¥ 148,245 ¥ (45,108 ) ¥ 48,407 ¥ (29 ) ¥ 151,515 |
Note 6 - Investments in Equit36
Note 6 - Investments in Equity Method Investees (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Equity Method Investee [Member] | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Thousands of Yen 2014 2015 2016 Accounts receivable – ¥ 367,741 ¥ 124,923 Accounts payable – 48,788 46,658 Revenues ¥ 538,288 956,887 666,554 Costs and expenses 451,342 460,463 502,340 |
Schedule of Related Party Transactions [Table Text Block] | Thousands of Yen 2014 2015 2016 Accounts receivable – ¥ 463,613 ¥ 1,184,804 Accounts payable – 2,535,234 3,041,505 Lease obligations – 1,268,324 1,750,054 Revenues ¥ 2,370,954 2,898,040 3,129,622 Costs 15,579,173 16,706,036 24,268,440 Interest expenses 24,756 24,402 30,370 |
Equity Method Investments [Table Text Block] | Thousands of Yen 2015 2016 Multifeed 33.00 % ¥ 1,354,932 34.00 % ¥ 1,518,610 i-revo 30.00 676,732 30.00 725,529 Trinity 33.75 101,618 33.75 133,325 Stratosphere 50.00 – – – Appiaries 49.00 106,196 49.00 16,396 e-CORPORATION 35.21 32,839 35.21 29,095 BIZNET 40.00 288,240 40.00 246,193 KIS – – 36.10 53,576 Leap Solutions – – 40.00 256,928 Total ¥ 2,560,557 ¥ 2,979,652 |
Note 7 - Property and Equipme37
Note 7 - Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Thousands of Yen 2015 2016 Data communications equipment ¥ 11,159,022 ¥ 14,355,365 Office and other equipment 2,746,153 2,065,039 Land 537,889 537,889 Buildings 1,644,704 1,663,326 Leasehold improvements 3,798,172 3,904,189 Capitalized software 24,804,449 28,815,164 Assets under capital leases, primarily data communications equipment 24,271,434 28,328,721 Total 68,961,823 79,669,693 Less accumulated depreciation and amortization (39,591,769 ) (45,345,543 ) Property and equipment—net ¥ 29,370,054 ¥ 34,324,150 |
Schedule of Capitalized Software, Future Amortization Expense [Table Text Block] | Year Ending March 31 Thousands of Yen 2017 ¥ 2,990,683 2018 2,747,052 2019 2,048,524 2020 1,385,225 2021 840,041 |
Note 8 - Goodwill and Other I38
Note 8 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Thousands of Yen 2015 2016 Intangible assets subject to amortization: Customer relationships ¥ 6,424,471 ¥ 6,424,471 Total 6,424,471 6,424,471 Less accumulated amortization Customer relationships (2,619,544 ) (3,007,558 ) Intangible assets subject to amortization—net 3,804,927 3,416,913 Intangible assets not subject to amortization: Telephone rights 29,352 36,546 Trademark 107,000 96,000 Goodwill 6,169,609 6,169,609 Total 6,305,961 6,302,155 Total intangible assets ¥ 10,110,888 ¥ 9,719,068 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Ending March 31 Thousands of Yen 2017 ¥ 380,496 2018 365,460 2019 355,410 2020 346,223 2021 336,787 |
Schedule of Goodwill [Table Text Block] | Thousands of Yen Network Service and Systems Integration Business ATM Operation Business Total Balance at March 31, 2014 Goodwill ¥ 5,854,682 ¥ 235,551 ¥ 6,090,233 Accumulated impairment losses (120,282 ) – (120,282 ) 5,734,400 235,551 5,969,951 Acquisition 199,658 – 199,658 Impairment losses – – – Balance at March 31, 2015 Goodwill 6,054,340 235,551 6,289,891 Accumulated impairment losses (120,282 ) – (120,282 ) 5,934,058 235,551 6,169,609 Acquisition – – – Impairment losses – – – Balance at March 31, 2016 Goodwill 6,054,340 235,551 6,289,891 Accumulated impairment losses (120,282 ) – (120,282 ) ¥ 5,934,058 ¥ 235,551 ¥ 6,169,609 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Sales Type Lease [Member] | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Thousands of Yen 2015 2016 Year ending March 31: 2017 ¥ 845,336 2018 751,865 2019 617,127 2020 401,579 2021 352,438 2022 and thereafter 379,599 Total minimum lease payments to be received* ¥ 1,488,656 ¥ 3,347,944 Estimated residual value of leased property (unguaranteed) – – Less unearned income (24,278 ) (89,407 ) Net investment in sales-type leases 1,464,378 3,258,537 Less current portion (702,219 ) (813,689 ) Non-current net investment in sales-type leases ¥ 762,159 ¥ 2,444,848 |
Schedule of Lease Refundable Deposits [Table Text Block] | Thousands of Yen 2015 2016 Head office ¥ 2,187,901 ¥ 2,462,266 Sales and subsidiaries offices 547,549 551,242 Others 64,751 71,173 Total refundable guarantee deposits ¥ 2,800,201 ¥ 3,084,681 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Thousands of Yen Connectivity Lines Operating Leases Other Operating Leases Capital Leases Year ending March 31: 2017 ¥ 870,720 ¥ 3,579,008 ¥ 4,142,275 2018 673,610 981,812 3,074,462 2019 309,032 173,907 2,326,311 2020 – 132,523 1,394,337 2021 – 109,581 886,236 2022 and thereafter – 274,562 338,174 Total minimum lease payments ¥ 1,853,362 ¥ 5,251,393 12,161,795 Less amounts representing interest (428,042 ) Present value of net minimum capital lease payments 11,733,753 Less current portion (3,954,386 ) Noncurrent portion ¥ 7,779,367 |
Note 10 - Asset Retirement Ob40
Note 10 - Asset Retirement Obligations (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Asset Retirement Obligations [Table Text Block] | Thousands of Yen 2015 2016 Balance at beginning of the year ¥ 513,440 ¥ 568,869 Liabilities incurred 287,036 45,169 Liabilities settled (243,109 ) (31,321 ) Accretion expense 11,502 12,466 Balance at end of the year ¥ 568,869 ¥ 595,183 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Thousands of Yen 2014 2015 2016 Income from operations before income tax expense and equity in net income of equity method investees: Domestic ¥ 6,406,153 ¥ 5,407,802 ¥ 6,460,898 Foreign (131,262 ) (268,810 ) (267,564 ) Total ¥ 6,274,891 ¥ 5,138,992 ¥ 6,193,334 Income taxes ―current: Domestic ¥ 2,453,549 ¥ 1,720,557 ¥ 1,929,139 Foreign 41,582 (34,922 ) 5,277 Total ¥ 2,495,131 ¥ 1,685,635 ¥ 1,934,416 Income taxes ―deferred: Domestic ¥ (729,822 ) ¥ 181,088 ¥ 255,992 Foreign 29,996 30,142 (6,877 ) Total ¥ (699,826 ) ¥ 211,230 ¥ 249,115 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Thousands of Yen 2015 2016 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Unrealized gains on available-for-sale securities – ¥ 832,426 – ¥ 620,755 Capital leases ¥ 141,255 – ¥ 130,365 – Accrued expenses 995,253 – 933,947 – Retirement and pension cost 960,151 – 1,102,215 – Allowance for doubtful accounts 58,760 – 56,534 – Depreciation 101,652 – 72,109 – Net loss on other investments 230,794 – 205,373 – Operating loss carryforwards 1,276,690 – 947,031 – Transactions in transit* – 106,631 – 96,714 Impairment loss on telephone rights 74,268 – 67,102 – Accrued enterprise tax 86,448 – 120,793 – Asset retirement obligation 194,553 – 183,912 – Deferred revenue 353,098 – 387,481 – Customer relationships – 1,299,335 – 1,058,578 Tax deduction of goodwill – 810,172 – 791,377 Excess of tax deductible goodwill over the reported amount of goodwill 88,769 – – – Trademark – 38,413 – 29,664 Investments in equity method investees – 241,210 – 291,266 Investments in funds 100,045 – 83,818 – Asset retirement cost – 160,293 – 146,266 Other 333,752 85,128 329,491 68,941 Total 4,995,488 3,573,608 4,620,171 3,103,561 Valuation allowance (611,997 ) – (627,693 ) – Total ¥ 4,383,491 ¥ 3,573,608 ¥ 3,992,478 ¥ 3,103,561 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Thousands of Yen Expired in Year Ending March 31 Enterprise Tax Subject to Consolidation Tax Filing Inhabitant Tax Subject to Consolidation Tax Filing Others 2017 – – – 2018 – – ¥ 79,790 2019 – – 214,286 2020 – – 829,986 2021 and thereafter ¥ 253,286 ¥ 18,663 1,800,221 Total ¥ 253,286 ¥ 18,663 ¥ 2,924,283 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Thousands of Yen 2014 2015 2016 Amount computed by using normal Japanese statutory tax rate ¥ 2,403,283 ¥ 1,844,898 ¥ 2,074,767 Increase (decrease) in taxes resulting from: Expenses not deductible for tax purpose 102,634 76,258 93,262 Inhabitant tax—per capita 37,122 39,114 39,538 Change in valuation allowance (957,182 ) 159,163 15,696 Tax effects on investments in equity method investees 65,489 19,650 48,368 Enterprise tax—not based on income 82,191 90,086 146,883 Tax rate change 106,487 51,788 23,183 Tax credit – (232,834 ) (269,145 ) Tax refund by loss carryback – (32,275 ) – Other—net (44,719 ) (118,983 ) 10,979 Income tax expense as reported ¥ 1,795,305 ¥ 1,896,865 ¥ 2,183,531 |
Note 13 - Retirement and Pens42
Note 13 - Retirement and Pension Plans (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Foreign Pension Plan [Member] | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Basis of Fair Value Measurement Thousands of Yen of Pension Plan Assets at March 31, 2015 Level 1 Level 2 Level 3 Total Equity securities: Japanese equity ¥ 417,833 – – ¥ 417,833 U.S. equity 124,670 – – 124,670 Other equity―developed countries 78,027 – – 78,027 Total equity securities 620,530 – – 620,530 Debt securities: Japanese government and municipalities – ¥ 495,637 – 495,637 Japanese corporate bonds―investment grade – 256,954 – 256,954 U.S. government – 110,851 – 110,851 Other government―developed countries – 152,927 – 152,927 Residential mortgage-backed – 19,256 – 19,256 Total debt securities – 1,035,625 – 1,035,625 Other financial instruments* – 1,109,010 – 1,109,010 Cash 165,145 – – 165,145 Total assets at fair value ¥ 785,675 ¥ 2,144,635 – ¥ 2,930,310 Basis of Fair Value Measurement Thousands of Yen of Pension Plan Assets at March 31, 2016 Level 1 Level 2 Level 3 Total Equity securities: Japanese equity ¥ 469,780 – – ¥ 469,780 U.S. equity 144,147 – – 144,147 Other equity―developed countries 84,400 – – 84,400 Total equity securities 698,327 – – 698,327 Debt securities: Japanese government and municipalities – ¥ 577,488 – 577,488 Japanese corporate bonds―investment grade – 241,744 – 241,744 U.S. government – 118,099 – 118,099 Other government―developed countries – 158,547 – 158,547 Residential mortgage-backed – 21,381 – 21,381 Total debt securities – 1,117,259 – 1,117,259 Other financial instruments* – 1,267,090 – 1,267,090 Cash 111,223 – – 111,223 Total assets at fair value ¥ 809,550 ¥ 2,384,349 – ¥ 3,193,899 |
Schedule of Net Benefit Costs [Table Text Block] | Thousands of Yen 2014 2015 2016 Service cost ¥ 542,584 ¥ 573,956 ¥ 648,944 Interest cost 45,418 73,902 67,525 Expected return on plan assets (48,303 ) (63,037 ) (87,909 ) Amortization of transition obligation 369 369 365 Amortization of actuarial gain – (2,782 ) (2,971 ) Net periodic pension cost ¥ 540,068 ¥ 582,408 ¥ 625,954 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Thousands of Yen 2014 2015 2016 Net actuarial loss (gain) ¥ (63,775 ) ¥ 127,065 ¥ 585,332 Amortization of transition obligation in net periodic pension cost (369 ) (369 ) (365 ) Amortization of actuarial gain – 2,782 2,971 Amounts recognized in other comprehensive income ¥ (64,144 ) ¥ 129,478 ¥ 587,938 Total net periodic pension cost and amounts recognized in other comprehensive income ¥ 475,924 ¥ 711,886 ¥ 1,213,892 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | Thousands of Yen 2015 2016 Change in benefit obligation: Benefit obligation at beginning of year ¥ 4,426,598 ¥ 5,285,093 Service cost 573,956 648,944 Interest cost 73,902 67,525 Actuarial loss 283,860 480,755 Benefit paid (73,223 ) (94,207 ) Benefit obligation at end of year 5,285,093 6,388,110 Change in plan assets: Fair value of plan assets at beginning of year 2,424,499 2,930,310 Actual return (loss) on plan assets 219,832 (16,667 ) Employer contribution 322,826 334,252 Benefits paid (36,847 ) (53,996 ) Fair value of plan assets at end of year 2,930,310 3,193,899 Funded status at end of year ¥ (2,354,783 ) ¥ (3,194,211 ) |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | Thousands of Yen 2015 2016 Accrued retirement and pension costs―noncurrent ¥ (2,354,783 ) ¥ (3,194,211 ) Net amount recognized ¥ (2,354,783 ) ¥ (3,194,211 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Thousands of Yen 2015 2016 Net actuarial loss ¥ 371,122 ¥ 959,426 Obligation at transition 365 – Total ¥ 371,487 ¥ 959,426 |
Schedule of Assumptions Used [Table Text Block] | Benefit Obligations Net Periodic Costs 2015 2016 2014 2015 2016 Discount rate 1.3 % 0.7 % 1.2 % 1.7 % 1.3 % Expected long-term rate of return on plan assets 2.4 2.6 3.0 Rate of increase in compensation 3.2 3.1 3.3 3.2 3.2 |
Schedule of Expected Benefit Payments [Table Text Block] | Years Ending March 31 Thousands of Yen 2017 ¥ 94,235 2018 119,570 2019 132,585 2020 151,505 2021 195,246 2022 –2026 1,708,740 Total ¥ 2,401,881 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Thousands of Yen March 31, 2015 Level 1 Level 2 Level 3 Total Assets— Available-for-sale securities—equity securities ¥ 4,212,571 – – ¥ 4,212,571 Available-for-sale securities—debt securities – ¥ 101,910 – 101,910 Total assets ¥ 4,212,571 ¥ 101,910 – ¥ 4,314,481 Thousands of Yen March 31, 2016 Level 1 Level 2 Level 3 Total Assets— Available-for-sale securities—equity securities ¥ 3,830,847 – – ¥ 3,830,847 Available-for-sale securities—debt securities – ¥ 113,550 – 113,550 Total assets ¥ 3,830,847 ¥ 113,550 – ¥ 3,944,397 |
Note 14 - Shareholders' Equity
Note 14 - Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | 2014 2015 2016 Assumptions: Risk-free interest rate 1.314 % 0.980 % 0.818 % Expected lives (years) 15 15 15 Expected volatility 55.861 % 55.217 % 53.794 % Expected dividends 0.535 % 0.909 % 1.023 % |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Yen Years Thousands of Yen Number of Options Number of Shares Exercise Price Remaining Life Total Intrinsic Value Unexercised options outstanding—March 31, 2014 346 69,200 ¥ 1 Granted 128 25,600 1 Exercised (16 ) (3,200 ) 1 Forfeited or expired – – – Unexercised options outstanding—March 31, 2015 458 91,600 1 Granted 151 30,200 1 Exercised (52 ) (10,400 ) 1 Forfeited or expired – – – Unexercised options outstanding—March 31, 2016 557 111,400 1 Exercisable options—March 31, 2016 406 81,200 1 26.80 ¥ 190,705 Expected to vest after July 14, 2016 151 30,200 1 29.31 70,927 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] | Thousands of Yen 2014 2015 2016 Net income attributable to IIJ ¥ 4,442,237 ¥ 3,322,081 ¥ 4,038,282 Transfers from the noncontrolling interests Increase in additional paid-in capital for acquisition of noncontrolling interest of IIJ-Exlayer 99 – – Net transfers from noncontrolling interest 99 – – Change from net income attributable to IIJ and transfers from noncontrolling interests ¥ 4,442,336 ¥ 3,322,081 ¥ 4,038,282 |
Note 15 - Other Comprehensive44
Note 15 - Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Thousands of Yen Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Year ended March 31, 2014: Foreign currency translation adjustments ¥ 419,557 – ¥ 419,557 Unrealized holding gain (loss) on securities: Amount arising during the period 1,656,759 ¥ (594,776 ) 1,061,983 Less: Reclassification adjustments for gains included in net income (107,655 ) 41,232 (66,423 ) Other – (7,421 ) (7,421 ) Net unrealized holding gain (loss) during the period 1,549,104 (560,965 ) 988,139 Defined benefit pension plans: Amount arising during the period 63,775 (22,896 ) 40,879 Less: Reclassification adjustments for losses included in net income 369 (133 ) 236 Net defined benefit pension plans 64,144 (23,029 ) 41,115 Other comprehensive income (loss) ¥ 2,032,805 ¥ (583,994 ) ¥ 1,448,811 Year ended March 31, 2015: Foreign currency translation adjustments ¥ 243,538 – ¥ 243,538 Unrealized holding gain (loss) on securities: Amount arising during the period 124,370 ¥ (44,649 ) 79,721 Less: Reclassification adjustments for gains included in net income (35,934 ) 12,900 (23,034 ) Other – 4,903 4,903 Net unrealized holding gain (loss) during the period 88,436 (26,846 ) 61,590 Defined benefit pension plans: Amount arising during the period (127,065 ) 45,616 (81,449 ) Less: Reclassification adjustments for gains included in net income (2,413 ) 862 (1,551 ) Net defined benefit pension plans (129,478 ) 46,478 (83,000 ) Other comprehensive income (loss) ¥ 202,496 ¥ 19,632 ¥ 222,128 Thousands of Yen Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Year ended March 31, 2016: Foreign currency translation adjustments ¥ (67,652 ) – ¥ (67,652 ) Unrealized holding gain (loss) on securities: Amount arising during the period (417,400 ) ¥ 128,977 (288,423 ) Less: Reclassification adjustments for losses included in net income 3,965 (1,328 ) 2,637 Other – 9,834 9,834 Net unrealized holding gain (loss) during the period (413,435 ) 137,483 (275,952 ) Defined benefit pension plans: Amount arising during the period (585,332 ) 192,576 (392,756 ) Less: Reclassification adjustments for gains included in net income (2,606 ) 944 (1,662 ) Net defined benefit pension plans (587,938 ) 193,520 (394,418 ) Other comprehensive income (loss) ¥ (1,069,025 ) ¥ 331,003 ¥ (738,022 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Thousands of Yen Unrealized holding gain on securities Defined benefit pension plans Foreign currency translation adjustments Total Year ended March 31, 2013: ¥ 495,217 ¥ (187,318 ) ¥ (44,129 ) ¥ 263,770 Other comprehensive income before reclassifications 1,054,562 40,879 419,701 1,515,142 Amounts reclassified out of accumulated other comprehensive income (66,423 ) 236 – (66,187 ) Other comprehensive income 988,139 41,115 419,701 1,448,955 Other – – 61 61 Year ended March 31, 2014: ¥ 1,483,356 ¥ (146,203 ) ¥ 375,633 ¥ 1,712,786 Thousands of Yen Unrealized holding gain on securities Defined benefit pension plans Foreign currency translation adjustments Total Year ended March 31, 2014: ¥ 1,483,356 ¥ (146,203 ) ¥ 375,633 ¥ 1,712,786 Other comprehensive income before reclassifications 84,624 (81,449 ) 247,273 250,448 Amounts reclassified out of accumulated other comprehensive income (23,034 ) (1,551 ) – (24,585 ) Other comprehensive income (loss) 61,590 (83,000 ) 247,273 225,863 Year ended March 31, 2015: ¥ 1,544,946 ¥ (229,203 ) ¥ 622,906 ¥ 1,938,649 Thousands of Yen Unrealized holding gain on securities Defined benefit pension plans Foreign currency translation adjustments Total Year ended March 31, 2015: ¥ 1,544,946 ¥ (229,203 ) ¥ 622,906 ¥ 1,938,649 Other comprehensive loss before reclassifications (278,589 ) (392,756 ) (71,610 ) (742,955 ) Amounts reclassified out of accumulated other comprehensive income 2,637 (1,662 ) – 975 Other comprehensive loss (275,952 ) (394,418 ) (71,610 ) (741,980 ) Year ended March 31, 2016: ¥ 1,268,994 ¥ (623,621 ) ¥ 551,296 ¥ 1,196,669 |
Reclassified Accumulated Other Comprehensive Income [Table Text Block] | Thousands of Yen 2014 2015 2016 Location Other comprehensive income (loss) components: Unrealized holding gain on securities ¥ 107,655 ¥ 35,934 – Net gain on sales of other investments – – ¥ (3,965 ) Impairment of other investments (41,232 ) (12,900 ) 1,328 Income tax expense 66,423 23,034 (2,637 ) Net income Defined benefit pension plans (369 ) 2,413 2,606 Net periodic pension costs (Note 13) 133 (862 ) (944 ) Income tax expense (236 ) 1,551 1,662 Net income Total amount reclassified ¥ 66,187 ¥ 24,585 ¥ (975 ) |
Note 16 - Basic and Diluted N45
Note 16 - Basic and Diluted Net Income Per Common Share (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Thousands of Yen 2014 2015 2016 Numerator: Net income attributable to Internet Initiative Japan Inc.―basic and diluted ¥ 4,442,237 ¥ 3,322,081 ¥ 4,038,282 Number of Shares 2014 2015 2016 Denominator: Weighted-average common shares outstanding―basic 44,306,680 45,942,291 45,950,098 Dilutive effect of stock options 54,403 72,446 93,285 Weighted-average common shares outstanding―diluted 44,361,083 46,014,737 46,043,383 Yen 2014 2015 2016 Basic net income attributable to Internet Initiative Japan Inc. per common share ¥ 100.26 ¥ 72.31 ¥ 87.88 Diluted net income attributable to Internet Initiative Japan Inc. per common share ¥ 100.14 ¥ 72.20 ¥ 87.71 |
Note 18 - Financial Instrumen46
Note 18 - Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Financial Assets [Table Text Block] | Thousands of Yen 2015 2016 Carrying Amount Fair Value Carrying Amount Fair Value Other investments for which it is: Practicable to estimate fair value ¥ 4,314,481 ¥ 4,314,481 ¥ 3,944,397 ¥ 3,944,397 Not practicable 2,346,225 – 2,004,344 – Noncurrent refundable insurance policies (other assets) 110,894 110,894 155,727 155,727 |
Note 19 - Fair Value Measurem47
Note 19 - Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Thousands of Yen March 31, 2015 Level 1 Level 2 Level 3 Total Assets— Available-for-sale securities—equity securities ¥ 4,212,571 – – ¥ 4,212,571 Available-for-sale securities—debt securities – ¥ 101,910 – 101,910 Total assets ¥ 4,212,571 ¥ 101,910 – ¥ 4,314,481 Thousands of Yen March 31, 2016 Level 1 Level 2 Level 3 Total Assets— Available-for-sale securities—equity securities ¥ 3,830,847 – – ¥ 3,830,847 Available-for-sale securities—debt securities – ¥ 113,550 – 113,550 Total assets ¥ 3,830,847 ¥ 113,550 – ¥ 3,944,397 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Thousands of Yen March 31, 2015 Level 1 Level 2 Level 3 Impairment Loss Assets: Non-marketable securities—equity securities – – ¥ 2,435 ¥ 29,117 – – ¥ 2,435 ¥ 29,117 Thousands of Yen March 31, 2016 Level 1 Level 2 Level 3 Impairment Loss Assets: Non-marketable securities—equity securities – – ¥ 235 ¥ 10,765 Trademark – – 96,000 11,000 – – ¥ 96,235 ¥ 21,765 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Thousands of Yen March 31, 2016 Fair value Valuation technique Unobservable inputs Range Trademark ¥ 96,000 Relief from royalty method Discount Rate 6.3 % Royalty rate 0.3 % |
Note 20 - Business Segments (Ta
Note 20 - Business Segments (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Corporate and Other [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thousands of Yen 2014 2015 2016 Depreciation and amortization: Network service and systems integration business ¥ 8,405,080 ¥ 9,139,687 ¥ 9,377,657 ATM operation business 417,901 537,652 543,898 Consolidated total ¥ 8,822,981 ¥ 9,677,339 ¥ 9,921,555 |
Segment Assets [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thousands of Yen 2015 2016 Segment assets: Network service and systems integration business ¥ 105,160,187 ¥ 113,747,677 ATM operation business 3,545,128 4,087,227 Elimination – – Consolidated total ¥ 108,705,315 ¥ 117,834,904 |
Profit or Loss [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thousands of Yen 2014 2015 2016 Operating income: Network service and systems integration business ¥ 5,274,753 ¥ 4,334,946 ¥ 5,127,807 ATM operation business 578,794 886,340 1,148,922 Elimination (130,235 ) (146,048 ) (136,375 ) Consolidated total ¥ 5,723,312 ¥ 5,075,238 ¥ 6,140,354 |
Revenues [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thousands of Yen 2014 2015 2016 Network service and systems integration business: Customers ¥ 111,445,519 ¥ 119,409,987 ¥ 136,759,130 Intersegment 455,975 408,567 383,058 Total 111,901,494 119,818,554 137,142,188 ATM operation business: Customers 2,826,832 3,640,128 3,888,878 Intersegment – – – Total 2,826,832 3,640,128 3,888,878 Elimination (455,975 ) (408,567 ) (383,058 ) Consolidated total ¥ 114,272,351 ¥ 123,050,115 ¥ 140,648,008 |
Note 22 - Related Party Trans49
Note 22 - Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Thousands of Yen 2014 2015 2016 Accounts receivable – ¥ 463,613 ¥ 1,184,804 Accounts payable – 2,535,234 3,041,505 Lease obligations – 1,268,324 1,750,054 Revenues ¥ 2,370,954 2,898,040 3,129,622 Costs 15,579,173 16,706,036 24,268,440 Interest expenses 24,756 24,402 30,370 |
Note 1 - Description of Busin50
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended |
Mar. 31, 2016 | |
Minimum [Member] | |
Systems Operation and Maintenance Contract Period | 1 year |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Maximum [Member] | |
Systems Operation and Maintenance Contract Period | 5 years |
Finite-Lived Intangible Asset, Useful Life | 19 years |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 26.40% |
Number of Operating Segments | 2 |
Note 1 - Useful Lives for Depre
Note 1 - Useful Lives for Depreciation and Amortization by Major Asset Classes (Details) | 12 Months Ended |
Mar. 31, 2016 | |
Data Communications, Office and Other Equipment [Member] | Minimum [Member] | |
Useful Lives | 2 years |
Data Communications, Office and Other Equipment [Member] | Maximum [Member] | |
Useful Lives | 20 years |
Building [Member] | |
Useful Lives | 20 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Useful Lives | 4 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Useful Lives | 20 years |
Software and Software Development Costs [Member] | Minimum [Member] | |
Useful Lives | 5 years |
Software and Software Development Costs [Member] | Maximum [Member] | |
Useful Lives | 7 years |
Software and Software Development Costs [Member] | |
Useful Lives | 5 years 73 days |
Assets Held under Capital Leases [Member] | Minimum [Member] | |
Useful Lives | 4 years |
Assets Held under Capital Leases [Member] | Maximum [Member] | |
Useful Lives | 6 years |
Note 2 - Business Combinations
Note 2 - Business Combinations (Details Textual) - JPY (¥) ¥ in Thousands | Dec. 01, 2014 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2014 |
RYUKOSHA [Member] | ||||
Business Combination, Consideration Transferred | ¥ 600,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 865,078 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 464,736 | |||
Goodwill | ¥ 199,658 | |||
Goodwill | ¥ 6,169,609 | ¥ 6,169,609 | ¥ 5,969,951 | |
Business Combination, Acquisition Related Costs | ¥ 32,262 |
Note 3 - Components of Inventor
Note 3 - Components of Inventories (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Network equipment purchased for resale | ¥ 658,330 | ¥ 667,110 |
Work in process | 1,345,243 | 562,353 |
Total inventories | ¥ 2,003,573 | ¥ 1,229,463 |
Note 4 - Other Investments (Det
Note 4 - Other Investments (Details Textual) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Minimum [Member] | |||
Investment, Fair Value, Percentage Below Cost | 5.90% | ||
Maximum [Member] | |||
Investment, Fair Value, Percentage Below Cost | 36.40% | ||
Equity Securities [Member] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | ¥ 10,765 | ¥ 29,117 | |
Available-for-sale Debt Securities, Maturity Term | 10 years | ||
Proceeds from Sale of Available-for-sale Securities | ¥ 141,235 | ¥ 391,814 | |
Available-for-sale Securities, Gross Realized Gains | ¥ 35,934 | 107,655 | |
Realized Investment Gains (Losses) | ¥ 313,393 | ||
Cost Method Investments | ¥ 2,004,344 | ¥ 2,346,225 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 21,765 | ¥ 29,117 | |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | ¥ 3,964 |
Note 4 - Securities Classified
Note 4 - Securities Classified as Available-for-Sale in Yen (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Equity Securities [Member] | ||
Available-for-sale-Cost | ¥ 1,822,151 | ¥ 1,778,803 |
Available-for-sale-Unrealized Gains | 2,090,940 | 2,528,884 |
Available-for-sale-Unrealized Losses | 82,244 | 95,116 |
Available-for-sale-Fair Value | 3,830,847 | 4,212,571 |
Debt Securities [Member] | ||
Available-for-sale-Cost | 100,300 | 100,300 |
Available-for-sale-Unrealized Gains | ¥ 13,250 | ¥ 1,610 |
Available-for-sale-Unrealized Losses | ||
Available-for-sale-Fair Value | ¥ 113,550 | ¥ 101,910 |
Available-for-sale-Cost | 1,922,451 | 1,879,103 |
Available-for-sale-Unrealized Gains | 2,104,190 | 2,530,494 |
Available-for-sale-Unrealized Losses | 82,244 | 95,116 |
Available-for-sale-Fair Value | ¥ 3,944,397 | ¥ 4,314,481 |
Note 4 - Securities Classifie56
Note 4 - Securities Classified as Available-for-Sale that have been in a Continuous Unrealized Loss Position in Yen (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Available-for-sale-Fair Value Less than 12 Months | ¥ 994,658 | ¥ 946,712 |
Available-for-sale-Unrealized Losses Less than 12 Months | 79,267 | ¥ 95,116 |
Available-for-sale-Fair Value 12 Months or More | 7,587 | |
Available-for-sale-Unrealized Losses 12 Months or More | 2,977 | |
Available-for-sale-Fair Value | 1,002,245 | ¥ 946,712 |
Available-for-sale-Unrealized Losses | ¥ 82,244 | ¥ 95,116 |
Note 5 - Analysis of Allowance
Note 5 - Analysis of Allowance for Doubtful Accounts and Loans in Yen (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Balance at Beginning of Year | ¥ 148,245 | ¥ 117,391 | ¥ 176,393 |
Credits Charged Off | (45,108) | (3,153) | (12,067) |
Provision for (Reversal of) Doubtful Accounts | 48,407 | 33,158 | ¥ (46,935) |
Other | (29) | 849 | |
Balance at End of Year | ¥ 151,515 | ¥ 148,245 | ¥ 117,391 |
Note 6 - Investments in Equit58
Note 6 - Investments in Equity Method Investees (Details Textual) - JPY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jul. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Stratosphere [Member] | |||||
Allowance for Notes, Loans and Financing Receivable, Noncurrent | ¥ 30,658 | ||||
Notes, Loans and Financing Receivable, Gross, Noncurrent | 30,658 | ||||
KIS [Member] | |||||
Payments to Acquire Equity Method Investments | ¥ 39,974 | ||||
Leap Solutions [Member] | |||||
Payments to Acquire Equity Method Investments | ¥ 256,928 | ||||
Investments in Equity Method Investees [Member] | |||||
Equity-method Goodwill | 57,197 | ¥ 57,197 | 103,841 | ||
Proceeds from Equity Method Investment, Dividends or Distributions | 48,510 | 32,340 | |||
Allowance for Notes, Loans and Financing Receivable, Noncurrent | ¥ 61,593 | 61,593 | 92,935 | ||
Payments to Acquire Equity Method Investments | ¥ 338,166 | ¥ 338,240 | ¥ 199,920 |
Note 6 - Balances Associated wi
Note 6 - Balances Associated with Equity Method Investees (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Equity Method Investee [Member] | |||
Accounts receivable | ¥ 124,923 | ¥ 367,741 | |
Accounts payable | 46,658 | 48,788 | |
Revenues | 666,554 | 956,887 | ¥ 538,288 |
Costs and expenses | 502,340 | 460,463 | 451,342 |
Revenues | 140,648,008 | 123,050,115 | 114,272,351 |
Costs and expenses | ¥ 134,507,654 | ¥ 117,974,877 | ¥ 108,549,039 |
Note 6 - Equity Method Investee
Note 6 - Equity Method Investees and Respective Ownership Percentages (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Multifeed [Member] | ||
Equity method percentage | 34.00% | 33.00% |
Equity method investment | ¥ 1,518,610 | ¥ 1,354,932 |
I-Revo [Member] | ||
Equity method percentage | 30.00% | 30.00% |
Equity method investment | ¥ 725,529 | ¥ 676,732 |
Trinity [Member] | ||
Equity method percentage | 33.75% | 33.75% |
Equity method investment | ¥ 133,325 | ¥ 101,618 |
Stratosphere [Member] | ||
Equity method percentage | 50.00% | |
Appiaries [Member] | ||
Equity method percentage | 49.00% | 49.00% |
Equity method investment | ¥ 16,396 | ¥ 106,196 |
e-Corporation [Member] | ||
Equity method percentage | 35.21% | 35.21% |
Equity method investment | ¥ 29,095 | ¥ 32,839 |
BIZNET [Member] | ||
Equity method percentage | 40.00% | 40.00% |
Equity method investment | ¥ 246,193 | ¥ 288,240 |
KIS [Member] | ||
Equity method percentage | 36.10% | |
Equity method investment | ¥ 53,576 | |
Leap Solutions [Member] | ||
Equity method percentage | 40.00% | |
Equity method investment | ¥ 256,928 | |
Equity method percentage | ||
Equity method investment | ¥ 2,979,652 | ¥ 2,560,557 |
Note 7 - Property and Equipme61
Note 7 - Property and Equipment (Details Textual) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
General and Administrative Expense [Member] | |||
Gain (Loss) on Disposition of Assets | ¥ (27,950) | ¥ (71,456) | ¥ (83,487) |
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years 73 days | ||
Depreciation, Depletion and Amortization, Nonproduction | ¥ 9,533,541 | 9,280,309 | ¥ 8,359,907 |
Capitalized Computer Software, Accumulated Amortization | 18,076,113 | 15,298,591 | |
Capitalized Computer Software, Amortization | ¥ 2,592,445 | ¥ 2,343,155 |
Note 7 - Property and Equipme62
Note 7 - Property and Equipment (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Equipment [Member] | ||
Property and equipment | ¥ 14,355,365 | ¥ 11,159,022 |
Office Equipment [Member] | ||
Property and equipment | 2,065,039 | 2,746,153 |
Land [Member] | ||
Property and equipment | 537,889 | 537,889 |
Building [Member] | ||
Property and equipment | 1,663,326 | 1,644,704 |
Leasehold Improvements [Member] | ||
Property and equipment | 3,904,189 | 3,798,172 |
Software and Software Development Costs [Member] | ||
Property and equipment | 28,815,164 | 24,804,449 |
Assets Held under Capital Leases [Member] | ||
Property and equipment | 28,328,721 | 24,271,434 |
Property and equipment | 79,669,693 | 68,961,823 |
Less accumulated depreciation and amortization | (45,345,543) | (39,591,769) |
PROPERTY AND EQUIPMENT—Net (Notes 7 and 9) | ¥ 34,324,150 | ¥ 29,370,054 |
Note 7 - Estimated Amortization
Note 7 - Estimated Amortization Expense of Capitalized Software (Details) ¥ in Thousands | Mar. 31, 2016JPY (¥) |
2,017 | ¥ 2,990,683 |
2,018 | 2,747,052 |
2,019 | 2,048,524 |
2,020 | 1,385,225 |
2,021 | ¥ 840,041 |
Note 8 - Goodwill and Other I64
Note 8 - Goodwill and Other Intangible Assets (Details Textual) - JPY (¥) | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 01, 2014 | |
Weighted Average [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 16 years 73 days | |||
Trademarks [Member] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ¥ 11,000,000 | |||
RYUKOSHA [Member] | ||||
Goodwill | ¥ 199,658,000 | |||
Goodwill, Impairment Loss | 0 | ¥ 0 | ¥ 0 | |
Amortization of Intangible Assets | 388,014,000 | 397,030,000 | ||
Goodwill | ¥ 6,169,609,000 | ¥ 6,169,609,000 | ¥ 5,969,951,000 |
Note 8 - Components of Intangib
Note 8 - Components of Intangible Assets (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Customer Relationships [Member] | |||
Customer relationships | ¥ 6,424,471 | ¥ 6,424,471 | |
Customer relationships | (3,007,558) | (2,619,544) | |
Customer relationships | 6,424,471 | 6,424,471 | |
Intangible assets subject to amortization—net | 3,416,913 | 3,804,927 | |
Telephone rights | 36,546 | 29,352 | |
Indefinite-Lived Trademarks | 96,000 | 107,000 | |
Goodwill | 6,169,609 | 6,169,609 | ¥ 5,969,951 |
Total | 6,302,155 | 6,305,961 | |
Total intangible assets | ¥ 9,719,068 | ¥ 10,110,888 |
Note 8 - Estimated Aggregate Am
Note 8 - Estimated Aggregate Amortization Expense of Intangible Assets (Details) ¥ in Thousands | Mar. 31, 2016JPY (¥) |
2,017 | ¥ 380,496 |
2,018 | 365,460 |
2,019 | 355,410 |
2,020 | 346,223 |
2,021 | ¥ 336,787 |
Note 8 - Carrying Amount of Goo
Note 8 - Carrying Amount of Goodwill (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Network Service and Systems Integration Business [Member] | |||
Goodwill | ¥ 6,054,340 | ¥ 6,054,340 | ¥ 5,854,682 |
Accumulated impairment losses | (120,282) | (120,282) | (120,282) |
GOODWILL (Note 8) | ¥ 5,934,058 | 5,934,058 | 5,734,400 |
Acquisition | 199,658 | ||
ATM Operation Business [Member] | |||
Goodwill | ¥ 235,551 | ¥ 235,551 | ¥ 235,551 |
Accumulated impairment losses | |||
GOODWILL (Note 8) | ¥ 235,551 | ¥ 235,551 | ¥ 235,551 |
Acquisition | |||
Goodwill | ¥ 6,289,891 | ¥ 6,289,891 | 6,090,233 |
Accumulated impairment losses | (120,282) | (120,282) | (120,282) |
GOODWILL (Note 8) | ¥ 6,169,609 | 6,169,609 | ¥ 5,969,951 |
Acquisition | ¥ 199,658 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Backbone Line [Member] | |||
Operating Leases, Rent Expense | ¥ 3,638,063 | ¥ 3,743,576 | ¥ 3,763,803 |
Local Access Lines [Member] | |||
Operating Leases, Rent Expense | 23,035,615 | 21,967,587 | 22,602,364 |
Other Lease and Rental [Member] | |||
Operating Leases, Rent Expense | 6,880,307 | 6,988,368 | 6,513,184 |
Due March 2020 [Member] | |||
Minimum Lease Payments, Sale Leaseback Transactions | 819,680 | ||
Due April 2022 [Member] | |||
Minimum Lease Payments, Sale Leaseback Transactions | 2,755,182 | ||
Operating Leases, Income Statement, Sublease Revenue | 41,002 | 29,521 | ¥ 24,082 |
Proceeds from Sale of Machinery and Equipment | 2,807,592 | 799,232 | |
Capital Leased Assets, Noncurrent, Fair Value Disclosure | 28,328,721 | 24,271,434 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Property, Plant, and Equipment Other, Accumulated Depreciation | 18,728,508 | 16,614,912 | |
Capital Leases, Net Investment in Sales Type Leases, Executory Costs | ¥ 646,079 | ¥ 345,698 |
Note 9 - Refundable Guarantee D
Note 9 - Refundable Guarantee Deposits (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Head Office [Member] | ||
Refundable guarantee deposits | ¥ 2,462,266 | ¥ 2,187,901 |
Sales and Subsidiaries Offices [Member] | ||
Refundable guarantee deposits | 551,242 | 547,549 |
Others [Member] | ||
Refundable guarantee deposits | 71,173 | 64,751 |
Refundable guarantee deposits | ¥ 3,084,681 | ¥ 2,800,201 |
Note 9 - Lessee Future Minimum
Note 9 - Lessee Future Minimum Lease Payments (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Connectivity Lines [Member] | ||
2,017 | ¥ 870,720 | |
2,018 | 673,610 | |
2,019 | ¥ 309,032 | |
2,020 | ||
2,021 | ||
2022 and thereafter | ||
Total minimum lease payments | ¥ 1,853,362 | |
Other Operating Leases [Member] | ||
2,017 | 3,579,008 | |
2,018 | 981,812 | |
2,019 | 173,907 | |
2,020 | 132,523 | |
2,021 | 109,581 | |
2022 and thereafter | 274,562 | |
Total minimum lease payments | 5,251,393 | |
2,017 | 4,142,275 | |
2,018 | 3,074,462 | |
2,019 | 2,326,311 | |
2,020 | 1,394,337 | |
2,021 | 886,236 | |
2022 and thereafter | 338,174 | |
Total minimum lease payments | 12,161,795 | |
Less amounts representing interest | (428,042) | |
Present value of net minimum capital lease payments | 11,733,753 | |
Less current portion | (3,954,386) | ¥ (3,522,113) |
Noncurrent portion | ¥ 7,779,367 | ¥ 4,340,421 |
Note 9 - Sales Type Leases (Det
Note 9 - Sales Type Leases (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 | |
2,017 | ¥ 845,336 | ||
2,018 | 751,865 | ||
2,019 | 617,127 | ||
2,020 | 401,579 | ||
2,021 | 352,438 | ||
2022 and thereafter | 379,599 | ||
Total minimum lease payments to be received* | [1] | 3,347,944 | ¥ 1,488,656 |
Less unearned income | (89,407) | (24,278) | |
Net investment in sales-type leases | 3,258,537 | 1,464,378 | |
Less current portion | (813,689) | (702,219) | |
Non-current net investment in sales-type leases | ¥ 2,444,848 | ¥ 762,159 | |
[1] | Estimated executory costs, including profit thereon, of 345,698 thousand and 646,079 thousand were excluded from total minimum lease payments to be received as of March 31, 2015 and 2016, respectively. |
Note 10 - Asset Retirement Ob72
Note 10 - Asset Retirement Obligations (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Balance at beginning of the year | ¥ 568,869 | ¥ 513,440 |
Liabilities incurred | 45,169 | 287,036 |
Liabilities settled | (31,321) | (243,109) |
Accretion expense | 12,466 | 11,502 |
Balance at end of the year | ¥ 595,183 | ¥ 568,869 |
Note 11 - Borrowings (Details T
Note 11 - Borrowings (Details Textual) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Short-term Debt, Weighted Average Interest Rate | 0.498% | 0.568% |
Line of Credit Facility, Maximum Borrowing Capacity | ¥ 10,750 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - JPY (¥) | 12 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Maximum [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.20% | |||||
Scenario, Forecast [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 30.90% | 31.10% | 31.70% | |||
JAPAN | ||||||
Operating Loss Carryforwards | ¥ 652,326,000 | |||||
UNITED STATES | ||||||
Operating Loss Carryforwards | 1,281,086,000 | |||||
Other Countries [Member] | ||||||
Operating Loss Carryforwards | ¥ 990,871,000 | |||||
National Tax Agency, Japan [Member] | Earliest Tax Year [Member] | ||||||
Open Tax Year | 2,013 | |||||
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | ||||||
Open Tax Year | 2,006 | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 33.50% | 35.90% | 38.30% | |||
Unrecognized Tax Benefits | ¥ 0 | ¥ 0 | ||||
Increase in Deferred Tax Liability Net | 23,183,000 | 51,788,000 | ¥ 106,487,000 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 15,696,000 | ¥ 183,813,000 | ¥ (933,623,000) | |||
Undistributed Earnings of Foreign Subsidiaries | ¥ 458,233,000 |
Note 12 - Income From Operation
Note 12 - Income From Operations Before Income Tax Expense (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Domestic | ¥ 6,460,898 | ¥ 5,407,802 | ¥ 6,406,153 |
Foreign | (267,564) | (268,810) | (131,262) |
Total | 6,193,334 | 5,138,992 | 6,274,891 |
Domestic | 1,929,139 | 1,720,557 | 2,453,549 |
Foreign | 5,277 | (34,922) | 41,582 |
Total | 1,934,416 | 1,685,635 | 2,495,131 |
Domestic | 255,992 | 181,088 | (729,822) |
Foreign | (6,877) | 30,142 | 29,996 |
Total | ¥ 249,115 | ¥ 211,230 | ¥ (699,826) |
Note 12 - Deferred Tax Assets a
Note 12 - Deferred Tax Assets and Liabilities (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 | |
Customer Relationships [Member] | |||
Customer relationships | ¥ 1,058,578 | ¥ 1,299,335 | |
Trademarks [Member] | |||
Customer relationships | 29,664 | 38,413 | |
Unrealized gains on available-for-sale securities | 620,755 | 832,426 | |
Capital leases | 130,365 | 141,255 | |
Accrued expenses | 933,947 | 995,253 | |
Retirement and pension cost | 1,102,215 | 960,151 | |
Allowance for doubtful accounts | 56,534 | 58,760 | |
Depreciation | 72,109 | 101,652 | |
Net loss on other investments | 205,373 | 230,794 | |
Operating loss carryforwards | 947,031 | 1,276,690 | |
Transactions in transit* | [1] | 96,714 | 106,631 |
Impairment loss on telephone rights | 67,102 | 74,268 | |
Accrued enterprise tax | 120,793 | 86,448 | |
Asset retirement obligation | 183,912 | 194,553 | |
Deferred revenue | 387,481 | 353,098 | |
Tax deduction of goodwill | ¥ 791,377 | 810,172 | |
Excess of tax deductible goodwill over the reported amount of goodwill | 88,769 | ||
Investments in equity method investees | ¥ 291,266 | 241,210 | |
Investments in funds | 83,818 | 100,045 | |
Asset retirement cost | 146,266 | 160,293 | |
Other | 329,491 | 333,752 | |
Other | 68,941 | 85,128 | |
Total | 4,620,171 | 4,995,488 | |
Total | 3,103,561 | 3,573,608 | |
Valuation allowance | (627,693) | (611,997) | |
Total | 3,992,478 | 4,383,491 | |
Total | ¥ 3,103,561 | ¥ 3,573,608 | |
[1] | This item arises from transactions between IIJ and foreign subsidiaries, which were recorded in the different periods as a result of the difference in each company's fiscal year-end. |
Note 12 - Operating Loss Carryf
Note 12 - Operating Loss Carryforwards (Details) ¥ in Thousands | Mar. 31, 2016JPY (¥) |
Others [Member] | Tax Year 2018 [Member] | |
Operating Loss Carryforward | ¥ 79,790 |
Others [Member] | Tax Year 2019 [Member] | |
Operating Loss Carryforward | 214,286 |
Others [Member] | Tax Year 2020 [Member] | |
Operating Loss Carryforward | 829,986 |
Others [Member] | Tax Year 2021 and Thereafter [Member] | |
Operating Loss Carryforward | 1,800,221 |
Others [Member] | |
Operating Loss Carryforward | 2,924,283 |
Enterprise Tax [Member] | Tax Year 2021 and Thereafter [Member] | |
Operating Loss Carryforward | 253,286 |
Enterprise Tax [Member] | |
Operating Loss Carryforward | 253,286 |
Inhabitant Tax [Member] | Tax Year 2021 and Thereafter [Member] | |
Operating Loss Carryforward | 18,663 |
Inhabitant Tax [Member] | |
Operating Loss Carryforward | ¥ 18,663 |
Note 12 - Income Tax Reconcilia
Note 12 - Income Tax Reconciliation (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Amount computed by using normal Japanese statutory tax rate | ¥ 2,074,767 | ¥ 1,844,898 | ¥ 2,403,283 |
Expenses not deductible for tax purpose | 93,262 | 76,258 | 102,634 |
Inhabitant tax—per capita | 39,538 | 39,114 | 37,122 |
Change in valuation allowance | 15,696 | 159,163 | (957,182) |
Tax effects on investments in equity method investees | 48,368 | 19,650 | 65,489 |
Enterprise tax—not based on income | 146,883 | 90,086 | 82,191 |
Tax rate change | 23,183 | 51,788 | ¥ 106,487 |
Tax credit | ¥ (269,145) | (232,834) | |
Tax refund by loss carryback | (32,275) | ||
Other—net | ¥ 10,979 | (118,983) | ¥ (44,719) |
Income tax expense as reported | ¥ 2,183,531 | ¥ 1,896,865 | ¥ 1,795,305 |
Note 13 - Retirement and Pens79
Note 13 - Retirement and Pension Plans (Details Textual) - JPY (¥) ¥ in Thousands | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2011 | |
Debt Securities [Member] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 63.00% | |||
Equity Securities [Member] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% | |||
Other Financial Instruments [Member] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 2.00% | |||
Contributions Allocated to Debt Securities Equity Securities and Other Financial Instruments [Member] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | |||
Contributions Allocated to Life Insurance Pooled Investment Portfolios [Member] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | |||
Minimum [Member] | ||||
Multiemployer Plans Funded Status, Percentage | 80.00% | |||
Auditor Retirement Benefits [Member] | ||||
Other Postretirement Benefits Payable | ¥ 7,530 | ¥ 5,530 | ||
Full Time Director Benefits [Member] | Parent Company and Subsidiaries [Member] | ||||
Other Postretirement Benefits Payable | 379,685 | 430,638 | ||
Full Time Director Benefits [Member] | ||||
Other Postretirement Benefits Payable | ¥ 255,330 | |||
Defined Benefit Plan, Accumulated Benefit Obligation | 4,084,419 | 3,323,739 | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation | 6,388,110 | 5,285,093 | ||
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 3,193,899 | 2,930,310 | ||
Defined Benefit Plan, Plans with Benefit Obligations with No Plan Assets Aggregate Benefit Obligation | ¥ 104,051 | 90,851 | ||
Defined Benefit Plan Unrecognized Net Loss Amortization Period | 14 years | |||
Defined Benefit Plan Unrecognized Net Obligation Amortization Period | 21 years | |||
Defined Benefit Plan, Future Amortization of Gain (Loss) | ¥ 24,584 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | ¥ 334,252 | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1.60% | |||
Pension Contributions | ¥ 138,372 | 134,591 | ¥ 125,195 | |
Multiemployer Plan, Period Contributions | ¥ 123,674 | ¥ 293,132 | 265,470 | |
Multiemployer Plan Period Contributions, Percentage | 5.00% | |||
Multiemployer Plans, Plan Assets | ¥ 307,788,655 | |||
Other Postretirement Benefits Payments | ¥ 2,010 |
Note 13 - Net Periodic Pension
Note 13 - Net Periodic Pension Cost (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Service cost | ¥ 648,944 | ¥ 573,956 | ¥ 542,584 |
Interest cost | 67,525 | 73,902 | 45,418 |
Expected return on plan assets | (87,909) | (63,037) | (48,303) |
Amortization of transition obligation | 365 | 369 | ¥ 369 |
Amortization of actuarial gain | (2,971) | (2,782) | |
Net periodic pension cost | ¥ 625,954 | ¥ 582,408 | ¥ 540,068 |
Note 13 - Other Changes in Plan
Note 13 - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net actuarial loss (gain) | ¥ 585,332 | ¥ 127,065 | ¥ (63,775) |
Amortization of transition obligation in net periodic pension cost | (365) | (369) | ¥ (369) |
Amortization of actuarial gain | 2,971 | 2,782 | |
Amounts recognized in other comprehensive income | 587,938 | 129,478 | ¥ (64,144) |
Total net periodic pension cost and amounts recognized in other comprehensive income | ¥ 1,213,892 | ¥ 711,886 | ¥ 475,924 |
Note 13 - Change in Benefit Obl
Note 13 - Change in Benefit Obligation and Plan Assets (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2016 | |
Benefit obligation at beginning of year | ¥ 5,285,093 | ¥ 4,426,598 | ||
Service cost | 648,944 | 573,956 | ¥ 542,584 | |
Interest cost | 67,525 | 73,902 | 45,418 | |
Actuarial loss | 480,755 | 283,860 | ||
Benefit paid | (94,207) | (73,223) | ||
Benefit obligation at end of year | 6,388,110 | 5,285,093 | 4,426,598 | |
Fair value of plan assets at beginning of year | 2,930,310 | 2,424,499 | ||
Actual return (loss) on plan assets | (16,667) | 219,832 | ||
Employer contribution | 334,252 | 322,826 | ||
Benefits paid | (53,996) | (36,847) | ||
Fair value of plan assets at end of year | 2,930,310 | 2,424,499 | ¥ 2,424,499 | ¥ 3,193,899 |
Funded status at end of year | ¥ (3,194,211) | ¥ (2,354,783) |
Note 13 - Amounts Recognized in
Note 13 - Amounts Recognized in Consolidated Balance Sheets (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Accrued retirement and pension costs-noncurrent | ¥ (3,194,211) | ¥ (2,354,783) |
Note 13 - Amounts Recognized 84
Note 13 - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Net actuarial loss | ¥ 959,426 | ¥ 371,122 |
Obligation at transition | 365 | |
Total | ¥ 959,426 | ¥ 371,487 |
Note 13 - Actuarial Assumptions
Note 13 - Actuarial Assumptions (Details) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Discount rate | 0.70% | 1.30% | |
Discount rate | 1.30% | 1.70% | 1.20% |
Expected long-term rate of return on plan assets | 3.00% | 2.60% | 2.40% |
Rate of increase in compensation | 3.10% | 3.20% | |
Rate of increase in compensation | 3.20% | 3.20% | 3.30% |
Note 13 - Benefit Payments Expe
Note 13 - Benefit Payments Expected to Be Paid (Details) ¥ in Thousands | Mar. 31, 2016JPY (¥) |
2,017 | ¥ 94,235 |
2,018 | 119,570 |
2,019 | 132,585 |
2,020 | 151,505 |
2,021 | 195,246 |
2022–2026 | 1,708,740 |
Total | ¥ 2,401,881 |
Note 13 - Basis of Fair Value M
Note 13 - Basis of Fair Value Measurement of Pension Plan Assets (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Japanese Equity Securities [Member] | ||||
Plan assets | ¥ 469,780 | ¥ 417,833 | ||
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | US Equity Securities [Member] | ||||
Plan assets | 144,147 | 124,670 | ||
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Other Equity Securities Developed Countries [Member] | ||||
Plan assets | 84,400 | 78,027 | ||
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||||
Plan assets | ¥ 698,327 | ¥ 620,530 | ||
Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | Japanese Government and Municipalities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | Domestic Corporate Debt Securities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | US Government Agencies Debt Securities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | Other Government Debt Securities Developed Countries [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | Residential Mortgage Backed Securities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 1 [Member] | Other Financial Instruments [Member] | ||||
Plan assets | [1] | |||
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||||
Plan assets | ¥ 111,223 | ¥ 165,145 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Plan assets | ¥ 809,550 | ¥ 785,675 | ||
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | Japanese Equity Securities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | US Equity Securities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | Other Equity Securities Developed Countries [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | Japanese Government and Municipalities [Member] | ||||
Plan assets | ¥ 577,488 | ¥ 495,637 | ||
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | Domestic Corporate Debt Securities [Member] | ||||
Plan assets | 241,744 | 256,954 | ||
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | US Government Agencies Debt Securities [Member] | ||||
Plan assets | 118,099 | 110,851 | ||
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | Other Government Debt Securities Developed Countries [Member] | ||||
Plan assets | 158,547 | 152,927 | ||
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | Residential Mortgage Backed Securities [Member] | ||||
Plan assets | 21,381 | 19,256 | ||
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | ||||
Plan assets | 1,117,259 | 1,035,625 | ||
Fair Value, Inputs, Level 2 [Member] | Other Financial Instruments [Member] | ||||
Plan assets | [1] | ¥ 1,267,090 | ¥ 1,109,010 | |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | ||||
Plan assets | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Plan assets | ¥ 2,384,349 | ¥ 2,144,635 | ||
Equity Securities [Member] | Japanese Equity Securities [Member] | ||||
Plan assets | 469,780 | 417,833 | ||
Equity Securities [Member] | US Equity Securities [Member] | ||||
Plan assets | 144,147 | 124,670 | ||
Equity Securities [Member] | Other Equity Securities Developed Countries [Member] | ||||
Plan assets | 84,400 | 78,027 | ||
Equity Securities [Member] | ||||
Plan assets | 698,327 | 620,530 | ||
Debt Securities [Member] | Japanese Government and Municipalities [Member] | ||||
Plan assets | 577,488 | 495,637 | ||
Debt Securities [Member] | Domestic Corporate Debt Securities [Member] | ||||
Plan assets | 241,744 | 256,954 | ||
Debt Securities [Member] | US Government Agencies Debt Securities [Member] | ||||
Plan assets | 118,099 | 110,851 | ||
Debt Securities [Member] | Other Government Debt Securities Developed Countries [Member] | ||||
Plan assets | 158,547 | 152,927 | ||
Debt Securities [Member] | Residential Mortgage Backed Securities [Member] | ||||
Plan assets | 21,381 | 19,256 | ||
Debt Securities [Member] | ||||
Plan assets | 1,117,259 | 1,035,625 | ||
Other Financial Instruments [Member] | ||||
Plan assets | [1] | 1,267,090 | 1,109,010 | |
Cash [Member] | ||||
Plan assets | 111,223 | 165,145 | ||
Plan assets | ¥ 3,193,899 | ¥ 2,930,310 | ¥ 2,424,499 | |
[1] | Other financial instruments are life insurance pooled investment portfolios. |
Note 14 - Shareholders' Equit88
Note 14 - Shareholders' Equity (Details Textual) - JPY (¥) ¥ / shares in Units, ¥ in Thousands | Nov. 09, 2015 | Jul. 13, 2015 | Nov. 07, 2014 | Jul. 10, 2014 | Jan. 01, 2014 | Nov. 08, 2013 | Jul. 11, 2013 | Jun. 26, 2015 | Jun. 25, 2014 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 26, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 28, 2011 | Jun. 28, 2006 |
Directors and Executive Officers [Member] | |||||||||||||||||
Options Exercisable Service Period | 1 year | ||||||||||||||||
Options Exercisable Expiration Period | 29 years | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 151 | 128 | 89 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ¥ 369,200 | ¥ 422,600 | ¥ 647,000 | ||||||||||||||
IIJ Exlayer [Member] | |||||||||||||||||
Treasury Stock Alloted During Period Shares Acquisition | 104 | ||||||||||||||||
Net Assets Minimum Requirement After Dividends | ¥ 3,000 | ||||||||||||||||
Adjustments to Additional Paid in Capital to Eliminate Accumulated Deficit | ¥ 21,980,395 | ||||||||||||||||
Adjustments Common Stock to Eliminate Accumulated Deficit | ¥ 2,539,222 | ||||||||||||||||
Percentage of Dividends Appropriated as Legal Reserve | 10.00% | ||||||||||||||||
Additional Paid in Capital Percentage of Common Stock | 25.00% | ||||||||||||||||
Retained Earnings Available for Dividends Under the Company Act | ¥ 24,895,644 | ||||||||||||||||
Retained Earnings, Undistributed Earnings from Equity Method Investees | ¥ 869,770 | ||||||||||||||||
Stock Issued During Period, Shares, New Issues | 700,000 | 4,700,000 | |||||||||||||||
Sale of Stock, Price Per Share | ¥ 3,208 | ¥ 3,346 | |||||||||||||||
Share Price | ¥ 3,208 | ||||||||||||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | ¥ 51,996 | ||||||||||||||||
Proceeds from Issuance of Common Stock | ¥ 17,271,204 | ¥ 17,271,204 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | ¥ 11 | ¥ 11 | ¥ 11 | ¥ 11 | ¥ 11 | ¥ 10 | |||||||||||
Dividends | ¥ 505,479 | ¥ 505,365 | ¥ 505,329 | ¥ 505,365 | ¥ 505,330 | ¥ 405,368 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ¥ 1 | ¥ 1 | ¥ 1 | ¥ 1 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 151 | 128 | |||||||||||||||
Allocated Share-based Compensation Expense | ¥ 55,337 | ¥ 54,965 | ¥ 53,542 | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ¥ 13,937 |
Note 14 - Black-Scholes Option-
Note 14 - Black-Scholes Option-Pricing Model Assumptions (Details) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Risk-free interest rate | 0.818% | 0.98% | 1.314% |
Expected lives (years) | 15 years | 15 years | 15 years |
Expected volatility | 53.794% | 55.217% | 55.861% |
Expected dividends | 1.023% | 0.909% | 0.535% |
Note 14 - Stock Acquisition Rig
Note 14 - Stock Acquisition Rights Plan (Details) - JPY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Unexercised options outstanding, beginning balance (in shares) | 458 | 346 |
Unexercised options outstanding, beginning balance (in shares) | 91,600 | 69,200 |
Unexercised options outstanding, beginning balance (in Japanese Yen per share) | ¥ 1 | ¥ 1 |
Granted (in shares) | 151 | 128 |
Granted (in shares) | 30,200 | 25,600 |
Granted (in Japanese Yen per share) | ¥ 1 | ¥ 1 |
Exercised (in shares) | (52) | (16) |
Exercised (in shares) | (10,400) | (3,200) |
Exercised (in Japanese Yen per share) | ¥ 1 | ¥ 1 |
Unexercised options outstanding, ending balance (in shares) | 557 | 458 |
Unexercised options outstanding, ending balance (in shares) | 111,400 | 91,600 |
Unexercised options outstanding, ending balance (in Japanese Yen per share) | ¥ 1 | ¥ 1 |
Exercisable options—March 31, 2016 (in shares) | 406 | |
Exercisable options—March 31, 2016 (in shares) | 81,200 | |
Exercisable options—March 31, 2016 (in Japanese Yen per share) | ¥ 1 | |
Exercisable options—March 31, 2016 | 26 years 292 days | |
Exercisable options—March 31, 2016 | ¥ 190,705 | |
Expected to vest after July 14, 2016 (in shares) | 151 | |
Expected to vest after July 14, 2016 (in shares) | 30,200 | |
Expected to vest after July 14, 2016 (in Japanese Yen per share) | ¥ 1 | |
Expected to vest after July 14, 2016 | 29 years 113 days | |
Expected to vest after July 14, 2016 | ¥ 70,927 |
Note 14 - Effects of Changes in
Note 14 - Effects of Changes in IIJ's Ownership Interest in Its Subsidiaries in the Company's Shareholder's Equity (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net income attributable to IIJ | ¥ 4,038,282 | ¥ 3,322,081 | ¥ 4,442,237 |
Increase in additional paid-in capital for acquisition of noncontrolling interest of IIJ-Exlayer | 99 | ||
Change from net income attributable to IIJ and transfers from noncontrolling interests | ¥ 4,038,282 | ¥ 3,322,081 | ¥ 4,442,336 |
Note 15 - Tax Effects Allocated
Note 15 - Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Foreign currency translation adjustments, before tax | ¥ (67,652) | ¥ 243,538 | ¥ 419,557 |
Foreign currency translation adjustments, net of tax | (67,652) | 243,538 | 419,557 |
Amount arising during the period, before tax | (417,400) | 124,370 | 1,656,759 |
Amount arising during the period, tax | 128,977 | (44,649) | (594,776) |
Amount arising during the period, net of tax | (288,423) | 79,721 | 1,061,983 |
Less: Reclassification adjustments for gains included in net income, before tax | 3,965 | (35,934) | (107,655) |
Less: Reclassification adjustments for gains included in net income, tax | (1,328) | 12,900 | 41,232 |
Less: Reclassification adjustments for gains included in net income, net of tax | 2,637 | (23,034) | (66,423) |
Other, tax | 9,834 | 4,903 | (7,421) |
Other, net of tax | 9,834 | 4,903 | (7,421) |
Net unrealized holding gain (loss) during the period, before tax | (413,435) | 88,436 | 1,549,104 |
Net unrealized holding gain (loss) during the period, tax | 137,483 | (26,846) | (560,965) |
Unrealized holding gain (loss) on securities | (275,952) | 61,590 | 988,139 |
Amount arising during the period, before tax | (585,332) | (127,065) | 63,775 |
Amount arising during the period, tax | 192,576 | 45,616 | (22,896) |
Amount arising during the period, net of tax | (392,756) | (81,449) | 40,879 |
Less: Reclassification adjustments for losses included in net income, before tax | (2,606) | (2,413) | 369 |
Less: Reclassification adjustments for losses included in net income, tax | 944 | 862 | (133) |
Less: Reclassification adjustments for losses included in net income, net of tax | (1,662) | (1,551) | 236 |
Net defined benefit pension plans, before tax | (587,938) | (129,478) | 64,144 |
Net defined benefit pension plans, tax | 193,520 | 46,478 | (23,029) |
Net defined benefit pension plans, net of tax | (394,418) | (83,000) | 41,115 |
Other comprehensive income (loss), before tax | (1,069,025) | 202,496 | 2,032,805 |
Other comprehensive income (loss), tax | 331,003 | 19,632 | (583,994) |
Other comprehensive income | ¥ (738,022) | ¥ 222,128 | ¥ 1,448,811 |
Note 15 - Changes in Accumulate
Note 15 - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Year ended | ¥ 1,544,946 | ¥ 1,483,356 | ¥ 495,217 |
Other comprehensive income before reclassifications | (278,589) | 84,624 | 1,054,562 |
Amounts reclassified out of accumulated other comprehensive income | 2,637 | (23,034) | (66,423) |
Other comprehensive income | (275,952) | 61,590 | ¥ 988,139 |
Other | |||
Year ended | 1,268,994 | 1,544,946 | ¥ 1,483,356 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Year ended | (229,203) | (146,203) | (187,318) |
Other comprehensive income before reclassifications | (392,756) | (81,449) | 40,879 |
Amounts reclassified out of accumulated other comprehensive income | (1,662) | (1,551) | 236 |
Other comprehensive income | (394,418) | (83,000) | ¥ 41,115 |
Other | |||
Year ended | (623,621) | (229,203) | ¥ (146,203) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Year ended | 622,906 | 375,633 | (44,129) |
Other comprehensive income before reclassifications | ¥ (71,610) | ¥ 247,273 | ¥ 419,701 |
Amounts reclassified out of accumulated other comprehensive income | |||
Other comprehensive income | ¥ (71,610) | ¥ 247,273 | ¥ 419,701 |
Other | 61 | ||
Year ended | 551,296 | 622,906 | 375,633 |
AOCI Attributable to Parent [Member] | |||
Year ended | 1,938,649 | 1,712,786 | 263,770 |
Other comprehensive income before reclassifications | (742,955) | 250,448 | 1,515,142 |
Amounts reclassified out of accumulated other comprehensive income | 975 | (24,585) | (66,187) |
Other comprehensive income | (741,980) | 225,863 | 1,448,955 |
Other | 61 | ||
Year ended | 1,196,669 | 1,938,649 | 1,712,786 |
Year ended | 1,938,649 | ||
Other comprehensive income | (738,022) | 222,128 | ¥ 1,448,811 |
Year ended | ¥ 1,196,669 | ¥ 1,938,649 |
Note 15 - Components of Accumul
Note 15 - Components of Accumulated Other Comprehensive Income (Loss) (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Unrealized holding gain on securities | ¥ 35,934 | ¥ 107,655 | |
Impairment of other investments | ¥ (3,965) | ||
Income tax expense | 1,328 | ¥ (12,900) | ¥ (41,232) |
Net income | (2,637) | 23,034 | 66,423 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Income tax expense | (944) | (862) | 133 |
Net income | 1,662 | 1,551 | (236) |
Defined benefit pension plans | 2,606 | 2,413 | (369) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Net income attributable to IIJ | (975) | 24,585 | ¥ 66,187 |
Impairment of other investments | (14,729) | (29,117) | |
Income tax expense | 2,183,531 | 1,896,865 | ¥ 1,795,305 |
Net income | 4,190,022 | 3,396,753 | 4,683,632 |
Net income attributable to IIJ | ¥ 4,038,282 | ¥ 3,322,081 | ¥ 4,442,237 |
Note 16 - Earnings Per Share (D
Note 16 - Earnings Per Share (Details) - JPY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net income attributable to IIJ | ¥ 4,038,282 | ¥ 3,322,081 | ¥ 4,442,237 |
Basic weighted-average number of common shares outstanding (in shares) | 45,950,098 | 45,942,291 | 44,306,680 |
Dilutive effect of stock options (in shares) | 93,285 | 72,446 | 54,403 |
Diluted weighted-average number of common shares outstanding (in shares) | 46,043,383 | 46,014,737 | 44,361,083 |
Basic net income attributable to Internet Initiative Japan Inc. per common share (in Japanese Yen per share) | ¥ 87.88 | ¥ 72.31 | ¥ 100.26 |
Diluted net income attributable to Internet Initiative Japan Inc. per common share (in Japanese Yen per share) | ¥ 87.71 | ¥ 72.20 | ¥ 100.14 |
Note 17 - Commitments And Con96
Note 17 - Commitments And Contingent Liabilities (Details Textual) ¥ in Thousands, $ in Thousands | 36 Months Ended | 119 Months Ended | |
Mar. 31, 2016JPY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016JPY (¥) | |
May 2006, January 2007, January 2008 and January 2015 Agreements [Member] | Investment Per Fund [Member] | |||
Contractual Obligation | $ 5,000 | ||
May 2006, January 2007, January 2008 and January 2015 Agreements [Member] | |||
Contractual Obligation | 20,000 | ||
Payments to Acquire Investments | $ 14,093 | ||
April 2013 Agreement [Member] | |||
Contractual Obligation | ¥ | ¥ 100,000 | ||
Payments to Acquire Investments | ¥ | ¥ 87,404 |
Note 18 - Financial Instrumen97
Note 18 - Financial Instruments (Details Textual) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Non-marketable Equity Securities [Member] | ||
Fair Value, Estimate Not Practicable, Investments | ¥ 1,019,685 | ¥ 853,629 |
Investments in Funds [Member] | ||
Fair Value, Estimate Not Practicable, Investments | ¥ 984,659 | ¥ 1,492,596 |
Note 18 - Carrying Amounts and
Note 18 - Carrying Amounts and Fair Value of Financial Instruments (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Estimate of Fair Value Measurement [Member] | ||
Practicable to estimate fair value | ¥ 3,944,397 | ¥ 4,314,481 |
Practicable to estimate fair value | 3,944,397 | 4,314,481 |
Portion at Other than Fair Value Measurement [Member] | ||
Fair Value, Estimate Not Practicable, Investments | 2,004,344 | 2,346,225 |
Practicable to estimate fair value | 5,948,741 | 6,660,706 |
Noncurrent refundable insurance policies (other assets) | 155,727 | 110,894 |
Noncurrent refundable insurance policies (other assets) | ¥ 155,727 | ¥ 110,894 |
Note 19 - Fair Value Measurem99
Note 19 - Fair Value Measurements (Details Textual) - JPY (¥) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Inputs, Level 3 [Member] | ||
Other Investment Not Readily Marketable, Fair Value | ¥ 235,000 | ¥ 2,435,000 |
Indefinite-Lived Trademarks | 96,000,000 | |
Equity Securities [Member] | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 10,765,000 | 29,117,000 |
Trademarks [Member] | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 11,000,000 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 11,000,000 | |
Other Investment Not Readily Marketable, Carrying Value | 11,000,000 | 31,552,000 |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 21,765,000 | 29,117,000 |
Indefinite-Lived Trademarks | ¥ 96,000,000 | ¥ 107,000,000 |
Note 19 - Assets Measured at Fa
Note 19 - Assets Measured at Fair Value on a Recurring Basis in Yen (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities—equity securities | ¥ 3,830,847 | ¥ 4,212,571 |
Available-for-sale securities—debt securities | ||
Available-for-sale-Fair Value | ¥ 3,830,847 | ¥ 4,212,571 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities—equity securities | ||
Available-for-sale securities—debt securities | ¥ 113,550 | ¥ 101,910 |
Available-for-sale-Fair Value | 113,550 | 101,910 |
Available-for-sale securities—equity securities | 3,830,847 | 4,212,571 |
Available-for-sale securities—debt securities | 113,550 | 101,910 |
Available-for-sale-Fair Value | ¥ 3,944,397 | ¥ 4,314,481 |
Note 19 - Assets Measured at101
Note 19 - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | ¥ 235 | ¥ 2,435 |
Fair Value, Inputs, Level 3 [Member] | Trademarks [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 96,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 96,235 | 2,435 |
Equity Securities [Member] | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 10,765 | 29,117 |
Trademarks [Member] | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 11,000 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | ¥ 21,765 | ¥ 29,117 |
Note 19 - Significant Unobserva
Note 19 - Significant Unobservable Inputs of Level 3 Non-recurring Measurements (Details) - Fair Value, Inputs, Level 3 [Member] - JPY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Approach Valuation Technique [Member] | Trademarks [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | ¥ 96,000 | |
Trademark | 6.30% | |
Trademark | 0.30% | |
Assets, Fair Value Disclosure, Nonrecurring | ¥ 96,235 | ¥ 2,435 |
Note 20 - Business Segments (De
Note 20 - Business Segments (Details Textual) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
IBM Japan [Member] | |||
Revenues | ¥ 13,125,454 | ||
Revenues | ¥ 140,648,008 | ¥ 123,050,115 | ¥ 114,272,351 |
Note 20 - Segment Revenues (Det
Note 20 - Segment Revenues (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Network Service and Systems Integration Business [Member] | Customers [Member] | |||
Revenues | ¥ 136,759,130 | ¥ 119,409,987 | ¥ 111,445,519 |
Network Service and Systems Integration Business [Member] | Intersegment [Member] | |||
Revenues | 383,058 | 408,567 | 455,975 |
Network Service and Systems Integration Business [Member] | |||
Revenues | 137,142,188 | 119,818,554 | 111,901,494 |
ATM Operation Business [Member] | Customers [Member] | |||
Revenues | 3,888,878 | 3,640,128 | 2,826,832 |
ATM Operation Business [Member] | |||
Revenues | 3,888,878 | 3,640,128 | 2,826,832 |
Intersegment Eliminations [Member] | |||
Revenues | (383,058) | (408,567) | (455,975) |
Revenues | ¥ 140,648,008 | ¥ 123,050,115 | ¥ 114,272,351 |
Note 20 - Segment Profit or Los
Note 20 - Segment Profit or Loss (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Network Service and Systems Integration Business [Member] | |||
Operating Income (Loss) | ¥ 5,127,807 | ¥ 4,334,946 | ¥ 5,274,753 |
ATM Operation Business [Member] | |||
Operating Income (Loss) | 1,148,922 | 886,340 | 578,794 |
Intersegment Eliminations [Member] | |||
Operating Income (Loss) | (136,375) | (146,048) | (130,235) |
Operating Income (Loss) | ¥ 6,140,354 | ¥ 5,075,238 | ¥ 5,723,312 |
Note 20 - Segment Assets (Detai
Note 20 - Segment Assets (Details) - JPY (¥) ¥ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Network Service and Systems Integration Business [Member] | ||
Segment assets | ¥ 113,747,677 | ¥ 105,160,187 |
ATM Operation Business [Member] | ||
Segment assets | 4,087,227 | 3,545,128 |
Segment assets | ¥ 117,834,904 | ¥ 108,705,315 |
Note 20 - Other Significant Seg
Note 20 - Other Significant Segment Items (Details) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Network Service and Systems Integration Business [Member] | |||
Depreciation and amortization | ¥ 9,377,657 | ¥ 9,139,687 | ¥ 8,405,080 |
ATM Operation Business [Member] | |||
Depreciation and amortization | 543,898 | 537,652 | 417,901 |
Depreciation and amortization | ¥ 9,921,555 | ¥ 9,677,339 | ¥ 8,822,981 |
Note 21 - Advertising Expenses
Note 21 - Advertising Expenses (Details Textual) - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Advertising Expense | ¥ 815,439 | ¥ 574,118 | ¥ 656,890 |
Note 22 - Related Party Tran109
Note 22 - Related Party Transactions (Details Textual) - NTT [Member] | Mar. 31, 2016 |
Percentage of Shares Owned By NTT Group | 26.00% |
Percentage of Voting Shares Owned By NTT Group | 26.40% |
Note 22 - Related Party Tran110
Note 22 - Related Party Transactions (Details) - NTT [Member] - JPY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accounts receivable | ¥ 1,184,804 | ¥ 463,613 | |
Accounts payable | 3,041,505 | 2,535,234 | |
Lease obligations | 1,750,054 | 1,268,324 | |
Revenues | 3,129,622 | 2,898,040 | ¥ 2,370,954 |
Costs | 24,268,440 | 16,706,036 | 15,579,173 |
Interest expenses | ¥ 30,370 | ¥ 24,402 | ¥ 24,756 |
Note 23 - Subsequent Events (De
Note 23 - Subsequent Events (Details Textual) - JPY (¥) ¥ / shares in Units, ¥ in Thousands | Jun. 24, 2016 | Nov. 09, 2015 | Nov. 07, 2014 | Nov. 08, 2013 | Jun. 26, 2015 | Jun. 25, 2014 | Jun. 26, 2013 |
Subsequent Event [Member] | |||||||
Common Stock, Dividends, Per Share, Declared | ¥ 11 | ||||||
Dividends, Common Stock, Cash | ¥ 505,480 | ||||||
Common Stock, Dividends, Per Share, Declared | ¥ 11 | ¥ 11 | ¥ 11 | ¥ 11 | ¥ 11 | ¥ 10 |