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Can you get my NOPLAT to match the NOPLAT under reconciliation with net income? I don't know what the problem is. Thank you. Also explain

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Can you get my NOPLAT to match the NOPLAT under reconciliation with net income? I don't know what the problem is. Thank you. Also explain what you did.

image text in transcribed (In millions, except par value data) March 31, 2011 March 31, 2012 March 31, 2013 ASSETS Current assets: Cash and cash equivalents 1,579 1,293 1,292 Short-term investments 658 556 388 Receivables, net of allowances of $159 and $140, respectively 335 366 312 Inventories 77 59 42 Deferred income taxes, net 56 67 52 Other current assets 327 268 239 Total current assets 3,032 2,609 2,325 Property and equipment, net 513 568 548 Goodwill 1,110 1,718 1,721 Acquisition-related intangibles, net 144 369 253 Deferred income taxes, net 49 42 53 Other assets 80 185 170 TOTAL ASSETS 4,928 5,491 5,070 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued and other current liabilities 0.75% convertible senior notes due 2016, net Deferred net revenue (online-enabled games) Total current liabilities Senior notes, net Income tax obligations Deferred income taxes, net Other liabilities Total liabilities Commitments and contingencies (See Note 13) 0.75% convertible senior notes due 2016 (See Note 12) Stockholders' equity: Preferred stock, $0.01 par value. 10 shares authorized Common stock, $0.01 par value. 1,000 shares authorized; shares issued and outstanding, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQ 228 768 1,005 2,001 215 857 539 1,048 2,659 136 737 559 1,044 2,476 192 37 134 2,364 189 8 177 3,033 205 1 121 2,803 0 3 2,495 -153 219 2,564 4,928 3 2,359 -77 173 2,458 5,491 3 2,174 21 69 2,267 5,070 Invested Capital March 31, 2014 March 31, 2015 March 31, 2016 1,782 583 2,068 953 2,493 1,341 327 56 74 316 3,138 510 1,723 177 28 140 5,716 362 36 54 247 3,720 459 1,713 111 13 131 6,147 233 33 0 254 4,354 439 1,710 57 387 103 7,050 119 781 580 1,490 2,970 189 18 117 3,294 68 794 602 1,283 2,747 0 70 80 183 3,080 89 710 161 1,458 2,418 989 80 2 163 3,652 0 31 2 0 0 3 2,127 904 2 3,036 6,147 3 1,349 2,060 -16 3,396 7,050 3 2,353 29 37 2,422 5,716 Working cash Accounts receivable, net Inventories Other current assets Operating current assets Accounts payable Accrued salaries, wages & commissions Other accrued expenses Operating current liabilities Operating working capital Net property, plant & equipment Capitalized operating leases Net other assets Invested capital Excess cash, less dividends Non operating long term assets Total funds invested Short-term debt Long-term debt Other debt equivalents Capitalized operating leases Debt and debt equivalents Deferred income taxes Net common stock & paid-in capital Retained earnings Accumulated other comp income Equity and equity equivalents Total funds invested Net sales PV of operating lease payments @ 3.80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 March 31, 2011 March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016 72 335 77 327 811 83 366 59 268 776 76 312 42 239 669 72 327 56 316 771 90 362 36 247 735 88 233 33 254 608 228 0 1,773 2,001 215 0 1,905 2,120 136 0 1,781 1,917 119 0 2,271 2,390 68 0 2,077 2,145 89 0 2,168 2,257 -1,190 -1,344 -1,248 -1,620 -1,410 -1,649 513 137 1,110 570 568 189 1,718 1,131 548 157 1,721 1,178 510 135 1,723 748 459 158 1,713 920 439 188 1,710 688 2,165 224 2,959 1,766 554 3,451 1,604 423 3,205 2,294 317 3,359 2,931 242 4,093 3,746 160 4,594 0 0 134 137 271 539 0 177 189 905 559 0 121 157 837 580 0 117 135 832 602 0 183 158 943 161 989 163 188 1,501 124 2,498 -153 219 2,688 88 2,362 -77 173 2,546 101 2,177 21 69 2,368 105 2,356 29 37 2,527 83 2,161 904 2 3,150 -305 1,354 2,060 -16 3,093 2,959 0 3,589 3,451 0 4,143 3,205 0 3,797 3,359 0 3,575 4,093 0 4,515 4,594 0 4,396 137 189 157 135 158 188 54 48 40 28 15 15 11 50 44 32 17 13 13 46 39 23 17 13 41 32 23 19 36 32 28 44 36 26 21 15 9 5 10 17 17 17 15 27 24 24 24 24 Year Ended March 31, 2011 (In millions, except per share data) Net revenue: Product Service and other Total net revenue Cost of revenue: Product Service and other Total cost of revenue 2012 2013 2014 2015 3181 $ 3,415 $ 2,738 $ 2,134 $ 2,568 728 1,059 1,441 1,947 408 3,589 4,143 3,797 3,575 4,515 1407 92 1,374 1,085 1,032 1,028 224 1,598 303 1,388 315 1,347 401 1,429 1,499 $ 2,090 58.23% 2,545 2,409 2,228 3,086 61.43% 63.44% 62.32% 68.35% (747) (301) (1,048) (180) (868) (1,153) 17 (57) (853) (375) (1,228) (216) (1,012) (1,212) (11) (43) (788) (354) (1,142) (264) (878) (1,153) 64 (30) (680) (410) (1,090) (227) (863) (1,125) 35 (16) (647) (386) (1,033) (220) (813) (1,094) 3 (14) (161) (16) (27) 1 Total Operating Expenses EBIT EBIT Margin (2,402) (312) -8.69% (2,510) 35 0.84% (2,288) 121 3.19% (2,195) 33 0.92% (2,138) 948 21.00% Gains on strategic investments, net (All original values) Interest and other income (expense), net Income before provision for (benefit from) income taxe 23 (17) 39 (21) (26) (23) 18 139 7 925 (3) (58) 41 (1) 50 (276) 76 98 8 875 Gross profit Gross Profit Margin Operating expenses: Marketing and sales General and administrative Total SG&A Depreciation and Amortization Adjusted SG&A after Dep. And Amort. Research and development Acquisition-related contingent consideration Amortization of intangibles Restructuring and other charges Provision for (benefit from) income taxes Net income 10 (279) - 31, 2016 $ 2,497 1,899 4,396 938 416 1,354 3,042 NOPLAT Net sales Cost of sales Selling, general & administrative expenses Research and Development Other operating expenses Depreciation & amortization 3/31 2011 3,589 1,499 (868) (1,153) (201) (180) 3/31 3/31 2012 2013 4,143 3,797 1,598 1,388 (1,012) (878) (1,212) (1,153) (70) 7 (216) (264) Operating lease interest Adjusted EBIT 5 (307) 7 42 6 127 Operating cash taxes NOPLAT (3.30) (135.97) (304) 178 37.45 90 69.20% ROIC (on year end IC) (622) (406) (1,028) (197) (831) (1,109) (7) (2,144) 898 20.43% (21) 877 (279) 1,156 PV of operating lease payments @ 3.80% Reconciliation with net income Net income After tax interest income After tax investment income After tax operating lease interest expense NOPLAT -53.29% 15.75% 7.60% 137 189 157 2011 (276) (10) (22) 2012 76 (38) - 2013 98 27 (33) 5 (303) (16) 22 8 100 3/31 3/31 2014 2015 3,575 4,515 1,347 1,429 (863) (813) (1,125) (1,094) 20 (11) (227) (220) 3/31 2016 4,396 1,354 (831) (1,109) (7) (197) 5 38 6 954 7 905 (5.44) 44 51.57 902 (287.95) 1,193 5.82% 98.05% 173.42% 135 158 188 8 22 - 2015 875 24 - 2016 1,156 14 - 4 35 6 906 5 1,175 2014 EA Free Cash Flow $ millions 3/31 2011 3/31 2012 3/31 2013 3/31 2014 3/31 2015 NOPLAT (304) 178 90 44 902 Depreciation Gross cash flow 180 (124) 216 394 264 354 227 271 220 1,122 (Increase) decrease in operating working capital (Increase) decrease in net capital expenditure* (Increase) decrease in capitalized operating leases 154 (271) (53) (96) (244) 32 371 (189) 23 (210) (169) (24) (Increase) decrease in other net operating assets Gross Investment (608) (778) (3) (311) (2) 203 10 (392) Free cash flow (384) 43 474 730 *includes depreciation 3/31 2016 1,193 197 1,390 239 (177) (30) 3 35 1,425 Historical ROIC Decomposition $ millions Operating working capital Net property, plant & equipment Capitalized operating leases Net other assets Invested capital Net investment Debt & equivalents+cap leases-ex cash-non op assets) Equity Adjusted debt and equity Net sales growth Net sales Cost of sales Selling, general & administrative expenses Research and Development Depreciation & amortization Other operating expenses Operating lease interest Adjusted EBIT Operating cash taxes NOPLAT ROIC (on year end invested capital) Adjusted debt/invested capital Equity/invested capital Tax rate Interest rate Growth (NOPLAT) Investment rate (net investment/NOPLAT) Cost of saleset sales SG&Aet sales Depreciation & amortizationet sales Operating lease interestet sales Adjusted EBITet sales NOPLATet sales Net Sales/invested capital Operating working capitalet sales Net PP&Eet sales Capitalized operating leaseset sales Net other assetset sales Free cash flow 3/31 2011 3/31 2012 3/31 2013 3/31 2014 (1,190) 513 137 (1,344) 568 189 (1,248) 548 157 (1,620) 510 135 1,110 1,718 1,721 1,723 570 (2,118) 1,131 562 (1,415) 1,178 47 (1,190) 748 (430) (1,779) 2,688 2,546 2,368 2,527 570 1,131 1,178 748 3,589 (1,499) (868) (1,153) (180) (201) 15.44% 4,143 (1,598) (1,012) (1,212) (216) (70) -8.35% 3,797 (1,388) (878) (1,153) (264) 7 -5.85% 3,575 (1,347) (863) (1,125) (227) 20 5 7 6 5 (307) 42 127 38 (3) (58) 41 (1) (304) 100 86 39 -53.34% 8.86% 7.30% 5.23% -371.94% -125.06% -100.98% -237.83% 471.94% 225.06% 200.98% 337.83% 1.08% -322.22% 29.50% -14.29% 3.800% 3.800% 3.800% 3.800% -132.98% -14.19% -54.51% 560.57% 54.67% -1100.02% 41.77% 38.57% 36.56% 37.68% 24.19% 24.43% 23.12% 24.14% 5.02% 5.21% 6.95% 6.35% 0.14% 0.17% 0.16% 0.14% -8.55% 1.02% 3.34% 1.07% -8.46% 2.42% 2.26% 1.09% 6.30 3.66 3.22 4.78 -33.16% -32.44% -32.87% -45.30% 14.29% 13.71% 14.43% 14.27% 3.81% 4.57% 4.14% 3.76% 30.93% 41.47% 45.33% 48.20% (304) (461) 39 469 3/31 2015 3/31 2016 (1,410) 459 158 (1,649) 439 188 1,713 1,710 920 172 (2,230) 688 (232) (2,405) 3,150 3,093 920 688 26.29% 4,515 (1,429) (813) (1,094) (220) (11) -2.64% 4,396 (1,354) (831) (1,109) (197) (7) 6 7 954 905 50 (279) 904 1,184 98.22% 172.12% -242.26% -349.57% 342.26% 449.57% 5.41% -31.81% 3.800% 3.800% 2211.37% 30.99% 19.07% -19.62% 31.65% 30.80% 18.01% 18.90% 4.87% 4.48% 0.13% 0.16% 21.13% 20.59% 20.02% 26.94% 4.91 6.39 -31.22% -37.51% 10.17% 9.99% 3.50% 4.28% 37.94% 38.90% 732 1,417 Payment Date Note Amount 2017 2018 2019 2020 2021 thereafter 30 yr t note Adjustment Adjusted cost of debt 36 32 28 27 24 72 2.30% 1.50% 3.80%

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