UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

Total number of pages: 13

NTT DOCOMO, INC.

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ     Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Information furnished in this form:

1.

Report filed on November 4, 2010 with the Director of the Kanto Local Finance Bureau of Japan pursuant to the Financial Instruments and Exchange Act of Japan

 

 

NTT DOCOMO, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

SEPTEMBER 30, 2010 and MARCH 31, 2010

		Millions of yen
		September 30, 2010				March 31, 2010
ASSETS
Current assets:
Cash and cash equivalents		¥	529,726			¥	357,715
Short-term investments			393,299				403,010
Accounts receivable			745,393				838,226
Allowance for doubtful accounts			(15,557	)			(15,633	)
Credit card receivables			150,782				126,009
Inventories			174,113				141,277
Deferred tax assets			82,928				100,545
Prepaid expenses and other current assets			115,915				109,829
Total current assets			2,176,599				2,060,978
Property, plant and equipment:
Wireless telecommunications equipment			5,536,436				5,478,833
Buildings and structures			837,679				830,921
Tools, furniture and fixtures			521,941				516,084
Land			199,180				199,018
Construction in progress			107,213				83,608
Accumulated depreciation and amortization			(4,624,610	)			(4,500,874	)
Total property, plant and equipment, net			2,577,839				2,607,590
Non-current investments and other assets:
Investments in affiliates			551,411				578,095
Marketable securities and other investments			135,425				151,026
Intangible assets, net			642,663				628,691
Goodwill			196,822				198,436
Other assets			254,778				257,911
Deferred tax assets			296,334				274,048
Total non-current investments and other assets			2,077,433				2,088,207
Total assets		¥	6,831,871			¥	6,756,775
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt		¥	285,363			¥	180,716
Short-term borrowings			76				78
Accounts payable, trade			513,925				632,437
Accrued payroll			52,840				54,580
Accrued interest			990				995
Accrued income taxes			200,307				185,890
Other current liabilities			116,966				133,466
Total current liabilities			1,170,467				1,188,162
Long-term liabilities:
Long-term debt (exclusive of current portion)			323,911				429,553
Accrued liabilities for point programs			194,172				151,628
Liability for employees’ retirement benefits			142,069				138,447
Other long-term liabilities			158,506				186,539
Total long-term liabilities			818,658				906,167
Total liabilities			1,989,125				2,094,329
Equity:
NTT DOCOMO, INC. shareholders’ equity
Common stock			949,680				949,680
Additional paid-in capital			757,109				757,109
Retained earnings			3,549,402				3,347,830
Accumulated other comprehensive income (loss)			(58,328	)			(37,379	)
Treasury stock, at cost			(381,363	)			(381,363	)
Total NTT DOCOMO, INC. shareholders’ equity			4,816,500				4,635,877
Noncontrolling interests			26,246				26,569
Total equity			4,842,746				4,662,446
Commitments and contingencies
Total liabilities and equity		¥	6,831,871			¥	6,756,775

See accompanying notes to consolidated financial statements (unaudited).

NTT DOCOMO, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME (UNAUDITED)

SIX MONTHS ENDED SEPTEMBER 30, 2009 and 2010

		Millions of yen
		Six Months Ended				Six Months Ended
		September 30, 2009				September 30, 2010
Operating revenues:
Wireless services		¥	1,893,265			¥	1,898,995
Equipment sales			252,542				239,157
Total operating revenues			2,145,807				2,138,152
Operating expenses:
Cost of services (exclusive of items shown separately below)			449,617				451,811
Cost of equipment sold (exclusive of items shown separately below)			340,877				320,830
Depreciation and amortization			337,809				321,967
Selling, general and administrative			532,281				512,074
Total operating expenses			1,660,584				1,606,682
Operating income			485,223				531,470
Other income (expense):
Interest expense			(2,989	)			(2,523	)
Interest income			668				691
Other, net			(3,021	)			(2,630	)
Total other income (expense)			(5,342	)			(4,462	)
Income before income taxes and equity in net income (losses) of affiliates			479,881				527,008
Income taxes:
Current			210,887				204,522
Deferred			(16,764	)			8,682
Total income taxes			194,123				213,204
Income before equity in net income (losses) of affiliates			285,758				313,804
Equity in net income (losses) of affiliates, net of applicable taxes			292				(2,978	)
Net income			286,050				310,826
Less: Net (income) loss attributable to noncontrolling interests			(1,332	)			(1,079	)
Net income attributable to NTT DOCOMO, INC.		¥	284,718			¥	309,747
Net income		¥	286,050			¥	310,826
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale securities, net of applicable taxes			14,082				(7,586	)
Change in fair value of derivative instruments, net of applicable taxes			(35	)			(54	)
Foreign currency translation adjustment, net of applicable taxes			11,691				(13,335	)
Pension liability adjustment, net of applicable taxes			296				10
Total other comprehensive income (loss)			26,034				(20,965	)
Comprehensive income			312,084				289,861
Less: Comprehensive (income) loss attributable to noncontrolling interests			(1,346	)			(1,063	)
Comprehensive income attributable to NTT DOCOMO, INC.		¥	310,738			¥	288,798
PER SHARE DATA
Weighted average common shares outstanding — Basic and Diluted (shares)			41,759,807				41,605,742
Basic and Diluted earnings per share attributable to NTT DOCOMO, INC. (yen)		¥	6,817.99			¥	7,444.81

See accompanying notes to consolidated financial statements (unaudited).

NTT DOCOMO, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME (UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2009 and 2010

		Millions of yen
		Three Months Ended				Three Months Ended
		September 30, 2009				September 30, 2010
Operating revenues:
Wireless services		¥	951,470			¥	955,098
Equipment sales			109,583				93,809
Total operating revenues			1,061,053				1,048,907
Operating expenses:
Cost of services (exclusive of items shown separately below)			230,286				229,620
Cost of equipment sold (exclusive of items shown separately below)			150,051				136,317
Depreciation and amortization			168,804				163,917
Selling, general and administrative			278,508				228,101
Total operating expenses			827,649				757,955
Operating income			233,404				290,952
Other income (expense):
Interest expense			(1,375	)			(1,196	)
Interest income			350				334
Other, net			38				(3,641	)
Total other income (expense)			(987	)			(4,503	)
Income before income taxes and equity in net income (losses) of affiliates			232,417				286,449
Income taxes:
Current			121,356				114,855
Deferred			(27,476	)			1,286
Total income taxes			93,880				116,141
Income before equity in net income (losses) of affiliates			138,537				170,308
Equity in net income (losses) of affiliates, net of applicable taxes			(529	)			(2,067	)
Net income			138,008				168,241
Less: Net (income) loss attributable to noncontrolling interests			(666	)			(647	)
Net income attributable to NTT DOCOMO, INC.		¥	137,342			¥	167,594
Net income		¥	138,008			¥	168,241
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale securities, net of applicable taxes			3,620				1,371
Change in fair value of derivative instruments, net of applicable taxes			(8	)			(29	)
Foreign currency translation adjustment, net of applicable taxes			2,805				(22,435	)
Pension liability adjustment, net of applicable taxes			147				46
Total other comprehensive income (loss)			6,564				(21,047	)
Comprehensive income			144,572				147,194
Less: Comprehensive (income) loss attributable to noncontrolling interests			(665	)			(624	)
Comprehensive income attributable to NTT DOCOMO, INC.		¥	143,907			¥	146,570
PER SHARE DATA
Weighted average common shares outstanding — Basic and Diluted (shares)			41,759,807				41,605,742
Basic and Diluted earnings per share attributable to NTT DOCOMO, INC. (yen)		¥	3,288.86			¥	4,028.15

See accompanying notes to consolidated financial statements (unaudited).

NTT DOCOMO, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

SIX MONTHS ENDED SEPTEMBER 30, 2009 and 2010

		Millions of yen
		Six Months Ended				Six Months Ended
		September 30, 2009				September 30, 2010
Cash flows from operating activities:
Net income		¥	286,050			¥	310,826
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization			337,809				321,967
Deferred taxes			(16,439	)			6,377
Loss on sale or disposal of property, plant and equipment			12,973				7,231
Equity in net (income) losses of affiliates			(366	)			5,514
Changes in assets and liabilities:
(Increase) / decrease in accounts receivable			55,730				92,307
Increase / (decrease) in allowance for doubtful accounts			1,874				(35	)
(Increase) / decrease in credit card receivables			(16,735	)			(14,213	)
(Increase) / decrease in inventories			(54,755	)			(32,919	)
(Increase) / decrease in prepaid expenses and other current assets			3,987				(5,372	)
(Increase) / decrease in non-current installment receivable for handsets			13,982				6,210
Increase / (decrease) in accounts payable, trade			(136,209	)			(96,289	)
Increase / (decrease) in accrued income taxes			(31,927	)			14,437
Increase / (decrease) in other current liabilities			(3,022	)			(17,558	)
Increase / (decrease) in accrued liabilities for point programs			18,937				42,544
Increase / (decrease) in liability for employees’ retirement benefits			4,951				3,623
Increase / (decrease) in other long-term liabilities			18,259				(29,322	)
Other, net			13,437				17,937
Net cash provided by operating activities			508,536				633,265
Cash flows from investing activities:
Purchases of property, plant and equipment			(249,126	)			(215,806	)
Purchases of intangible and other assets			(132,956	)			(124,330	)
Purchases of non-current investments			(8,992	)			(2,529	)
Proceeds from sale of non-current investments			9,124				525
Acquisitions of new subsidiaries, net of cash acquired			(24,904	)			—
Purchases of short-term investments			(33,758	)			(373,671	)
Redemption of short-term investments			6,718				313,394
Long-term bailment for consumption to a related party			—				(10,000	)
Short-term bailment for consumption to a related party			—				(20,000	)
Proceeds from redemption of short-term bailment for consumption to a related party			—				90,000
Other, net			(7,231	)			(6,236	)
Net cash used in investing activities			(441,125	)			(348,653	)
Cash flows from financing activities:
Repayment of long-term debt			(15,000	)			(32	)
Proceeds from short-term borrowings			138,149				367
Repayment of short-term borrowings			(138,149	)			(353	)
Principal payments under capital lease obligations			(1,696	)			(2,135	)
Dividends paid			(100,190	)			(108,135	)
Other, net			(3	)			(1,243	)
Net cash provided by (used in) financing activities			(116,889	)			(111,531	)
Effect of exchange rate changes on cash and cash equivalents			572				(1,070	)
Net increase (decrease) in cash and cash equivalents			(48,906	)			172,011
Cash and cash equivalents at beginning of period			599,548				357,715
Cash and cash equivalents at end of period		¥	550,642			¥	529,726
Supplemental disclosures of cash flow information:
Cash received during the period for:
Income tax refunds		¥	675			¥	301
Cash paid during the period for:
Interest, net of amount capitalized			3,122				2,530
Income taxes			242,683				189,772

See accompanying notes to consolidated financial statements (unaudited).

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Basis of presentation:

The accompanying quarterly consolidated financial statements of NTT DOCOMO, INC. and its subsidiaries (“DOCOMO”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain disclosures required by U.S. GAAP have been omitted. Since DOCOMO’s American Depositary Shares were listed on the New York Stock Exchange in March 2002, DOCOMO has prepared its consolidated financial statements pursuant to the terminology, forms and preparation methods required in order to issue American Depositary Shares, which are registered with the Securities and Exchange Commission of the United States of America.

2. Summary of significant accounting and reporting policies:

(1) Recent accounting pronouncements—

In October 2009, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2009-13 “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements”. ASU2009-13 will require allocation of the overall consideration to each deliverable in an arrangement with multiple deliverables using the estimated selling price in the absence of vendor-specific objective evidence or third-party evidence of selling price for deliverables and eliminate residual method of allocation. ASU2009-13 is effective for fiscal years beginning on or after June 15, 2010. DOCOMO is currently evaluating the impact of adopting ASU2009-13 on DOCOMO’s result of operations and financial position.

In July 2010, FASB issued ASU2010-20 “Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses”. ASU2010-20 will require enhanced disclosures regarding the nature of the credit risk inherent in the entity’s financing receivables, how that credit risk is analyzed and assessed, and the reasons for the change in the allowance for credit losses. The disclosures as of the end of a reporting period are effective for interim and annual reporting periods ending on or after December 15, 2010. The disclosures about activity that occurs during a reporting periods are effective for interim and annual reporting periods beginning on or after December 15, 2010. The adoption of ASU2010-20 will not have any impact on DOCOMO’s results of operations and financial position. DOCOMO is currently considering the additional disclosures in accordance with ASU2010-20.

(2) Reclassifications—

Certain reclassifications have been made to the prior periods’ consolidated financial statements to conform to the presentation used for the six months ended September 30, 2010.

3. Equity:

Effective May 1, 2006, the Corporate Law of Japan provides that (i) dividends of earnings require approval at a general meeting of shareholders, (ii) interim cash dividends can be distributed upon the approval of the board of directors, if the articles of incorporation provide for such interim cash dividends and (iii) an amount equal to at least 10% of decrease in retained earnings by dividends payment be appropriated from retained earnings to a legal reserve up to 25% of capital stock. The legal reserve is available for distribution upon approval of the shareholders.

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — (Continued)

In the general meeting of shareholders held on June 18, 2010, the shareholders approved cash dividends of ¥108,175 million or ¥2,600 per share, payable to shareholders recorded as of March 31, 2010, which were declared by the board of directors on April 28, 2010. The source of dividends was “Retained earnings”. DOCOMO started to pay the dividends on June 21, 2010.

On October 28, 2010, the board of directors declared cash dividends of ¥108,175 million or ¥2,600 per share, payable to shareholders recorded as of September 30, 2010. The source of dividends will be “Retained Earnings”. DOCOMO plans to start paying the dividends on November 19, 2010.

In order to improve capital efficiency and to implement flexible capital policies in accordance with the business environment, DOCOMO acquires treasury stock.

With regard to the acquisition of treasury stock, the Corporate Law of Japan provides that (i) it can be done according to the resolution of the general meeting of shareholders, and (ii) the acquisition of treasury stock through open market transactions can be done according to the resolution of the board of directors if the articles of incorporation contain such a provision. The provision is stipulated in DOCOMO’s articles of incorporation.

Issued shares and treasury stock —

The changes in the number of issued shares and treasury stock were as follows.

DOCOMO has not issued shares other than shares of its common stock.

		Number of				Number of
		issued shares				treasury stock
As of March 31, 2009			43,950,000				2,190,193
As of September 30, 2009			43,950,000				2,190,193
Acquisition of treasury stock based on the resolution of the board of directors			—				154,065
Retirement of treasury stock			(160,000	)			(160,000	)
As of March 31, 2010			43,790,000				2,184,258
As of September 30, 2010			43,790,000				2,184,258

The general meeting of shareholders approved stock repurchase plans as follows:

				Approved maximum				Approved maximum
				number of treasury stock to				budget for share
Date of the general				be repurchased				repurchase
meeting of shareholders		Term of repurchase		(Shares)				(Millions of yen)
June 20, 2008		June 21, 2008 — June 20, 2009			900,000			¥	150,000

The meeting of the board of directors approved stock repurchase plans as follows:

				Approved maximum				Approved maximum
				number of treasury stock to				budget for share
Date of the meeting of the				be repurchased				repurchase
board of directors		Term of repurchase		(Shares)				(Millions of yen)
November 9, 2009		November 10, 2009 — November 30, 2009			160,000			¥	20,000

DOCOMO did not repurchase shares for the six months ended September 30, 2009 and 2010.

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — (Continued)

Per share data —

Per share data is as follows:

		Yen
		Six months ended				Six months ended
		September 30, 2009				September 30, 2010
Basic and Diluted earnings per share attributable to NTT DOCOMO, INC.		¥	6,817.99			¥	7,444.81
		Yen
		Three months ended				Three months ended
		September 30, 2009				September 30, 2010
Basic and Diluted earnings per share attributable to NTT DOCOMO, INC.		¥	3,288.86			¥	4,028.15
		Yen
		September 30, 2010				March 31, 2010
NTT DOCOMO, INC. shareholders’ equity per share		¥	115,765.27			¥	111,423.97

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — (Continued)

4. Segment information:

The operating segments reported below are those for which segment-specific financial information is available. DOCOMO’s management uses this financial information to make decisions on the allocation of management resources and to evaluate business performance. 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.

DOCOMO has two operating segments. The mobile phone business segment includes FOMA services, mova services, packet communications services, satellite mobile communications services, international services and the equipment sales related to these services. The miscellaneous businesses segment includes home shopping services provided primarily through TV media, high-speed internet connection for hotel facilities, advertisement services, development, sales and maintenance of IT systems, credit services and other miscellaneous services, which in the aggregate are not significant in amount. DOCOMO plans to terminate mova services on March 31, 2012.

DOCOMO identifies its reportable segments based on the nature of services included, as well as the characteristics of the telecommunications networks used to provide those services. DOCOMO’s management monitors and evaluates the performance of its segments based on the information derived from DOCOMO’s management reports.

Segment information is as follows:

		Millions of yen
Three months ended		Mobile phone				Miscellaneous
September 30, 2009		business				businesses				Consolidated
Operating revenues		¥	1,031,139			¥	29,914			¥	1,061,053
Operating expenses			796,867				30,782				827,649
Operating income (loss)		¥	234,272			¥	(868	)		¥	233,404

		Millions of yen
Three months ended		Mobile phone				Miscellaneous
September 30, 2010		business				businesses				Consolidated
Operating revenues		¥	1,017,785			¥	31,122			¥	1,048,907
Operating expenses			726,629				31,326				757,955
Operating income (loss)		¥	291,156			¥	(204	)		¥	290,952

		Millions of yen
Six months ended		Mobile phone				Miscellaneous
September 30, 2009		business				businesses				Consolidated
Operating revenues		¥	2,089,032			¥	56,775			¥	2,145,807
Operating expenses			1,599,529				61,055				1,660,584
Operating income (loss)		¥	489,503			¥	(4,280	)		¥	485,223

		Millions of yen
Six months ended		Mobile phone				Miscellaneous
September 30, 2010		business				businesses				Consolidated
Operating revenues		¥	2,071,802			¥	66,350			¥	2,138,152
Operating expenses			1,538,676				68,006				1,606,682
Operating income (loss)		¥	533,126			¥	(1,656	)		¥	531,470

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — (Continued)

DOCOMO does not disclose geographical information, since the amounts of operating revenues generated outside Japan are immaterial.

5. Contingencies:

Litigation —

As of September 30, 2010, DOCOMO had no litigation or claims outstanding, pending or threatened against which in the opinion of management would have a materially adverse effect on its results of operations or financial position.

Guarantees —

DOCOMO enters into agreements in the normal course of business that provide guarantees for counterparties. These counterparties include subscribers, related parties, foreign wireless telecommunications service providers and other business partners.

DOCOMO provides subscribers with guarantees for product defects of cellular phone handsets sold by DOCOMO, but DOCOMO is provided with similar guarantees by the handset vendors and no liabilities were recognized for these guarantees.

Though the guarantees or indemnifications provided in transactions other than those with the subscribers are different in each contract, the likelihood of almost all of the performance of these guarantees or indemnifications are remote and amount of payments DOCOMO could be claimed for is not specified in almost all of the contracts. Historically, DOCOMO has not made any significant guarantee or indemnification payments under such agreements. DOCOMO estimates the fair value of the obligations related to these agreements is not significant. Accordingly, no liabilities were recognized for these obligations.

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — (Continued)

6. Fair value measurements:

Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date”. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value according to observability. The inputs are described as follows:

Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability

Level 3 — unobservable inputs for the asset or liability

DOCOMO also distinguishes assets and liabilities measured at fair value every period on a recurring basis from those measured on a nonrecurring basis under specific situation (for example, impaired assets).

(1) Assets and liabilities measured at fair value on a recurring basis

DOCOMO’s assets and liabilities measured at fair value on a recurring basis include available-for-sale securities and derivatives.

DOCOMO’s assets and liabilities that were measured at fair value on a recurring basis at September 30, 2010 and March 31, 2010 were as follows:

		Millions of yen
		September 30, 2010
		Total				Level 1				Level 2				Level 3
Assets:
Available-for-sale securities
Equity securities (domestic)		¥	44,870			¥	44,870			¥	—			¥	—
Equity securities (foreign)			76,252				76,252				—				—
Debt securities (foreign)			4				4				—				—
Total available-for-sale securities			121,126				121,126				—				—
Derivatives
Interest rate swap agreements			2,369				—				2,369				—
Total derivatives			2,369				—				2,369				—
Total assets		¥	123,495			¥	121,126			¥	2,369			¥	—
Liabilities:
Derivatives
Non-deliverable forward contracts (NDF)		¥	4			¥	—			¥	4			¥	—
Foreign currency option contracts			2,223				—				2,223				—
Total derivatives			2,227				—				2,227				—
Total liabilities		¥	2,227			¥	—			¥	2,227			¥	—

There were no significant transfers between Level 1 and Level 2.

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — (Continued)

		Millions of yen
		March 31, 2010
		Total				Level 1				Level 2				Level 3
Assets:
Available-for-sale securities
Equity securities (domestic)		¥	53,029			¥	53,029			¥	—			¥	—
Equity securities (foreign)			83,598				83,598				—				—
Debt securities (foreign)			4				4				—				—
Total available-for-sale securities			136,631				136,631				—				—
Derivatives
Interest rate swap agreements			3,297				—				3,297				—
Total derivatives			3,297				—				3,297				—
Total assets		¥	139,928			¥	136,631			¥	3,297			¥	—
Liabilities:
Derivatives
Foreign exchange forward contracts		¥	108			¥	—			¥	108			¥	—
Foreign currency option contracts			1,552				—				1,552				—
Total derivatives			1,660				—				1,660				—
Total liabilities		¥	1,660			¥	—			¥	1,660			¥	—

There were no significant transfers between Level 1 and Level 2.

Available-for-sale securities

Available-for-sale securities include marketable equity securities and debt securities, which are valued using quoted prices in active markets for identical assets. Therefore, these securities are classified as Level 1.

Derivatives

Derivative instruments are interest rate swap agreements, foreign exchange forward contracts, non-deliverable forward contracts (NDF) and foreign currency option contracts, which are measured using valuation provided by financial institutions based on observable market data. Therefore, these derivatives are classified as Level 2.

(2) Assets and liabilities measured at fair value on a nonrecurring basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis and are not included in the table above. Changes of fair value in such assets and liabilities typically result from impairments.

DOCOMO may be required to measure fair value of long-lived assets, equity securities whose fair values are not readily determinable, and other assets or liabilities on a nonrecurring basis.

DOCOMO omitted the disclosure about assets and liabilities measured on a nonrecurring basis because of its immateriality.

NTT DOCOMO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — (Continued)

7. Subsequent event:

There had been no significant subsequent event to be disclosed that occurred subsequent to the balance sheet date through the date when the accompanying quarterly consolidated financial statements were issued.