Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2016shares | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | IX |
Entity Registrant Name | ORIX CORP |
Entity Central Index Key | 1,070,304 |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,324,058,828 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
ASSETS | ||
Cash and Cash Equivalents | ¥ 730,420 | ¥ 827,518 |
Restricted Cash | 80,979 | 85,561 |
Investment in Direct Financing Leases | 1,190,136 | 1,216,454 |
Installment Loans (The amounts of ¥15,361 million as of March 31, 2015 and ¥20,673 million as of March 31, 2016 are measured at fair value by electing the fair value option under FASB ASC 825.) | 2,592,233 | 2,478,054 |
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | (60,071) | (72,326) |
Investment in Operating Leases | 1,349,199 | 1,296,220 |
Investment in Securities (The amounts of ¥16,891 million as of March 31, 2015 and ¥27,367 million as of March 31, 2016 are measured at fair value by electing the fair value option under FASB ASC 825.) | 2,344,792 | 2,846,257 |
Property under Facility Operations | 327,016 | 278,100 |
Investment in Affiliates | 530,667 | 378,087 |
Trade Notes, Accounts and Other Receivable | 294,638 | 348,404 |
Inventories | 139,950 | 165,540 |
Office Facilities | 120,173 | 131,556 |
Other Assets (The amount of ¥36,038 million as of March 31, 2015 and ¥37,855 million as of March 31, 2016 are measured at fair value by electing the fair value option under FASB ASC 825.) | 1,356,774 | 1,464,203 |
Total Assets | 10,996,906 | 11,443,628 |
Liabilities: | ||
Short-term debt | 349,624 | 284,785 |
Deposits | 1,398,472 | 1,287,380 |
Trade Notes, Accounts and Other Payable | 266,216 | 335,936 |
Policy Liabilities and Policy Account Balances (The amount of ¥1,254,483 million as of March 31, 2015 and ¥795,001 million as of March 31, 2016 are measured at fair value by electing the fair value option under FASB ASC 825.) | 1,668,636 | 2,073,650 |
Income Taxes: | ||
Current | 17,398 | 9,445 |
Deferred | 341,360 | 336,069 |
Long-Term Debt | 3,940,906 | 4,132,945 |
Other Liabilities | 534,008 | 598,446 |
Total Liabilities | 8,516,620 | 9,058,656 |
Redeemable Noncontrolling Interests | ¥ 7,467 | ¥ 66,901 |
Commitments and Contingent Liabilities | ||
Equity: | ||
Common stock: Authorized 2,590,000,000 shares Issued 1,323,644,528 shares as of March 31, 2015 and 1,324,058,828 shares as of March 31, 2016 | ¥ 220,469 | ¥ 220,056 |
Additional Paid-in Capital | 257,629 | 255,595 |
Retained Earnings | 1,864,241 | 1,672,585 |
Accumulated Other Comprehensive Income (Loss) | (6,222) | 30,373 |
Treasury Stock, at Cost: 15,001,557 shares as of March 31, 2015 and 14,544,808 shares as of March 31, 2016 | (25,686) | (26,411) |
ORIX Corporation Shareholders' Equity | 2,310,431 | 2,152,198 |
Noncontrolling Interests | 162,388 | 165,873 |
Total Equity | 2,472,819 | 2,318,071 |
Total Liabilities and Equity | 10,996,906 | 11,443,628 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Cash and Cash Equivalents | 4,697 | 5,242 |
Investment in Direct Financing Leases | 134,604 | 153,951 |
Installment Loans (Net of Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses) | 195,702 | 171,163 |
Investment in Operating Leases | 227,340 | 252,234 |
Property under Facility Operations | 79,697 | 39,153 |
Investment in Affiliates | 65,059 | 11,905 |
Other Assets (The amount of ¥36,038 million as of March 31, 2015 and ¥37,855 million as of March 31, 2016 are measured at fair value by electing the fair value option under FASB ASC 825.) | 93,410 | 93,983 |
Total Assets | 800,509 | 727,631 |
Liabilities: | ||
Trade Notes, Accounts and Other Payable | 1,576 | 2,100 |
Income Taxes: | ||
Long-Term Debt | 479,152 | 454,216 |
Other Liabilities | 11,778 | 7,792 |
Total Liabilities | ¥ 492,506 | ¥ 464,108 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Installment Loans, fair value | ¥ 20,673 | ¥ 15,361 |
Investment in securities, measured at fair value | 27,367 | 16,891 |
Other assets, measured at fair value | 37,855 | 36,038 |
Policy Liabilities and Policy Account Balances | ¥ 795,001 | ¥ 1,254,483 |
Common stock, authorized | 2,590,000,000 | 2,590,000,000 |
Common stock, shares issued | 1,324,058,828 | 1,323,644,528 |
Treasury stock, shares | 14,544,808 | 15,001,557 |
Officer's Compensation Board Incentive Plan | ||
Number of shares held for incentive plans | 1,696,217 | 2,153,800 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||
Revenues: | |||||
Finance revenues | ¥ 200,889 | ¥ 186,883 | ¥ 191,700 | ||
Gains on investment securities and dividends | 35,786 | 56,395 | 27,181 | ||
Operating leases | 373,910 | 363,095 | 330,606 | ||
Life insurance premiums and related investment income | 189,421 | 351,493 | 155,406 | ||
Sales of goods and real estate | 834,010 | 450,869 | 179,884 | ||
Services income | 735,186 | 765,548 | 490,515 | ||
Total revenues | 2,369,202 | 2,174,283 | 1,375,292 | ||
Expenses: | |||||
Interest expense | 72,821 | 72,647 | 82,968 | ||
Costs of operating leases | 245,069 | 238,157 | 216,568 | ||
Life insurance costs | 121,282 | 271,948 | 108,343 | ||
Costs of goods and real estate sold | 748,259 | 402,021 | 162,989 | ||
Services expense | 445,387 | 425,676 | 260,278 | ||
Other (income) and expense, net | (3,729) | 23,674 | (21,001) | ||
Selling, general and administrative expenses | 422,692 | 427,816 | 316,851 | ||
Provision for doubtful receivables and probable loan losses | 11,717 | 11,631 | 13,838 | ||
Write-downs of long-lived assets | 13,448 | 34,887 | 23,421 | ||
Write-downs of securities | 4,515 | 8,997 | 7,989 | ||
Total expenses | 2,081,461 | 1,917,454 | 1,172,244 | ||
Operating Income | 287,741 | 256,829 | 203,048 | ||
Equity in Net Income of Affiliates | 45,694 | 30,531 | 18,368 | ||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 57,867 | 20,575 | 64,923 | ||
Bargain purchase gain | 0 | 36,082 | 0 | ||
Income before Income Taxes and Discontinued Operations | 391,302 | 344,017 | 286,339 | ||
Provision for income taxes | 120,312 | 89,057 | 98,553 | ||
Income from Continuing Operations | 270,990 | 254,960 | 187,786 | ||
Discontinued Operations: | |||||
Income from discontinued operations, net | 0 | 463 | [1] | 12,182 | [1] |
Provision for income taxes | 0 | (166) | (4,681) | ||
Discontinued operations, net of applicable tax effect | 0 | 297 | 7,501 | ||
Net Income | 270,990 | 255,257 | 195,287 | ||
Net Income Attributable to the Noncontrolling Interests | 10,002 | 15,339 | 3,815 | ||
Net Income Attributable to the Redeemable Noncontrolling Interests | 819 | 4,970 | 4,108 | ||
Net Income Attributable to ORIX Corporation Shareholders | 260,169 | 234,948 | 187,364 | ||
Income Attributable to ORIX Corporation Shareholders: | |||||
Income from Continuing Operations | 260,169 | 234,651 | 180,069 | ||
Discontinued Operations | 0 | 297 | 7,295 | ||
Net Income Attributable to ORIX Corporation Shareholders | ¥ 260,169 | ¥ 234,948 | ¥ 187,364 | ||
Basic: | |||||
Income from continuing operations | ¥ 198.73 | ¥ 179.24 | ¥ 142 | ||
Discontinued operations | 0 | 0.23 | 5.75 | ||
Net income attributable to ORIX Corporation shareholders | 198.73 | 179.47 | 147.75 | ||
Diluted: | |||||
Income from continuing operations | 198.52 | 178.99 | 137.63 | ||
Discontinued operations | 0 | 0.22 | 5.57 | ||
Net income attributable to ORIX Corporation shareholders | 198.52 | 179.21 | 143.20 | ||
Cash Dividends | ¥ 58 | ¥ 23 | ¥ 13 | ||
[1] | Income from discontinued operations, net includes aggregate gains on sales of subsidiaries, business units and rental properties and liquidation on losses. The amount of such gains or losses in fiscal 2014 and 2015 were net gain of ¥14,600 million and ¥362 million, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net Income | ¥ 270,990 | ¥ 255,257 | ¥ 195,287 |
Other comprehensive income (loss), net of tax: | |||
Net change of unrealized gains (losses) on investment in securities | (3,121) | 9,867 | 10,603 |
Net change of defined benefit pension plans | (4,123) | (14,952) | 3,570 |
Net change of foreign currency translation adjustments | (26,957) | 37,155 | 36,928 |
Net change of unrealized gains (losses) on derivative instruments | (4,063) | (561) | 1,487 |
Total other comprehensive income (loss) | (38,264) | 31,509 | 52,588 |
Comprehensive Income | 232,726 | 286,766 | 247,875 |
Comprehensive Income Attributable to the Noncontrolling Interests | 7,414 | 7,314 | 16,003 |
Comprehensive Income Attributable to the Redeemable Noncontrolling Interests | 1,738 | 14,265 | 8,207 |
Comprehensive Income Attributable to ORIX Corporation Shareholders | ¥ 223,574 | ¥ 265,187 | ¥ 223,665 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - JPY (¥) ¥ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total ORIX Corporation Shareholders' Equity | Noncontrolling Interests |
Balance at Mar. 31, 2013 | ¥ 1,687,573 | ¥ 194,039 | ¥ 229,600 | ¥ 1,305,044 | ¥ (36,263) | ¥ (48,824) | ¥ 1,643,596 | ¥ 43,977 |
Contribution to subsidiaries | 89,233 | 0 | 89,233 | |||||
Transaction with noncontrolling interests | 2,294 | 239 | 239 | 2,055 | ||||
Comprehensive income, net of tax: | ||||||||
Net income | 191,179 | 187,364 | 187,364 | 3,815 | ||||
Other comprehensive income (loss) | ||||||||
Net change of unrealized gains (losses) on investment in securities | 10,603 | 9,677 | 9,677 | 926 | ||||
Net change of defined benefit pension plans | 3,570 | 3,357 | 3,357 | 213 | ||||
Net change of foreign currency translation adjustments | 32,829 | 21,810 | 21,810 | 11,019 | ||||
Net change of unrealized gains (losses) on derivative instruments | 1,487 | 1,457 | 1,457 | 30 | ||||
Total other comprehensive income (loss) | 48,489 | 36,301 | 12,188 | |||||
Total comprehensive income | 239,668 | 223,665 | 16,003 | |||||
Cash dividends | (17,977) | (15,878) | (15,878) | (2,099) | ||||
Conversion of convertible bond | 49,944 | 25,066 | 24,878 | 49,944 | 0 | |||
Exercise of stock options | 863 | 441 | 422 | 863 | 0 | |||
Acquisition of treasury stock | (19) | (19) | (19) | 0 | ||||
Acquisition of Robeco | 47,259 | (5,471) | 24,880 | 19,409 | 27,850 | |||
Adjustment of redeemable noncontrolling interests to redemption value | (2,851) | (2,851) | (2,851) | 0 | ||||
Other, net | 378 | 310 | (36) | 104 | 378 | 0 | ||
Balance at Mar. 31, 2014 | 2,096,365 | 219,546 | 255,449 | 1,468,172 | 38 | (23,859) | 1,919,346 | 177,019 |
Contribution to subsidiaries | 26,447 | 0 | 26,447 | |||||
Transaction with noncontrolling interests | (41,144) | (505) | 96 | (409) | (40,735) | |||
Comprehensive income, net of tax: | ||||||||
Net income | 250,287 | 234,948 | 234,948 | 15,339 | ||||
Other comprehensive income (loss) | ||||||||
Net change of unrealized gains (losses) on investment in securities | 9,867 | 11,679 | 11,679 | (1,812) | ||||
Net change of defined benefit pension plans | (14,952) | (13,218) | (13,218) | (1,734) | ||||
Net change of foreign currency translation adjustments | 27,860 | 32,284 | 32,284 | (4,424) | ||||
Net change of unrealized gains (losses) on derivative instruments | (561) | (506) | (506) | (55) | ||||
Total other comprehensive income (loss) | 22,214 | 30,239 | (8,025) | |||||
Total comprehensive income | 272,501 | 265,187 | 7,314 | |||||
Cash dividends | (34,289) | (30,117) | (30,117) | (4,172) | ||||
Exercise of stock options | 1,014 | 510 | 504 | 1,014 | 0 | |||
Acquisition of treasury stock | (3,423) | (3,423) | (3,423) | 0 | ||||
Disposal of treasury stock | 0 | (697) | (174) | 871 | 0 | 0 | ||
Adjustment of redeemable noncontrolling interests to redemption value | (220) | (220) | (220) | 0 | ||||
Other, net | 820 | 844 | (24) | 820 | 0 | |||
Balance at Mar. 31, 2015 | 2,318,071 | 220,056 | 255,595 | 1,672,585 | 30,373 | (26,411) | 2,152,198 | 165,873 |
Contribution to subsidiaries | 6,801 | 0 | 6,801 | |||||
Transaction with noncontrolling interests | (8,601) | 1,918 | 1,918 | (10,519) | ||||
Comprehensive income, net of tax: | ||||||||
Net income | 270,171 | 260,169 | 260,169 | 10,002 | ||||
Other comprehensive income (loss) | ||||||||
Net change of unrealized gains (losses) on investment in securities | (3,121) | (3,145) | (3,145) | 24 | ||||
Net change of defined benefit pension plans | (4,123) | (4,436) | (4,436) | 313 | ||||
Net change of foreign currency translation adjustments | (27,876) | (25,197) | (25,197) | (2,679) | ||||
Net change of unrealized gains (losses) on derivative instruments | (4,063) | (3,817) | (3,817) | (246) | ||||
Total other comprehensive income (loss) | (39,183) | (36,595) | (2,588) | |||||
Total comprehensive income | 230,988 | 223,574 | 7,414 | |||||
Cash dividends | (83,215) | (76,034) | (76,034) | (7,181) | ||||
Exercise of stock options | 822 | 413 | 409 | 822 | 0 | |||
Acquisition of treasury stock | (2) | (2) | (2) | 0 | ||||
Disposal of treasury stock | 248 | (426) | (53) | 727 | 248 | 0 | ||
Adjustment of redeemable noncontrolling interests to redemption value | 7,557 | 7,557 | 7,557 | 0 | ||||
Other, net | 150 | 133 | 17 | 150 | 0 | |||
Balance at Mar. 31, 2016 | ¥ 2,472,819 | ¥ 220,469 | ¥ 257,629 | ¥ 1,864,241 | ¥ (6,222) | ¥ (25,686) | ¥ 2,310,431 | ¥ 162,388 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net Income | ¥ 270,990 | ¥ 255,257 | ¥ 195,287 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 244,853 | 229,583 | 206,670 |
Provision for doubtful receivables and probable loan losses | 11,717 | 11,631 | 13,838 |
Equity in net income of affiliates (excluding interest on loans) | (44,333) | (30,267) | (18,159) |
Gains on sales of subsidiaries and affiliates and liquidation losses, net | (57,867) | (20,575) | (64,923) |
Bargain purchase gain | 0 | (36,082) | 0 |
Gains on sales of available-for-sale securities | (32,126) | (32,077) | (14,149) |
Gains on sales of operating lease assets | (38,340) | (34,425) | (23,692) |
Write-downs of long-lived assets | 13,448 | 34,887 | 23,421 |
Write-downs of securities | 4,515 | 8,997 | 7,989 |
Decrease (Increase) in restricted cash | 9,009 | (1,922) | 22,366 |
Decrease in trading securities | 461,298 | 441,554 | 21,300 |
Decrease (Increase) in inventories | 20,935 | (13,481) | 25,581 |
Increase in trade notes, accounts and other receivable | (8,224) | (20,742) | (17,572) |
Increase (Decrease) in trade notes, accounts and other payable | (41,004) | 34,275 | 26,505 |
Increase (Decrease) in policy liabilities and policy account balances | (405,014) | (506,043) | 28,429 |
Deferred tax provision | 42,528 | 41,338 | 52,344 |
Income taxes payable, net | 47,065 | (39,264) | 18,695 |
Other, net | 11,112 | (65,033) | (25,924) |
Net cash provided by operating activities | 510,562 | 257,611 | 478,006 |
Cash Flows from Investing Activities: | |||
Purchases of lease equipment | (991,154) | (907,484) | (859,568) |
Principal payments received under direct financing leases | 515,053 | 488,522 | 459,003 |
Installment loans made to customers | (1,101,807) | (1,109,458) | (1,035,564) |
Principal collected on installment loans | 948,057 | 977,272 | 1,264,645 |
Proceeds from sales of operating lease assets | 239,911 | 272,040 | 251,904 |
Investment in affiliates, net | (70,569) | (27,698) | (45,084) |
Proceeds from sales of investment in affiliates | 20,991 | 2,128 | 15,429 |
Purchases of available-for-sale securities | (864,874) | (982,415) | (897,246) |
Proceeds from sales of available-for-sale securities | 464,232 | 511,868 | 318,697 |
Proceeds from redemption of available-for-sale securities | 381,099 | 398,280 | 473,126 |
Purchases of held-to-maturity securities | (538) | (20,522) | (8,519) |
Purchases of other securities | (32,818) | (27,489) | (24,761) |
Proceeds from sales of other securities | 48,594 | 67,982 | 26,501 |
Purchases of property under facility operations | (91,492) | (81,311) | (48,195) |
Acquisitions of subsidiaries, net of cash acquired | (47,324) | (73,240) | (94,586) |
Sales of subsidiaries, net of cash disposed | 39,437 | 47,800 | 0 |
Other, net | (9,327) | (4,076) | (11,096) |
Net cash used in investing activities | (552,529) | (467,801) | (215,314) |
Cash Flows from Financing Activities: | |||
Net increase (decrease) in debt with maturities of three months or less | (4,707) | 3,819 | (106,783) |
Proceeds from debt with maturities longer than three months | 1,376,125 | 1,337,870 | 1,211,797 |
Repayment of debt with maturities longer than three months | (1,470,325) | (1,178,401) | (1,501,403) |
Net increase in deposits due to customers | 111,220 | 80,924 | 127,610 |
Cash dividends paid to ORIX Corporation shareholders | (76,034) | (30,117) | (15,878) |
Contribution from noncontrolling interests | 6,117 | 7,919 | 11,089 |
Cash dividends paid to redeemable noncontrolling interests | (11,272) | (3,030) | (1,224) |
Net increase (decrease) in call money | 36,500 | 6,000 | (5,000) |
Other, net | (15,625) | (11,552) | 2,088 |
Net cash provided by (used in) financing activities | (48,001) | 213,432 | (277,704) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (7,130) | 6,237 | 6,755 |
Net Increase (decrease) in Cash and Cash Equivalents | (97,098) | 9,479 | (8,257) |
Cash and Cash Equivalents at Beginning of Year | 827,518 | 818,039 | 826,296 |
Cash and Cash Equivalents at End of Year | ¥ 730,420 | ¥ 827,518 | ¥ 818,039 |
Significant Accounting and Repo
Significant Accounting and Reporting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Significant Accounting and Reporting Policies | 1. Significant Accounting and Reporting Policies In preparing the accompanying consolidated financial statements, ORIX Corporation (the “Company”) and its subsidiaries have complied with accounting principles generally accepted in the United States of America (“U.S. GAAP”), except for the accounting for stock splits (see (o)). Significant accounting and reporting policies are summarized as follows: (a) Basis of presenting financial statements The Company and its subsidiaries in Japan maintain their books in conformity with Japanese accounting practices, which differ in certain respects from U.S. GAAP. The accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP and, therefore, reflect certain adjustments to the books and records of the Company and its subsidiaries. The principal adjustments relate to initial direct costs to originate leases and loans, use of a straight-line basis of depreciation for operating lease assets, deferral of life insurance policy acquisition costs, calculation of insurance policy liabilities, accounting for goodwill and other intangible assets in business combinations, accounting for contingent consideration in business combination, accounting for pension plans, accounting for sales of the parent’s ownership interest in subsidiaries, accounting for securitization of financial assets, reflection of the income tax effect on such adjustments and reclassification of discontinued operations. (b) Principles of consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Investments in affiliates, where the Company has the ability to exercise significant influence by way of 20% – 50% ownership or other means, are accounted for by using the equity method. Where the Company holds majority voting interests but noncontrolling shareholders have substantive participating rights to decisions that occur as part of the ordinary course of their business, the equity method is applied pursuant to FASB Accounting Standards Codification (“ASC”) 810-10-25-2 to 14 (“Consolidation—The Effect of Noncontrolling Rights on Consolidation”). In addition, the consolidated financial statements also include variable interest entities to which the Company and its subsidiaries are primary beneficiaries pursuant to ASC 810 (“Consolidation”). A lag period of up to three months is used on a consistent basis for recognizing the results of certain subsidiaries and affiliates. All significant intercompany accounts and transactions have been eliminated in consolidation. (c) Use of estimates The preparation of consolidated 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company has identified ten areas where it believes assumptions and estimates are particularly critical to the financial statements. The Company makes estimates and assumptions to the selection of valuation techniques and determination of assumptions used in fair value measurements (see Note 2), the determination and periodic reassessment of the unguaranteed residual value for direct financing leases and operating leases (see (e)), the determination and reassessment of insurance policy liabilities and deferred policy acquisition costs (see (f)), the determination of the allowance for doubtful receivables on direct financing leases and probable loan losses (see (g)), the recognition and measurement of impairment of long-lived assets (see (h)), the recognition and measurement of impairment of investment in securities (see (i)), the determination of the valuation allowance for deferred tax assets and the evaluation of tax positions (see (j)), the assessment and measurement of effectiveness in hedging relationship using derivative financial instruments (see (l)), the determination of benefit obligation and net periodic pension cost (see (m)) and the recognition and measurement of impairment of goodwill and intangible assets that have indefinite useful lives (see (w)). (d) Foreign currencies translation The Company and its subsidiaries maintain their accounting records in their functional currency. Transactions in foreign currencies are recorded in the entity’s functional currency based on the prevailing exchange rates on the transaction date. The financial statements of overseas subsidiaries and affiliates are translated into Japanese yen by applying the exchange rates in effect at the end of each fiscal year to all assets and liabilities. Income and expenses are translated at the average rates of exchange prevailing during the fiscal year. The currencies in which the operations of the overseas subsidiaries and affiliates are conducted are regarded as the functional currencies of these companies. Foreign currency translation adjustments reflected in accumulated other comprehensive income (loss) arise from the translation of foreign currency financial statements into Japanese yen. (e) Recognition of revenues Revenues are recognized when persuasive evidence of an arrangement exists, the service has been rendered or the goods have been delivered to the customer, the transaction price is fixed or determinable and collectability is reasonably assured. In addition to the aforementioned general policy, the policies as specifically described hereinafter are applied for each of the major revenue items. Finance Revenues (1) Revenues from direct financing leases Direct financing leases consist of full-payout leases for various equipment types, including office equipment, industrial machinery and transportation equipment. In providing leasing services, the Company and its subsidiaries execute supplemental services, such as paying insurance and handling taxes on leased assets on behalf of lessees. The excess of aggregate lease rentals plus the estimated unguaranteed residual value over the cost of the leased equipment constitutes the unearned lease income to be taken into income over the lease term by using the interest method. The estimated residual values represent estimated proceeds from the disposition of equipment at the time the lease is terminated. Estimates of unguaranteed residual values are based on market values of used equipment, estimates of when and how much equipment will become obsolete, and actual recovery being experienced for similar used equipment. Initial direct costs are being deferred and amortized as a yield adjustment over the life of the related lease by using interest method. The unamortized balance of initial direct costs is reflected as a component of investment in direct financing leases. (2) Revenues from installment loans Interest income on installment loans is recognized on an accrual basis. Certain direct loan origination costs, net of origination fees, are being deferred and amortized over the contractual term of the loan as an adjustment of the related loan’s yield using the interest method. Interest payments received on impaired loans other than purchased loans are recorded as interest income unless the collection of the remaining investment is doubtful at which time payments received are recorded as reductions of principal. For purchased loans, although the acquired assets may remain loans in legal form, collections on these loans often do not reflect the normal historical experience of collecting delinquent accounts, and the need to tailor individual collateral-realization strategies often makes it difficult to reliably estimate the amount, timing, or nature of collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans regardless of whether impairment is recognized or not. (3) Non-accrual policy In common with all classes, past-due financing receivables are receivables for which principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms. The Company and its subsidiaries suspend accruing revenues on past-due installment loans and direct financing leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Accrued but uncollected interest is reclassified to investment in direct financing leases or installment loans in the accompanying consolidated balance sheets and becomes subject to the allowance for doubtful receivables and probable loan loss process. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return non-accrual loans and lease receivables to accrual status when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtor’s creditworthiness, such as the debtor’s business characteristics and financial conditions as well as relevant economic conditions and trends. Gains on investment securities and dividends — Operating leases — Estimates of residual values are based on market values of used equipment, estimates of when and the extent to which equipment will become obsolete and actual recovery being experienced for similar used equipment. Sales of goods and real estate— (1) Sales of goods The Company and its subsidiaries sell to their customers various types of goods, including precious metals and jewels, and aftermarket parts and accessories for vehicles. Revenues from such sales of goods are recognized when persuasive evidence of an arrangement exists, delivery has occurred, and collectability is reasonably assured. Delivery is considered to have occurred when the customer has taken title to the goods and assumed the risks and rewards of ownership. Revenues are recognized net of estimated sales returns and incentives. (2) Real estate sales Revenues from the sales of real estate are recognized when a contract is in place, a closing has taken place, the buyer’s initial and continuing investment is adequate to demonstrate a commitment to pay for the property and the Company and its subsidiaries do not have a substantial continuing involvement in the property. Services income — (1) Revenues from asset management and servicing The Company and its subsidiaries provide to our customers investment management services for investments in financial assets, and asset management as well as maintenance and administrative services for investments in real estate properties. The Company and its subsidiaries also perform servicing on behalf of our customers. The Company and its subsidiaries receive fees for those services from our customers. Revenues from asset management and servicing primarily include management fees, servicing fees, and performance fees. Management and servicing fees are recognized when transactions occur or services are rendered and the amounts are fixed or determinable and collectability of which is reasonably assured. Management fees are calculated based on the predetermined percentages of the market value of the assets under management or net assets of the investment funds in accordance with contracts. Certain subsidiaries recognize revenues from performance fees when earned based on the performance of the asset under management while other subsidiaries recognize revenues from performance fees on an accrual basis over the period in which services are performed. Performance fees are calculated based on the predetermined percentages on the performance of the assets under management in accordance with the contracts. (2) Revenues from automobile maintenance services The Company and its subsidiaries provide automobile maintenance services to lessees. Where under terms of the lease or related maintenance agreements the Company and its subsidiaries bear the favorable or unfavorable variability of cost, revenues and expenses are recorded on a gross basis. For those arrangements in which the Company and its subsidiaries do not have substantial risks and rewards of ownership, but instead serve as an agent in collecting from lessees and remitting payments to third parties, the Company and its subsidiaries record revenues net of third-party services costs. Revenues from automobile maintenance services are recognized over the contract period in proportion to the estimated service costs to be incurred. (f) Insurance and reinsurance transactions Premium income from life insurance policies, net of premiums on reinsurance ceded, is recognized as earned premiums when due. Life insurance benefits are recorded as expenses when they are incurred. Policy liabilities and policy account balances for future policy benefits are measured using the net level premium method, based on actuarial estimates of the amount of future policyholder benefits. The policies are characterized as long-duration policies and mainly consist of whole life, term life, endowments, medical insurance and individual annuity insurance contracts. For policies other than individual annuity insurance contracts, computation of policy liabilities necessarily includes assumptions about mortality, morbidity, lapse rates, future yields on related investments and other factors applicable at the time the policies are written. A certain subsidiary continually evaluates the potential for changes in the estimates and assumptions applied in determining policy liabilities, both positive and negative and uses the results of these evaluations both to adjust recorded liabilities and to adjust underwriting criteria and product offerings. The insurance contracts sold by the subsidiary consist of variable annuity, variable life and fixed annuity insurance contracts. The subsidiary manages investment assets on behalf of variable annuity and variable life policyholders, which consist of equity securities and are included in investments in securities in the consolidated balance sheets. These investment assets are measured at fair value with realized and unrealized gains or losses recognized in life insurance premiums and related investment income in the consolidated statements of income. The subsidiary elected the fair value option for the entire variable annuity and variable life insurance contracts in accordance with ASC 825 (“Financial Instruments”) with changes in the fair value recognized in life insurance costs. The subsidiary provides minimum guarantees to variable annuity and variable life policyholders under which it is exposed to the risk of compensating losses incurred by the policyholders to the extent contractually required. To mitigate the risk, a portion of the minimum guarantee risk related to variable annuity and variable life insurance contracts is ceded to the reinsurance companies and the remaining risk is economically hedged by entering into derivative contracts (See Note 29 “Derivative financial instruments and hedging”). The reinsurance contracts do not relieve the subsidiary from the obligation as the primary obligor to compensate certain losses incurred by the policyholders, and the default of the reinsurance companies may impose additional losses on the subsidiary. Certain subsidiaries have elected the fair value option under ASC 825 (“Financial Instruments”) for certain reinsurance contracts relating to variable annuity and variable life insurance contracts, which is included in other assets in the consolidated balance sheets. Policy liabilities and policy account balances for fixed annuity insurance contracts are measured based on the single-premiums plus interest based on expected rate and fair value adjustments relating to the acquisition of a subsidiary, less withdrawals, expenses and other charges. The credited interest is recorded in life insurance costs in the consolidated statements of income. ASC 944 (“Financial Services—Insurance”) requires insurance companies to defer certain costs related directly to the successful acquisition of new or renewal insurance contracts, or deferred policy acquisition costs, and amortize them over the respective policy periods in proportion to anticipated premium revenue. These deferred policy acquisition costs consist primarily of first-year commissions, except for recurring policy maintenance costs and certain variable costs and expenses for underwriting policies. (g) Allowance for doubtful receivables on direct financing leases and probable loan losses The allowance for doubtful receivables on direct financing leases and probable loan losses is maintained at a level which, in the judgment of management, is appropriate to provide for probable losses inherent in lease and loan portfolios. The allowance is increased by provision charged to income and is decreased by charge-offs, net of recoveries. Developing the allowance for doubtful receivables on direct financing leases and probable loan losses is subject to numerous estimates and judgments. In evaluating the appropriateness of the allowance, management considers various factors, including the business characteristics and financial conditions of the obligors, current economic conditions and trends, prior charge-off experience, current delinquencies and delinquency trends, future cash flows expected to be received from the direct financing leases and loans and value of underlying collateral and guarantees. Impaired loans are individually evaluated for a valuation allowance based on the present value of expected future cash flows, the loan’s observable market price or the fair value of the collateral securing the loans if the loans are collateral-dependent. For non-impaired loans, including loans that are not individually evaluated for impairment, and direct financing leases, the Company and its subsidiaries evaluate prior charge-off experience segmented by the debtors’ industries and the purpose of the loans, and then develop the allowance for doubtful receivables on direct financing leases and probable loan losses considering the prior charge-off experience and current economic conditions. The Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal considering debtors’ creditworthiness and the liquidation status of collateral. (h) Impairment of long-lived assets The Company and its subsidiaries have followed ASC 360 (“Property, Plant, and Equipment”). Under ASC 360, long-lived assets to be held and used in operations, including tangible assets and intangible assets being amortized, consisting primarily of office buildings, condominiums, golf courses and other properties under facility operations, are tested for recoverability whenever events or changes in circumstances indicate that the assets might be impaired. The assets are considered not recoverable when the undiscounted future cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount. The Company and its subsidiaries determine the fair value using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques, such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. (i) Investment in securities Trading securities are reported at fair value with unrealized gains and losses included in income. Available-for-sale securities are reported at fair value, and unrealized gains or losses are recorded in accumulated other comprehensive income (loss), net of applicable income taxes, except investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option under ASC 825 (“Financial Instruments”). Held-to-maturity securities are recorded at amortized cost. Other securities are recorded at cost or carrying value that reflects equity income and loss based on the Company’s share, except investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option under ASC 825 (“Financial Instruments”). For available-for-sale securities, the Company and its subsidiaries generally recognize losses related to equity securities for which the fair value has been significantly below the acquisition cost (or current carrying value if an adjustment has been made in the past) for more than six months. Also, the Company and its subsidiaries charge against income losses related to equity securities in situations where, even though the fair value has not remained significantly below the carrying value for six months, the decline in the fair value of an equity security is based on the issuer’s specific economic conditions and not just general declines in the related market and where it is considered unlikely that the fair value of the equity security will recover within six months. For debt securities, where the fair value is less than the amortized cost, the Company and its subsidiaries consider whether those securities are other-than-temporarily impaired using all available information about their collectability. The Company and its subsidiaries do not consider a debt security to be other-than-temporarily impaired if (1) the Company and its subsidiaries do not intend to sell the debt security, (2) it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. On the other hand, the Company and its subsidiaries consider a debt security to be other-than-temporarily impaired if any of the above mentioned three conditions are not met. When the Company and its subsidiaries deem a debt security to be other-than-temporarily impaired, the Company and its subsidiaries recognize the entire difference between the amortized cost and the fair value of the debt securities in earnings if the Company and its subsidiaries intend to sell the debt security or it is more likely than not that the Company and its subsidiary will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss. However, if the Company and its subsidiaries do not intend to sell the debt security and it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss, the Company and its subsidiaries separate the difference between the amortized cost and the fair value of the debt securities into the credit loss component and the non-credit loss component. The credit loss component is recognized in earnings, and the non-credit loss component is recognized in other comprehensive income (loss), net of applicable income taxes. For other securities, when the Company and its subsidiaries determine the decline in value is other than temporary, the Company and its subsidiaries reduce the carrying value of the security to the fair value and charge against income losses related to these other securities. (j) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if, based on the weight of available evidence, it is “more likely than not” that some portion or all of the deferred tax asset will not be realized. The Company and its subsidiaries file tax returns in Japan and certain foreign tax jurisdictions and recognize the financial statement effects of a tax position taken or expected to be taken in a tax return when it is more likely than not, based on the technical merits, that the position will be sustained upon tax examination, including resolution of any related appeals or litigation processes, and measure tax positions that meet the recognition threshold at the largest amount of tax benefit that is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company and its subsidiaries present an unrecognized tax benefit as either a reduction of a deferred tax asset, a reduction of an amount refundable or a liability, based on the intended method of settlement. The Company and its subsidiaries classify penalties and interest expense related to income taxes as part of provision for income taxes in the consolidated statements of income. The Company and certain subsidiaries have elected to file a consolidated tax return for National Corporation tax purposes. (k) Securitized assets The Company and its subsidiaries have securitized and sold to investors various financial assets such as lease receivables and loan receivables. In the securitization process, the assets to be securitized are sold to trusts or SPEs that issue asset-backed beneficial interests and securities to the investors. In accordance with ASC 860 (“Transfers and Servicing”) and ASC 810 (“Consolidation”), trusts or SPEs used in securitization transactions are consolidated if the Company and its subsidiaries are the primary beneficiary of the trusts or SPEs, and the transfers of the financial assets to those consolidated trusts and SPEs are not accounted for as sales. Assets held by consolidated trusts or consolidated SPEs continue to be accounted for as lease receivables or loan receivables, as they were before the transfer, and asset-backed beneficial interests and securities issued to the investors are accounted for as debt. When the Company and its subsidiaries have transferred financial assets to a transferee that is not subject to consolidation, the Company and its subsidiaries account for the transfer as a sale if control over the transferred assets is surrendered. A certain subsidiary originates and sells loans into the secondary market, while retaining the obligation to service those loans. In addition, it undertakes obligations to service loans originated by others. The subsidiary recognizes servicing assets if it expects the benefit of servicing to more than adequately compensate it for performing the servicing or recognizes servicing liabilities if it expects the benefit of servicing to less than adequately compensate it. These servicing assets and liabilities are initially recognized at fair value and subsequently accounted for using the amortization method whereby the assets and liabilities are amortized in proportion to and over the period of estimated net servicing income or net servicing loss. On a quarterly basis, servicing assets and liabilities are evaluated for impairment or increased obligations. The fair value of servicing assets and liabilities is estimated using an internal valuation model, or by obtaining an opinion of value from an independent third-party vendor. Both methods are based on calculating the present value of estimated future net servicing cash flows, taking into consideration discount rates, prepayments and servicing costs. The internal valuation model is validated at least semiannually through third-party valuations. (l) Derivative financial instruments The Company and its subsidiaries apply ASC 815 (“Derivatives and Hedging”), and all derivatives held by the Company and its subsidiaries are recognized on the consolidated balance sheets at fair value. The accounting treatment of subsequent changes in the fair value depends on their use, and whether they qualify as effective “hedges” for accounting purposes. Derivatives that are not hedges must be adjusted to fair value through the consolidated statements of income. If a derivative is a hedge, then depending on its nature, changes in its fair value will be either offset against changes in the fair value of hedged assets or liabilities through the consolidated statements of income, or recorded in other comprehensive income (loss). If a derivative is held as a hedge of the variability of fair value related to a recognized asset or liability or an unrecognized firm commitment (“fair value” hedge), changes in the fair value of the derivative are recorded in earnings along with the changes in the fair value of the hedged item. If a derivative is held as a hedge of the variability of cash flows related to a forecasted transaction or a recognized asset or liability (“cash flow” hedge), changes in the fair value of the derivative are recorded in other comprehensive income (loss) to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. If a derivative is held as a hedge of a foreign-currency fair-value or cash-flow hedge (“foreign currency” hedge), changes in the fair value of the derivative are recorded in either earnings or other comprehensive income (loss), depending on whether the hedged transaction is a fair-value hedge or a cash-flow hedge. However, if a derivative is used as a hedge of a net investment in a foreign operation, changes in its fair value, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within other comprehensive income (loss). Changes in the fair value of derivatives that are held for trading purposes or held for the purpose of economic hedges, and the ineffective portion of changes in fair value of derivatives that qualify as a hedge, are recorded in earnings. For all hedging relationships that are designated and qualified as hedging, at inception the Company and its subsidiaries formally document the details of the hedging relationship and the hedged activity. The Company and its subsidiaries also formally assess, both at the hedge’s inception and on an ongoing basis, the effectiveness of the hedge relationship. The Company and its subsidiaries cease hedge accounting prospectively when the derivative no longer qualified for hedge accounting. (m) Pension plans The Company and certain subsidiaries have contributory and non-contributory pension plans covering substantially all of their employees. The Company and its subsidiaries apply ASC 715 (“Compensation—Retirement Benefits”), and the costs of pension plans are accrued based on amounts determined using actuarial methods, with assumptions of discount rate, rate of increase in compensation level, expected long-term rate of return on plan assets and others. The Company and its subsidiaries also recognize the funded status of pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, on the consolidated balance sheets. Changes in that funded status are recognized in the year in which the changes occur through other comprehensive income (loss), net of applicable income taxes. (n) Stock-based compensation The Company and its subsidiaries apply ASC 718 (“Compensation—Stock Compensation”). ASC 718 requires, with limited exception, that the cost of employee services received in exchange for an award of equity instruments be measured based on the grant-date fair value. The costs are recognized over the requisite employee service period. (o) Stock splits Stock splits implemented prior to October 1, 2001 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | 2. Fair Value Measurements The Company and its subsidiaries adopted ASC 820 (“Fair Value Measurement”). This Codification Section defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This Codification Section classifies and prioritizes inputs used in valuation techniques to measure fair value into the following three levels: Level 1—Inputs of quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2—Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly. Level 3—Unobservable inputs for the assets or liabilities. This Codification Section differentiates between those assets and liabilities required to be carried at fair value at every reporting period (“recurring”) and those assets and liabilities that are only required to be adjusted to fair value under certain circumstances (“nonrecurring”). The Company and its subsidiaries mainly measure certain loans held for sale, trading securities, available-for-sale securities, certain investment funds, derivatives, certain reinsurance recoverables, certain contingent consideration, and variable annuity and variable life insurance contracts at fair value on a recurring basis. The following table presents recorded amounts of major financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and 2016: March 31, 2015 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Loans held for sale*1 ¥ 15,361 ¥ 0 ¥ 15,361 ¥ 0 Trading securities 1,190,131 50,902 1,139,229 0 Available-for-sale securities 1,356,840 130,519 1,129,270 97,051 Japanese and foreign government bond securities 527,592 0 527,592 0 Japanese prefectural and foreign municipal bond securities 161,477 0 161,477 0 Corporate debt securities 287,613 0 287,613 0 Specified bonds issued by SPEs in Japan 7,280 0 0 7,280 CMBS and RMBS in the Americas 69,976 0 47,318 22,658 Other asset- backed securities and debt securities 147,970 0 81,718 66,252 Equity securities*3 154,932 130,519 23,552 861 Other securities 8,723 0 0 8,723 Investment funds*4 8,723 0 0 8,723 Derivative assets 25,123 6 13,247 11,870 Interest rate swap agreements 890 0 890 0 Options held/written and other 12,103 0 233 11,870 Futures, foreign exchange contracts 5,719 6 5,713 0 Foreign currency swap agreements 6,411 0 6,411 0 Netting*5 (2,858 ) 0 0 0 Net derivative assets 22,265 0 0 0 Other assets 36,038 0 0 36,038 Reinsurance recoverables*6 36,038 0 0 36,038 Total ¥ 2,632,216 ¥ 181,427 ¥ 2,297,107 ¥ 153,682 Liabilities: Derivative liabilities ¥ 29,619 ¥ 762 ¥ 28,857 ¥ 0 Interest rate swap agreements 1,221 0 1,221 0 Options written and other 6,177 0 6,177 0 Futures, foreign exchange contracts 12,268 762 11,506 0 Foreign currency swap agreements 9,788 0 9,788 0 Credit derivatives held 165 0 165 0 Netting*5 (2,858 ) 0 0 0 Net derivative Liabilities 26,761 0 0 0 Accounts Payable 5,533 0 0 5,533 Contingent consideration 5,533 0 0 5,533 Policy Liabilities and Policy Account Balances 1,254,483 0 0 1,254,483 Variable annuity and variable life insurance contracts*7 1,254,483 0 0 1,254,483 Total ¥ 1,289,635 ¥ 762 ¥ 28,857 ¥ 1,260,016 March 31, 2016 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Loans held for sale*1 ¥ 20,673 ¥ 0 ¥ 20,673 ¥ 0 Trading securities 725,821 37,592 688,229 0 Available-for-sale securities 1,347,890 99,347 1,149,021 99,522 Japanese and foreign government bond securities*2 497,355 988 496,367 0 Japanese prefectural and foreign municipal bond securities 169,534 0 169,534 0 Corporate debt securities 410,779 0 410,774 5 Specified bonds issued by SPEs in Japan 3,461 0 0 3,461 CMBS and RMBS in the Americas 97,186 0 58,693 38,493 Other asset- backed securities and debt securities 58,230 0 667 57,563 Equity securities*3 111,345 98,359 12,986 0 Other securities 17,751 0 0 17,751 Investment funds*4 17,751 0 0 17,751 Derivative assets 33,747 48 25,491 8,208 Interest rate swap agreements 93 0 93 0 Options held/written and other 8,789 0 581 8,208 Futures, foreign exchange contracts 18,294 48 18,246 0 Foreign currency swap agreements 6,571 0 6,571 0 Netting*5 (5,757 ) 0 0 0 Net derivative assets 27,990 0 0 0 Other assets 37,855 0 0 37,855 Reinsurance recoverables*6 37,855 0 0 37,855 Total ¥ 2,183,737 ¥ 136,987 ¥ 1,883,414 ¥ 163,336 Liabilities: Derivative liabilities ¥ 19,870 ¥ 533 ¥ 19,337 ¥ 0 Interest rate swap agreements 5,921 0 5,921 0 Options written and other 3,637 0 3,637 0 Futures, foreign exchange contracts 6,655 533 6,122 0 Foreign currency swap agreements 3,601 0 3,601 0 Credit derivatives held 56 0 56 0 Netting*5 (5,757 ) 0 0 0 Net derivative Liabilities 14,113 0 0 0 Policy Liabilities and Policy Account Balances 795,001 0 0 795,001 Variable annuity and variable life insurance contracts*7 795,001 0 0 795,001 Total ¥ 814,871 ¥ 533 ¥ 19,337 ¥ 795,001 *1 A certain subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) on the loans held for sale originated on or after October 1, 2011. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were gains from the change in the fair value of the loans of ¥116 million and ¥246 million for fiscal 2014 and 2015 and a loss from the change in the fair value of the loans of ¥71 million for fiscal 2016. No gains or losses were recognized in earnings for fiscal 2014, 2015 and 2016 attributable to changes in instrument-specific credit risk. The amounts of aggregate unpaid principal balance and aggregate fair value of the loan held for sale as of March 31, 2015, were ¥14,431 million and ¥15,361 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥930 million. The amounts of aggregate unpaid principal balance and aggregate fair value as of March 31, 2016, were ¥19,848 million and ¥20,673 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥825 million. As of March 31, 2015 and 2016, there were no loans that were 90 days or more past due, in non-accrual status, or both. *2 A certain subsidiary that has newly become a consolidated subsidiary of the Company during fiscal 2016, elected the fair value option under ASC 825 (“Financial Instruments”) for investments in foreign government bond securities included in available-for-sale securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income was a loss of ¥9 million from the change in the fair value of those investments for fiscal 2016. The amounts of aggregate fair value elected the fair value option was ¥988 million as of March 31, 2016. *3 A certain subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) for investments in equity securities included in available-for-sale securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥333 million and ¥1,070 million and a loss of ¥202 million from the change in the fair value of those investments for fiscal 2014, 2015 and 2016. The amount of aggregate fair value elected the fair value option were ¥8,168 million and ¥16,227 million as of March 31, 2015 and 2016, respectively. *4 Certain subsidiaries elected the fair value option under ASC 825 (“Financial Instruments”) for investments in some funds. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥1,412 million and ¥1,301 million and a loss of ¥4 million from the change in the fair value of those investments for fiscal 2014, 2015 and 2016. The amounts of aggregate fair value were ¥8,723 million and ¥10,152 million as of March 31, 2015 and 2016, respectively. *5 It represents the amount offset under counterparty netting of derivative assets and liabilities. *6 Certain subsidiaries elected the fair value option under ASC 825 (“Financial Instruments”) for certain reinsurance contracts held. The fair value of the reinsurance contracts elected for the fair value option in other assets were ¥36,038 million and ¥37,855 million as of March 31, 2015 and 2016, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings for fiscal 2015 and 2016, see Note 23 “Life Insurance Operations.” *7 A certain subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) for the entire variable annuity and variable life insurance contracts held in order to match the earnings recognized for the changes in the fair value of policy liabilities and policy account balances with earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and the changes in the fair value of reinsurance contracts. The fair value of the variable annuity and variable life insurance contracts elected for the fair value option in policy liabilities and policy account balances were ¥1,254,483 million and ¥795,001 million as of March 31, 2015 and 2016, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings for fiscal 2015 and 2016, see Note 23 “Life Insurance Operations.” Changes in economic conditions or valuation methodologies may require the transfer of assets and liabilities from one fair value level to another. In such instances, the Company and its subsidiaries recognize the transfer at the beginning of the quarter during which the transfers occur. The Company and its subsidiaries evaluate the significance of transfers between levels based upon size of the transfer relative to total assets, total liabilities or total earnings. For fiscal 2015 and 2016, there were no transfers between Level 1 and Level 2. The following table presents the reconciliation of financial assets and liabilities (net) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in fiscal 2014, 2015 and 2016: 2014 Millions of yen Balance at April 1, 2013 Gains or losses (realized/ unrealized) Purchases*3 Sales Settlements*4 Transfers in and/ or out of Level 3 (net)*5 Balance at March 31, Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, Included in earnings*1 Included in other comprehensive Income*2 Total Available-for-sale securities ¥ 136,978 ¥ 4,364 ¥ 4,056 ¥ 8,420 ¥ 56,202 ¥ (13,817 ) ¥ (103,782 ) ¥ 0 ¥ 84,001 ¥ 180 Corporate debt securities 6,524 416 (356 ) 60 0 (1,325 ) (4,598 ) 0 661 0 Specified bonds issued by SPEs in Japan 63,244 327 839 1,166 0 (36 ) (57,602 ) 0 6,772 5 CMBS and RMBS in the Americas 24,338 2,388 963 3,351 14,295 (11,067 ) (13,084 ) 0 17,833 (152 ) Other asset- backed securities and debt securities 42,872 1,233 2,610 3,843 41,907 (1,389 ) (28,498 ) 0 58,735 327 Other securities 5,800 1,767 584 2,351 2,013 (3,824 ) (23 ) 0 6,317 1,767 Investment funds 5,800 1,767 584 2,351 2,013 (3,824 ) (23 ) 0 6,317 1,767 Derivative assets and liabilities (net) 2,099 2,987 0 2,987 0 0 (2,600 ) 0 2,486 2,987 Options held/written and other 2,099 2,987 0 2,987 0 0 (2,600 ) 0 2,486 2,987 Accounts payable 0 2,343 0 2,343 5,176 0 0 0 2,833 2,343 Contingent consideration 0 2,343 0 2,343 5,176 0 0 0 2,833 2,343 2015 Millions of yen Balance at Gains or losses (realized/unrealized) Purchases*3 Sales Settlements*4 Transfers in and/ or out of Level 3 (net)*5 Balance at March 31, Change in unrealized gains or losses included in earnings for assets and liabilities still March 31, Included in Included in other comprehensive income*2 Total Available-for-sale securities ¥ 84,001 ¥ 2,101 ¥ 6,653 ¥ 8,754 ¥ 65,964 ¥ (18,222 ) ¥ (23,796 ) ¥ (19,650 ) ¥ 97,051 ¥ (1,745 ) Corporate debt securities 661 73 (24 ) 49 0 (210 ) (500 ) 0 0 0 Specified bonds issued by SPEs in Japan 6,772 5 101 106 1,700 0 (1,298 ) 0 7,280 5 CMBS and RMBS in the Americas 17,833 60 3,724 3,784 29,372 (3,446 ) (4,447 ) (20,438 ) 22,658 (395 ) Other asset-backed securities and debt securities 58,735 1,963 2,779 4,742 34,892 (14,566 ) (17,551 ) 0 66,252 (1,355 ) Equity securities 0 0 73 73 0 0 0 788 861 0 Other securities 6,317 1,290 1,142 2,432 6,180 (4,870 ) (1,336 ) 0 8,723 1,290 Investment funds 6,317 1,290 1,142 2,432 6,180 (4,870 ) (1,336 ) 0 8,723 1,290 Derivative assets and liabilities (net) 2,486 (13,838 ) 0 (13,838 ) 28,536 0 (5,314 ) 0 11,870 (13,838 ) Options held/written and other 2,486 (13,838 ) 0 (13,838 ) 28,536 0 (5,314 ) 0 11,870 (13,838 ) Other assets 0 (36,072 ) 0 (36,072 ) 72,654 0 (544 ) 0 36,038 (36,072 ) Reinsurance recoverables*6 0 (36,072 ) 0 (36,072 ) 72,654 0 (544 ) 0 36,038 (36,072 ) Accounts payable 2,833 (12,203 ) 0 (12,203 ) 0 0 (9,503 ) 0 5,533 (12,203 ) Contingent consideration 2,833 (12,203 ) 0 (12,203 ) 0 0 (9,503 ) 0 5,533 (12,203 ) Policy Liabilities and Policy Account Balances 0 (100,702 ) 0 (100,702 ) 1,765,444 0 (611,663 ) 0 1,254,483 (100,702 ) Variable annuity and variable life insurance contracts*7 0 (100,702 ) 0 (100,702 ) 1,765,444 0 (611,663 ) 0 1,254,483 (100,702 ) 2016 Millions of yen Balance at Gains or losses (realized/unrealized) Purchases*3 Sales Settlements*4 Transfers in and/ or out of Level 3 (net)*5 Balance at March 31, Change in unrealized gains or losses included in earnings for assets and held at Included in earnings*1 Included in other comprehensive income*2 Total Available-for-sale securities ¥ 97,051 ¥ 922 ¥ (10,458 ) ¥ (9,536 ) ¥ 47,886 ¥ (15,632 ) ¥ (19,378 ) ¥ (869 ) ¥ 99,522 ¥ (679 ) Corporate debt securities 0 1 0 1 5 (1 ) 0 0 5 0 Specified bonds issued by SPEs in Japan 7,280 5 16 21 0 (1,885 ) (1,955 ) 0 3,461 2 CMBS and RMBS in the Americas 22,658 424 (3,831 ) (3,407 ) 26,431 (2,401 ) (4,788 ) 0 38,493 (763 ) Other asset-backed securities and debt securities 66,252 492 (6,651 ) (6,159 ) 21,450 (11,345 ) (12,635 ) 0 57,563 82 Equity securities 861 0 8 8 0 0 0 (869 ) 0 0 Other securities 8,723 1,146 (2,194 ) (1,048 ) 10,933 (857 ) 0 0 17,751 849 Investment funds 8,723 1,146 (2,194 ) (1,048 ) 10,933 (857 ) 0 0 17,751 849 Derivative assets and liabilities (net) 11,870 (4,596 ) 0 (4,596 ) 5,857 0 (4,923 ) 0 8,208 (4,596 ) Options held/written and other 11,870 (4,596 ) 0 (4,596 ) 5,857 0 (4,923 ) 0 8,208 (4,596 ) Other assets 36,038 (8,482 ) 0 (8,482 ) 10,669 0 (370 ) 0 37,855 (8,482 ) Reinsurance recoverables*6 36,038 (8,482 ) 0 (8,482 ) 10,669 0 (370 ) 0 37,855 (8,482 ) Accounts payable 5,533 3,059 0 3,059 0 0 (2,474 ) 0 0 0 Contingent consideration 5,533 3,059 0 3,059 0 0 (2,474 ) 0 0 0 Policy Liabilities and Policy Account Balances 1,254,483 40,751 0 40,751 0 0 (418,731 ) 0 795,001 40,751 Variable annuity and variable life insurance contracts*7 1,254,483 40,751 0 40,751 0 0 (418,731 ) 0 795,001 40,751 *1 Principally, gains and losses from available-for-sale securities are included in “Gains on investment securities and dividends”, “Write-downs of securities” or “Life insurance premiums and related investment income”; other securities are included in “Gains on investment securities and dividends” and derivative assets and liabilities (net) are included in “Other (income) and expense, net” and gains and losses from accounts payable are included in “Other (income) and expense, net” respectively. Also, for available-for-sale securities, amortization of interest recognized in finance revenues is included in these columns. *2 Unrealized gains and losses from available-for-sale securities are included in “Net change of unrealized gains (losses) on investment in securities.” *3 Increases resulting from an acquisition of a subsidiary and insurance contracts ceded to reinsurance companies are included. *4 Decreases resulting from the receipts of reimbursements for benefits, and decreases resulting from insurance payouts to variable annuity and variable life policyholders due to death, surrender and maturity of the investment period are included. Due to the elapse of the computation period of the contingent consideration during fiscal 2016, the unsettled payment is included in a decrease of Accounts payable. *5 The amount reported in “Transfers in and/or out of Level 3 (net)” is the fair value at the beginning of quarter during which the transfers occur. *6 “Included in earnings” in the above table includes changes in the fair value of reinsurance contracts recorded in “Life insurance costs” and reinsurance premiums, net of reinsurance benefits received, recorded in “Life insurance premiums and related investment income.” *7 “Included in earnings” in the above table is recorded in “Life insurance costs” and includes changes in the fair value of policy liabilities and policy account balances resulting from gains or losses on the underlying investment assets managed on behalf of variable annuity and variable life policyholders, and the changes in the minimum guarantee risks relating to variable annuity and variable life insurance contracts as well as insurance costs recognized for insurance and annuity payouts as a result of insured events. There were no transfers in or out of Level 3 in fiscal 2014. In fiscal 2015, CMBS in the Americas totaling ¥20,438 million were transferred from Level 3 to Level 2, since the inputs such as trading price and/or bid price became observable due to the market returning to active and the bonds invested being more liquid with actual observable trades of the similar financial instruments and/or active dealer bids. In addition equity securities totaling ¥788 million were transferred from Level 2 to Level 3, since the inputs became unobservable. In fiscal 2016, equity securities totaling ¥869 million were transferred from Level 3 to Level 2, since the inputs became observable. The following table presents recorded amounts of assets measured at fair value on a nonrecurring basis as of March 31, 2015 and 2016. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment: March 31, 2015 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 21,537 ¥ 0 ¥ 0 ¥ 21,537 Investment in operating leases and property under facility operations 67,500 0 0 67,500 Land and buildings undeveloped or under construction 8,084 0 0 8,084 Certain investment in affiliates 1,220 0 0 1,220 Goodwill 2,435 0 0 2,435 Total ¥ 100,776 ¥ 0 ¥ 0 ¥ 100,776 March 31, 2016 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 17,511 ¥ 0 ¥ 0 ¥ 17,511 Investment in operating leases and property under facility operations 25,681 0 0 25,681 Total ¥ 43,192 ¥ 0 ¥ 0 ¥ 43,192 The following is a description of the valuation process and the main valuation methodologies used for assets and liabilities measured at fair value: Valuation process The Company and its subsidiaries determine fair value of Level 3 assets and liabilities by using valuation techniques, such as internally developed models, or using third-party pricing information. Internally developed models include the discounted cash flow methodologies and direct capitalization methodologies. To measure the fair value of the assets and liabilities, the Company and its subsidiaries select the valuation technique which best reflects the nature, characteristics and risks of each asset and liability. The appropriateness of valuation methods and unobservable inputs is verified when measuring fair values of the assets and liabilities by using internally developed models. The Company and its subsidiaries also use third-party pricing information to measure the fair value of certain assets and liabilities. In that case, the Company and its subsidiaries verify the appropriateness of the prices by monitoring available information about the assets and liabilities, such as current conditions of the assets or liabilities, as well as surrounding market information. When these prices are determined to be able to reflect the nature, characteristics and risks of assets and liabilities reasonably, the Company and its subsidiaries use these prices as fair value of the assets and liabilities. Loans held for sale Certain loans, which the Company and its subsidiaries have the intent and ability to sell to outside parties in the foreseeable future, are considered held-for-sale. The loans held for sale in the Americas are classified as Level 2, because the Company and its subsidiaries measure their fair value based on a market approach using inputs other than quoted prices that are observable for the assets such as treasury rate, swap rate and market spread. Real estate collateral-dependent loans The valuation allowance for large balance non-homogeneous loans is individually evaluated based on the present value of expected future cash flows, the loan’s observable market price or the fair value of the collateral securing the loans if the loans are collateral-dependent. According to ASC 820 (“Fair Value Measurement”), measurement for impaired loans determined using a present value technique is not considered a fair value measurement. However, measurement for impaired loans determined using the loan’s observable market price or the fair value of the collateral securing the collateral-dependent loans are fair value measurements and are subject to the disclosure requirements for nonrecurring fair value measurements. The Company and its subsidiaries determine the fair value of the real estate collateral of real estate collateral-dependent loans using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. The Company and its subsidiaries generally obtain a new appraisal once a fiscal year. In addition, the Company and its subsidiaries periodically monitor circumstances of the real estate collateral and then obtain a new appraisal in situations involving a significant change in economic and/or physical conditions, which may materially affect the fair value of the collateral. Real estate collateral-dependent loans whose fair values are estimated using appraisals of the underlying collateral based on these valuation techniques are classified as Level 3 because such appraisals involve unobservable inputs. These unobservable inputs contain discount rates and cap rates as well as future cash flows estimated to be generated from real estate collateral. An increase (decrease) in the discount rate or cap rate and a decrease (increase) in the estimated future cash flows would result in a decrease (increase) in the fair value of real estate collateral-dependent loans. Investment in operating leases and property under facility operations and land and buildings undeveloped or under construction Investment in operating leases measured at fair value is mostly real estate. The Company and its subsidiaries determine the fair value of investment in operating leases and property under facility operations and land and buildings undeveloped or under construction using appraisals prepared by independent third party appraisers or the Company’s own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flow methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. The Company and its subsidiaries classified the assets as Level 3 because such appraisals involve unobservable inputs. These unobservable inputs contain discount rates as well as future cash flows estimated to be generated from the assets or projects. An increase (decrease) in the discount rate and a decrease (increase) in the estimated future cash flows would result in a decrease (increase) in the fair value of investment in operating leases and property under facility operations and land and buildings undeveloped or under construction. Trading securities, available-for-sale securities and investment in affiliates If active market prices are available, fair value measurement is based on quoted active market prices and, accordingly, these securities are classified as Level 1. If active market prices are not available, fair value measurement is based on observable inputs other than quoted prices included within Level 1, such as prices for similar assets and accordingly these securities are classified as Level 2. If market prices are not available and there are no observable inputs, then fair value is estimated by using valuation models including discounted cash flow methodologies and broker quotes. Such securities are classified as Level 3, as the valuation models and broker quotes are based on inputs that are unobservable in the market. If fair value is based on broker quotes, the Company and its subsidiaries check the validity of received prices based on comparison to prices of other similar assets and market data such as relevant bench mark indices. The Company and its subsidiaries classified CMBS and RMBS in the Americas and other asset-backed securities as Level 2 if the inputs such as trading price and/or bid price are observable. The Company and its subsidiaries classified CMBS and RMBS in the Americas and other asset-backed securities as Level 3 if the company and subsidiaries evaluate the fair value based on the unobservable inputs. In determining whether the inputs are observable or unobservable, the Company and its subsidiaries evaluate various factors such as the lack of recent transactions, price quotations that are not based on current information or vary substantially over time or among market makers, a significant increase in implied risk premium, a wide bid-ask spread, significant decline in new issuances, little or no public information (e.g. a principal-to-principal market) and other factors. With respect to certain CMBS and RMBS in the Americas and other asset-backed securities, the Company and its subsidiaries judged that there has been increased overall trading activity, and the Company and its subsidiaries classified these securities as Level 2 for those securities that were measured at fair value based on the observable inputs such as trading price and/or bit price. But for those securities that lacked observable trades because they are older vintage or below investment grade securities, the Company and its subsidiaries limit the reliance on independent pricing service vendors and brokers. As a result, the Company and its subsidiaries established internally developed pricing models using valuation techniques such as discounted cash flow model using Level 3 inputs in order to estimate fair value of these securities and classified them as Level 3. Under the models, the Company and its subsidiaries use anticipated cash flows of the security discounted at a risk-adjusted discount rate that incorporates our estimate of credit risk and liquidity risk that a market participant would consider. The cash flows are estimated based on a number of assumptions such as default rate and prepayment speed, as well as seniority of the security. An increase (decrease) in the discount rate or default rate would result in a decrease (increase) in the fair value of CMBS and RMBS in the Americas and other asset-backed securities. The Company and its subsidiaries classified the specified bonds as Level 3 because the Company and its subsidiaries measure their fair value using unobservable inputs. Since the specified bonds are not traded in an open market, no relevant observable market data is available. Accordingly the Company and its subsidiaries use the discounted cash flow methodology that incorporates significant unobservable inputs to measure their fair value. When evaluating the specified bonds issued by SPEs in Japan, the Company and its subsidiaries estimate the fair value by discounting future cash flows using a discount rate based on market interest rates and a risk premium. The future cash flows for the specified bonds issued by the SPEs in Japan are estimated based on contractual principal and interest repayment schedules on each of the specified bonds issued by the SPEs in Japan. Since the discount rate is not observable for the specified bonds, the Company and its subsidiaries use an internally developed model to estimate a risk premium considering the value of the real estate collateral (which also involves unobservable inputs in many cases when using valuation techniques such as discounted cash flow methodologies) and the seniority of the bonds. Under the model, the Company and its subsidiaries consider the loan-to-value ratio and other relevant available information to reflect both the credit risk and the liquidity risk in our own estimate of the risk premium. Generally, the higher the loan-to-value ratio, the larger the risk premium the Company and its subsidiaries estimate under the model. The fair value of the specified bonds issued by SPEs in Japan rises when the fair value of the collateral real estate rises and the discount rate declines. The fair value of the specified bonds issued by SPEs in Japan declines when the fair value of the collateral real estate declines and the discount rate rises. Investment funds Certain subsidiaries elected the fair value option for investments in some funds. These investment funds for which the fair value option is elected are classified as Level 3, because the subsidiaries measure their fair value using discounting to net asset value based on inputs that are unobservable in the market. A certain subsidiary measures its investment held by the investment company which is owned by the subsidiary at fair value. Derivatives For exchange-traded derivatives, fair value is based on quoted market prices, and accordingly, classified as Level 1. For non-exchange traded derivatives, fair value is based on commonly used models and discounted cash flow methodologies. If the inputs used for these measurements including yield curves and volatilities, are observable, the Company and its subsidiaries classify it as Level 2. If the inputs are not observable, the Company and its subsidiaries classify it as Level 3. These unobservable inputs contain discount rates. An increase (decrease) in the discount rate would result in a decrease (increase) in the fair value of derivatives. Reinsurance recoverables Certain subsidiaries have elected the fair value option for certain reinsurance contracts related to variable annuity and variable life insurance contracts to partially offset the changes in fair value recognized in earnings of the policy liabilities and policy account balances attributable to the changes in the minimum guarantee risks of the variable annuity and variable life insurance contracts. These reinsurance contracts for which the fair value option is elected are classified as Level 3 because the subsidiaries measure their fair value using discounted cash flow methodologies based on inputs that are unobservable in the market. Contingent consideration The Company will be required to pay certain contingent consideration described in Note 3 “Acquisitions and divestitures” depending on the future performance of a certain asset management business of the acquired subsidiary, and the Company recognizes a liability for the contingent consideration at its estimated fair value. The fair value |
Acquisitions and divestitures
Acquisitions and divestitures | 12 Months Ended |
Mar. 31, 2016 | |
Acquisitions and divestitures | 3. Acquisitions and divestitures (1) Robeco Groep N.V. acquisition On July 1, 2013, the Company acquired approximately 90.01% of the total voting equity interests of Robeco Groep N.V. (Head office: Rotterdam, the Netherlands, hereinafter, “Robeco”) from Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Head office: Utrecht, the Netherlands, hereinafter, “Rabobank”). As a result, Robeco has become a consolidated subsidiary of the Company. Robeco, a mid-size global asset manager, offers a mix of investment solutions in a broad range of strategies to institutional and private investors worldwide. The total cost of the acquisition consideration was ¥255,163 million. The initial consideration of ¥249,987 million was paid by ¥230,579 million in cash and 13,902,900 shares issued out of treasury, valued at ¥19,408 million. The 13,902,900 shares issued to Rabobank as part of the total consideration was determined based on the closing price of ¥1,396 of the Company’s common share on the Tokyo Stock Exchange on July 1, 2013 in accordance with the share purchase agreement executed between the Company and Rabobank as of February 19, 2013. In addition, the Company agreed to pay contingent consideration depending on the future performance of a certain section of asset management business for each of Robeco’s fiscal years until the fiscal year ended in December 2015. The estimated fair value of such contingent consideration was ¥5,176 million, which was included in the total consideration transferred. Due to the elapse of the computation period of the contingent consideration, unsettled payment of ¥2,398 million was included in trade notes, accounts and other payable in the Company’s consolidated balance sheets as of March, 31, 2016. During fiscal 2015, there was an increase in its fair value by ¥12,203 million, a decrease by ¥47 million due to settlement, and a decrease by ¥9,456 million due to the amount for an annual payment being finalized. During fiscal 2016, there was a decrease in its fair value by ¥3,059 million. The changes in the fair value is included as part of other (income) and expense, net in the Company’s consolidated statements of income. Transaction costs of ¥2,039 million are included in selling, general and administrative expenses in the Company’s consolidated statements of income for prior periods. Through this acquisition, the Company aims to expand its global asset management business as one of the measures to pursue new business models by combining finance with related services. The rationale for the Company’s acquisition of Robeco includes the strength of Robeco’s global brand, the diversity of its businesses across asset classes and regions, the breadth of its global distribution network and the experience of its investment teams. As a well-managed and relatively autonomous group of businesses with a good performance record, Robeco is the ideal vehicle for the Company to pursue its ambitions in global asset management. Growth opportunities also exist in the pension and asset management markets in Asia and the Middle East, where the Company has an established network. The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisition had occurred as of April 1, 2012, the beginning of fiscal 2013: Millions of yen 2014 Total revenues ¥ 1,405,276 Income from Continuing Operations 189,061 Total revenues and income from continuing operations of Robeco included in the Company’s consolidated statements of income for fiscal 2014 were ¥111,166 million and ¥17,251 million, respectively. The unaudited supplemental pro forma financial information is based on estimates and assumptions, that the Company believes are reasonable and should not be taken as indicative of what the Company’s consolidated financial results would have been had the acquisition been completed on that date. The unaudited supplemental pro forma financial information does not include nonrecurring costs directly attributable to the acquisition, such as certain professional fees, that would not have been incurred had the acquisition not occurred. (2) DAIKYO INCORPORATED acquisition In March, 2005, the Company entered into a capital alliance with DAIKYO, which operates condominium development and management businesses. In connection with the capital alliance, the Company acquired 133,720,000 shares of DAIKYO’s common stock, 10,000,000 shares of type-1 preferred stock, 15,000,000 shares of type-2 preferred stock and 25,000,000 shares of type-4 preferred stock. In June 2008, DAIKYO redeemed certain of type-2 preferred stock and type-4 preferred stock held by the Company. Furthermore, in March 2009, the Company subscribed 25,000,000 shares of type-7 preferred stock and acquired 23,598,144 shares of type-8 preferred stock of DAIKYO. Since entering into the capital alliance, DAIKYO has shifted its business model from one focusing on “Flow business”, such as development and sale of condominiums, to one that achieves a balance between “Flow business” and “Stock business”, such as asset management and brokerage of condominiums. As a result of the shift, DAIKYO has developed business platforms that generate more stable financial performance. On February 27, 2014, the Company exercised its conversion rights attached to all type-2 preferred stock, type-4 preferred stock, type-7 preferred stock and type-8 preferred stock of DAIKYO held by the Company. As a result, the Company acquired an additional 398,204,999 shares of common stock of DAIKYO. Following the conversion, its voting rights in DAIKYO increased from 31.7% to 64.1% and DAIKYO became a consolidated subsidiary of the Company from an equity method affiliate. There was no additional capital investment in DAIKYO in conjunction with the exercise of the acquisition rights. Transaction costs of ¥23 million are included in selling, general and administrative expenses in the Company’s consolidated statements of income for fiscal 2014. Prior to the exercise of the acquisition rights in February 2014, the Company’s interest in DAIKYO was accounted for under the equity method of accounting. As a result of this step acquisition, the Company remeasured its previously held equity interest at its fair value of ¥124,606 million, which was calculated based primarily on the market price of the common shares on an as-if converted basis adjusted for any control premium, and the Company recognized a gain of ¥58,435 million included in gains on sales of subsidiaries and affiliates and liquidation losses, net in the consolidated statements of income for fiscal 2014. The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisition had occurred as of April 1, 2012, the beginning of fiscal 2013: Millions of yen 2014 Total revenues ¥ 1,594,033 Income from Continuing Operations 203,243 Total revenues and income from continuing operations of DAIKYO included in the Company’s consolidated statements of income for fiscal 2014 were ¥56,803 million and ¥1,296 million, respectively. The unaudited supplemental pro forma financial information is based on estimates and assumptions, that the Company believes are reasonable and should not be taken as indicative of what the Company’s consolidated financial results would have been had the acquisition been completed on that date. (3) Hartford Life Insurance K.K. acquisition On July 1, 2014, the Company’s wholly owned subsidiary, ORIX Life Insurance Corporation (hereinafter, “ORIX Life Insurance”), acquired the entire outstanding shares of Hartford Life Insurance K.K. (Head office: Minato-ku, Tokyo, Japan, Business description: Life insurance business and reinsurance business, hereinafter, “HLIKK”), a subsidiary of The Hartford Financial Services Group, Inc. in accordance with the share purchase agreement executed between the Company and Hartford Life, Inc. (Head office: Simsburry, Connecticut, U.S.A.), a subsidiary of The Hartford Financial Services Group, Inc. as of April 28, 2014 in order to enhance its capital strength and improve the soundness of its management, in view of accelerating its growth. As a result, HLIKK has become a consolidated subsidiary of the Company. HLIKK has discontinued selling insurance products since June 2009. In addition, on July 1, 2015, HLIKK was merged into ORIX Life Insurance. The total cost of acquisition consideration was ¥98,355 million, of which cost, ¥97,676 million was paid in cash on July 1, 2014. In addition, an additional consideration of ¥679 million was paid in cash on December 3, 2014, as a result of the acquisition price adjustment calculated based on HLIKK’s net assets as of June 30, 2014 pursuant to the share purchase agreement. Transaction costs were ¥224 million and ¥1,217 million for fiscal 2014 and 2015, respectively, and are included in selling, general and administrative expenses in the Company’s consolidated statements of income. The Company allocated the acquisition consideration to HLIKK’s respective assets acquired and liabilities assumed, and recorded the identified assets and liabilities based on their fair values at the acquisition date by the acquisition method of accounting in accordance with ASC 805 (“Business Combinations”). The company finalized the purchase price allocation during fiscal 2016. As a result, the following table provides fair value amounts allocated to assets acquired and liabilities assumed of HLIKK. Millions of yen Fair value amounts of Cash and Cash Equivalents ¥ 69,244 Installment Loans 282 Investment in Securities 1,847,536 Trade Notes, Accounts and Other Receivable 66,340 Office Facilities 351 Other Assets 319,244 Total Assets 2,302,997 Short-Term Debt 25,000 Trade Notes, Accounts and Other Payable 3,979 Policy Liabilities and Policy Account Balances 2,125,257 Current and Deferred Income Taxes 8,413 Other Liabilities 5,911 Total Liabilities 2,168,560 Net 134,437 Fair value of Consideration transferred 98,355 Bargain purchase gain ¥ 36,082 In connection with this acquisition, the Company recognized the identifiable assets acquired and the liabilities assumed at their fair value, and recognized an excess of the fair value of the net assets acquired over the fair value of the consideration transferred as a bargain purchase gain of ¥36,082 million for the previous fiscal year, which is separately reported in the consolidated statements of income. The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisition had occurred as of April 1, 2013, the beginning of fiscal 2014: Millions of yen 2014 2015 Total revenues ¥ 1,819,007 ¥ 2,220,805 Income from Continuing Operations 215,158 259,239 Total revenues and income from continuing operations of HLIKK included in the Company’s consolidated statements of income for fiscal 2015 are ¥196,883 million and ¥4,597 million, respectively. The unaudited supplemental pro forma financial information is based on estimates and assumptions, that the Company believes are reasonable and should not be taken as indicative of what the Company’s consolidated financial results would have been had the acquisition been completed on that date. The Company elected the fair value option to account for variable annuity insurance contracts at the acquisition date; however, it cannot reasonably calculate their fair values prior to the acquisition date as if the fair value option were retrospectively applied. Thus, the unaudited supplemental pro forma financial information is prepared in accordance with ASC 944 (“Financial Services—Insurance”) without applying the fair value option accounting. (4) Other acquisitions During fiscal 2014, the Company and its subsidiaries acquired entities, other than Robeco and DAIKYO, for a total cost of the acquisition consideration of ¥62,565 million, which was paid in cash. In accordance with the finalization of purchase price allocation during fiscal 2015, the amount of goodwill was ¥39,507 million, of which ¥1,184 million is deductible for income tax calculation purposes. The amount of acquired intangible assets other than goodwill recognized in these transactions was ¥1,343 million. The acquisitions were mainly included in the Corporate Financial Services segment and the Overseas Business segment. During fiscal 2015, the Company and its subsidiaries acquired entities other than HLIKK which were individually immaterial business combinations but were considered collectively material. The total cost of the acquisitions consideration was ¥102,621 million which was paid mainly in cash. The Company allocated the acquisition consideration to the entities’ respective assets acquired and liabilities assumed, and records the identified assets, liabilities and noncontrolling interest based on their fair values at the acquisition date by the acquisition method of accounting in accordance with ASC 805 (“Business Combinations”). The fair value of noncontrolling interest is estimated based on the acquisition consideration taking into account an appraisal value using a binominal option pricing model. The Company finalized the purchase price allocation during fiscal 2016. As a result, the following table provides fair value amounts allocated to assets acquired and liabilities assumed of the acquired entities. Millions of yen Fair value amounts of Cash and Cash Equivalents ¥ 32,234 Property under Facility Operations 9,289 Trade Notes, Accounts and Other Receivable 37,359 Inventories 21,249 Office Facilities 3,250 Other Assets 158,370 Other 1,359 Total Assets 263,110 Short-Term Debt 4,140 Trade Notes, Accounts and Other Payable 33,963 Current and Deferred Income Taxes 24,457 Long-Term Debt 45,739 Other Liabilities 26,165 Total Liabilities 134,464 Noncontrolling interests 26,025 Aggregate fair value of considerations transferred ¥ 102,621 Goodwill with a value of ¥79,872 million and other intangible assets of ¥60,839 million that were identified in connection with the acquisitions are included in other assets in the Company’s consolidated balance sheet as of March 31, 2016. The goodwill is calculated as the excess of considerations transferred and the fair value of noncontrolling interest over the net assets recognized at fair value. The Company calculated the amount of goodwill based on estimates of fair value of assets acquired, liabilities assumed and noncontrolling interest. The goodwill represents the future growth of the ORIX Group from new revenue streams arising from the consolidation of the entities and synergies with the existing Company’s assets and businesses. The goodwill is not deductible for tax purposes. The goodwill and other intangible assets recorded in connection with the acquisitions are included in the Corporate Financial Services segment, the Investment and Operation segment and the Overseas Business segment. The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisitions had occurred as of April 1, 2013, the beginning of fiscal 2014: Millions of yen 2014 2015 Total revenues ¥ 1,756,437 ¥ 2,345,327 Income from Continuing Operations 197,772 255,219 Total revenues and income from continuing operations of newly consolidated subsidiaries included in the Company’s consolidated statements of income for fiscal 2015 are ¥234,030 million and ¥5,033 million, respectively. The unaudited supplemental pro forma financial information is based on estimates and assumptions, that the Company believes are reasonable and should not be taken as indicative of what the Company’s consolidated financial results would have been had the acquisition been completed on that date. During fiscal 2016, the Company and its subsidiaries acquired entities for a total cost of the acquisition consideration of ¥51,786 million, which was paid mainly in cash. Goodwill initially recognized in these transactions amounted to ¥34,319 million. The goodwill is not deductible for tax purposes. The amount of acquired intangible assets other than goodwill recognized in these transactions was ¥11,238 million. The Company reflected certain preliminary estimates with respect to the fair value of the underlying net assets of these entities in determining amounts of the goodwill. The amount of the goodwill and intangible assets other than goodwill could possibly be adjusted because certain of these acquisitions were made near the fiscal year-end and the purchase price allocations have not completed yet. The acquisitions were mainly included in the Investment and Operation segment and the Overseas Business segment. The segment in which goodwill is allocated is disclosed in Note 13 “Goodwill and Other Intangible Assets.” (5) Divestitures Gains on sales of subsidiaries and affiliates and liquidation losses, net for fiscal 2014, 2015 and 2016 amounted to ¥64,923 million, ¥20,575 million and ¥57,867 million, respectively. Gains on sales of subsidiaries and affiliates and liquidation losses, net for fiscal 2014 mainly consisted of ¥58,738 million in the Investment and Operating segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for fiscal 2015 mainly consisted of ¥18,510 million in the Overseas Business segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for fiscal 2016 mainly consisted of ¥47,994 million in the Overseas Business segment and ¥9,145 million in the Investment and Operation segment. The details of significant divestitures are as follows. During fiscal 2015, the Company sold 71.9% of the common shares of a consolidated subsidiary, STX Energy Co., Ltd. (presently GS E&R Corp., hereinafter, “STX Energy”) to a third-party. The Company retains a 25% interest in STX Energy, which became an equity method affiliate from fiscal 2015. The sale of the controlling interest resulted in a gain of ¥14,883 million, and the remeasurement of the retained interest to its fair value resulted in a gain of ¥1,329 million, both of which were included in earnings as gains on sales of subsidiaries and affiliates and liquidation losses, net during fiscal 2015. The fair value of the retained interest was remeasured based on the sale proceed adjusted for a control premium. During fiscal 2016, ORIX USA Corporation (hereinafter, “ORIX USA”), a wholly owned subsidiary of the Company, sold 14.7% of its shares of Class A common stock of Houlihan Lokey, Inc. (hereinafter, “Houlihan Lokey”), a subsidiary of ORIX USA, through the initial public offering (hereinafter, “IPO”), concurrently allotting its shares to Houlihan Lokey’s management and other employees. ORIX USA retains a 33.0% interest in Houlihan Lokey’s Class A common stock and thus Houlihan Lokey became an equity method investee during fiscal 2016. The partial sale of the ownership interest resulted in a gain of ¥10,498 million, and the remeasurement of the retained interest to its fair value due to a loss of control resulted in a gain of ¥29,087 million, both of which were included in earnings as gains on sales of subsidiaries and affiliates and liquidation losses, net for fiscal 2016. The fair value of the retained interest was remeasured based on the sale price in the IPO. During fiscal 2016, the Company and its subsidiaries sold to third parties all of the shares of certain consolidated subsidiaries. As a result of the sales, the Company and its subsidiaries recognized a gain of ¥8,739 million in gains on sales of subsidiaries and affiliates and liquidation losses, net in the consolidated statement of income for fiscal 2016. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Mar. 31, 2016 | |
Cash Flow Information | 4. Cash Flow Information Cash payments during fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Cash payments: Interest ¥ 88,385 ¥ 76,755 ¥ 77,321 Income taxes, net 32,831 83,462 31,046 Non-cash activities in fiscal 2014, 2015 and 2016 are as follows. In fiscal 2014, 2015 and 2016, real estate under operating leases of ¥50,820 million, ¥4,042 million and ¥15,963 million, respectively, were recognized with the corresponding amounts of installment loans and investment in securities being derecognized as a result of acquiring real estate collateral. In fiscal 2014, other assets of ¥8,741 million were also recognized with the corresponding amounts of installment loans and investment in securities being derecognized as a result of acquiring real estate collateral. In fiscal 2014, assets and liabilities were decreased by ¥155,918 million and ¥170,869 million, respectively, in the Company’s consolidated balance sheet due to deconsolidation of certain VIEs which had been consolidated by a subsidiary. The derecognized assets mainly consist of installment loans and investment in securities, and the derecognized liabilities mainly consist of long-term debt. Derecognition of these assets and liabilities were not included in cash flows from investing activities or financing activities in the consolidated statements of cash flows because they did not involve cash transactions. In fiscal 2015, assets and liabilities decreased by ¥7,450 million and ¥9,279 million, respectively, in the Company’s consolidated balance sheet due to deconsolidation of certain VIEs which had been consolidated by a subsidiary. The derecognized assets mainly consist of installment loans, and the derecognized liabilities mainly consist of long-term debt. Derecognition of these assets and liabilities were not included in cash flows from investing activities or financing activities in the consolidated statements of cash flows because they did not involve cash transactions. In fiscal 2016, assets and liabilities decreased by ¥7,234 million and ¥12,181 million, respectively, in the Company’s consolidated balance sheet due to deconsolidation of certain VIEs which had been consolidated by a subsidiary. The derecognized assets mainly consist of installment loans, and the derecognized liabilities mainly consist of long-term debt. Derecognition of these assets and liabilities were not included in cash flows from investing activities or financing activities in the consolidated statements of cash flows because they did not involve cash transactions. As non-cash financing activities, ¥49,944 million of convertible bonds were converted to common stocks in fiscal 2014. In addition, the Company and its subsidiaries recognized identifiable assets acquired and liabilities assumed at their fair values in connection with the acquisitions, details of which are provided in Note 3 “Acquisitions and divestitures.” |
Investment in Direct Financing
Investment in Direct Financing Leases | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Direct Financing Leases | 5. Investment in Direct Financing Leases Investment in direct financing leases at March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Total Minimum lease payments to be received ¥ 1,410,512 ¥ 1,366,454 Less: Estimated executory costs (63,456 ) (57,600 ) Minimum lease payments receivable 1,347,056 1,308,854 Estimated residual value 30,620 31,338 Initial direct costs 5,866 5,557 Unearned lease income (167,088 ) (155,613 ) ¥ 1,216,454 ¥ 1,190,136 Minimum lease payments receivable are due in periodic installments through fiscal 2036. At March 31, 2016, the amounts due in each of the next five years and thereafter are as follows: Years ending March 31, Millions of yen 2017 ¥ 441,910 2018 313,483 2019 217,794 2020 142,674 2021 76,900 Thereafter 116,093 Total ¥ 1,308,854 Included in finance revenues in the consolidated statements of income are direct financing leases revenues of ¥57,483 million, ¥61,116 million and ¥65,365 million for fiscal 2014, 2015 and 2016, respectively. Gains and losses from the disposition of direct financing lease assets, which were included in finance revenues, were not significant for fiscal 2014, 2015 and 2016. |
Investment in Operating Leases
Investment in Operating Leases | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Operating Leases | 6. Investment in Operating Leases Investment in operating leases at March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Transportation equipment ¥ 934,430 ¥ 1,076,697 Measuring and information-related equipment 236,922 239,262 Real estate 590,388 531,155 Other 19,767 21,343 1,781,507 1,868,457 Accumulated depreciation (506,801 ) (542,868 ) Net 1,274,706 1,325,589 Accrued rental receivables 21,514 23,610 ¥ 1,296,220 ¥ 1,349,199 For fiscal 2014, 2015 and 2016, gains from the disposition of real estate under operating leases included in operating lease revenues are ¥5,872 million, ¥16,338 million and ¥18,768 million, respectively, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues are ¥17,820 million, ¥18,087 million and ¥19,572 million, respectively. For fiscal 2014, where the Company and its subsidiaries have no significant continuing involvement in the operations from the real estate under operating leases which have been disposed of, the gains or losses arising from such disposition are reported as income from discontinued operations, net. Costs of operating leases include depreciation and various expenses (insurance, property tax and other). Depreciation and various expenses for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Depreciation expenses ¥ 166,234 ¥ 177,038 ¥ 184,768 Various expenses 50,334 61,119 60,301 ¥ 216,568 ¥ 238,157 ¥ 245,069 The operating lease contracts include non-cancelable lease terms that range up to 21 years at March 31, 2016. The minimum future rentals on non-cancelable operating leases due in each of the next five years and thereafter are as follows: Years ending March 31, Millions of yen 2017 ¥ 196,417 2018 138,642 2019 94,783 2020 59,821 2021 34,586 Thereafter 62,532 Total ¥ 586,781 |
Installment Loans
Installment Loans | 12 Months Ended |
Mar. 31, 2016 | |
Installment Loans | 7. Installment Loans The composition of installment loans by domicile and type of borrower at March 31, 2015 and 2016 is as follows: Millions of yen 2015 2016 Borrowers in Japan: Consumer— Housing loans ¥ 1,048,216 ¥ 1,122,088 Card loans 243,225 260,533 Other 22,866 23,466 1,314,307 1,406,087 Corporate— Real estate companies 227,568 230,001 Non-recourse loans 41,535 19,951 Commercial, industrial and other companies 401,718 365,371 670,821 615,323 Overseas: Non-recourse loans 83,233 61,260 Commercial, industrial companies and other 367,401 479,039 450,634 540,299 Purchased loans* 42,292 30,524 ¥ 2,478,054 ¥ 2,592,233 * Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 (“Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality”). Generally, installment loans are made under agreements that require the borrower to provide collateral or guarantors. At March 31, 2016, the contractual maturities of installment loans (except purchased loans) for each of the next five years and thereafter are as follows: Years ending March 31, Millions of yen 2017 ¥ 408,746 2018 287,360 2019 267,473 2020 200,873 2021 219,901 Thereafter 1,177,356 Total ¥ 2,561,709 Included in finance revenues in the consolidated statements of income is interest income on loans of ¥118,287 million, ¥110,390 million and ¥118,982 million fiscal 2014, 2015 and 2016, respectively. Certain loans, for which the Company and its subsidiaries have the intent and ability to sell to outside parties in the foreseeable future, are considered held for sale and are carried at the lower of cost or market value determined on an individual basis, except loans held for sale for which the fair value option under ASC 825 (“Financial Instruments”) was elected. A subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) on its loans held for sale originated on or after October 1, 2011. The subsidiary enters into forward sale agreements to offset the change in the fair value of loans held for sale, and the election of the fair value option allows the subsidiary to recognize both the change in the fair value of the loans and the change in the fair value of the forward sale agreements due to changes in interest rates in the same accounting period. Loans held for sale are included in installment loans, and the outstanding balances of these loans as of March 31, 2015 and 2016 were ¥15,613 million and ¥21,867 million, respectively. There were ¥15,361 million and ¥20,673 million of loans held for sale as of March 31, 2015 and 2016, respectively, measured at fair value by electing the fair value option. For loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely, ASC 310-30 (“Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality”) requires that the investor recognize the excess of the loan’s cash flows expected at acquisition over the investor’s initial investment as interest income on the level-yield basis over the remaining life of the purchased loan (“accretable yield”). ASC 310-30, however, does not prohibit placing loans on non-accrual status subsequent to acquisition, including use of the cost recovery or cash basis methods of income recognition when it is not appropriate to recognize the accretable yield, such as when the investor does not have sufficient information to reasonably estimate cash flows expected to be collected to compute the accretable yield. Purchased loans acquired by the Company and its subsidiaries are generally characterized by extended period of non-performance by the borrower, and it is difficult to reliably estimate the amount, timing, or nature of collections. Because such loans are commonly collateralized by real estate, the Company and its subsidiaries may pursue various approaches to maximizing the return from the collateral, including arrangement of borrower’s negotiated transaction of such collateral before foreclosure, the renovation, refurbishment or the sale of such loans to third parties. Accordingly, although the acquired assets may remain loans in legal form, collections on these loans often do not reflect the normal historical experience of collecting delinquent accounts, and the need to tailor individual collateral-realization strategies often makes it difficult to reliably estimate the amount, timing, or nature of collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans. The total carrying amounts of these purchased loans were ¥42,292 million and ¥30,524 million as of March 31, 2015 and 2016, respectively, and the fair value at the acquisition date of purchased loans acquired during fiscal 2015 and 2016 were ¥10,131 million and ¥7,799 million, respectively. When it is probable that the Company and its subsidiaries will be unable to collect all book value, the Company and its subsidiaries consider purchased loans impaired, and a valuation allowance for the excess amount of the book value over the estimated recoverable amount of the loans is provided. For most cases, the recoverable amount is estimated based on the collateral value. Purchased loans for which valuation allowances were provided amounted to ¥15,216 million and ¥11,013 million as of March 31, 2015 and 2016, respectively. Changes in the allowance for uncollectible accounts relating to the purchased loans for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Beginning balance ¥ 15,316 ¥ 14,148 ¥ 10,717 Provision (Reversal) 2,532 (690 ) (1,308 ) Charge-offs (3,921 ) (3,390 ) (1,236 ) Recoveries 111 432 232 Other* 110 217 (172 ) Ending balance ¥ 14,148 ¥ 10,717 ¥ 8,233 * Other includes foreign currency translation adjustments. |
Credit Quality of Financing Rec
Credit Quality of Financing Receivables and the Allowance for Credit Losses | 12 Months Ended |
Mar. 31, 2016 | |
Credit Quality of Financing Receivables and the Allowance for Credit Losses | 8. Credit Quality of Financing Receivables and the Allowance for Credit Losses The Company and its subsidiaries apply ASC 310 (“Receivables”), which requires an entity to provide the following information disaggregated by portfolio segment and class of financing receivable. Allowance for credit losses—by portfolio segment Credit quality of financing receivables—by class • Impaired loans • Credit quality indicators • Non-accrual and past-due financing receivables Information about troubled debt restructurings—by class A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. The Company and its subsidiaries classify our portfolio segments by instruments of loans and direct financing leases. Classes of financing receivables are determined based on the initial measurement attribute, risk characteristics of the financing receivables and the method for monitoring and assessing obligors’ credit risk, and are defined as the level of detail necessary for a financial statement user to understand the risks inherent in the financing receivables. Classes of financing receivables generally are a disaggregation of a portfolio segment, and the Company and its subsidiaries disaggregate our portfolio segments into classes by regions, instruments or industries of our debtors. The following table provides information about the allowance for credit losses for fiscal 2014, 2015 and 2016: March 31, 2014 Millions of yen Loans Direct financing leases Total Consumer Corporate Purchased loans*1 Non-recourse loans Other Allowance for Credit Losses: Beginning balance ¥ 14,526 ¥ 16,717 ¥ 41,875 ¥ 15,316 ¥ 15,830 ¥ 104,264 Provision 4,437 2,381 837 2,532 3,651 13,838 Charge-offs (5,786 ) (3,590 ) (11,807 ) (3,921 ) (4,421 ) (29,525 ) Recoveries 290 140 798 111 70 1,409 Other*2 6 (6,601 ) 1,041 110 254 (5,190 ) Ending balance ¥ 13,473 ¥ 9,047 ¥ 32,744 ¥ 14,148 ¥ 15,384 ¥ 84,796 Individually evaluated for impairment 3,279 8,534 25,054 12,288 0 49,155 Not individually evaluated for impairment 10,194 513 7,690 1,860 15,384 35,641 Financing receivables: Ending balance ¥ 1,236,414 ¥ 174,204 ¥ 837,329 ¥ 53,341 ¥ 1,094,073 ¥ 3,395,361 Individually evaluated for impairment 11,796 24,902 76,051 23,075 0 135,824 Not individually evaluated for impairment 1,224,618 149,302 761,278 30,266 1,094,073 3,259,537 March 31, 2015 Millions of yen Loans Direct financing leases Total Consumer Corporate Purchased loans*1 Non-recourse loans Other Allowance for Credit Losses: Beginning balance ¥ 13,473 ¥ 9,047 ¥ 32,744 ¥ 14,148 ¥ 15,384 ¥ 84,796 Provision (Reversal) 5,456 (1,080 ) 4,800 (690 ) 3,145 11,631 Charge-offs (7,189 ) (53 ) (13,247 ) (3,390 ) (3,832 ) (27,711 ) Recoveries 835 0 593 432 58 1,918 Other*3 10 234 782 217 449 1,692 Ending balance ¥ 12,585 ¥ 8,148 ¥ 25,672 ¥ 10,717 ¥ 15,204 ¥ 72,326 Individually evaluated for impairment 2,606 7,751 15,541 8,481 0 34,379 Not individually evaluated for impairment 9,979 397 10,131 2,236 15,204 37,947 Financing receivables: Ending balance ¥ 1,330,353 ¥ 124,768 ¥ 965,028 ¥ 42,292 ¥ 1,216,454 ¥ 3,678,895 Individually evaluated for impairment 11,993 22,032 51,793 15,216 0 101,034 Not individually evaluated for impairment 1,318,360 102,736 913,235 27,076 1,216,454 3,577,861 March 31, 2016 Millions of yen Loans Direct financing leases Total Consumer Corporate Purchased loans*1 Non-recourse loans Other Allowance for Credit Losses: Beginning Balance ¥ 12,585 ¥ 8,148 ¥ 25,672 ¥ 10,717 ¥ 15,204 ¥ 72,326 Provision (Reversal) 7,367 (491 ) 3,362 (1,308 ) 2,787 11,717 Charge-offs (7,572 ) (504 ) (5,298 ) (1,236 ) (4,075 ) (18,685 ) Recoveries 543 0 393 232 13 1,181 Other*4 344 (5,353 ) (738 ) (172 ) (549 ) (6,468 ) Ending Balance ¥ 13,267 ¥ 1,800 ¥ 23,391 ¥ 8,233 ¥ 13,380 ¥ 60,071 Individually Evaluated for Impairment 2,770 1,323 12,552 5,888 0 22,533 Not Individually Evaluated for Impairment 10,497 477 10,839 2,345 13,380 37,538 Financing receivables: Ending Balance ¥ 1,461,982 ¥ 81,211 ¥ 996,649 ¥ 30,524 ¥ 1,190,136 ¥ 3,760,502 Individually Evaluated for Impairment 14,101 11,057 37,422 11,013 0 73,593 Not Individually Evaluated for Impairment 1,447,881 70,154 959,227 19,511 1,190,136 3,686,909 *1 Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 (“Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality”). *2 Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥6,562 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. *3 Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. *4 Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥5,265 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. *5 Loans held for sale are not included in the table above. In developing the allowance for credit losses, the Company and its subsidiaries consider, among other things, the following factors: • business characteristics and financial conditions of obligors; • current economic conditions and trends; • prior charge-off experience; • current delinquencies and delinquency trends; and • value of underlying collateral and guarantees. The Company and its subsidiaries individually develop the allowance for credit losses for impaired loans. For non-impaired loans, including loans that are not individually evaluated for impairment, and direct financing leases, the Company and its subsidiaries evaluate prior charge-off experience as segmented by debtor’s industry and the purpose of the loans and develop the allowance for credit losses based on such prior charge-off experience as well as current economic conditions. In common with all portfolio segments, a deterioration of debtors’ condition may increase the risk of delay in payments of principal and interest. For loans to consumer borrowers, the amount of the allowance for credit losses is changed by the variation of individual debtors’ creditworthiness and value of underlying collateral and guarantees, and the prior charge-off experience. For loans to corporate other borrowers and direct financing leases, the amount of the allowance for credit losses is changed by current economic conditions and trends, the value of underlying collateral and guarantees, and the prior charge-off experience in addition to the debtors’ creditworthiness. The decline of the value of underlying collateral and guarantees may increase the risk of inability to collect from the loans and direct financing leases. Particularly for non-recourse loans for which cash flow from real estate is the source of repayment, their collection depends on the real estate collateral value, which may decline as a result of decrease in liquidity of the real estate market, rise in vacancy rate of rental properties, fall in rents and other factors. These risks may change the amount of the allowance for credit losses. For purchased loans, their collection may decrease due to a decline in the real estate collateral value and debtors’ creditworthiness. Thus, these risks may change the amount of the allowance for credit losses. In common with all portfolio segments, the Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal, mainly based upon an evaluation of the relevant debtors’ creditworthiness and the liquidation status of collateral. The following table provides information about the impaired loans as of March 31, 2015 and 2016: March 31, 2015 Millions of Yen Portfolio segment Class Loans Individually Evaluated for Impairment Unpaid Principal Balance Related Allowance With no related allowance recorded*1: ¥ 18,404 ¥ 18,359 ¥ 0 Consumer borrowers 450 407 0 Housing loans 450 407 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 17,954 17,952 0 Non-recourse loans Japan 4,975 4,975 0 The Americas 0 0 0 Other Real estate companies 5,167 5,167 0 Entertainment companies 892 892 0 Other 6,920 6,918 0 Purchased loans 0 0 0 With an allowance recorded*2: 82,630 79,418 34,379 Consumer borrowers 11,543 9,737 2,606 Housing loans 4,907 3,118 1,689 Card loans 3,741 3,731 566 Other 2,895 2,888 351 Corporate borrowers 55,871 54,465 23,292 Non-recourse loans Japan 310 310 64 The Americas 16,747 16,747 7,687 Other Real estate companies 15,940 15,708 5,099 Entertainment companies 3,580 3,548 1,429 Other 19,294 18,152 9,013 Purchased loans 15,216 15,216 8,481 Total: ¥ 101,034 ¥ 97,777 ¥ 34,379 Consumer borrowers 11,993 10,144 2,606 Housing loans 5,357 3,525 1,689 Card loans 3,741 3,731 566 Other 2,895 2,888 351 Corporate borrowers 73,825 72,417 23,292 Non-recourse loans Japan 5,285 5,285 64 The Americas 16,747 16,747 7,687 Other Real estate companies 21,107 20,875 5,099 Entertainment companies 4,472 4,440 1,429 Other 26,214 25,070 9,013 Purchased loans 15,216 15,216 8,481 March 31, 2016 Millions of yen Portfolio segment Class Loans Individually Evaluated for Impairment Unpaid Principal Balance Related Allowance With no related allowance recorded*1: ¥ 14,601 ¥ 14,498 ¥ 0 Consumer borrowers 931 852 0 Housing loans 931 852 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 13,670 13,646 0 Non-recourse loans Japan 4,776 4,776 0 The Americas 0 0 0 Other Real estate companies 0 0 0 Entertainment companies 211 211 0 Other 8,683 8,659 0 Purchased loans 0 0 0 With an allowance recorded*2: 58,992 57,758 22,533 Consumer borrowers 13,170 12,628 2,770 Housing loans 3,580 3,058 1,401 Card loans 4,123 4,113 590 Other 5,467 5,457 779 Corporate borrowers 34,809 34,117 13,875 Non-recourse loans Japan 292 292 72 The Americas 5,989 5,988 1,251 Other Real estate companies 8,612 8,480 2,140 Entertainment companies 2,218 2,209 840 Other 17,698 17,148 9,572 Purchased loans 11,013 11,013 5,888 Total: ¥ 73,593 ¥ 72,256 ¥ 22,533 Consumer borrowers 14,101 13,480 2,770 Housing loans 4,511 3,910 1,401 Card loans 4,123 4,113 590 Other 5,467 5,457 779 Corporate borrowers 48,479 47,763 13,875 Non-recourse loans Japan 5,068 5,068 72 The Americas 5,989 5,988 1,251 Other Real estate companies 8,612 8,480 2,140 Entertainment companies 2,429 2,420 840 Other 26,381 25,807 9,572 Purchased loans 11,013 11,013 5,888 *1 “With no related allowance recorded” represents impaired loans with no allowance for credit losses as all amounts are considered to be collectible. *2 “With an allowance recorded” represents impaired loans with the allowance for credit losses as all or a part of the amounts are not considered to be collectible. The Company and its subsidiaries recognize installment loans other than purchased loans and loans to consumer borrowers as impaired loans when principal or interest is past-due 90 days or more, or it is probable that the Company and its subsidiaries will be unable to collect all amounts due according to the contractual terms of the loan agreements due to various debtor conditions, including insolvency filings, suspension of bank transactions, dishonored bills and deterioration of businesses. For non-recourse loans, in addition to these conditions, the Company and its subsidiaries perform an impairment review using financial covenants, acceleration clauses, loan-to-value ratios, and other relevant available information. For purchased loans, the Company and its subsidiaries recognize them as impaired loans when it is probable that the Company and its subsidiaries will be unable to collect book values of the remaining investment due to factors such as a decline in the real estate collateral value and debtors’ creditworthiness since the acquisition of these loans. The Company and its subsidiaries consider that loans to consumer borrowers, including housing loans, card loans and other, are impaired when terms of these loans are modified as troubled debt restructurings. Interest payments received on impaired loans other than purchased loans are recorded as interest income unless the collection of the remaining investment is doubtful at which time payments received are recorded as reductions of principal. For purchased loans, although the acquired assets may remain loans in legal form, collections on these loans often do not reflect the normal historical experience of collecting delinquent accounts, and the need to tailor individual collateral-realization strategies often makes it difficult to reliably estimate the amount, timing, or nature of collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans regardless of whether impairment is recognized or not. In common with all classes, impaired loans are individually evaluated for a valuation allowance based on the present value of expected future cash flows, the loan’s observable market price or the fair value of the collateral securing the loans if the loans are collateral-dependent. For non-recourse loans, in principle, the estimated collectible amount is determined based on the fair value of the collateral securing the loans as they are collateral-dependent. Further for certain non-recourse loans, the estimated collectible amount is determined based on the present value of expected future cash flows. The fair value of the real estate collateral securing the loans is determined using appraisals prepared by independent third-party appraisers or our own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. We generally obtain a new appraisal once a fiscal year. In addition, we periodically monitor circumstances of the real estate collateral and then obtain a new appraisal in situations involving a significant change in economic and/or physical conditions which may materially affect its fair value. For impaired purchased loans, the Company and its subsidiaries develop the allowance for credit losses based on the difference between the book value and the estimated collectible amount of such loans. The following table provides information about the average recorded investments in impaired loans and interest income on impaired loans for fiscal 2014, 2015 and 2016: March 31, 2014 Millions of yen Portfolio segment Class Average Recorded Investments in Impaired Loans* Interest Income on Impaired Loans Interest on Impaired Loans Collected in Cash Consumer borrowers ¥ 11,445 ¥ 295 ¥ 230 Housing loans 8,004 231 178 Card loans 2,453 38 31 Other 988 26 21 Corporate borrowers 134,927 4,146 3,449 Non-recourse loans Japan 15,897 234 219 The Americas 23,119 667 667 Other Real estate companies 38,733 1,154 990 Entertainment companies 10,277 509 343 Other 46,901 1,582 1,230 Purchased loans 25,588 0 0 Total ¥ 171,960 ¥ 4,441 ¥ 3,679 March 31, 2015 Millions of yen Portfolio segment Class Average Recorded Investments in Impaired Loans* Interest Income on Impaired Loans Interest on Impaired Loans Collected in Cash Consumer borrowers ¥ 11,822 ¥ 376 ¥ 273 Housing loans 6,286 268 180 Card loans 3,368 60 51 Other 2,168 48 42 Corporate borrowers 82,986 2,005 1,648 Non-recourse loans Japan 5,975 10 10 The Americas 15,657 502 502 Other Real estate companies 22,009 417 355 Entertainment companies 5,951 202 149 Other 33,394 874 632 Purchased loans 18,736 0 0 Total ¥ 113,544 ¥ 2,381 ¥ 1,921 March 31, 2016 Millions of yen Portfolio segment Class Average Recorded Investments in Impaired Loans* Interest Income on Impaired Loans Interest on Impaired Loans Collected in Cash Consumer borrowers ¥ 13,215 ¥ 317 ¥ 269 Housing loans 5,090 176 148 Card loans 3,970 69 59 Other 4,155 72 62 Corporate borrowers 58,138 974 947 Non-recourse loans Japan 5,117 7 7 The Americas 11,759 275 275 Other Real estate companies 13,843 210 198 Entertainment companies 3,505 102 99 Other 23,914 380 368 Purchased loans 12,864 0 0 Total ¥ 84,217 ¥ 1,291 ¥ 1,216 * Average balances are calculated on the basis of fiscal beginning and quarter-end balances. The following table provides information about the credit quality indicators as of March 31, 2015 and 2016: March 31, 2015 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer borrowers ¥ 1,311,725 ¥ 11,993 ¥ 6,635 ¥ 18,628 ¥ 1,330,353 Housing loans 1,050,531 5,357 3,898 9,255 1,059,786 Card loans 238,660 3,741 824 4,565 243,225 Other 22,534 2,895 1,913 4,808 27,342 Corporate borrowers 1,015,971 73,825 0 73,825 1,089,796 Non-recourse loans Japan 36,250 5,285 0 5,285 41,535 The Americas 66,486 16,747 0 16,747 83,233 Other Real estate companies 235,493 21,107 0 21,107 256,600 Entertainment companies 101,701 4,472 0 4,472 106,173 Other 576,041 26,214 0 26,214 602,255 Purchased loans 27,076 15,216 0 15,216 42,292 Direct financing leases 1,201,081 0 15,373 15,373 1,216,454 Japan 819,592 0 10,293 10,293 829,885 Overseas 381,489 0 5,080 5,080 386,569 Total ¥ 3,555,853 ¥ 101,034 ¥ 22,008 ¥ 123,042 ¥ 3,678,895 March 31, 2016 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer ¥ 1,439,703 ¥ 14,101 ¥ 8,178 ¥ 22,279 ¥ 1,461,982 Housing loans 1,131,276 4,511 2,267 6,778 1,138,054 Card loans 255,753 4,123 657 4,780 260,533 Other 52,674 5,467 5,254 10,721 63,395 Corporate 1,029,381 48,479 0 48,479 1,077,860 Non-recourse Japan 14,883 5,068 0 5,068 19,951 The Americas 55,271 5,989 0 5,989 61,260 Other Real estate companies 261,558 8,612 0 8,612 270,170 Entertainment companies 98,852 2,429 0 2,429 101,281 Other 598,817 26,381 0 26,381 625,198 Purchased loans 19,511 11,013 0 11,013 30,524 Direct financing leases 1,177,580 0 12,556 12,556 1,190,136 Japan 831,207 0 7,918 7,918 839,125 Overseas 346,373 0 4,638 4,638 351,011 Total ¥ 3,666,175 ¥ 73,593 ¥ 20,734 ¥ 94,327 ¥ 3,760,502 Note: Loans held for sale are not included in the table above. In common with all classes, the Company and its subsidiaries monitor the credit quality indicators as performing and non-performing assets. The category of non-performing assets includes financing receivables for debtors who have filed for insolvency proceedings, whose bank transactions are suspended, whose bills are dishonored, whose businesses have deteriorated, whose repayment is past-due 90 days or more, financing receivables modified as troubled debt restructurings, and performing assets include all other financing receivables. Regarding purchased loans, they are classified as non-performing assets when considered impaired, while all the other loans are included in the category of performing assets. Out of non-performing assets, the Company and its subsidiaries consider smaller balance homogeneous loans, including housing loans, card loans and other, which are not restructured and direct financing leases, as 90 days or more past-due financing receivables not individually evaluated for impairment, and consider the others as loans individually evaluated for impairment. After the Company and its subsidiaries have set aside provision for those non-performing assets, the Company and its subsidiaries continue to monitor at least on a quarterly basis the quality of any underlying collateral, the status of management of the debtors and other important factors in order to report to management and develop additional provision as necessary. The following table provides information about the non-accrual and past-due financing receivables as of March 31, 2015 and 2016: March 31, 2015 Millions of yen Past-Due Financing Receivables Portfolio segment Class 30-89 Days Past-Due 90 Days or More Past-Due Total Past-Due Total Financing Receivables Non- Accrual Consumer borrowers ¥ 3,229 ¥ 9,825 ¥ 13,054 ¥ 1,330,353 ¥ 9,825 Housing loans 1,672 6,503 8,175 1,059,786 6,503 Card loans 704 1,202 1,906 243,225 1,202 Other 853 2,120 2,973 27,342 2,120 Corporate borrowers 7,991 33,694 41,685 1,089,796 43,697 Non-recourse loans Japan 0 4,975 4,975 41,535 4,975 The Americas 6,639 9,846 16,485 83,233 14,716 Other Real estate companies 37 8,366 8,403 256,600 8,730 Entertainment companies 0 571 571 106,173 571 Other 1,315 9,936 11,251 602,255 14,705 Direct financing leases 6,142 15,373 21,515 1,216,454 15,373 Japan 1,877 10,293 12,170 829,885 10,293 Overseas 4,265 5,080 9,345 386,569 5,080 Total ¥ 17,362 ¥ 58,892 ¥ 76,254 ¥ 3,636,603 ¥ 68,895 March 31, 2016 Millions of yen Past-due financing receivables Portfolio segment Class 30-89 Days Past-Due 90 Days or More Past-Due Total Past-Due Total Financing Receivables Non- accrual Consumer borrowers ¥ 5,002 ¥ 11,348 ¥ 16,350 ¥ 1,461,982 ¥ 11,348 Housing loans 2,283 4,435 6,718 1,138,054 4,435 Card loans 503 1,103 1,606 260,533 1,103 Other 2,216 5,810 8,026 63,395 5,810 Corporate borrowers 3,018 18,944 21,962 1,077,860 31,464 Non-recourse loans Japan 0 4,776 4,776 19,951 4,776 The Americas 2,370 400 2,770 61,260 5,924 Other Real estate companies 44 2,727 2,771 270,170 2,727 Entertainment companies 0 145 145 101,281 145 Other 604 10,896 11,500 625,198 17,892 Direct financing leases 6,457 12,556 19,013 1,190,136 12,556 Japan 500 7,918 8,418 839,125 7,918 Overseas 5,957 4,638 10,595 351,011 4,638 Total ¥ 14,477 ¥ 42,848 ¥ 57,325 ¥ 3,729,978 ¥ 55,368 Note: Loans held for sale and purchased loans are not included in the table above. In common with all classes, the Company and its subsidiaries consider financing receivables as past-due financing receivables when principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms. The Company and its subsidiaries suspend accruing revenues on past-due installment loans and direct financing leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as the individual debtor’s creditworthiness, historical loss experience, current delinquencies and delinquency trends. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return to accrual status non-accrual loans and lease receivables when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and lease receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtor’s creditworthiness, such as the debtor’s business characteristics and financial conditions as well as relevant economic conditions and trends. The following table provides information about troubled debt restructurings of financing receivables that occurred during fiscal 2014, 2015 and 2016: March 31, 2014 Millions of yen Portfolio segment Class Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Consumer borrowers ¥ 3,899 ¥ 2,586 Housing loans 724 334 Card loans 1,898 1,391 Other 1,277 861 Corporate borrowers 14,135 11,097 Non-recourse loans Japan 4,745 2,608 The Americas 4,809 4,723 Other Real estate companies 328 276 Entertainment companies 779 509 Other 3,474 2,981 Total ¥ 18,034 ¥ 13,683 March 31, 2015 Millions of yen Portfolio segment Class Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Consumer borrowers ¥ 5,504 ¥ 4,061 Housing loans 483 263 Card loans 2,566 2,018 Other 2,455 1,780 Corporate borrowers 946 891 Non-recourse loans The Americas 145 145 Other Other 801 746 Total ¥ 6,450 ¥ 4,952 March 31, 2016 Millions of yen Portfolio segment Class Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Consumer borrowers ¥6,436 ¥4,890 Housing loans 71 23 Card loans 2,405 1,910 Other 3,960 2,957 Corporate borrowers 584 582 Non-recourse loans The Americas 575 575 Other Other 9 7 Total ¥7,020 ¥5,472 A troubled debt restructuring is defined as a restructuring of a financing receivable in which the creditor grants a concession to the debtor for economic or other reasons related to the debtor’s financial difficulties. The Company and its subsidiaries offer various types of concessions to our debtors to protect as much of our investment as possible in troubled debt restructurings. For the debtors of non-recourse loans, the Company and its subsidiaries offer concessions including an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. For the debtors of all financing receivables other than non-recourse loans, the Company and its subsidiaries offer concessions such as a reduction of the loan principal, a temporary reduction in the interest payments, or an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. In addition, the Company and its subsidiaries may acquire collateral assets from the debtors in troubled debt restructurings to satisfy fully or partially the loan principal or past due interest. In common with all portfolio segments, financing receivables modified as troubled debt restructurings are recognized as impaired and are individually evaluated for a valuation allowance. In most cases, these financing receivables have already been considered impaired and individually evaluated for allowance for credit losses prior to the restructurings. However, as a result of the restructuring, the Company and its subsidiaries may recognize additional provision for the restructured receivables. The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2014 and for which there was a payment default during fiscal 2014: March 31, 2014 Millions of yen Portfolio segment Class Recorded Investment Consumer borrowers ¥ 57 Housing loans 18 Card loans 31 Other 8 Corporate borrowers 565 Non-recourse loans The Americas 497 Other Real estate companies 42 Other 26 Total ¥ 622 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2015 and for which there was a payment default during fiscal 2015: March 31, 2015 Millions of yen Portfolio segment Class Recorded Investment Consumer borrowers ¥ 122 Housing loans 27 Card loans 62 Other 33 Corporate borrowers 330 Other Other 330 Total ¥ 452 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2016 and for which there was a payment default during fiscal 2016: March 31, 2016 Millions of yen Portfolio segment Class Recorded Investment Consumer borrowers ¥ 68 Card loans 45 Other 23 Total ¥ 68 The Company and its subsidiaries consider financing receivables whose terms have been modified in a restructuring as defaulted receivables when principal or interest is past-due 90 days or more in accordance with the modified terms. In common with all portfolio segments, the Company and its subsidiaries suspend accruing revenues and may recognize additional provision as necessary for the defaulted financing receivables. In January 2014, Accounting Standards Update 2014-04(“Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure” —ASC 310-40(“Receivables-Troubled Debt Restructurings by Creditors”)) was issued. This Update clarifies when a creditor is considered to have received physical possession resulting from an in substance repossession or foreclosure or residential real estate property collateralizing a consumer mortgage loan. Additionally, this Update requires an entity to disclose the amount of foreclosed residential real estate property and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. The Company and its subsidiaries adopted this Update on April 1, 2015. As of March 31, 2016, there was no amount of foreclosed residential real estate property based on this Update. The carrying amounts of installment loans in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure is ¥601 million as of March 31, 2016. |
Investment in Securities
Investment in Securities | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Securities | 9. Investment in Securities Investment in securities as of March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Trading securities* ¥ 1,190,131 ¥ 725,821 Available-for-sale securities 1,356,840 1,347,890 Held-to-maturity securities 115,599 114,858 Other securities 183,687 156,223 Total ¥ 2,846,257 ¥ 2,344,792 * The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥1,165,347 million and ¥704,313 million as of March 31, 2015 and March 31, 2016, respectively. Gains and losses realized from the sale of trading securities and net unrealized holding gains (losses) on trading securities are included in net gains on investment securities and life insurance related investment income. For further information, see Note 22 “Gains on investment securities and dividends” and Note 23 “Life Insurance Operations.” For fiscal 2014, 2015 and 2016, net unrealized holding gains (losses) on trading securities were losses of ¥3,083 million, gains of ¥137,704 million and losses of ¥84,678 million, respectively. During fiscal 2014, 2015 and 2016, the Company and its subsidiaries sold available-for-sale securities for aggregate proceeds of ¥318,697 million, ¥511,868 million and ¥464,232 million, respectively, resulting in gross realized gains of ¥14,517 million, ¥32,206 million and ¥32,593 million, respectively, and gross realized losses of ¥368 million, ¥129 million and ¥467 million, respectively. The cost of the securities sold was based on the average cost of each such security held at the time of the sale. During fiscal 2014, 2015 and 2016, the Company and its subsidiaries charged losses on securities of ¥7,989 million, ¥8,997 million and ¥4,515 million, respectively, to the accompanying consolidated statements of income for declines in market value of securities where the decline was considered as other than temporary. Other securities consist mainly of non-marketable equity securities, preferred capital shares carried at cost and investment funds carried at an amount that reflects equity income and loss based on the investor’s share. The aggregate carrying amount of other securities accounted for under the cost method totaled ¥43,718 million and ¥27,349 million as of March 31, 2015 and 2016, respectively. Investments with an aggregate cost of ¥42,838 million and ¥27,125 million, respectively, were not evaluated for impairment because the Company and its subsidiaries did not identify any events or changes in circumstances that might have had a significant adverse effect on the fair value of those investments and it was not practicable to estimate the fair value of the investments. A certain subsidiary that has newly become a consolidated subsidiary of the company during fiscal 2016 elected the fair value option under ASC 825 (“Financial Instruments”) for investments in foreign government bond securities included in available-for-sale securities, which as of March 31, 2016, was fair valued at ¥988 million. A certain subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) for certain investments in equity securities included in available-for-sale securities, which as of March 31, 2015 and 2016, were fair valued at ¥8,168 million and ¥16,227 million, respectively. Certain subsidiaries elected the fair value option under ASC 825 (“Financial Instruments”) for certain investments in a trust and investment funds included in other securities whose net asset values do not represent the fair value of investments due to the illiquid nature of these investments. The subsidiaries manage these investments on a fair value basis and the election of the fair value option enables the subsidiaries to reflect more appropriate assumptions to measure the fair value of these investments. As of March 31, 2015 and 2016, the fair values of these investments were ¥8,723 million and ¥10,152 million, respectively. The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale securities and held-to-maturity securities in each major security type as of March 31, 2015 and 2016 are as follows: March 31, 2015 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 517,500 ¥ 10,127 ¥ (35 ) ¥ 527,592 Japanese prefectural and foreign municipal bond securities 155,943 5,644 (110 ) 161,477 Corporate debt securities 283,859 3,891 (137 ) 287,613 Specified bonds issued by SPEs in Japan 7,257 54 (31 ) 7,280 CMBS and RMBS in the Americas 67,049 3,073 (146 ) 69,976 Other asset-backed securities and debt securities 147,308 1,286 (624 ) 147,970 Equity securities 104,096 52,568 (1,732 ) 154,932 1,283,012 76,643 (2,815 ) 1,356,840 Held-to-maturity: Japanese government bond securities and other 115,599 14,490 (112 ) 129,977 ¥ 1,398,611 ¥ 91,133 ¥ (2,927 ) ¥ 1,486,817 March 31, 2016 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 464,854 ¥ 32,501 ¥ 0 ¥ 497,355 Japanese prefectural and foreign municipal bond securities 165,465 4,106 (37 ) 169,534 Corporate debt securities 403,349 7,443 (13 ) 410,779 Specified bonds issued by SPEs in Japan 3,422 39 0 3,461 CMBS and RMBS in the Americas 97,692 1,906 (2,412 ) 97,186 Other asset-backed securities and debt securities 63,079 1,744 (6,593 ) 58,230 Equity securities 85,452 33,492 (7,599 ) 111,345 1,283,313 81,231 (16,654 ) 1,347,890 Held-to-maturity: Japanese government bond securities and other 114,858 30,662 0 145,520 ¥ 1,398,171 ¥ 111,893 ¥ (16,654 ) ¥ 1,493,410 The following table provides information about available-for-sale securities and held-to-maturity securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2015 and 2016, respectively: March 31, 2015 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese and foreign government bond securities ¥ 5,407 ¥ (35 ) ¥ 0 ¥ 0 ¥ 5,407 ¥ (35 ) Japanese prefectural and foreign municipal bond securities 44,782 (110 ) 0 0 44,782 (110 ) Corporate debt securities 81,108 (58 ) 6,363 (79 ) 87,471 (137 ) Specified bonds issued by SPEs in Japan 0 0 1,269 (31 ) 1,269 (31 ) CMBS and RMBS in the Americas 9,754 (31 ) 506 (115 ) 10,260 (146 ) Other asset-backed securities and debt securities 10,950 (304 ) 8,127 (320 ) 19,077 (624 ) Equity securities 6,640 (1,723 ) 585 (9 ) 7,225 (1,732 ) 158,641 (2,261 ) 16,850 (554 ) 175,491 (2,815 ) Held-to-maturity: Japanese government bond securities and other 4,889 (112 ) 0 0 4,889 (112 ) ¥ 163,530 ¥ (2,373 ) ¥ 16,850 ¥ (554 ) ¥ 180,380 ¥ (2,927 ) March 31, 2016 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese prefectural and foreign municipal bond securities ¥ 14,821 ¥ (30 ) ¥ 554 ¥ (7 ) ¥ 15,375 ¥ (37 ) Corporate debt securities 32,969 (13 ) 1,802 0 34,771 (13 ) CMBS and RMBS in the Americas 55,226 (2,234 ) 5,002 (178 ) 60,228 (2,412 ) Other asset-backed securities and debt securities 14,220 (1,857 ) 18,846 (4,736 ) 33,066 (6,593 ) Equity securities 17,040 (7,550 ) 594 (49 ) 17,634 (7,599 ) ¥ 134,276 ¥ (11,684 ) ¥ 26,798 ¥ (4,970 ) ¥ 161,074 ¥ (16,654 ) The number of investment securities that were in an unrealized loss position as of March 31, 2015 and 2016 were 197 and 259, respectively. The gross unrealized losses on these securities are attributable to a number of factors including changes in interest rates, credit spreads and market trends. For debt securities, in the case of the fair value being below the amortized cost, the Company and its subsidiaries consider whether those securities are other-than-temporarily impaired using all available information about their collectability. The Company and its subsidiaries do not consider a debt security to be other-than-temporarily impaired if (1) the Company and its subsidiaries do not intend to sell the debt security, (2) it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. On the other hand, the Company and its subsidiaries consider a debt security to be other-than-temporarily impaired if any of the above mentioned three conditions are not met. Debt securities with unrealized loss position mainly include CMBS and RMBS in the Americas and other asset-backed securities. The unrealized loss associated with CMBS and RMBS in the Americas and other asset-backed securities is primarily caused by changes in credit spreads and interest rates. In order to determine whether a credit loss exists, the Company and its subsidiaries estimate the present value of anticipated cash flows, discounted at the current yield to accrete the security. The cash flows are estimated based on a number of assumptions such as default rate and prepayment speed, as well as seniority of the security. Then, a credit loss is assessed by comparing the present value of the expected cash flows to the security’s amortized cost basis. Based on that assessment, the Company and its subsidiaries expect to recover the entire amortized cost basis and no credit impairment was identified. Because the Company and its subsidiaries do not intend to sell the investments and it is not more likely than not that the Company and its subsidiaries will be required to sell the investments before recovery of their amortized cost basis, the Company and its subsidiaries do not consider these investments to be other-than-temporarily impaired as of March 31, 2016. For equity securities with unrealized losses, the Company and its subsidiaries consider various factors to determine whether the decline is other-than-temporary, including the length of time and the extent to which the fair value has been less than the carrying value and the issuer’s specific economic conditions as well as the ability and intent to hold these securities for a period of time sufficient to recover the securities’ carrying amounts. Based on our ongoing monitoring process, the Company and its subsidiaries do not consider these investments to be other-than-temporarily impaired as of March 31, 2016. The total other-than-temporary impairment with an offset for the amount of the total other-than-temporary impairment recognized in other comprehensive income (loss) for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Total other-than-temporary impairment losses ¥ 7,992 ¥ 9,077 ¥ 4,517 Portion of loss recognized in other comprehensive income (before taxes) (3 ) (80 ) (2 ) Net impairment losses recognized in earnings ¥ 7,989 ¥ 8,997 ¥ 4,515 Total other-than-temporary impairment losses for fiscal 2014 mainly related to equity securities and other securities. Total other-than-temporary impairment losses for fiscal 2015 and 2016 related to equity securities, debt securities and other securities. During fiscal 2014, other-than-temporary impairment losses related to debt securities are recognized mainly on certain mortgage-backed securities. During fiscal 2015 and 2016, other-than-temporary impairment losses related to debt securities are recognized mainly on certain other asset-backed securities. Mortgage-backed securities have experienced credit losses due to a decrease in cash flows attributable to significant default and bankruptcies on the underlying loans. Other asset-backed securities have experienced credit losses due to a decline in value of the underlying assets. Because the Company and its subsidiaries do not intend to sell the investments and it is not more likely than not that the Company and its subsidiaries will be required to sell the investments before recovery of their amortized cost basis, the credit loss component is recognized in earnings, and the non-credit loss component is recognized in other comprehensive income (loss), net of applicable income taxes. The credit loss assessment is made by comparing the securities’ amortized cost basis with the portion of the estimated fair value of the underlying assets available to repay the specified bonds, or with the present value of the expected cash flows from the mortgage-backed securities, that were estimated based on a number of assumptions such as seniority of the security. Roll-forwards of the amount related to credit losses on other-than-temporarily impaired debt securities recognized in earnings according to ASC 320-10-35-34 (“Investments—Debt and Equity Securities—Recognition of Other-Than-Temporary Impairments”) for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Beginning ¥ 7,809 ¥ 1,991 ¥ 2,633 Addition during the period: Credit loss for which an other-than-temporary impairment was not previously recognized 8 456 0 Credit loss for which an other-than-temporary impairment was previously recognized 239 282 49 Reduction during the period: For securities sold or redeemed (3,609 ) (44 ) (604 ) Due to change in intent to sell or requirement to sell (2,456 ) (52 ) (665 ) Ending ¥ 1,991 ¥ 2,633 ¥ 1,413 The Company and its subsidiaries recorded other-than-temporary impairments related to the non-credit losses arising from foregoing debt securities for CMBS and RMBS in the Americas. These impairments included the amount of unrealized gains or losses for the changes in fair value of the debt securities after recognition of other-than-temporary impairments in earnings. As of March 31, 2014, an unrealized gain of ¥59 million and an unrealized loss of ¥102 million, before taxes, were included and an unrealized gain of ¥38 million and an unrealized loss of ¥65 million, net of taxes, were included in unrealized gains or losses of accumulated other comprehensive income. As of March 31, 2015, an unrealized gain of ¥234 million and an unrealized loss of ¥58 million, before taxes, were included and an unrealized gain of ¥149 million and an unrealized loss of ¥37 million, net of taxes, were included in unrealized gains or losses of accumulated other comprehensive income. As of March 31, 2016, an unrealized gain of ¥61 million and an unrealized loss of ¥6 million, before taxes, were included and an unrealized gain of ¥39 million and an unrealized loss of ¥4 million, net of taxes, were included in unrealized gains or losses of accumulated other comprehensive income. The following is a summary of the contractual maturities of debt securities classified as available-for-sale securities and held-to-maturity securities held as of March 31, 2016: Available-for-sale securities held as of March 31, 2016: Millions of yen Amortized cost Fair value Due within one year ¥ 98,357 ¥ 99,607 Due after one to five years 386,050 388,102 Due after five to ten years 375,770 387,105 Due after ten years 337,684 361,731 ¥ 1,197,861 ¥ 1,236,545 Held-to-maturity securities held as of March 31, 2016: Millions of yen Amortized cost Fair value Due within one year ¥ 294 ¥ 294 Due after ten years 114,564 145,226 ¥ 114,858 ¥ 145,520 Securities not due at a single maturity date, such as mortgage-backed securities, are included in the above table based on their final maturities. Certain borrowers may have the right to call or prepay obligations. This right may cause actual maturities to differ from the contractual maturities summarized above. Included in finance revenues in the consolidated statements of income is interest income on investment securities of ¥12,393 million, ¥12,391 million and ¥12,712 million for fiscal 2014, 2015 and 2016, respectively. The Company and a certain foreign subsidiary acquired debt securities with evidence of deterioration of credit quality at the time of acquisition, and it was not probable the Company and a certain foreign subsidiary were able to recover all contractual amounts of those debt securities. In accordance with the provision of ASC 310-30 (“Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality”) and ASC 320 (“Investments”), the Company and the subsidiary determined the expected future cash flows taking into account historical cash collections for debt securities with similar characteristics as well as expected prepayments and the amount and the timing of undiscounted expected principal, interest and other cash flows for each pool of debt securities. Accretable yield represents the excess of expected future cash flows over carrying value of the debt securities, which is recognized as interest income over the remaining life of the debt securities. For a debt security for which the fair value is less than the amortized cost basis, the Company and a certain foreign subsidiary estimates the present value of cash flows expected to be collected from the security and compares it with the amortized cost basis of the security to determine whether a credit loss exists. If, based on current information and events, the Company and the subsidiary determine a credit loss exists for that security, an other-than-temporary impairment is considered to have occurred. For a debt security for which an other-than-temporary impairment is considered to have occurred, the Company and the subsidiary recognize the entire difference between the amortized cost and the fair value in earnings if the Company and the subsidiary intend to sell the debt security or it is more likely than not that the Company and the subsidiary will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss. On the other hand, if the Company and the subsidiary do not intend to sell the debt security and it is not more likely than not that the Company and the subsidiary will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss, the Company and the subsidiary separate the difference between the amortized cost and the fair value of the debt securities into the credit loss component and the non-credit loss component. The credit loss component is recognized in earnings, and the non-credit loss component is recognized in other comprehensive income (loss), net of applicable income taxes. The carrying amounts and the nominal value of debt securities acquired with evidence of deterioration of credit quality were ¥851 million and ¥5,595 million as of March 31, 2015, and ¥319 million and ¥1,057 million as of March 31, 2016. The outstanding balance of accretable yield was ¥996 million and ¥743 million as of March 31, 2015 and 2016, respectively. |
Securitization Transactions
Securitization Transactions | 12 Months Ended |
Mar. 31, 2016 | |
Securitization Transactions | 10. Securitization Transactions The Company and its subsidiaries have securitized various financial assets such as lease receivables and installment loans (commercial mortgage loans, housing loans and other). In the securitization process, these financial assets are transferred to SPEs, such as trusts and special-purpose companies that issue beneficial interests of the securitization trusts and securities backed by the financial assets to investors. The cash flows collected from these assets transferred to the SPEs are then used to repay these asset-backed beneficial interests and securities. As the transferred assets are isolated from the Company and its subsidiaries, the investors and the SPEs have no recourse to other assets of the Company and its subsidiaries in cases where the debtors or the issuers of the transferred financial assets fail to perform under the original terms of those financial assets. The Company and its subsidiaries often retain interests in the SPEs in the form of the beneficial interest of the securitization trusts. Those interests that continue to be held include interests in the transferred assets and are often subordinate to other tranche(s) of the securitization. Those beneficial interests that continue to be held by the Company and its subsidiaries are subject to credit risk, interest rate risk and prepayment risk on the securitized financial assets. With regards to these subordinated interests that the Company and its subsidiaries retain, they are subordinated to the senior investments and are exposed to different credit and prepayment risks, since they first absorb the risk of the decline in the cash flows from the financial assets transferred to the SPEs for defaults and prepayment of the transferred assets. If there is any excess cash remaining in the SPEs after payment to investors in the securitization of the contractual rate of returns, most of such excess cash is distributed to the Company and its subsidiaries for payments of the subordinated interests. In accordance with ASC 860 (“Transfers and Servicing”) and ASC 810 (“Consolidation”), trusts or SPEs used in securitization transactions have been consolidated if the Company and its subsidiaries are the primary beneficiary of the trusts or SPEs. During fiscal 2014, 2015 and 2016, there was no securitization transaction accounted for as a sale. Quantitative information about delinquencies, impaired loans and components of financial assets sold on securitization and other assets managed together as of March 31, 2015 and 2016, and quantitative information about net credit loss for fiscal 2014, 2015 and 2016 are as follows: Total principal amount of receivables Millions of yen March 31, 2015 March 31, 2016 Direct financing leases ¥ 1,216,454 ¥ 1,190,136 Installment loans 2,478,054 2,592,233 Assets recorded on the balance sheet 3,694,508 3,782,369 Direct financing leases sold on securitization 894 706 Total assets managed together or sold on securitization ¥ 3,695,402 ¥ 3,783,075 Principal amount of receivables that are 90 days or more past-due and impaired loans Millions of yen March 31, 2015 March 31, 2016 Direct financing leases ¥ 15,373 ¥ 12,556 Installment loans 107,669 81,771 Assets recorded on the balance sheet 123,042 94,327 Direct financing leases sold on securitization 0 0 Total assets managed together or sold on securitization ¥ 123,042 ¥ 94,327 Credit loss Millions of yen 2014 2015 2016 Direct financing leases ¥ 4,351 ¥ 3,774 ¥ 4,062 Installment loans 23,765 22,019 13,442 Assets recorded on the balance sheet 28,116 25,793 17,504 Direct financing leases sold on securitization 0 0 0 Total assets managed together or sold on securitization ¥ 28,116 ¥ 25,793 ¥ 17,504 A certain subsidiary originates and sells loans into the secondary market while retaining the obligation to service those loans. In addition, it undertakes obligations to service loans originated by others. The servicing assets related to those servicing activities are included in other assets and the balances of these servicing assets as of March 31, 2015 and 2016 were ¥18,376 million and ¥16,852 million, respectively. During fiscal 2015 and 2016, the servicing assets were increased by ¥3,410 million and ¥4,077 million, respectively, mainly from loans sold with servicing retained and decreased by ¥4,703 million and ¥4,467 million, respectively, mainly from amortization and increased by ¥2,758 million and decreased by ¥1,134 million, respectively, from the effects of changes in foreign exchange rates. The fair value of the servicing assets as of March 31, 2015 and 2016 were ¥27,676 million and ¥24,229 million, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entities | 11. Variable Interest Entities The Company and its subsidiaries use special purpose companies, partnerships and trusts (hereinafter referred to as SPEs) in the ordinary course of business. These SPEs are not always controlled by voting rights, and there are cases where voting rights do not exist for those SPEs. ASC 810 (“Consolidation”) addresses consolidation by business enterprises of SPEs within the scope of ASC 810. Generally these SPEs are entities where (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders or (b) as a group, the holders of the equity investment at risk do not have (1) the ability to make decisions about an entity’s activities that most significantly impact the entity’s economic performance through voting rights or similar rights, (2) the obligation to absorb the expected losses of the entity or (3) the right to receive the expected residual returns of the entity. Entities within the scope of ASC 810 are called VIEs. According to ASC 810, the Company and its subsidiaries are required to perform a qualitative analysis to identify the primary beneficiary of VIEs. An enterprise that has both of the following characteristics is considered to be the primary beneficiary and therefore results in the consolidation of the VIE: • The power to direct the activities of a VIE that most significantly impact the entity’s economic performance • The obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE All facts and circumstances are taken into consideration when determining whether the Company and its subsidiaries have variable interests that would deem it the primary beneficiary and therefore require consolidation of the VIE. The Company and its subsidiaries make ongoing reassessment of whether they are the primary beneficiaries of a VIE. The following are the items that the Company and its subsidiaries are considering in a qualitative assessment: • Which activities most significantly impact the economic performance of the VIE and who has the power to direct such activities • Characteristics of the Company and its subsidiaries’ variable interest or interests and other involvements (including involvement of related parties and de facto agents) • Involvement of other variable interest holders • The entity’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders The Company and its subsidiaries generally consider the following types of involvement to be significant when determining the primary beneficiary: • Designing the structuring of a transaction • Providing an equity investment and debt financing • Being the investment manager, asset manager or servicer and receiving variable fees • Providing liquidity and other financial support The Company and its subsidiaries do not have the power to direct activities of the VIEs that most significantly impact the VIEs’ economic performance if that power is shared among multiple unrelated parties, and accordingly do not consolidate such VIEs. Information about VIEs (consolidated and non-consolidated) for the Company and its subsidiaries are as follows: 1. Consolidated VIEs March 31, 2015 Millions of yen Types of VIEs Total assets*1 Total liabilities*1 Assets which are pledged as collateral*2 Commitments*3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 1,036 123 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 223,069 65,017 135,723 7,000 (d) VIEs for corporate rehabilitation support business 4,366 34 0 0 (e) VIEs for investment in securities 21,027 8,064 12,928 23,974 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 393,502 250,402 325,236 0 (g) VIEs for securitization of loan receivable originated by third parties 36,452 43,280 36,452 0 (h) VIEs for power generation projects 84,242 31,236 30,227 173,560 (i) Other VIEs 202,708 99,545 187,065 0 Total ¥ 966,402 ¥ 497,701 ¥ 727,631 ¥ 204,534 March 31, 2016 Millions of yen Types of VIEs Total assets*1 Total liabilities*1 Assets which are pledged as collateral*2 Commitments*3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 953 0 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 174,854 56,325 113,869 7,000 (d) VIEs for corporate rehabilitation support business 2,055 40 0 0 (e) VIEs for investment in securities 24,882 9,657 17,336 2,422 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 381,313 256,620 346,169 0 (g) VIEs for securitization of loan receivable originated by third parties 21,550 20,548 21,550 0 (h) VIEs for power generation projects 159,593 82,535 88,119 121,390 (i) Other VIEs 216,632 97,979 213,466 0 Total ¥ 981,832 ¥ 523,704 ¥ 800,509 ¥ 130,812 *1 The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. *2 The assets are pledged as collateral by VIE for financing of the VIE. *3 This item represents remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. 2. Non-consolidated VIEs March 31, 2015 Millions of yen Carrying amount of the Types of VIEs Total assets Specified non-recourse Investments Maximum exposure (a) VIEs for liquidating customer assets ¥ 32,421 ¥ 0 ¥ 2,091 ¥ 9,551 (b) VIEs for acquisition of real estate and real estate development projects for customers 325,429 14,084 26,283 50,017 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 3,038,819 0 28,584 55,940 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,100,830 0 8,064 8,139 (h) VIEs for power generation projects 0 0 0 0 (i) Other VIEs 26,894 14 3,038 3,052 Total ¥ 4,524,393 ¥ 14,098 ¥ 68,060 ¥ 126,699 March 31, 2016 Millions of yen Total assets Carrying amount of the Types of VIEs Specified non-recourse Investments Maximum exposure (a) VIEs for liquidating customer assets ¥ 33,406 ¥ 0 ¥ 2,091 ¥ 9,551 (b) VIEs for acquisition of real estate and real estate development projects for customers 170,001 4,776 13,039 24,964 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 2,964,616 0 26,174 47,636 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,070,683 0 10,671 10,721 (h) VIEs for power generation projects 20,007 0 1,182 1,182 (i) Other VIEs 104,284 0 4,868 4,868 Total ¥ 4,362,997 ¥ 4,776 ¥ 58,025 ¥ 98,922 * Maximum exposure to loss includes remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. (a) VIEs for liquidating customer assets The Company and its subsidiaries may use VIEs in structuring financing for customers to liquidate specific customer assets. The VIEs are typically used to provide a structure that is bankruptcy remote with respect to the customer and the use of VIE structure is requested by such customer. Such VIEs typically acquire assets to be liquidated from the customer, borrow non-recourse loans from financial institutions and have an equity investment made by the customer. By using cash flows from the liquidated assets, these VIEs repay the loan and pay dividends to equity investors if sufficient funds exist. Variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, are mainly included in other assets in the Company’s consolidated balance sheets. The Company has a commitment agreement by which the Company may be required to make additional investment in certain such non-consolidated VIEs. (b) VIEs for acquisition of real estate and real estate development projects for customers Customers and the Company and its subsidiaries are involved with VIEs formed to acquire real estate and/or develop real estate projects. In each case, a customer establishes and makes an equity investment in a VIE that is designed to be bankruptcy remote from the customer. The VIEs acquire real estate and/or develop real estate projects. The Company and its subsidiaries provide non-recourse loans to such VIEs and hold specified bonds issued by them and/or make investments in them. The Company and its subsidiaries have consolidated certain VIEs because the Company or its subsidiary effectively controls the VIEs by acting as the asset manager of the VIEs. In the Company’s consolidated balance sheets, assets of consolidated VIEs are mainly included in investment in affiliates. With respect to the variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, specified bonds are included in investment in securities, non-recourse loans are included in installment loans, and investments are mainly included in investment in securities, investment in affiliates and other assets in the Company’s consolidated balance sheets. The Company and its subsidiaries have commitment agreements by which the Company and its subsidiaries may be required to provide additional investment in certain non-consolidated VIEs as long as the agreed-upon terms are met. Under these agreements, the Company and its subsidiaries are committed to invest in these VIEs with the other investors based on their respective ownership percentages. The Company and its subsidiaries concluded that the VIEs are not consolidated because the power to direct these VIEs is held by unrelated parties. In some cases, the Company and its subsidiaries concluded that the VIEs are not consolidated because the power to direct these VIEs is shared among multiple unrelated parties. (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business The Company and its subsidiaries establish VIEs and acquire real estate to borrow non-recourse loans from financial institutions and simplify the administration activities necessary for the real estate. The Company and its subsidiaries consolidate such VIEs even though the Company and its subsidiaries may not have voting rights if substantially all of such VIEs’ subordinated interests are issued to the Company and its subsidiaries, and therefore the VIEs are controlled by and for the benefit of the Company and its subsidiaries. The Company and its subsidiaries contributed additional funding to certain consolidated VIEs, since those VIEs had difficulty repaying debt and accounts payable. The amount of the additional funding for fiscal 2015 was ¥5,628 million. There was no additional funding or acquisition of subordinated interests during fiscal 2016. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in cash and cash equivalents, restricted cash, investment in operating leases, property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in long-term debt. The Company has a commitment agreement by which the Company may be required to make additional investment in certain such consolidated VIEs. (d) VIEs for corporate rehabilitation support business Financial institutions, the Company and its subsidiary are involved with VIEs established for the corporate rehabilitation support business. VIEs receive the funds from investors including the financial institutions, the Company and the subsidiary, and purchase loan receivables due from borrowers which have financial problems, but are deemed to have the potential to recover in the future. The servicing operations for the VIEs are conducted by the subsidiary. The Company and its subsidiary consolidated such VIEs since the Company and the subsidiary have the majority of the investment share of such VIEs, and have the power to direct the activities of the VIEs that most significantly impact the entities’ economic performance through the servicing operations. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in installment loans, and liabilities of those consolidated VIEs are mainly included in other liabilities. (e) VIEs for investment in securities The Company and its subsidiaries have interests in VIEs that are investment funds and mainly invest in equity and debt securities. Such VIEs are managed by certain subsidiaries or fund management companies that are independent of the Company and its subsidiaries. The Company consolidated certain such VIEs since the Company has the majority of the investment share of them, and has the power to direct the activities of those VIEs that most significantly impact the entities’ economic performance through involvement with the design of the VIEs or other means. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in investment in securities and investment in affiliates, and liabilities of those consolidated VIEs are mainly included in long-term debt. A subsidiary has a commitment agreement by which the subsidiary may be required to make additional investment in certain such consolidated VIEs. Variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, are included in investment in securities in the Company’s consolidated balance sheets. The Company and its subsidiaries have a commitment agreement by which the Company and its subsidiaries may be required to make additional investment in certain such non-consolidated VIEs. (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable The Company and its subsidiaries use VIEs to securitize financial assets such as direct financing leases receivables and loans receivables. In the securitization process, these financial assets are transferred to SPEs, and the SPEs issue beneficial interests or securities backed by the transferred financial assets to investors. After the securitization, the Company and its subsidiaries continue to hold a subordinated part of the securities and act as a servicer. The Company and its subsidiaries consolidated such VIEs since the Company and its subsidiaries have the power to direct the activities that most significantly impact the entity’s economic performance by designing the securitization scheme and conducting servicing activities, and have a responsibility to absorb losses of the VIEs that could potentially be significant to the entities by retaining the subordinated part of the securities. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in restricted cash, investment in direct financing leases and installment loans, and liabilities of those consolidated VIEs are mainly included in long-term debt. (g) VIEs for securitization of loan receivable originated by third parties The Company and its subsidiaries invest in CMBS, RMBS and other asset-backed securities originated by third parties. In some cases of such securitization, certain subsidiaries hold the subordinated portion and the subsidiaries act as a special-servicer of the securitization transaction. As the special servicer, the subsidiaries have rights to dispose of real estate collateral related to the securitized commercial mortgage loans. The subsidiaries consolidate certain of these VIEs when the subsidiaries have the power to direct the activities of the VIEs that most significantly impact the entities’ economic performance through its role as special-servicer, including the right to dispose of the collateral, and have a responsibility to absorb losses of the VIEs that could potentially be significant to the entities by holding the subordinated part of the securities. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in installment loans, and liabilities of those consolidated VIEs are mainly included in long-term debt. Variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, are included in investment in securities in the Company’s consolidated balance sheets. The Company has a commitment agreement by which the Company may be required to make additional investment in certain such non-consolidated VIEs. (h) VIEs for power generation projects The Company and its subsidiaries may use VIEs in power generation projects. VIEs receive the funds from the Company and its subsidiaries, install solar panels on acquired or leased lands, and sell the generated power to electric power companies. The Company and its subsidiaries have consolidated certain VIEs because the Company and its subsidiaries have the majority of the investment shares of such VIEs and effectively control the VIEs by acting as the asset manager of the VIEs. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in long-term debt. The Company has commitment agreements by which the Company may be required to make additional investment or execute loans in certain such consolidated VIEs. Variable interests of non-consolidated VIEs, which the Company has, is included in investment in securities in the Company’s consolidated balance sheets. (i) Other VIEs The Company and its subsidiaries are involved with other types of VIEs for various purposes. Consolidated and non-consolidated VIEs of this category are mainly kumiai structures. In addition, certain subsidiaries has consolidated VIEs that are not included in the categories (a) through (h) above, because the subsidiaries hold the subordinated portion of the VIEs and the VIEs are effectively controlled by the subsidiaries. In Japan, certain subsidiaries provide investment products to their customers that employ a contractual mechanism known as a kumiai, which in part result in the subsidiaries forming a type of SPE. As a means to finance the purchase of aircraft or other large-ticket items to be leased to third parties, the Company and its subsidiaries arrange and market kumiai products to investors, who invest a portion of the funds necessary into the kumiai structure. The remainder of the purchase funds is borrowed by the kumiai structure in the form of a non-recourse loan from one or more financial institutions. The kumiai investors (and any lenders to the kumiai structure) retain all of the economic risks and rewards in connection with purchasing and leasing activities of the kumiai structure, and all related gains or losses are recorded on the financial statements of the investors in the kumiai. The Company and its subsidiaries are responsible for the arrangement and marketing of these products and may act as servicer or administrator in kumiai transactions. The fee income for the arrangement and administration of these transactions is recognized in the Company’s consolidated statements of income. In some cases, the Company and its subsidiaries make investments in the kumiai or its related SPE, and these VIEs are consolidated because the Company and its subsidiaries have a responsibility to absorb any significant potential loss through the investments and have the power to direct the activities that most significantly impact their economic performance. In other cases, the Company and its subsidiaries are not considered to be the primary beneficiary of the VIEs or kumiais because the Company and its subsidiaries did not make significant investments or guarantee or otherwise undertake any significant financial commitments or exposure with respect to the kumiai or its related SPE. The Company may use VIEs to finance. The Company transfers its own held assets to SPEs, which borrow non-recourse loan from financial institutions and effectively pledge such assets as collateral. The Company continually holds subordinated interests in the SPEs and perform administrative work of such assets. The Company consolidates such SPEs because the Company has a right to direct the activities of them that most significantly impact their economic performance by setting up the scheme and performing administrative work of the assets and has the obligation to absorb expected losses of them by holding the subordinated interests. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in investment in operating leases, investment in affiliates and office facilities, and liabilities of those consolidated VIEs are mainly included in long-term debt. Variable interests in non-consolidated VIEs, which the Company and its subsidiaries hold, are mainly included in installment loans in the Company’s consolidated balance sheets. |
Investment in Affiliates
Investment in Affiliates | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Affiliates | 12. Investment in Affiliates Investment in affiliates at March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Shares ¥ 368,989 ¥ 499,922 Loans 9,098 30,745 ¥ 378,087 ¥ 530,667 Certain affiliates are listed on stock exchanges. The aggregate investment in and quoted market value of those affiliates amounted to ¥38,916 million and ¥50,244 million, respectively, as of March 31, 2015 and ¥110,121 million and ¥110,568 million, respectively, as of March 31, 2016. In fiscal 2014, 2015 and 2016, the Company and its subsidiaries received dividends from affiliates of ¥9,957 million, ¥18,186 million and ¥30,063 million, respectively. The balance of excess of cost over the underlying equity at acquisition dates of investment in affiliates amounted to ¥50,977 million and ¥101,289 million as of March 31, 2015 and 2016, respectively. The Company no longer has the ability to exercise significant influence on ORIX JREIT Inc., and therefore has excluded ORIX JREIT Inc. from investment in affiliates accounted for by using the equity method. The transactions during the period accounted for by the equity method are described below. ORIX JREIT Inc., formerly an equity method affiliate, entered into an asset management agreement and the like with one of the Company’s subsidiaries and paid fees of ¥1,905 million, ¥2,433 million and ¥1,937 million for fiscal 2014, 2015 and 2016, respectively. In fiscal 2014, 2015 and 2016, the Company and certain subsidiaries sold to ORIX JREIT Inc., office buildings, commercial facilities other than office buildings, and condominiums mainly under operating leases. In fiscal 2014, 2015 and 2016, the Company and the subsidiaries recognized gains of ¥2,261 million, ¥10,473 million and ¥1,744 million respectively in earnings as operating leases. The related intercompany profits have been eliminated based on the Company’s proportionate share. Combined and condensed information relating to the affiliates for fiscal 2014, 2015 and 2016 are as follows (some operation data for entities reflect only the period since the Company and its subsidiaries made the investment and on a lag basis): Millions of yen 2014 2015 2016 Operations: Total revenues ¥ 1,086,818 ¥ 1,094,317 ¥ 1,333,838 Income before income taxes 137,698 130,799 177,535 Net income 91,200 109,865 141,964 Financial position: Total assets ¥ 5,704,862 ¥ 6,897,921 ¥ 8,350,901 Total liabilities 4,562,871 5,131,402 6,206,321 Total equity 1,141,991 1,766,519 2,144,580 The Company and its subsidiaries had no significant transactions with these companies except as described above. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Other Intangible Assets | 13. Goodwill and Other Intangible Assets Changes in goodwill by reportable segment for fiscal 2014, 2015 and 2016 are as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Balance at March 31, 2013 Goodwill ¥ 754 ¥ 282 ¥ 19,329 ¥ 11,751 ¥ 15,424 ¥ 79,085 ¥ 126,625 Accumulated impairment losses (257 ) 0 0 (39 ) 0 0 (296 ) 497 282 19,329 11,712 15,424 79,085 126,329 Acquired 550 0 0 14,388 0 169,307 184,245 Impairment 0 0 0 0 0 0 0 Other (net) * 0 0 (29 ) 111 0 25,251 25,333 Balance at March 31, 2014 Goodwill 1,304 282 19,300 26,250 15,424 273,643 336,203 Accumulated impairment losses (257 ) 0 0 (39 ) 0 0 (296 ) 1,047 282 19,300 26,211 15,424 273,643 335,907 Acquired 53,741 0 0 17,967 0 12,043 83,751 Impairment (550 ) 0 (8,708 ) 0 0 (587 ) (9,845 ) Other (net)* 0 0 (97 ) (376 ) 0 (36,725 ) (37,198 ) Balance at March 31, 2015 Goodwill 55,045 282 19,203 43,841 15,424 248,961 382,756 Accumulated impairment losses (807 ) 0 (8,708 ) (39 ) 0 (587 ) (10,141 ) 54,238 282 10,495 43,802 15,424 248,374 372,615 Acquired 1,158 0 0 29,365 0 3,796 34,319 Impairment (30 ) 0 0 0 0 0 (30 ) Other (net)* 0 0 0 (6,260 ) 0 (68,491 ) (74,751 ) Balance at March 31, 2016 Goodwill 56,203 282 19,203 66,946 15,424 184,266 342,324 Accumulated impairment losses (837 ) 0 (8,708 ) (39 ) 0 (587 ) (10,171 ) ¥ 55,366 ¥ 282 ¥ 10,495 ¥ 66,907 ¥ 15,424 ¥ 183,679 ¥ 332,153 * Other includes foreign currency translation adjustments, decreases due to sale of ownership interest in subsidiaries and certain other reclassifications. In the Overseas Business segment, there was a decrease of ¥39,694 million during fiscal 2015 due to the partial sale of shares of STX Energy, which as a result of the sale changed from a consolidated subsidiary to an equity method affiliate. In the Overseas Business segment, there was a decrease of ¥57,153 million during fiscal 2016 due to the partial sale of shares of Houlihan Lokey, which as a result of the sale changed from a consolidated subsidiary to an equity method affiliate. As a result of the impairment test, the Company and its subsidiaries recognized no impairment losses on goodwill during fiscal 2014. The Company and its subsidiaries recognized impairment losses on goodwill of ¥550 million in Corporate Financial Services segment, ¥8,708 million on golf business included in Real Estate segment, ¥587 million in Overseas Business segment during fiscal 2015. These impairment losses are accounted in other (income) and expense, net. The impairment loss on golf business was recognized as a result of reduction in estimated future cash flow due to our additional capital investment in the slower market growth, which brought the fair value of the reporting unit below its carrying amount. The Company and its subsidiaries recognized impairment losses on goodwill of ¥30 million in Corporate Financial Services segment during fiscal 2016. The impairment losses are accounted in other (income) and expense, net. The fair values of the reporting units were measured using mainly the discounted cash flow methodologies and the business enterprise value multiples methodologies. Other intangible assets at March 31, 2015 and 2016 consist of the following: Millions of yen 2015 2016 Intangible assets that have indefinite useful lives: Trade names ¥ 99,395 ¥ 75,860 Asset management contracts 153,778 150,686 Others 2,812 3,906 255,985 230,452 Intangible assets subject to amortization: Software 99,342 94,898 Customer relationships 126,201 125,081 Others 33,071 32,388 258,614 252,367 Accumulated amortization (89,587 ) (96,485 ) Net 169,027 155,882 ¥ 425,012 ¥ 386,334 The aggregate amortization expenses for intangible assets are ¥17,467 million, ¥23,164 million and ¥25,848 million in fiscal 2014, 2015 and 2016, respectively. The estimated amortization expenses for each of five succeeding fiscal years are ¥24,540 million in fiscal 2017, ¥21,143 million in fiscal 2018, ¥19,072 million in fiscal 2019, ¥17,551 million in fiscal 2020 and ¥13,352 million in fiscal 2021, respectively. Intangible assets subject to amortization increased during fiscal 2016 are ¥29,010 million. They mainly consist of ¥10,094 million of software and ¥7,973 million of customer relationships recognized in acquisitions. The weighted average amortization periods for the software and the customer relationships recognized in acquisitions are 6 years and 10 years, respectively. As a result of the impairment test, the Company and its subsidiaries recognized no impairment losses on intangible assets during fiscal 2014. The Company and its subsidiaries recognized impairment losses of ¥358 million on intangible assets included in mainly Corporate Financial Services segment, during fiscal 2015. The Company and its subsidiaries recognized impairment losses of ¥295 million on intangible assets included in mainly Investment and Operation segment, during fiscal 2016. These impairment losses are accounted in other (income) and expense, net. The impairment losses are recognized due to the reduction in the estimated future cash flow, which brought the fair values of the intangible assets below its carrying amount. The fair values of the intangible assets were measured using the discounted cash flow methodologies. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Mar. 31, 2016 | |
Short-Term and Long-Term Debt | 14. Short-Term and Long-Term Debt Short-term debt consists of borrowings from financial institutions and commercial paper. The composition of short-term debt and the weighted average contract interest rate on short-term debt at March 31, 2015 and 2016 are as follows: March 31, 2015 Millions of yen Weighted average rate Short-term debt in Japan, mainly from banks ¥ 16,778 0.5 % Short-term debt outside Japan, mainly from banks 178,386 2.4 Commercial paper in Japan 78,072 0.2 Commercial paper outside Japan 11,549 4.0 ¥ 284,785 1.7 March 31, 2016 Millions of yen Weighted average rate Short-term debt in Japan, mainly from banks ¥ 80,846 0.5 % Short-term debt outside Japan, mainly from banks 166,417 2.2 Commercial paper in Japan 94,786 0.1 Commercial paper outside Japan 7,575 4.0 ¥ 349,624 1.3 The composition of long-term debt, the weighted average contract interest rate on long-term debt and the repayment due dates at March 31, 2015 and 2016 are as follows: March 31, 2015 Due (Fiscal Year) Millions of yen Weighted average rate Banks: Fixed rate 2016~2031 ¥ 485,910 1.7 % Floating rate 2016~2032 1,622,729 1.0 Insurance companies and others: Fixed rate 2016~2025 328,639 1.2 Floating rate 2017~2028 250,156 0.7 Unsecured bonds 2016~2025 1,118,766 1.8 Unsecured notes under medium-term note program 2016~2018 35,110 2.9 Payables under securitized lease receivables 2020~2021 157,773 0.5 Payables under securitized loan receivables and investment in securities 2018~2039 133,862 3.2 ¥ 4,132,945 1.4 March 31, 2016 Due (Fiscal Year) Millions of yen Weighted average rate Banks: Fixed rate 2017~2033 ¥ 521,491 1.8 % Floating rate 2017~2033 1,601,178 0.9 Insurance companies and others: Fixed rate 2018~2027 342,720 1.0 Floating rate 2017~2026 259,306 0.8 Unsecured bonds 2017~2025 877,504 1.1 Unsecured notes under medium-term note program 2017~2021 62,653 2.7 Payables under securitized lease receivables 2020~2021 129,005 0.3 Payables under securitized loan receivables and investment in securities 2017~2039 147,049 2.6 ¥ 3,940,906 1.1 The repayment schedule for the next five years and thereafter for long-term debt at March 31, 2016 is as follows: Years ending March 31, Millions of yen 2017 ¥ 858,090 2018 759,484 2019 612,900 2020 400,214 2021 441,672 Thereafter 868,546 Total ¥ 3,940,906 For borrowings from banks, insurance companies and other financial institutions, for bonds, and for medium-term notes, principal repayments are made upon maturity of the loan contracts and interest payments are usually paid semi-annually. During fiscal 2014, 2015 and 2016, the Company and certain subsidiaries recognized net amortization expenses of premiums and discounts of bonds and medium-term notes, and deferred issuance costs of bonds and medium-term notes in the amount of ¥618 million, ¥367 million and ¥1,085 million, respectively. Total committed credit lines for the Company and its subsidiaries were ¥475,553 million and ¥464,677 million at March 31, 2015 and 2016, respectively, and, of these lines, ¥419,356 million and ¥389,903 million were available at March 31, 2015 and 2016, respectively. Of the available committed credit lines, ¥274,980 million and ¥380,062 million were long-term committed credit lines at March 31, 2015 and 2016, respectively. Some of the debt and commitment contracts contain covenant clauses, and some of these include financial restrictions, such as maintenance of certain ORIX Corporation shareholders’ equity ratios. As of March 31, 2016, the Company and its subsidiaries were in compliance with such objective covenant requirements. The agreements related to debt payable to banks provide that the banks under certain circumstances may request additional security for loans and have the right to offset cash deposited against any short-term or long-term debt that becomes due and, in case of default and certain other specified events, against all other debt payable to the banks. Other than the assets of the consolidated VIEs pledged as collateral for financing (see Note 11 “Variable Interest Entities”), the Company and certain subsidiaries provide the following assets as collateral for the short-term and long-term debt payables to financial institutions as of March 31, 2016: Millions of yen Minimum lease payments, loans and investment in operating leases ¥ 106,118 Investment in securities 177,266 Property under facility operations 8,781 Other assets and other 17,079 ¥ 309,244 As of March 31, 2016, investment in securities of ¥25,808 million was pledged for primarily collateral deposits. In addition, debt liabilities of affiliates amounted to ¥184,950 million was secured by investment in affiliates of ¥32,097 million as of March 31, 2016. Under loan agreements relating to short-term and long-term debt from commercial banks and certain insurance companies, the Company and certain subsidiaries are required to provide collateral against these debts at any time if requested by the lenders. The Company and the subsidiaries did not receive any such requests from the lenders as of March 31, 2016. |
Deposits
Deposits | 12 Months Ended |
Mar. 31, 2016 | |
Deposits | 15. Deposits Deposits at March 31, 2015 and 2016 consist of the following: Millions of yen 2015 2016 Time deposits ¥ 1,028,977 ¥ 1,093,238 Other deposits 258,403 305,234 Total ¥ 1,287,380 ¥ 1,398,472 The balances of time deposits and certificates of deposit issued in amounts of ¥10 million or more were ¥617,235 million and ¥648,697 million at March 31, 2015 and 2016, respectively. The maturity schedule of time deposits at March 31, 2016 is as follows: Years ending March 31, Millions of yen 2017 ¥ 633,451 2018 205,410 2019 121,611 2020 52,595 2021 80,171 Total ¥ 1,093,238 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Income Taxes | 16. Income Taxes Income before income taxes and discontinued operations, and the provision for income taxes in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Income before income taxes and discontinued operations: Japan ¥ 184,504 ¥ 188,601 ¥ 228,527 Overseas 101,835 155,416 162,775 ¥ 286,339 ¥ 344,017 ¥ 391,302 Provision for income taxes: Current— Japan ¥ 19,116 ¥ 9,455 ¥ 34,866 Overseas 27,093 38,264 42,918 46,209 47,719 77,784 Deferred— Japan 49,419 36,112 34,315 Overseas 2,925 5,226 8,213 52,344 41,338 42,528 Provision for income taxes ¥ 98,553 ¥ 89,057 ¥ 120,312 In fiscal 2014, the Company and its subsidiaries in Japan are subject to a National Corporation tax of approximately 28%, an Inhabitant tax of approximately 5% and a deductible Enterprise tax of approximately 8%, which in the aggregate result in a statutory income tax rate of approximately 38.3%. In fiscal 2015, the Company and its subsidiaries in Japan are subject to a National Corporation tax of approximately 26%, an Inhabitant tax of approximately 5% and a deductible Enterprise tax of approximately 8%, which in the aggregate result in a statutory income tax rate of approximately 35.9%. In fiscal 2016, the Company and its subsidiaries in Japan are subject to a National Corporation tax of approximately 25%, an Inhabitant tax of approximately 4% and a deductible Enterprise tax of approximately 6%, which in the aggregate result in a statutory income tax rate of approximately 33.5%. Reconciliations of the differences between the tax provision computed at the statutory rate and the consolidated provision for income taxes in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Income before income taxes and discontinued operations ¥ 286,339 ¥ 344,017 ¥ 391,302 Tax provision computed at statutory rate ¥ 109,668 ¥ 123,502 ¥ 131,086 Increases (reductions) in taxes due to: Change in valuation allowance* (845 ) 1,839 (1,547 ) Non-deductible expenses for tax purposes 2,382 3,513 2,277 Non-taxable income for tax purposes (3,224 ) (7,633 ) (3,767 ) Effect of nontaxable bargain purchase gain 0 (12,953 ) 0 Effect of lower tax rates on foreign subsidiaries and a domestic life insurance subsidiary (5,805 ) (8,766 ) (3,593 ) Effect of the tax rate change related to the new Japanese tax law (5,824 ) (14,098 ) (7,468 ) Other, net 2,201 3,653 3,324 Provision for income taxes ¥ 98,553 ¥ 89,057 ¥ 120,312 * In fiscal 2015 and 2016, increases in the valuation allowance of ¥1,819 million and decreases in the valuation allowance of ¥12 million due to the amendment to tax loss carryforward rules related to the new Japanese tax law are included in “Change in valuation allowance” in the table above. The effective income tax rate is different from the statutory tax rate primarily because of certain nondeductible expenses for tax purposes, non-taxable income for tax purposes, changes in valuation allowance, the effect of nontaxable bargain purchase gain, the effect of lower income tax rates on foreign subsidiaries and a domestic life insurance subsidiaries, and the effect of the tax reforms as discussed in the following paragraph. On March 20, 2014, the bill for reconstruction funding and the bill for local corporate tax were approved by the National Diet of Japan. For a fiscal year beginning on April 1, 2014, special corporate tax for reconstruction will not be charged, and as a result, the combined statutory income tax rate for a fiscal year beginning on April 1, 2014 was reduced from approximately 38.3% to approximately 35.9%. On March 31, 2015, the 2015 tax reform bill was passed by the National Diet of Japan. From fiscal years beginning on April 1, 2015, the national tax rate and the local business tax rate were reduced, and as a result, the combined statutory income tax rate for the fiscal year beginning on April 1, 2015 was reduced from approximately 35.9% to approximately 33.5%. The increase and decrease of the deferred tax assets and liabilities due to the change in the tax rates resulted in a decrease of provision for income taxes by ¥14,098 million in the consolidated statements of income, and the increase of the valuation allowance due to the amendment to tax loss carryforward rules resulted in an increase of provision for income taxes by ¥1,819 million in the consolidated statements of income. On March 29, 2016, the 2016 tax reform bill was passed by the National Diet of Japan. From fiscal years beginning on April 1, 2016, the national corporate tax rate and local business tax rate were reduced and the local corporate tax rate was increased. The net effect of those changes was a reduction in the combined statutory income tax rate for the fiscal year beginning on April 1, 2016 from approximately 32.9% to approximately 31.7%, and a further reduction in the combined statutory income tax rate for fiscal year beginning on April 1, 2017 to approximately 31.5%. For the fiscal years beginning on or after April 1, 2018, the combined statutory income tax rate was further reduced to approximately 31.3%. In addition, tax loss carryforward rules were amended, and the deductible amount of tax losses carried forward for the fiscal year beginning on April 1, 2016 is reduced to 60% of taxable income for the year, compared to 65% pursuant to the 2015 tax reform. From the fiscal year beginning on April 1, 2017, the deductible limit of tax losses carried forward will be increased to 55% of taxable income for the year, while the tax loss carryforward period will be reduced from ten years to nine years. From the fiscal years beginning on or after April 1, 2018, the deductible limit of tax losses carried forward will remain at 50% of taxable income for the year and the tax loss carryforward period will remain at 10 years, consistent with the 2015 tax reform. The increase and decrease of the deferred tax assets and liabilities due to the change in the tax rates resulted in a decrease of provision for income taxes by ¥7,468 million in the consolidated statements of income, and the decrease of the valuation allowance due to the amendment to tax loss carryforward rules resulted in an decrease of provision for income taxes by ¥12 million in the consolidated statements of income. Total income taxes recognized in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Provision for income taxes ¥ 98,553 ¥ 89,057 ¥ 120,312 Income taxes on discontinued operations 4,681 166 0 Income taxes on other comprehensive income (loss): Net unrealized gains (losses) on investment in securities 5,304 6,915 (6,003 ) Defined benefit pension plans 1,456 (4,045 ) (2,954 ) Foreign currency translation adjustments 1,756 6,880 (2,921 ) Net unrealized gains (losses) on derivative instruments 329 (255 ) (1,696 ) Direct adjustments to shareholders’ equity (101 ) (734 ) (2 ) Total income taxes ¥ 111,978 ¥ 97,984 ¥ 106,736 The tax effects of temporary differences giving rise to the deferred tax assets and liabilities at March 31, 2015 and 2016 are as follows: Millions of yen 2015 2016 Assets: Net operating loss carryforwards ¥ 91,899 ¥ 72,994 Allowance for doubtful receivables on direct financing leases and probable loan losses 20,170 12,883 Investment in securities 11,128 15,306 Policy liabilities and policy account balances 18,273 763 Accrued expenses 30,352 25,537 Investment in operating leases 18,470 16,814 Property under facility operations 10,098 10,211 Installment loans 6,487 8,640 Other 50,961 49,393 257,838 212,541 Less: valuation allowance (50,515 ) (43,220 ) 207,323 169,321 Liabilities: Investment in direct financing leases 6,342 10,471 Investment in operating leases 89,411 90,074 Unrealized gains (losses) on investment in securities 26,361 20,734 Deferred insurance policy acquisition costs 28,494 35,894 Policy liabilities and policy account balances 53,871 41,995 Property under facility operations 2,221 9,256 Other intangible assets 122,996 103,503 Undistributed earnings 68,269 97,156 Prepaid benefit cost 15,205 9,037 Other 55,773 39,265 468,943 457,385 Net deferred tax liability ¥ 261,620 ¥ 288,064 Net deferred tax assets and liabilities at March 31, 2015 and 2016 are reflected in the accompanying consolidated balance sheets under the following captions: Millions of yen 2015 2016 Other assets ¥ 74,449 ¥ 53,296 Income taxes: Deferred 336,069 341,360 Net deferred tax liability ¥ 261,620 ¥ 288,064 The valuation allowance is primarily recognized for deferred tax assets of consolidated subsidiaries with net operating loss carryforwards for tax purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and tax loss carryforwards are utilizable. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax-planning The Company and certain subsidiaries have net operating loss carryforwards of ¥539,796 million at March 31, 2016, which expire as follows: Year ending March 31, Millions of yen 2017 ¥ 366 2018 92,434 2019 32,184 2020 18,161 2021 85,722 Thereafter 279,902 Indefinite period 31,027 Total ¥ 539,796 The unrecognized tax benefits as of March 31, 2015 and 2016 were not material. The Company and its subsidiaries believe that it is not reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of March 31, 2016. The total amounts of penalties and interest expense related to income taxes recognized in the consolidated balance sheets as of March 31, 2015 and 2016, and in the consolidated statements of income for the fiscal 2014, 2015 and 2016 were not material. The Company and its subsidiaries file tax returns in Japan and certain foreign tax jurisdictions. The Company is no longer subject to ordinary tax examination for the tax years prior to fiscal 2013, and its major domestic subsidiaries are no longer subject to ordinary tax examination for the tax years prior to fiscal 2010, respectively. Subsidiaries in the United States remain subject to a tax examination for the tax years after fiscal 2009. Subsidiaries in the Netherlands remain subject to a tax examination for the tax years after fiscal 2010. |
Pension Plans
Pension Plans | 12 Months Ended |
Mar. 31, 2016 | |
Pension Plans | 17. Pension Plans The Company and certain subsidiaries have contributory and non-contributory pension plans covering substantially all of their employees. Those contributory funded pension plans include defined benefit pension plans and defined contribution pension plans. Under the plans, employees are entitled to lump-sum payments at the time of termination of their employment or pension payments. Defined benefit pension plans consist of a plan of which the amounts of such payments are determined on the basis of length of service and remuneration at the time of termination and a cash balance plan. The Company and its subsidiaries’ funding policy is to contribute annually the amounts actuarially determined. Assets of the plans are invested primarily in interest-bearing securities and marketable equity securities. The funded status of the defined benefit pension plans, which consists of Japanese plans and overseas plans, as of March 31, 2015 and 2016 are as follows: Millions of yen Japanese plans Overseas plans 2015 2016 2015 2016 Change in benefit obligation: Benefit obligation at beginning of year ¥ 82,859 ¥ 86,793 ¥ 68,840 ¥ 110,521 Service cost 4,415 4,401 2,460 3,856 Interest cost 1,159 995 2,251 1,747 Actuarial loss (gain) (169 ) 10,674 46,110 (12,840 ) Foreign currency exchange rate change 0 0 (6,947 ) (2,262 ) Benefits paid (2,573 ) (2,705 ) (1,390 ) (1,336 ) Plan participant’s contributions 0 0 80 88 Business combinations 1,353 0 0 138 Divestitures (251 ) (3,396 ) 0 0 Plan amendments 0 268 (883 ) 0 Benefit obligation at end of year 86,793 97,030 110,521 99,912 Change in plan assets: Fair value of plan assets at beginning of year 104,844 115,864 62,042 87,009 Actual return on plan assets 10,200 (2,043 ) 21,074 (109 ) Employer contribution 3,040 3,072 10,820 1,456 Benefits paid (2,136 ) (2,227 ) (1,296 ) (1,265 ) Plan participant’s contributions 0 0 80 88 Business combinations 0 0 0 0 Divestitures (84 ) (1,610 ) 0 0 Foreign currency exchange rate change 0 0 (5,711 ) (1,999 ) Fair value of plan assets at end of year 115,864 113,056 87,009 85,180 The funded status of the plans ¥ 29,071 ¥ 16,026 ¥ (23,512 ) ¥ (14,732 ) Amount recognized in the consolidated balance sheets consists of: Prepaid benefit cost included in other assets ¥ 42,376 ¥ 28,848 ¥ 8 ¥ 0 Accrued benefit liability included in other liabilities (13,305 ) (12,822 ) (23,520 ) (14,732 ) Net amount recognized ¥ 29,071 ¥ 16,026 ¥ (23,512 ) ¥ (14,732 ) Amount recognized in accumulated other comprehensive income (loss), pre-tax, at March 31, 2015 and 2016 consisted of: Millions of yen Japanese plans Overseas plans 2015 2016 2015 2016 Net prior service credit ¥ 5,127 ¥ 4,110 ¥ 1,074 ¥ 959 Net actuarial loss (9,602 ) (25,125 ) (26,674 ) (17,150 ) Net transition obligation (140 ) (91 ) (19 ) (14 ) Total recognized in accumulated other comprehensive loss, pre-tax ¥ (4,615 ) ¥ (21,106 ) ¥ (25,619 ) ¥ (16,205 ) The estimated portions of the net prior service credit, net actuarial loss and net transition obligation above that will be recognized as a component of net pension cost (gain) of Japanese pension plans in fiscal 2017 are ¥(916) million, ¥936 million and ¥45 million, respectively, a component of net pension cost (gain) of overseas pension plans in fiscal 2017 are ¥(102) million, ¥663 million and ¥3 million, respectively. The accumulated benefit obligations for all Japanese defined benefit pension plans were ¥79,178 million and ¥86,744 million, respectively, at March 31, 2015 and 2016. The accumulated benefit obligations for all overseas defined benefit pension plans were ¥98,634 million and ¥89,425 million, respectively, at March 31, 2015 and 2016. In Japanese pension plans, the aggregate projected benefit obligations, aggregate accumulated benefit obligations and aggregate fair values of plan assets for the plans with the accumulated benefit obligations in excess of plan assets were ¥21,279 million, ¥21,061 million and ¥8,031 million, respectively, at March 31, 2015 and ¥19,351 million, ¥18,822 million and ¥6,529 million, respectively, at March 31, 2016. In overseas pension plans, the aggregate projected benefit obligations, aggregate accumulated benefit obligations and aggregate fair values of plan assets for the plans with the accumulated benefit obligations in excess of plan assets were ¥110,498 million, ¥98,621 million and ¥86,978 million, respectively, at March 31, 2015 and ¥99,715 million, ¥89,407 million and ¥85,151 million, respectively, at March 31, 2016. Net pension cost of the plans for fiscal 2014, 2015 and 2016 consists of the following: Millions of yen 2014 2015 2016 Japanese plans: Service cost ¥ 3,391 ¥ 4,415 ¥ 4,401 Interest cost 1,139 1,159 995 Expected return on plan assets (2,047 ) (2,351 ) (2,575 ) Amortization of prior service credit (1,259 ) (927 ) (928 ) Amortization of net actuarial loss 777 502 (15 ) Amortization of transition obligation 53 53 49 Net periodic pension cost ¥ 2,054 ¥ 2,851 ¥ 1,927 Overseas plans: Service cost ¥ 1,654 ¥ 2,460 ¥ 3,856 Interest cost 1,684 2,251 1,747 Expected return on plan assets (2,389 ) (3,857 ) (4,584 ) Amortization of prior service credit (3 ) (51 ) (113 ) Amortization of net actuarial loss 60 215 1,336 Amortization of transition obligation 3 5 3 Net periodic pension cost ¥ 1,009 ¥ 1,023 ¥ 2,245 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for fiscal 2014, 2015 and 2016 are summarized as follows: Millions of yen 2014 2015 2016 Japanese plans: Current year actuarial gain (loss) ¥ 1,870 ¥ 8,028 ¥ (15,417 ) Amortization of net actuarial loss 777 502 (15 ) Prior service credit due to amendments 743 0 (88 ) Amortization of prior service credit (1,259 ) (927 ) (928 ) Amortization of transition obligation 53 53 49 Plan curtailments and settlements 0 0 (92 ) Total recognized in other comprehensive income (loss), pre-tax ¥ 2,184 ¥ 7,656 ¥ (16,491 ) Overseas plans: Current year actuarial gain (loss) ¥ 2,447 ¥ (28,730 ) ¥ 7,881 Amortization of net actuarial loss 60 215 1,336 Prior service credit due to amendments 344 843 0 Amortization of prior service credit (3 ) (51 ) (113 ) Amortization of transition obligation 3 5 3 Foreign currency exchange rate change (7 ) 1,065 307 Total recognized in other comprehensive income (loss), pre-tax ¥ 2,844 ¥ (26,653 ) ¥ 9,414 The Company and certain subsidiaries use March 31 as a measurement date for all of our material plans. Significant assumptions of Japanese pension plans and overseas pension plans used to determine these amounts are as follows: Japanese plans 2014 2015 2016 Weighted-average assumptions used to determine benefit obligations at March 31: Discount rate 1.4 % 1.2 % 0.7 % Rate of increase in compensation levels 5.1 % 4.8 % 4.4 % Weighted-average assumptions used to determine net periodic pension cost for years ended March 31: Discount rate 1.8 % 1.4 % 1.2 % Rate of increase in compensation levels 6.0 % 5.1 % 4.8 % Expected long-term rate of return on plan assets 2.2 % 2.3 % 2.3 % Overseas plans 2014 2015 2016 Weighted-average assumptions used to determine benefit obligations at March 31: Discount rate 3.5 % 1.5 % 1.9 % Rate of increase in compensation levels 2.8 % 2.8 % 2.8 % Weighted-average assumptions used to determine net periodic pension cost for years ended March 31: Discount rate 4.3 % 3.5 % 1.5 % Rate of increase in compensation levels 0.6 % 2.8 % 2.8 % Expected long-term rate of return on plan assets 5.6 % 5.2 % 5.5 % The Company and certain subsidiaries determine the expected long-term rate of return on plan assets annually based on the composition of the pension asset portfolios and the expected long-term rate of return on these portfolios. The expected long-term rate of return is designed to approximate the long-term rate of return actually earned on the plans’ assets over time to ensure that funds are available to meet the pension obligations that result from the services provided by employees. The Company and certain subsidiaries use a number of factors to determine the expected rate of return, including actual historical returns on the asset classes of the plans’ portfolios and independent projections of returns of the various asset classes. The Company and certain subsidiaries’ investment policies are designed to ensure adequate plan assets are available to provide future payments of pension benefits to eligible participants. The Company and certain subsidiaries formulate a policy portfolio appropriate to produce the expected long-term rate of return on plan assets and to ensure that plan assets are allocated under this policy portfolio. The Company and certain subsidiaries periodically have an external consulting firm monitor the results of actual return and revise the policy portfolio if necessary. The fair value of Japanese pension plan assets at March 31, 2015 and 2016, by asset category, are as follows. The three levels of input used to measure fair value are described in Note 2 “Fair Value Measurement.” Millions of yen March 31, 2015 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Japan Pooled funds*1 ¥ 16,572 ¥ 0 ¥ 16,572 ¥ 0 Other than Japan Pooled funds*2 19,717 0 19,717 0 Debt securities: Japan Pooled funds*3 29,106 0 29,106 0 Other than Japan Pooled funds*4 16,933 0 16,933 0 Other assets: Life insurance company general accounts*5 23,395 0 23,395 0 Others*6 10,141 0 10,141 0 ¥ 115,864 ¥ 0 ¥ 115,864 ¥ 0 *1 These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥39 million and units of ORIX JREIT Inc. in the amounts of ¥277 million at March 31, 2015. *2 These funds invest in listed shares. *3 These funds invest approximately 70% in Japanese government bonds, approximately 10% in Japanese municipal bonds, and approximately 20% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥23 million and investment corporation bonds of ORIX JREIT Inc. in the amounts of ¥16 million at March 31, 2015. *4 These funds invest entirely in foreign government bonds. *5 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *6 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. At March 31, 2015, our policy for the portfolio of plans consists of three major components: approximately 30% is invested in equity securities, approximately 40% is invested in debt securities and approximately 30% is invested in other assets, primarily consisting of investments in life insurance company general accounts. Millions of yen March 31, 2016 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Japan Pooled funds*1 ¥ 15,663 ¥ 0 ¥ 15,663 ¥ 0 Other than Japan Pooled funds*2 17,829 0 17,829 0 Debt securities: Japan Pooled funds*3 22,324 0 22,324 0 Other than Japan Pooled funds*4 21,760 0 21,760 0 Other assets: Life insurance company general accounts*5 26,300 0 26,300 0 Others*6 9,180 0 9,180 0 ¥ 113,056 ¥ 0 ¥ 113,056 ¥ 0 *1 These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥42 million at March 31, 2016. *2 These funds invest in listed shares. *3 These funds invest approximately 70% in Japanese government bonds, approximately 10% in Japanese municipal bonds, and approximately 20% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥948 million at March 31, 2016. *4 These funds invest entirely in foreign government bonds. *5 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *6 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. At March 31, 2016, our policy for the portfolio of plans consists of three major components: approximately 30% is invested in equity securities, approximately 40% is invested in debt securities and approximately 30% is invested in other assets, primarily consisting of investments in life insurance company general accounts. Level 2 assets are comprised principally of pooled funds that invest in equity, debt securities and hedge funds and investments in life insurance company general accounts. Pooled funds are valued at the net asset value per share at the measurement date. They are not redeemable at the net asset value per share at the measurement date, but they are redeemable at the net asset value per share in the near term after the measurement date. Investments in life insurance company general accounts are valued at conversion value. The fair value of overseas pension plan assets at March 31, 2015 and 2016, by asset category, are as follows. The three levels of input used to measure fair value are described in Note 2 “Fair Value Measurement.” Millions of yen March 31, 2015 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Other than Japan Shares ¥ 33,001 ¥ 33,001 ¥ 0 ¥ 0 Pooled funds*1 70 0 70 0 Debt securities: Other than Japan Government bonds 27,853 27,853 0 0 Municipal bonds 4,855 0 4,855 0 Corporate bonds 20,314 20,314 0 0 Other assets: Life insurance company general accounts*2 196 0 196 0 Others*3 720 0 720 0 ¥ 87,009 ¥ 81,168 ¥ 5,841 ¥ 0 *1 These funds invest in listed shares. *2 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *3 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. At March 31, 2015, our policy for the portfolio of plans consists of two major components: approximately 40% is invested in equity securities and approximately 60% is invested in debt securities. Millions of yen March 31, 2016 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Other than Japan Shares ¥ 29,367 ¥ 29,367 ¥ 0 ¥ 0 Pooled funds*1 64 0 64 0 Debt securities: Other than Japan Government bonds 46,280 46,280 0 0 Municipal bonds 4,885 0 4,885 0 Corporate bonds 98 98 0 0 Other assets: Life insurance company general accounts*2 2,520 0 2,520 0 Others*3 1,966 0 1,966 0 ¥ 85,180 ¥ 75,745 ¥ 9,435 ¥ 0 *1 These funds invest in listed shares. *2 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *3 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. At March 31, 2016, our policy for the portfolio of plans consists of three major components: approximately 30% is invested in equity securities and approximately 60% is invested in debt securities and approximately 10% is invested in other assets, primarily consisting of investments in life insurance company general accounts. Each level into which assets are categorized is based on inputs used to measure the fair value of the assets. Level 1 assets are comprised principally of equity securities and debt securities, which are valued using unadjusted quoted market prices in active markets with sufficient volume and frequency of transactions. Level 2 assets are comprised principally of pooled funds that invest in equity, debt securities and hedge funds and investments in life insurance company general accounts. Pooled funds are valued at the net asset value per share at the measurement date. They are not redeemable at the net asset value per share at the measurement date but they are redeemable at the net asset value per share in the near term after the measurement date. Investments in life insurance company general accounts are valued at conversion value. The Company and certain subsidiaries expect to contribute ¥3,127 million to its Japanese pension plans and ¥1,577 million to its overseas pension plans during the year ending March 31, 2017. At March 31, 2016, the benefits expected to be paid in each of the next five fiscal years, and in the aggregate for the five years thereafter are as follows: Years ending March 31, Millions of yen Japanese plans Overseas plans 2017 ¥ 2,159 ¥ 1,488 2018 1,785 1,239 2019 1,916 1,301 2020 2,060 1,334 2021 2,165 1,330 2022-2026 14,055 7,757 Total ¥ 24,140 ¥ 14,449 The cost recognized for Japanese defined contribution pension plans of the Company and certain of its subsidiaries for fiscal 2014, 2015 and 2016 were ¥1,044 million, ¥1,248 million and ¥1,350 million, respectively. The cost recognized for overseas defined contribution pension plans of the Company and certain of its subsidiaries for fiscal 2014, 2015 and 2016 were ¥1,560 million, ¥2,526 million and ¥2,926 million, respectively. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Mar. 31, 2016 | |
Redeemable Noncontrolling Interests | 18. Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Beginning Balance ¥ 41,621 ¥ 53,177 ¥ 66,901 Adjustment of redeemable noncontrolling interests to redemption value 2,851 220 (7,557 ) Contribution to subsidiary 413 0 0 Transaction with noncontrolling interests 1,309 2,269 (3,606 ) Comprehensive income Net Income 4,108 4,970 819 Other comprehensive income Net change of foreign currency translation adjustments 4,099 9,295 919 Total other comprehensive income 4,099 9,295 919 Comprehensive income 8,207 14,265 1,738 Cash dividends (1,224 ) (3,030 ) (11,272 ) Property dividends 0 0 (3,776 ) Partial sale of the parent’s ownership interest in subsidiaries that results in the loss of control 0 0 (34,961 ) Ending Balance ¥ 53,177 ¥ 66,901 ¥ 7,467 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2016 | |
Stock-Based Compensation | 19. Stock-Based Compensation The Company has a number of stock-based compensation plans as incentive plans for directors, executive officers, corporate auditors and selected employees. Stock-option program Since fiscal 2006, the Company has granted stock acquisition rights with a vesting period between 1.75 and 1.92 years and an exercise period between 9.83 and 9.92 years from grant date. The acquisition rights were to purchase the Company’s common stock at a specified exercise price and were distributed to directors, executive officers, corporate auditors and certain employees of the Company, subsidiaries and capital tie-up companies such as affiliated companies. The Company did not grant stock options in fiscal 2014, 2015 and 2016. A summary of the Company’s stock acquisition rights is as follows: Years ended March 31, Exercise period Number of shares Exercise price* Yen 2006 From June 22, 2007 to June 21, 2015 4,774,000 1,891 2007 From June 21, 2008 to June 20, 2016 1,942,000 2,962 2008 From July 5, 2009 to June 22, 2017 1,449,800 3,101 2009 From July 18, 2010 to June 24, 2018 1,479,000 1,689 * The number of shares and exercise price of the granted options were adjusted for the 10-for-1 stock split implemented on April 1, 2013. For the stock-option programs, the exercise prices, which are determined by a formula linked to the price of the Company’s common stock on the Tokyo Stock Exchange, are equal or greater than the fair market value of the Company’s common stock at the grant dates. The following table summarizes information about the activity of these stock options for fiscal 2016: Number of shares*2 Weighted average exercise price*1*2 Weighted average remaining contractual life Aggregate intrinsic value Yen Years Millions of yen Outstanding at beginning of the year 6,347,200 ¥ 2,281 Exercised (414,300 ) 1,835 Forfeited or expired (2,852,400 ) 1,989 Outstanding at end of year 3,080,500 2,612 1.08 ¥ 0 Exercisable at end of year 3,080,500 ¥ 2,612 1.08 ¥ 0 *1 The exercise price of the granted options was adjusted in July 2009 for the issuance of new 18 million shares. *2 The number of shares and exercise price of the granted options were adjusted for the 10-for-1 stock split implemented on April 1, 2013. The Company received ¥863 million, ¥1,014 million and ¥822 million in cash from the exercise of stock options during fiscal 2014, 2015 and 2016, respectively. The total intrinsic value of options exercised during fiscal 2014, 2015 and 2016 was ¥403 million, ¥378 million and ¥39 million, respectively. In fiscal 2014, 2015 and 2016, the Company did not recognize any stock-based compensation costs of its stock-option program. As of March 31, 2016, the Company had no unrecognized compensation costs. Stock compensation program The Company maintains a stock compensation program for directors, executive officers and group executives of the Company. In July 2014, the company changed the way of provision of the compensation for retiree to provide these shares through “The Board Incentive Plan Trust (“ the trust”)” by a resolution of the Compensation Committee. The trust purchases the Company’s common shares including future granting shares by an entrusted fund which the Company set in advance. The Company holds those shares as entrusted assets, separately from other treasury stock which the Company holds. Under the program, points are granted annually to directors, executive officers and group executives of the Company based upon the prescribed standards of the Company. Upon retirement, eligible directors, executive officers and group executives receive a certain number of the Company’s common shares calculated by translating each point earned by that retiree to one common share. In fiscal 2016, the Company granted 342,500 points, and 457,583 points were settled for individuals who retired during fiscal 2016. Total points outstanding under the stock compensation program as of March 31, 2016 were 1,642,959 points. The points were adjusted for the 10-for-1 stock split implemented on April 1, 2013. During fiscal 2014, 2015 and 2016, the Company recognized stock-based compensation costs of its stock compensation program in the amount of ¥609 million, ¥818 million and ¥646 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) | 20. Accumulated Other Comprehensive Income (Loss) Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders in fiscal 2014, 2015 and 2016 are as follows: Millions of yen Net unrealized Defined Foreign Net unrealized Accumulated Balance at March 31, 2013 ¥ 28,974 ¥ (9,587 ) ¥ (53,759 ) ¥ (1,891 ) ¥ (36,263 ) Net unrealized gains on investment in securities, net of tax of ¥(9,529) million 18,566 18,566 Reclassification adjustment included in net income, net of tax of ¥4,225 million (7,963 ) (7,963 ) Defined benefit pension plans, net of tax 3,848 3,848 Reclassification adjustment included in net income, net of tax of ¥91 million (278 ) (278 ) Foreign currency translation adjustments, net of tax 35,425 35,425 Reclassification adjustment included in net income, net of tax of ¥(17) million 1,503 1,503 Net unrealized gains on derivative instruments, net of tax 572 572 Reclassification adjustment included in net income, net of tax of ¥(298) million 915 915 Total other comprehensive income 10,603 3,570 36,928 1,487 52,588 Less: Other Comprehensive Income Attributable to the Noncontrolling Interest 926 213 11,019 30 12,188 Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 4,099 0 4,099 Balance at March 31, 2014 ¥ 38,651 ¥ (6,230 ) ¥ (31,949 ) ¥ (434 ) ¥ 38 Net unrealized gains on investment in securities, net of tax of ¥(15,416) million 34,914 34,914 Reclassification adjustment included in net income, net of tax of ¥8,501 million (25,047 ) (25,047 ) Defined benefit pension plans, net of tax (14,834 ) (14,834 ) Reclassification adjustment included in net income, net of tax of ¥85 million (118 ) (118 ) Foreign currency translation adjustments, net of tax 38,309 38,309 Reclassification adjustment included in net income, net of tax of ¥120 million (1,154 ) (1,154 ) Net unrealized losses on derivative instruments, net of tax of ¥971 million (2,985 ) (2,985 ) Reclassification adjustment included in net income, net of tax of ¥(716) million 2,424 2,424 Total other comprehensive income (loss) 9,867 (14,952 ) 37,155 (561 ) 31,509 Transaction with noncontrolling interests 0 0 96 0 96 Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (1,812 ) (1,734 ) (4,424 ) (55 ) (8,025 ) Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 9,295 0 9,295 Balance at March 31, 2015 ¥ 50,330 ¥ (19,448 ) ¥ 431 ¥ (940 ) ¥ 30,373 Millions of yen Net unrealized Defined Foreign currency Net unrealized Accumulated Balance at March 31, 2015 ¥ 50,330 ¥ (19,448 ) ¥ 431 ¥ (940 ) ¥ 30,373 Net unrealized gains on investment in securities, net of tax of ¥(3,579) million 14,593 14,593 Reclassification adjustment included in net income, net of tax of ¥9,582 million (17,714 ) (17,714 ) Defined benefit pension plans, net of tax of ¥2,969 million (4,440 ) (4,440 ) Reclassification adjustment included in net income, net of tax of ¥(15) million 317 317 Foreign currency translation adjustments, net of tax of ¥2,921 million (27,763 ) (27,763 ) Reclassification adjustment included in net income, net of tax of ¥0 million 806 806 Net unrealized losses on derivative instruments, net of tax of ¥2,037 million (4,901 ) (4,901 ) Reclassification adjustment included in net income, net of tax of ¥(341) million 838 838 Total other comprehensive income (loss) (3,121 ) (4,123 ) (26,957 ) (4,063 ) (38,264 ) Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest 24 313 (2,679 ) (246 ) (2,588 ) Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 919 0 919 Balance at March 31, 2016 ¥ 47,185 ¥ (23,884 ) ¥ (24,766 ) ¥ (4,757 ) ¥ (6,222 ) Amounts reclassified to net income from accumulated other comprehensive income (loss) for fiscal 2014, 2015 and 2016 are as follows: March 31, 2014 Details about accumulated other comprehensive Reclassification Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 10,902 Gains on investment securities and dividends Sales of investment securities 3,262 Life insurance premiums and related investment income Amortization of investment securities 858 Finance revenues Amortization of investment securities (532 ) Life insurance premiums and related investment income Others (2,302 ) Write-downs of securities, and other 12,188 Total before tax (4,225 ) Tax expenses or benefits ¥ 7,963 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 1,262 See Note 17 “Pension Plans” Amortization of net actuarial loss (837 ) See Note 17 “Pension Plans” Amortization of transition obligation (56 ) See Note 17 “Pension Plans” 369 Total before tax (91 ) Tax expenses or benefits ¥ 278 Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (1,520 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (1,520 ) Total before tax 17 Tax expenses or benefits ¥ (1,503 ) Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 39 Finance revenues/Interest expense Foreign exchange contracts 773 Other (income) and expense, net Foreign currency swap agreements (2,025 ) Finance revenues/Interest expense/ Other (income) and expense, net (1,213 ) Total before tax 298 Tax expenses or benefits ¥ (915 ) Net of tax March 31, 2015 Details about accumulated other comprehensive income components Reclassification Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 32,733 Gains on investment securities and dividends Sales of investment securities 5,599 Life insurance premiums and related investment income Amortization of investment securities 29 Finance revenues Amortization of investment securities (1,960 ) Life insurance premiums and related investment income Others (2,853 ) Write-downs of securities and other 33,548 Total before tax (8,501 ) Tax expenses or benefits ¥ 25,047 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 978 See Note 17 “Pension Plans” Amortization of net actuarial loss (717 ) See Note 17 “Pension Plans” Amortization of transition obligation (58 ) See Note 17 “Pension Plans” 203 Total before tax (85 ) Tax expenses or benefits ¥ 118 Net of tax Foreign currency translation adjustments Sales or liquidation ¥ 1,274 Gains on sales of subsidiaries and affiliates and liquidation losses, net 1,274 Total before tax (120 ) Tax expenses or benefits ¥ 1,154 Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 32 Finance revenues/Interest expense Foreign exchange contracts 1,356 Other (income) and expense, net Foreign currency swap agreements (4,528 ) Finance revenues/Interest expense/ Other (income) and expense, net (3,140 ) Total before tax 716 Tax expenses or benefits ¥ (2,424 ) Net of tax March 31, 2016 Details about accumulated other comprehensive Reclassification Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 25,673 Gains on investment securities and dividends Sales of investment securities 6,453 Life insurance premiums and related investment income Amortization of investment securities (182 ) Finance revenues Amortization of investment securities (1,584 ) Life insurance premiums and related investment income Others (3,064 ) Write-downs of securities and other 27,296 Total before tax (9,582 ) Tax expenses or benefits ¥ 17,714 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 1,041 See Note 17 “Pension Plans” Amortization of net actuarial loss (1,321 ) See Note 17 “Pension Plans” Amortization of transition obligation (52 ) See Note 17 “Pension Plans” (332 ) Total before tax 15 Tax expenses or benefits ¥ (317 ) Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (806 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (806 ) Total before tax 0 Tax expenses or benefits ¥ (806 ) Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ (27 ) Finance revenues/Interest expense Foreign exchange contracts 2,608 Other (income) and expense, net Foreign currency swap agreements (3,760 ) Finance revenues/Interest expense/ Other (income) and expense, net (1,179 ) Total before tax 341 Tax expenses or benefits ¥ (838 ) Net of tax Comprehensive income (loss) and its components attributable to ORIX Corporation and noncontrolling interests have been reported, net of tax, in the consolidated statements of changes in equity, and information about comprehensive income (loss) and its components attributable to redeemable noncontrolling interests is provided in Note 18 “Redeemable Noncontrolling Interests.” Total comprehensive income (loss) and its components have been reported, net of tax, in the consolidated statements of comprehensive income. |
ORIX Corporation Shareholders'
ORIX Corporation Shareholders' Equity | 12 Months Ended |
Mar. 31, 2016 | |
ORIX Corporation Shareholders' Equity | 21. ORIX Corporation Shareholders’ Equity Changes in the number of shares issued in fiscal 2014, 2015 and 2016 are as follows: Number of shares 2014 2015 2016 Beginning balance 1,248,714,760 1,322,777,628 1,323,644,528 Exercise of stock options 804,300 866,900 414,300 Conversion of convertible bonds 73,258,568 0 0 Ending balance 1,322,777,628 1,323,644,528 1,324,058,828 The Japanese Companies Act (the “Act”) provides that an amount equivalent to 10% of any dividends resulting from appropriation of retained earnings be appropriated to the legal reserve until the aggregate amount of the additional paid-in capital and the legal reserve equals 25% of the issued capital. The Act also provides that both additional paid-in capital and the legal reserve are not available for dividends but may be capitalized or may be reduced by resolution of the general meeting of shareholders. However, if specified in the Company’s articles of incorporation, dividends can be declared by the Board of Directors instead of the general meeting of shareholders. In accordance with this, the Board of Directors of the Company resolved in May 2016 that a total of ¥31,141 million dividends shall be distributed to the shareholders of record as of March 31, 2016. The liability for declared dividends and related impact on total equity is accounted for in the period of such Board of Directors’ resolution. The Act provides that at least one-half of amounts paid for new shares are included in common stock when they are issued. In conformity therewith, the Company has divided the principal amount of bonds converted into common stock and proceeds received from the issuance of common stock, including the exercise of warrants and stock acquisition rights, equally between common stock and additional paid-in capital, and set off expenses related to the issuance from the additional paid-in capital. The amount available for dividends under the Act is calculated based on the amount recorded in the Company’s non-consolidated financial statements prepared in accordance with accounting principles generally accepted in Japan. As a result, the amount available for dividends is ¥567,647 million as of March 31, 2016. Retained earnings at March 31, 2016 include ¥47,949 million relating to equity in undistributed earnings of the companies accounted for by the equity method. As of March 31, 2016, the restricted net assets of certain subsidiaries, which include regulatory capital requirements mainly for banking operations and life insurance of ¥23,294 million, do not exceed 25% of consolidated net assets. |
Gains on Investment Securities
Gains on Investment Securities and Dividends | 12 Months Ended |
Mar. 31, 2016 | |
Gains on Investment Securities and Dividends | 22. Gains on Investment Securities and Dividends Gains on investment securities and dividends in fiscal 2014, 2015 and 2016 consist of the following: Millions of yen 2014 2015 2016 Net gains on investment securities ¥ 19,412 ¥ 50,617 ¥ 31,134 Dividends income, other 7,769 5,778 4,652 ¥ 27,181 ¥ 56,395 ¥ 35,786 Trading activities |
Life Insurance Operations
Life Insurance Operations | 12 Months Ended |
Mar. 31, 2016 | |
Life Insurance Operations | 23. Life Insurance Operations Life insurance premiums and related investment income in fiscal 2014, 2015 and 2016 consist of the following: Millions of yen 2014 2015 2016 Life insurance premiums ¥ 145,464 ¥ 186,547 ¥ 209,120 Life insurance related investment income (loss) 9,942 164,946 (19,699 ) ¥ 155,406 ¥ 351,493 ¥ 189,421 Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For fiscal 2015 and 2016, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows: Millions of yen 2015 2016 Reinsurance benefits ¥ 2,438 ¥ 2,298 Reinsurance premiums (11,430 ) (11,530 ) The benefits and expenses of life insurance operations included in life insurance costs in the consolidated statements of income are recognized so as to associate with earned premiums over the life of contracts. This association is accomplished by means of the provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs (principally commissions and certain other expenses relating to policy issuance and underwriting). Amortization charged to income for fiscal 2014, 2015 and 2016 amounted to ¥9,701 million, ¥11,917 million and ¥12,585 million, respectively. Life insurance premiums and related investment income include net realized and unrealized gains or losses from investment assets under management on behalf of variable annuity and variable life policyholders and, net gains or losses from derivative contracts, which consist of gains or losses from futures, foreign exchange contracts and options held, entered to economically hedge a portion of the minimum guarantee risk relating to variable annuity and variable life insurance contracts. In addition, life insurance costs include the net amount of the changes in fair value of the variable annuity and variable life insurance contracts elected for the fair value option and insurance costs recognized for insurance and annuity payouts as a result of insured events. Certain subsidiaries have elected the fair value option for certain reinsurance contracts to partially offset the changes in fair value recognized in earnings of the policy liabilities and policy account balances attributable to the changes in the minimum guarantee risks of the variable annuity and variable life insurance contracts, and the changes in the fair value of the reinsurance contracts were recorded in life insurance costs. The above mentioned gains or losses relating to variable annuity and variable life insurance contracts for fiscal 2015 and 2016 are as follows: Millions of yen 2015 2016 Life insurance premiums and related investment income : Net realized and unrealized gains or losses from investment assets ¥ 174,602 ¥ (33,318 ) Net gains or losses from derivative contracts : (28,227 ) 1,633 Futures (10,216 ) 1,116 Foreign exchange contracts (1,680 ) 496 Options held (16,331 ) 21 Life insurance costs : Changes in the fair value of the policy liabilities and policy account balances ¥ (510,961 ) ¥ (459,482 ) Insurance costs recognized for insurance and annuity payouts as a result of insured events 611,663 418,731 Changes in the fair value of the reinsurance contracts 36,072 (1,817 ) |
Sales of Goods and Real Estate
Sales of Goods and Real Estate | 12 Months Ended |
Mar. 31, 2016 | |
Sales of Goods and Real Estate | 24. Sales of Goods and Real Estate The following table provides information about sales of goods and real estate and costs of goods and real estate sold for fiscal 2014, 2015 and 2016: Millions of yen 2014 2015 2016 Sales of goods ¥ 125,808 ¥ 352,228 ¥ 707,502 Real estate sales 54,076 98,641 126,508 Sales of goods and real estate ¥ 179,884 ¥ 450,869 ¥ 834,010 Costs of goods sold ¥ 107,047 ¥ 308,723 ¥ 641,715 Costs of real estate sold 55,942 93,298 106,544 Costs of goods and real estate sold ¥ 162,989 ¥ 402,021 ¥ 748,259 |
Services Income and Services Ex
Services Income and Services Expense | 12 Months Ended |
Mar. 31, 2016 | |
Services Income and Services Expense | 25. Services Income and Services Expense The following table provides information about services income and services expense for fiscal 2014, 2015 and 2016: Millions of yen 2014 2015 2016 Revenues from asset management and servicing ¥ 126,492 ¥ 214,372 ¥ 201,470 Revenues from automobile related business 63,072 70,442 76,134 Revenues from facilities management related business 111,228 115,177 106,632 Revenues from environment and energy related business 49,552 62,286 85,271 Revenues from real estate management and contract work 28,243 171,562 174,170 Revenues from commissions for M&A advisory services, financing advice, financial restructuring advisory services and related services 58,892 78,342 22,983 Other 53,036 53,367 68,526 Services income ¥ 490,515 ¥ 765,548 ¥ 735,186 Expenses from asset management and servicing ¥ 36,150 ¥ 52,825 ¥ 55,283 Expenses from automobile related business 39,767 43,163 46,424 Expenses from facilities management related business 93,521 99,582 90,949 Expenses from environment and energy related business 41,712 51,436 68,888 Expenses from real estate management and contract work 22,626 152,447 156,075 Other 26,502 26,223 27,768 Services expense ¥ 260,278 ¥ 425,676 ¥ 445,387 |
Write-Downs of Long-Lived Asset
Write-Downs of Long-Lived Assets | 12 Months Ended |
Mar. 31, 2016 | |
Write-Downs of Long-Lived Assets | 26. Write-Downs of Long-Lived Assets In accordance with ASC 360 (“Property, Plant, and Equipment”), the Company and its subsidiaries perform tests for recoverability on assets for which events or changes in circumstances indicated that the assets might be impaired. The Company and its subsidiaries consider an asset’s carrying amount as not recoverable when such carrying amount exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. The net carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount. The Company and its subsidiaries determine the fair value using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers, based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. During fiscal 2014, 2015 and 2016, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥26,742 million, ¥34,887 million and ¥13,448 million, respectively, which are reflected as write-downs of long-lived assets and income from discontinued operations. Of these amounts, ¥23,421 million, ¥34,887 million and ¥13,448 million are reflected as write-downs of long-lived assets in the accompanying consolidated statements of income for fiscal 2014, 2015 and 2016, respectively. Breakdowns of these amounts by segment are provided in Note 34 “Segment Information.” The details of significant write-downs are as follows. Office Buildings Condominiums Commercial Facilities Other Than Office Buildings Land undeveloped or under construction Others |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations | 27. Discontinued Operations In April 2014, Accounting Standards Update 2014-08 (“Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”—ASC 205 (“Presentation of Financial Statements”) and ASC 360 (“Property, Plant, and Equipment”)) was issued. This Update requires an entity to report a disposal or a classification as held for sale of a component of an entity or a group of components of an entity in discontinued operations if it represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The Company and its subsidiaries early adopted this Update on April 1, 2014. In accordance with this Update, the Company and its subsidiaries report a disposal of a component or a group of components of the Company and its subsidiaries in discontinued operations if the disposal represents a strategic shift which has (or will have) a major effect on the Company and its subsidiaries’ operations and financial results when the component or group of components is disposed by sale or classified as held for sale on or after April 1, 2014. During fiscal 2015 and 2016, there was no disposal or classification as held for sale of a component or a group of components which represents a strategic shift which has (or will have) a major effect on the Company and its subsidiaries’ operations and financial results. Prior to these amendments, ASC 205-20 (“Presentation of Financial Statements—Discontinued Operations”) required that the Company and its subsidiaries reclassify the operations sold or disposed of, or to be disposed of by sale without significant continuing involvement in the operations to discontinued operations. During fiscal 2014, the Company and its subsidiaries reported gains on sales and the results of operations of subsidiaries, business units, and certain rental properties, which have been sold or are to be disposed of by sale, as income from discontinued operations in the accompanying consolidated statements of income in accordance with ASC 205-20 prior to the amendments. Accounting Standards Update 2014-08 does not apply retrospectively to a disposal or a classification as held for sale of a component or a group of components of the Company and its subsidiaries which have previously been reported in the financial statements. Accordingly, during fiscal 2015, the Company and its subsidiaries continue to report gains on sales and the results of operations of subsidiaries and business units, which were classified as held for sale at March 31, 2014, as income from discontinued operations in the accompanying consolidated statements of income in accordance with ASC 205-20 prior to the early adoption of the update. The Company liquidated a subsidiary that operated a hotel and the Company has determined to wind up a subsidiary that operates corporate finance business overseas due to a state of substantially complete liquidation during fiscal 2014. As a result, a loss of ¥1,600 million was recognized during fiscal 2014. During fiscal 2014, the Company has determined to sell the food business unit of a subsidiary, which is composed of the food service business unit and the food business unit. During fiscal 2015, the operating income from the food business unit and the gain were ¥463 million. The Company has completed the sale of the food business unit of a subsidiary during fiscal 2015 and there are no amounts of assets or liabilities included in the accompanying consolidated balance sheets as of March 31, 2015 and 2016. The Company and its subsidiaries own various real estate properties, including commercial and office buildings, for rental operations. In fiscal 2014, the Company and its subsidiaries recognized ¥16,200 million of aggregated gains on sales of such real estate properties. In fiscal 2015 and 2016, the Company and its subsidiaries did not recognize any gains or losses on sales of such real estate properties reported as income from discontinued operations. With respect to the real estate properties classified as held for sale at March 31, 2015 included in the accompanying consolidated balance sheets are investment in operating leases of ¥24,619 million, property under facility operations of ¥2,873 million and other assets of ¥689 million. With respect to the real estate properties and transportation equipment classified as held for sale at March 31, 2016, included in the accompanying consolidated balance sheets are investment in operating leases of ¥70,300 million, property under facility operations of ¥2,811 million and other assets of ¥9,959 million. Discontinued operations in fiscal 2014 and 2015 consist of the following. During fiscal 2016, there was no income from discontinued operations. Millions of yen 2014 2015 Revenues ¥ 26,607 ¥ 2,214 Income from discontinued operations, net* 12,182 463 Provision for income taxes (4,681 ) (166 ) Discontinued operations, net of applicable tax effect ¥ 7,501 ¥ 297 * Income from discontinued operations, net includes aggregate gains on sales of subsidiaries, business units and rental properties and liquidation on losses. The amount of such gains or losses in fiscal 2014 and 2015 were net gain of ¥14,600 million and ¥362 million, respectively. |
Per Share Data
Per Share Data | 12 Months Ended |
Mar. 31, 2016 | |
Per Share Data | 28. Per Share Data Reconciliation of the differences between basic and diluted earnings per share (EPS) in fiscal 2014, 2015 and 2016 is as follows: In fiscal 2014, 2015 and 2016 the diluted EPS calculation excludes stock options for 6,815 thousand shares, 6,499 thousand shares and 4,370 thousand shares, as they were antidilutive. Millions of yen 2014 2015 2016 Income attributable to ORIX Corporation shareholders from continuing operations ¥ 180,069 ¥ 234,651 ¥ 260,169 Effect of dilutive securities Expense related to convertible bond 265 0 0 Income from continuing operations for diluted EPS computation ¥ 180,334 ¥ 234,651 ¥ 260,169 Thousands of shares 2014 2015 2016 Weighted-average shares 1,268,081 1,309,144 1,309,136 Effect of dilutive securities Conversion of convertible bond 40,057 0 0 Exercise of stock options 2,117 1,865 1,377 Weighted-average shares for diluted EPS computation 1,310,255 1,311,009 1,310,513 Yen 2014 2015 2016 Earnings per share for income attributable to ORIX Corporation shareholders from continuing operations: Basic ¥ 142.00 ¥ 179.24 ¥ 198.73 Diluted 137.63 178.99 198.52 The Company’s shares held through the Board Incentive Plan Trust are included in the number of treasury stock shares to be deducted in calculation of the weighted-average shares for EPS computation (1,159,738 shares and 1,984,512 shares in fiscal 2015 and 2016). |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 12 Months Ended |
Mar. 31, 2016 | |
Derivative Financial Instruments and Hedging | 29. Derivative Financial Instruments and Hedging Risk management policy The Company and its subsidiaries manage interest rate risk through asset and liability management systems. The Company and its subsidiaries use derivative financial instruments to hedge interest rate risk and avoid changes in interest rates that could have a significant adverse effect on the Company’s results of operations. As a result of interest rate changes, the fair value and/or cash flow of interest sensitive assets and liabilities will fluctuate. However, such fluctuation will generally be offset by using derivative financial instruments as hedging instruments. Derivative financial instruments that the Company and its subsidiaries use as part of the interest risk management include interest rate swaps. The Company and its subsidiaries utilize foreign currency borrowings, foreign exchange contracts and foreign currency swap agreements to hedge exchange rate risk that are associated with certain transactions and investments denominated in foreign currencies. Similarly, overseas subsidiaries generally structure their liabilities to match the currency-denomination of assets in each region. A certain subsidiary holds option agreements, futures and foreign exchange contracts for the purpose of economic hedges against minimum guarantee risk of variable annuity and variable life insurance contracts. By using derivative instruments, the Company and its subsidiaries are exposed to credit risk in the event of nonperformance by counterparties. The Company and its subsidiaries attempt to manage the credit risk by carefully evaluating the content of transactions and the quality of counterparties in advance and regularly monitoring the amount of notional principal, fair value, type of transaction and other factors pertaining to each counterparty. (a) Cash flow hedges The Company and its subsidiaries designate interest rate swap agreements, foreign currency swap agreements and foreign exchange contracts as cash flow hedges for variability of cash flows originating from floating rate borrowings and forecasted transactions and for exchange fluctuations. Net gains (losses) before deducting applicable taxes on derivative contracts were reclassified from accumulated other comprehensive income (loss) into earnings when earnings were affected by the variability in cash flows of the designated hedged item. The amounts of these net gains (losses) after deducting applicable taxes were net losses of ¥915 million, ¥2,424 million and ¥838 million during fiscal 2014, 2015 and 2016, respectively. The amount of net gains (losses), which represent the ineffectiveness of cash flow hedges, ¥269 million of losses, ¥510 million of gains and ¥111 million of gains were recorded in earnings for fiscal 2014, 2015 and 2016, respectively. The amount of net derivative gains, ¥1,465 million, included in accumulated other comprehensive income (loss), net of applicable income taxes at March 31, 2016 will be reclassified into earnings within fiscal 2017. (b) Fair value hedges The Company and its subsidiaries use financial instruments designated as fair value hedges to hedge their exposure to interest rate risk and foreign currency exchange risk. The Company and its subsidiaries designate foreign currency swap agreements and foreign exchange contracts to minimize foreign currency exposures on lease receivables, loan receivables, borrowings and others, denominated in foreign currency. The Company and its subsidiaries designate interest rate swap to hedge interest rate exposure of the fair values of loan receivables. The Company and certain overseas subsidiaries, which issued medium-term notes or bonds with fixed interest rates, use interest rate swap agreements to hedge interest rate exposure of the fair values of these medium-term notes or bonds. In cases where the medium-term notes were denominated in other than the subsidiaries’ local currencies, foreign currency swap agreements are used to hedge foreign exchange rate exposure. A certain overseas subsidiary uses foreign currency long-term-debt to hedge foreign exchange rate exposure from unrecognized firm commitment. For fiscal 2014, 2015 and 2016, net losses of ¥20 million, net gains of ¥21 million and net gains of ¥1 million, respectively of hedge ineffectiveness associated with instruments designated as fair value hedges were recorded in earnings. (c) Hedges of net investment in foreign operations The Company uses foreign exchange contracts, borrowings and bonds denominated in the subsidiaries’ local currencies to hedge the foreign currency exposure of the net investment in overseas subsidiaries. The gains and losses of these hedging instruments were recorded in foreign currency translation adjustments, which is a part of other comprehensive income (loss). (d) Trading derivatives or derivatives not designated as hedging instruments Certain subsidiaries engage in trading activities involving various future contracts. Therefore the Company and its subsidiaries are at various risks such as share price fluctuation risk, interest rate risk and foreign currency exchange risk. The Company and its subsidiaries check that these risks are below a certain level by using internal indicators and determine whether such contracts should be continued or not. The Company and the subsidiaries entered into interest rate swap agreements, foreign currency swap agreements and foreign exchange contracts for risk management purposes which are not qualified for hedge accounting under ASC 815 (“Derivatives and Hedging”). A certain subsidiary holds option agreements, futures and foreign exchange contracts for the purpose of economic hedges against minimum guarantee risk of variable annuity and variable life insurance contracts. ASC 815-10-50 (“Derivatives and Hedging—Disclosures”) requires companies to disclose the fair value of derivative instruments and their gains (losses) in tabular format, as well as information about credit-risk-related contingent features in derivative agreements. The effect of derivative instruments on the consolidated statements of income, pre-tax, for fiscal 2014 is as follows. (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ 945 Finance revenues/Interest expense ¥ 39 — ¥ 0 Foreign exchange contracts (948 ) Other (income) and expense, net 773 — 0 Foreign currency swap agreements 594 Finance revenues/Interest expense/Other (income) and expense, net (2,025 ) Other (income) and expense, net 269 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (2,296 ) Finance revenues/Interest expense ¥ 2,276 Finance revenues/Interest expense Foreign exchange contracts (3,574 ) Other (income) and expense, net 3,574 Other (income) and expense, net Foreign currency swap agreements (2,896 ) Other (income) and expense, net 2,896 Other (income) and expense, net Foreign currency long-term-debt (1,609 ) Other (income) and expense, net 1,609 Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥(23,638) Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥(171 ) — ¥0 Borrowings and bonds in local currency (16,469) — 0 — 0 (4) Trading derivatives or derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 5 Other (income) and expense, net Futures (167 ) Gains on investment securities and dividends Foreign exchange contracts (406 ) Gains on investment securities and dividends Credit derivatives held/written (506 ) Other (income) and expense, net Options written and other (241 ) Other (income) and expense, net The effect of derivative instruments on the consolidated statements of income, pre-tax, for fiscal 2015 is as follows. (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (610 ) Finance revenues/Interest expense ¥ 32 — ¥ 0 Foreign exchange contracts (1,908 ) Other (income) and expense, net 1,356 — 0 Foreign currency swap agreements (1,438 ) Finance revenues/Interest expense/ Other (income) and expense, net (4,528 ) Other (income) and expense, net 510 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (1,298 ) Finance revenues/Interest expense ¥ 1,318 Finance revenues/Interest expense Foreign exchange contracts (26,863 ) Other (income) and expense, net 26,863 Other (income) and expense, net Foreign currency swap agreements (3,398 ) Other (income) and expense, net 3,399 Other (income) and expense, net Foreign currency long-term-debt (1,551 ) Other (income) and expense, net 1,551 Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥(18,670) Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ 1,274 — ¥ 0 Borrowings and bonds in local currency (6,968 ) — 0 — 0 (4) Trading derivatives or derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (127 ) Other (income) and expense, net Futures (10,262 ) Gains on investment securities and dividends Life insurance premiums and related investment income* Foreign exchange contracts (3,463 ) Gains on investment securities and dividends Life insurance premiums and related investment income* Other (income) and expense, net Credit derivatives held 71 Other (income) and expense, net Options held/written and other (16,175 ) Other (income) and expense, net Life insurance premiums and related investment income* * Futures, foreign exchange contracts and options held/written and other in the above table include losses arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2015 (see Note 23 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, for fiscal 2016 is as follows. (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (4,643 ) Finance revenues/Interest expense ¥ (27 ) — ¥ 0 Foreign exchange contracts 491 Other (income) and expense, net 2,608 — 0 Foreign currency swap agreements (2,786 ) Finance revenues/Interest expense/Other (income) and expense, net (3,760 ) Other (income) and expense, net 111 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (608 ) Finance revenues/Interest expense ¥ 608 Finance revenues/Interest expense Foreign exchange contracts 24,746 Other (income) and expense, net (24,746 ) Other (income) and expense, net Foreign currency swap agreements 3,261 Other (income) and expense, net (3,260 ) Other (income) and expense, net Foreign currency long-term-debt 1,648 Other (income) and expense, net (1,648 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ 18,209 Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ (57 ) — ¥ 0 Borrowings and bonds in local currency 11,626 — 0 — 0 (4) Trading derivatives or derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (95 ) Other (income) and expense, net Futures 1,092 Gains on investment securities and dividends Life insurance premiums and related investment income* Foreign exchange contracts 470 Gains on investment securities and dividends Life insurance premiums and related investment income* Other (income) and expense, net Credit derivatives held 109 Other (income) and expense, net Options held/written and other (272 ) Other (income) and expense, net Life insurance premiums and related investment income* * Futures, foreign exchange contracts and options held/written and other in the above table include losses arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2016 (see Note 23 “Life Insurance Operations”). Notional amounts of derivative instruments and other, fair values of derivative instruments and other before offsetting at March 31, 2015 and 2016 are as follows. March 31, 2015 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance sheets location Fair value Consolidated balance sheets location Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 296,464 ¥ 890 Other Assets ¥ 1,094 Other Liabilities Futures, Foreign exchange contracts 581,510 5,281 Other Assets 11,016 Other Liabilities Foreign currency swap agreements 104,058 6,411 Other Assets 9,788 Other Liabilities Foreign currency long- term-debt 258,313 0 — 0 — Trading derivatives or derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 3,000 ¥ 0 — ¥ 127 Other Liabilities Options held/written and other* 441,586 12,103 Other Assets 6,177 Other Liabilities Futures, Foreign exchange contracts* 111,309 438 Other Assets 1,252 Other Liabilities Credit derivatives held 9,013 0 — 165 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥265,094 million, futures contracts of ¥34,586 million and foreign exchange contracts of ¥13,415 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2015, respectively. Asset derivatives in the above table include fair value of the options held and foreign exchange contracts before offsetting of ¥3,888 million and ¥92 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥690 million and ¥60 million at March 31, 2015, respectively. March 31, 2016 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance sheets location Fair value Consolidated balance sheets location Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 257,700 ¥ 80 Other Assets ¥ 5,686 Other Liabilities Futures, Foreign exchange contracts 1,035,342 17,636 Other Assets 5,966 Other Liabilities Foreign currency swap agreements 96,539 6,571 Other Assets 3,601 Other Liabilities Foreign currency long- term-debt 225,711 0 — 0 — Trading derivatives or derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 4,856 ¥ 13 Other Assets ¥ 235 Other Liabilities Options held/written and other* 246,068 8,789 Other Assets 3,637 Other Liabilities Futures, Foreign exchange contracts* 1,047,878 658 Other Assets 689 Other Liabilities Credit derivatives held 3,380 0 — 56 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥46,926 million, futures contracts of ¥51,021 million and foreign exchange contracts of ¥20,884 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2016, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥3,332 million, ¥25 million and ¥568 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥417 million and ¥98 million at March 31, 2016, respectively. Certain of the Company’s derivative instruments contain provisions that require the Company to maintain an investment grade credit rating from each of the major credit rating agencies. If the Company’s credit rating were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment on derivative instruments that are in net liability positions. There are no derivative instruments with credit-risk-related contingent features that were in a net liability position on March 31, 2015 and 2016. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Mar. 31, 2016 | |
Offsetting Assets and Liabilities | 30. Offsetting Assets and Liabilities The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheet regarding to derivative assets and liabilities and other assets and liabilities as of March 31, 2015 and 2016 are as follows. March 31, 2015 Millions of yen Gross amounts Gross amounts Net amounts Gross amounts not offset Net amount Financial Collateral Derivative assets ¥ 25,123 ¥ (2,858 ) ¥ 22,265 ¥ 0 ¥ (3,888 ) ¥ 18,377 Reverse repurchase, securities borrowing, and similar arrangements*2 9,915 (9,915 ) 0 0 0 0 Total assets ¥ 35,038 ¥ (12,773 ) ¥ 22,265 ¥ 0 ¥ (3,888 ) ¥ 18,377 Derivative liabilities ¥ 29,619 ¥ (2,858 ) ¥ 26,761 ¥ 0 ¥ (277 ) ¥ 26,484 Repurchase, securities lending, and similar arrangements*2 10,590 (9,915) 675 0 0 675 Total liabilities ¥ 40,209 ¥ (12,773 ) ¥ 27,436 ¥ 0 ¥ (277 ) ¥ 27,159 March 31, 2016 Millions of yen Gross amounts Gross amounts Net amounts Gross amounts not offset Net amount Financial Collateral Derivative assets ¥ 33,747 ¥ (5,757 ) ¥ 27,990 ¥ 0 ¥ (3,332 ) ¥ 24,658 Reverse repurchase, securities borrowing, and similar arrangements*2 5,186 (5,186 ) 0 0 0 0 Total assets ¥ 38,933 ¥ (10,943 ) ¥ 27,990 ¥ 0 ¥ (3,332 ) ¥ 24,658 Derivative liabilities ¥ 19,870 ¥ (5,757 ) ¥ 14,113 ¥ 0 ¥ (225 ) ¥ 13,888 Repurchase, securities lending, and similar arrangements*2 5,203 (5,186 ) 17 0 0 17 Total liabilities ¥ 25,073 ¥ (10,943 ) ¥ 14,130 ¥ 0 ¥ (225 ) ¥ 13,905 *1 The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. *2 Reserve repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Significant Concentrations of C
Significant Concentrations of Credit Risk | 12 Months Ended |
Mar. 31, 2016 | |
Significant Concentrations of Credit Risk | 31. Significant Concentrations of Credit Risk The Company and its subsidiaries have established various policies and procedures to manage credit exposure, including initial credit approval, credit limits, collateral and guarantee requirements, obtaining rights of offset and continuous oversight. The Company and its subsidiaries’ principal financial instrument portfolio consists of investment in direct financing leases which are secured by title to the leased assets and installment loans which are secured by assets specifically collateralized in relation to loan agreements. When deemed necessary, guarantees are also obtained. The value and adequacy of the collateral are continually monitored. Consequently, the risk of credit loss from counterparties’ failure to perform in connection with collateralized financing activities is believed to be minimal. The Company and its subsidiaries have access to collateral in case of bankruptcy and other losses. However, a significant decline in real estate markets could result in a decline in fair value of the collateral real estate below the mortgage setting amount, which would expose the Company and certain subsidiaries to unsecured credit risk. The Company and its subsidiaries make investments in securities for various purposes. The risk of incurring significant losses during a certain period is believed to be minimal due to the diversification in the investment portfolio. However, various factors, including the issuer’s credit risk and market trends, could expose the Company and its subsidiaries to a risk of unexpected loss. In connection with investments in securities, the percentage of trading securities to consolidated total assets is 10.4% and 6.6% as of March 31, 2015 and 2016, respectively. At March 31, 2015 and 2016, no concentration with a single obligor exceeded 1% of the Company’s consolidated total assets. With respect to the Company and its subsidiaries’ credit exposures on a geographic basis, ¥6,601 billion, or 80%, at March 31, 2015 and ¥6,104 billion, or 78%, at March 31, 2016 of the credit risks arising from all financial instruments are attributable to customers located in Japan. The largest concentration of credit risk outside of Japan is exposure attributable to obligors located in the United States. The gross amount of such exposure is ¥764 billion and ¥848 billion as of March 31, 2015 and 2016, respectively. The Company and its subsidiaries have transportation equipment such as automobile operations and aircraft. Transportation equipment is mainly recorded in investment in direct financing leases and operating leases. In connection with investment in direct financing leases and operating leases, the percentage of investment in transportation equipment to consolidated total assets is 9.4% and 11.0% as of March 31, 2015 and 2016, respectively. The Company and its subsidiaries provide consumers with housing loans. In connection with installment loans, the percentage of housing loans to consolidated total assets is 9.3% and 10.3% as of March 31, 2015 and 2016, respectively. |
Estimated Fair Value of Financi
Estimated Fair Value of Financial Instruments | 12 Months Ended |
Mar. 31, 2016 | |
Estimated Fair Value of Financial Instruments | 32. Estimated Fair Value of Financial Instruments The following information is provided to help readers gain an understanding of the relationship between carrying amount of financial instruments reported in the accompanying consolidated financial statements and the related market or fair value. For derivative financial instruments, see Note 2 “Fair Value Measurements.” The disclosures do not include investment in direct financing leases, investment in affiliates, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts. March 31, 2015 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 1,190,131 ¥ 1,190,131 ¥ 50,902 ¥ 1,139,229 ¥ 0 Cash and cash equivalents 827,518 827,518 827,518 0 0 Restricted cash 85,561 85,561 85,561 0 0 Installment loans (net of allowance for probable loan losses) 2,420,932 2,439,904 0 231,565 2,208,339 Investment in securities: Practicable to estimate fair value 1,481,162 1,495,540 130,519 1,239,124 125,897 Not practicable to estimate fair value*1 174,964 174,964 0 0 0 Other Assets: Time deposits 13,761 13,761 0 13,761 0 Derivative assets*2 22,265 22,265 0 0 0 Reinsurance recoverables (Investment contracts) 115,116 116,229 0 0 116,229 Liabilities: Short-term debt ¥ 284,785 ¥ 284,785 ¥ 0 ¥ 284,785 ¥ 0 Deposits 1,287,380 1,288,419 0 1,288,419 0 Policy liabilities and Policy account balances (Investment contracts) 298,132 303,359 0 0 303,359 Long-term debt 4,132,945 4,117,259 0 1,417,687 2,699,572 Other Liabilities: Derivative liabilities*2 26,761 26,761 0 0 0 *1 The fair value of investment securities of ¥174,964 million was not estimated, as it was not practical. *2 It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 “Fair Value Measurements.” March 31, 2016 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 725,821 ¥ 725,821 ¥ 37,592 ¥ 688,229 ¥ 0 Cash and cash equivalents 730,420 730,420 730,420 0 0 Restricted cash 80,979 80,979 80,979 0 0 Installment loans (net of allowance for probable loan losses) 2,545,542 2,553,006 0 264,452 2,288,554 Investment in securities: Practicable to estimate fair value 1,480,499 1,511,161 99,347 1,271,506 140,308 Not practicable to estimate fair value*1 138,472 138,472 0 0 0 Other Assets: Time deposits 9,843 9,843 0 9,843 0 Derivative assets*2 27,990 27,990 0 0 0 Reinsurance recoverables Investment contracts 93,838 94,656 0 0 94,656 Liabilities: Short-term debt ¥ 349,624 ¥ 349,624 ¥ 0 ¥ 349,624 ¥ 0 Deposits 1,398,472 1,400,528 0 1,400,528 0 Policy liabilities and Policy account balances (Investment contracts) 306,058 308,064 0 0 308,064 Long-term debt 3,940,906 3,959,166 0 1,106,147 2,853,019 Other Liabilities: Derivative liabilities*2 14,113 14,113 0 0 0 *1 The fair value of investment securities of ¥138,472 million was not estimated, as it was not practical. *2 It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 “Fair Value Measurements.” Input level of fair value measurement If active market prices are available, fair value measurement is based on quoted active market prices and classified as Level 1. If active market prices are not available, fair value measurement is based on observable inputs other than quoted prices included within Level 1 such as quoted market prices of similar assets and classified as Level 2. If market prices are not available and there are no observable inputs, then fair value is estimated by using valuation models including discounted cash flow methodologies, commonly used option-pricing models and broker quotes and classified as Level 3, as the valuation models and broker quotes are based on inputs that are unobservable in the market. Estimation of fair value The following methods and significant assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate a value: Cash and cash equivalents, restricted cash, time deposits and short-term debt— Installment loans— Investment in securities— Deposits— Long-term debt— Derivatives— Reinsurance recoverables and Policy liabilities and Policy account balances— |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingent Liabilities | 12 Months Ended |
Mar. 31, 2016 | |
Commitments, Guarantees and Contingent Liabilities | 33. Commitments, Guarantees and Contingent Liabilities Commitments The minimum future rentals on non-cancelable operating leases are as follows: Years ending March 31, Millions of yen 2017 ¥ 7,959 2018 6,506 2019 5,626 2020 5,280 2021 4,171 Thereafter 37,699 Total ¥ 67,241 The Company and certain subsidiaries lease office space under operating lease agreements, which are primarily cancelable, and made rental payments totaling ¥10,217 million, ¥15,782 million and ¥14,036 million in fiscal 2014, 2015 and 2016, respectively. Certain computer systems of the Company and certain subsidiaries have been operated and maintained under non-cancelable contracts with third-party service providers. For such services, the Company and certain subsidiaries made payments totaling ¥3,297 million, ¥4,231 million and ¥4,754 million in fiscal 2014, 2015 and 2016, respectively. The longest contract of them will mature in fiscal 2022. As of March 31, 2016, the amounts due are as follows: Years ending March 31, Millions of yen 2017 ¥ 3,385 2018 2,918 2019 2,424 2020 1,822 2021 104 Thereafter 21 Total ¥ 10,674 The Company and certain subsidiaries have commitments to fund estimated construction costs to complete ongoing real estate development projects and other commitments, totaling ¥88,728 million as of March 31, 2016. The Company and certain subsidiaries have agreements to commit to execute loans for customers, and to invest in funds, as long as the agreed-upon terms are met. As of March 31, 2016, the total unused credit and capital amount available is ¥347,603 million. Guarantees 2015 2016 Millions of yen Fiscal year Millions of yen Fiscal year Guarantees Potential future payment Book value of guarantee liabilities Maturity of the longest contract Potential future payment Book value of guarantee liabilities Maturity of the longest contract Corporate loans ¥ 439,253 ¥ 4,959 2022 ¥ 396,340 ¥ 5,875 2023 Transferred loans 213,099 2,357 2045 174,322 1,587 2046 Consumer loans 117,153 11,773 2018 179,225 21,748 2018 Housing loans 59,743 6,422 2051 28,919 5,853 2051 Other 2,963 28 2024 482 179 2024 Total ¥ 832,211 ¥ 25,539 — ¥ 779,288 ¥ 35,242 — Guarantee of corporate loans: Payment or performance risk of the guarantees is considered based on the historical experience of credit events. There have been no significant changes in the payment or performance risk of the guarantees in fiscal 2016. Guarantee of transferred loans: In return for the delegated authority, the subsidiary guarantees the performance of certain housing loans transferred to Fannie Mae and has the payment or performance risk of the guarantees to absorb some of the losses when losses arise from the transferred loans. There were no significant changes in the payment or performance risk of these guarantees in fiscal 2016. Guarantee of consumer loans: Payment or performance risk of the guarantees is considered based on the historical experience of credit events. There were no significant changes in the payment or performance risk of the guarantees in fiscal 2016. Guarantee of housing loans: Payment or performance risk of the guarantees is considered based on the historical experience of credit events. There were no significant changes in the payment or performance risk of the guarantees in fiscal 2016. Other guarantees: Litigation |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2016 | |
Segment Information | 34. Segment Information Financial information about the operating segments reported below is that which is available by segment and evaluated regularly by the management in deciding how to allocate resources and in assessing performance. An overview of operations for each of the six segments follows below. Corporate Financial Services : Lending, leasing and fee business Maintenance Leasing : Automobile leasing and rentals, car sharing, and test and measurement instruments and IT-related equipment rentals and leasing Real Estate : Real estate development and rental, facility operation, REIT asset management and real estate investment advisory services Investment and Operation : Environment and energy-related business, principal investment and loan servicing (asset recovery) Retail : Life insurance, banking and card loan business Overseas Business : Leasing, lending, investment in bonds, asset management and ship- and aircraft-related operations Financial information of the segments for fiscal 2014, 2015 and 2016 is as follows: Year ended March 31, 2014 Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Revenues ¥ 78,825 ¥ 251,328 ¥ 203,382 ¥ 236,879 ¥ 211,612 ¥ 412,157 ¥ 1,394,183 Finance revenues 37,235 9,472 6,132 18,350 50,406 57,328 178,923 Interest expense 8,594 3,687 9,018 4,077 5,593 28,087 59,056 Depreciation and amortization 3,170 117,357 19,200 2,867 12,644 41,551 196,789 Other significant non-cash items: Provision for doubtful receivables and probable loan losses (974 ) 363 2,079 2,620 3,485 5,673 13,246 Write-downs of long-lived assets 0 1,292 16,958 15 0 1,046 19,311 Increase in policy liabilities and policy account balances 0 0 0 0 28,429 0 28,429 Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net 792 152 4,709 68,758 3,920 6,793 85,124 Discontinued operations 0 0 8,832 383 238 (279 ) 9,174 Segment profits 24,874 37,062 17,956 95,786 49,871 69,688 295,237 Segment assets 992,078 622,009 962,404 552,183 2,166,986 1,972,138 7,267,798 Long-lived assets 26,665 433,342 773,146 75,458 76,491 396,948 1,782,050 Expenditures for long-lived assets 3,505 176,952 32,056 22,428 195 117,419 352,555 Investment in affiliates 18,909 1,718 62,504 59,759 10,971 143,454 297,315 Year ended March 31, 2015 Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Revenues ¥ 85,502 ¥ 263,499 ¥ 182,321 ¥ 666,120 ¥ 425,977 ¥ 561,893 ¥ 2,185,312 Finance revenues 35,624 11,103 4,057 15,650 52,510 63,259 182,203 Interest expense 8,627 3,690 6,968 3,609 5,669 29,989 58,552 Depreciation and amortization 3,373 125,013 16,900 5,919 15,190 47,397 213,792 Other significant non-cash items: Provision for doubtful receivables and probable loan losses 597 372 (85 ) (296 ) 3,975 8,086 12,649 Write-downs of long-lived assets 653 0 29,418 211 0 4,605 34,887 Decrease in policy liabilities and policy account balances 0 0 0 0 (506,043 ) 0 (506,043 ) Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net 740 59 9,633 11,985 633 28,433 51,483 Bargain Purchase Gain 0 0 0 0 36,082 0 36,082 Discontinued operations 0 0 0 463 0 0 463 Segment profits 25,519 40,366 3,484 42,414 120,616 104,143 336,542 Segment assets 1,132,468 662,851 835,386 660,014 3,700,635 2,178,895 9,170,249 Long-lived assets 35,470 450,099 652,524 145,153 49,838 289,097 1,622,181 Expenditures for long-lived assets 8,717 162,323 45,019 70,616 144 106,338 393,157 Investment in affiliates 20,875 2,074 91,275 51,108 3,785 209,027 378,144 Year ended March 31, 2016 Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Revenues ¥ 107,150 ¥ 271,662 ¥ 191,540 ¥ 1,028,355 ¥ 254,289 ¥ 526,008 ¥ 2,379,004 Finance revenues 34,215 12,067 6,720 12,625 55,318 75,004 195,949 Interest expense 7,214 3,545 4,676 3,539 4,654 33,356 56,984 Depreciation and amortization 4,764 127,862 15,908 8,836 17,489 52,606 227,465 Other significant non-cash items: Provision for doubtful receivables and probable loan losses (701 ) 24 (110 ) (940 ) 7,370 7,277 12,920 Write-downs of long-lived assets 0 0 8,036 214 0 4,978 13,228 Decrease in policy liabilities and policy account balances 0 0 0 0 (405,014 ) 0 (405,014 ) Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net 1,064 191 6,048 18,822 796 76,747 103,668 Segment profits 42,418 42,935 42,902 57,220 51,756 142,879 380,110 Segment assets 1,049,867 731,329 739,592 704,156 3,462,772 2,284,733 8,972,449 Long-lived assets 41,170 479,619 600,693 193,970 52,359 386,950 1,754,761 Expenditures for long-lived assets 14,180 151,330 49,858 74,645 439 272,315 562,767 Investment in affiliates 22,755 1,996 91,010 108,237 911 305,674 530,583 Segment figures reported in these tables include operations classified as discontinued operations in the accompanying consolidated statements of income. The accounting policies of the segments are almost the same as those described in Note 1 “Significant Accounting and Reporting Policies” except for the treatment of income tax expenses, net income attributable to the noncontrolling interests, net income attributable to the redeemable noncontrolling interests, income from discontinued operations and the consolidation of certain variable interest entities (VIEs). Income taxes are not included in segment profits or losses because the management evaluates segments’ performance on a pre-tax basis. Also, net income attributable to noncontrolling interests and redeemable noncontrolling interests are not included in segment profits or losses because the management evaluates segments’ performance based on profits or losses (pre-tax) attributable to ORIX Corporation Shareholders. On the other hand, income from discontinued operations is included in segment profits or losses because the management considers such disposal activities as part of the ordinary course of business. Net income attributable to the noncontrolling interests, net income attributable to the redeemable noncontrolling interests and income from discontinued operations, which are recognized net of tax in the accompanying consolidated statements of income, are adjusted to profit or loss before income taxes, when calculating segment profits or losses. Most of selling, general and administrative expenses, including compensation costs that are directly related to the revenue generating activities of each segment, have been accumulated by and charged to each segment. Gains and losses that management does not consider for evaluating the performance of the segments, such as write-downs of certain securities, write-downs of certain long-lived assets and certain foreign exchange gains or losses (included in other (income) and expense, net) are excluded from the segment profits or losses, and are regarded as corporate items. Assets attributed to each segment are investment in direct financing leases, installment loans, investment in operating leases, investment in securities, property under facility operations, investment in affiliates, inventories, advances for investment in operating leases (included in other assets), advances for investment in property under facility operations (included in other assets) and goodwill and other intangible assets recognized as a result of business combination (included in other assets). This has resulted in the depreciation of office facilities being included in each segment’s profit or loss while the carrying amounts of corresponding assets are not allocated to each segment’s assets. However, the effect resulting from this allocation is not significant. For those VIEs that are used for securitization and are consolidated in accordance with ASC 810 (“Consolidations”), for which the VIE’s assets can be used only to settle related obligations of those VIEs and the creditors (or beneficial interest holders) do not have recourse to other assets of the Company or its subsidiaries, segment assets are measured based on the amount of the Company and its subsidiaries’ net investments in the VIEs, which is different from the amount of total assets of the VIEs, and accordingly, segment revenues are also measured at a net amount representing the revenues earned on the net investments in the VIEs. Certain gains or losses related to assets and liabilities of consolidated VIEs, which are not ultimately attributable to the Company and its subsidiaries, are excluded from segment profits. The reconciliation of segment totals to consolidated financial statement amounts is as follows. Significant items to be reconciled are segment revenues, segment profits and segment assets. Other items do not have a significant difference between segment amounts and consolidated amounts. Millions of yen 2014 2015 2016 Segment revenues: Total revenues for segments ¥ 1,394,183 ¥ 2,185,312 ¥ 2,379,004 Revenues related to corporate assets 6,618 6,531 9,230 Revenues related to assets of certain VIEs 13,989 6,356 5,455 Revenues from inter-segment transactions (12,891 ) (21,702 ) (24,487 ) Revenues from discontinued operations (26,607 ) (2,214 ) 0 Total consolidated revenues ¥ 1,375,292 ¥ 2,174,283 ¥ 2,369,202 Segment profits: Total segment profits ¥ 295,237 ¥ 336,542 ¥ 380,110 Corporate losses (21,642 ) (15,638 ) (5,261 ) Gains related to assets or liabilities of certain VIEs 17,003 3,267 5,632 Discontinued operations, pre-tax (12,182 ) (463 ) 0 Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests, net of applicable tax effect 7,923 20,309 10,821 Total consolidated income before income taxes and discontinued operations ¥ 286,339 ¥ 344,017 ¥ 391,302 Segment assets: Total segment assets ¥ 7,267,798 ¥ 9,170,249 ¥ 8,972,449 Cash and cash equivalents, restricted cash 905,074 913,079 811,399 Allowance for doubtful receivables on direct financing leases and probable loan losses (84,796 ) (72,326 ) (60,071 ) Trade notes, accounts and other receivable 193,369 348,404 294,638 Other corporate assets 532,365 789,636 704,600 Assets of certain VIEs 253,151 294,586 273,891 Total consolidated assets ¥ 9,066,961 ¥ 11,443,628 ¥ 10,996,906 The following information represents geographical revenues and income before income taxes, which are attributed to geographic areas, based on the country location of the Company and its subsidiaries. Millions of yen Year Ended March 31, 2014 Japan The Other*3 Difference between Geographic Total and Consolidated Amounts Consolidated Amounts Total Revenues ¥ 977,427 ¥ 131,797 ¥ 292,675 ¥ (26,607 ) ¥ 1,375,292 Income before Income Taxes*1 211,442 42,901 44,178 (12,182 ) 286,339 Millions of yen Year Ended March 31, 2015 Japan The Other*3 Difference between Geographic Total and Consolidated Amounts Consolidated Amounts Total Revenues ¥ 1,602,610 ¥ 209,923 ¥ 363,964 ¥ (2,214 ) ¥ 2,174,283 Income before Income Taxes*1 228,063 32,382 84,035 (463 ) 344,017 Millions of yen Year Ended March 31, 2016 Japan The Other*3*4 Difference between Geographic Total and Consolidated Amounts Consolidated Amounts Total Revenues ¥ 1,827,582 ¥ 186,186 ¥ 355,434 ¥ 0 ¥ 2,369,202 Income before Income Taxes 241,794 74,546 74,962 0 391,302 *1 Results of discontinued operations pre-tax are included in each amount attributed to each geographic area. *2 Mainly the United States *3 Mainly Asia, Europe, Australasia and Middle East *4 Robeco, one of the Company’s subsidiaries domiciled in the Netherlands, conducts principally an asset management business. Due to the integrated nature of such business with its customer base spread across the world, “Other” locations include the total revenues and the income before income taxes of Robeco for fiscal 2014, 2015 and 2016, respectively. The revenues of Robeco aggregated on a legal entity basis were ¥58,997 million in the Americas and ¥52,169 million in other for fiscal 2014, ¥99,059 million in the Americas and ¥96,966 million in other for fiscal 2015, and ¥108,446 million in the Americas and ¥76,726 million in other for fiscal 2016. ASC 280 (“Segment Reporting”) requires disclosure of revenues from external customers for each product and service as enterprise-wide information. The consolidated statements of income and related notes to consolidated financial statements in which the revenues are categorized based on the nature of the types of business conducted include the required information. No single customer accounted for 10% or more of the Company’s total revenues for fiscal 2014, 2015 and 2016. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2016 | |
Subsequent Events | 35. Subsequent Events There are no material subsequent events. |
Schedule II.-Valuation and Qual
Schedule II.-Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Mar. 31, 2016 | |
Schedule II.-Valuation and Qualifying Accounts and Reserves | Schedule II.—Valuation and Qualifying Accounts and Reserves ORIX Corporation and Subsidiaries Description Millions of yen Year Ended March 31, 2014 Balance at beginning of period Acquisitions Addition: Charged to costs and expenses Deduction Translation adjustment Balance at end of period Restructuring cost: Closed office lease obligations ¥ 9 ¥ 0 ¥ 0 ¥ (9) ¥ 0 ¥ 0 Severance and other benefits to terminated employees 0 3,049 0 (1,221 ) 104 1,932 Total ¥ 9 ¥ 3,049 ¥ 0 ¥ (1,230 ) ¥ 104 ¥ 1,932 Description Millions of yen Year Ended March 31, 2015 Balance at beginning of period Acquisitions Addition: Charged to costs and expenses Deduction Translation adjustment Balance at end of period Restructuring cost: Severance and other benefits to terminated employees ¥ 1,932 ¥ 0 ¥ 0 ¥ (1,474 ) ¥ (66 ) ¥ 392 Total ¥ 1,932 ¥ 0 ¥ 0 ¥ (1,474 ) ¥ (66 ) ¥ 392 Description Millions of yen Year Ended March 31, 2016 Balance at beginning of period Acquisitions Addition: Charged to costs and expenses Deduction Translation adjustment Balance at end of period Restructuring cost: Severance and other benefits to terminated employees ¥ 392 ¥ 0 ¥ 0 ¥ (237 ) ¥ 1 ¥ 156 Total ¥ 392 ¥ 0 ¥ 0 ¥ (237 ) ¥ 1 ¥ 156 Description Millions of yen Balance at Acquisitions Addition: Charged to Deduction*1 Other*2 Balance at Deferred tax assets: Valuation allowance Year ended March 31, 2014 ¥ 18,831 ¥ 13,182 ¥ 3,300 ¥ (4,792 ) ¥ 49 ¥ 30,570 Year ended March 31, 2015 ¥ 30,570 ¥ 22,563 ¥ 9,591 ¥ (9,944 ) ¥ (2,265 ) ¥ 50,515 Year ended March 31, 2016 ¥ 50,515 ¥ 419 ¥ 2,936 ¥ (4,622 ) ¥ (6,028 ) ¥ 43,220 *1 The amount of deduction includes benefits recognized in earnings, expiry of loss carryforwards and sales of subsidiaries. *2 The amount of other includes translation adjustment, the effect of changes in statutory tax rate and the effect of the amendment to tax loss carryforward rules. |
Significant Accounting and Re44
Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Basis of presenting financial statements | (a) Basis of presenting financial statements The Company and its subsidiaries in Japan maintain their books in conformity with Japanese accounting practices, which differ in certain respects from U.S. GAAP. The accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP and, therefore, reflect certain adjustments to the books and records of the Company and its subsidiaries. The principal adjustments relate to initial direct costs to originate leases and loans, use of a straight-line basis of depreciation for operating lease assets, deferral of life insurance policy acquisition costs, calculation of insurance policy liabilities, accounting for goodwill and other intangible assets in business combinations, accounting for contingent consideration in business combination, accounting for pension plans, accounting for sales of the parent’s ownership interest in subsidiaries, accounting for securitization of financial assets, reflection of the income tax effect on such adjustments and reclassification of discontinued operations. |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Investments in affiliates, where the Company has the ability to exercise significant influence by way of 20% – 50% ownership or other means, are accounted for by using the equity method. Where the Company holds majority voting interests but noncontrolling shareholders have substantive participating rights to decisions that occur as part of the ordinary course of their business, the equity method is applied pursuant to FASB Accounting Standards Codification (“ASC”) 810-10-25-2 to 14 (“Consolidation—The Effect of Noncontrolling Rights on Consolidation”). In addition, the consolidated financial statements also include variable interest entities to which the Company and its subsidiaries are primary beneficiaries pursuant to ASC 810 (“Consolidation”). A lag period of up to three months is used on a consistent basis for recognizing the results of certain subsidiaries and affiliates. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | (c) Use of estimates The preparation of consolidated 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company has identified ten areas where it believes assumptions and estimates are particularly critical to the financial statements. The Company makes estimates and assumptions to the selection of valuation techniques and determination of assumptions used in fair value measurements (see Note 2), the determination and periodic reassessment of the unguaranteed residual value for direct financing leases and operating leases (see (e)), the determination and reassessment of insurance policy liabilities and deferred policy acquisition costs (see (f)), the determination of the allowance for doubtful receivables on direct financing leases and probable loan losses (see (g)), the recognition and measurement of impairment of long-lived assets (see (h)), the recognition and measurement of impairment of investment in securities (see (i)), the determination of the valuation allowance for deferred tax assets and the evaluation of tax positions (see (j)), the assessment and measurement of effectiveness in hedging relationship using derivative financial instruments (see (l)), the determination of benefit obligation and net periodic pension cost (see (m)) and the recognition and measurement of impairment of goodwill and intangible assets that have indefinite useful lives (see (w)). |
Foreign currencies translation | (d) Foreign currencies translation The Company and its subsidiaries maintain their accounting records in their functional currency. Transactions in foreign currencies are recorded in the entity’s functional currency based on the prevailing exchange rates on the transaction date. The financial statements of overseas subsidiaries and affiliates are translated into Japanese yen by applying the exchange rates in effect at the end of each fiscal year to all assets and liabilities. Income and expenses are translated at the average rates of exchange prevailing during the fiscal year. The currencies in which the operations of the overseas subsidiaries and affiliates are conducted are regarded as the functional currencies of these companies. Foreign currency translation adjustments reflected in accumulated other comprehensive income (loss) arise from the translation of foreign currency financial statements into Japanese yen. |
Recognition of revenues | (e) Recognition of revenues Revenues are recognized when persuasive evidence of an arrangement exists, the service has been rendered or the goods have been delivered to the customer, the transaction price is fixed or determinable and collectability is reasonably assured. In addition to the aforementioned general policy, the policies as specifically described hereinafter are applied for each of the major revenue items. Finance Revenues (1) Revenues from direct financing leases Direct financing leases consist of full-payout leases for various equipment types, including office equipment, industrial machinery and transportation equipment. In providing leasing services, the Company and its subsidiaries execute supplemental services, such as paying insurance and handling taxes on leased assets on behalf of lessees. The excess of aggregate lease rentals plus the estimated unguaranteed residual value over the cost of the leased equipment constitutes the unearned lease income to be taken into income over the lease term by using the interest method. The estimated residual values represent estimated proceeds from the disposition of equipment at the time the lease is terminated. Estimates of unguaranteed residual values are based on market values of used equipment, estimates of when and how much equipment will become obsolete, and actual recovery being experienced for similar used equipment. Initial direct costs are being deferred and amortized as a yield adjustment over the life of the related lease by using interest method. The unamortized balance of initial direct costs is reflected as a component of investment in direct financing leases. (2) Revenues from installment loans Interest income on installment loans is recognized on an accrual basis. Certain direct loan origination costs, net of origination fees, are being deferred and amortized over the contractual term of the loan as an adjustment of the related loan’s yield using the interest method. Interest payments received on impaired loans other than purchased loans are recorded as interest income unless the collection of the remaining investment is doubtful at which time payments received are recorded as reductions of principal. For purchased loans, although the acquired assets may remain loans in legal form, collections on these loans often do not reflect the normal historical experience of collecting delinquent accounts, and the need to tailor individual collateral-realization strategies often makes it difficult to reliably estimate the amount, timing, or nature of collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans regardless of whether impairment is recognized or not. (3) Non-accrual policy In common with all classes, past-due financing receivables are receivables for which principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms. The Company and its subsidiaries suspend accruing revenues on past-due installment loans and direct financing leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Accrued but uncollected interest is reclassified to investment in direct financing leases or installment loans in the accompanying consolidated balance sheets and becomes subject to the allowance for doubtful receivables and probable loan loss process. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return non-accrual loans and lease receivables to accrual status when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtor’s creditworthiness, such as the debtor’s business characteristics and financial conditions as well as relevant economic conditions and trends. Gains on investment securities and dividends — Operating leases — Estimates of residual values are based on market values of used equipment, estimates of when and the extent to which equipment will become obsolete and actual recovery being experienced for similar used equipment. Sales of goods and real estate— (1) Sales of goods The Company and its subsidiaries sell to their customers various types of goods, including precious metals and jewels, and aftermarket parts and accessories for vehicles. Revenues from such sales of goods are recognized when persuasive evidence of an arrangement exists, delivery has occurred, and collectability is reasonably assured. Delivery is considered to have occurred when the customer has taken title to the goods and assumed the risks and rewards of ownership. Revenues are recognized net of estimated sales returns and incentives. (2) Real estate sales Revenues from the sales of real estate are recognized when a contract is in place, a closing has taken place, the buyer’s initial and continuing investment is adequate to demonstrate a commitment to pay for the property and the Company and its subsidiaries do not have a substantial continuing involvement in the property. Services income — (1) Revenues from asset management and servicing The Company and its subsidiaries provide to our customers investment management services for investments in financial assets, and asset management as well as maintenance and administrative services for investments in real estate properties. The Company and its subsidiaries also perform servicing on behalf of our customers. The Company and its subsidiaries receive fees for those services from our customers. Revenues from asset management and servicing primarily include management fees, servicing fees, and performance fees. Management and servicing fees are recognized when transactions occur or services are rendered and the amounts are fixed or determinable and collectability of which is reasonably assured. Management fees are calculated based on the predetermined percentages of the market value of the assets under management or net assets of the investment funds in accordance with contracts. Certain subsidiaries recognize revenues from performance fees when earned based on the performance of the asset under management while other subsidiaries recognize revenues from performance fees on an accrual basis over the period in which services are performed. Performance fees are calculated based on the predetermined percentages on the performance of the assets under management in accordance with the contracts. (2) Revenues from automobile maintenance services The Company and its subsidiaries provide automobile maintenance services to lessees. Where under terms of the lease or related maintenance agreements the Company and its subsidiaries bear the favorable or unfavorable variability of cost, revenues and expenses are recorded on a gross basis. For those arrangements in which the Company and its subsidiaries do not have substantial risks and rewards of ownership, but instead serve as an agent in collecting from lessees and remitting payments to third parties, the Company and its subsidiaries record revenues net of third-party services costs. Revenues from automobile maintenance services are recognized over the contract period in proportion to the estimated service costs to be incurred. |
Insurance and reinsurance transactions | (f) Insurance and reinsurance transactions Premium income from life insurance policies, net of premiums on reinsurance ceded, is recognized as earned premiums when due. Life insurance benefits are recorded as expenses when they are incurred. Policy liabilities and policy account balances for future policy benefits are measured using the net level premium method, based on actuarial estimates of the amount of future policyholder benefits. The policies are characterized as long-duration policies and mainly consist of whole life, term life, endowments, medical insurance and individual annuity insurance contracts. For policies other than individual annuity insurance contracts, computation of policy liabilities necessarily includes assumptions about mortality, morbidity, lapse rates, future yields on related investments and other factors applicable at the time the policies are written. A certain subsidiary continually evaluates the potential for changes in the estimates and assumptions applied in determining policy liabilities, both positive and negative and uses the results of these evaluations both to adjust recorded liabilities and to adjust underwriting criteria and product offerings. The insurance contracts sold by the subsidiary consist of variable annuity, variable life and fixed annuity insurance contracts. The subsidiary manages investment assets on behalf of variable annuity and variable life policyholders, which consist of equity securities and are included in investments in securities in the consolidated balance sheets. These investment assets are measured at fair value with realized and unrealized gains or losses recognized in life insurance premiums and related investment income in the consolidated statements of income. The subsidiary elected the fair value option for the entire variable annuity and variable life insurance contracts in accordance with ASC 825 (“Financial Instruments”) with changes in the fair value recognized in life insurance costs. The subsidiary provides minimum guarantees to variable annuity and variable life policyholders under which it is exposed to the risk of compensating losses incurred by the policyholders to the extent contractually required. To mitigate the risk, a portion of the minimum guarantee risk related to variable annuity and variable life insurance contracts is ceded to the reinsurance companies and the remaining risk is economically hedged by entering into derivative contracts (See Note 29 “Derivative financial instruments and hedging”). The reinsurance contracts do not relieve the subsidiary from the obligation as the primary obligor to compensate certain losses incurred by the policyholders, and the default of the reinsurance companies may impose additional losses on the subsidiary. Certain subsidiaries have elected the fair value option under ASC 825 (“Financial Instruments”) for certain reinsurance contracts relating to variable annuity and variable life insurance contracts, which is included in other assets in the consolidated balance sheets. Policy liabilities and policy account balances for fixed annuity insurance contracts are measured based on the single-premiums plus interest based on expected rate and fair value adjustments relating to the acquisition of a subsidiary, less withdrawals, expenses and other charges. The credited interest is recorded in life insurance costs in the consolidated statements of income. ASC 944 (“Financial Services—Insurance”) requires insurance companies to defer certain costs related directly to the successful acquisition of new or renewal insurance contracts, or deferred policy acquisition costs, and amortize them over the respective policy periods in proportion to anticipated premium revenue. These deferred policy acquisition costs consist primarily of first-year commissions, except for recurring policy maintenance costs and certain variable costs and expenses for underwriting policies. |
Allowance for doubtful receivables on direct financing leases and probable loan losses | (g) Allowance for doubtful receivables on direct financing leases and probable loan losses The allowance for doubtful receivables on direct financing leases and probable loan losses is maintained at a level which, in the judgment of management, is appropriate to provide for probable losses inherent in lease and loan portfolios. The allowance is increased by provision charged to income and is decreased by charge-offs, net of recoveries. Developing the allowance for doubtful receivables on direct financing leases and probable loan losses is subject to numerous estimates and judgments. In evaluating the appropriateness of the allowance, management considers various factors, including the business characteristics and financial conditions of the obligors, current economic conditions and trends, prior charge-off experience, current delinquencies and delinquency trends, future cash flows expected to be received from the direct financing leases and loans and value of underlying collateral and guarantees. Impaired loans are individually evaluated for a valuation allowance based on the present value of expected future cash flows, the loan’s observable market price or the fair value of the collateral securing the loans if the loans are collateral-dependent. For non-impaired loans, including loans that are not individually evaluated for impairment, and direct financing leases, the Company and its subsidiaries evaluate prior charge-off experience segmented by the debtors’ industries and the purpose of the loans, and then develop the allowance for doubtful receivables on direct financing leases and probable loan losses considering the prior charge-off experience and current economic conditions. The Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal considering debtors’ creditworthiness and the liquidation status of collateral. |
Impairment of long-lived assets | (h) Impairment of long-lived assets The Company and its subsidiaries have followed ASC 360 (“Property, Plant, and Equipment”). Under ASC 360, long-lived assets to be held and used in operations, including tangible assets and intangible assets being amortized, consisting primarily of office buildings, condominiums, golf courses and other properties under facility operations, are tested for recoverability whenever events or changes in circumstances indicate that the assets might be impaired. The assets are considered not recoverable when the undiscounted future cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount. The Company and its subsidiaries determine the fair value using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques, such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. |
Investment in securities | (i) Investment in securities Trading securities are reported at fair value with unrealized gains and losses included in income. Available-for-sale securities are reported at fair value, and unrealized gains or losses are recorded in accumulated other comprehensive income (loss), net of applicable income taxes, except investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option under ASC 825 (“Financial Instruments”). Held-to-maturity securities are recorded at amortized cost. Other securities are recorded at cost or carrying value that reflects equity income and loss based on the Company’s share, except investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option under ASC 825 (“Financial Instruments”). For available-for-sale securities, the Company and its subsidiaries generally recognize losses related to equity securities for which the fair value has been significantly below the acquisition cost (or current carrying value if an adjustment has been made in the past) for more than six months. Also, the Company and its subsidiaries charge against income losses related to equity securities in situations where, even though the fair value has not remained significantly below the carrying value for six months, the decline in the fair value of an equity security is based on the issuer’s specific economic conditions and not just general declines in the related market and where it is considered unlikely that the fair value of the equity security will recover within six months. For debt securities, where the fair value is less than the amortized cost, the Company and its subsidiaries consider whether those securities are other-than-temporarily impaired using all available information about their collectability. The Company and its subsidiaries do not consider a debt security to be other-than-temporarily impaired if (1) the Company and its subsidiaries do not intend to sell the debt security, (2) it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. On the other hand, the Company and its subsidiaries consider a debt security to be other-than-temporarily impaired if any of the above mentioned three conditions are not met. When the Company and its subsidiaries deem a debt security to be other-than-temporarily impaired, the Company and its subsidiaries recognize the entire difference between the amortized cost and the fair value of the debt securities in earnings if the Company and its subsidiaries intend to sell the debt security or it is more likely than not that the Company and its subsidiary will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss. However, if the Company and its subsidiaries do not intend to sell the debt security and it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss, the Company and its subsidiaries separate the difference between the amortized cost and the fair value of the debt securities into the credit loss component and the non-credit loss component. The credit loss component is recognized in earnings, and the non-credit loss component is recognized in other comprehensive income (loss), net of applicable income taxes. For other securities, when the Company and its subsidiaries determine the decline in value is other than temporary, the Company and its subsidiaries reduce the carrying value of the security to the fair value and charge against income losses related to these other securities. |
Income taxes | (j) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if, based on the weight of available evidence, it is “more likely than not” that some portion or all of the deferred tax asset will not be realized. The Company and its subsidiaries file tax returns in Japan and certain foreign tax jurisdictions and recognize the financial statement effects of a tax position taken or expected to be taken in a tax return when it is more likely than not, based on the technical merits, that the position will be sustained upon tax examination, including resolution of any related appeals or litigation processes, and measure tax positions that meet the recognition threshold at the largest amount of tax benefit that is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company and its subsidiaries present an unrecognized tax benefit as either a reduction of a deferred tax asset, a reduction of an amount refundable or a liability, based on the intended method of settlement. The Company and its subsidiaries classify penalties and interest expense related to income taxes as part of provision for income taxes in the consolidated statements of income. The Company and certain subsidiaries have elected to file a consolidated tax return for National Corporation tax purposes. |
Securitized assets | (k) Securitized assets The Company and its subsidiaries have securitized and sold to investors various financial assets such as lease receivables and loan receivables. In the securitization process, the assets to be securitized are sold to trusts or SPEs that issue asset-backed beneficial interests and securities to the investors. In accordance with ASC 860 (“Transfers and Servicing”) and ASC 810 (“Consolidation”), trusts or SPEs used in securitization transactions are consolidated if the Company and its subsidiaries are the primary beneficiary of the trusts or SPEs, and the transfers of the financial assets to those consolidated trusts and SPEs are not accounted for as sales. Assets held by consolidated trusts or consolidated SPEs continue to be accounted for as lease receivables or loan receivables, as they were before the transfer, and asset-backed beneficial interests and securities issued to the investors are accounted for as debt. When the Company and its subsidiaries have transferred financial assets to a transferee that is not subject to consolidation, the Company and its subsidiaries account for the transfer as a sale if control over the transferred assets is surrendered. A certain subsidiary originates and sells loans into the secondary market, while retaining the obligation to service those loans. In addition, it undertakes obligations to service loans originated by others. The subsidiary recognizes servicing assets if it expects the benefit of servicing to more than adequately compensate it for performing the servicing or recognizes servicing liabilities if it expects the benefit of servicing to less than adequately compensate it. These servicing assets and liabilities are initially recognized at fair value and subsequently accounted for using the amortization method whereby the assets and liabilities are amortized in proportion to and over the period of estimated net servicing income or net servicing loss. On a quarterly basis, servicing assets and liabilities are evaluated for impairment or increased obligations. The fair value of servicing assets and liabilities is estimated using an internal valuation model, or by obtaining an opinion of value from an independent third-party vendor. Both methods are based on calculating the present value of estimated future net servicing cash flows, taking into consideration discount rates, prepayments and servicing costs. The internal valuation model is validated at least semiannually through third-party valuations. |
Derivative financial instruments | (l) Derivative financial instruments The Company and its subsidiaries apply ASC 815 (“Derivatives and Hedging”), and all derivatives held by the Company and its subsidiaries are recognized on the consolidated balance sheets at fair value. The accounting treatment of subsequent changes in the fair value depends on their use, and whether they qualify as effective “hedges” for accounting purposes. Derivatives that are not hedges must be adjusted to fair value through the consolidated statements of income. If a derivative is a hedge, then depending on its nature, changes in its fair value will be either offset against changes in the fair value of hedged assets or liabilities through the consolidated statements of income, or recorded in other comprehensive income (loss). If a derivative is held as a hedge of the variability of fair value related to a recognized asset or liability or an unrecognized firm commitment (“fair value” hedge), changes in the fair value of the derivative are recorded in earnings along with the changes in the fair value of the hedged item. If a derivative is held as a hedge of the variability of cash flows related to a forecasted transaction or a recognized asset or liability (“cash flow” hedge), changes in the fair value of the derivative are recorded in other comprehensive income (loss) to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. If a derivative is held as a hedge of a foreign-currency fair-value or cash-flow hedge (“foreign currency” hedge), changes in the fair value of the derivative are recorded in either earnings or other comprehensive income (loss), depending on whether the hedged transaction is a fair-value hedge or a cash-flow hedge. However, if a derivative is used as a hedge of a net investment in a foreign operation, changes in its fair value, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within other comprehensive income (loss). Changes in the fair value of derivatives that are held for trading purposes or held for the purpose of economic hedges, and the ineffective portion of changes in fair value of derivatives that qualify as a hedge, are recorded in earnings. For all hedging relationships that are designated and qualified as hedging, at inception the Company and its subsidiaries formally document the details of the hedging relationship and the hedged activity. The Company and its subsidiaries also formally assess, both at the hedge’s inception and on an ongoing basis, the effectiveness of the hedge relationship. The Company and its subsidiaries cease hedge accounting prospectively when the derivative no longer qualified for hedge accounting. |
Pension plans | (m) Pension plans The Company and certain subsidiaries have contributory and non-contributory pension plans covering substantially all of their employees. The Company and its subsidiaries apply ASC 715 (“Compensation—Retirement Benefits”), and the costs of pension plans are accrued based on amounts determined using actuarial methods, with assumptions of discount rate, rate of increase in compensation level, expected long-term rate of return on plan assets and others. The Company and its subsidiaries also recognize the funded status of pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, on the consolidated balance sheets. Changes in that funded status are recognized in the year in which the changes occur through other comprehensive income (loss), net of applicable income taxes. |
Stock-based compensation | (n) Stock-based compensation The Company and its subsidiaries apply ASC 718 (“Compensation—Stock Compensation”). ASC 718 requires, with limited exception, that the cost of employee services received in exchange for an award of equity instruments be measured based on the grant-date fair value. The costs are recognized over the requisite employee service period. |
Stock splits | (o) Stock splits Stock splits implemented prior to October 1, 2001 had been accounted for by transferring an amount equivalent to the par value of the shares from additional paid-in capital to common stock as required by the Japanese Commercial Code (the “Code”) before amendment. However, no such reclassification was made for stock splits when common stock already included a portion of the proceeds from shares issued at a price in excess of par value. This method of accounting was in conformity with accounting principles generally accepted in Japan. As a result of a revision to the Code before amendment effective on October 1, 2001 and the Companies Act implemented on May 1, 2006, the above-mentioned method of accounting required by the Code has become unnecessary. In the United States, stock splits in comparable circumstances are considered to be stock dividends and are accounted for by transferring from retained earnings to common stock and additional paid-in capital amounts equal to the fair market value of the shares issued. Common stock is increased by the par value of the shares and additional paid-in capital is increased by the excess of the market value over par value of the shares issued. Had such stock splits made prior to October 1, 2001 been accounted for in this manner, additional paid-in capital as of March 31, 2016 would have increased by approximately ¥24,674 million, with a corresponding decrease in retained earnings. Total ORIX Corporation shareholders’ equity would remain unchanged. Stock splits on May 19, 2000 were excluded from the above amounts because the stock split was not considered to be a stock dividend under U.S. GAAP. |
Cash and cash equivalents | (p) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits placed with banks and short-term highly liquid investments with original maturities of three months or less. |
Restricted cash | (q) Restricted cash Restricted cash consists of trust accounts under securitization programs and real estate, deposits related to servicing agreements, deposits collected on the underlying assets and applied to non-recourse loans and others. |
Property under facility operations | (r) Property under facility operations Property under facility operations consist primarily of operating facilities (including golf courses, hotels and training facilities and senior housings) and environmental assets (including mega solar), which are stated at cost less accumulated depreciation, and depreciation is calculated mainly on a straight-line basis over the estimated useful lives of the assets. Depreciation expenses in fiscal 2014, 2015 and 2016 were ¥12,268 million, ¥13,239 million and ¥16,321 million, respectively. Accumulated depreciation was ¥60,999 million and ¥67,055 million as of March 31, 2015 and 2016, respectively. Estimated useful lives range up to 50 years for buildings, up to 60 years for land improvement and up to 30 years for others. |
Trade notes, accounts and other receivable | (s) Trade notes, accounts and other receivable Trade notes, accounts and other receivable primarily include accounts receivables in relation to sales of assets to be leased, inventories and other assets and payment made on behalf of lessees for property tax, maintenance fees and insurance premiums in relation to direct financing lease contracts. |
Inventories | (t) Inventories Inventories consist primarily of residential condominiums under development, completed residential condominiums (including those waiting to be delivered to buyers under the contract for sale), and merchandise for sale. Residential condominiums under development are carried at cost less any impairment losses, and completed residential condominiums and merchandises for sale are stated at the lower of cost or fair value less cost to sell. The cost of inventories that are unique and not interchangeable is determined on the specific identification method and the cost of other inventories is principally determined on the first-in first-out (FIFO) method. As of March 31, 2015 and 2016, residential condominiums under development were ¥97,320 million and ¥81,859 million, respectively, and completed residential condominiums and merchandises for sale were ¥68,220 million and ¥58,091 million, respectively. The Company and its subsidiaries recorded ¥5,650 million, ¥5,241 million and ¥168 million of write-downs principally on residential condominiums under development for fiscal 2014, 2015 and 2016, respectively, resulting from an increase in development costs and/or a decrease in expected sales price. These write-downs were principally recorded in costs of goods and real estate sold and included in the Real Estate segment and the Investment and Operation segment. |
Office facilities | (u) Office facilities Office facilities are stated at cost less accumulated depreciation. Depreciation is calculated on a declining-balance basis or straight-line basis over the estimated useful lives of the assets. Depreciation expenses in fiscal 2014, 2015 and 2016 were ¥3,524 million, ¥4,711 million and ¥5,110 million, respectively. Accumulated depreciation was ¥44,443 million and ¥45,310 million as of March 31, 2015 and 2016, respectively. Estimated useful lives range up to 65 years for buildings and fixtures and up to 20 years for machinery and equipment. |
Other assets | (v) Other assets Other assets consist primarily of the excess of purchase prices over the net assets acquired in acquisitions (goodwill) and other intangible assets (see (w)), reinsurance recoverables in relation to reinsurance contracts (see (f)), deferred insurance policy acquisition costs which are amortized over the contract periods (see (f)), leasehold deposits, advance payments made in relation to purchases of assets to be leased and construction of real estate for operating lease, prepaid benefit cost, derivative assets and deferred tax assets. |
Goodwill and other intangible assets | (w) Goodwill and other intangible assets The Company and its subsidiaries have followed ASC 805 (“Business Combinations”) and ASC 350 (“Intangibles”). ASC 805 requires that all business combinations be accounted for using the acquisition method. It also requires that intangible assets acquired in a business combination be recognized apart from goodwill if the intangible assets meet one of two criteria—either the contractual-legal criterion or the separability criterion. Goodwill is measured as an excess of the aggregate of consideration transferred and the fair value of noncontrolling interests over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed in the business combination measured at fair value. The Company and its subsidiaries would recognize a bargain purchase gain when the amount of recognized net assets exceeds the sum of consideration transferred and the fair value of noncontrolling interests. In a business combination achieved in stages, the Company and its subsidiaries remeasure their previously held equity interest at their acquisition-date fair value and recognize the resulting gain or loss, if any, in earnings. ASC 350 establishes how intangible assets (other than those acquired in a business combination) should be accounted for upon acquisition. It also addresses how goodwill and other intangible assets should be accounted for subsequent to their acquisition. The Company and its subsidiaries test for impairment of goodwill and any intangible assets that have indefinite useful lives at least annually. Additionally, if events or changes in circumstances indicate that the asset might be impaired, the Company and its subsidiaries test for impairment when such events or changes occur. The Company and its subsidiaries have the option to perform a qualitative assessment to determine whether to calculate the fair value of a reporting unit under the first step of the two-step goodwill impairment test. If, after assessing the totality of events or circumstances, the Company and/or subsidiaries determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company and/or subsidiaries do not perform the two-step impairment test. However, if the Company and/or subsidiaries conclude otherwise, the Company and/or subsidiaries proceed to perform the first step of the two-step impairment test. The first step of goodwill impairment test, used to identify potential impairment, calculates the fair value of the reporting unit and compares the fair value with the carrying amount of the reporting unit. If the fair value of the reporting unit falls below its carrying amount, the second step of the goodwill impairment test is performed to measure the amount of impairment loss. The second step of the goodwill impairment test compares implied fair value of goodwill with its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The Company and its subsidiaries test the goodwill either at the operating segment level or one level below the operating segments. The Company and its subsidiaries perform the qualitative assessment for some goodwill but bypass the qualitative assessment and proceed directly to the first step of the two-step impairment test for other goodwill. The Company and its subsidiaries have the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, the Company and/or subsidiaries conclude that it is not more likely than not that the indefinite-lived asset is impaired, then the Company and/or subsidiaries do not perform the quantitative impairment test. However, if the Company and/or subsidiaries conclude otherwise, the Company and/or subsidiaries calculate the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Company and its subsidiaries perform the qualitative assessment for some indefinite-lived intangible assets but bypass the qualitative assessment and perform the quantitative assessment for other indefinite-lived intangible assets. Intangible assets with finite lives are amortized over their useful lives and tested for impairment in accordance with ASC 360 (“Property, Plant, and Equipment”). |
Trade notes, accounts and other payable | (x) Trade notes, accounts and other payable Trade notes, accounts and other payable include primarily accounts payable in relation to purchase of assets to be leased, merchandise for sale and other assets, accounts payable in relation to construction work of residential condominiums and deposits received mainly for withholding income tax. |
Other Liabilities | (y) Other Liabilities Other liabilities include primarily interest, bonus accrued expense and accrued benefit liability, advances received from lessees in relation to lease contracts, deposit received from real estate transaction and derivative liabilities. |
Capitalization of interest costs | (z) Capitalization of interest costs The Company and its subsidiaries capitalized interest costs of ¥1,037 million, ¥1,369 million and ¥1,639 million in fiscal 2014, 2015 and 2016, respectively, related to specific long-term development projects. |
Advertising | (aa) Advertising The costs of advertising are expensed as incurred. The total amounts charged to advertising expense in fiscal 2014, 2015 and 2016 were ¥15,270 million, ¥20,329 million and ¥21,276 million, respectively. |
Discontinued operations | (ab) Discontinued operations In April 2014, Accounting Standards Update 2014-08 (“Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”—ASC 205 (“Presentation of Financial Statements”) and ASC 360 (“Property, Plant, and Equipment”)) was issued. This Update requires an entity to report a disposal or a classification as held for sale of a component of an entity or a group of components of an entity in discontinued operations if it represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The Company and its subsidiaries early adopted this Update on April 1, 2014. In accordance with this Update, the Company and its subsidiaries report a disposal of a component or a group of components of the Company and its subsidiaries in discontinued operations if the disposal represents a strategic shift which has (or will have) a major effect on the Company and its subsidiaries’ operations and financial results when the component or group of components is disposed by sale or classified as held for sale on or after April 1, 2014. During fiscal 2014, the Company and its subsidiaries have followed ASC 205-20 (“Presentation of Financial Statements—Discontinued Operations”) prior to the early adoption of the update. Under ASC 205-20 prior to the early adoption of the update, the scope of discontinued operations includes the operating results of any component of an entity with its own identifiable operations and cash flow and in which operations the Company and its subsidiaries will not have significant continuing involvement. Included in reported discontinued operations are the operating results of operations for the subsidiaries, the business units and certain properties sold or to be disposed of by sale without significant continuing involvements, which results of operations for prior periods presented have also been reclassified as discontinued operations in the accompanying consolidated statements of income and consolidated statements of cash flows. During fiscal 2014, where the Company and its subsidiaries have significant continuing involvement in the operations from the real estate under operating leases which have been disposed of, the gains or losses arising from such disposition are separately disclosed as operating leases, whereas if the Company and its subsidiaries have no significant continuing involvement in the operations from such disposed real estate, the gains or losses are reported as income from discontinued operations, net. Accounting Standards Update 2014-08 does not apply retrospectively to a disposal or a classification as held for sale of a component or a group of components of the Company and its subsidiaries which have previously been reported in the financial statements. Accordingly, during fiscal 2015, the Company and its subsidiaries continue to report gains on sales and the results of operations of subsidiaries and business units, which were classified as held for sale at March 31, 2014, as income from discontinued operations in the accompanying consolidated statements of income in accordance with ASC 205-20 prior to the early adoption of the update. |
Earnings per share | (ac) Earnings per share Basic earnings per share is computed by dividing income attributable to ORIX Corporation shareholders from continuing operations and net income attributable to ORIX Corporation shareholders by the weighted average number of shares of outstanding common stock in each period and diluted earnings per share, which reflects the potential dilution that could occur if securities or other contracts issuing common stock were exercised or converted into common stock. |
Additional acquisition and partial sale of the parent's ownership interest in subsidiaries | (ad) Additional acquisition and partial sale of the parent’s ownership interest in subsidiaries Additional acquisition of the parent’s ownership interest in subsidiaries and partial sale of such interest where the parent continues to retain control of the subsidiary are accounted for as equity transactions. On the other hand, in a transaction that results in the loss of control, the gain or loss recognized in income includes the realized gain or loss related to the portion of ownership interest sold and the gain or loss on the remeasurement to fair value of the interest retained. |
Redeemable noncontrolling interests | (ae) Redeemable noncontrolling interests Noncontrolling interests in a certain subsidiary are redeemable preferred shares which are subject to call and put rights upon certain shareholder events. As redemption of the noncontrolling interest is not solely in the control of the subsidiary, it is recorded between liabilities and equity on the consolidated balance sheets at its estimated redemption value in accordance with provisions including EITF Topic No. D-98 (ASC 480-10-S99-3A) (“Classification and Measurement of Redeemable Securities”). |
Issuance of stock by an affiliate | (af) Issuance of stock by an affiliate When an affiliate issues stocks to unrelated third parties, the Company and its subsidiaries’ ownership interest in the affiliate decreases. In the event that the price per share is more or less than the Company and its subsidiaries’ average carrying amount per share, the Company and its subsidiaries adjust the carrying amount of its investment in the affiliate and recognize gain or loss in the consolidated statements of income in the year in which the change in ownership interest occurs. |
New accounting pronouncements | (ag) New accounting pronouncements In January 2014, Accounting Standards Update 2014-04 (“Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”—ASC 310-40 (“Receivables—Troubled Debt Restructurings by Creditors”)) was issued. This Update clarifies when a creditor is considered to have received physical possession resulting from an in substance repossession or foreclosure of residential real estate property collateralizing a consumer mortgage loan. Additionally, this Update requires an entity to disclose the amount of foreclosed residential real estate property and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2014. The amendments should be applied on either a prospective basis or a modified retrospective basis. Early adoption is permitted. The Company and its subsidiaries adopted this Update on April 1, 2015. The adoption had no material effect on the Company and its subsidiaries’ results of operations or financial position. In May 2014, Accounting Standards Update 2014-09 (“Revenue from Contracts with Customers”—ASC 606 (“Revenue from Contracts with Customers”)) was issued. The core principle of this Update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply a five-step model to determine when to recognize revenue, and in what amount. The five steps to apply the model are: • Identify the contract(s) with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations in the contract • Recognize revenue when (or as) the entity satisfies a performance obligation This Update requires an entity to disclose more information about contracts with customers than under the current disclosure requirements. In April 2016, Accounting Standards Update 2016-10 (“Identifying Performance Obligations and Licensing”—ASC 606 (“Revenue from Contracts with Customers”)) was issued as an amendment of the new revenue standard. This Update adds further guidance on identifying performance obligations and also improves the operability and understandability of the licensing implementation guidance. The amendments do not change the core principle of the guidance in ASC 606. In May 2016, Accounting Standards Update 2016-12, (“Narrow-Scope Improvements and Practical Expedients”—ASC 606 (“Revenue from Contracts with Customers”)) was issued as an amendment of the new revenue standard. This Update (1) clarifies the objective of the collectibility criterion for applying paragraph 606-10-25-7; These Updates are effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017. Early adoption is permitted only for the fiscal year beginning after December 15, 2016, and interim periods within the fiscal year. An entity should apply the amendments in these Updates using either a retrospective method or a cumulative-effect method. The entity may elect some optional practical expedients when applying these Updates. The entity using the cumulative-effect method would recognize the cumulative effect of initially applying these Updates as an adjustment to the opening balance of retained earnings or net assets at the date of initial application. The Company and its subsidiaries are currently evaluating the effect that the adoption of these Updates will have on the Company and its subsidiaries’ results of operations or financial position. In June 2014, Accounting Standards Update 2014-11 (“Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”—ASC 860 (“Transfers and Servicing”)) was issued. This Update requires an entity to account for repurchase-to-maturity transactions as secured borrowings. This Update eliminates the guidance on repurchase financing transactions in ASC 860-10-40-42 through 40-47 and requires the transferor and transferee to symmetrically account for the initial transfer of the financial asset as a sale (provided that derecognition conditions are met) and purchase, respectively. Additionally, this Update requires new disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers accounted for as secured borrowings. The Company and its subsidiaries adopted this Update for accounting on January 1, 2015, and for new disclosure on April 1, 2015. The adoption had no effect on the Company and its subsidiaries’ results of operations or financial position. In June 2014, Accounting Standards Update 2014-12 (“Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”—ASC 718 (“Compensation—Stock Compensation”)) was issued. This Update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2015. The amendments in this Update should be applied on either a prospective basis or a modified retrospective basis. Early adoption is permitted. The adoption is not expected to have a material effect on the Company and its subsidiaries’ results of operations or financial position. In August 2014, Accounting Standards Update 2014-13 (“Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity”—ASC 810 (“Consolidation”)) was issued. This Update permits the parent of the consolidated collateralized financing entity (“CFE”) within the scope of this Update to measure the CFE’s financial assets and liabilities based on either the fair value of the financial assets or financial liabilities, whichever has the more observable inputs. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2015. Early adoption is permitted as of the beginning of a fiscal year. An entity should apply the amendments in this Update using either a modified retrospective approach or a full retrospective approach. The Company and its subsidiaries are currently evaluating the effect that the adoption of this Update will have on the Company and its subsidiaries’ results of operations or financial position. In August 2014, Accounting Standards Update 2014-14 (“Classification of Certain Government—Guaranteed Mortgage Loans Upon Foreclosure”—ASC 310-40 (“Receivables—Troubled Debt Restructurings by Creditors”)) was issued. This Update requires creditors to classify certain foreclosed government guaranteed mortgage loans as a receivable from the guarantor that is measured at the amount expected to be recovered under the guarantee, without treating the guarantee as a separate unit of account. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2014. An entity should apply the amendments in this Update using either a prospective transition method or a modified retrospective transition method. The transition method must be consistent with that applied by the entity for Accounting Standards Update 2014-04 (“Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”—ASC 310-40 (“Receivables—Troubled Debt Restructurings by Creditors”)). Early adoption is permitted only if the entity has already adopted Accounting Standards Update 2014-04. The Company and its subsidiaries adopted this Update on April 1, 2015. The adoption had no effect on the Company and its subsidiaries’ results of operations or financial position. In August 2014, Accounting Standards Update 2014-15 (“Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”—ASC 205-40 (“Presentation of Financial Statements—Going Concern”)) was issued. This Update requires an entity to perform a going concern assessment by evaluating their ability to meet obligations for a look-forward period of one year from the financial statement issuance date (or date the financial statements are available to be issued). Disclosures are required if it is probable an entity will be unable to meet its obligations within the look-forward period. Incremental substantial doubt disclosure is required if the probability is not mitigated by management’s plans. This Update is effective for the first fiscal year ending after December 15, 2016 and fiscal years and interim periods thereafter. Early adoption is permitted. The Update only relates to certain disclosure requirements and the adoption will have no effect on the Company and its subsidiaries’ results of operations or financial position. In November 2014, Accounting Standards Update 2014-16 (“Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity”—ASC 815 (“Derivatives and Hedging”)) was issued. This Update requires an issuer or an investor of hybrid financial instruments issued in the form of a share to determine whether the nature of the host contract is more akin to debt or to equity by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The amendments in this Update should be applied on a modified retrospective basis to all existing hybrid financial instruments in the form of a share as of the beginning of the fiscal year of adoption. Retrospective application is permitted to all relevant prior periods. The Company and its subsidiaries are currently evaluating the effect that the adoption of this Update will have on the Company and its subsidiaries’ results of operations or financial position. In January 2015, Accounting Standards Update 2015-01 (“Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”—ASC 225-20 (“Income Statement—Extraordinary and Unusual Items”)) was issued. This Update eliminates the concept of extraordinary items from U.S. GAAP, but does not change the current presentation and disclosure requirements for material events or transactions that are unusual in nature or infrequent in occurrence. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2015. The amendments in this Update should be applied on either a prospective basis or a retrospective basis. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Generally, the effect of adopting this Update on the Company and its subsidiaries’ results of operations will depend on future transactions. In February 2015, Accounting Standards Update 2015-02 (“Amendments to the Consolidation Analysis”—ASC 810 (“Consolidation”)) was issued. This Update requires an entity to change the way to evaluate whether reporting entities should consolidate limited partnerships and similar legal entities, fees paid to a decision maker or service provider are variable interest in a VIE, and variable interests in a VIE held by related parties of the reporting entity require the reporting entity to consolidate the VIE. Additionally, the amendments in this Update rescind the indefinite deferral of FASB Statement No.167 (“Amendments to FASB Interpretation No.46(R)”), included in Accounting Standards Update 2010-10 (ASC 810 (“Consolidation”)) for certain investment companies and similar entities. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2015. A reporting entity is permitted to apply the amendments in this Update using either a modified retrospective approach or a full retrospective approach. Early adoption is permitted. If an entity adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company and its subsidiaries are currently evaluating the effect that the adoption of this Update will have on the Company and its subsidiaries’ results of operations or financial position. In April 2015, Accounting Standards Update 2015-03 (“Simplifying the Presentation of Debt Issuance Costs”—ASC 835-30 (“Interest—Imputation of Interest”)) was issued. This Update requires that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, similar to the presentation of debt discounts or premiums. This Update is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2015. Retrospective application is required to all relevant prior periods. Early adoption is permitted for financial statements that have not been previously issued. The Company and its subsidiaries are currently evaluating the effect that the adoption of this Update will have on the Company and its subsidiaries’ results of operations or financial position. In July 2015, Accounting Standards Update 2015-11 (“Simplifying the Measurement of Inventory”—ASC 330 (“Inventory”)) was issued. This Update applies to all inventory except for which is measured using last-in, In September 2015, Accounting Standards Update 2015-16 (“Simplifying the Accounting for Measurement—Period Adjustments”—ASC 805 (“Business Combinations”)) was issued. This Update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This Update is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update. Early application is permitted for financial statements that have not yet been issued. Generally, the effect of adopting this Update on the Company and its subsidiaries’ results of operations and financial position will depend on future transactions. In January 2016, Accounting Standards Update 2016-01 (“Recognition and Measurement of Financial Assets and Financial Liabilities”—ASC 825-10 (“Financial Instruments—Overall”)) was issued. This Update revises accounting related to the classification and measurement of equity investments. This Update also revises the presentation of certain fair value changes for financial liabilities measured at fair value. Additionally, this Update amends certain disclosure requirements associated with the fair value of financial instruments. This Update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application to financial statements of fiscal years or interim periods that have not yet been issued are permitted as of the beginning of the fiscal year of adoption. The amendments in this Update should be applied by means of cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company and its subsidiaries are currently evaluating the effect that adoption of this Update will have on the Company and its subsidiaries’ results of operations or financial position. In February 2016, Accounting Standards Update 2016-02 (ASC 842 (“Leases”)) was issued. This Update requires a lessee to recognize most leases on-balance sheet. Lessor accounting remains substantially similar to current U.S.GAAP but with some important changes. This Update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted. The amendments in this Update should be applied by means of cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. The Company and its subsidiaries are currently evaluating the effect that adoption of this Update will have on the Company and its subsidiaries’ results of operations or financial position. In March 2016, Accounting Standards Update 2016-07 (“Simplifying the Transition to the Equity Method Accounting”—ASC 323 (“Investments—Equity Method and Joint Ventures”)) was issued. This Update eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. This Update also requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and requires that an entity that has an available-for sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. This Update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The amendments in this Update should be applied prospectively. Early application is permitted. Generally, the effect of adopting this Update on the Company and its subsidiaries’ results of operations or financial position will depend on future transactions. |
Elimination of a lag period | (ah) Elimination of a lag period Since its acquisition on February 27, 2014, the Company had been consolidating DAIKYO INCORPORATED (hereinafter, “DAIKYO”) on a lag basis. In order to reflect DAIKYO’s financial position and results of operations and cash flows in the Company’s consolidated financial statements in a concurrent manner, the Company eliminated the lag period and has aligned the fiscal year end of DAIKYO with the Company’s fiscal year end of March 31 during fiscal 2015. Because the elimination of a lag period represents a change in accounting principle, the Company retrospectively adjusted the prior year’s consolidated financial statements for the effects of the lag accounting. Below are the effects of this change in accounting principle on major line items and earnings per share amounts in the consolidated financial statements for fiscal 2014 and 2015. The segment information in the Note 34 “Segment Information” has been restated giving effect to these changes to conform to DAIKYO’s current fiscal year end. Millions of yen 2014 2015 Adjustments Increase (decrease) Adjustments Increase (decrease) Revenues: Sales of goods and real estate ¥ 30,937 ¥ 10,548 Services income 25,205 27,960 Other 661 1,377 Total revenues 56,803 39,885 Expenses: Costs of goods and real estate sold 28,883 6,125 Services expense 21,507 23,760 Selling, general and administrative expenses 3,186 3,804 Other 1,157 999 Total expenses 54,733 34,688 Operating Income 2,070 5,197 Income before Income Taxes and Discontinued Operations ¥ 2,613 ¥ 8,068 Millions of yen, except for per share amounts 2014 2015 Adjustments Adjustments Income from Continuing Operations ¥ 1,296 ¥ 2,184 Net Income 1,296 2,184 Net Income Attributable to the Noncontrolling Interests 726 1,070 Net Income Attributable to ORIX Corporation Shareholders 570 1,114 Basic EPS 0.45 0.84 Diluted EPS 0.43 0.86 Millions of yen 2014 2015 Adjustments Adjustments Net cash provided by operating activities ¥ 7,013 ¥ 30,919 Net cash provided by (used in) investing activities (13,148 ) 3,743 Net cash provided by (used in) financing activities (3,125 ) 3,832 Cash and Cash Equivalents at Beginning of Year 0 (9,260 ) Cash and Cash Equivalents at End of Year (9,260 ) 29,234 |
Reclassifications | (ai) Reclassifications Certain line items presented in the consolidated balance sheets, the consolidated statements of income and the consolidated statements of cash flows have been changed as follows starting from fiscal 2015. These changes aim to reflect fairly the changing revenues structure of the Company and its subsidiaries on the consolidated financial statements, which has resulted from continued diversification in our business activities and also an increase in the number of consolidated subsidiaries acquired in recent years. Corresponding to these changes, the presented amounts in the consolidated statement of income and the consolidated statement of cash flows for fiscal 2014 have also been reclassified retrospectively to conform to the presentation for fiscal 2015. (Consolidated Statement of Income) • “Direct financing leases” and “Interest on loans and investment securities” have been presented as “Finance revenues.” Certain finance-related revenues previously included in “Other operating revenues” in the amount of ¥3,537 million for fiscal 2014 have been included in “Finance revenues.” • “Brokerage commissions and net gains on investment securities” has been changed to “Gains on investment securities and dividends.” • “Gains (losses) on sales of real estate under operating leases” has been reclassified and combined into “Operating leases.” • “Real estate sales” and sales of goods included in “Other operating revenues” have been reclassified and combined into “Sales of goods and real estate.” “Costs of real estate sales” and costs of goods sold included in “Other operating expenses” have been reclassified and combined into “Costs of goods and real estate sold.” • “Revenues from asset management and servicing” and part of the service-related revenues in the amount of ¥364,023 million for fiscal 2014 previously classified under “Other operating revenues” have been reclassified into “Services income.” “Expenses from asset management and servicing” and part of service-related expenses in the amount of ¥224,128 million for fiscal 2014 previously classified under “Other operating expenses” have been reclassified into “Services expense.” • “Foreign currency transaction loss (gain), net” and revenues and expenses other than service-related previously classified under “Other operating revenues” in the amount of ¥(23,186) million for fiscal 2014 and “Other operating expenses,” in the amount of ¥1,107 million for fiscal 2014 as well as part of expenses previously classified under “Selling, general and administrative expenses,” in the amount of ¥331 million for fiscal 2014 have been reclassified and combined into “Other (income) and expense, net.” (Consolidated Statement of Cash flows) • “Gains on sales of real estate under operating lease” and “Gains on sales of operating lease assets other than real estate” have been combined and presented as “Gains on sales of operating lease assets” in cash flows from operating activities. • “Increase in trade notes, accounts and other receivable” previously included in “Decrease (Increase) in other receivables” has separately been presented. A part of assets in the amount of ¥10,853 million for fiscal 2014 previously included in “Decrease (Increase) in other receivables” has been reclassified into “Other, net” in cash flows from operating activities. • “Increase (Decrease) in trade notes, accounts and other payable” previously included in “Increase (Decrease) in trade notes, accounts payable and other liabilities” has separately been presented. A part of liabilities in the amount of ¥20,585 million for fiscal 2014 previously included in “Increase (Decrease) in trade notes, accounts payable and other liabilities” has been reclassified into “Other, net” in cash flows from operating activities. • “Decrease in accrued expenses” has been reclassified into “Other, net” in cash flows from operating activities. • “Purchases of other operating assets” has been changed to “Purchases of property under facility operations.” A part of assets in the amount of ¥(4,355) million for fiscal 2014 previously included in “Purchases of other operating assets” has been reclassified into “Other, net” in cash flows from investing activities. |
Significant Accounting and Re45
Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Effects of Change in Accounting Principle on Major Line Items and Earnings per Share Amounts in Consolidated Financial Statements | The segment information in the Note 34 “Segment Information” has been restated giving effect to these changes to conform to DAIKYO’s current fiscal year end. Millions of yen 2014 2015 Adjustments Increase (decrease) Adjustments Increase (decrease) Revenues: Sales of goods and real estate ¥ 30,937 ¥ 10,548 Services income 25,205 27,960 Other 661 1,377 Total revenues 56,803 39,885 Expenses: Costs of goods and real estate sold 28,883 6,125 Services expense 21,507 23,760 Selling, general and administrative expenses 3,186 3,804 Other 1,157 999 Total expenses 54,733 34,688 Operating Income 2,070 5,197 Income before Income Taxes and Discontinued Operations ¥ 2,613 ¥ 8,068 Millions of yen, except for per share amounts 2014 2015 Adjustments Adjustments Income from Continuing Operations ¥ 1,296 ¥ 2,184 Net Income 1,296 2,184 Net Income Attributable to the Noncontrolling Interests 726 1,070 Net Income Attributable to ORIX Corporation Shareholders 570 1,114 Basic EPS 0.45 0.84 Diluted EPS 0.43 0.86 Millions of yen 2014 2015 Adjustments Adjustments Net cash provided by operating activities ¥ 7,013 ¥ 30,919 Net cash provided by (used in) investing activities (13,148 ) 3,743 Net cash provided by (used in) financing activities (3,125 ) 3,832 Cash and Cash Equivalents at Beginning of Year 0 (9,260 ) Cash and Cash Equivalents at End of Year (9,260 ) 29,234 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Recorded Amounts of Major Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents recorded amounts of major financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and 2016: March 31, 2015 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Loans held for sale*1 ¥ 15,361 ¥ 0 ¥ 15,361 ¥ 0 Trading securities 1,190,131 50,902 1,139,229 0 Available-for-sale securities 1,356,840 130,519 1,129,270 97,051 Japanese and foreign government bond securities 527,592 0 527,592 0 Japanese prefectural and foreign municipal bond securities 161,477 0 161,477 0 Corporate debt securities 287,613 0 287,613 0 Specified bonds issued by SPEs in Japan 7,280 0 0 7,280 CMBS and RMBS in the Americas 69,976 0 47,318 22,658 Other asset- backed securities and debt securities 147,970 0 81,718 66,252 Equity securities*3 154,932 130,519 23,552 861 Other securities 8,723 0 0 8,723 Investment funds*4 8,723 0 0 8,723 Derivative assets 25,123 6 13,247 11,870 Interest rate swap agreements 890 0 890 0 Options held/written and other 12,103 0 233 11,870 Futures, foreign exchange contracts 5,719 6 5,713 0 Foreign currency swap agreements 6,411 0 6,411 0 Netting*5 (2,858 ) 0 0 0 Net derivative assets 22,265 0 0 0 Other assets 36,038 0 0 36,038 Reinsurance recoverables*6 36,038 0 0 36,038 Total ¥ 2,632,216 ¥ 181,427 ¥ 2,297,107 ¥ 153,682 Liabilities: Derivative liabilities ¥ 29,619 ¥ 762 ¥ 28,857 ¥ 0 Interest rate swap agreements 1,221 0 1,221 0 Options written and other 6,177 0 6,177 0 Futures, foreign exchange contracts 12,268 762 11,506 0 Foreign currency swap agreements 9,788 0 9,788 0 Credit derivatives held 165 0 165 0 Netting*5 (2,858 ) 0 0 0 Net derivative Liabilities 26,761 0 0 0 Accounts Payable 5,533 0 0 5,533 Contingent consideration 5,533 0 0 5,533 Policy Liabilities and Policy Account Balances 1,254,483 0 0 1,254,483 Variable annuity and variable life insurance contracts*7 1,254,483 0 0 1,254,483 Total ¥ 1,289,635 ¥ 762 ¥ 28,857 ¥ 1,260,016 March 31, 2016 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Loans held for sale*1 ¥ 20,673 ¥ 0 ¥ 20,673 ¥ 0 Trading securities 725,821 37,592 688,229 0 Available-for-sale securities 1,347,890 99,347 1,149,021 99,522 Japanese and foreign government bond securities*2 497,355 988 496,367 0 Japanese prefectural and foreign municipal bond securities 169,534 0 169,534 0 Corporate debt securities 410,779 0 410,774 5 Specified bonds issued by SPEs in Japan 3,461 0 0 3,461 CMBS and RMBS in the Americas 97,186 0 58,693 38,493 Other asset- backed securities and debt securities 58,230 0 667 57,563 Equity securities*3 111,345 98,359 12,986 0 Other securities 17,751 0 0 17,751 Investment funds*4 17,751 0 0 17,751 Derivative assets 33,747 48 25,491 8,208 Interest rate swap agreements 93 0 93 0 Options held/written and other 8,789 0 581 8,208 Futures, foreign exchange contracts 18,294 48 18,246 0 Foreign currency swap agreements 6,571 0 6,571 0 Netting*5 (5,757 ) 0 0 0 Net derivative assets 27,990 0 0 0 Other assets 37,855 0 0 37,855 Reinsurance recoverables*6 37,855 0 0 37,855 Total ¥ 2,183,737 ¥ 136,987 ¥ 1,883,414 ¥ 163,336 Liabilities: Derivative liabilities ¥ 19,870 ¥ 533 ¥ 19,337 ¥ 0 Interest rate swap agreements 5,921 0 5,921 0 Options written and other 3,637 0 3,637 0 Futures, foreign exchange contracts 6,655 533 6,122 0 Foreign currency swap agreements 3,601 0 3,601 0 Credit derivatives held 56 0 56 0 Netting*5 (5,757 ) 0 0 0 Net derivative Liabilities 14,113 0 0 0 Policy Liabilities and Policy Account Balances 795,001 0 0 795,001 Variable annuity and variable life insurance contracts*7 795,001 0 0 795,001 Total ¥ 814,871 ¥ 533 ¥ 19,337 ¥ 795,001 *1 A certain subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) on the loans held for sale originated on or after October 1, 2011. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were gains from the change in the fair value of the loans of ¥116 million and ¥246 million for fiscal 2014 and 2015 and a loss from the change in the fair value of the loans of ¥71 million for fiscal 2016. No gains or losses were recognized in earnings for fiscal 2014, 2015 and 2016 attributable to changes in instrument-specific credit risk. The amounts of aggregate unpaid principal balance and aggregate fair value of the loan held for sale as of March 31, 2015, were ¥14,431 million and ¥15,361 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥930 million. The amounts of aggregate unpaid principal balance and aggregate fair value as of March 31, 2016, were ¥19,848 million and ¥20,673 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥825 million. As of March 31, 2015 and 2016, there were no loans that were 90 days or more past due, in non-accrual status, or both. *2 A certain subsidiary that has newly become a consolidated subsidiary of the Company during fiscal 2016, elected the fair value option under ASC 825 (“Financial Instruments”) for investments in foreign government bond securities included in available-for-sale securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income was a loss of ¥9 million from the change in the fair value of those investments for fiscal 2016. The amounts of aggregate fair value elected the fair value option was ¥988 million as of March 31, 2016. *3 A certain subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) for investments in equity securities included in available-for-sale securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥333 million and ¥1,070 million and a loss of ¥202 million from the change in the fair value of those investments for fiscal 2014, 2015 and 2016. The amount of aggregate fair value elected the fair value option were ¥8,168 million and ¥16,227 million as of March 31, 2015 and 2016, respectively. *4 Certain subsidiaries elected the fair value option under ASC 825 (“Financial Instruments”) for investments in some funds. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥1,412 million and ¥1,301 million and a loss of ¥4 million from the change in the fair value of those investments for fiscal 2014, 2015 and 2016. The amounts of aggregate fair value were ¥8,723 million and ¥10,152 million as of March 31, 2015 and 2016, respectively. *5 It represents the amount offset under counterparty netting of derivative assets and liabilities. *6 Certain subsidiaries elected the fair value option under ASC 825 (“Financial Instruments”) for certain reinsurance contracts held. The fair value of the reinsurance contracts elected for the fair value option in other assets were ¥36,038 million and ¥37,855 million as of March 31, 2015 and 2016, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings for fiscal 2015 and 2016, see Note 23 “Life Insurance Operations.” *7 A certain subsidiary elected the fair value option under ASC 825 (“Financial Instruments”) for the entire variable annuity and variable life insurance contracts held in order to match the earnings recognized for the changes in the fair value of policy liabilities and policy account balances with earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and the changes in the fair value of reinsurance contracts. The fair value of the variable annuity and variable life insurance contracts elected for the fair value option in policy liabilities and policy account balances were ¥1,254,483 million and ¥795,001 million as of March 31, 2015 and 2016, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings for fiscal 2015 and 2016, see Note 23 “Life Insurance Operations.” |
Reconciliation of Financial Assets and Liabilities (Net) Measured at Fair Value on Recurring Basis Using Significant Unobservable Input | The following table presents the reconciliation of financial assets and liabilities (net) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in fiscal 2014, 2015 and 2016: 2014 Millions of yen Balance at April 1, 2013 Gains or losses (realized/ unrealized) Purchases*3 Sales Settlements*4 Transfers in and/ or out of Level 3 (net)*5 Balance at March 31, Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, Included in earnings*1 Included in other comprehensive Income*2 Total Available-for-sale securities ¥ 136,978 ¥ 4,364 ¥ 4,056 ¥ 8,420 ¥ 56,202 ¥ (13,817 ) ¥ (103,782 ) ¥ 0 ¥ 84,001 ¥ 180 Corporate debt securities 6,524 416 (356 ) 60 0 (1,325 ) (4,598 ) 0 661 0 Specified bonds issued by SPEs in Japan 63,244 327 839 1,166 0 (36 ) (57,602 ) 0 6,772 5 CMBS and RMBS in the Americas 24,338 2,388 963 3,351 14,295 (11,067 ) (13,084 ) 0 17,833 (152 ) Other asset- backed securities and debt securities 42,872 1,233 2,610 3,843 41,907 (1,389 ) (28,498 ) 0 58,735 327 Other securities 5,800 1,767 584 2,351 2,013 (3,824 ) (23 ) 0 6,317 1,767 Investment funds 5,800 1,767 584 2,351 2,013 (3,824 ) (23 ) 0 6,317 1,767 Derivative assets and liabilities (net) 2,099 2,987 0 2,987 0 0 (2,600 ) 0 2,486 2,987 Options held/written and other 2,099 2,987 0 2,987 0 0 (2,600 ) 0 2,486 2,987 Accounts payable 0 2,343 0 2,343 5,176 0 0 0 2,833 2,343 Contingent consideration 0 2,343 0 2,343 5,176 0 0 0 2,833 2,343 2015 Millions of yen Balance at Gains or losses (realized/unrealized) Purchases*3 Sales Settlements*4 Transfers in and/ or out of Level 3 (net)*5 Balance at March 31, Change in unrealized gains or losses included in earnings for assets and liabilities still March 31, Included in Included in other comprehensive income*2 Total Available-for-sale securities ¥ 84,001 ¥ 2,101 ¥ 6,653 ¥ 8,754 ¥ 65,964 ¥ (18,222 ) ¥ (23,796 ) ¥ (19,650 ) ¥ 97,051 ¥ (1,745 ) Corporate debt securities 661 73 (24 ) 49 0 (210 ) (500 ) 0 0 0 Specified bonds issued by SPEs in Japan 6,772 5 101 106 1,700 0 (1,298 ) 0 7,280 5 CMBS and RMBS in the Americas 17,833 60 3,724 3,784 29,372 (3,446 ) (4,447 ) (20,438 ) 22,658 (395 ) Other asset-backed securities and debt securities 58,735 1,963 2,779 4,742 34,892 (14,566 ) (17,551 ) 0 66,252 (1,355 ) Equity securities 0 0 73 73 0 0 0 788 861 0 Other securities 6,317 1,290 1,142 2,432 6,180 (4,870 ) (1,336 ) 0 8,723 1,290 Investment funds 6,317 1,290 1,142 2,432 6,180 (4,870 ) (1,336 ) 0 8,723 1,290 Derivative assets and liabilities (net) 2,486 (13,838 ) 0 (13,838 ) 28,536 0 (5,314 ) 0 11,870 (13,838 ) Options held/written and other 2,486 (13,838 ) 0 (13,838 ) 28,536 0 (5,314 ) 0 11,870 (13,838 ) Other assets 0 (36,072 ) 0 (36,072 ) 72,654 0 (544 ) 0 36,038 (36,072 ) Reinsurance recoverables*6 0 (36,072 ) 0 (36,072 ) 72,654 0 (544 ) 0 36,038 (36,072 ) Accounts payable 2,833 (12,203 ) 0 (12,203 ) 0 0 (9,503 ) 0 5,533 (12,203 ) Contingent consideration 2,833 (12,203 ) 0 (12,203 ) 0 0 (9,503 ) 0 5,533 (12,203 ) Policy Liabilities and Policy Account Balances 0 (100,702 ) 0 (100,702 ) 1,765,444 0 (611,663 ) 0 1,254,483 (100,702 ) Variable annuity and variable life insurance contracts*7 0 (100,702 ) 0 (100,702 ) 1,765,444 0 (611,663 ) 0 1,254,483 (100,702 ) 2016 Millions of yen Balance at Gains or losses (realized/unrealized) Purchases*3 Sales Settlements*4 Transfers in and/ or out of Level 3 (net)*5 Balance at March 31, Change in unrealized gains or losses included in earnings for assets and held at Included in earnings*1 Included in other comprehensive income*2 Total Available-for-sale securities ¥ 97,051 ¥ 922 ¥ (10,458 ) ¥ (9,536 ) ¥ 47,886 ¥ (15,632 ) ¥ (19,378 ) ¥ (869 ) ¥ 99,522 ¥ (679 ) Corporate debt securities 0 1 0 1 5 (1 ) 0 0 5 0 Specified bonds issued by SPEs in Japan 7,280 5 16 21 0 (1,885 ) (1,955 ) 0 3,461 2 CMBS and RMBS in the Americas 22,658 424 (3,831 ) (3,407 ) 26,431 (2,401 ) (4,788 ) 0 38,493 (763 ) Other asset-backed securities and debt securities 66,252 492 (6,651 ) (6,159 ) 21,450 (11,345 ) (12,635 ) 0 57,563 82 Equity securities 861 0 8 8 0 0 0 (869 ) 0 0 Other securities 8,723 1,146 (2,194 ) (1,048 ) 10,933 (857 ) 0 0 17,751 849 Investment funds 8,723 1,146 (2,194 ) (1,048 ) 10,933 (857 ) 0 0 17,751 849 Derivative assets and liabilities (net) 11,870 (4,596 ) 0 (4,596 ) 5,857 0 (4,923 ) 0 8,208 (4,596 ) Options held/written and other 11,870 (4,596 ) 0 (4,596 ) 5,857 0 (4,923 ) 0 8,208 (4,596 ) Other assets 36,038 (8,482 ) 0 (8,482 ) 10,669 0 (370 ) 0 37,855 (8,482 ) Reinsurance recoverables*6 36,038 (8,482 ) 0 (8,482 ) 10,669 0 (370 ) 0 37,855 (8,482 ) Accounts payable 5,533 3,059 0 3,059 0 0 (2,474 ) 0 0 0 Contingent consideration 5,533 3,059 0 3,059 0 0 (2,474 ) 0 0 0 Policy Liabilities and Policy Account Balances 1,254,483 40,751 0 40,751 0 0 (418,731 ) 0 795,001 40,751 Variable annuity and variable life insurance contracts*7 1,254,483 40,751 0 40,751 0 0 (418,731 ) 0 795,001 40,751 *1 Principally, gains and losses from available-for-sale securities are included in “Gains on investment securities and dividends”, “Write-downs of securities” or “Life insurance premiums and related investment income”; other securities are included in “Gains on investment securities and dividends” and derivative assets and liabilities (net) are included in “Other (income) and expense, net” and gains and losses from accounts payable are included in “Other (income) and expense, net” respectively. Also, for available-for-sale securities, amortization of interest recognized in finance revenues is included in these columns. *2 Unrealized gains and losses from available-for-sale securities are included in “Net change of unrealized gains (losses) on investment in securities.” *3 Increases resulting from an acquisition of a subsidiary and insurance contracts ceded to reinsurance companies are included. *4 Decreases resulting from the receipts of reimbursements for benefits, and decreases resulting from insurance payouts to variable annuity and variable life policyholders due to death, surrender and maturity of the investment period are included. Due to the elapse of the computation period of the contingent consideration during fiscal 2016, the unsettled payment is included in a decrease of Accounts payable. *5 The amount reported in “Transfers in and/or out of Level 3 (net)” is the fair value at the beginning of quarter during which the transfers occur. *6 “Included in earnings” in the above table includes changes in the fair value of reinsurance contracts recorded in “Life insurance costs” and reinsurance premiums, net of reinsurance benefits received, recorded in “Life insurance premiums and related investment income.” *7 “Included in earnings” in the above table is recorded in “Life insurance costs” and includes changes in the fair value of policy liabilities and policy account balances resulting from gains or losses on the underlying investment assets managed on behalf of variable annuity and variable life policyholders, and the changes in the minimum guarantee risks relating to variable annuity and variable life insurance contracts as well as insurance costs recognized for insurance and annuity payouts as a result of insured events. |
Recorded Amounts of Major Assets Measured at Fair Value on Nonrecurring Basis | The following table presents recorded amounts of assets measured at fair value on a nonrecurring basis as of March 31, 2015 and 2016. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment: March 31, 2015 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 21,537 ¥ 0 ¥ 0 ¥ 21,537 Investment in operating leases and property under facility operations 67,500 0 0 67,500 Land and buildings undeveloped or under construction 8,084 0 0 8,084 Certain investment in affiliates 1,220 0 0 1,220 Goodwill 2,435 0 0 2,435 Total ¥ 100,776 ¥ 0 ¥ 0 ¥ 100,776 March 31, 2016 Millions of yen Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 17,511 ¥ 0 ¥ 0 ¥ 17,511 Investment in operating leases and property under facility operations 25,681 0 0 25,681 Total ¥ 43,192 ¥ 0 ¥ 0 ¥ 43,192 |
Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table provides information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets or liabilities measured at fair value on a recurring basis as of March 31, 2015 and 2016. March 31, 2015 Millions of Valuation technique(s) Significant unobservable inputs Range (Weighted average) Fair value Assets: Available-for-sale securities Specified bonds issued by SPEs in Japan ¥ 2,543 Discounted cash flows Discount rate 0.9% – 3.6% (2.2%) 4,737 Appraisals/Broker quotes — — CMBS and RMBS in the Americas 22,658 Discounted cash flows Discount rate 13.6% – 32.4% (18.2%) Probability of default 0.0% – 22.0% (7.2%) Other asset-backed securities and debt securities 7,583 Discounted cash flows Discount rate 1.2% – 32.4% (13.2%) Probability of default 0.8% – 1.3% (1.0%) 58,669 Appraisals/Broker quotes — — Equity securities 861 Discounted cash flows Discount rate 6.2% (6.2%) Other securities Investment funds 8,723 Internal cash flows Discount rate 12.0% – 28.0% (15.8%) Derivative assets Options held/written and other 7,982 Discounted cash flows Discount rate 10.0% – 15.0% (11.8%) 3,888 Appraisals/Broker quotes — — Other assets Reinsurance recoverables 36,038 Discounted cash flows Discount rate (0.1)% – 0.8% (0.2%) Mortality rate 0.0% – 100.0% (1.3%) Lapse rate 1.5% – 54.0% (20.8%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% (100.0%) Total ¥ 153,682 Liabilities: Accounts payable Contingent consideration ¥ 5,533 Monte Carlo simulation Discount rate 13.9% (13.9%) Policy liabilities and Policy Account Balances Valuable annuity and variable life insurance contracts 1,254,483 Discounted cash flows Discount rate (0.1)% – 0.8% (0.2%) Mortality rate 0.0% – 100.0% (1.3%) Lapse rate 1.5% – 54.0% (20.8%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% (100.0%) Total ¥ 1,260,016 March 31, 2016 Millions of Valuation technique(s) Significant unobservable inputs Range (Weighted average) Fair value Assets: Available-for-sale securities Corporate debt securities ¥ 5 Appraisals/Broker quotes — — Specified bonds issued by SPEs in Japan 806 Discounted cash flows Discount rate 0.9 % (0.9%) 2,655 Appraisals/Broker quotes — — CMBS and RMBS in the Americas 38,493 Discounted cash flows Discount rate 6.4% – 32.4% (18.5%) Probability of default 0.0% – 34.0% (8.2%) Other asset-backed securities and debt securities 7,432 Discounted cash flows Discount rate 1.0% – 32.4% (12.7%) Probability of default 0.7% – 1.1% (0.9%) 50,131 Appraisals/Broker quotes — — Other securities Investment funds 10,153 Internal cash flows Discount rate 10.0% – 40.0% (13.6%) 7,598 Appraisals/Broker quotes — — Derivative assets Options held/written and other 4,876 Discounted cash flows Discount rate 10.0% – 15.0% (11.7%) 3,332 Appraisals/Broker quotes — — Other assets Reinsurance recoverables 37,855 Discounted cash flows Discount rate (0.2)% – 0.5% (0.1%) Mortality rate 0.0% – 100.0% (0.9%) Lapse rate 1.5% – 54.0% (15.0%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% (99.4%) Total ¥ 163,336 Liabilities: Policy liabilities and Policy Account Balances Valuable annuity and variable life insurance contracts 795,001 Discounted cash flows Discount rate (0.2)% – 0.5% (0.1%) Mortality rate 0.0% – 100.0% (1.0%) Lapse rate 1.5% – 54.0% (14.5%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% (85.2%) Total ¥ 795,001 |
Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets Measured at Fair Value on Nonrecurring Basis | The following table provides information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets measured at fair value on a nonrecurring basis as of March 31, 2015 and 2016. March 31, 2015 Millions of Valuation technique(s) Significant unobservable inputs Range (Weighted average) Fair value Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 21,537 Discounted cash flows Discount rate 5.8% – 12.0% (9.5%) Direct capitalization Capitalization rate 5.5% – 16.5% (10.4%) Investment in operating leases and property under facility operations 25,732 Discounted cash flows Discount rate 4.1% – 15.0% (5.1%) 41,768 Appraisals — — Land and buildings undeveloped or under construction 8,084 Discounted cash flows Discount rate 5.3% – 10.1% (9.2%) Certain investment in affiliates 1,220 Discounted cash flows Discount rate 9.8% (9.8%) Goodwill 2,435 Discounted cash flows — — Business enterprise value multiples — — Total ¥ 100,776 March 31, 2016 Millions of Valuation technique(s) Significant unobservable inputs Range (Weighted average) Fair value Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 17,511 Discounted cash flows Discount rate 5.3% – 10.9% (9.3%) Direct capitalization Capitalization rate 5.9% – 17.0% (9.9%) Investment in operating leases and property under facility operations 5,679 Discounted cash flows Discount rate 5.3% – 10.0% (5.5%) 20,002 Appraisals — — Total ¥ 43,192 |
Acquisitions and divestitures (
Acquisitions and divestitures (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Robeco Groep N.V. | |
Combined Results of Operations of Company and its Subsidiaries | The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisition had occurred as of April 1, 2012, the beginning of fiscal 2013: Millions of yen 2014 Total revenues ¥ 1,405,276 Income from Continuing Operations 189,061 |
DAIKYO | |
Combined Results of Operations of Company and its Subsidiaries | The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisition had occurred as of April 1, 2012, the beginning of fiscal 2013: Millions of yen 2014 Total revenues ¥ 1,594,033 Income from Continuing Operations 203,243 |
HLIKK | |
Combined Results of Operations of Company and its Subsidiaries | The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisition had occurred as of April 1, 2013, the beginning of fiscal 2014: Millions of yen 2014 2015 Total revenues ¥ 1,819,007 ¥ 2,220,805 Income from Continuing Operations 215,158 259,239 |
Fair Value Amounts Allocated to Assets Acquired and Liabilities Assumed | The company finalized the purchase price allocation during fiscal 2016. As a result, the following table provides fair value amounts allocated to assets acquired and liabilities assumed of HLIKK. Millions of yen Fair value amounts of Cash and Cash Equivalents ¥ 69,244 Installment Loans 282 Investment in Securities 1,847,536 Trade Notes, Accounts and Other Receivable 66,340 Office Facilities 351 Other Assets 319,244 Total Assets 2,302,997 Short-Term Debt 25,000 Trade Notes, Accounts and Other Payable 3,979 Policy Liabilities and Policy Account Balances 2,125,257 Current and Deferred Income Taxes 8,413 Other Liabilities 5,911 Total Liabilities 2,168,560 Net 134,437 Fair value of Consideration transferred 98,355 Bargain purchase gain ¥ 36,082 |
Series of Individually Immaterial Business Acquisitions | |
Combined Results of Operations of Company and its Subsidiaries | The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company and its subsidiaries as though the acquisitions had occurred as of April 1, 2013, the beginning of fiscal 2014: Millions of yen 2014 2015 Total revenues ¥ 1,756,437 ¥ 2,345,327 Income from Continuing Operations 197,772 255,219 |
Fair Value Amounts Allocated to Assets Acquired and Liabilities Assumed | The Company finalized the purchase price allocation during fiscal 2016. As a result, the following table provides fair value amounts allocated to assets acquired and liabilities assumed of the acquired entities. Millions of yen Fair value amounts of Cash and Cash Equivalents ¥ 32,234 Property under Facility Operations 9,289 Trade Notes, Accounts and Other Receivable 37,359 Inventories 21,249 Office Facilities 3,250 Other Assets 158,370 Other 1,359 Total Assets 263,110 Short-Term Debt 4,140 Trade Notes, Accounts and Other Payable 33,963 Current and Deferred Income Taxes 24,457 Long-Term Debt 45,739 Other Liabilities 26,165 Total Liabilities 134,464 Noncontrolling interests 26,025 Aggregate fair value of considerations transferred ¥ 102,621 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Cash Payments | Cash payments during fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Cash payments: Interest ¥ 88,385 ¥ 76,755 ¥ 77,321 Income taxes, net 32,831 83,462 31,046 |
Investment in Direct Financin49
Investment in Direct Financing Leases (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Direct Financing Leases | Investment in direct financing leases at March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Total Minimum lease payments to be received ¥ 1,410,512 ¥ 1,366,454 Less: Estimated executory costs (63,456 ) (57,600 ) Minimum lease payments receivable 1,347,056 1,308,854 Estimated residual value 30,620 31,338 Initial direct costs 5,866 5,557 Unearned lease income (167,088 ) (155,613 ) ¥ 1,216,454 ¥ 1,190,136 |
Minimum Lease Payments Receivable Due in Each of Next Five Years and Thereafter | At March 31, 2016, the amounts due in each of the next five years and thereafter are as follows: Years ending March 31, Millions of yen 2017 ¥ 441,910 2018 313,483 2019 217,794 2020 142,674 2021 76,900 Thereafter 116,093 Total ¥ 1,308,854 |
Investment in Operating Leases
Investment in Operating Leases (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Operating Leases | Investment in operating leases at March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Transportation equipment ¥ 934,430 ¥ 1,076,697 Measuring and information-related equipment 236,922 239,262 Real estate 590,388 531,155 Other 19,767 21,343 1,781,507 1,868,457 Accumulated depreciation (506,801 ) (542,868 ) Net 1,274,706 1,325,589 Accrued rental receivables 21,514 23,610 ¥ 1,296,220 ¥ 1,349,199 |
Depreciation and Various Expenses (Insurance, Property Tax and Other) of Operating Lease | Depreciation and various expenses for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Depreciation expenses ¥ 166,234 ¥ 177,038 ¥ 184,768 Various expenses 50,334 61,119 60,301 ¥ 216,568 ¥ 238,157 ¥ 245,069 |
Minimum Future Rentals Receivable on Non-Cancelable Operating Leases | The minimum future rentals on non-cancelable operating leases due in each of the next five years and thereafter are as follows: Years ending March 31, Millions of yen 2017 ¥ 196,417 2018 138,642 2019 94,783 2020 59,821 2021 34,586 Thereafter 62,532 Total ¥ 586,781 |
Installment Loans (Tables)
Installment Loans (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Composition of Installment Loans By Domicile and Type of Borrower | The composition of installment loans by domicile and type of borrower at March 31, 2015 and 2016 is as follows: Millions of yen 2015 2016 Borrowers in Japan: Consumer— Housing loans ¥ 1,048,216 ¥ 1,122,088 Card loans 243,225 260,533 Other 22,866 23,466 1,314,307 1,406,087 Corporate— Real estate companies 227,568 230,001 Non-recourse loans 41,535 19,951 Commercial, industrial and other companies 401,718 365,371 670,821 615,323 Overseas: Non-recourse loans 83,233 61,260 Commercial, industrial companies and other 367,401 479,039 450,634 540,299 Purchased loans* 42,292 30,524 ¥ 2,478,054 ¥ 2,592,233 * Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 (“Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality”). |
Contractual Maturities of Installment Loans Except Purchased Loans | At March 31, 2016, the contractual maturities of installment loans (except purchased loans) for each of the next five years and thereafter are as follows: Years ending March 31, Millions of yen 2017 ¥ 408,746 2018 287,360 2019 267,473 2020 200,873 2021 219,901 Thereafter 1,177,356 Total ¥ 2,561,709 |
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | The following table provides information about the allowance for credit losses for fiscal 2014, 2015 and 2016: March 31, 2014 Millions of yen Loans Direct financing leases Total Consumer Corporate Purchased loans*1 Non-recourse loans Other Allowance for Credit Losses: Beginning balance ¥ 14,526 ¥ 16,717 ¥ 41,875 ¥ 15,316 ¥ 15,830 ¥ 104,264 Provision 4,437 2,381 837 2,532 3,651 13,838 Charge-offs (5,786 ) (3,590 ) (11,807 ) (3,921 ) (4,421 ) (29,525 ) Recoveries 290 140 798 111 70 1,409 Other*2 6 (6,601 ) 1,041 110 254 (5,190 ) Ending balance ¥ 13,473 ¥ 9,047 ¥ 32,744 ¥ 14,148 ¥ 15,384 ¥ 84,796 Individually evaluated for impairment 3,279 8,534 25,054 12,288 0 49,155 Not individually evaluated for impairment 10,194 513 7,690 1,860 15,384 35,641 Financing receivables: Ending balance ¥ 1,236,414 ¥ 174,204 ¥ 837,329 ¥ 53,341 ¥ 1,094,073 ¥ 3,395,361 Individually evaluated for impairment 11,796 24,902 76,051 23,075 0 135,824 Not individually evaluated for impairment 1,224,618 149,302 761,278 30,266 1,094,073 3,259,537 March 31, 2015 Millions of yen Loans Direct financing leases Total Consumer Corporate Purchased loans*1 Non-recourse loans Other Allowance for Credit Losses: Beginning balance ¥ 13,473 ¥ 9,047 ¥ 32,744 ¥ 14,148 ¥ 15,384 ¥ 84,796 Provision (Reversal) 5,456 (1,080 ) 4,800 (690 ) 3,145 11,631 Charge-offs (7,189 ) (53 ) (13,247 ) (3,390 ) (3,832 ) (27,711 ) Recoveries 835 0 593 432 58 1,918 Other*3 10 234 782 217 449 1,692 Ending balance ¥ 12,585 ¥ 8,148 ¥ 25,672 ¥ 10,717 ¥ 15,204 ¥ 72,326 Individually evaluated for impairment 2,606 7,751 15,541 8,481 0 34,379 Not individually evaluated for impairment 9,979 397 10,131 2,236 15,204 37,947 Financing receivables: Ending balance ¥ 1,330,353 ¥ 124,768 ¥ 965,028 ¥ 42,292 ¥ 1,216,454 ¥ 3,678,895 Individually evaluated for impairment 11,993 22,032 51,793 15,216 0 101,034 Not individually evaluated for impairment 1,318,360 102,736 913,235 27,076 1,216,454 3,577,861 March 31, 2016 Millions of yen Loans Direct financing leases Total Consumer Corporate Purchased loans*1 Non-recourse loans Other Allowance for Credit Losses: Beginning Balance ¥ 12,585 ¥ 8,148 ¥ 25,672 ¥ 10,717 ¥ 15,204 ¥ 72,326 Provision (Reversal) 7,367 (491 ) 3,362 (1,308 ) 2,787 11,717 Charge-offs (7,572 ) (504 ) (5,298 ) (1,236 ) (4,075 ) (18,685 ) Recoveries 543 0 393 232 13 1,181 Other*4 344 (5,353 ) (738 ) (172 ) (549 ) (6,468 ) Ending Balance ¥ 13,267 ¥ 1,800 ¥ 23,391 ¥ 8,233 ¥ 13,380 ¥ 60,071 Individually Evaluated for Impairment 2,770 1,323 12,552 5,888 0 22,533 Not Individually Evaluated for Impairment 10,497 477 10,839 2,345 13,380 37,538 Financing receivables: Ending Balance ¥ 1,461,982 ¥ 81,211 ¥ 996,649 ¥ 30,524 ¥ 1,190,136 ¥ 3,760,502 Individually Evaluated for Impairment 14,101 11,057 37,422 11,013 0 73,593 Not Individually Evaluated for Impairment 1,447,881 70,154 959,227 19,511 1,190,136 3,686,909 *1 Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 (“Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality”). *2 Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥6,562 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. *3 Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. *4 Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥5,265 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. *5 Loans held for sale are not included in the table above. |
Purchased loans | |
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | Changes in the allowance for uncollectible accounts relating to the purchased loans for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Beginning balance ¥ 15,316 ¥ 14,148 ¥ 10,717 Provision (Reversal) 2,532 (690 ) (1,308 ) Charge-offs (3,921 ) (3,390 ) (1,236 ) Recoveries 111 432 232 Other* 110 217 (172 ) Ending balance ¥ 14,148 ¥ 10,717 ¥ 8,233 * Other includes foreign currency translation adjustments. |
Credit Quality of Financing R52
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Information about Impaired Loans | The following table provides information about the impaired loans as of March 31, 2015 and 2016: March 31, 2015 Millions of Yen Portfolio segment Class Loans Individually Evaluated for Impairment Unpaid Principal Balance Related Allowance With no related allowance recorded*1: ¥ 18,404 ¥ 18,359 ¥ 0 Consumer borrowers 450 407 0 Housing loans 450 407 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 17,954 17,952 0 Non-recourse loans Japan 4,975 4,975 0 The Americas 0 0 0 Other Real estate companies 5,167 5,167 0 Entertainment companies 892 892 0 Other 6,920 6,918 0 Purchased loans 0 0 0 With an allowance recorded*2: 82,630 79,418 34,379 Consumer borrowers 11,543 9,737 2,606 Housing loans 4,907 3,118 1,689 Card loans 3,741 3,731 566 Other 2,895 2,888 351 Corporate borrowers 55,871 54,465 23,292 Non-recourse loans Japan 310 310 64 The Americas 16,747 16,747 7,687 Other Real estate companies 15,940 15,708 5,099 Entertainment companies 3,580 3,548 1,429 Other 19,294 18,152 9,013 Purchased loans 15,216 15,216 8,481 Total: ¥ 101,034 ¥ 97,777 ¥ 34,379 Consumer borrowers 11,993 10,144 2,606 Housing loans 5,357 3,525 1,689 Card loans 3,741 3,731 566 Other 2,895 2,888 351 Corporate borrowers 73,825 72,417 23,292 Non-recourse loans Japan 5,285 5,285 64 The Americas 16,747 16,747 7,687 Other Real estate companies 21,107 20,875 5,099 Entertainment companies 4,472 4,440 1,429 Other 26,214 25,070 9,013 Purchased loans 15,216 15,216 8,481 March 31, 2016 Millions of yen Portfolio segment Class Loans Individually Evaluated for Impairment Unpaid Principal Balance Related Allowance With no related allowance recorded*1: ¥ 14,601 ¥ 14,498 ¥ 0 Consumer borrowers 931 852 0 Housing loans 931 852 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 13,670 13,646 0 Non-recourse loans Japan 4,776 4,776 0 The Americas 0 0 0 Other Real estate companies 0 0 0 Entertainment companies 211 211 0 Other 8,683 8,659 0 Purchased loans 0 0 0 With an allowance recorded*2: 58,992 57,758 22,533 Consumer borrowers 13,170 12,628 2,770 Housing loans 3,580 3,058 1,401 Card loans 4,123 4,113 590 Other 5,467 5,457 779 Corporate borrowers 34,809 34,117 13,875 Non-recourse loans Japan 292 292 72 The Americas 5,989 5,988 1,251 Other Real estate companies 8,612 8,480 2,140 Entertainment companies 2,218 2,209 840 Other 17,698 17,148 9,572 Purchased loans 11,013 11,013 5,888 Total: ¥ 73,593 ¥ 72,256 ¥ 22,533 Consumer borrowers 14,101 13,480 2,770 Housing loans 4,511 3,910 1,401 Card loans 4,123 4,113 590 Other 5,467 5,457 779 Corporate borrowers 48,479 47,763 13,875 Non-recourse loans Japan 5,068 5,068 72 The Americas 5,989 5,988 1,251 Other Real estate companies 8,612 8,480 2,140 Entertainment companies 2,429 2,420 840 Other 26,381 25,807 9,572 Purchased loans 11,013 11,013 5,888 *1 “With no related allowance recorded” represents impaired loans with no allowance for credit losses as all amounts are considered to be collectible. *2 “With an allowance recorded” represents impaired loans with the allowance for credit losses as all or a part of the amounts are not considered to be collectible. The following table provides information about the average recorded investments in impaired loans and interest income on impaired loans for fiscal 2014, 2015 and 2016: March 31, 2014 Millions of yen Portfolio segment Class Average Recorded Investments in Impaired Loans* Interest Income on Impaired Loans Interest on Impaired Loans Collected in Cash Consumer borrowers ¥ 11,445 ¥ 295 ¥ 230 Housing loans 8,004 231 178 Card loans 2,453 38 31 Other 988 26 21 Corporate borrowers 134,927 4,146 3,449 Non-recourse loans Japan 15,897 234 219 The Americas 23,119 667 667 Other Real estate companies 38,733 1,154 990 Entertainment companies 10,277 509 343 Other 46,901 1,582 1,230 Purchased loans 25,588 0 0 Total ¥ 171,960 ¥ 4,441 ¥ 3,679 March 31, 2015 Millions of yen Portfolio segment Class Average Recorded Investments in Impaired Loans* Interest Income on Impaired Loans Interest on Impaired Loans Collected in Cash Consumer borrowers ¥ 11,822 ¥ 376 ¥ 273 Housing loans 6,286 268 180 Card loans 3,368 60 51 Other 2,168 48 42 Corporate borrowers 82,986 2,005 1,648 Non-recourse loans Japan 5,975 10 10 The Americas 15,657 502 502 Other Real estate companies 22,009 417 355 Entertainment companies 5,951 202 149 Other 33,394 874 632 Purchased loans 18,736 0 0 Total ¥ 113,544 ¥ 2,381 ¥ 1,921 March 31, 2016 Millions of yen Portfolio segment Class Average Recorded Investments in Impaired Loans* Interest Income on Impaired Loans Interest on Impaired Loans Collected in Cash Consumer borrowers ¥ 13,215 ¥ 317 ¥ 269 Housing loans 5,090 176 148 Card loans 3,970 69 59 Other 4,155 72 62 Corporate borrowers 58,138 974 947 Non-recourse loans Japan 5,117 7 7 The Americas 11,759 275 275 Other Real estate companies 13,843 210 198 Entertainment companies 3,505 102 99 Other 23,914 380 368 Purchased loans 12,864 0 0 Total ¥ 84,217 ¥ 1,291 ¥ 1,216 * Average balances are calculated on the basis of fiscal beginning and quarter-end balances. |
Information about Credit Quality Indicators | The following table provides information about the credit quality indicators as of March 31, 2015 and 2016: March 31, 2015 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer borrowers ¥ 1,311,725 ¥ 11,993 ¥ 6,635 ¥ 18,628 ¥ 1,330,353 Housing loans 1,050,531 5,357 3,898 9,255 1,059,786 Card loans 238,660 3,741 824 4,565 243,225 Other 22,534 2,895 1,913 4,808 27,342 Corporate borrowers 1,015,971 73,825 0 73,825 1,089,796 Non-recourse loans Japan 36,250 5,285 0 5,285 41,535 The Americas 66,486 16,747 0 16,747 83,233 Other Real estate companies 235,493 21,107 0 21,107 256,600 Entertainment companies 101,701 4,472 0 4,472 106,173 Other 576,041 26,214 0 26,214 602,255 Purchased loans 27,076 15,216 0 15,216 42,292 Direct financing leases 1,201,081 0 15,373 15,373 1,216,454 Japan 819,592 0 10,293 10,293 829,885 Overseas 381,489 0 5,080 5,080 386,569 Total ¥ 3,555,853 ¥ 101,034 ¥ 22,008 ¥ 123,042 ¥ 3,678,895 March 31, 2016 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer ¥ 1,439,703 ¥ 14,101 ¥ 8,178 ¥ 22,279 ¥ 1,461,982 Housing loans 1,131,276 4,511 2,267 6,778 1,138,054 Card loans 255,753 4,123 657 4,780 260,533 Other 52,674 5,467 5,254 10,721 63,395 Corporate 1,029,381 48,479 0 48,479 1,077,860 Non-recourse Japan 14,883 5,068 0 5,068 19,951 The Americas 55,271 5,989 0 5,989 61,260 Other Real estate companies 261,558 8,612 0 8,612 270,170 Entertainment companies 98,852 2,429 0 2,429 101,281 Other 598,817 26,381 0 26,381 625,198 Purchased loans 19,511 11,013 0 11,013 30,524 Direct financing leases 1,177,580 0 12,556 12,556 1,190,136 Japan 831,207 0 7,918 7,918 839,125 Overseas 346,373 0 4,638 4,638 351,011 Total ¥ 3,666,175 ¥ 73,593 ¥ 20,734 ¥ 94,327 ¥ 3,760,502 Note: Loans held for sale are not included in the table above. |
Information about Nonaccrual and Past Due Financing Receivables | The following table provides information about the non-accrual and past-due financing receivables as of March 31, 2015 and 2016: March 31, 2015 Millions of yen Past-Due Financing Receivables Portfolio segment Class 30-89 Days Past-Due 90 Days or More Past-Due Total Past-Due Total Financing Receivables Non- Accrual Consumer borrowers ¥ 3,229 ¥ 9,825 ¥ 13,054 ¥ 1,330,353 ¥ 9,825 Housing loans 1,672 6,503 8,175 1,059,786 6,503 Card loans 704 1,202 1,906 243,225 1,202 Other 853 2,120 2,973 27,342 2,120 Corporate borrowers 7,991 33,694 41,685 1,089,796 43,697 Non-recourse loans Japan 0 4,975 4,975 41,535 4,975 The Americas 6,639 9,846 16,485 83,233 14,716 Other Real estate companies 37 8,366 8,403 256,600 8,730 Entertainment companies 0 571 571 106,173 571 Other 1,315 9,936 11,251 602,255 14,705 Direct financing leases 6,142 15,373 21,515 1,216,454 15,373 Japan 1,877 10,293 12,170 829,885 10,293 Overseas 4,265 5,080 9,345 386,569 5,080 Total ¥ 17,362 ¥ 58,892 ¥ 76,254 ¥ 3,636,603 ¥ 68,895 March 31, 2016 Millions of yen Past-due financing receivables Portfolio segment Class 30-89 Days Past-Due 90 Days or More Past-Due Total Past-Due Total Financing Receivables Non- accrual Consumer borrowers ¥ 5,002 ¥ 11,348 ¥ 16,350 ¥ 1,461,982 ¥ 11,348 Housing loans 2,283 4,435 6,718 1,138,054 4,435 Card loans 503 1,103 1,606 260,533 1,103 Other 2,216 5,810 8,026 63,395 5,810 Corporate borrowers 3,018 18,944 21,962 1,077,860 31,464 Non-recourse loans Japan 0 4,776 4,776 19,951 4,776 The Americas 2,370 400 2,770 61,260 5,924 Other Real estate companies 44 2,727 2,771 270,170 2,727 Entertainment companies 0 145 145 101,281 145 Other 604 10,896 11,500 625,198 17,892 Direct financing leases 6,457 12,556 19,013 1,190,136 12,556 Japan 500 7,918 8,418 839,125 7,918 Overseas 5,957 4,638 10,595 351,011 4,638 Total ¥ 14,477 ¥ 42,848 ¥ 57,325 ¥ 3,729,978 ¥ 55,368 Note: Loans held for sale and purchased loans are not included in the table above. |
Information about Troubled Debt Restructurings of Financing Receivables | The following table provides information about troubled debt restructurings of financing receivables that occurred during fiscal 2014, 2015 and 2016: March 31, 2014 Millions of yen Portfolio segment Class Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Consumer borrowers ¥ 3,899 ¥ 2,586 Housing loans 724 334 Card loans 1,898 1,391 Other 1,277 861 Corporate borrowers 14,135 11,097 Non-recourse loans Japan 4,745 2,608 The Americas 4,809 4,723 Other Real estate companies 328 276 Entertainment companies 779 509 Other 3,474 2,981 Total ¥ 18,034 ¥ 13,683 March 31, 2015 Millions of yen Portfolio segment Class Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Consumer borrowers ¥ 5,504 ¥ 4,061 Housing loans 483 263 Card loans 2,566 2,018 Other 2,455 1,780 Corporate borrowers 946 891 Non-recourse loans The Americas 145 145 Other Other 801 746 Total ¥ 6,450 ¥ 4,952 March 31, 2016 Millions of yen Portfolio segment Class Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Consumer borrowers ¥6,436 ¥4,890 Housing loans 71 23 Card loans 2,405 1,910 Other 3,960 2,957 Corporate borrowers 584 582 Non-recourse loans The Americas 575 575 Other Other 9 7 Total ¥7,020 ¥5,472 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2014 and for which there was a payment default during fiscal 2014: March 31, 2014 Millions of yen Portfolio segment Class Recorded Investment Consumer borrowers ¥ 57 Housing loans 18 Card loans 31 Other 8 Corporate borrowers 565 Non-recourse loans The Americas 497 Other Real estate companies 42 Other 26 Total ¥ 622 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2015 and for which there was a payment default during fiscal 2015: March 31, 2015 Millions of yen Portfolio segment Class Recorded Investment Consumer borrowers ¥ 122 Housing loans 27 Card loans 62 Other 33 Corporate borrowers 330 Other Other 330 Total ¥ 452 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2016 and for which there was a payment default during fiscal 2016: March 31, 2016 Millions of yen Portfolio segment Class Recorded Investment Consumer borrowers ¥ 68 Card loans 45 Other 23 Total ¥ 68 |
Investment in Securities (Table
Investment in Securities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Securities | Investment in securities as of March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Trading securities* ¥ 1,190,131 ¥ 725,821 Available-for-sale securities 1,356,840 1,347,890 Held-to-maturity securities 115,599 114,858 Other securities 183,687 156,223 Total ¥ 2,846,257 ¥ 2,344,792 * The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥1,165,347 million and ¥704,313 million as of March 31, 2015 and March 31, 2016, respectively. |
Amortized Cost Basis Amounts, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Values of Available-for-Sale Securities and Held-to-Maturity Securities in Each Major Security Type | The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale securities and held-to-maturity securities in each major security type as of March 31, 2015 and 2016 are as follows: March 31, 2015 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 517,500 ¥ 10,127 ¥ (35 ) ¥ 527,592 Japanese prefectural and foreign municipal bond securities 155,943 5,644 (110 ) 161,477 Corporate debt securities 283,859 3,891 (137 ) 287,613 Specified bonds issued by SPEs in Japan 7,257 54 (31 ) 7,280 CMBS and RMBS in the Americas 67,049 3,073 (146 ) 69,976 Other asset-backed securities and debt securities 147,308 1,286 (624 ) 147,970 Equity securities 104,096 52,568 (1,732 ) 154,932 1,283,012 76,643 (2,815 ) 1,356,840 Held-to-maturity: Japanese government bond securities and other 115,599 14,490 (112 ) 129,977 ¥ 1,398,611 ¥ 91,133 ¥ (2,927 ) ¥ 1,486,817 March 31, 2016 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 464,854 ¥ 32,501 ¥ 0 ¥ 497,355 Japanese prefectural and foreign municipal bond securities 165,465 4,106 (37 ) 169,534 Corporate debt securities 403,349 7,443 (13 ) 410,779 Specified bonds issued by SPEs in Japan 3,422 39 0 3,461 CMBS and RMBS in the Americas 97,692 1,906 (2,412 ) 97,186 Other asset-backed securities and debt securities 63,079 1,744 (6,593 ) 58,230 Equity securities 85,452 33,492 (7,599 ) 111,345 1,283,313 81,231 (16,654 ) 1,347,890 Held-to-maturity: Japanese government bond securities and other 114,858 30,662 0 145,520 ¥ 1,398,171 ¥ 111,893 ¥ (16,654 ) ¥ 1,493,410 |
Information about Available-for-Sale Securities and Held-to-Maturity Securities with Gross Unrealized Losses and Length of Time Individual Securities Have Been in Continuous Unrealized Loss Position | The following table provides information about available-for-sale securities and held-to-maturity securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2015 and 2016, respectively: March 31, 2015 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese and foreign government bond securities ¥ 5,407 ¥ (35 ) ¥ 0 ¥ 0 ¥ 5,407 ¥ (35 ) Japanese prefectural and foreign municipal bond securities 44,782 (110 ) 0 0 44,782 (110 ) Corporate debt securities 81,108 (58 ) 6,363 (79 ) 87,471 (137 ) Specified bonds issued by SPEs in Japan 0 0 1,269 (31 ) 1,269 (31 ) CMBS and RMBS in the Americas 9,754 (31 ) 506 (115 ) 10,260 (146 ) Other asset-backed securities and debt securities 10,950 (304 ) 8,127 (320 ) 19,077 (624 ) Equity securities 6,640 (1,723 ) 585 (9 ) 7,225 (1,732 ) 158,641 (2,261 ) 16,850 (554 ) 175,491 (2,815 ) Held-to-maturity: Japanese government bond securities and other 4,889 (112 ) 0 0 4,889 (112 ) ¥ 163,530 ¥ (2,373 ) ¥ 16,850 ¥ (554 ) ¥ 180,380 ¥ (2,927 ) March 31, 2016 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese prefectural and foreign municipal bond securities ¥ 14,821 ¥ (30 ) ¥ 554 ¥ (7 ) ¥ 15,375 ¥ (37 ) Corporate debt securities 32,969 (13 ) 1,802 0 34,771 (13 ) CMBS and RMBS in the Americas 55,226 (2,234 ) 5,002 (178 ) 60,228 (2,412 ) Other asset-backed securities and debt securities 14,220 (1,857 ) 18,846 (4,736 ) 33,066 (6,593 ) Equity securities 17,040 (7,550 ) 594 (49 ) 17,634 (7,599 ) ¥ 134,276 ¥ (11,684 ) ¥ 26,798 ¥ (4,970 ) ¥ 161,074 ¥ (16,654 ) |
Total Other-Than-Temporary Impairment with Offset for Amount of Total Other-Than-Temporary Impairment Recognized in Other Comprehensive Income | The total other-than-temporary impairment with an offset for the amount of the total other-than-temporary impairment recognized in other comprehensive income (loss) for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Total other-than-temporary impairment losses ¥ 7,992 ¥ 9,077 ¥ 4,517 Portion of loss recognized in other comprehensive income (before taxes) (3 ) (80 ) (2 ) Net impairment losses recognized in earnings ¥ 7,989 ¥ 8,997 ¥ 4,515 |
Roll-Forwards of Amount Related to Credit Losses on Other-Than-Temporarily Impaired Debt Securities Recognized in Earnings | Roll-forwards of the amount related to credit losses on other-than-temporarily impaired debt securities recognized in earnings according to ASC 320-10-35-34 (“Investments—Debt and Equity Securities—Recognition of Other-Than-Temporary Impairments”) for fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Beginning ¥ 7,809 ¥ 1,991 ¥ 2,633 Addition during the period: Credit loss for which an other-than-temporary impairment was not previously recognized 8 456 0 Credit loss for which an other-than-temporary impairment was previously recognized 239 282 49 Reduction during the period: For securities sold or redeemed (3,609 ) (44 ) (604 ) Due to change in intent to sell or requirement to sell (2,456 ) (52 ) (665 ) Ending ¥ 1,991 ¥ 2,633 ¥ 1,413 |
Summary of Contractual Maturities of Debt Securities Classified as Available-for-Sale Securities and Held-to-Maturity Securities | The following is a summary of the contractual maturities of debt securities classified as available-for-sale securities and held-to-maturity securities held as of March 31, 2016: Available-for-sale securities held as of March 31, 2016: Millions of yen Amortized cost Fair value Due within one year ¥ 98,357 ¥ 99,607 Due after one to five years 386,050 388,102 Due after five to ten years 375,770 387,105 Due after ten years 337,684 361,731 ¥ 1,197,861 ¥ 1,236,545 Held-to-maturity securities held as of March 31, 2016: Millions of yen Amortized cost Fair value Due within one year ¥ 294 ¥ 294 Due after ten years 114,564 145,226 ¥ 114,858 ¥ 145,520 |
Securitization Transactions (Ta
Securitization Transactions (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quantitative Information About Delinquencies, Net Credit Losses, and Components of Financial Assets Sold on Securitization and Other Assets Managed Together | Quantitative information about delinquencies, impaired loans and components of financial assets sold on securitization and other assets managed together as of March 31, 2015 and 2016, and quantitative information about net credit loss for fiscal 2014, 2015 and 2016 are as follows: Total principal amount of receivables Millions of yen March 31, 2015 March 31, 2016 Direct financing leases ¥ 1,216,454 ¥ 1,190,136 Installment loans 2,478,054 2,592,233 Assets recorded on the balance sheet 3,694,508 3,782,369 Direct financing leases sold on securitization 894 706 Total assets managed together or sold on securitization ¥ 3,695,402 ¥ 3,783,075 Principal amount of receivables that are 90 days or more past-due and impaired loans Millions of yen March 31, 2015 March 31, 2016 Direct financing leases ¥ 15,373 ¥ 12,556 Installment loans 107,669 81,771 Assets recorded on the balance sheet 123,042 94,327 Direct financing leases sold on securitization 0 0 Total assets managed together or sold on securitization ¥ 123,042 ¥ 94,327 Credit loss Millions of yen 2014 2015 2016 Direct financing leases ¥ 4,351 ¥ 3,774 ¥ 4,062 Installment loans 23,765 22,019 13,442 Assets recorded on the balance sheet 28,116 25,793 17,504 Direct financing leases sold on securitization 0 0 0 Total assets managed together or sold on securitization ¥ 28,116 ¥ 25,793 ¥ 17,504 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entities Disclosure | Information about VIEs (consolidated and non-consolidated) for the Company and its subsidiaries are as follows: 1. Consolidated VIEs March 31, 2015 Millions of yen Types of VIEs Total assets*1 Total liabilities*1 Assets which are pledged as collateral*2 Commitments*3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 1,036 123 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 223,069 65,017 135,723 7,000 (d) VIEs for corporate rehabilitation support business 4,366 34 0 0 (e) VIEs for investment in securities 21,027 8,064 12,928 23,974 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 393,502 250,402 325,236 0 (g) VIEs for securitization of loan receivable originated by third parties 36,452 43,280 36,452 0 (h) VIEs for power generation projects 84,242 31,236 30,227 173,560 (i) Other VIEs 202,708 99,545 187,065 0 Total ¥ 966,402 ¥ 497,701 ¥ 727,631 ¥ 204,534 March 31, 2016 Millions of yen Types of VIEs Total assets*1 Total liabilities*1 Assets which are pledged as collateral*2 Commitments*3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 953 0 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 174,854 56,325 113,869 7,000 (d) VIEs for corporate rehabilitation support business 2,055 40 0 0 (e) VIEs for investment in securities 24,882 9,657 17,336 2,422 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 381,313 256,620 346,169 0 (g) VIEs for securitization of loan receivable originated by third parties 21,550 20,548 21,550 0 (h) VIEs for power generation projects 159,593 82,535 88,119 121,390 (i) Other VIEs 216,632 97,979 213,466 0 Total ¥ 981,832 ¥ 523,704 ¥ 800,509 ¥ 130,812 *1 The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. *2 The assets are pledged as collateral by VIE for financing of the VIE. *3 This item represents remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entities Disclosure | 2. Non-consolidated VIEs March 31, 2015 Millions of yen Carrying amount of the Types of VIEs Total assets Specified non-recourse Investments Maximum exposure (a) VIEs for liquidating customer assets ¥ 32,421 ¥ 0 ¥ 2,091 ¥ 9,551 (b) VIEs for acquisition of real estate and real estate development projects for customers 325,429 14,084 26,283 50,017 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 3,038,819 0 28,584 55,940 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,100,830 0 8,064 8,139 (h) VIEs for power generation projects 0 0 0 0 (i) Other VIEs 26,894 14 3,038 3,052 Total ¥ 4,524,393 ¥ 14,098 ¥ 68,060 ¥ 126,699 March 31, 2016 Millions of yen Total assets Carrying amount of the Types of VIEs Specified non-recourse Investments Maximum exposure (a) VIEs for liquidating customer assets ¥ 33,406 ¥ 0 ¥ 2,091 ¥ 9,551 (b) VIEs for acquisition of real estate and real estate development projects for customers 170,001 4,776 13,039 24,964 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 2,964,616 0 26,174 47,636 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,070,683 0 10,671 10,721 (h) VIEs for power generation projects 20,007 0 1,182 1,182 (i) Other VIEs 104,284 0 4,868 4,868 Total ¥ 4,362,997 ¥ 4,776 ¥ 58,025 ¥ 98,922 * Maximum exposure to loss includes remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Investment in Affiliates (Table
Investment in Affiliates (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Investment in Affiliates | Investment in affiliates at March 31, 2015 and 2016 consists of the following: Millions of yen 2015 2016 Shares ¥ 368,989 ¥ 499,922 Loans 9,098 30,745 ¥ 378,087 ¥ 530,667 |
Combined and Condensed Information Related to Affiliates | Combined and condensed information relating to the affiliates for fiscal 2014, 2015 and 2016 are as follows (some operation data for entities reflect only the period since the Company and its subsidiaries made the investment and on a lag basis): Millions of yen 2014 2015 2016 Operations: Total revenues ¥ 1,086,818 ¥ 1,094,317 ¥ 1,333,838 Income before income taxes 137,698 130,799 177,535 Net income 91,200 109,865 141,964 Financial position: Total assets ¥ 5,704,862 ¥ 6,897,921 ¥ 8,350,901 Total liabilities 4,562,871 5,131,402 6,206,321 Total equity 1,141,991 1,766,519 2,144,580 |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Changes in Goodwill by Reportable Segment | Changes in goodwill by reportable segment for fiscal 2014, 2015 and 2016 are as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Balance at March 31, 2013 Goodwill ¥ 754 ¥ 282 ¥ 19,329 ¥ 11,751 ¥ 15,424 ¥ 79,085 ¥ 126,625 Accumulated impairment losses (257 ) 0 0 (39 ) 0 0 (296 ) 497 282 19,329 11,712 15,424 79,085 126,329 Acquired 550 0 0 14,388 0 169,307 184,245 Impairment 0 0 0 0 0 0 0 Other (net) * 0 0 (29 ) 111 0 25,251 25,333 Balance at March 31, 2014 Goodwill 1,304 282 19,300 26,250 15,424 273,643 336,203 Accumulated impairment losses (257 ) 0 0 (39 ) 0 0 (296 ) 1,047 282 19,300 26,211 15,424 273,643 335,907 Acquired 53,741 0 0 17,967 0 12,043 83,751 Impairment (550 ) 0 (8,708 ) 0 0 (587 ) (9,845 ) Other (net)* 0 0 (97 ) (376 ) 0 (36,725 ) (37,198 ) Balance at March 31, 2015 Goodwill 55,045 282 19,203 43,841 15,424 248,961 382,756 Accumulated impairment losses (807 ) 0 (8,708 ) (39 ) 0 (587 ) (10,141 ) 54,238 282 10,495 43,802 15,424 248,374 372,615 Acquired 1,158 0 0 29,365 0 3,796 34,319 Impairment (30 ) 0 0 0 0 0 (30 ) Other (net)* 0 0 0 (6,260 ) 0 (68,491 ) (74,751 ) Balance at March 31, 2016 Goodwill 56,203 282 19,203 66,946 15,424 184,266 342,324 Accumulated impairment losses (837 ) 0 (8,708 ) (39 ) 0 (587 ) (10,171 ) ¥ 55,366 ¥ 282 ¥ 10,495 ¥ 66,907 ¥ 15,424 ¥ 183,679 ¥ 332,153 * Other includes foreign currency translation adjustments, decreases due to sale of ownership interest in subsidiaries and certain other reclassifications. In the Overseas Business segment, there was a decrease of ¥39,694 million during fiscal 2015 due to the partial sale of shares of STX Energy, which as a result of the sale changed from a consolidated subsidiary to an equity method affiliate. In the Overseas Business segment, there was a decrease of ¥57,153 million during fiscal 2016 due to the partial sale of shares of Houlihan Lokey, which as a result of the sale changed from a consolidated subsidiary to an equity method affiliate. |
Other Intangible Assets | Other intangible assets at March 31, 2015 and 2016 consist of the following: Millions of yen 2015 2016 Intangible assets that have indefinite useful lives: Trade names ¥ 99,395 ¥ 75,860 Asset management contracts 153,778 150,686 Others 2,812 3,906 255,985 230,452 Intangible assets subject to amortization: Software 99,342 94,898 Customer relationships 126,201 125,081 Others 33,071 32,388 258,614 252,367 Accumulated amortization (89,587 ) (96,485 ) Net 169,027 155,882 ¥ 425,012 ¥ 386,334 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Composition of Short Term Debt and Weighted Average Contract Interest Rate on Short Term Debt | The composition of short-term debt and the weighted average contract interest rate on short-term debt at March 31, 2015 and 2016 are as follows: March 31, 2015 Millions of yen Weighted average rate Short-term debt in Japan, mainly from banks ¥ 16,778 0.5 % Short-term debt outside Japan, mainly from banks 178,386 2.4 Commercial paper in Japan 78,072 0.2 Commercial paper outside Japan 11,549 4.0 ¥ 284,785 1.7 March 31, 2016 Millions of yen Weighted average rate Short-term debt in Japan, mainly from banks ¥ 80,846 0.5 % Short-term debt outside Japan, mainly from banks 166,417 2.2 Commercial paper in Japan 94,786 0.1 Commercial paper outside Japan 7,575 4.0 ¥ 349,624 1.3 |
Composition of Long Term Debt, Weighted Average Contract Interest Rate on Long Term Debt and Repayment Due Dates | The composition of long-term debt, the weighted average contract interest rate on long-term debt and the repayment due dates at March 31, 2015 and 2016 are as follows: March 31, 2015 Due (Fiscal Year) Millions of yen Weighted average rate Banks: Fixed rate 2016~2031 ¥ 485,910 1.7 % Floating rate 2016~2032 1,622,729 1.0 Insurance companies and others: Fixed rate 2016~2025 328,639 1.2 Floating rate 2017~2028 250,156 0.7 Unsecured bonds 2016~2025 1,118,766 1.8 Unsecured notes under medium-term note program 2016~2018 35,110 2.9 Payables under securitized lease receivables 2020~2021 157,773 0.5 Payables under securitized loan receivables and investment in securities 2018~2039 133,862 3.2 ¥ 4,132,945 1.4 March 31, 2016 Due (Fiscal Year) Millions of yen Weighted average rate Banks: Fixed rate 2017~2033 ¥ 521,491 1.8 % Floating rate 2017~2033 1,601,178 0.9 Insurance companies and others: Fixed rate 2018~2027 342,720 1.0 Floating rate 2017~2026 259,306 0.8 Unsecured bonds 2017~2025 877,504 1.1 Unsecured notes under medium-term note program 2017~2021 62,653 2.7 Payables under securitized lease receivables 2020~2021 129,005 0.3 Payables under securitized loan receivables and investment in securities 2017~2039 147,049 2.6 ¥ 3,940,906 1.1 |
Schedule of Long Term Debt Repayment | The repayment schedule for the next five years and thereafter for long-term debt at March 31, 2016 is as follows: Years ending March 31, Millions of yen 2017 ¥ 858,090 2018 759,484 2019 612,900 2020 400,214 2021 441,672 Thereafter 868,546 Total ¥ 3,940,906 |
Secured Assets for Short Term and Long Term Debt Payables to Financial Institutions | Other than the assets of the consolidated VIEs pledged as collateral for financing (see Note 11 “Variable Interest Entities”), the Company and certain subsidiaries provide the following assets as collateral for the short-term and long-term debt payables to financial institutions as of March 31, 2016: Millions of yen Minimum lease payments, loans and investment in operating leases ¥ 106,118 Investment in securities 177,266 Property under facility operations 8,781 Other assets and other 17,079 ¥ 309,244 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Deposits | Deposits at March 31, 2015 and 2016 consist of the following: Millions of yen 2015 2016 Time deposits ¥ 1,028,977 ¥ 1,093,238 Other deposits 258,403 305,234 Total ¥ 1,287,380 ¥ 1,398,472 |
Schedule of Time Deposits Maturity | The maturity schedule of time deposits at March 31, 2016 is as follows: Years ending March 31, Millions of yen 2017 ¥ 633,451 2018 205,410 2019 121,611 2020 52,595 2021 80,171 Total ¥ 1,093,238 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income before Income Taxes and Discontinued Operations, and Provision for Income Taxes | Income before income taxes and discontinued operations, and the provision for income taxes in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Income before income taxes and discontinued operations: Japan ¥ 184,504 ¥ 188,601 ¥ 228,527 Overseas 101,835 155,416 162,775 ¥ 286,339 ¥ 344,017 ¥ 391,302 Provision for income taxes: Current— Japan ¥ 19,116 ¥ 9,455 ¥ 34,866 Overseas 27,093 38,264 42,918 46,209 47,719 77,784 Deferred— Japan 49,419 36,112 34,315 Overseas 2,925 5,226 8,213 52,344 41,338 42,528 Provision for income taxes ¥ 98,553 ¥ 89,057 ¥ 120,312 |
Reconciliations of Differences between Tax Provision Computed and Consolidated Provisions for Income Taxes | Reconciliations of the differences between the tax provision computed at the statutory rate and the consolidated provision for income taxes in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Income before income taxes and discontinued operations ¥ 286,339 ¥ 344,017 ¥ 391,302 Tax provision computed at statutory rate ¥ 109,668 ¥ 123,502 ¥ 131,086 Increases (reductions) in taxes due to: Change in valuation allowance* (845 ) 1,839 (1,547 ) Non-deductible expenses for tax purposes 2,382 3,513 2,277 Non-taxable income for tax purposes (3,224 ) (7,633 ) (3,767 ) Effect of nontaxable bargain purchase gain 0 (12,953 ) 0 Effect of lower tax rates on foreign subsidiaries and a domestic life insurance subsidiary (5,805 ) (8,766 ) (3,593 ) Effect of the tax rate change related to the new Japanese tax law (5,824 ) (14,098 ) (7,468 ) Other, net 2,201 3,653 3,324 Provision for income taxes ¥ 98,553 ¥ 89,057 ¥ 120,312 * In fiscal 2015 and 2016, increases in the valuation allowance of ¥1,819 million and decreases in the valuation allowance of ¥12 million due to the amendment to tax loss carryforward rules related to the new Japanese tax law are included in “Change in valuation allowance” in the table above. |
Total Income Tax Recognized | Total income taxes recognized in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Provision for income taxes ¥ 98,553 ¥ 89,057 ¥ 120,312 Income taxes on discontinued operations 4,681 166 0 Income taxes on other comprehensive income (loss): Net unrealized gains (losses) on investment in securities 5,304 6,915 (6,003 ) Defined benefit pension plans 1,456 (4,045 ) (2,954 ) Foreign currency translation adjustments 1,756 6,880 (2,921 ) Net unrealized gains (losses) on derivative instruments 329 (255 ) (1,696 ) Direct adjustments to shareholders’ equity (101 ) (734 ) (2 ) Total income taxes ¥ 111,978 ¥ 97,984 ¥ 106,736 |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences giving rise to the deferred tax assets and liabilities at March 31, 2015 and 2016 are as follows: Millions of yen 2015 2016 Assets: Net operating loss carryforwards ¥ 91,899 ¥ 72,994 Allowance for doubtful receivables on direct financing leases and probable loan losses 20,170 12,883 Investment in securities 11,128 15,306 Policy liabilities and policy account balances 18,273 763 Accrued expenses 30,352 25,537 Investment in operating leases 18,470 16,814 Property under facility operations 10,098 10,211 Installment loans 6,487 8,640 Other 50,961 49,393 257,838 212,541 Less: valuation allowance (50,515 ) (43,220 ) 207,323 169,321 Liabilities: Investment in direct financing leases 6,342 10,471 Investment in operating leases 89,411 90,074 Unrealized gains (losses) on investment in securities 26,361 20,734 Deferred insurance policy acquisition costs 28,494 35,894 Policy liabilities and policy account balances 53,871 41,995 Property under facility operations 2,221 9,256 Other intangible assets 122,996 103,503 Undistributed earnings 68,269 97,156 Prepaid benefit cost 15,205 9,037 Other 55,773 39,265 468,943 457,385 Net deferred tax liability ¥ 261,620 ¥ 288,064 Net deferred tax assets and liabilities at March 31, 2015 and 2016 are reflected in the accompanying consolidated balance sheets under the following captions: Millions of yen 2015 2016 Other assets ¥ 74,449 ¥ 53,296 Income taxes: Deferred 336,069 341,360 Net deferred tax liability ¥ 261,620 ¥ 288,064 |
Net Operating Loss Carryforwards Expire Date | The Company and certain subsidiaries have net operating loss carryforwards of ¥539,796 million at March 31, 2016, which expire as follows: Year ending March 31, Millions of yen 2017 ¥ 366 2018 92,434 2019 32,184 2020 18,161 2021 85,722 Thereafter 279,902 Indefinite period 31,027 Total ¥ 539,796 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Funded Status of Defined Benefit Pension Plans | The funded status of the defined benefit pension plans, which consists of Japanese plans and overseas plans, as of March 31, 2015 and 2016 are as follows: Millions of yen Japanese plans Overseas plans 2015 2016 2015 2016 Change in benefit obligation: Benefit obligation at beginning of year ¥ 82,859 ¥ 86,793 ¥ 68,840 ¥ 110,521 Service cost 4,415 4,401 2,460 3,856 Interest cost 1,159 995 2,251 1,747 Actuarial loss (gain) (169 ) 10,674 46,110 (12,840 ) Foreign currency exchange rate change 0 0 (6,947 ) (2,262 ) Benefits paid (2,573 ) (2,705 ) (1,390 ) (1,336 ) Plan participant’s contributions 0 0 80 88 Business combinations 1,353 0 0 138 Divestitures (251 ) (3,396 ) 0 0 Plan amendments 0 268 (883 ) 0 Benefit obligation at end of year 86,793 97,030 110,521 99,912 Change in plan assets: Fair value of plan assets at beginning of year 104,844 115,864 62,042 87,009 Actual return on plan assets 10,200 (2,043 ) 21,074 (109 ) Employer contribution 3,040 3,072 10,820 1,456 Benefits paid (2,136 ) (2,227 ) (1,296 ) (1,265 ) Plan participant’s contributions 0 0 80 88 Business combinations 0 0 0 0 Divestitures (84 ) (1,610 ) 0 0 Foreign currency exchange rate change 0 0 (5,711 ) (1,999 ) Fair value of plan assets at end of year 115,864 113,056 87,009 85,180 The funded status of the plans ¥ 29,071 ¥ 16,026 ¥ (23,512 ) ¥ (14,732 ) Amount recognized in the consolidated balance sheets consists of: Prepaid benefit cost included in other assets ¥ 42,376 ¥ 28,848 ¥ 8 ¥ 0 Accrued benefit liability included in other liabilities (13,305 ) (12,822 ) (23,520 ) (14,732 ) Net amount recognized ¥ 29,071 ¥ 16,026 ¥ (23,512 ) ¥ (14,732 ) |
Defined Benefit Plan Amount Recognized in Accumulated Other Comprehensive Income (Loss), Pre-tax | Amount recognized in accumulated other comprehensive income (loss), pre-tax, at March 31, 2015 and 2016 consisted of: Millions of yen Japanese plans Overseas plans 2015 2016 2015 2016 Net prior service credit ¥ 5,127 ¥ 4,110 ¥ 1,074 ¥ 959 Net actuarial loss (9,602 ) (25,125 ) (26,674 ) (17,150 ) Net transition obligation (140 ) (91 ) (19 ) (14 ) Total recognized in accumulated other comprehensive loss, pre-tax ¥ (4,615 ) ¥ (21,106 ) ¥ (25,619 ) ¥ (16,205 ) |
Net Pension Cost of Defined Benefit Plans | Net pension cost of the plans for fiscal 2014, 2015 and 2016 consists of the following: Millions of yen 2014 2015 2016 Japanese plans: Service cost ¥ 3,391 ¥ 4,415 ¥ 4,401 Interest cost 1,139 1,159 995 Expected return on plan assets (2,047 ) (2,351 ) (2,575 ) Amortization of prior service credit (1,259 ) (927 ) (928 ) Amortization of net actuarial loss 777 502 (15 ) Amortization of transition obligation 53 53 49 Net periodic pension cost ¥ 2,054 ¥ 2,851 ¥ 1,927 Overseas plans: Service cost ¥ 1,654 ¥ 2,460 ¥ 3,856 Interest cost 1,684 2,251 1,747 Expected return on plan assets (2,389 ) (3,857 ) (4,584 ) Amortization of prior service credit (3 ) (51 ) (113 ) Amortization of net actuarial loss 60 215 1,336 Amortization of transition obligation 3 5 3 Net periodic pension cost ¥ 1,009 ¥ 1,023 ¥ 2,245 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for fiscal 2014, 2015 and 2016 are summarized as follows: Millions of yen 2014 2015 2016 Japanese plans: Current year actuarial gain (loss) ¥ 1,870 ¥ 8,028 ¥ (15,417 ) Amortization of net actuarial loss 777 502 (15 ) Prior service credit due to amendments 743 0 (88 ) Amortization of prior service credit (1,259 ) (927 ) (928 ) Amortization of transition obligation 53 53 49 Plan curtailments and settlements 0 0 (92 ) Total recognized in other comprehensive income (loss), pre-tax ¥ 2,184 ¥ 7,656 ¥ (16,491 ) Overseas plans: Current year actuarial gain (loss) ¥ 2,447 ¥ (28,730 ) ¥ 7,881 Amortization of net actuarial loss 60 215 1,336 Prior service credit due to amendments 344 843 0 Amortization of prior service credit (3 ) (51 ) (113 ) Amortization of transition obligation 3 5 3 Foreign currency exchange rate change (7 ) 1,065 307 Total recognized in other comprehensive income (loss), pre-tax ¥ 2,844 ¥ (26,653 ) ¥ 9,414 |
Significant Assumptions of Japan and Overseas Pension Plans Used to Determine Plan Amounts | Significant assumptions of Japanese pension plans and overseas pension plans used to determine these amounts are as follows: Japanese plans 2014 2015 2016 Weighted-average assumptions used to determine benefit obligations at March 31: Discount rate 1.4 % 1.2 % 0.7 % Rate of increase in compensation levels 5.1 % 4.8 % 4.4 % Weighted-average assumptions used to determine net periodic pension cost for years ended March 31: Discount rate 1.8 % 1.4 % 1.2 % Rate of increase in compensation levels 6.0 % 5.1 % 4.8 % Expected long-term rate of return on plan assets 2.2 % 2.3 % 2.3 % Overseas plans 2014 2015 2016 Weighted-average assumptions used to determine benefit obligations at March 31: Discount rate 3.5 % 1.5 % 1.9 % Rate of increase in compensation levels 2.8 % 2.8 % 2.8 % Weighted-average assumptions used to determine net periodic pension cost for years ended March 31: Discount rate 4.3 % 3.5 % 1.5 % Rate of increase in compensation levels 0.6 % 2.8 % 2.8 % Expected long-term rate of return on plan assets 5.6 % 5.2 % 5.5 % |
Benefits Expected to be Paid | At March 31, 2016, the benefits expected to be paid in each of the next five fiscal years, and in the aggregate for the five years thereafter are as follows: Years ending March 31, Millions of yen Japanese plans Overseas plans 2017 ¥ 2,159 ¥ 1,488 2018 1,785 1,239 2019 1,916 1,301 2020 2,060 1,334 2021 2,165 1,330 2022-2026 14,055 7,757 Total ¥ 24,140 ¥ 14,449 |
Domestic Pension Plans Of Foreign Entity Defined Benefit | |
Fair Value of Pension Plan Assets by Asset Category | The fair value of Japanese pension plan assets at March 31, 2015 and 2016, by asset category, are as follows. The three levels of input used to measure fair value are described in Note 2 “Fair Value Measurement.” Millions of yen March 31, 2015 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Japan Pooled funds*1 ¥ 16,572 ¥ 0 ¥ 16,572 ¥ 0 Other than Japan Pooled funds*2 19,717 0 19,717 0 Debt securities: Japan Pooled funds*3 29,106 0 29,106 0 Other than Japan Pooled funds*4 16,933 0 16,933 0 Other assets: Life insurance company general accounts*5 23,395 0 23,395 0 Others*6 10,141 0 10,141 0 ¥ 115,864 ¥ 0 ¥ 115,864 ¥ 0 *1 These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥39 million and units of ORIX JREIT Inc. in the amounts of ¥277 million at March 31, 2015. *2 These funds invest in listed shares. *3 These funds invest approximately 70% in Japanese government bonds, approximately 10% in Japanese municipal bonds, and approximately 20% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥23 million and investment corporation bonds of ORIX JREIT Inc. in the amounts of ¥16 million at March 31, 2015. *4 These funds invest entirely in foreign government bonds. *5 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *6 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. Millions of yen March 31, 2016 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Japan Pooled funds*1 ¥ 15,663 ¥ 0 ¥ 15,663 ¥ 0 Other than Japan Pooled funds*2 17,829 0 17,829 0 Debt securities: Japan Pooled funds*3 22,324 0 22,324 0 Other than Japan Pooled funds*4 21,760 0 21,760 0 Other assets: Life insurance company general accounts*5 26,300 0 26,300 0 Others*6 9,180 0 9,180 0 ¥ 113,056 ¥ 0 ¥ 113,056 ¥ 0 *1 These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥42 million at March 31, 2016. *2 These funds invest in listed shares. *3 These funds invest approximately 70% in Japanese government bonds, approximately 10% in Japanese municipal bonds, and approximately 20% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥948 million at March 31, 2016. *4 These funds invest entirely in foreign government bonds. *5 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *6 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. |
Overseas Pension Plans Defined Benefit | |
Fair Value of Pension Plan Assets by Asset Category | The fair value of overseas pension plan assets at March 31, 2015 and 2016, by asset category, are as follows. The three levels of input used to measure fair value are described in Note 2 “Fair Value Measurement.” Millions of yen March 31, 2015 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Other than Japan Shares ¥ 33,001 ¥ 33,001 ¥ 0 ¥ 0 Pooled funds*1 70 0 70 0 Debt securities: Other than Japan Government bonds 27,853 27,853 0 0 Municipal bonds 4,855 0 4,855 0 Corporate bonds 20,314 20,314 0 0 Other assets: Life insurance company general accounts*2 196 0 196 0 Others*3 720 0 720 0 ¥ 87,009 ¥ 81,168 ¥ 5,841 ¥ 0 *1 These funds invest in listed shares. *2 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *3 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. Millions of yen March 31, 2016 Total Carrying Value in Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Inputs (Level 3) Equity securities: Other than Japan Shares ¥ 29,367 ¥ 29,367 ¥ 0 ¥ 0 Pooled funds*1 64 0 64 0 Debt securities: Other than Japan Government bonds 46,280 46,280 0 0 Municipal bonds 4,885 0 4,885 0 Corporate bonds 98 98 0 0 Other assets: Life insurance company general accounts*2 2,520 0 2,520 0 Others*3 1,966 0 1,966 0 ¥ 85,180 ¥ 75,745 ¥ 9,435 ¥ 0 *1 These funds invest in listed shares. *2 Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. *3 Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. |
Redeemable Noncontrolling Int62
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Changes in Redeemable Noncontrolling Interests | Changes in redeemable noncontrolling interests in fiscal 2014, 2015 and 2016 are as follows: Millions of yen 2014 2015 2016 Beginning Balance ¥ 41,621 ¥ 53,177 ¥ 66,901 Adjustment of redeemable noncontrolling interests to redemption value 2,851 220 (7,557 ) Contribution to subsidiary 413 0 0 Transaction with noncontrolling interests 1,309 2,269 (3,606 ) Comprehensive income Net Income 4,108 4,970 819 Other comprehensive income Net change of foreign currency translation adjustments 4,099 9,295 919 Total other comprehensive income 4,099 9,295 919 Comprehensive income 8,207 14,265 1,738 Cash dividends (1,224 ) (3,030 ) (11,272 ) Property dividends 0 0 (3,776 ) Partial sale of the parent’s ownership interest in subsidiaries that results in the loss of control 0 0 (34,961 ) Ending Balance ¥ 53,177 ¥ 66,901 ¥ 7,467 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Summary of Information Related to Stock Acquisition Rights | A summary of the Company’s stock acquisition rights is as follows: Years ended March 31, Exercise period Number of shares Exercise price* Yen 2006 From June 22, 2007 to June 21, 2015 4,774,000 1,891 2007 From June 21, 2008 to June 20, 2016 1,942,000 2,962 2008 From July 5, 2009 to June 22, 2017 1,449,800 3,101 2009 From July 18, 2010 to June 24, 2018 1,479,000 1,689 * The number of shares and exercise price of the granted options were adjusted for the 10-for-1 stock split implemented on April 1, 2013. |
Summary of Information about Stock Options Activity | The following table summarizes information about the activity of these stock options for fiscal 2016: Number of shares*2 Weighted average exercise price*1*2 Weighted average remaining contractual life Aggregate intrinsic value Yen Years Millions of yen Outstanding at beginning of the year 6,347,200 ¥ 2,281 Exercised (414,300 ) 1,835 Forfeited or expired (2,852,400 ) 1,989 Outstanding at end of year 3,080,500 2,612 1.08 ¥ 0 Exercisable at end of year 3,080,500 ¥ 2,612 1.08 ¥ 0 *1 The exercise price of the granted options was adjusted in July 2009 for the issuance of new 18 million shares. *2 The number of shares and exercise price of the granted options were adjusted for the 10-for-1 stock split implemented on April 1, 2013. |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Changes in Components of Accumulated Other Comprehensive Income (Loss) | Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders in fiscal 2014, 2015 and 2016 are as follows: Millions of yen Net unrealized Defined Foreign Net unrealized Accumulated Balance at March 31, 2013 ¥ 28,974 ¥ (9,587 ) ¥ (53,759 ) ¥ (1,891 ) ¥ (36,263 ) Net unrealized gains on investment in securities, net of tax of ¥(9,529) million 18,566 18,566 Reclassification adjustment included in net income, net of tax of ¥4,225 million (7,963 ) (7,963 ) Defined benefit pension plans, net of tax 3,848 3,848 Reclassification adjustment included in net income, net of tax of ¥91 million (278 ) (278 ) Foreign currency translation adjustments, net of tax 35,425 35,425 Reclassification adjustment included in net income, net of tax of ¥(17) million 1,503 1,503 Net unrealized gains on derivative instruments, net of tax 572 572 Reclassification adjustment included in net income, net of tax of ¥(298) million 915 915 Total other comprehensive income 10,603 3,570 36,928 1,487 52,588 Less: Other Comprehensive Income Attributable to the Noncontrolling Interest 926 213 11,019 30 12,188 Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 4,099 0 4,099 Balance at March 31, 2014 ¥ 38,651 ¥ (6,230 ) ¥ (31,949 ) ¥ (434 ) ¥ 38 Net unrealized gains on investment in securities, net of tax of ¥(15,416) million 34,914 34,914 Reclassification adjustment included in net income, net of tax of ¥8,501 million (25,047 ) (25,047 ) Defined benefit pension plans, net of tax (14,834 ) (14,834 ) Reclassification adjustment included in net income, net of tax of ¥85 million (118 ) (118 ) Foreign currency translation adjustments, net of tax 38,309 38,309 Reclassification adjustment included in net income, net of tax of ¥120 million (1,154 ) (1,154 ) Net unrealized losses on derivative instruments, net of tax of ¥971 million (2,985 ) (2,985 ) Reclassification adjustment included in net income, net of tax of ¥(716) million 2,424 2,424 Total other comprehensive income (loss) 9,867 (14,952 ) 37,155 (561 ) 31,509 Transaction with noncontrolling interests 0 0 96 0 96 Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (1,812 ) (1,734 ) (4,424 ) (55 ) (8,025 ) Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 9,295 0 9,295 Balance at March 31, 2015 ¥ 50,330 ¥ (19,448 ) ¥ 431 ¥ (940 ) ¥ 30,373 Millions of yen Net unrealized Defined Foreign currency Net unrealized Accumulated Balance at March 31, 2015 ¥ 50,330 ¥ (19,448 ) ¥ 431 ¥ (940 ) ¥ 30,373 Net unrealized gains on investment in securities, net of tax of ¥(3,579) million 14,593 14,593 Reclassification adjustment included in net income, net of tax of ¥9,582 million (17,714 ) (17,714 ) Defined benefit pension plans, net of tax of ¥2,969 million (4,440 ) (4,440 ) Reclassification adjustment included in net income, net of tax of ¥(15) million 317 317 Foreign currency translation adjustments, net of tax of ¥2,921 million (27,763 ) (27,763 ) Reclassification adjustment included in net income, net of tax of ¥0 million 806 806 Net unrealized losses on derivative instruments, net of tax of ¥2,037 million (4,901 ) (4,901 ) Reclassification adjustment included in net income, net of tax of ¥(341) million 838 838 Total other comprehensive income (loss) (3,121 ) (4,123 ) (26,957 ) (4,063 ) (38,264 ) Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest 24 313 (2,679 ) (246 ) (2,588 ) Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 919 0 919 Balance at March 31, 2016 ¥ 47,185 ¥ (23,884 ) ¥ (24,766 ) ¥ (4,757 ) ¥ (6,222 ) |
Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (loss) | Amounts reclassified to net income from accumulated other comprehensive income (loss) for fiscal 2014, 2015 and 2016 are as follows: March 31, 2014 Details about accumulated other comprehensive Reclassification Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 10,902 Gains on investment securities and dividends Sales of investment securities 3,262 Life insurance premiums and related investment income Amortization of investment securities 858 Finance revenues Amortization of investment securities (532 ) Life insurance premiums and related investment income Others (2,302 ) Write-downs of securities, and other 12,188 Total before tax (4,225 ) Tax expenses or benefits ¥ 7,963 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 1,262 See Note 17 “Pension Plans” Amortization of net actuarial loss (837 ) See Note 17 “Pension Plans” Amortization of transition obligation (56 ) See Note 17 “Pension Plans” 369 Total before tax (91 ) Tax expenses or benefits ¥ 278 Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (1,520 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (1,520 ) Total before tax 17 Tax expenses or benefits ¥ (1,503 ) Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 39 Finance revenues/Interest expense Foreign exchange contracts 773 Other (income) and expense, net Foreign currency swap agreements (2,025 ) Finance revenues/Interest expense/ Other (income) and expense, net (1,213 ) Total before tax 298 Tax expenses or benefits ¥ (915 ) Net of tax March 31, 2015 Details about accumulated other comprehensive income components Reclassification Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 32,733 Gains on investment securities and dividends Sales of investment securities 5,599 Life insurance premiums and related investment income Amortization of investment securities 29 Finance revenues Amortization of investment securities (1,960 ) Life insurance premiums and related investment income Others (2,853 ) Write-downs of securities and other 33,548 Total before tax (8,501 ) Tax expenses or benefits ¥ 25,047 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 978 See Note 17 “Pension Plans” Amortization of net actuarial loss (717 ) See Note 17 “Pension Plans” Amortization of transition obligation (58 ) See Note 17 “Pension Plans” 203 Total before tax (85 ) Tax expenses or benefits ¥ 118 Net of tax Foreign currency translation adjustments Sales or liquidation ¥ 1,274 Gains on sales of subsidiaries and affiliates and liquidation losses, net 1,274 Total before tax (120 ) Tax expenses or benefits ¥ 1,154 Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 32 Finance revenues/Interest expense Foreign exchange contracts 1,356 Other (income) and expense, net Foreign currency swap agreements (4,528 ) Finance revenues/Interest expense/ Other (income) and expense, net (3,140 ) Total before tax 716 Tax expenses or benefits ¥ (2,424 ) Net of tax March 31, 2016 Details about accumulated other comprehensive Reclassification Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 25,673 Gains on investment securities and dividends Sales of investment securities 6,453 Life insurance premiums and related investment income Amortization of investment securities (182 ) Finance revenues Amortization of investment securities (1,584 ) Life insurance premiums and related investment income Others (3,064 ) Write-downs of securities and other 27,296 Total before tax (9,582 ) Tax expenses or benefits ¥ 17,714 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 1,041 See Note 17 “Pension Plans” Amortization of net actuarial loss (1,321 ) See Note 17 “Pension Plans” Amortization of transition obligation (52 ) See Note 17 “Pension Plans” (332 ) Total before tax 15 Tax expenses or benefits ¥ (317 ) Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (806 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (806 ) Total before tax 0 Tax expenses or benefits ¥ (806 ) Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ (27 ) Finance revenues/Interest expense Foreign exchange contracts 2,608 Other (income) and expense, net Foreign currency swap agreements (3,760 ) Finance revenues/Interest expense/ Other (income) and expense, net (1,179 ) Total before tax 341 Tax expenses or benefits ¥ (838 ) Net of tax |
ORIX Corporation Shareholders65
ORIX Corporation Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Changes in Number of Shares Issued | Changes in the number of shares issued in fiscal 2014, 2015 and 2016 are as follows: Number of shares 2014 2015 2016 Beginning balance 1,248,714,760 1,322,777,628 1,323,644,528 Exercise of stock options 804,300 866,900 414,300 Conversion of convertible bonds 73,258,568 0 0 Ending balance 1,322,777,628 1,323,644,528 1,324,058,828 |
Gains on Investment Securitie66
Gains on Investment Securities and Dividends (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Gains on Investment Securities and Dividends | Gains on investment securities and dividends in fiscal 2014, 2015 and 2016 consist of the following: Millions of yen 2014 2015 2016 Net gains on investment securities ¥ 19,412 ¥ 50,617 ¥ 31,134 Dividends income, other 7,769 5,778 4,652 ¥ 27,181 ¥ 56,395 ¥ 35,786 |
Life Insurance Operations (Tabl
Life Insurance Operations (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Life Insurance Premiums and Related Investment Income | Life insurance premiums and related investment income in fiscal 2014, 2015 and 2016 consist of the following: Millions of yen 2014 2015 2016 Life insurance premiums ¥ 145,464 ¥ 186,547 ¥ 209,120 Life insurance related investment income (loss) 9,942 164,946 (19,699 ) ¥ 155,406 ¥ 351,493 ¥ 189,421 |
Reinsurance Benefits and Reinsurance Premiums Included in Life Insurance Premiums | Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For fiscal 2015 and 2016, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows: Millions of yen 2015 2016 Reinsurance benefits ¥ 2,438 ¥ 2,298 Reinsurance premiums (11,430 ) (11,530 ) |
Gains or Losses Relating to Variable Annuity and Variable Life Insurance Contracts | The above mentioned gains or losses relating to variable annuity and variable life insurance contracts for fiscal 2015 and 2016 are as follows: Millions of yen 2015 2016 Life insurance premiums and related investment income : Net realized and unrealized gains or losses from investment assets ¥ 174,602 ¥ (33,318 ) Net gains or losses from derivative contracts : (28,227 ) 1,633 Futures (10,216 ) 1,116 Foreign exchange contracts (1,680 ) 496 Options held (16,331 ) 21 Life insurance costs : Changes in the fair value of the policy liabilities and policy account balances ¥ (510,961 ) ¥ (459,482 ) Insurance costs recognized for insurance and annuity payouts as a result of insured events 611,663 418,731 Changes in the fair value of the reinsurance contracts 36,072 (1,817 ) |
Sales of Goods and Real Estate
Sales of Goods and Real Estate (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Schedule of Information about Sales of Goods and Real Estate and Costs of Goods and Real Estate Sold | The following table provides information about sales of goods and real estate and costs of goods and real estate sold for fiscal 2014, 2015 and 2016: Millions of yen 2014 2015 2016 Sales of goods ¥ 125,808 ¥ 352,228 ¥ 707,502 Real estate sales 54,076 98,641 126,508 Sales of goods and real estate ¥ 179,884 ¥ 450,869 ¥ 834,010 Costs of goods sold ¥ 107,047 ¥ 308,723 ¥ 641,715 Costs of real estate sold 55,942 93,298 106,544 Costs of goods and real estate sold ¥ 162,989 ¥ 402,021 ¥ 748,259 |
Services Income and Services 69
Services Income and Services Expense (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Schedule of Information about Services Income and Services Expense | The following table provides information about services income and services expense for fiscal 2014, 2015 and 2016: Millions of yen 2014 2015 2016 Revenues from asset management and servicing ¥ 126,492 ¥ 214,372 ¥ 201,470 Revenues from automobile related business 63,072 70,442 76,134 Revenues from facilities management related business 111,228 115,177 106,632 Revenues from environment and energy related business 49,552 62,286 85,271 Revenues from real estate management and contract work 28,243 171,562 174,170 Revenues from commissions for M&A advisory services, financing advice, financial restructuring advisory services and related services 58,892 78,342 22,983 Other 53,036 53,367 68,526 Services income ¥ 490,515 ¥ 765,548 ¥ 735,186 Expenses from asset management and servicing ¥ 36,150 ¥ 52,825 ¥ 55,283 Expenses from automobile related business 39,767 43,163 46,424 Expenses from facilities management related business 93,521 99,582 90,949 Expenses from environment and energy related business 41,712 51,436 68,888 Expenses from real estate management and contract work 22,626 152,447 156,075 Other 26,502 26,223 27,768 Services expense ¥ 260,278 ¥ 425,676 ¥ 445,387 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations | Discontinued operations in fiscal 2014 and 2015 consist of the following. During fiscal 2016, there was no income from discontinued operations. Millions of yen 2014 2015 Revenues ¥ 26,607 ¥ 2,214 Income from discontinued operations, net* 12,182 463 Provision for income taxes (4,681 ) (166 ) Discontinued operations, net of applicable tax effect ¥ 7,501 ¥ 297 * Income from discontinued operations, net includes aggregate gains on sales of subsidiaries, business units and rental properties and liquidation on losses. The amount of such gains or losses in fiscal 2014 and 2015 were net gain of ¥14,600 million and ¥362 million, respectively. |
Per Share Data (Tables)
Per Share Data (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Reconciliation of Differences Between Basic and Diluted Earnings Per Share (EPS) | Reconciliation of the differences between basic and diluted earnings per share (EPS) in fiscal 2014, 2015 and 2016 is as follows: In fiscal 2014, 2015 and 2016 the diluted EPS calculation excludes stock options for 6,815 thousand shares, 6,499 thousand shares and 4,370 thousand shares, as they were antidilutive. Millions of yen 2014 2015 2016 Income attributable to ORIX Corporation shareholders from continuing operations ¥ 180,069 ¥ 234,651 ¥ 260,169 Effect of dilutive securities Expense related to convertible bond 265 0 0 Income from continuing operations for diluted EPS computation ¥ 180,334 ¥ 234,651 ¥ 260,169 Thousands of shares 2014 2015 2016 Weighted-average shares 1,268,081 1,309,144 1,309,136 Effect of dilutive securities Conversion of convertible bond 40,057 0 0 Exercise of stock options 2,117 1,865 1,377 Weighted-average shares for diluted EPS computation 1,310,255 1,311,009 1,310,513 Yen 2014 2015 2016 Earnings per share for income attributable to ORIX Corporation shareholders from continuing operations: Basic ¥ 142.00 ¥ 179.24 ¥ 198.73 Diluted 137.63 178.99 198.52 |
Derivative Financial Instrume72
Derivative Financial Instruments and Hedging (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Effect of Derivative Instruments on Consolidated Statements of Income, Pre-tax | The effect of derivative instruments on the consolidated statements of income, pre-tax, for fiscal 2014 is as follows. (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ 945 Finance revenues/Interest expense ¥ 39 — ¥ 0 Foreign exchange contracts (948 ) Other (income) and expense, net 773 — 0 Foreign currency swap agreements 594 Finance revenues/Interest expense/Other (income) and expense, net (2,025 ) Other (income) and expense, net 269 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (2,296 ) Finance revenues/Interest expense ¥ 2,276 Finance revenues/Interest expense Foreign exchange contracts (3,574 ) Other (income) and expense, net 3,574 Other (income) and expense, net Foreign currency swap agreements (2,896 ) Other (income) and expense, net 2,896 Other (income) and expense, net Foreign currency long-term-debt (1,609 ) Other (income) and expense, net 1,609 Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥(23,638) Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥(171 ) — ¥0 Borrowings and bonds in local currency (16,469) — 0 — 0 (4) Trading derivatives or derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 5 Other (income) and expense, net Futures (167 ) Gains on investment securities and dividends Foreign exchange contracts (406 ) Gains on investment securities and dividends Credit derivatives held/written (506 ) Other (income) and expense, net Options written and other (241 ) Other (income) and expense, net The effect of derivative instruments on the consolidated statements of income, pre-tax, for fiscal 2015 is as follows. (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (610 ) Finance revenues/Interest expense ¥ 32 — ¥ 0 Foreign exchange contracts (1,908 ) Other (income) and expense, net 1,356 — 0 Foreign currency swap agreements (1,438 ) Finance revenues/Interest expense/ Other (income) and expense, net (4,528 ) Other (income) and expense, net 510 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (1,298 ) Finance revenues/Interest expense ¥ 1,318 Finance revenues/Interest expense Foreign exchange contracts (26,863 ) Other (income) and expense, net 26,863 Other (income) and expense, net Foreign currency swap agreements (3,398 ) Other (income) and expense, net 3,399 Other (income) and expense, net Foreign currency long-term-debt (1,551 ) Other (income) and expense, net 1,551 Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥(18,670) Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ 1,274 — ¥ 0 Borrowings and bonds in local currency (6,968 ) — 0 — 0 (4) Trading derivatives or derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (127 ) Other (income) and expense, net Futures (10,262 ) Gains on investment securities and dividends Life insurance premiums and related investment income* Foreign exchange contracts (3,463 ) Gains on investment securities and dividends Life insurance premiums and related investment income* Other (income) and expense, net Credit derivatives held 71 Other (income) and expense, net Options held/written and other (16,175 ) Other (income) and expense, net Life insurance premiums and related investment income* * Futures, foreign exchange contracts and options held/written and other in the above table include losses arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2015 (see Note 23 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, for fiscal 2016 is as follows. (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (4,643 ) Finance revenues/Interest expense ¥ (27 ) — ¥ 0 Foreign exchange contracts 491 Other (income) and expense, net 2,608 — 0 Foreign currency swap agreements (2,786 ) Finance revenues/Interest expense/Other (income) and expense, net (3,760 ) Other (income) and expense, net 111 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (608 ) Finance revenues/Interest expense ¥ 608 Finance revenues/Interest expense Foreign exchange contracts 24,746 Other (income) and expense, net (24,746 ) Other (income) and expense, net Foreign currency swap agreements 3,261 Other (income) and expense, net (3,260 ) Other (income) and expense, net Foreign currency long-term-debt 1,648 Other (income) and expense, net (1,648 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ 18,209 Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ (57 ) — ¥ 0 Borrowings and bonds in local currency 11,626 — 0 — 0 (4) Trading derivatives or derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (95 ) Other (income) and expense, net Futures 1,092 Gains on investment securities and dividends Life insurance premiums and related investment income* Foreign exchange contracts 470 Gains on investment securities and dividends Life insurance premiums and related investment income* Other (income) and expense, net Credit derivatives held 109 Other (income) and expense, net Options held/written and other (272 ) Other (income) and expense, net Life insurance premiums and related investment income* * Futures, foreign exchange contracts and options held/written and other in the above table include losses arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2016 (see Note 23 “Life Insurance Operations”). |
Notional Amounts of Derivative Instruments and Other, Fair Values of Derivative Instruments and Other before Offsetting | Notional amounts of derivative instruments and other, fair values of derivative instruments and other before offsetting at March 31, 2015 and 2016 are as follows. March 31, 2015 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance sheets location Fair value Consolidated balance sheets location Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 296,464 ¥ 890 Other Assets ¥ 1,094 Other Liabilities Futures, Foreign exchange contracts 581,510 5,281 Other Assets 11,016 Other Liabilities Foreign currency swap agreements 104,058 6,411 Other Assets 9,788 Other Liabilities Foreign currency long- term-debt 258,313 0 — 0 — Trading derivatives or derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 3,000 ¥ 0 — ¥ 127 Other Liabilities Options held/written and other* 441,586 12,103 Other Assets 6,177 Other Liabilities Futures, Foreign exchange contracts* 111,309 438 Other Assets 1,252 Other Liabilities Credit derivatives held 9,013 0 — 165 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥265,094 million, futures contracts of ¥34,586 million and foreign exchange contracts of ¥13,415 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2015, respectively. Asset derivatives in the above table include fair value of the options held and foreign exchange contracts before offsetting of ¥3,888 million and ¥92 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥690 million and ¥60 million at March 31, 2015, respectively. March 31, 2016 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance sheets location Fair value Consolidated balance sheets location Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 257,700 ¥ 80 Other Assets ¥ 5,686 Other Liabilities Futures, Foreign exchange contracts 1,035,342 17,636 Other Assets 5,966 Other Liabilities Foreign currency swap agreements 96,539 6,571 Other Assets 3,601 Other Liabilities Foreign currency long- term-debt 225,711 0 — 0 — Trading derivatives or derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 4,856 ¥ 13 Other Assets ¥ 235 Other Liabilities Options held/written and other* 246,068 8,789 Other Assets 3,637 Other Liabilities Futures, Foreign exchange contracts* 1,047,878 658 Other Assets 689 Other Liabilities Credit derivatives held 3,380 0 — 56 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥46,926 million, futures contracts of ¥51,021 million and foreign exchange contracts of ¥20,884 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2016, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥3,332 million, ¥25 million and ¥568 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥417 million and ¥98 million at March 31, 2016, respectively. |
Offsetting Assets and Liabili73
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Gross Amounts Recognized, Gross Amounts Offset, and Net Amounts Presented in Consolidated Balance Sheets Regarding to Derivative Assets and Liabilities and Other Assets and Liabilities | The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheet regarding to derivative assets and liabilities and other assets and liabilities as of March 31, 2015 and 2016 are as follows. March 31, 2015 Millions of yen Gross amounts Gross amounts Net amounts Gross amounts not offset Net amount Financial Collateral Derivative assets ¥ 25,123 ¥ (2,858 ) ¥ 22,265 ¥ 0 ¥ (3,888 ) ¥ 18,377 Reverse repurchase, securities borrowing, and similar arrangements*2 9,915 (9,915 ) 0 0 0 0 Total assets ¥ 35,038 ¥ (12,773 ) ¥ 22,265 ¥ 0 ¥ (3,888 ) ¥ 18,377 Derivative liabilities ¥ 29,619 ¥ (2,858 ) ¥ 26,761 ¥ 0 ¥ (277 ) ¥ 26,484 Repurchase, securities lending, and similar arrangements*2 10,590 (9,915) 675 0 0 675 Total liabilities ¥ 40,209 ¥ (12,773 ) ¥ 27,436 ¥ 0 ¥ (277 ) ¥ 27,159 March 31, 2016 Millions of yen Gross amounts Gross amounts Net amounts Gross amounts not offset Net amount Financial Collateral Derivative assets ¥ 33,747 ¥ (5,757 ) ¥ 27,990 ¥ 0 ¥ (3,332 ) ¥ 24,658 Reverse repurchase, securities borrowing, and similar arrangements*2 5,186 (5,186 ) 0 0 0 0 Total assets ¥ 38,933 ¥ (10,943 ) ¥ 27,990 ¥ 0 ¥ (3,332 ) ¥ 24,658 Derivative liabilities ¥ 19,870 ¥ (5,757 ) ¥ 14,113 ¥ 0 ¥ (225 ) ¥ 13,888 Repurchase, securities lending, and similar arrangements*2 5,203 (5,186 ) 17 0 0 17 Total liabilities ¥ 25,073 ¥ (10,943 ) ¥ 14,130 ¥ 0 ¥ (225 ) ¥ 13,905 *1 The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. *2 Reserve repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Gross Amounts Recognized, Gross Amounts Offset, and Net Amounts Presented in Consolidated Balance Sheets Regarding to Derivative Assets and Liabilities and Other Assets and Liabilities | The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheet regarding to derivative assets and liabilities and other assets and liabilities as of March 31, 2015 and 2016 are as follows. March 31, 2015 Millions of yen Gross amounts Gross amounts Net amounts Gross amounts not offset Net amount Financial Collateral Derivative assets ¥ 25,123 ¥ (2,858 ) ¥ 22,265 ¥ 0 ¥ (3,888 ) ¥ 18,377 Reverse repurchase, securities borrowing, and similar arrangements*2 9,915 (9,915 ) 0 0 0 0 Total assets ¥ 35,038 ¥ (12,773 ) ¥ 22,265 ¥ 0 ¥ (3,888 ) ¥ 18,377 Derivative liabilities ¥ 29,619 ¥ (2,858 ) ¥ 26,761 ¥ 0 ¥ (277 ) ¥ 26,484 Repurchase, securities lending, and similar arrangements*2 10,590 (9,915) 675 0 0 675 Total liabilities ¥ 40,209 ¥ (12,773 ) ¥ 27,436 ¥ 0 ¥ (277 ) ¥ 27,159 March 31, 2016 Millions of yen Gross amounts Gross amounts Net amounts Gross amounts not offset Net amount Financial Collateral Derivative assets ¥ 33,747 ¥ (5,757 ) ¥ 27,990 ¥ 0 ¥ (3,332 ) ¥ 24,658 Reverse repurchase, securities borrowing, and similar arrangements*2 5,186 (5,186 ) 0 0 0 0 Total assets ¥ 38,933 ¥ (10,943 ) ¥ 27,990 ¥ 0 ¥ (3,332 ) ¥ 24,658 Derivative liabilities ¥ 19,870 ¥ (5,757 ) ¥ 14,113 ¥ 0 ¥ (225 ) ¥ 13,888 Repurchase, securities lending, and similar arrangements*2 5,203 (5,186 ) 17 0 0 17 Total liabilities ¥ 25,073 ¥ (10,943 ) ¥ 14,130 ¥ 0 ¥ (225 ) ¥ 13,905 *1 The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. *2 Reserve repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Estimated Fair Value of Finan74
Estimated Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Carrying Amount of Financial Instruments Reported in Accompanying Consolidated Financial Statements and Related Market or Fair Value | The following information is provided to help readers gain an understanding of the relationship between carrying amount of financial instruments reported in the accompanying consolidated financial statements and the related market or fair value. For derivative financial instruments, see Note 2 “Fair Value Measurements.” The disclosures do not include investment in direct financing leases, investment in affiliates, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts. March 31, 2015 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 1,190,131 ¥ 1,190,131 ¥ 50,902 ¥ 1,139,229 ¥ 0 Cash and cash equivalents 827,518 827,518 827,518 0 0 Restricted cash 85,561 85,561 85,561 0 0 Installment loans (net of allowance for probable loan losses) 2,420,932 2,439,904 0 231,565 2,208,339 Investment in securities: Practicable to estimate fair value 1,481,162 1,495,540 130,519 1,239,124 125,897 Not practicable to estimate fair value*1 174,964 174,964 0 0 0 Other Assets: Time deposits 13,761 13,761 0 13,761 0 Derivative assets*2 22,265 22,265 0 0 0 Reinsurance recoverables (Investment contracts) 115,116 116,229 0 0 116,229 Liabilities: Short-term debt ¥ 284,785 ¥ 284,785 ¥ 0 ¥ 284,785 ¥ 0 Deposits 1,287,380 1,288,419 0 1,288,419 0 Policy liabilities and Policy account balances (Investment contracts) 298,132 303,359 0 0 303,359 Long-term debt 4,132,945 4,117,259 0 1,417,687 2,699,572 Other Liabilities: Derivative liabilities*2 26,761 26,761 0 0 0 *1 The fair value of investment securities of ¥174,964 million was not estimated, as it was not practical. *2 It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 “Fair Value Measurements.” March 31, 2016 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 725,821 ¥ 725,821 ¥ 37,592 ¥ 688,229 ¥ 0 Cash and cash equivalents 730,420 730,420 730,420 0 0 Restricted cash 80,979 80,979 80,979 0 0 Installment loans (net of allowance for probable loan losses) 2,545,542 2,553,006 0 264,452 2,288,554 Investment in securities: Practicable to estimate fair value 1,480,499 1,511,161 99,347 1,271,506 140,308 Not practicable to estimate fair value*1 138,472 138,472 0 0 0 Other Assets: Time deposits 9,843 9,843 0 9,843 0 Derivative assets*2 27,990 27,990 0 0 0 Reinsurance recoverables Investment contracts 93,838 94,656 0 0 94,656 Liabilities: Short-term debt ¥ 349,624 ¥ 349,624 ¥ 0 ¥ 349,624 ¥ 0 Deposits 1,398,472 1,400,528 0 1,400,528 0 Policy liabilities and Policy account balances (Investment contracts) 306,058 308,064 0 0 308,064 Long-term debt 3,940,906 3,959,166 0 1,106,147 2,853,019 Other Liabilities: Derivative liabilities*2 14,113 14,113 0 0 0 *1 The fair value of investment securities of ¥138,472 million was not estimated, as it was not practical. *2 It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 “Fair Value Measurements.” |
Commitments, Guarantees and C75
Commitments, Guarantees and Contingent Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Minimum Future Rentals on Non-Cancelable Operating Leases | The minimum future rentals on non-cancelable operating leases are as follows: Years ending March 31, Millions of yen 2017 ¥ 7,959 2018 6,506 2019 5,626 2020 5,280 2021 4,171 Thereafter 37,699 Total ¥ 67,241 |
Amounts Due under Non Cancelable Contracts | As of March 31, 2016, the amounts due are as follows: Years ending March 31, Millions of yen 2017 ¥ 3,385 2018 2,918 2019 2,424 2020 1,822 2021 104 Thereafter 21 Total ¥ 10,674 |
Summary of Potential Future Payments, Book Value Recorded as Guarantee Liabilities of Guarantee Contracts Outstanding and Maturity of Longest Guarantee Contracts | The following table represents the summary of potential future payments, book value recorded as guarantee liabilities of the guarantee contracts outstanding and maturity of the longest guarantee contracts as of March 31, 2015 and 2016: 2015 2016 Millions of yen Fiscal year Millions of yen Fiscal year Guarantees Potential future payment Book value of guarantee liabilities Maturity of the longest contract Potential future payment Book value of guarantee liabilities Maturity of the longest contract Corporate loans ¥ 439,253 ¥ 4,959 2022 ¥ 396,340 ¥ 5,875 2023 Transferred loans 213,099 2,357 2045 174,322 1,587 2046 Consumer loans 117,153 11,773 2018 179,225 21,748 2018 Housing loans 59,743 6,422 2051 28,919 5,853 2051 Other 2,963 28 2024 482 179 2024 Total ¥ 832,211 ¥ 25,539 — ¥ 779,288 ¥ 35,242 — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Financial Information of Segments | Financial information of the segments for fiscal 2014, 2015 and 2016 is as follows: Year ended March 31, 2014 Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Revenues ¥ 78,825 ¥ 251,328 ¥ 203,382 ¥ 236,879 ¥ 211,612 ¥ 412,157 ¥ 1,394,183 Finance revenues 37,235 9,472 6,132 18,350 50,406 57,328 178,923 Interest expense 8,594 3,687 9,018 4,077 5,593 28,087 59,056 Depreciation and amortization 3,170 117,357 19,200 2,867 12,644 41,551 196,789 Other significant non-cash items: Provision for doubtful receivables and probable loan losses (974 ) 363 2,079 2,620 3,485 5,673 13,246 Write-downs of long-lived assets 0 1,292 16,958 15 0 1,046 19,311 Increase in policy liabilities and policy account balances 0 0 0 0 28,429 0 28,429 Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net 792 152 4,709 68,758 3,920 6,793 85,124 Discontinued operations 0 0 8,832 383 238 (279 ) 9,174 Segment profits 24,874 37,062 17,956 95,786 49,871 69,688 295,237 Segment assets 992,078 622,009 962,404 552,183 2,166,986 1,972,138 7,267,798 Long-lived assets 26,665 433,342 773,146 75,458 76,491 396,948 1,782,050 Expenditures for long-lived assets 3,505 176,952 32,056 22,428 195 117,419 352,555 Investment in affiliates 18,909 1,718 62,504 59,759 10,971 143,454 297,315 Year ended March 31, 2015 Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Revenues ¥ 85,502 ¥ 263,499 ¥ 182,321 ¥ 666,120 ¥ 425,977 ¥ 561,893 ¥ 2,185,312 Finance revenues 35,624 11,103 4,057 15,650 52,510 63,259 182,203 Interest expense 8,627 3,690 6,968 3,609 5,669 29,989 58,552 Depreciation and amortization 3,373 125,013 16,900 5,919 15,190 47,397 213,792 Other significant non-cash items: Provision for doubtful receivables and probable loan losses 597 372 (85 ) (296 ) 3,975 8,086 12,649 Write-downs of long-lived assets 653 0 29,418 211 0 4,605 34,887 Decrease in policy liabilities and policy account balances 0 0 0 0 (506,043 ) 0 (506,043 ) Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net 740 59 9,633 11,985 633 28,433 51,483 Bargain Purchase Gain 0 0 0 0 36,082 0 36,082 Discontinued operations 0 0 0 463 0 0 463 Segment profits 25,519 40,366 3,484 42,414 120,616 104,143 336,542 Segment assets 1,132,468 662,851 835,386 660,014 3,700,635 2,178,895 9,170,249 Long-lived assets 35,470 450,099 652,524 145,153 49,838 289,097 1,622,181 Expenditures for long-lived assets 8,717 162,323 45,019 70,616 144 106,338 393,157 Investment in affiliates 20,875 2,074 91,275 51,108 3,785 209,027 378,144 Year ended March 31, 2016 Millions of yen Corporate Financial Services Maintenance Leasing Real Investment and Operation Retail Overseas Business Total Revenues ¥ 107,150 ¥ 271,662 ¥ 191,540 ¥ 1,028,355 ¥ 254,289 ¥ 526,008 ¥ 2,379,004 Finance revenues 34,215 12,067 6,720 12,625 55,318 75,004 195,949 Interest expense 7,214 3,545 4,676 3,539 4,654 33,356 56,984 Depreciation and amortization 4,764 127,862 15,908 8,836 17,489 52,606 227,465 Other significant non-cash items: Provision for doubtful receivables and probable loan losses (701 ) 24 (110 ) (940 ) 7,370 7,277 12,920 Write-downs of long-lived assets 0 0 8,036 214 0 4,978 13,228 Decrease in policy liabilities and policy account balances 0 0 0 0 (405,014 ) 0 (405,014 ) Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net 1,064 191 6,048 18,822 796 76,747 103,668 Segment profits 42,418 42,935 42,902 57,220 51,756 142,879 380,110 Segment assets 1,049,867 731,329 739,592 704,156 3,462,772 2,284,733 8,972,449 Long-lived assets 41,170 479,619 600,693 193,970 52,359 386,950 1,754,761 Expenditures for long-lived assets 14,180 151,330 49,858 74,645 439 272,315 562,767 Investment in affiliates 22,755 1,996 91,010 108,237 911 305,674 530,583 |
Reconciliation of Segment Totals to Consolidated Financial Statement Amounts | The reconciliation of segment totals to consolidated financial statement amounts is as follows. Significant items to be reconciled are segment revenues, segment profits and segment assets. Other items do not have a significant difference between segment amounts and consolidated amounts. Millions of yen 2014 2015 2016 Segment revenues: Total revenues for segments ¥ 1,394,183 ¥ 2,185,312 ¥ 2,379,004 Revenues related to corporate assets 6,618 6,531 9,230 Revenues related to assets of certain VIEs 13,989 6,356 5,455 Revenues from inter-segment transactions (12,891 ) (21,702 ) (24,487 ) Revenues from discontinued operations (26,607 ) (2,214 ) 0 Total consolidated revenues ¥ 1,375,292 ¥ 2,174,283 ¥ 2,369,202 Segment profits: Total segment profits ¥ 295,237 ¥ 336,542 ¥ 380,110 Corporate losses (21,642 ) (15,638 ) (5,261 ) Gains related to assets or liabilities of certain VIEs 17,003 3,267 5,632 Discontinued operations, pre-tax (12,182 ) (463 ) 0 Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests, net of applicable tax effect 7,923 20,309 10,821 Total consolidated income before income taxes and discontinued operations ¥ 286,339 ¥ 344,017 ¥ 391,302 Segment assets: Total segment assets ¥ 7,267,798 ¥ 9,170,249 ¥ 8,972,449 Cash and cash equivalents, restricted cash 905,074 913,079 811,399 Allowance for doubtful receivables on direct financing leases and probable loan losses (84,796 ) (72,326 ) (60,071 ) Trade notes, accounts and other receivable 193,369 348,404 294,638 Other corporate assets 532,365 789,636 704,600 Assets of certain VIEs 253,151 294,586 273,891 Total consolidated assets ¥ 9,066,961 ¥ 11,443,628 ¥ 10,996,906 |
Geographical Revenues and Income before Income Taxes | The following information represents geographical revenues and income before income taxes, which are attributed to geographic areas, based on the country location of the Company and its subsidiaries. Millions of yen Year Ended March 31, 2014 Japan The Other*3 Difference between Geographic Total and Consolidated Amounts Consolidated Amounts Total Revenues ¥ 977,427 ¥ 131,797 ¥ 292,675 ¥ (26,607 ) ¥ 1,375,292 Income before Income Taxes*1 211,442 42,901 44,178 (12,182 ) 286,339 Millions of yen Year Ended March 31, 2015 Japan The Other*3 Difference between Geographic Total and Consolidated Amounts Consolidated Amounts Total Revenues ¥ 1,602,610 ¥ 209,923 ¥ 363,964 ¥ (2,214 ) ¥ 2,174,283 Income before Income Taxes*1 228,063 32,382 84,035 (463 ) 344,017 Millions of yen Year Ended March 31, 2016 Japan The Other*3*4 Difference between Geographic Total and Consolidated Amounts Consolidated Amounts Total Revenues ¥ 1,827,582 ¥ 186,186 ¥ 355,434 ¥ 0 ¥ 2,369,202 Income before Income Taxes 241,794 74,546 74,962 0 391,302 *1 Results of discontinued operations pre-tax are included in each amount attributed to each geographic area. *2 Mainly the United States *3 Mainly Asia, Europe, Australasia and Middle East *4 Robeco, one of the Company’s subsidiaries domiciled in the Netherlands, conducts principally an asset management business. Due to the integrated nature of such business with its customer base spread across the world, “Other” locations include the total revenues and the income before income taxes of Robeco for fiscal 2014, 2015 and 2016, respectively. The revenues of Robeco aggregated on a legal entity basis were ¥58,997 million in the Americas and ¥52,169 million in other for fiscal 2014, ¥99,059 million in the Americas and ¥96,966 million in other for fiscal 2015, and ¥108,446 million in the Americas and ¥76,726 million in other for fiscal 2016. |
Significant Accounting and Re77
Significant Accounting and Reporting Policies - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Significant Accounting Policies [Line Items] | |||
A maximum lag period of recognizing the results of subsidiaries and affiliates | 3 months | ||
Increase in additional paid-in capital had such stock splits made prior to October 1, 2001 | ¥ 24,674 | ||
Residential condominiums under development | 81,859 | ¥ 97,320 | |
Finished goods | 58,091 | 68,220 | |
Write-down on residential condominiums under development | 168 | 5,241 | ¥ 5,650 |
Capitalized interest costs related to specific long-term development projects | 1,639 | 1,369 | 1,037 |
Advertising expense | 21,276 | 20,329 | 15,270 |
Finance revenues | 200,889 | 186,883 | 191,700 |
Services income | 735,186 | 765,548 | 490,515 |
Services expense | 445,387 | 425,676 | 260,278 |
Other (income) and expense, net | 3,729 | (23,674) | 21,001 |
Other, net | ¥ (11,112) | 65,033 | 25,924 |
Investment in operating leases | Transportation equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 10 years | ||
Investment in operating leases | Measuring and information-related equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 4 years | ||
Investment in operating leases | Real Estate Asset | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 31 years | ||
Investment in operating leases | Other | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 5 years | ||
Property under Facility Operations | |||
Significant Accounting Policies [Line Items] | |||
Depreciation expenses | ¥ 16,321 | 13,239 | 12,268 |
Accumulated depreciation | ¥ 67,055 | 60,999 | |
Property under Facility Operations | Buildings | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 50 years | ||
Property under Facility Operations | Land improvement | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 60 years | ||
Property under Facility Operations | Property, Plant and Equipment, Other Types | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 30 years | ||
Office Facilities | |||
Significant Accounting Policies [Line Items] | |||
Depreciation expenses | ¥ 5,110 | 4,711 | 3,524 |
Accumulated depreciation | ¥ 45,310 | ¥ 44,443 | |
Office Facilities | Buildings and fixtures | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 65 years | ||
Office Facilities | Machinery and equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated average useful lives | 20 years | ||
Scenario, Adjustment | Decrease (Increase) In Other Receivables | |||
Significant Accounting Policies [Line Items] | |||
Other, net | 10,853 | ||
Scenario, Adjustment | Increase In Trade Notes, Accounts And Other Payable | |||
Significant Accounting Policies [Line Items] | |||
Other, net | 20,585 | ||
Scenario, Adjustment | Purchases of Other Operating Assets | |||
Significant Accounting Policies [Line Items] | |||
Other, net | (4,355) | ||
Scenario, Adjustment | Other operating revenues | |||
Significant Accounting Policies [Line Items] | |||
Finance revenues | 3,537 | ||
Services income | 364,023 | ||
Other (income) and expense, net | (23,186) | ||
Scenario, Adjustment | Other operating expenses | |||
Significant Accounting Policies [Line Items] | |||
Services expense | 224,128 | ||
Other (income) and expense, net | 1,107 | ||
Scenario, Adjustment | Selling, General and Administrative Expense | |||
Significant Accounting Policies [Line Items] | |||
Other (income) and expense, net | ¥ 331 |
Significant Accounting and Re78
Significant Accounting and Reporting Policies (Effects of Change in Accounting Principle on Major Line Items and Earnings per Share Amounts in Consolidated Financial Statements) (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues: | |||
Sales of goods and real estate | ¥ 834,010 | ¥ 450,869 | ¥ 179,884 |
Services income | 735,186 | 765,548 | 490,515 |
Other | 68,526 | 53,367 | 53,036 |
Total revenues | 2,369,202 | 2,174,283 | 1,375,292 |
Expenses: | |||
Costs of goods and real estate sold | 748,259 | 402,021 | 162,989 |
Services expense | 445,387 | 425,676 | 260,278 |
Selling, general and administrative expenses | 422,692 | 427,816 | 316,851 |
Other | 3,729 | (23,674) | 21,001 |
Total expenses | 2,081,461 | 1,917,454 | 1,172,244 |
Operating Income | 287,741 | 256,829 | 203,048 |
Income before Income Taxes and Discontinued Operations | 391,302 | 344,017 | 286,339 |
Income from Continuing Operations | 260,169 | 234,651 | 180,069 |
Net Income | 270,990 | 255,257 | 195,287 |
Net Income Attributable to the Noncontrolling Interests | 10,002 | 15,339 | 3,815 |
Net Income Attributable to ORIX Corporation Shareholders | ¥ 260,169 | ¥ 234,948 | ¥ 187,364 |
Basic EPS | ¥ 198.73 | ¥ 179.47 | ¥ 147.75 |
Diluted EPS | ¥ 198.52 | ¥ 179.21 | ¥ 143.20 |
Net cash provided by operating activities | ¥ 510,562 | ¥ 257,611 | ¥ 478,006 |
Net cash provided by (used in) investing activities | (552,529) | (467,801) | (215,314) |
Net cash provided by (used in) financing activities | (48,001) | 213,432 | (277,704) |
Cash and Cash Equivalents at Beginning of Year | 827,518 | 818,039 | 826,296 |
Cash and Cash Equivalents at End of Year | 730,420 | 827,518 | 818,039 |
Consolidating Adjustments Increase (decrease) | |||
Revenues: | |||
Sales of goods and real estate | 10,548 | 30,937 | |
Services income | 27,960 | 25,205 | |
Other | 1,377 | 661 | |
Total revenues | 39,885 | 56,803 | |
Expenses: | |||
Costs of goods and real estate sold | 6,125 | 28,883 | |
Services expense | 23,760 | 21,507 | |
Selling, general and administrative expenses | 3,804 | 3,186 | |
Other | 999 | 1,157 | |
Total expenses | 34,688 | 54,733 | |
Operating Income | 5,197 | 2,070 | |
Income before Income Taxes and Discontinued Operations | 8,068 | 2,613 | |
Income from Continuing Operations | 2,184 | 1,296 | |
Net Income | 2,184 | 1,296 | |
Net Income Attributable to the Noncontrolling Interests | 1,070 | 726 | |
Net Income Attributable to ORIX Corporation Shareholders | ¥ 1,114 | ¥ 570 | |
Basic EPS | ¥ 0.84 | ¥ 0.45 | |
Diluted EPS | ¥ 0.86 | ¥ 0.43 | |
Net cash provided by operating activities | ¥ 30,919 | ¥ 7,013 | |
Net cash provided by (used in) investing activities | 3,743 | (13,148) | |
Net cash provided by (used in) financing activities | 3,832 | (3,125) | |
Cash and Cash Equivalents at Beginning of Year | ¥ 29,234 | (9,260) | 0 |
Cash and Cash Equivalents at End of Year | ¥ 29,234 | ¥ (9,260) |
Fair Value Measurements (Record
Fair Value Measurements (Recorded Amounts of Major Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | ¥ 27,367 | ¥ 16,891 | |||
Derivative assets, gross amounts recognized | 38,933 | 35,038 | |||
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | (10,943) | (12,773) | |||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 27,990 | 22,265 | |||
Other assets | 37,855 | 36,038 | |||
Derivative liabilities, gross amounts recognized | 25,073 | 40,209 | |||
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | (10,943) | (12,773) | |||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 14,130 | 27,436 | |||
Policy Liabilities and Policy Account Balances | 795,001 | 1,254,483 | |||
Reinsurance Recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other assets | 37,855 | 36,038 | |||
Variable Annuity and Variable Life Insurance Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Policy Liabilities and Policy Account Balances | 795,001 | 1,254,483 | |||
Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 16,227 | 8,168 | |||
Other securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 10,152 | 8,723 | |||
Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | [1] | 0 | 0 | ||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | [1] | 0 | 0 | ||
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | [1] | 0 | 0 | ||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | [1] | 0 | 0 | ||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | [1] | 0 | 0 | ||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | [1] | 0 | 0 | ||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 33,747 | 25,123 | |||
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | (5,757) | (2,858) | ||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 27,990 | 22,265 | |||
Other assets | 37,855 | 36,038 | [3] | ||
Total financial assets | 2,183,737 | 2,632,216 | |||
Derivative liabilities, gross amounts recognized | 19,870 | 29,619 | |||
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | (5,757) | (2,858) | ||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 14,113 | 26,761 | |||
Accounts Payable | 5,533 | ||||
Policy Liabilities and Policy Account Balances | 795,001 | 1,254,483 | |||
Total financial liabilities | 814,871 | 1,289,635 | |||
Fair Value, Measurements, Recurring | Interest rate swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 93 | 890 | |||
Derivative liabilities, gross amounts recognized | 5,921 | 1,221 | |||
Fair Value, Measurements, Recurring | Options held/written and other | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 8,789 | 12,103 | |||
Derivative liabilities, gross amounts recognized | 3,637 | 6,177 | |||
Fair Value, Measurements, Recurring | Futures, foreign exchange contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 18,294 | 5,719 | |||
Derivative liabilities, gross amounts recognized | 6,655 | 12,268 | |||
Fair Value, Measurements, Recurring | Foreign currency swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 6,571 | 6,411 | |||
Derivative liabilities, gross amounts recognized | 3,601 | 9,788 | |||
Fair Value, Measurements, Recurring | Reinsurance Recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other assets | 37,855 | [3] | 36,038 | ||
Fair Value, Measurements, Recurring | Credit derivatives held/written | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities, gross amounts recognized | 56 | 165 | |||
Fair Value, Measurements, Recurring | Contingent consideration | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Accounts Payable | 5,533 | ||||
Fair Value, Measurements, Recurring | Variable Annuity and Variable Life Insurance Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Policy Liabilities and Policy Account Balances | [4] | 795,001 | 1,254,483 | ||
Fair Value, Measurements, Recurring | Loans Held-for-Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [5] | 20,673 | 15,361 | ||
Fair Value, Measurements, Recurring | Trading securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 725,821 | 1,190,131 | |||
Fair Value, Measurements, Recurring | Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 1,347,890 | 1,356,840 | |||
Fair Value, Measurements, Recurring | Available-for-sale securities | Japanese and foreign government bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 497,355 | [6] | 527,592 | ||
Fair Value, Measurements, Recurring | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 169,534 | 161,477 | |||
Fair Value, Measurements, Recurring | Available-for-sale securities | Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 410,779 | 287,613 | |||
Fair Value, Measurements, Recurring | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 3,461 | 7,280 | |||
Fair Value, Measurements, Recurring | Available-for-sale securities | CMBS and RMBS in the Americas | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 97,186 | 69,976 | |||
Fair Value, Measurements, Recurring | Available-for-sale securities | Other asset-backed securities and debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 58,230 | 147,970 | |||
Fair Value, Measurements, Recurring | Available-for-sale securities | Equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [7] | 111,345 | 154,932 | ||
Fair Value, Measurements, Recurring | Other securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 17,751 | 8,723 | |||
Fair Value, Measurements, Recurring | Other securities | Investment funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [8] | 17,751 | 8,723 | ||
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 48 | 6 | |||
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | 0 | 0 | ||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 0 | 0 | |||
Other assets | 0 | 0 | [3] | ||
Total financial assets | 136,987 | 181,427 | |||
Derivative liabilities, gross amounts recognized | 533 | 762 | |||
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | 0 | 0 | ||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 0 | 0 | |||
Accounts Payable | 0 | ||||
Policy Liabilities and Policy Account Balances | 0 | 0 | |||
Total financial liabilities | 533 | 762 | |||
Fair Value, Measurements, Recurring | Level 1 | Interest rate swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 0 | 0 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Options held/written and other | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 0 | 0 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Futures, foreign exchange contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 48 | 6 | |||
Derivative liabilities, gross amounts recognized | 533 | 762 | |||
Fair Value, Measurements, Recurring | Level 1 | Foreign currency swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 0 | 0 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Reinsurance Recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other assets | 0 | [3] | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Credit derivatives held/written | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Contingent consideration | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Accounts Payable | 0 | ||||
Fair Value, Measurements, Recurring | Level 1 | Variable Annuity and Variable Life Insurance Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Policy Liabilities and Policy Account Balances | [4] | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Loans Held-for-Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [5] | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Trading securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 37,592 | 50,902 | |||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 99,347 | 130,519 | |||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Japanese and foreign government bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 988 | [6] | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | CMBS and RMBS in the Americas | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Other asset-backed securities and debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [7] | 98,359 | 130,519 | ||
Fair Value, Measurements, Recurring | Level 1 | Other securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Other securities | Investment funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [8] | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 25,491 | 13,247 | |||
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | 0 | 0 | ||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 0 | 0 | |||
Other assets | 0 | 0 | [3] | ||
Total financial assets | 1,883,414 | 2,297,107 | |||
Derivative liabilities, gross amounts recognized | 19,337 | 28,857 | |||
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | 0 | 0 | ||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 0 | 0 | |||
Accounts Payable | 0 | ||||
Policy Liabilities and Policy Account Balances | 0 | 0 | |||
Total financial liabilities | 19,337 | 28,857 | |||
Fair Value, Measurements, Recurring | Level 2 | Interest rate swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 93 | 890 | |||
Derivative liabilities, gross amounts recognized | 5,921 | 1,221 | |||
Fair Value, Measurements, Recurring | Level 2 | Options held/written and other | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 581 | 233 | |||
Derivative liabilities, gross amounts recognized | 3,637 | 6,177 | |||
Fair Value, Measurements, Recurring | Level 2 | Futures, foreign exchange contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 18,246 | 5,713 | |||
Derivative liabilities, gross amounts recognized | 6,122 | 11,506 | |||
Fair Value, Measurements, Recurring | Level 2 | Foreign currency swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 6,571 | 6,411 | |||
Derivative liabilities, gross amounts recognized | 3,601 | 9,788 | |||
Fair Value, Measurements, Recurring | Level 2 | Reinsurance Recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other assets | 0 | [3] | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Credit derivatives held/written | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities, gross amounts recognized | 56 | 165 | |||
Fair Value, Measurements, Recurring | Level 2 | Contingent consideration | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Accounts Payable | 0 | ||||
Fair Value, Measurements, Recurring | Level 2 | Variable Annuity and Variable Life Insurance Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Policy Liabilities and Policy Account Balances | [4] | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Loans Held-for-Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [5] | 20,673 | 15,361 | ||
Fair Value, Measurements, Recurring | Level 2 | Trading securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 688,229 | 1,139,229 | |||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 1,149,021 | 1,129,270 | |||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Japanese and foreign government bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 496,367 | [6] | 527,592 | ||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 169,534 | 161,477 | |||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 410,774 | 287,613 | |||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | CMBS and RMBS in the Americas | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 58,693 | 47,318 | |||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Other asset-backed securities and debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 667 | 81,718 | |||
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [7] | 12,986 | 23,552 | ||
Fair Value, Measurements, Recurring | Level 2 | Other securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 2 | Other securities | Investment funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [8] | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 8,208 | 11,870 | |||
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | 0 | 0 | ||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 0 | 0 | |||
Other assets | 37,855 | 36,038 | [3] | ||
Total financial assets | 163,336 | 153,682 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | 0 | 0 | ||
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 0 | 0 | |||
Accounts Payable | 5,533 | ||||
Policy Liabilities and Policy Account Balances | 795,001 | 1,254,483 | |||
Total financial liabilities | 795,001 | 1,260,016 | |||
Fair Value, Measurements, Recurring | Level 3 | Interest rate swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 0 | 0 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Options held/written and other | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 8,208 | 11,870 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Futures, foreign exchange contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 0 | 0 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Foreign currency swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative assets, gross amounts recognized | 0 | 0 | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Reinsurance Recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other assets | 37,855 | [3] | 36,038 | ||
Fair Value, Measurements, Recurring | Level 3 | Credit derivatives held/written | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities, gross amounts recognized | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Contingent consideration | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Accounts Payable | 5,533 | ||||
Fair Value, Measurements, Recurring | Level 3 | Variable Annuity and Variable Life Insurance Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Policy Liabilities and Policy Account Balances | [4] | 795,001 | 1,254,483 | ||
Fair Value, Measurements, Recurring | Level 3 | Loans Held-for-Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [5] | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Trading securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 99,522 | 97,051 | |||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Japanese and foreign government bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | [6] | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 5 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 3,461 | 7,280 | |||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | CMBS and RMBS in the Americas | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 38,493 | 22,658 | |||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Other asset-backed securities and debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 57,563 | 66,252 | |||
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [7] | 0 | 861 | ||
Fair Value, Measurements, Recurring | Level 3 | Other securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | 17,751 | 8,723 | |||
Fair Value, Measurements, Recurring | Level 3 | Other securities | Investment funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Fair value measured on recurring basis investments | [8] | ¥ 17,751 | ¥ 8,723 | ||
[1] | It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 "Fair Value Measurements." | ||||
[2] | It represents the amount offset under counterparty netting of derivative assets and liabilities. | ||||
[3] | Certain subsidiaries elected the fair value option under ASC 825 ("Financial Instruments") for certain reinsurance contracts held. The fair value of the reinsurance contracts elected for the fair value option in other assets were ¥36,038 million and ¥37,855 million as of March 31, 2015 and 2016, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings for fiscal 2015 and 2016, see Note 23 "Life Insurance Operations." | ||||
[4] | A certain subsidiary elected the fair value option under ASC 825 ("Financial Instruments") for the entire variable annuity and variable life insurance contracts held in order to match the earnings recognized for the changes in the fair value of policy liabilities and policy account balances with earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and the changes in the fair value of reinsurance contracts. The fair value of the variable annuity and variable life insurance contracts elected for the fair value option in policy liabilities and policy account balances were ¥1,254,483 million and ¥795,001 million as of March 31, 2015 and 2016, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings for fiscal 2015 and 2016, see Note 23 "Life Insurance Operations." | ||||
[5] | A certain subsidiary elected the fair value option under ASC 825 ("Financial Instruments") on the loans held for sale originated on or after October 1, 2011. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association ("Fannie Mae") or institutional investors. Included in "Other (income) and expense, net" in the consolidated statements of income were gains from the change in the fair value of the loans of ¥116 million and ¥246 million for fiscal 2014 and 2015 and a loss from the change in the fair value of the loans of ¥71 million for fiscal 2016. No gains or losses were recognized in earnings for fiscal 2014, 2015 and 2016 attributable to changes in instrument-specific credit risk. The amounts of aggregate unpaid principal balance and aggregate fair value of the loan held for sale as of March 31, 2015, were ¥14,431 million and ¥15,361 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥930 million. The amounts of aggregate unpaid principal balance and aggregate fair value as of March 31, 2016, were ¥19,848 million and ¥20,673 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥825 million. As of March 31, 2015 and 2016, there were no loans that were 90 days or more past due, in non-accrual status, or both. | ||||
[6] | A certain subsidiary that has newly become a consolidated subsidiary of the Company during fiscal 2016, elected the fair value option under ASC 825 ("Financial Instruments") for investments in foreign government bond securities included in available-for-sale securities. Included in "Gains on investment securities and dividends" in the consolidated statements of income was a loss of ¥9 million from the change in the fair value of those investments for fiscal 2016. The amounts of aggregate fair value elected the fair value option was ¥988 million as of March 31, 2016. | ||||
[7] | A certain subsidiary elected the fair value option under ASC 825 ("Financial Instruments") for investments in equity securities included in available-for-sale securities. Included in "Gains on investment securities and dividends" in the consolidated statements of income were gains of ¥333 million and ¥1,070 million and a loss of ¥202 million from the change in the fair value of those investments for fiscal 2014, 2015 and 2016. The amount of aggregate fair value elected the fair value option were ¥8,168 million and ¥16,227 million as of March 31, 2015 and 2016, respectively. | ||||
[8] | Certain subsidiaries elected the fair value option under ASC 825 ("Financial Instruments") for investments in some funds. Included in "Gains on investment securities and dividends" in the consolidated statements of income were gains of ¥1,412 million and ¥1,301 million and a loss of ¥4 million from the change in the fair value of those investments for fiscal 2014, 2015 and 2016. The amounts of aggregate fair value were ¥8,723 million and ¥10,152 million as of March 31, 2015 and 2016, respectively. |
Fair Value Measurements (Reco80
Fair Value Measurements (Recorded Amounts of Major Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Gains (losses) from changes in instrument-specific credit risk | ¥ 0 | ¥ 0 | ¥ 0 |
Aggregate unpaid loan principal balance | 19,848 | 14,431 | |
Aggregate loan fair value | 20,673 | 15,361 | |
Amount by which aggregate fair value of loan exceeds aggregate unpaid principal balance | 825 | 930 | |
Investment funds fair value | 27,367 | 16,891 | |
Other assets | 37,855 | 36,038 | |
Policy Liabilities and Policy Account Balances | 795,001 | 1,254,483 | |
Loans Held-for-Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Gains (losses) from change in fair value | 71 | 246 | 116 |
Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Gains (losses) from change in fair value | 1,070 | 333 | |
Investment funds fair value | 16,227 | 8,168 | |
Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investment funds fair value | 10,152 | 8,723 | |
Reinsurance Recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Other assets | 37,855 | 36,038 | |
Variable Annuity and Variable Life Insurance Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Policy Liabilities and Policy Account Balances | 795,001 | 1,254,483 | |
Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Gains (losses) from change in fair value | 4 | 1,301 | ¥ 1,412 |
Foreign government bond securities | Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Gains (losses) from change in fair value | 9 | ||
Investment funds fair value | 988 | ||
Equity securities | Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Gains (losses) from change in fair value | (202) | ||
Investment funds fair value | ¥ 16,227 | ¥ 8,168 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | ¥ 153,682 | ||||||
Beginning Balance | 1,254,483 | ||||||
Ending Balance | 163,336 | ¥ 153,682 | |||||
Ending Balance | 795,001 | 1,254,483 | |||||
Variable Annuity and Variable Life Insurance Contracts | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 1,254,483 | [1] | 0 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 40,751 | [1],[3] | (100,702) | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | 0 | [1] | 0 | [3] | |||
Gains or losses (realized/ unrealized), total | 40,751 | [1],[4] | (100,702) | ||||
Purchases | 0 | [1] | 1,765,444 | [4] | |||
Sales | 0 | [1],[5] | 0 | ||||
Settlements | (418,731) | [1],[6] | (611,663) | [5] | |||
Transfers in and/or out of Level 3 (net) | [6] | 0 | [1] | 0 | |||
Ending Balance | 795,001 | [1],[5] | 1,254,483 | [1] | ¥ 0 | ||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [2] | 40,751 | [1] | (100,702) | |||
Reinsurance Recoverable | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Ending Balance | 37,855 | ||||||
Other assets | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 36,038 | 0 | |||||
Gains or losses (realized/ unrealized), included in earnings | [2] | (8,482) | (36,072) | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | 0 | 0 | ||||
Gains or losses (realized/ unrealized), total | (8,482) | (36,072) | |||||
Purchases | [4] | 10,669 | 72,654 | ||||
Sales | 0 | 0 | |||||
Settlements | [5] | (370) | (544) | ||||
Transfers in and/or out of Level 3 (net) | [6] | 0 | 0 | ||||
Ending Balance | 37,855 | 36,038 | 0 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [2] | (8,482) | (36,072) | ||||
Other assets | Reinsurance Recoverable | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 36,038 | [7] | 0 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | (8,482) | [7] | (36,072) | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | 0 | [7] | 0 | |||
Gains or losses (realized/ unrealized), total | (8,482) | [7] | (36,072) | ||||
Purchases | [4] | 10,669 | [7] | 72,654 | |||
Sales | 0 | [7] | 0 | ||||
Settlements | [5] | (370) | [7] | (544) | |||
Transfers in and/or out of Level 3 (net) | [6] | 0 | [7] | 0 | |||
Ending Balance | 37,855 | [7] | 36,038 | [7] | 0 | ||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [2] | (8,482) | [7] | (36,072) | |||
Available-for-sale securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 97,051 | 84,001 | 136,978 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 922 | 2,101 | 4,364 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | (10,458) | 6,653 | 4,056 | |||
Gains or losses (realized/ unrealized), total | (9,536) | 8,754 | 8,420 | ||||
Purchases | 47,886 | [4] | 65,964 | [4] | 56,202 | ||
Sales | (15,632) | (18,222) | (13,817) | ||||
Settlements | [5] | (19,378) | (23,796) | (103,782) | |||
Transfers in and/or out of Level 3 (net) | (869) | [6] | (19,650) | [6] | 0 | ||
Ending Balance | 99,522 | 97,051 | 84,001 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | (679) | [2] | (1,745) | [2] | 180 | [6] | |
Available-for-sale securities | Corporate debt securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 0 | 661 | 6,524 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 1 | 73 | 416 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | 0 | (24) | (356) | |||
Gains or losses (realized/ unrealized), total | 1 | 49 | 60 | ||||
Purchases | 5 | [4] | 0 | [4] | 0 | ||
Sales | (1) | (210) | (1,325) | ||||
Settlements | [5] | 0 | (500) | (4,598) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | 0 | [6] | 0 | ||
Ending Balance | 5 | 0 | 661 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | 0 | [2] | 0 | [2] | 0 | [6] | |
Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 7,280 | 6,772 | 63,244 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 5 | 5 | 327 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | 16 | 101 | 839 | |||
Gains or losses (realized/ unrealized), total | 21 | 106 | 1,166 | ||||
Purchases | 0 | [4] | 1,700 | [4] | 0 | ||
Sales | (1,885) | 0 | (36) | ||||
Settlements | [5] | (1,955) | (1,298) | (57,602) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | 0 | [6] | 0 | ||
Ending Balance | 3,461 | 7,280 | 6,772 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | 2 | [2] | 5 | [2] | 5 | [6] | |
Available-for-sale securities | CMBS and RMBS in the Americas | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 22,658 | 17,833 | 24,338 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 424 | 60 | 2,388 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | (3,831) | 3,724 | 963 | |||
Gains or losses (realized/ unrealized), total | (3,407) | 3,784 | 3,351 | ||||
Purchases | 26,431 | [4] | 29,372 | [4] | 14,295 | ||
Sales | (2,401) | (3,446) | (11,067) | ||||
Settlements | [5] | (4,788) | (4,447) | (13,084) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | (20,438) | [6] | 0 | ||
Ending Balance | 38,493 | 22,658 | 17,833 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | (763) | [2] | (395) | [2] | (152) | [6] | |
Available-for-sale securities | Other asset-backed securities and debt securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 66,252 | 58,735 | 42,872 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 492 | 1,963 | 1,233 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | (6,651) | 2,779 | 2,610 | |||
Gains or losses (realized/ unrealized), total | (6,159) | 4,742 | 3,843 | ||||
Purchases | 21,450 | [4] | 34,892 | [4] | 41,907 | ||
Sales | (11,345) | (14,566) | (1,389) | ||||
Settlements | [5] | (12,635) | (17,551) | (28,498) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | 0 | [6] | 0 | ||
Ending Balance | 57,563 | 66,252 | 58,735 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | 82 | [2] | (1,355) | [2] | 327 | [6] | |
Available-for-sale securities | Equity securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 861 | 0 | |||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 0 | 0 | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | 8 | 73 | ||||
Gains or losses (realized/ unrealized), total | 8 | 73 | |||||
Purchases | [4] | 0 | 0 | ||||
Sales | 0 | 0 | |||||
Settlements | [5] | 0 | 0 | ||||
Transfers in and/or out of Level 3 (net) | [6] | (869) | 788 | ||||
Ending Balance | 0 | 861 | 0 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [2] | 0 | 0 | ||||
Other securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 8,723 | 6,317 | 5,800 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 1,146 | 1,290 | 1,767 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | (2,194) | 1,142 | 584 | |||
Gains or losses (realized/ unrealized), total | (1,048) | 2,432 | 2,351 | ||||
Purchases | 10,933 | [4] | 6,180 | [4] | 2,013 | ||
Sales | (857) | (4,870) | (3,824) | ||||
Settlements | [5] | 0 | (1,336) | (23) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | 0 | [6] | 0 | ||
Ending Balance | 17,751 | 8,723 | 6,317 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | 849 | [2] | 1,290 | [2] | 1,767 | [6] | |
Other securities | Investment funds | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 8,723 | 6,317 | 5,800 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 1,146 | 1,290 | 1,767 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | (2,194) | 1,142 | 584 | |||
Gains or losses (realized/ unrealized), total | (1,048) | 2,432 | 2,351 | ||||
Purchases | 10,933 | [4] | 6,180 | [4] | 2,013 | ||
Sales | (857) | (4,870) | (3,824) | ||||
Settlements | [5] | 0 | (1,336) | (23) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | 0 | [6] | 0 | ||
Ending Balance | 17,751 | 8,723 | 6,317 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | 849 | [2] | 1,290 | [2] | 1,767 | [6] | |
Derivative Financial Instruments, Assets and Liabilities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 11,870 | 2,486 | 2,099 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | (4,596) | (13,838) | 2,987 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | 0 | 0 | 0 | |||
Gains or losses (realized/ unrealized), total | (4,596) | (13,838) | 2,987 | ||||
Purchases | 5,857 | [4] | 28,536 | [4] | 0 | ||
Sales | 0 | 0 | 0 | ||||
Settlements | [5] | (4,923) | (5,314) | (2,600) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | 0 | [6] | 0 | ||
Ending Balance | 8,208 | 11,870 | 2,486 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | (4,596) | [2] | (13,838) | [2] | 2,987 | [6] | |
Derivative Financial Instruments, Assets and Liabilities | Options held/written and other | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 11,870 | 2,486 | 2,099 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | (4,596) | (13,838) | 2,987 | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | [3] | 0 | 0 | 0 | |||
Gains or losses (realized/ unrealized), total | (4,596) | (13,838) | 2,987 | ||||
Purchases | 5,857 | [4] | 28,536 | [4] | 0 | ||
Sales | 0 | 0 | 0 | ||||
Settlements | [5] | (4,923) | (5,314) | (2,600) | |||
Transfers in and/or out of Level 3 (net) | 0 | [6] | 0 | [6] | 0 | ||
Ending Balance | 8,208 | 11,870 | 2,486 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | (4,596) | [2] | (13,838) | [2] | 2,987 | [6] | |
Insurance Contract, Rights and Obligations | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 1,254,483 | 0 | |||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 40,751 | [3] | (100,702) | |||
Gains or losses (realized/ unrealized), included in other comprehensive income | 0 | 0 | [3] | ||||
Gains or losses (realized/ unrealized), total | 40,751 | [4] | (100,702) | ||||
Purchases | 0 | 1,765,444 | [4] | ||||
Sales | 0 | [5] | 0 | ||||
Settlements | (418,731) | [6] | (611,663) | [5] | |||
Transfers in and/or out of Level 3 (net) | [6] | 0 | 0 | ||||
Ending Balance | 795,001 | [5] | 1,254,483 | 0 | |||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [2] | 40,751 | (100,702) | ||||
Accounts Payable | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 5,533 | 2,833 | 0 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 3,059 | [3] | (12,203) | 2,343 | ||
Gains or losses (realized/ unrealized), included in other comprehensive income | 0 | 0 | [3] | 0 | [3] | ||
Gains or losses (realized/ unrealized), total | 3,059 | [4] | (12,203) | 2,343 | |||
Purchases | 0 | 0 | [4] | 5,176 | [4] | ||
Sales | 0 | [5] | 0 | 0 | |||
Settlements | (2,474) | [6] | (9,503) | [5] | 0 | [5] | |
Transfers in and/or out of Level 3 (net) | [6] | 0 | 0 | 0 | |||
Ending Balance | 0 | [5] | 5,533 | 2,833 | |||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | 0 | [2] | (12,203) | [2] | 2,343 | ||
Accounts Payable | Contingent consideration | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning Balance | 5,533 | 2,833 | 0 | ||||
Gains or losses (realized/ unrealized), included in earnings | [2] | 3,059 | [3] | (12,203) | 2,343 | ||
Gains or losses (realized/ unrealized), included in other comprehensive income | 0 | 0 | [3] | 0 | [3] | ||
Gains or losses (realized/ unrealized), total | 3,059 | [4] | (12,203) | 2,343 | |||
Purchases | 0 | 0 | [4] | 5,176 | [4] | ||
Sales | 0 | [5] | 0 | 0 | |||
Settlements | (2,474) | [6] | (9,503) | [5] | 0 | [5] | |
Transfers in and/or out of Level 3 (net) | [6] | 0 | 0 | 0 | |||
Ending Balance | 0 | [5] | 5,533 | 2,833 | |||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | ¥ 0 | [2] | ¥ (12,203) | [2] | ¥ 2,343 | ||
[1] | "Included in earnings" in the above table is recorded in "Life insurance costs" and includes changes in the fair value of policy liabilities and policy account balances resulting from gains or losses on the underlying investment assets managed on behalf of variable annuity and variable life policyholders, and the changes in the minimum guarantee risks relating to variable annuity and variable life insurance contracts as well as insurance costs recognized for insurance and annuity payouts as a result of insured events. | ||||||
[2] | Principally, gains and losses from available-for-sale securities are included in "Gains on investment securities and dividends", "Write-downs of securities" or "Life insurance premiums and related investment income"; other securities are included in "Gains on investment securities and dividends" and derivative assets and liabilities (net) are included in "Other (income) and expense, net" and gains and losses from accounts payable are included in "Other (income) and expense, net" respectively. Also, for available-for-sale securities, amortization of interest recognized in finance revenues is included in these columns. | ||||||
[3] | Unrealized gains and losses from available-for-sale securities are included in "Net change of unrealized gains (losses) on investment in securities." | ||||||
[4] | Increases resulting from an acquisition of a subsidiary and insurance contracts ceded to reinsurance companies are included. | ||||||
[5] | Decreases resulting from the receipts of reimbursements for benefits, and decreases resulting from insurance payouts to variable annuity and variable life policyholders due to death, surrender and maturity of the investment period are included. Due to the elapse of the computation period of the contingent consideration during fiscal 2016, the unsettled payment is included in a decrease of Accounts payable. | ||||||
[6] | The amount reported in "Transfers in and/or out of Level 3 (net)" is the fair value at the beginning of quarter during which the transfers occur. | ||||||
[7] | "Included in earnings" in the above table includes changes in the fair value of reinsurance contracts recorded in "Life insurance costs" and reinsurance premiums, net of reinsurance benefits received, recorded in "Life insurance premiums and related investment income." |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2016USD ($) | Mar. 31, 2015JPY (¥) | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | |
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items] | ||||
Assets transferred into Level 3 | $ | $ 0 | $ 0 | ||
Assets transferred out of Level 3 to Level 2 | ¥ | ¥ 20,438 | |||
Available-for-sale securities | Equity securities | ||||
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items] | ||||
Assets transferred out of Level 3 to Level 2 | $ 869 | ¥ 788 |
Fair Value Measurements (Reco83
Fair Value Measurements (Recorded Amounts of Major Assets Measured at Fair Value on Nonrecurring Basis) (Detail) - Fair Value, Measurements, Nonrecurring - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ¥ 43,192 | ¥ 100,776 |
Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 17,511 | 21,537 |
Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 25,681 | 67,500 |
Land And Buildings Undeveloped Or Under Construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 8,084 | |
Certain investment in affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 1,220 | |
Goodwill | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 2,435 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 1 | Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 1 | Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 1 | Land And Buildings Undeveloped Or Under Construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 1 | Certain investment in affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 1 | Goodwill | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 2 | Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 2 | Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 2 | Land And Buildings Undeveloped Or Under Construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 2 | Certain investment in affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 2 | Goodwill | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 43,192 | 100,776 |
Level 3 | Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 17,511 | 21,537 |
Level 3 | Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ¥ 25,681 | 67,500 |
Level 3 | Land And Buildings Undeveloped Or Under Construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 8,084 | |
Level 3 | Certain investment in affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 1,220 | |
Level 3 | Goodwill | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ¥ 2,435 |
Fair Value Measurements (Inform
Fair Value Measurements (Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 163,336 | ¥ 153,682 | ||||
Fair Value | ¥ 795,001 | 1,254,483 | ||||
Contingent consideration | Monte Carlo Simulation Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 5,533 | |||||
Valuation Technique(s) | Monte Carlo simulation | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 13.90% | |||||
Variable Annuity and Variable Life Insurance Contracts | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 795,001 | [1],[2] | ¥ 1,254,483 | [1] | ¥ 0 | |
Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Mortality rate | |||||
Weighted Average Discount Rate | 1.00% | 1.30% | ||||
Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Lapse rate | |||||
Weighted Average Discount Rate | 14.50% | 20.80% | ||||
Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Annuitization rate (guaranteed minimum annuity benefit) | |||||
Weighted Average Discount Rate | 85.20% | 100.00% | ||||
Variable Annuity and Variable Life Insurance Contracts | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 795,001 | ¥ 1,254,483 | ||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 0.10% | 0.20% | ||||
Reinsurance Recoverable | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 37,855 | |||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 0.10% | |||||
Reinsurance Recoverable | Mortality Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Mortality rate | |||||
Weighted Average Discount Rate | 0.90% | 1.30% | ||||
Reinsurance Recoverable | Lapse Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Lapse rate | |||||
Weighted Average Discount Rate | 15.00% | 20.80% | ||||
Reinsurance Recoverable | Annuitization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Annuitization rate (guaranteed minimum annuity benefit) | |||||
Weighted Average Discount Rate | 99.40% | 100.00% | ||||
Reinsurance Recoverable | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 36,038 | |||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 0.20% | |||||
Available-for-sale securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 99,522 | ¥ 97,051 | 84,001 | ¥ 136,978 | ||
Available-for-sale securities | Corporate debt securities | Appraisals/Broker Quotes Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 5 | |||||
Valuation Technique(s) | Appraisals/Broker quotes | |||||
Significant Unobservable Inputs | - | |||||
Available-for-sale securities | Specified bonds issued by SPEs in Japan | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 806 | ¥ 2,543 | ||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 0.90% | 2.20% | ||||
Available-for-sale securities | Specified bonds issued by SPEs in Japan | Appraisals/Broker Quotes Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 2,655 | ¥ 4,737 | ||||
Valuation Technique(s) | Appraisals/Broker quotes | |||||
Significant Unobservable Inputs | - | |||||
Weighted Average Discount Rate | 18.50% | |||||
Available-for-sale securities | CMBS and RMBS in the Americas | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Probability of default | |||||
Weighted Average Probability of default | 8.20% | 7.20% | ||||
Available-for-sale securities | CMBS and RMBS in the Americas | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 38,493 | ¥ 22,658 | ||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 18.20% | |||||
Available-for-sale securities | Other asset-backed securities and debt securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Significant Unobservable Inputs | Probability of default | |||||
Weighted Average Probability of default | 0.90% | 1.00% | ||||
Available-for-sale securities | Other asset-backed securities and debt securities | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 7,432 | ¥ 7,583 | ||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 12.70% | 13.20% | ||||
Available-for-sale securities | Other asset-backed securities and debt securities | Appraisals/Broker Quotes Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 50,131 | ¥ 58,669 | ||||
Valuation Technique(s) | Appraisals/Broker quotes | |||||
Significant Unobservable Inputs | - | |||||
Available-for-sale securities | Equity securities | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 861 | |||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 6.20% | |||||
Other securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 17,751 | ¥ 8,723 | ¥ 6,317 | ¥ 5,800 | ||
Other securities | Investment funds | Appraisals/Broker Quotes Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 7,598 | |||||
Valuation Technique(s) | Appraisals/Broker quotes | |||||
Significant Unobservable Inputs | - | |||||
Other securities | Investment funds | Internal Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 10,153 | ¥ 8,723 | ||||
Valuation Technique(s) | Internal cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 13.60% | 15.80% | ||||
Derivative assets | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 4,876 | ¥ 7,982 | ||||
Valuation Technique(s) | Discounted cash flows | |||||
Significant Unobservable Inputs | Discount rate | |||||
Weighted Average Discount Rate | 11.70% | 11.80% | ||||
Derivative assets | Appraisals/Broker Quotes Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value | ¥ 3,332 | ¥ 3,888 | ||||
Valuation Technique(s) | Appraisals/Broker quotes | |||||
Significant Unobservable Inputs | - | |||||
Minimum | Contingent consideration | Monte Carlo Simulation Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 13.90% | |||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.00% | 0.00% | ||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 1.50% | 1.50% | ||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.00% | 0.00% | ||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.20% | 0.10% | ||||
Minimum | Reinsurance Recoverable | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.20% | |||||
Minimum | Reinsurance Recoverable | Mortality Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.00% | 0.00% | ||||
Minimum | Reinsurance Recoverable | Lapse Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 1.50% | 1.50% | ||||
Minimum | Reinsurance Recoverable | Annuitization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.00% | 0.00% | ||||
Minimum | Reinsurance Recoverable | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.10% | |||||
Minimum | Available-for-sale securities | Specified bonds issued by SPEs in Japan | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.90% | 0.90% | ||||
Minimum | Available-for-sale securities | Specified bonds issued by SPEs in Japan | Appraisals/Broker Quotes Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 6.40% | |||||
Minimum | Available-for-sale securities | CMBS and RMBS in the Americas | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Probability of default | 0.00% | 0.00% | ||||
Minimum | Available-for-sale securities | CMBS and RMBS in the Americas | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 13.60% | |||||
Minimum | Available-for-sale securities | Other asset-backed securities and debt securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Probability of default | 0.70% | 0.80% | ||||
Minimum | Available-for-sale securities | Other asset-backed securities and debt securities | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 1.00% | 1.20% | ||||
Minimum | Available-for-sale securities | Equity securities | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 6.20% | |||||
Minimum | Other securities | Investment funds | Internal Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 10.00% | 12.00% | ||||
Minimum | Derivative assets | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 10.00% | 10.00% | ||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 100.00% | 100.00% | ||||
Weighted Average Probability of default | 100.00% | |||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 54.00% | 54.00% | ||||
Weighted Average Probability of default | 54.00% | |||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 100.00% | 100.00% | ||||
Weighted Average Probability of default | 100.00% | |||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.50% | 0.80% | ||||
Weighted Average Probability of default | 0.50% | |||||
Maximum | Reinsurance Recoverable | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.50% | |||||
Maximum | Reinsurance Recoverable | Mortality Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 100.00% | 100.00% | ||||
Maximum | Reinsurance Recoverable | Lapse Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 54.00% | 54.00% | ||||
Maximum | Reinsurance Recoverable | Annuitization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 100.00% | 100.00% | ||||
Maximum | Reinsurance Recoverable | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 0.80% | |||||
Maximum | Available-for-sale securities | Specified bonds issued by SPEs in Japan | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 3.60% | |||||
Maximum | Available-for-sale securities | Specified bonds issued by SPEs in Japan | Appraisals/Broker Quotes Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 32.40% | |||||
Maximum | Available-for-sale securities | CMBS and RMBS in the Americas | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Probability of default | 34.00% | 22.20% | ||||
Maximum | Available-for-sale securities | CMBS and RMBS in the Americas | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 32.40% | |||||
Maximum | Available-for-sale securities | Other asset-backed securities and debt securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Probability of default | 1.10% | 1.30% | ||||
Maximum | Available-for-sale securities | Other asset-backed securities and debt securities | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 32.40% | 32.40% | ||||
Maximum | Other securities | Investment funds | Internal Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 40.00% | 28.00% | ||||
Maximum | Derivative assets | Discounted Cash Flows Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted Average Discount Rate | 15.00% | 15.00% | ||||
[1] | "Included in earnings" in the above table is recorded in "Life insurance costs" and includes changes in the fair value of policy liabilities and policy account balances resulting from gains or losses on the underlying investment assets managed on behalf of variable annuity and variable life policyholders, and the changes in the minimum guarantee risks relating to variable annuity and variable life insurance contracts as well as insurance costs recognized for insurance and annuity payouts as a result of insured events. | |||||
[2] | Decreases resulting from the receipts of reimbursements for benefits, and decreases resulting from insurance payouts to variable annuity and variable life policyholders due to death, surrender and maturity of the investment period are included. Due to the elapse of the computation period of the contingent consideration during fiscal 2016, the unsettled payment is included in a decrease of Accounts payable. |
Fair Value Measurements (Info85
Fair Value Measurements (Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets Measured at Fair Value on Nonrecurring Basis) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 43,192 | ¥ 100,776 |
Real Estate Collateral Dependent Loans | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 17,511 | ¥ 21,537 |
Valuation Technique(s) | Discounted cash flows | |
Significant Unobservable Inputs | Discount rate | |
Weighted Average Discount Rate | 9.30% | 9.50% |
Real Estate Collateral Dependent Loans | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Valuation Technique(s) | Direct capitalization | |
Significant Unobservable Inputs | Capitalization rate | |
Weighted Average Discount Rate | 9.90% | 10.40% |
Investment in operating leases and property under facility operations | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 5,679 | ¥ 25,732 |
Valuation Technique(s) | Discounted cash flows | |
Significant Unobservable Inputs | Discount rate | |
Weighted Average Discount Rate | 5.50% | 5.10% |
Investment in operating leases and property under facility operations | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 20,002 | ¥ 41,768 |
Valuation Technique(s) | Appraisals | |
Significant Unobservable Inputs | - | |
Land And Buildings Undeveloped Or Under Construction | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 8,084 | |
Valuation Technique(s) | Discounted cash flows | |
Significant Unobservable Inputs | Discount rate | |
Weighted Average Discount Rate | 9.20% | |
Certain investment in affiliates | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 1,220 | |
Valuation Technique(s) | Discounted cash flows | |
Significant Unobservable Inputs | Discount rate | |
Weighted Average Discount Rate | 9.80% | |
Goodwill | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 2,435 | |
Valuation Technique(s) | Discounted cash flows | |
Significant Unobservable Inputs | - | |
Minimum | Real Estate Collateral Dependent Loans | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 5.30% | 5.80% |
Minimum | Real Estate Collateral Dependent Loans | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 5.90% | 5.50% |
Minimum | Investment in operating leases and property under facility operations | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 5.30% | 4.10% |
Minimum | Land And Buildings Undeveloped Or Under Construction | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 5.30% | |
Minimum | Certain investment in affiliates | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 9.80% | |
Maximum | Real Estate Collateral Dependent Loans | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.90% | 12.00% |
Maximum | Real Estate Collateral Dependent Loans | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 17.00% | 16.50% |
Maximum | Investment in operating leases and property under facility operations | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.00% | 15.00% |
Maximum | Land And Buildings Undeveloped Or Under Construction | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.10% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | Dec. 03, 2014 | Jul. 01, 2014 | Jul. 01, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 27, 2014 | Mar. 31, 2013 | Mar. 31, 2009 | Mar. 31, 2005 |
Business Acquisition [Line Items] | ||||||||||
Revenues | ¥ 2,369,202 | ¥ 2,174,283 | ¥ 1,375,292 | |||||||
Income from continuing operations | 270,990 | 254,960 | 187,786 | |||||||
Income from Continuing Operations | 260,169 | 234,651 | 180,069 | |||||||
Bargain purchase gain | 0 | 36,082 | 0 | |||||||
Goodwill acquired | 332,153 | 372,615 | 335,907 | ¥ 126,329 | ||||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 57,867 | 20,575 | 64,923 | |||||||
Robeco Groep N.V. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of voting interests acquired | 90.01% | |||||||||
Total acquisition consideration | ¥ 255,163 | |||||||||
Consideration transferred for acquired interest | 249,987 | |||||||||
Acquisitions consideration, cost of acquired entity paid in cash | 230,579 | |||||||||
Other transfer to acquire interest | ¥ 19,408 | |||||||||
Shares issued for acquired interest | 13,902,900 | |||||||||
Shares price for acquired interest | ¥ 1,396 | |||||||||
Contingent consideration | ¥ 5,176 | |||||||||
Transaction costs | ¥ 2,039 | |||||||||
Revenues | 111,166 | |||||||||
Income from continuing operations | 17,251 | |||||||||
Robeco Groep N.V. | Other (income) and expense, net | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase (Decrease) in fair value of Contingent consideration on remeasurement | (3,059) | 12,203 | ||||||||
DAIKYO | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Transaction costs | ¥ 23 | |||||||||
Revenues | 56,803 | |||||||||
Number of common stock shares acquired in business acquisition | 398,204,999 | 133,720,000 | ||||||||
Percentage of ownership interest before the acquisition | 31.70% | |||||||||
Percentage of ownership interest after the acquisition | 64.10% | |||||||||
Business combination, step acquisition, equity interest in acquiree, fair value | 124,606 | |||||||||
Business combination, step acquisition, equity interest in acquiree, remeasurement gain | 58,435 | |||||||||
Income from Continuing Operations | 1,296 | |||||||||
DAIKYO | Type-1 preferred stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of preferred stock shares acquired in business acquisition | 10,000,000 | |||||||||
DAIKYO | Type-2 preferred stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of preferred stock shares acquired in business acquisition | 15,000,000 | |||||||||
DAIKYO | Type-4 preferred stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of preferred stock shares acquired in business acquisition | 25,000,000 | |||||||||
DAIKYO | Type-7 preferred stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of preferred stock shares acquired in business acquisition | 25,000,000 | |||||||||
DAIKYO | Type-8 preferred stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of preferred stock shares acquired in business acquisition | 23,598,144 | |||||||||
HLIKK | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total acquisition consideration | ¥ 134,437 | |||||||||
Consideration transferred for acquired interest | 98,355 | |||||||||
Acquisitions consideration, cost of acquired entity paid in cash | ¥ 679 | 97,676 | ||||||||
Transaction costs | 1,217 | 224 | ||||||||
Revenues | 196,883 | |||||||||
Income from continuing operations | 4,597 | |||||||||
Bargain purchase gain | ¥ 36,082 | 36,082 | ||||||||
Series of Individually Immaterial Business Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total acquisition consideration | 102,621 | |||||||||
Acquisitions consideration, cost of acquired entity paid in cash | 51,786 | 102,621 | 62,565 | |||||||
Revenues | 234,030 | |||||||||
Income from continuing operations | 5,033 | |||||||||
Goodwill acquired | 34,319 | 79,872 | 39,507 | |||||||
Goodwill Available For Tax Deductions | 1,184 | |||||||||
Acquired intangible assets other than goodwill | 11,238 | 60,839 | 1,343 | |||||||
Settlement | Robeco Groep N.V. | Other (income) and expense, net | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Decrease in fair value of Contingent consideration due to settlements | (47) | |||||||||
Annual Payment | Robeco Groep N.V. | Other (income) and expense, net | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Decrease in fair value of Contingent consideration due to settlements | (9,456) | |||||||||
Divestiture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 57,867 | ¥ 20,575 | 64,923 | |||||||
Foreign currency translation adjustments | Divestiture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | ¥ 8,739 | |||||||||
STX Energy | Divestiture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest sold | 71.90% | |||||||||
Gain (loss) on sales of interest in subsidiary | ¥ 14,883 | |||||||||
Gain (loss) from remeasurement to fair value of retained interest | ¥ 1,329 | |||||||||
Investment in affiliates, percentage of ownership, equity-method | 25.00% | |||||||||
Houlihan Lokey Inc | Divestiture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest sold | 14.70% | |||||||||
Gain (loss) on sales of interest in subsidiary | ¥ 10,498 | |||||||||
Gain (loss) from remeasurement to fair value of retained interest | ¥ 29,087 | |||||||||
Investment in affiliates, percentage of ownership, equity-method | 33.00% | |||||||||
Investment and Operation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill acquired | ¥ 66,907 | ¥ 43,802 | 26,211 | 11,712 | ||||||
Investment and Operation | Divestiture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 9,145 | 58,738 | ||||||||
Overseas Business | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill acquired | 183,679 | 248,374 | ¥ 273,643 | ¥ 79,085 | ||||||
Overseas Business | Divestiture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 47,994 | ¥ 18,510 | ||||||||
Trade Notes, Accounts and Other Payable | Robeco Groep N.V. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration | ¥ 2,398 |
Acquisitions and Divestitures87
Acquisitions and Divestitures (Combined Results of Operations of Company and its Subsidiaries) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Robeco Groep N.V. | ||
Business Acquisition [Line Items] | ||
Total revenues | ¥ 1,405,276 | |
Income from Continuing Operations | 189,061 | |
DAIKYO | ||
Business Acquisition [Line Items] | ||
Total revenues | 1,594,033 | |
Income from Continuing Operations | 203,243 | |
HLIKK | ||
Business Acquisition [Line Items] | ||
Total revenues | ¥ 2,220,805 | 1,819,007 |
Income from Continuing Operations | 259,239 | 215,158 |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Total revenues | 2,345,327 | 1,756,437 |
Income from Continuing Operations | ¥ 255,219 | ¥ 197,772 |
Acquisitions and Divestitures88
Acquisitions and Divestitures (Fair Value Amounts Allocated to Assets Acquired and Liabilities Assumed) (Detail) - JPY (¥) ¥ in Millions | Jul. 01, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Business Acquisition [Line Items] | ||||
Bargain purchase gain | ¥ 0 | ¥ 36,082 | ¥ 0 | |
HLIKK | ||||
Business Acquisition [Line Items] | ||||
Cash and Cash Equivalents | ¥ 69,244 | |||
Installment Loans | 282 | |||
Investment in Securities | 1,847,536 | |||
Trade Notes, Accounts and Other Receivable | 66,340 | |||
Office Facilities | 351 | |||
Other Assets | 319,244 | |||
Total Assets | 2,302,997 | |||
Short-Term Debt | 25,000 | |||
Trade Notes, Accounts and Other Payable | 3,979 | |||
Policy Liabilities and Policy Account Balances | 2,125,257 | |||
Current and Deferred Income Taxes | 8,413 | |||
Other Liabilities | 5,911 | |||
Total Liabilities | 2,168,560 | |||
Aggregate fair value of considerations transferred | 134,437 | |||
Fair value of Consideration transferred | 98,355 | |||
Bargain purchase gain | ¥ 36,082 | ¥ 36,082 | ||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Cash and Cash Equivalents | 32,234 | |||
Property under Facility Operations | 9,289 | |||
Trade Notes, Accounts and Other Receivable | 37,359 | |||
Inventories | 21,249 | |||
Office Facilities | 3,250 | |||
Other Assets | 158,370 | |||
Other | 1,359 | |||
Total Assets | 263,110 | |||
Short-Term Debt | 4,140 | |||
Trade Notes, Accounts and Other Payable | 33,963 | |||
Current and Deferred Income Taxes | 24,457 | |||
Long-Term Debt | 45,739 | |||
Other Liabilities | 26,165 | |||
Total Liabilities | 134,464 | |||
Noncontrolling interests | 26,025 | |||
Aggregate fair value of considerations transferred | ¥ 102,621 |
Cash Flow Information (Cash Pay
Cash Flow Information (Cash Payments) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Cash payments: | |||
Interest | ¥ 77,321 | ¥ 76,755 | ¥ 88,385 |
Income taxes,net | ¥ 31,046 | ¥ 83,462 | ¥ 32,831 |
Cash Flow Information - Additio
Cash Flow Information - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Cash Flow, Supplemental [Line Items] | |||
Real estate under operating leases transferred from installment loans and investment in securities as a result of real estate collateral acquired from non-recourse loans | ¥ 15,963 | ¥ 4,042 | ¥ 50,820 |
Real estate under other assets transferred from installment loans and investment in securities as a result of real estate collateral acquired from non-recourse loans | 8,741 | ||
Assets decreased due to deconsolidation of VIEs | 7,234 | 7,450 | 155,918 |
Liabilities decreased due to deconsolidation of VIEs | ¥ 12,181 | ¥ 9,279 | 170,869 |
Conversion of convertible bond | ¥ 49,944 |
Investment in Direct Financin91
Investment in Direct Financing Leases (Investment in Direct Financing Leases) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Leases Disclosure [Line Items] | ||
Total Minimum lease payments to be received | ¥ 1,366,454 | ¥ 1,410,512 |
Less: Estimated executory costs | (57,600) | (63,456) |
Minimum lease payments receivable | 1,308,854 | 1,347,056 |
Estimated residual value | 31,338 | 30,620 |
Initial direct costs | 5,557 | 5,866 |
Unearned lease income | (155,613) | (167,088) |
Investment in Direct Financing Leases | ¥ 1,190,136 | ¥ 1,216,454 |
Investment in Direct Financin92
Investment in Direct Financing Leases (Minimum Lease Payments Receivable Due in Each of Next Five Years and Thereafter) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Leases Disclosure [Line Items] | |
2,017 | ¥ 441,910 |
2,018 | 313,483 |
2,019 | 217,794 |
2,020 | 142,674 |
2,021 | 76,900 |
Thereafter | 116,093 |
Total | ¥ 1,308,854 |
Investment in Direct Financin93
Investment in Direct Financing Leases - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Finance Revenues | |||
Lease Disclosure [Line Items] | |||
Direct financing leases revenues | ¥ 65,365 | ¥ 61,116 | ¥ 57,483 |
Investment in Operating Lease94
Investment in Operating Leases (Investment in Operating Leases) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Subject to or Available for Operating Lease, Gross | ¥ 1,868,457 | ¥ 1,781,507 |
Accumulated depreciation | (542,868) | (506,801) |
Net | 1,325,589 | 1,274,706 |
Accrued rental receivables | 23,610 | 21,514 |
Investment in Operating Leases | 1,349,199 | 1,296,220 |
Transportation equipment | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Subject to or Available for Operating Lease, Gross | 1,076,697 | 934,430 |
Measuring and information-related equipment | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Subject to or Available for Operating Lease, Gross | 239,262 | 236,922 |
Real Estate Asset | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Subject to or Available for Operating Lease, Gross | 531,155 | 590,388 |
Other | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Subject to or Available for Operating Lease, Gross | ¥ 21,343 | ¥ 19,767 |
Investment in Operating Lease95
Investment in Operating Leases - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Operating Leases [Line Items] | |||
Gains on sales of operating lease assets | ¥ 38,340 | ¥ 34,425 | ¥ 23,692 |
Operating lease contracts, non- cancelable lease terms | 21 years | ||
Operating Lease Assets Other than Real Estate | |||
Schedule of Operating Leases [Line Items] | |||
Gains on sales of operating lease assets | ¥ 19,572 | 18,087 | 17,820 |
Real Estate Asset | |||
Schedule of Operating Leases [Line Items] | |||
Gains on sales of operating lease assets | ¥ 18,768 | ¥ 16,338 | ¥ 5,872 |
Investment in Operating Lease96
Investment in Operating Leases (Depreciation and Various Expenses (Insurance, Property Tax and Other) of Operating Leases) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Operating Leases [Line Items] | |||
Depreciation expenses | ¥ 184,768 | ¥ 177,038 | ¥ 166,234 |
Various expenses | 60,301 | 61,119 | 50,334 |
Costs of operating leases | ¥ 245,069 | ¥ 238,157 | ¥ 216,568 |
Investment in Operating Lease97
Investment in Operating Leases (Minimum Future Rentals Receivable on Non-Cancelable Operating Leases) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Schedule of Operating Leases [Line Items] | |
2,017 | ¥ 196,417 |
2,018 | 138,642 |
2,019 | 94,783 |
2,020 | 59,821 |
2,021 | 34,586 |
Thereafter | 62,532 |
Total | ¥ 586,781 |
Installment Loans (Composition
Installment Loans (Composition of Installment Loans By Domicile and Type of Borrower) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | ¥ 2,592,233 | ¥ 2,478,054 | |
Purchased loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | [1] | 30,524 | 42,292 |
Japan | Consumer borrowers | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 1,406,087 | 1,314,307 | |
Japan | Consumer borrowers | Consumer - Housing loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 1,122,088 | 1,048,216 | |
Japan | Consumer borrowers | Card loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 260,533 | 243,225 | |
Japan | Consumer borrowers | Consumer - Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 23,466 | 22,866 | |
Japan | Corporate borrowers | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 615,323 | 670,821 | |
Japan | Corporate borrowers | Corporate Real Estate Companies Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 230,001 | 227,568 | |
Japan | Corporate borrowers | Non-recourse Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 19,951 | 41,535 | |
Japan | Corporate borrowers | Corporate Commercial, industrial and other companies | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 365,371 | 401,718 | |
Overseas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 540,299 | 450,634 | |
Overseas | Non-recourse Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 61,260 | 83,233 | |
Overseas | Corporate Commercial, industrial and other companies | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | ¥ 479,039 | ¥ 367,401 | |
[1] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 ("Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality"). |
Installment Loans (Contractual
Installment Loans (Contractual Maturities of Installment Loans Except Purchased Loans) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,017 | ¥ 408,746 |
2,018 | 287,360 |
2,019 | 267,473 |
2,020 | 200,873 |
2,021 | 219,901 |
Thereafter | 1,177,356 |
Total | ¥ 2,561,709 |
Installment Loans - Additional
Installment Loans - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income on loans | ¥ 118,982 | ¥ 110,390 | ¥ 118,287 |
Loans held for sale in installment loans | 21,867 | 15,613 | |
Loans held for sale measured at fair value | 20,673 | 15,361 | |
Installment loans | 2,592,233 | 2,478,054 | |
Purchased loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans | 30,524 | 42,292 | |
Fair value at the acquisition date of purchased loans acquired during the period | 7,799 | 10,131 | |
Purchased loans | Class Of Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchased loans for which valuation allowances were provided | ¥ 11,013 | ¥ 15,216 |
Installment Loans (Changes in A
Installment Loans (Changes in Allowance for Uncollectible Accounts Relating to Purchased Loans) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | ¥ 72,326 | ¥ 84,796 | ¥ 104,264 | ||||
Provision (Reversal) | 11,717 | 11,631 | 13,838 | ||||
Charge-offs | (18,685) | (27,711) | (29,525) | ||||
Recoveries | 1,181 | 1,918 | 1,409 | ||||
Other | (6,468) | [1] | 1,692 | [2] | (5,190) | [3] | |
Ending balance | 60,071 | 72,326 | 84,796 | ||||
Purchased loans | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | [4] | 10,717 | 14,148 | 15,316 | |||
Provision (Reversal) | [4] | (1,308) | (690) | 2,532 | |||
Charge-offs | [4] | (1,236) | (3,390) | (3,921) | |||
Recoveries | [4] | 232 | 432 | 111 | |||
Other | [4],[5] | (172) | [1] | 217 | [2] | 110 | [3] |
Ending balance | [4] | ¥ 8,233 | ¥ 10,717 | ¥ 14,148 | |||
[1] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥5,265 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. | ||||||
[2] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. | ||||||
[3] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥6,562 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. | ||||||
[4] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 ("Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality"). | ||||||
[5] | Other includes foreign currency translation adjustments. |
Credit Quality of Financing 102
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Allowance for Credit Losses) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | ¥ 72,326 | ¥ 84,796 | ¥ 104,264 | ||||
Provision (Reversal) | 11,717 | 11,631 | 13,838 | ||||
Charge-offs | (18,685) | (27,711) | (29,525) | ||||
Recoveries | 1,181 | 1,918 | 1,409 | ||||
Other | (6,468) | [1] | 1,692 | [2] | (5,190) | [3] | |
Ending balance | 60,071 | 72,326 | 84,796 | ||||
Allowance for Credit Losses, Individually Evaluated for Impairment | 22,533 | 34,379 | 49,155 | ||||
Allowance for Credit Losses, Not Individually Evaluated for Impairment | 37,538 | 37,947 | 35,641 | ||||
Financing receivables, Ending Balance | 3,760,502 | 3,678,895 | 3,395,361 | ||||
Financing receivables, Individually Evaluated for Impairment | 73,593 | 101,034 | 135,824 | ||||
Financing receivables, Not Individually Evaluated for Impairment | 3,686,909 | 3,577,861 | 3,259,537 | ||||
Consumer borrowers | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | 12,585 | 13,473 | 14,526 | ||||
Provision (Reversal) | 7,367 | 5,456 | 4,437 | ||||
Charge-offs | (7,572) | (7,189) | (5,786) | ||||
Recoveries | 543 | 835 | 290 | ||||
Other | 344 | [1] | 10 | [2] | 6 | [3] | |
Ending balance | 13,267 | 12,585 | 13,473 | ||||
Allowance for Credit Losses, Individually Evaluated for Impairment | 2,770 | 2,606 | 3,279 | ||||
Allowance for Credit Losses, Not Individually Evaluated for Impairment | 10,497 | 9,979 | 10,194 | ||||
Financing receivables, Ending Balance | 1,461,982 | 1,330,353 | 1,236,414 | ||||
Financing receivables, Individually Evaluated for Impairment | 14,101 | 11,993 | 11,796 | ||||
Financing receivables, Not Individually Evaluated for Impairment | 1,447,881 | 1,318,360 | 1,224,618 | ||||
Corporate borrowers | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for Credit Losses, Individually Evaluated for Impairment | 13,875 | 23,292 | |||||
Financing receivables, Ending Balance | 1,077,860 | 1,089,796 | |||||
Financing receivables, Individually Evaluated for Impairment | 48,479 | 73,825 | |||||
Purchased loans | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | [4] | 10,717 | 14,148 | 15,316 | |||
Provision (Reversal) | [4] | (1,308) | (690) | 2,532 | |||
Charge-offs | [4] | (1,236) | (3,390) | (3,921) | |||
Recoveries | [4] | 232 | 432 | 111 | |||
Other | [4],[5] | (172) | [1] | 217 | [2] | 110 | [3] |
Ending balance | [4] | 8,233 | 10,717 | 14,148 | |||
Allowance for Credit Losses, Individually Evaluated for Impairment | [4] | 5,888 | 8,481 | 12,288 | |||
Allowance for Credit Losses, Not Individually Evaluated for Impairment | [4] | 2,345 | 2,236 | 1,860 | |||
Financing receivables, Ending Balance | [4] | 30,524 | 42,292 | 53,341 | |||
Financing receivables, Individually Evaluated for Impairment | [4] | 11,013 | 15,216 | 23,075 | |||
Financing receivables, Not Individually Evaluated for Impairment | [4] | 19,511 | 27,076 | 30,266 | |||
Non-recourse Loans | Corporate borrowers | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | 8,148 | 9,047 | 16,717 | ||||
Provision (Reversal) | (491) | (1,080) | 2,381 | ||||
Charge-offs | (504) | (53) | (3,590) | ||||
Recoveries | 0 | 0 | 140 | ||||
Other | (5,353) | [1] | 234 | [2] | (6,601) | [3] | |
Ending balance | 1,800 | 8,148 | 9,047 | ||||
Allowance for Credit Losses, Individually Evaluated for Impairment | 1,323 | 7,751 | 8,534 | ||||
Allowance for Credit Losses, Not Individually Evaluated for Impairment | 477 | 397 | 513 | ||||
Financing receivables, Ending Balance | 81,211 | 124,768 | 174,204 | ||||
Financing receivables, Individually Evaluated for Impairment | 11,057 | 22,032 | 24,902 | ||||
Financing receivables, Not Individually Evaluated for Impairment | 70,154 | 102,736 | 149,302 | ||||
Other loans | Corporate borrowers | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | 25,672 | 32,744 | 41,875 | ||||
Provision (Reversal) | 3,362 | 4,800 | 837 | ||||
Charge-offs | (5,298) | (13,247) | (11,807) | ||||
Recoveries | 393 | 593 | 798 | ||||
Other | (738) | [1] | 782 | [2] | 1,041 | [3] | |
Ending balance | 23,391 | 25,672 | 32,744 | ||||
Allowance for Credit Losses, Individually Evaluated for Impairment | 12,552 | 15,541 | 25,054 | ||||
Allowance for Credit Losses, Not Individually Evaluated for Impairment | 10,839 | 10,131 | 7,690 | ||||
Financing receivables, Ending Balance | 996,649 | 965,028 | 837,329 | ||||
Financing receivables, Individually Evaluated for Impairment | 37,422 | 51,793 | 76,051 | ||||
Financing receivables, Not Individually Evaluated for Impairment | 959,227 | 913,235 | 761,278 | ||||
Direct Financing Leases | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Beginning balance | 15,204 | 15,384 | 15,830 | ||||
Provision (Reversal) | 2,787 | 3,145 | 3,651 | ||||
Charge-offs | (4,075) | (3,832) | (4,421) | ||||
Recoveries | 13 | 58 | 70 | ||||
Other | (549) | [1] | 449 | [2] | 254 | [3] | |
Ending balance | 13,380 | 15,204 | 15,384 | ||||
Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||||
Allowance for Credit Losses, Not Individually Evaluated for Impairment | 13,380 | 15,204 | 15,384 | ||||
Financing receivables, Ending Balance | 1,190,136 | 1,216,454 | 1,094,073 | ||||
Financing receivables, Individually Evaluated for Impairment | 0 | 0 | 0 | ||||
Financing receivables, Not Individually Evaluated for Impairment | ¥ 1,190,136 | ¥ 1,216,454 | ¥ 1,094,073 | ||||
[1] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥5,265 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. | ||||||
[2] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. | ||||||
[3] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥6,562 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. | ||||||
[4] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 ("Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality"). | ||||||
[5] | Other includes foreign currency translation adjustments. |
Credit Quality of Financing 103
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Allowance for Credit Losses) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||||
Mar. 31, 2016 | Mar. 31, 2015 | [2] | Mar. 31, 2014 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Other | ¥ (6,468) | [1] | ¥ 1,692 | ¥ (5,190) | [3] | |
Non-recourse Loans | Deconsolidation of Variable Interest Entity | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Other | ¥ 5,265 | ¥ (6,562) | ||||
[1] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥5,265 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. | |||||
[2] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. | |||||
[3] | Other mainly includes foreign currency translation adjustments and decrease in allowance related to newly consolidated subsidiaries. Additionally, other in non-recourse loans includes a decrease of ¥6,562 million due to the sale of controlling class interests of a certain VIE, which was formerly consolidated, to a third party and resulting in deconsolidation of that VIE. |
Credit Quality of Financing 104
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Impaired Loans) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | ¥ 73,593 | ¥ 101,034 | ¥ 135,824 | |
Unpaid Principal Balance | 72,256 | 97,777 | ||
Related Allowance | 22,533 | 34,379 | 49,155 | |
Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 14,101 | 11,993 | 11,796 | |
Unpaid Principal Balance | 13,480 | 10,144 | ||
Related Allowance | 2,770 | 2,606 | 3,279 | |
Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 48,479 | 73,825 | ||
Unpaid Principal Balance | 47,763 | 72,417 | ||
Related Allowance | 13,875 | 23,292 | ||
Purchased loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | [1] | 11,013 | 15,216 | 23,075 |
Unpaid Principal Balance | 11,013 | 15,216 | ||
Related Allowance | [1] | 5,888 | 8,481 | 12,288 |
Consumer - Housing loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 4,511 | 5,357 | ||
Unpaid Principal Balance | 3,910 | 3,525 | ||
Related Allowance | 1,401 | 1,689 | ||
Consumer-Card loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 4,123 | 3,741 | ||
Unpaid Principal Balance | 4,113 | 3,731 | ||
Related Allowance | 590 | 566 | ||
Consumer - Other | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,467 | 2,895 | ||
Unpaid Principal Balance | 5,457 | 2,888 | ||
Related Allowance | 779 | 351 | ||
Non-recourse Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 11,057 | 22,032 | 24,902 | |
Related Allowance | 1,323 | 7,751 | ¥ 8,534 | |
Non-recourse Loans | Corporate borrowers | Japan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,068 | 5,285 | ||
Unpaid Principal Balance | 5,068 | 5,285 | ||
Related Allowance | 72 | 64 | ||
Non-recourse Loans | Corporate borrowers | The Americas | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,989 | 16,747 | ||
Unpaid Principal Balance | 5,988 | 16,747 | ||
Related Allowance | 1,251 | 7,687 | ||
Corporate Real Estate Companies Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 8,612 | 21,107 | ||
Unpaid Principal Balance | 8,480 | 20,875 | ||
Related Allowance | 2,140 | 5,099 | ||
Other-Entertainment industry | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 2,429 | 4,472 | ||
Unpaid Principal Balance | 2,420 | 4,440 | ||
Related Allowance | 840 | 1,429 | ||
Other Corporate Loan | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 26,381 | 26,214 | ||
Unpaid Principal Balance | 25,807 | 25,070 | ||
Related Allowance | 9,572 | 9,013 | ||
Impaired Financing Receivables with No Related Allowance | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | [2] | 14,601 | 18,404 | |
Unpaid Principal Balance | [2] | 14,498 | 18,359 | |
Related Allowance | [2] | 0 | 0 | |
Impaired Financing Receivables with No Related Allowance | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 931 | 450 | ||
Unpaid Principal Balance | 852 | 407 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 13,670 | 17,954 | ||
Unpaid Principal Balance | 13,646 | 17,952 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Purchased loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Consumer - Housing loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 931 | 450 | ||
Unpaid Principal Balance | 852 | 407 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Consumer-Card loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Consumer - Other | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Non-recourse Loans | Corporate borrowers | Japan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 4,776 | 4,975 | ||
Unpaid Principal Balance | 4,776 | 4,975 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Non-recourse Loans | Corporate borrowers | The Americas | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Corporate Real Estate Companies Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 5,167 | ||
Unpaid Principal Balance | 0 | 5,167 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Other-Entertainment industry | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 211 | 892 | ||
Unpaid Principal Balance | 211 | 892 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Other Corporate Loan | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 8,683 | 6,920 | ||
Unpaid Principal Balance | 8,659 | 6,918 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with Related Allowance | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | [3] | 58,992 | 82,630 | |
Unpaid Principal Balance | [3] | 57,758 | 79,418 | |
Related Allowance | [3] | 22,533 | 34,379 | |
Impaired Financing Receivables with Related Allowance | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 13,170 | 11,543 | ||
Unpaid Principal Balance | 12,628 | 9,737 | ||
Related Allowance | 2,770 | 2,606 | ||
Impaired Financing Receivables with Related Allowance | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 34,809 | 55,871 | ||
Unpaid Principal Balance | 34,117 | 54,465 | ||
Related Allowance | 13,875 | 23,292 | ||
Impaired Financing Receivables with Related Allowance | Purchased loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 11,013 | 15,216 | ||
Unpaid Principal Balance | 11,013 | 15,216 | ||
Related Allowance | 5,888 | 8,481 | ||
Impaired Financing Receivables with Related Allowance | Consumer - Housing loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 3,580 | 4,907 | ||
Unpaid Principal Balance | 3,058 | 3,118 | ||
Related Allowance | 1,401 | 1,689 | ||
Impaired Financing Receivables with Related Allowance | Consumer-Card loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 4,123 | 3,741 | ||
Unpaid Principal Balance | 4,113 | 3,731 | ||
Related Allowance | 590 | 566 | ||
Impaired Financing Receivables with Related Allowance | Consumer - Other | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,467 | 2,895 | ||
Unpaid Principal Balance | 5,457 | 2,888 | ||
Related Allowance | 779 | 351 | ||
Impaired Financing Receivables with Related Allowance | Non-recourse Loans | Corporate borrowers | Japan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 292 | 310 | ||
Unpaid Principal Balance | 292 | 310 | ||
Related Allowance | 72 | 64 | ||
Impaired Financing Receivables with Related Allowance | Non-recourse Loans | Corporate borrowers | The Americas | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,989 | 16,747 | ||
Unpaid Principal Balance | 5,988 | 16,747 | ||
Related Allowance | 1,251 | 7,687 | ||
Impaired Financing Receivables with Related Allowance | Corporate Real Estate Companies Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 8,612 | 15,940 | ||
Unpaid Principal Balance | 8,480 | 15,708 | ||
Related Allowance | 2,140 | 5,099 | ||
Impaired Financing Receivables with Related Allowance | Other-Entertainment industry | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 2,218 | 3,580 | ||
Unpaid Principal Balance | 2,209 | 3,548 | ||
Related Allowance | 840 | 1,429 | ||
Impaired Financing Receivables with Related Allowance | Other Corporate Loan | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 17,698 | 19,294 | ||
Unpaid Principal Balance | 17,148 | 18,152 | ||
Related Allowance | ¥ 9,572 | ¥ 9,013 | ||
[1] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 ("Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality"). | |||
[2] | "With no related allowance recorded" represents impaired loans with no allowance for credit losses as all amounts are considered to be collectible. | |||
[3] | "With an allowance recorded" represents impaired loans with the allowance for credit losses as all or a part of the amounts are not considered to be collectible. |
Credit Quality of Financing 105
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Average Recorded Investments of Impaired Loans and Interest Income) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | ¥ 84,217 | ¥ 113,544 | ¥ 171,960 |
Interest Income on Impaired Loans | 1,291 | 2,381 | 4,441 | |
Interest on Impaired Loans Collected in Cash | 1,216 | 1,921 | 3,679 | |
Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 13,215 | 11,822 | 11,445 |
Interest Income on Impaired Loans | 317 | 376 | 295 | |
Interest on Impaired Loans Collected in Cash | 269 | 273 | 230 | |
Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 5,090 | 6,286 | 8,004 |
Interest Income on Impaired Loans | 176 | 268 | 231 | |
Interest on Impaired Loans Collected in Cash | 148 | 180 | 178 | |
Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 3,970 | 3,368 | 2,453 |
Interest Income on Impaired Loans | 69 | 60 | 38 | |
Interest on Impaired Loans Collected in Cash | 59 | 51 | 31 | |
Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 4,155 | 2,168 | 988 |
Interest Income on Impaired Loans | 72 | 48 | 26 | |
Interest on Impaired Loans Collected in Cash | 62 | 42 | 21 | |
Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 58,138 | 82,986 | 134,927 |
Interest Income on Impaired Loans | 974 | 2,005 | 4,146 | |
Interest on Impaired Loans Collected in Cash | 947 | 1,648 | 3,449 | |
Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 5,117 | 5,975 | 15,897 |
Interest Income on Impaired Loans | 7 | 10 | 234 | |
Interest on Impaired Loans Collected in Cash | 7 | 10 | 219 | |
Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 11,759 | 15,657 | 23,119 |
Interest Income on Impaired Loans | 275 | 502 | 667 | |
Interest on Impaired Loans Collected in Cash | 275 | 502 | 667 | |
Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 13,843 | 22,009 | 38,733 |
Interest Income on Impaired Loans | 210 | 417 | 1,154 | |
Interest on Impaired Loans Collected in Cash | 198 | 355 | 990 | |
Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 3,505 | 5,951 | 10,277 |
Interest Income on Impaired Loans | 102 | 202 | 509 | |
Interest on Impaired Loans Collected in Cash | 99 | 149 | 343 | |
Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 23,914 | 33,394 | 46,901 |
Interest Income on Impaired Loans | 380 | 874 | 1,582 | |
Interest on Impaired Loans Collected in Cash | 368 | 632 | 1,230 | |
Purchased loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investments in Impaired Loans | [1] | 12,864 | 18,736 | 25,588 |
Interest Income on Impaired Loans | 0 | 0 | 0 | |
Interest on Impaired Loans Collected in Cash | ¥ 0 | ¥ 0 | ¥ 0 | |
[1] | Average balances are calculated on the basis of fiscal beginning and quarter-end balances. |
Credit Quality of Financing 106
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Credit Quality Indicators) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | ¥ 3,760,502 | ¥ 3,678,895 | ¥ 3,395,361 | |
Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,190,136 | 1,216,454 | 1,094,073 | |
Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 839,125 | 829,885 | ||
Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 351,011 | 386,569 | ||
Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,461,982 | 1,330,353 | 1,236,414 | |
Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,138,054 | 1,059,786 | ||
Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 260,533 | 243,225 | ||
Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 63,395 | 27,342 | ||
Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,077,860 | 1,089,796 | ||
Corporate borrowers | Non-recourse Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 81,211 | 124,768 | 174,204 | |
Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 19,951 | 41,535 | ||
Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 61,260 | 83,233 | ||
Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 270,170 | 256,600 | ||
Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 101,281 | 106,173 | ||
Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 625,198 | 602,255 | ||
Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | [1] | 30,524 | 42,292 | ¥ 53,341 |
Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 3,666,175 | 3,555,853 | ||
Performing | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,177,580 | 1,201,081 | ||
Performing | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 831,207 | 819,592 | ||
Performing | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 346,373 | 381,489 | ||
Performing | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,439,703 | 1,311,725 | ||
Performing | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,131,276 | 1,050,531 | ||
Performing | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 255,753 | 238,660 | ||
Performing | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 52,674 | 22,534 | ||
Performing | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,029,381 | 1,015,971 | ||
Performing | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 14,883 | 36,250 | ||
Performing | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 55,271 | 66,486 | ||
Performing | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 261,558 | 235,493 | ||
Performing | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 98,852 | 101,701 | ||
Performing | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 598,817 | 576,041 | ||
Performing | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 19,511 | 27,076 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 73,593 | 101,034 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 14,101 | 11,993 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 4,511 | 5,357 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 4,123 | 3,741 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,467 | 2,895 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 48,479 | 73,825 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,068 | 5,285 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,989 | 16,747 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 8,612 | 21,107 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 2,429 | 4,472 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 26,381 | 26,214 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 11,013 | 15,216 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 20,734 | 22,008 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 12,556 | 15,373 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 7,918 | 10,293 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 4,638 | 5,080 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 8,178 | 6,635 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 2,267 | 3,898 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 657 | 824 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,254 | 1,913 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 94,327 | 123,042 | ||
Nonperforming | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 12,556 | 15,373 | ||
Nonperforming | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 7,918 | 10,293 | ||
Nonperforming | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 4,638 | 5,080 | ||
Nonperforming | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 22,279 | 18,628 | ||
Nonperforming | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 6,778 | 9,255 | ||
Nonperforming | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 4,780 | 4,565 | ||
Nonperforming | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 10,721 | 4,808 | ||
Nonperforming | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 48,479 | 73,825 | ||
Nonperforming | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,068 | 5,285 | ||
Nonperforming | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,989 | 16,747 | ||
Nonperforming | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 8,612 | 21,107 | ||
Nonperforming | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 2,429 | 4,472 | ||
Nonperforming | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 26,381 | 26,214 | ||
Nonperforming | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | ¥ 11,013 | ¥ 15,216 | ||
[1] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 ("Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality"). |
Credit Quality of Financing 107
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Nonaccrual and Past Due Financing Receivables) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | ¥ 57,325 | ¥ 76,254 |
Total Financing Receivables | 3,729,978 | 3,636,603 |
Non-Accrual | 55,368 | 68,895 |
Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 19,013 | 21,515 |
Total Financing Receivables | 1,190,136 | 1,216,454 |
Non-Accrual | 12,556 | 15,373 |
Direct Financing Leases | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 8,418 | 12,170 |
Total Financing Receivables | 839,125 | 829,885 |
Non-Accrual | 7,918 | 10,293 |
Direct Financing Leases | Overseas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 10,595 | 9,345 |
Total Financing Receivables | 351,011 | 386,569 |
Non-Accrual | 4,638 | 5,080 |
Consumer borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 16,350 | 13,054 |
Total Financing Receivables | 1,461,982 | 1,330,353 |
Non-Accrual | 11,348 | 9,825 |
Consumer borrowers | Consumer - Housing loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 6,718 | 8,175 |
Total Financing Receivables | 1,138,054 | 1,059,786 |
Non-Accrual | 4,435 | 6,503 |
Consumer borrowers | Consumer-Card loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 1,606 | 1,906 |
Total Financing Receivables | 260,533 | 243,225 |
Non-Accrual | 1,103 | 1,202 |
Consumer borrowers | Consumer - Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 8,026 | 2,973 |
Total Financing Receivables | 63,395 | 27,342 |
Non-Accrual | 5,810 | 2,120 |
Corporate borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 21,962 | 41,685 |
Total Financing Receivables | 1,077,860 | 1,089,796 |
Non-Accrual | 31,464 | 43,697 |
Corporate borrowers | Non-recourse Loans | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 4,776 | 4,975 |
Total Financing Receivables | 19,951 | 41,535 |
Non-Accrual | 4,776 | 4,975 |
Corporate borrowers | Non-recourse Loans | The Americas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,770 | 16,485 |
Total Financing Receivables | 61,260 | 83,233 |
Non-Accrual | 5,924 | 14,716 |
Corporate borrowers | Corporate Real Estate Companies Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,771 | 8,403 |
Total Financing Receivables | 270,170 | 256,600 |
Non-Accrual | 2,727 | 8,730 |
Corporate borrowers | Other-Entertainment industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 145 | 571 |
Total Financing Receivables | 101,281 | 106,173 |
Non-Accrual | 145 | 571 |
Corporate borrowers | Other Corporate Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 11,500 | 11,251 |
Total Financing Receivables | 625,198 | 602,255 |
Non-Accrual | 17,892 | 14,705 |
30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 14,477 | 17,362 |
30 To 89 Days Past Due | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 6,457 | 6,142 |
30 To 89 Days Past Due | Direct Financing Leases | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 500 | 1,877 |
30 To 89 Days Past Due | Direct Financing Leases | Overseas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,957 | 4,265 |
30 To 89 Days Past Due | Consumer borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,002 | 3,229 |
30 To 89 Days Past Due | Consumer borrowers | Consumer - Housing loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,283 | 1,672 |
30 To 89 Days Past Due | Consumer borrowers | Consumer-Card loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 503 | 704 |
30 To 89 Days Past Due | Consumer borrowers | Consumer - Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,216 | 853 |
30 To 89 Days Past Due | Corporate borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 3,018 | 7,991 |
30 To 89 Days Past Due | Corporate borrowers | Non-recourse Loans | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 0 | 0 |
30 To 89 Days Past Due | Corporate borrowers | Non-recourse Loans | The Americas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,370 | 6,639 |
30 To 89 Days Past Due | Corporate borrowers | Corporate Real Estate Companies Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 44 | 37 |
30 To 89 Days Past Due | Corporate borrowers | Other-Entertainment industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 0 | 0 |
30 To 89 Days Past Due | Corporate borrowers | Other Corporate Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 604 | 1,315 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 42,848 | 58,892 |
90 Days or More Past Due | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 12,556 | 15,373 |
90 Days or More Past Due | Direct Financing Leases | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 7,918 | 10,293 |
90 Days or More Past Due | Direct Financing Leases | Overseas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 4,638 | 5,080 |
90 Days or More Past Due | Consumer borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 11,348 | 9,825 |
90 Days or More Past Due | Consumer borrowers | Consumer - Housing loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 4,435 | 6,503 |
90 Days or More Past Due | Consumer borrowers | Consumer-Card loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 1,103 | 1,202 |
90 Days or More Past Due | Consumer borrowers | Consumer - Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,810 | 2,120 |
90 Days or More Past Due | Corporate borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 18,944 | 33,694 |
90 Days or More Past Due | Corporate borrowers | Non-recourse Loans | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 4,776 | 4,975 |
90 Days or More Past Due | Corporate borrowers | Non-recourse Loans | The Americas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 400 | 9,846 |
90 Days or More Past Due | Corporate borrowers | Corporate Real Estate Companies Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,727 | 8,366 |
90 Days or More Past Due | Corporate borrowers | Other-Entertainment industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 145 | 571 |
90 Days or More Past Due | Corporate borrowers | Other Corporate Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | ¥ 10,896 | ¥ 9,936 |
Credit Quality of Financing 108
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Troubled Debt Restructurings of Financing Receivables) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | ¥ 7,020 | ¥ 6,450 | ¥ 18,034 |
Post-modification Outstanding Recorded Investment | 5,472 | 4,952 | 13,683 |
Consumer borrowers | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 6,436 | 5,504 | 3,899 |
Post-modification Outstanding Recorded Investment | 4,890 | 4,061 | 2,586 |
Consumer borrowers | Consumer - Housing loans | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 71 | 483 | 724 |
Post-modification Outstanding Recorded Investment | 23 | 263 | 334 |
Consumer borrowers | Consumer-Card loans | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 2,405 | 2,566 | 1,898 |
Post-modification Outstanding Recorded Investment | 1,910 | 2,018 | 1,391 |
Consumer borrowers | Consumer - Other | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 3,960 | 2,455 | 1,277 |
Post-modification Outstanding Recorded Investment | 2,957 | 1,780 | 861 |
Corporate borrowers | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 584 | 946 | 14,135 |
Post-modification Outstanding Recorded Investment | 582 | 891 | 11,097 |
Corporate borrowers | Non-recourse Loans | The Americas | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 575 | 145 | 4,809 |
Post-modification Outstanding Recorded Investment | 575 | 145 | 4,723 |
Corporate borrowers | Non-recourse Loans | Japan | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 4,745 | ||
Post-modification Outstanding Recorded Investment | 2,608 | ||
Corporate borrowers | Other Corporate Loan | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 9 | 801 | 3,474 |
Post-modification Outstanding Recorded Investment | ¥ 7 | ¥ 746 | 2,981 |
Corporate borrowers | Corporate Real Estate Companies Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 328 | ||
Post-modification Outstanding Recorded Investment | 276 | ||
Corporate borrowers | Other-Entertainment industry | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification Outstanding Recorded Investment | 779 | ||
Post-modification Outstanding Recorded Investment | ¥ 509 |
Credit Quality of Financing 109
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Financing Receivables Modified as Troubled Debt Restructurings) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | ¥ 68 | ¥ 452 | ¥ 622 |
Consumer borrowers | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 68 | 122 | 57 |
Consumer borrowers | Consumer - Housing loans | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 27 | 18 | |
Consumer borrowers | Consumer-Card loans | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 45 | 62 | 31 |
Consumer borrowers | Consumer - Other | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | ¥ 23 | 33 | 8 |
Corporate borrowers | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 330 | 565 | |
Corporate borrowers | Other Corporate Loan | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | ¥ 330 | 26 | |
Corporate borrowers | Non-recourse Loans | The Americas | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | 497 | ||
Corporate borrowers | Corporate Real Estate Companies Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded Investment | ¥ 42 |
Information about Residential M
Information about Residential Mortgage Loans Process of Foreclosure - Additional Information (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Financing Receivable, Modifications [Line Items] | |
Residential mortgage loans in process of foreclosure | ¥ 601 |
Investment in Securities (Inves
Investment in Securities (Investment in Securities) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Investments [Line Items] | |||
Trading securities | [1] | ¥ 725,821 | ¥ 1,190,131 |
Available-for-sale securities | 1,347,890 | 1,356,840 | |
Held-to-maturity securities | 114,858 | 115,599 | |
Other securities | 156,223 | 183,687 | |
Total | ¥ 2,344,792 | ¥ 2,846,257 | |
[1] | The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥1,165,347 million and ¥704,313 million as of March 31, 2015 and March 31, 2016, respectively. |
Investment in Securities (In112
Investment in Securities (Investment in Securities) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Investments [Line Items] | |||
Trading securities | [1] | ¥ 725,821 | ¥ 1,190,131 |
Variable Annuity and Variable Life Insurance Contracts | |||
Schedule of Investments [Line Items] | |||
Trading securities | ¥ 704,313 | ¥ 1,165,347 | |
[1] | The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥1,165,347 million and ¥704,313 million as of March 31, 2015 and March 31, 2016, respectively. |
Investment in Securities - Addi
Investment in Securities - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016JPY (¥)Investment | Mar. 31, 2015JPY (¥)Investment | Mar. 31, 2014JPY (¥) | |
Schedule of Investments [Line Items] | |||
Net unrealized holding gains (losses) on trading securities | ¥ (84,678) | ¥ 137,704 | ¥ (3,083) |
Proceeds from sales of available-for-sale securities | 464,232 | 511,868 | 318,697 |
Available-for-sale securities gross realized gains | 32,593 | 32,206 | 14,517 |
Available-for-sale securities gross realized losses | 467 | 129 | 368 |
Write-downs of securities | 4,515 | 8,997 | 7,989 |
Aggregate carrying amount of other securities accounted for under the cost method | 27,349 | 43,718 | |
Aggregate carrying amount of other securities not evaluated for impairment | 27,125 | 42,838 | |
Investment funds fair value | ¥ 27,367 | ¥ 16,891 | |
Number of investment securities in an unrealized loss position | Investment | 259 | 197 | |
Finance revenues | ¥ 12,712 | ¥ 12,391 | 12,393 |
Carrying amounts of debt securities acquired with evidence of deterioration of credit quality | 319 | 851 | |
Nominal value of debt securities acquired with evidence of deterioration of credit quality | 1,057 | 5,595 | |
Outstanding balance of accretable yield of debt securities acquired with evidence of deterioration of credit quality | 743 | 996 | |
CMBS and RMBS in the Americas, and other asset-backed securities | |||
Schedule of Investments [Line Items] | |||
Non-credit components of other-than-temporary impairments, gross unrealized gains | 61 | 234 | 59 |
Non-credit components of other-than-temporary impairments, gross unrealized losses | 6 | 58 | 102 |
Non-credit components of other-than-temporary impairments gains, accumulated other comprehensive income | 39 | 149 | 38 |
Non-credit components of other-than-temporary impairments losses, accumulated other comprehensive income | 4 | 37 | ¥ 65 |
Available-for-sale securities | |||
Schedule of Investments [Line Items] | |||
Investment funds fair value | 16,227 | 8,168 | |
Available-for-sale securities | Government Securities | |||
Schedule of Investments [Line Items] | |||
Investment funds fair value | 988 | ||
Other securities | |||
Schedule of Investments [Line Items] | |||
Investment funds fair value | ¥ 10,152 | ¥ 8,723 |
Investment in Securities (Amort
Investment in Securities (Amortized Cost Basis Amounts, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Values of Available-for-Sale Securities and Held-to-Maturity Securities in Each Major Security Type) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | ¥ 1,283,313 | ¥ 1,283,012 |
Available-for-sale securities, Gross unrealized gains | 81,231 | 76,643 |
Available-for-sale securities, Gross unrealized losses | (16,654) | (2,815) |
Available-for-sale securities, Fair value | 1,347,890 | 1,356,840 |
Held-to-maturity securities, Amortized cost | 114,858 | 115,599 |
Held-to-maturity securities, Fair value | 145,520 | |
Amortized cost | 1,398,171 | 1,398,611 |
Gross unrealized gains | 111,893 | 91,133 |
Gross unrealized losses | (16,654) | (2,927) |
Fair value | 1,493,410 | 1,486,817 |
Japanese Government Bond Securities | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, Amortized cost | 114,858 | 115,599 |
Held-to-maturity securities, Gross unrealized gains | 30,662 | 14,490 |
Held-to-maturity securities, Gross unrealized losses | 0 | (112) |
Held-to-maturity securities, Fair value | 145,520 | 129,977 |
Japanese and foreign government bond securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 464,854 | 517,500 |
Available-for-sale securities, Gross unrealized gains | 32,501 | 10,127 |
Available-for-sale securities, Gross unrealized losses | 0 | (35) |
Available-for-sale securities, Fair value | 497,355 | 527,592 |
Japanese prefectural and foreign municipal bond securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 165,465 | 155,943 |
Available-for-sale securities, Gross unrealized gains | 4,106 | 5,644 |
Available-for-sale securities, Gross unrealized losses | (37) | (110) |
Available-for-sale securities, Fair value | 169,534 | 161,477 |
Corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 403,349 | 283,859 |
Available-for-sale securities, Gross unrealized gains | 7,443 | 3,891 |
Available-for-sale securities, Gross unrealized losses | (13) | (137) |
Available-for-sale securities, Fair value | 410,779 | 287,613 |
Specified bonds issued by SPEs in Japan | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 3,422 | 7,257 |
Available-for-sale securities, Gross unrealized gains | 39 | 54 |
Available-for-sale securities, Gross unrealized losses | 0 | (31) |
Available-for-sale securities, Fair value | 3,461 | 7,280 |
CMBS and RMBS in the Americas | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 97,692 | 67,049 |
Available-for-sale securities, Gross unrealized gains | 1,906 | 3,073 |
Available-for-sale securities, Gross unrealized losses | (2,412) | (146) |
Available-for-sale securities, Fair value | 97,186 | 69,976 |
Other asset-backed securities and debt securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 63,079 | 147,308 |
Available-for-sale securities, Gross unrealized gains | 1,744 | 1,286 |
Available-for-sale securities, Gross unrealized losses | (6,593) | (624) |
Available-for-sale securities, Fair value | 58,230 | 145,970 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 85,452 | 104,096 |
Available-for-sale securities, Gross unrealized gains | 33,492 | 52,568 |
Available-for-sale securities, Gross unrealized losses | (7,599) | (1,732) |
Available-for-sale securities, Fair value | ¥ 111,345 | ¥ 154,932 |
Investment in Securities (Infor
Investment in Securities (Information about Available-for-Sale Securities and Held-to-Maturity Securities with Gross Unrealized Losses and Length of Time Individual Securities Have Been in Continuous Unrealized Loss Position) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | ¥ 134,276 | ¥ 158,641 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (11,684) | (2,261) |
Available-for-sale Securities, 12 months or more Fair value | 26,798 | 16,850 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (4,970) | (554) |
Available-for-sale Securities, Total Fair value | 161,074 | 175,491 |
Available-for-sale Securities, Total Gross unrealized losses | (16,654) | (2,815) |
Held-to-maturity Securities, Less than 12 months Fair value | 4,889 | |
Held-to-maturity Securities, Less than 12 months Gross unrealized losses | (112) | |
Held-to-maturity Securities, 12 months or more Fair value | 0 | |
Held-to-maturity Securities, 12 months or more Gross unrealized losses | 0 | |
Held-to-maturity Securities, Total Fair value | 4,889 | |
Held-to-maturity Securities, Total Gross unrealized losses | (112) | |
Less than 12 months Fair value | 163,530 | |
Less than 12 months Gross unrealized losses | (2,373) | |
12 months or more Fair value | 16,850 | |
12 months or more Gross unrealized losses | (554) | |
Total Fair value | 180,380 | |
Total Gross unrealized losses | (2,927) | |
Japanese and foreign government bond securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 5,407 | |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (35) | |
Available-for-sale Securities, 12 months or more Fair value | 0 | |
Available-for-sale Securities, 12 months or more Gross unrealized losses | 0 | |
Available-for-sale Securities, Total Fair value | 5,407 | |
Available-for-sale Securities, Total Gross unrealized losses | (35) | |
Japanese prefectural and foreign municipal bond securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 14,821 | 44,782 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (30) | (110) |
Available-for-sale Securities, 12 months or more Fair value | 554 | 0 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (7) | 0 |
Available-for-sale Securities, Total Fair value | 15,375 | 44,782 |
Available-for-sale Securities, Total Gross unrealized losses | (37) | (110) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 32,969 | 81,108 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (13) | (58) |
Available-for-sale Securities, 12 months or more Fair value | 1,802 | 6,363 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | 0 | (79) |
Available-for-sale Securities, Total Fair value | 34,771 | 87,471 |
Available-for-sale Securities, Total Gross unrealized losses | (13) | (137) |
Specified bonds issued by SPEs in Japan | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 0 | |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | 0 | |
Available-for-sale Securities, 12 months or more Fair value | 1,269 | |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (31) | |
Available-for-sale Securities, Total Fair value | 1,269 | |
Available-for-sale Securities, Total Gross unrealized losses | (31) | |
CMBS and RMBS in the Americas | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 55,226 | 9,754 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (2,234) | (31) |
Available-for-sale Securities, 12 months or more Fair value | 5,002 | 506 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (178) | (115) |
Available-for-sale Securities, Total Fair value | 60,228 | 10,260 |
Available-for-sale Securities, Total Gross unrealized losses | (2,412) | (146) |
Other asset-backed securities and debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 14,220 | 10,950 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (1,857) | (304) |
Available-for-sale Securities, 12 months or more Fair value | 18,846 | 8,127 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (4,736) | (320) |
Available-for-sale Securities, Total Fair value | 33,066 | 19,077 |
Available-for-sale Securities, Total Gross unrealized losses | (6,593) | (624) |
Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 17,040 | 6,640 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (7,550) | (1,723) |
Available-for-sale Securities, 12 months or more Fair value | 594 | 585 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (49) | (9) |
Available-for-sale Securities, Total Fair value | 17,634 | 7,225 |
Available-for-sale Securities, Total Gross unrealized losses | ¥ (7,599) | ¥ (1,732) |
Investment in Securities (Total
Investment in Securities (Total Other-Than-Temporary Impairment with Offset for Amount of Total Other-Than-Temporary Impairment Recognized in Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Gain (Loss) on Investments [Line Items] | |||
Total other-than-temporary impairment losses | ¥ 4,517 | ¥ 9,077 | ¥ 7,992 |
Portion of loss recognized in other comprehensive income (before taxes) | (2) | (80) | (3) |
Net impairment losses recognized in earnings | ¥ 4,515 | ¥ 8,997 | ¥ 7,989 |
Investment in Securities (Roll-
Investment in Securities (Roll-Forwards of Amount Related to Credit Losses on Other-Than-Temporarily Impaired Debt Securities Recognized in Earnings) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Beginning | ¥ 2,633 | ¥ 1,991 | ¥ 7,809 |
Credit loss for which an other-than-temporary impairment was not previously recognized | 0 | 456 | 8 |
Credit loss for which an other-than-temporary impairment was previously recognized | 49 | 282 | 239 |
For securities sold or redeemed | (604) | (44) | (3,609) |
Due to change in intent to sell or requirement to sell | (665) | (52) | (2,456) |
Ending | ¥ 1,413 | ¥ 2,633 | ¥ 1,991 |
Investment in Securities (Summa
Investment in Securities (Summary of Contractual Maturities of Debt Securities Classified as Available-for-Sale Securities and Held-to-Maturity Securities) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Available-for-sale securities, amortized cost | ||
Due within one year | ¥ 98,357 | |
Due after one to five years | 386,050 | |
Due after five to ten years | 375,770 | |
Due after ten years | 337,684 | |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 1,197,861 | |
Available-for-sale securities, fair value | ||
Due within one year | 99,607 | |
Due after one to five years | 388,102 | |
Due after five to ten years | 387,105 | |
Due after ten years | 361,731 | |
Available-for-sale Securities, Debt Securities, Total | 1,236,545 | |
Held-to-maturity securities, amortized cost | ||
Due within one year | 294 | |
Due after ten years | 114,564 | |
Held-to-maturity securities, Amortized cost | 114,858 | ¥ 115,599 |
Held-to-maturity securities, fair value | ||
Due within one year | 294 | |
Due after ten years | 145,226 | |
Held-to-maturity securities, Fair value | ¥ 145,520 |
Securitization Transactions (Qu
Securitization Transactions (Quantitative Information About Delinquencies, Net Credit Losses, and Components of Financial Assets Sold on Securitization and Other Assets Managed Together) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Principal amount of assets managed or sold on securitization receivables | ¥ 3,782,369 | ¥ 3,694,508 | |
Direct financing leases sold on securitization | 706 | 894 | |
Principal amount of assets managed or sold on securitization receivables | 3,783,075 | 3,695,402 | |
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 94,327 | 123,042 | |
Direct financing lease sold on securitization | 0 | 0 | |
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 94,327 | 123,042 | |
Assets recorded on the balance sheet credit losses | 17,504 | 25,793 | ¥ 28,116 |
Direct financing lease sold on securitization credit losses | 0 | 0 | 0 |
Assets managed or sold on securitization net credit losses | 17,504 | 25,793 | 28,116 |
Direct Financing Leases | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Principal amount of assets managed or sold on securitization receivables | 1,190,136 | 1,216,454 | |
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 12,556 | 15,373 | |
Assets recorded on the balance sheet credit losses | 4,062 | 3,774 | 4,351 |
Installment Loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Principal amount of assets managed or sold on securitization receivables | 2,592,233 | 2,478,054 | |
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 81,771 | 107,669 | |
Assets recorded on the balance sheet credit losses | ¥ 13,442 | ¥ 22,019 | ¥ 23,765 |
Securitization Transactions - A
Securitization Transactions - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Servicing assets | ¥ 16,852 | ¥ 18,376 |
Increase in servicing assets | 4,077 | 3,410 |
Amortization of servicing assets | 4,467 | 4,703 |
Foreign currency translation effects on servicing assets | (1,134) | 2,758 |
Fair value of servicing assets | ¥ 24,229 | ¥ 27,676 |
Variable Interest Entities (Inf
Variable Interest Entities (Information about Consolidated VIEs) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Total assets | [1] | ¥ 981,832 | ¥ 966,402 |
Total Liabilities | [1] | 523,704 | 497,701 |
Assets which are pledged as collateral | [2] | 800,509 | 727,631 |
Commitments | [3] | 130,812 | 204,534 |
Liquidating Customer Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 0 | 0 |
Total Liabilities | [1] | 0 | 0 |
Assets which are pledged as collateral | [2] | 0 | 0 |
Commitments | [3] | 0 | 0 |
Acquisition Of Real Estate And Real Estate Development Projects For Customers | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 953 | 1,036 |
Total Liabilities | [1] | 0 | 123 |
Assets which are pledged as collateral | [2] | 0 | 0 |
Commitments | [3] | 0 | 0 |
Acquisition Of Real Estate For The Company And Its Subsidiaries Real Estate Related Business | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 174,854 | 223,069 |
Total Liabilities | [1] | 56,325 | 65,017 |
Assets which are pledged as collateral | [2] | 113,869 | 135,723 |
Commitments | [3] | 7,000 | 7,000 |
Corporate Rehabilitation Support Business | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 2,055 | 4,366 |
Total Liabilities | [1] | 40 | 34 |
Assets which are pledged as collateral | [2] | 0 | 0 |
Commitments | [3] | 0 | 0 |
Investment in securities | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 24,882 | 21,027 |
Total Liabilities | [1] | 9,657 | 8,064 |
Assets which are pledged as collateral | [2] | 17,336 | 12,928 |
Commitments | [3] | 2,422 | 23,974 |
Securitizing Financial Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 381,313 | 393,502 |
Total Liabilities | [1] | 256,620 | 250,402 |
Assets which are pledged as collateral | [2] | 346,169 | 325,236 |
Commitments | [3] | 0 | 0 |
Securitization Of Loans Receivable Originated By Third Parties | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 21,550 | 36,452 |
Total Liabilities | [1] | 20,548 | 43,280 |
Assets which are pledged as collateral | [2] | 21,550 | 36,452 |
Commitments | [3] | 0 | 0 |
Power Generation Projects | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 159,593 | 84,242 |
Total Liabilities | [1] | 82,535 | 31,236 |
Assets which are pledged as collateral | [2] | 88,119 | 30,227 |
Commitments | [3] | 121,390 | 173,560 |
Other VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 216,632 | 202,708 |
Total Liabilities | [1] | 97,979 | 99,545 |
Assets which are pledged as collateral | [2] | 213,466 | 187,065 |
Commitments | [3] | ¥ 0 | ¥ 0 |
[1] | The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. | ||
[2] | The assets are pledged as collateral by VIE for financing of the VIE. | ||
[3] | This item represents remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Variable Interest Entities (122
Variable Interest Entities (Information about Non Consolidated VIEs) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Total assets | ¥ 4,362,997 | ¥ 4,524,393 | |
Specified bonds and non-recourse loans | 4,776 | 14,098 | |
Investments | 58,025 | 68,060 | |
Maximum exposure to loss | [1] | 98,922 | 126,699 |
Liquidating Customer Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | 33,406 | 32,421 | |
Specified bonds and non-recourse loans | 0 | 0 | |
Investments | 2,091 | 2,091 | |
Maximum exposure to loss | [1] | 9,551 | 9,551 |
Acquisition Of Real Estate And Real Estate Development Projects For Customers | |||
Variable Interest Entity [Line Items] | |||
Total assets | 170,001 | 325,429 | |
Specified bonds and non-recourse loans | 4,776 | 14,084 | |
Investments | 13,039 | 26,283 | |
Maximum exposure to loss | [1] | 24,964 | 50,017 |
Acquisition Of Real Estate For The Company And Its Subsidiaries Real Estate Related Business | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Specified bonds and non-recourse loans | 0 | 0 | |
Investments | 0 | 0 | |
Maximum exposure to loss | [1] | 0 | 0 |
Corporate Rehabilitation Support Business | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Specified bonds and non-recourse loans | 0 | 0 | |
Investments | 0 | 0 | |
Maximum exposure to loss | [1] | 0 | 0 |
Investment in securities | |||
Variable Interest Entity [Line Items] | |||
Total assets | 2,964,616 | 3,038,819 | |
Specified bonds and non-recourse loans | 0 | 0 | |
Investments | 26,174 | 28,584 | |
Maximum exposure to loss | [1] | 47,636 | 55,940 |
Securitizing Financial Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Specified bonds and non-recourse loans | 0 | 0 | |
Investments | 0 | 0 | |
Maximum exposure to loss | [1] | 0 | 0 |
Securitization Of Loans Receivable Originated By Third Parties | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,070,683 | 1,100,830 | |
Specified bonds and non-recourse loans | 0 | 0 | |
Investments | 10,671 | 8,064 | |
Maximum exposure to loss | [1] | 10,721 | 8,139 |
Power Generation Projects | |||
Variable Interest Entity [Line Items] | |||
Total assets | 20,007 | 0 | |
Specified bonds and non-recourse loans | 0 | 0 | |
Investments | 1,182 | 0 | |
Maximum exposure to loss | [1] | 1,182 | 0 |
Other VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets | 104,284 | 26,894 | |
Specified bonds and non-recourse loans | 0 | 14 | |
Investments | 4,868 | 3,038 | |
Maximum exposure to loss | [1] | ¥ 4,868 | ¥ 3,052 |
[1] | Maximum exposure to loss includes remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Variable Interest Entity, Not Primary Beneficiary | VIEs for acquisition of real estate for the Company and its subsidiaries' real estate-related business | ||
Variable Interest Entity [Line Items] | ||
Additional fund contributed to certain non-consolidated VIEs to support their repayment | ¥ 0 | ¥ 5,628 |
Investment in Affiliates (Inves
Investment in Affiliates (Investment in Affiliates) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Investments in and Advances to Affiliates [Line Items] | ||
Shares | ¥ 499,922 | ¥ 368,989 |
Loans | 30,745 | 9,098 |
Investment in Affiliates | ¥ 530,667 | ¥ 378,087 |
Investment in Affiliates - Addi
Investment in Affiliates - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates, aggregate investment | ¥ 110,121 | ¥ 38,916 | |
Investment in affiliates, market value | 110,568 | 50,244 | |
Investment in affiliates, dividends received | 30,063 | 18,186 | ¥ 9,957 |
Investment in affiliates, excess of cost over the underlying equity at acquisition dates | 101,289 | 50,977 | |
Asset management fee paid | 55,283 | 52,825 | 36,150 |
ORIX JREIT Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Asset management fee paid | 1,937 | 2,433 | 1,905 |
Gains on the sales office buildings | ¥ 1,744 | ¥ 10,473 | ¥ 2,261 |
Investment in Affiliates (Combi
Investment in Affiliates (Combined and Condensed Information Related to Affiliates) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Operations: | |||
Total revenues | ¥ 1,333,838 | ¥ 1,094,317 | ¥ 1,086,818 |
Income before income taxes | 177,535 | 130,799 | 137,698 |
Net income | 141,964 | 109,865 | 91,200 |
Financial position: | |||
Total assets | 8,350,901 | 6,897,921 | 5,704,862 |
Total liabilities | 6,206,321 | 5,131,402 | 4,562,871 |
Total equity | ¥ 2,144,580 | ¥ 1,766,519 | ¥ 1,141,991 |
Goodwill and Other Intangibl127
Goodwill and Other Intangible Assets (Changes in Goodwill by Reportable Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Goodwill [Line Items] | ||||
Goodwill | ¥ 382,756 | ¥ 336,203 | ¥ 126,625 | |
Accumulated impairment losses | (10,141) | (296) | (296) | |
Beginning Balance | 372,615 | 335,907 | 126,329 | |
Acquired | 34,319 | 83,751 | 184,245 | |
Impairment | (30) | (9,845) | 0 | |
Other (net) | [1] | (74,751) | (37,198) | 25,333 |
Goodwill | 342,324 | 382,756 | 336,203 | |
Accumulated impairment losses | (10,171) | (10,141) | (296) | |
Ending Balance | 332,153 | 372,615 | 335,907 | |
Corporate Financial Services | ||||
Goodwill [Line Items] | ||||
Goodwill | 55,045 | 1,304 | 754 | |
Accumulated impairment losses | (807) | (257) | (257) | |
Beginning Balance | 54,238 | 1,047 | 497 | |
Acquired | 1,158 | 53,741 | 550 | |
Impairment | (30) | (550) | 0 | |
Other (net) | [1] | 0 | 0 | 0 |
Goodwill | 56,203 | 55,045 | 1,304 | |
Accumulated impairment losses | (837) | (807) | (257) | |
Ending Balance | 55,366 | 54,238 | 1,047 | |
Maintenance Leasing | ||||
Goodwill [Line Items] | ||||
Goodwill | 282 | 282 | 282 | |
Accumulated impairment losses | 0 | 0 | 0 | |
Beginning Balance | 282 | 282 | 282 | |
Acquired | 0 | 0 | 0 | |
Impairment | 0 | 0 | 0 | |
Other (net) | [1] | 0 | 0 | 0 |
Goodwill | 282 | 282 | 282 | |
Accumulated impairment losses | 0 | 0 | 0 | |
Ending Balance | 282 | 282 | 282 | |
Real Estate Segment | ||||
Goodwill [Line Items] | ||||
Goodwill | 19,203 | 19,300 | 19,329 | |
Accumulated impairment losses | (8,708) | 0 | 0 | |
Beginning Balance | 10,495 | 19,300 | 19,329 | |
Acquired | 0 | 0 | 0 | |
Impairment | 0 | (8,708) | 0 | |
Other (net) | [1] | 0 | (97) | (29) |
Goodwill | 19,203 | 19,203 | 19,300 | |
Accumulated impairment losses | (8,708) | (8,708) | 0 | |
Ending Balance | 10,495 | 10,495 | 19,300 | |
Investment and Operation | ||||
Goodwill [Line Items] | ||||
Goodwill | 43,841 | 26,250 | 11,751 | |
Accumulated impairment losses | (39) | (39) | (39) | |
Beginning Balance | 43,802 | 26,211 | 11,712 | |
Acquired | 29,365 | 17,967 | 14,388 | |
Impairment | 0 | 0 | 0 | |
Other (net) | [1] | (6,260) | (376) | 111 |
Goodwill | 66,946 | 43,841 | 26,250 | |
Accumulated impairment losses | (39) | (39) | (39) | |
Ending Balance | 66,907 | 43,802 | 26,211 | |
Retail | ||||
Goodwill [Line Items] | ||||
Goodwill | 15,424 | 15,424 | 15,424 | |
Accumulated impairment losses | 0 | 0 | 0 | |
Beginning Balance | 15,424 | 15,424 | 15,424 | |
Acquired | 0 | 0 | 0 | |
Impairment | 0 | 0 | 0 | |
Other (net) | [1] | 0 | 0 | 0 |
Goodwill | 15,424 | 15,424 | 15,424 | |
Accumulated impairment losses | 0 | 0 | 0 | |
Ending Balance | 15,424 | 15,424 | 15,424 | |
Overseas Business | ||||
Goodwill [Line Items] | ||||
Goodwill | 248,961 | 273,643 | 79,085 | |
Accumulated impairment losses | (587) | 0 | 0 | |
Beginning Balance | 248,374 | 273,643 | 79,085 | |
Acquired | 3,796 | 12,043 | 169,307 | |
Impairment | 0 | (587) | 0 | |
Other (net) | [1] | (68,491) | (36,725) | 25,251 |
Goodwill | 184,266 | 248,961 | 273,643 | |
Accumulated impairment losses | (587) | (587) | 0 | |
Ending Balance | ¥ 183,679 | ¥ 248,374 | ¥ 273,643 | |
[1] | Other includes foreign currency translation adjustments, decreases due to sale of ownership interest in subsidiaries and certain other reclassifications. In the Overseas Business segment, there was a decrease of ¥39,694 million during fiscal 2015 due to the partial sale of shares of STX Energy, which as a result of the sale changed from a consolidated subsidiary to an equity method affiliate. |
Goodwill and Other Intangibl128
Goodwill and Other Intangible Assets (Changes in Goodwill by Reportable Segment) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
STX Energy | ||
Goodwill [Line Items] | ||
Amount of decrease in goodwill due to partial sale of shares | ¥ 39,694 | |
Houlihan Lokey Inc | ||
Goodwill [Line Items] | ||
Amount of decrease in goodwill due to partial sale of shares | ¥ 57,153 |
Goodwill and Other Intangibl129
Goodwill and Other Intangible Assets - Additional Information (Detail) - JPY (¥) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Intangible Assets by Major Class [Line Items] | |||
Impairment losses on goodwill | ¥ 30,000,000 | ¥ 9,845,000,000 | ¥ 0 |
Aggregate amortization expenses for intangible assets | 25,848,000,000 | 23,164,000,000 | 17,467,000,000 |
Estimated amortization expenses in fiscal 2017 | 24,540,000,000 | ||
Estimated amortization expenses in fiscal 2018 | 21,143,000,000 | ||
Estimated amortization expenses in fiscal 2019 | 19,072,000,000 | ||
Estimated amortization expenses in fiscal 2020 | 17,551,000,000 | ||
Estimated amortization expenses in fiscal 2021 | 13,352,000,000 | ||
Intangible assets subject to amortization acquired | 29,010,000,000 | ||
Impairment losses on intangible assets | 295,000,000 | 358,000,000 | 0 |
Corporate Financial Services | |||
Intangible Assets by Major Class [Line Items] | |||
Impairment losses on goodwill | 30,000,000 | 550,000,000 | 0 |
Real Estate Segment | |||
Intangible Assets by Major Class [Line Items] | |||
Impairment losses on goodwill | 0 | 8,708,000,000 | ¥ 0 |
Overseas | |||
Intangible Assets by Major Class [Line Items] | |||
Impairment losses on goodwill | ¥ 587,000,000 | ||
Software | |||
Intangible Assets by Major Class [Line Items] | |||
Intangible assets subject to amortization acquired | ¥ 10,094,000,000 | ||
Weighted average amortization period | 6 years | ||
Customer relationships | |||
Intangible Assets by Major Class [Line Items] | |||
Intangible assets subject to amortization acquired | ¥ 7,973,000,000 | ||
Weighted average amortization period | 10 years |
Goodwill and Other Intangibl130
Goodwill and Other Intangible Assets (Other Intangible Assets) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Intangible assets that have indefinite useful lives: | ||
Trade names | ¥ 75,860 | ¥ 99,395 |
Asset management contracts | 150,686 | 153,778 |
Others | 3,906 | 2,812 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), Total | 230,452 | 255,985 |
Intangible assets subject to amortization: | ||
Software | 94,898 | 99,342 |
Customer relationships | 125,081 | 126,201 |
Others | 32,388 | 33,071 |
Finite-Lived Intangible Assets, Gross, Total | 252,367 | 258,614 |
Accumulated amortization | (96,485) | (89,587) |
Net | 155,882 | 169,027 |
Intangible Assets, Net (Excluding Goodwill), Total | ¥ 386,334 | ¥ 425,012 |
Short-Term and Long-Term Deb131
Short-Term and Long-Term Debt (Composition of Short Term Debt and Weighted Average Contract Interest Rate on Short Term Debt) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Short-term Debt [Line Items] | ||
Short-term debt | ¥ 349,624 | ¥ 284,785 |
Weighted average rate | 1.30% | 1.70% |
Japan | Bank Borrowings | ||
Short-term Debt [Line Items] | ||
Short-term debt | ¥ 80,846 | ¥ 16,778 |
Weighted average rate | 0.50% | 0.50% |
Japan | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | ¥ 94,786 | ¥ 78,072 |
Weighted average rate | 0.10% | 0.20% |
Overseas | Bank Borrowings | ||
Short-term Debt [Line Items] | ||
Short-term debt | ¥ 166,417 | ¥ 178,386 |
Weighted average rate | 2.20% | 2.40% |
Overseas | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | ¥ 7,575 | ¥ 11,549 |
Weighted average rate | 4.00% | 4.00% |
Short-Term and Long-Term Deb132
Short-Term and Long-Term Debt (Composition of Long Term Debt, Weighted Average Contract Interest Rate on Long Term Debt and Repayment Due Dates) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 3,940,906 | ¥ 4,132,945 |
Weighted average rate | 1.10% | 1.40% |
Banks Fixed Rate | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 521,491 | ¥ 485,910 |
Weighted average rate | 1.80% | 1.70% |
Minimum maturity date | 2,017 | 2,016 |
Maximum maturity date | 2,033 | 2,031 |
Banks Floating Rate | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 1,601,178 | ¥ 1,622,729 |
Weighted average rate | 0.90% | 1.00% |
Minimum maturity date | 2,017 | 2,016 |
Maximum maturity date | 2,033 | 2,032 |
Insurance Companies And Others Fixed Rate | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 342,720 | ¥ 328,639 |
Weighted average rate | 1.00% | 1.20% |
Minimum maturity date | 2,018 | 2,016 |
Maximum maturity date | 2,027 | 2,025 |
Insurance Companies And Others Floating Rate | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 259,306 | ¥ 250,156 |
Weighted average rate | 0.80% | 0.70% |
Minimum maturity date | 2,017 | 2,017 |
Maximum maturity date | 2,026 | 2,028 |
Unsecured Bonds | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 877,504 | ¥ 1,118,766 |
Weighted average rate | 1.10% | 1.80% |
Minimum maturity date | 2,017 | 2,016 |
Maximum maturity date | 2,025 | 2,025 |
Unsecured Notes Under Medium Term Note Program | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 62,653 | ¥ 35,110 |
Weighted average rate | 2.70% | 2.90% |
Minimum maturity date | 2,017 | 2,016 |
Maximum maturity date | 2,021 | 2,018 |
Payables Under Securitized Lease Receivables | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 129,005 | ¥ 157,773 |
Weighted average rate | 0.30% | 0.50% |
Minimum maturity date | 2,020 | 2,020 |
Maximum maturity date | 2,021 | 2,021 |
Payables Under Securitized Loan Receivables And Investment In Securities | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ¥ 147,049 | ¥ 133,862 |
Weighted average rate | 2.60% | 3.20% |
Minimum maturity date | 2,017 | 2,018 |
Maximum maturity date | 2,039 | 2,039 |
Short-Term and Long-Term Deb133
Short-Term and Long-Term Debt (Schedule of Long Term Debt Repayment) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||
2,017 | ¥ 858,090 | |
2,018 | 759,484 | |
2,019 | 612,900 | |
2,020 | 400,214 | |
2,021 | 441,672 | |
Thereafter | 868,546 | |
Total | ¥ 3,940,906 | ¥ 4,132,945 |
Short-Term and Long-Term Debt -
Short-Term and Long-Term Debt - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | |||
Net amortization expenses of bond premiums and discounts, deferred issuance costs of bonds and medium-term notes | ¥ 1,085 | ¥ 367 | ¥ 618 |
Total committed credit lines | 464,677 | 475,553 | |
Available credit lines | 389,903 | 419,356 | |
Long-term committed credit lines | 380,062 | 274,980 | |
Due to affiliates | 184,950 | ||
Investment in Affiliates | 530,667 | ¥ 378,087 | |
Securities Pledged as Collateral | |||
Debt Instrument [Line Items] | |||
Investment in securities pledged for primarily collateral deposits | 25,808 | ||
Investment in Affiliates | ¥ 32,097 |
Short-Term and Long-Term Deb135
Short-Term and Long-Term Debt (Secured Assets for Short Term and Long Term Debt Payables to Financial Institutions) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Debt Disclosure [Line Items] | |
Minimum lease payments, loans and investment in operating leases | ¥ 106,118 |
Investment in securities | 177,266 |
Property under facility operations | 8,781 |
Other assets and other | 17,079 |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position, Total | ¥ 309,244 |
Deposits (Deposits) (Detail)
Deposits (Deposits) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Deposits From Banking Clients [Line Items] | ||
Time deposits | ¥ 1,093,238 | ¥ 1,028,977 |
Other deposits | 305,234 | 258,403 |
Total | ¥ 1,398,472 | ¥ 1,287,380 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Deposits From Banking Clients [Line Items] | ||
Time deposits, including certificates of deposit issued in amounts of 10 million Yen or more | ¥ 648,697 | ¥ 617,235 |
Deposits (Schedule of Time Depo
Deposits (Schedule of Time Deposits Maturity) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Deposits From Banking Clients [Line Items] | ||
2,017 | ¥ 633,451 | |
2,018 | 205,410 | |
2,019 | 121,611 | |
2,020 | 52,595 | |
2,021 | 80,171 | |
Total | ¥ 1,093,238 | ¥ 1,028,977 |
Income Taxes (Income before Inc
Income Taxes (Income before Income Taxes and Discontinued Operations, and Provision for Income Taxes) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||
Income Taxes [Line Items] | |||||
Income before income taxes and discontinued operations | ¥ 228,527 | ¥ 188,601 | ¥ 184,504 | ||
Income before income taxes and discontinued operations | 162,775 | 155,416 | 101,835 | ||
Income before income taxes and discontinued operations | 391,302 | 344,017 | [1] | 286,339 | [1] |
Current provision for income taxes | 77,784 | 47,719 | 46,209 | ||
Deferred provision for income taxes | 42,528 | 41,338 | 52,344 | ||
Provision for income taxes | 120,312 | 89,057 | 98,553 | ||
Japan | |||||
Income Taxes [Line Items] | |||||
Current provision for income taxes | 34,866 | 9,455 | 19,116 | ||
Deferred provision for income taxes | 34,315 | 36,112 | 49,419 | ||
Overseas | |||||
Income Taxes [Line Items] | |||||
Current provision for income taxes | 42,918 | 38,264 | 27,093 | ||
Deferred provision for income taxes | ¥ 8,213 | ¥ 5,226 | ¥ 2,925 | ||
[1] | Results of discontinued operations pre-tax are included in each amount attributed to each geographic area. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions | Mar. 29, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes [Line Items] | ||||
National corporation tax | 25.00% | 26.00% | 28.00% | |
Inhabitant tax | 4.00% | 5.00% | 5.00% | |
Deductible enterprise tax | 6.00% | 8.00% | 8.00% | |
Statutory income tax rate | 32.90% | 33.50% | 35.90% | 38.30% |
Decrease in provision for income taxes | ¥ 7,468 | ¥ 14,098 | ||
Increases in the valuation allowance | ¥ (12) | 1,819 | ||
Percentage of deductible limit of tax carried forward in taxable income | 65.00% | |||
Net changes in total valuation allowance | (7,295) | 19,945 | ¥ (11,739) | |
Increase in valuation allowance | 381 | 5,447 | 1,308 | |
Decrease in valuation allowance | 204 | 8,364 | 3,216 | |
Net changes in valuation allowance | 177 | ¥ (2,917) | ¥ (1,908) | |
Net operating loss carryforwards | ¥ 539,796 | |||
Amended | ||||
Income Taxes [Line Items] | ||||
Decrease in provision for income taxes | ¥ 12 | |||
Fiscal Years beginning April 1 ,2014 | ||||
Income Taxes [Line Items] | ||||
Statutory income tax rate | 38.30% | |||
From fiscal year beginning on April 1, 2015 | ||||
Income Taxes [Line Items] | ||||
Statutory income tax rate | 33.50% | |||
From fiscal years beginning on April 1, 2016 | ||||
Income Taxes [Line Items] | ||||
Statutory income tax rate | 31.70% | |||
Percentage of deductible limit of tax carried forward in taxable income | 60.00% | |||
From fiscal years beginning on April 1, 2016 | Maximum | ||||
Income Taxes [Line Items] | ||||
Percentage of deductible limit of tax carried forward in taxable income | 55.00% | |||
Tax loss carry-forward, period | 10 years | |||
From fiscal years beginning on April 1, 2016 | Minimum | ||||
Income Taxes [Line Items] | ||||
Tax loss carry-forward, period | 9 years | |||
Fiscal years beginning on April 1, 2017 | ||||
Income Taxes [Line Items] | ||||
Statutory income tax rate | 31.50% | |||
Tax loss carry-forward, period | 10 years | |||
Fiscal years beginning on April 1, 2018 | ||||
Income Taxes [Line Items] | ||||
Statutory income tax rate | 31.30% | |||
Percentage of deductible limit of tax carried forward in taxable income | 50.00% |
Income Taxes (Reconciliations o
Income Taxes (Reconciliations of Differences between Tax Provision Computed and Consolidated Provisions for Income Taxes) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Reconciliation of Provision of Income Taxes [Line Items] | ||||||
Income before income taxes and discontinued operations | ¥ 391,302 | ¥ 344,017 | [1] | ¥ 286,339 | [1] | |
Tax provision computed at statutory rate | 131,086 | 123,502 | 109,668 | |||
Increases (reductions) in taxes due to: | ||||||
Change in valuation allowance | [2] | (1,547) | 1,839 | (845) | ||
Non-deductible expenses for tax purposes | 2,277 | 3,513 | 2,382 | |||
Non-taxable income for tax purposes | (3,767) | (7,633) | (3,224) | |||
Effect of nontaxable bargain purchase gain | 0 | (12,953) | 0 | |||
Effect of lower tax rates on foreign subsidiaries and a domestic life insurance subsidiary | (3,593) | (8,766) | (5,805) | |||
Effect of the tax rate change related to the new Japanese tax law | (7,468) | (14,098) | (5,824) | |||
Other, net | 3,324 | 3,653 | 2,201 | |||
Provision for income taxes | ¥ 120,312 | ¥ 89,057 | ¥ 98,553 | |||
[1] | Results of discontinued operations pre-tax are included in each amount attributed to each geographic area. | |||||
[2] | In fiscal 2015 and 2016, increases in the valuation allowance of ¥1,819 million and decreases in the valuation allowance of ¥12 million due to the amendment to tax loss carryforward rules related to the new Japanese tax law are included in "Change in valuation allowance" in the table above. |
Income Taxes (Reconciliation142
Income Taxes (Reconciliations of Differences between Tax Provision Computed and Consolidated Provisions for Income Taxes) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of Provision of Income Taxes [Line Items] | ||
Increases/(Decrease) in the valuation allowance | ¥ (12) | ¥ 1,819 |
Income Taxes (Total Income Tax
Income Taxes (Total Income Tax Recognized) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes [Line Items] | |||
Provision for income taxes | ¥ 120,312 | ¥ 89,057 | ¥ 98,553 |
Income taxes on discontinued operations | 0 | 166 | 4,681 |
Income taxes on other comprehensive income (loss): | |||
Net unrealized gains (losses) on investment in securities | (6,003) | 6,915 | 5,304 |
Defined benefit pension plans | (2,954) | (4,045) | 1,456 |
Foreign currency translation adjustments | (2,921) | 6,880 | 1,756 |
Net unrealized gains (losses) on derivative instruments | (1,696) | (255) | 329 |
Direct adjustments to shareholders' equity | (2) | (734) | (101) |
Total income taxes | ¥ 106,736 | ¥ 97,984 | ¥ 111,978 |
Income Taxes (Tax Effects of Te
Income Taxes (Tax Effects of Temporary Differences Giving Rise to Deferred Tax Assets and Liabilities) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Assets: | ||
Net operating loss carryforwards | ¥ 72,994 | ¥ 91,899 |
Allowance for doubtful receivables on direct financing leases and probable loan losses | 12,883 | 20,170 |
Investment in securities | 15,306 | 11,128 |
Policy liabilities and policy account balances | 763 | 18,273 |
Accrued expenses | 25,537 | 30,352 |
Investment in operating leases | 16,814 | 18,470 |
Property under facility operations | 10,211 | 10,098 |
Installment loans | 8,640 | 6,487 |
Other | 49,393 | 50,961 |
Deferred Tax Assets, Gross, Total | 212,541 | 257,838 |
Less: valuation allowance | (43,220) | (50,515) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 169,321 | 207,323 |
Liabilities: | ||
Investment in direct financing leases | 10,471 | 6,342 |
Investment in operating leases | 90,074 | 89,411 |
Unrealized gains (losses) on investment in securities | 20,734 | 26,361 |
Deferred insurance policy acquisition costs | 35,894 | 28,494 |
Policy liabilities and policy account balances | 41,995 | 53,871 |
Property under facility operations | 9,256 | 2,221 |
Other intangible assets | 103,503 | 122,996 |
Undistributed earnings | 97,156 | 68,269 |
Prepaid benefit cost | 9,037 | 15,205 |
Other | 39,265 | 55,773 |
Deferred Tax Liabilities, Net, Total | 457,385 | 468,943 |
Net deferred tax liability | ¥ 288,064 | ¥ 261,620 |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Assets and Liabilities) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Other assets | ¥ 53,296 | ¥ 74,449 |
Income taxes: Deferred | 341,360 | 336,069 |
Net deferred tax liability | ¥ 288,064 | ¥ 261,620 |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards Expire Date) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Operating Loss Carryforwards [Line Items] | |
2,017 | ¥ 366 |
2,018 | 92,434 |
2,019 | 32,184 |
2,020 | 18,161 |
2,021 | 85,722 |
Thereafter | 279,902 |
Indefinite period | 31,027 |
Total | ¥ 539,796 |
Pension Plans (Funded Status of
Pension Plans (Funded Status of Defined Benefit Pension Plans) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | ¥ 86,793 | ¥ 82,859 | |
Service cost | 4,401 | 4,415 | ¥ 3,391 |
Interest cost | 995 | 1,159 | 1,139 |
Actuarial loss (gain) | 10,674 | (169) | |
Foreign currency exchange rate change | 0 | 0 | |
Benefits paid | (2,705) | (2,573) | |
Plan participant's contributions | 0 | 0 | |
Business combinations | 0 | 1,353 | |
Divestitures | (3,396) | (251) | |
Plan amendments | 268 | 0 | |
Benefit obligation at end of year | 97,030 | 86,793 | 82,859 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 115,864 | 104,844 | |
Actual return on plan assets | (2,043) | 10,200 | |
Employer contribution | 3,072 | 3,040 | |
Benefits paid | (2,227) | (2,136) | |
Plan participant's contributions | 0 | 0 | |
Business combinations | 0 | 0 | |
Divestitures | (1,610) | (84) | |
Foreign currency exchange rate change | 0 | 0 | |
Fair value of plan assets at end of year | 113,056 | 115,864 | 104,844 |
The funded status of the plans | 16,026 | 29,071 | |
Amount recognized in the consolidated balance sheets consists of: | |||
Prepaid benefit cost included in other assets | 28,848 | 42,376 | |
Accrued benefit liability included in other liabilities | (12,822) | (13,305) | |
Net amount recognized | 16,026 | 29,071 | |
Overseas Pension Plans Defined Benefit | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 110,521 | 68,840 | |
Service cost | 3,856 | 2,460 | 1,654 |
Interest cost | 1,747 | 2,251 | 1,684 |
Actuarial loss (gain) | (12,840) | 46,110 | |
Foreign currency exchange rate change | (2,262) | (6,947) | |
Benefits paid | (1,336) | (1,390) | |
Plan participant's contributions | 88 | 80 | |
Business combinations | 138 | 0 | |
Divestitures | 0 | 0 | |
Plan amendments | 0 | (883) | |
Benefit obligation at end of year | 99,912 | 110,521 | 68,840 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 87,009 | 62,042 | |
Actual return on plan assets | (109) | 21,074 | |
Employer contribution | 1,456 | 10,820 | |
Benefits paid | (1,265) | (1,296) | |
Plan participant's contributions | 88 | 80 | |
Business combinations | 0 | 0 | |
Divestitures | 0 | 0 | |
Foreign currency exchange rate change | (1,999) | (5,711) | |
Fair value of plan assets at end of year | 85,180 | 87,009 | ¥ 62,042 |
The funded status of the plans | (14,732) | (23,512) | |
Amount recognized in the consolidated balance sheets consists of: | |||
Prepaid benefit cost included in other assets | 0 | 8 | |
Accrued benefit liability included in other liabilities | (14,732) | (23,520) | |
Net amount recognized | ¥ (14,732) | ¥ (23,512) |
Pension Plans (Defined Benefit
Pension Plans (Defined Benefit Plan Amount Recognized in Accumulated Other Comprehensive Income (Loss), Pre-tax) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Domestic Pension Plans Of Foreign Entity Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net prior service credit | ¥ 4,110 | ¥ 5,127 |
Net actuarial loss | (25,125) | (9,602) |
Net transition obligation | (91) | (140) |
Total recognized in accumulated other comprehensive loss, pre-tax | (21,106) | (4,615) |
Overseas Pension Plans Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net prior service credit | 959 | 1,074 |
Net actuarial loss | (17,150) | (26,674) |
Net transition obligation | (14) | (19) |
Total recognized in accumulated other comprehensive loss, pre-tax | ¥ (16,205) | ¥ (25,619) |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated portions of net prior service credit that will be recognized as a component of net pension cost | ¥ (916) | ||
Estimated portions of net actuarial loss that will be recognized as a component of net pension cost | 936 | ||
Estimated portions of net transition obligation that will be recognized as a component of net pension | 45 | ||
Accumulated benefit obligations for all defined benefit pension plans | 86,744 | ¥ 79,178 | |
Aggregate projected benefit obligations for plans with accumulated benefit obligations in excess of plan assets | 19,351 | 21,279 | |
Aggregate accumulated benefit obligations for plans with accumulated benefit obligations in excess of plan assets | 18,822 | 21,061 | |
Aggregate fair values of plan assets for the plans with accumulated benefit obligations in excess of plan assets | 6,529 | 8,031 | |
Expected pension plans contributions by Company and certain subsidiaries | 3,127 | ||
Cost recognized for defined contribution pension plans of Company and certain of its subsidiaries | 1,350 | 1,248 | ¥ 1,044 |
Overseas Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated portions of net prior service credit that will be recognized as a component of net pension cost | (102) | ||
Estimated portions of net actuarial loss that will be recognized as a component of net pension cost | 663 | ||
Estimated portions of net transition obligation that will be recognized as a component of net pension | 3 | ||
Accumulated benefit obligations for all defined benefit pension plans | 89,425 | 98,634 | |
Aggregate projected benefit obligations for plans with accumulated benefit obligations in excess of plan assets | 99,715 | 110,498 | |
Aggregate accumulated benefit obligations for plans with accumulated benefit obligations in excess of plan assets | 89,407 | 98,621 | |
Aggregate fair values of plan assets for the plans with accumulated benefit obligations in excess of plan assets | 85,151 | 86,978 | |
Expected pension plans contributions by Company and certain subsidiaries | 1,577 | ||
Cost recognized for defined contribution pension plans of Company and certain of its subsidiaries | ¥ 2,926 | ¥ 2,526 | ¥ 1,560 |
Equity securities | Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Portfolio of plans | 30.00% | 30.00% | |
Equity securities | Overseas Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Portfolio of plans | 30.00% | 40.00% | |
Debt Securities | Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Portfolio of plans | 40.00% | 40.00% | |
Debt Securities | Overseas Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Portfolio of plans | 60.00% | 60.00% | |
Other Plan Asset | Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Portfolio of plans | 30.00% | 30.00% | |
Other Plan Asset | Overseas Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Portfolio of plans | 10.00% |
Pension Plans (Net Pension Cost
Pension Plans (Net Pension Cost of Defined Benefit Plans) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | ¥ 4,401 | ¥ 4,415 | ¥ 3,391 |
Interest cost | 995 | 1,159 | 1,139 |
Expected return on plan assets | (2,575) | (2,351) | (2,047) |
Amortization of prior service credit | (928) | (927) | (1,259) |
Amortization of net actuarial loss | (15) | 502 | 777 |
Amortization of transition obligation | 49 | 53 | 53 |
Net periodic pension cost | 1,927 | 2,851 | 2,054 |
Overseas Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3,856 | 2,460 | 1,654 |
Interest cost | 1,747 | 2,251 | 1,684 |
Expected return on plan assets | (4,584) | (3,857) | (2,389) |
Amortization of prior service credit | (113) | (51) | (3) |
Amortization of net actuarial loss | 1,336 | 215 | 60 |
Amortization of transition obligation | 3 | 5 | 3 |
Net periodic pension cost | ¥ 2,245 | ¥ 1,023 | ¥ 1,009 |
Pension Plans (Other Changes in
Pension Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial gain (loss) | ¥ (15,417) | ¥ 8,028 | ¥ 1,870 |
Amortization of net actuarial loss | (15) | 502 | 777 |
Prior service credit due to amendments | (88) | 0 | 743 |
Amortization of prior service credit | (928) | (927) | (1,259) |
Amortization of transition obligation | 49 | 53 | 53 |
Plan curtailments and settlements | (92) | 0 | 0 |
Total recognized in other comprehensive income (loss), pre-tax | (16,491) | 7,656 | 2,184 |
Overseas Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial gain (loss) | 7,881 | (28,730) | 2,447 |
Amortization of net actuarial loss | 1,336 | 215 | 60 |
Prior service credit due to amendments | 0 | 843 | 344 |
Amortization of prior service credit | (113) | (51) | (3) |
Amortization of transition obligation | 3 | 5 | 3 |
Foreign currency exchange rate change | 307 | 1,065 | (7) |
Total recognized in other comprehensive income (loss), pre-tax | ¥ 9,414 | ¥ (26,653) | ¥ 2,844 |
Pension Plans (Significant Assu
Pension Plans (Significant Assumptions of Japan and Overseas Pension Plans Used to Determine Plan Amounts) (Detail) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Domestic Pension Plans Of Foreign Entity Defined Benefit | |||
Weighted-average assumptions used to determine benefit obligations at March 31: | |||
Discount rate | 0.70% | 1.20% | 1.40% |
Rate of increase in compensation levels | 4.40% | 4.80% | 5.10% |
Weighted-average assumptions used to determine net periodic pension cost for years ended March 31: | |||
Discount rate | 1.20% | 1.40% | 1.80% |
Rate of increase in compensation levels | 4.80% | 5.10% | 6.00% |
Expected long-term rate of return on plan assets | 2.30% | 2.30% | 2.20% |
Overseas Pension Plans Defined Benefit | |||
Weighted-average assumptions used to determine benefit obligations at March 31: | |||
Discount rate | 1.90% | 1.50% | 3.50% |
Rate of increase in compensation levels | 2.80% | 2.80% | 2.80% |
Weighted-average assumptions used to determine net periodic pension cost for years ended March 31: | |||
Discount rate | 1.50% | 3.50% | 4.30% |
Rate of increase in compensation levels | 2.80% | 2.80% | 0.60% |
Expected long-term rate of return on plan assets | 5.50% | 5.20% | 5.60% |
Pension Plans (Fair Value of Pe
Pension Plans (Fair Value of Pension Plan Assets by Asset Category) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | ¥ 113,056 | ¥ 115,864 | ¥ 104,844 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 113,056 | 115,864 | ||||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 15,663 | [1] | 16,572 | [2] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 17,829 | 19,717 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 1 | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | [1] | 0 | [2] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 1 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 0 | 0 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 2 | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 15,663 | [1] | 16,572 | [2] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 2 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 17,829 | 19,717 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 3 | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | [1] | 0 | [2] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 3 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 0 | 0 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 22,324 | [4] | 29,106 | [5] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [6] | 21,760 | 16,933 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Level 1 | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | [4] | 0 | [5] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Level 1 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [6] | 0 | 0 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Level 2 | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 22,324 | [4] | 29,106 | [5] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Level 2 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [6] | 21,760 | 16,933 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Level 3 | Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | [4] | 0 | [5] | ||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Debt Securities | Pooled Debt Securities Funds | Level 3 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [6] | 0 | 0 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 26,300 | 23,395 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 0 | 0 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 26,300 | 23,395 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 0 | 0 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Other Investment | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | 9,180 | 10,141 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Other Investment | Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | 0 | 0 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Other Investment | Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | 9,180 | 10,141 | |||
Domestic Pension Plans Of Foreign Entity Defined Benefit | Other Plan Asset | Other Investment | Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | 0 | 0 | |||
Overseas Pension Plans Defined Benefit | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 85,180 | 87,009 | ¥ 62,042 | |||
Overseas Pension Plans Defined Benefit | Total Fixed Maturities and Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 85,180 | |||||
Overseas Pension Plans Defined Benefit | Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 75,745 | 81,168 | ||||
Overseas Pension Plans Defined Benefit | Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 9,435 | 5,841 | ||||
Overseas Pension Plans Defined Benefit | Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Equity securities | Pooled Equity Securities Funds | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 64 | 70 | |||
Overseas Pension Plans Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 1 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 0 | 0 | |||
Overseas Pension Plans Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 2 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 64 | 70 | |||
Overseas Pension Plans Defined Benefit | Equity securities | Pooled Equity Securities Funds | Level 3 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [3] | 0 | 0 | |||
Overseas Pension Plans Defined Benefit | Equity securities | Shares | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 29,367 | 33,001 | ||||
Overseas Pension Plans Defined Benefit | Equity securities | Shares | Level 1 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 29,367 | 33,001 | ||||
Overseas Pension Plans Defined Benefit | Equity securities | Shares | Level 2 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Equity securities | Shares | Level 3 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Government Bonds | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 46,280 | 27,853 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Government Bonds | Level 1 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 46,280 | 27,853 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Government Bonds | Level 2 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Government Bonds | Level 3 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Municipal Bonds | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 4,885 | 4,855 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Municipal Bonds | Level 1 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Municipal Bonds | Level 2 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 4,885 | 4,855 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Municipal Bonds | Level 3 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Corporate Bonds | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 98 | 20,314 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Corporate Bonds | Level 1 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 98 | 20,314 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Corporate Bonds | Level 2 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Debt Securities | Corporate Bonds | Level 3 | Overseas | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | 0 | 0 | ||||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 2,520 | 196 | |||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 0 | 0 | |||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 2,520 | 196 | |||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Life Insurance Company General Accounts | Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [7] | 0 | 0 | |||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Other Investment | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | 1,966 | 720 | |||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Other Investment | Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | 0 | 0 | |||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Other Investment | Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | 1,966 | 720 | |||
Overseas Pension Plans Defined Benefit | Other Plan Asset | Other Investment | Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of pension plan assets | [8] | ¥ 0 | ¥ 0 | |||
[1] | These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥42 million at March 31, 2016. | |||||
[2] | These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥39 million and units of ORIX JREIT Inc. in the amounts of ¥277 million at March 31, 2015. | |||||
[3] | These funds invest in listed shares. | |||||
[4] | These funds invest approximately 70% in Japanese government bonds, approximately 10% in Japanese municipal bonds, and approximately 20% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥948 million at March 31, 2016. | |||||
[5] | These funds invest approximately 70% in Japanese government bonds, approximately 10% in Japanese municipal bonds, and approximately 20% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥23 million and investment corporation bonds of ORIX JREIT Inc. in the amounts of ¥16 million at March 31, 2015. | |||||
[6] | These funds invest entirely in foreign government bonds. | |||||
[7] | Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts. | |||||
[8] | Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments. |
Pension Plans (Fair Value of154
Pension Plans (Fair Value of Pension Plan Assets by Asset Category) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Japanese Companies Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | ¥ 42 | |
Japanese Companies Equity Securities | ORIX Corporation | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | ¥ 39 | |
Japanese Companies Equity Securities | ORIX JREIT Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | ¥ 277 | |
Japanese Government Bond Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets investment allocation in pooled funds | 70.00% | 70.00% |
Japanese Municipal Bonds Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets investment allocation in pooled funds | 10.00% | 10.00% |
Japanese Corporate Bonds Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | ¥ 948 | ¥ 23 |
Pension plan assets investment allocation in pooled funds | 20.00% | 20.00% |
Japanese Corporate Bonds Securities | ORIX JREIT Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | ¥ 16 |
Pension Plans (Benefits Expecte
Pension Plans (Benefits Expected to be Paid) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Domestic Pension Plans Of Foreign Entity Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | ¥ 2,159 |
2,018 | 1,785 |
2,019 | 1,916 |
2,020 | 2,060 |
2,021 | 2,165 |
2022-2026 | 14,055 |
Total | 24,140 |
Overseas Pension Plans Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1,488 |
2,018 | 1,239 |
2,019 | 1,301 |
2,020 | 1,334 |
2,021 | 1,330 |
2022-2026 | 7,757 |
Total | ¥ 14,449 |
Redeemable Noncontrolling In156
Redeemable Noncontrolling Interests (Changes in Redeemable Noncontrolling Interests) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Beginning Balance | ¥ 66,901 | ¥ 53,177 | ¥ 41,621 |
Adjustment of redeemable noncontrolling interests to redemption value | (7,557) | 220 | 2,851 |
Contribution to subsidiary | 0 | 0 | 413 |
Transaction with noncontrolling interests | (3,606) | 2,269 | 1,309 |
Comprehensive income | |||
Net Income | 819 | 4,970 | 4,108 |
Other comprehensive income | |||
Net change of foreign currency translation adjustments | 919 | 9,295 | 4,099 |
Total other comprehensive income | 919 | 9,295 | 4,099 |
Comprehensive income | 1,738 | 14,265 | 8,207 |
Cash dividends | (11,272) | (3,030) | (1,224) |
Property dividends | (3,776) | 0 | 0 |
Partial sale of the parent's ownership interest in subsidiaries that results in the loss of control | (34,961) | 0 | 0 |
Ending Balance | ¥ 7,467 | ¥ 66,901 | ¥ 53,177 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | Apr. 01, 2013 | Mar. 31, 2016JPY (¥)Point | Mar. 31, 2015JPY (¥) | Mar. 31, 2014JPY (¥) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash received from the exercise of stock options | ¥ 822,000,000 | ¥ 1,014,000,000 | ¥ 863,000,000 | |
Unrecognized compensation costs | 0 | |||
Stock split implemented | 10 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value of options exercised | 39,000,000 | 378,000,000 | 403,000,000 | |
Stock-based compensation costs recognized | ¥ 0 | 0 | 0 | |
Stock Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average vesting period | 1 year 9 months | |||
Weighted average exercise period | 9 years 9 months 29 days | |||
Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average vesting period | 1 year 11 months 1 day | |||
Weighted average exercise period | 9 years 11 months 1 day | |||
Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Points granted | Point | 342,500 | |||
Points settled for individuals retired | Point | 457,583 | |||
Points outstanding | Point | 1,642,959 | |||
Stock-based compensation costs recognized | ¥ 646,000,000 | ¥ 818,000,000 | ¥ 609,000,000 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Information Related to Stock Acquisition Rights) (Detail) - ¥ / shares | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2009 | Mar. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares Initially granted | 18,000,000 | ||
Stock Options Fiscal 2006 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period, range start | Jun. 22, 2007 | ||
Exercise period, range end | Jun. 21, 2015 | ||
Number of shares Initially granted | [1] | 4,774,000 | |
Exercise Price | [1] | ¥ 1,891 | |
Stock Options Fiscal 2007 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period, range start | Jun. 21, 2008 | ||
Exercise period, range end | Jun. 20, 2016 | ||
Number of shares Initially granted | [1] | 1,942,000 | |
Exercise Price | [1] | ¥ 2,962 | |
Stock Options Fiscal 2008 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period, range start | Jul. 5, 2009 | ||
Exercise period, range end | Jun. 22, 2017 | ||
Number of shares Initially granted | [1] | 1,449,800 | |
Exercise Price | [1] | ¥ 3,101 | |
Stock Options Fiscal 2009 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period, range start | Jul. 18, 2010 | ||
Exercise period, range end | Jun. 24, 2018 | ||
Number of shares Initially granted | [1] | 1,479,000 | |
Exercise Price | [1] | ¥ 1,689 | |
[1] | The number of shares and exercise price of the granted options were adjusted for the 10-for-1 stock split implemented on April 1, 2013. |
Stock-Based Compensation (Su159
Stock-Based Compensation (Summary of Information Related to Stock Acquisition Rights) (Parenthetical) (Detail) | Apr. 01, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock split implemented | 10 |
Stock-Based Compensation (Su160
Stock-Based Compensation (Summary of Information about Stock Options Activity) (Detail) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016JPY (¥)¥ / sharesshares | ||
Number of shares | ||
Outstanding at beginning of the year | shares | 6,347,200 | [1] |
Exercised | shares | (414,300) | [1] |
Forfeited or expired | shares | (2,852,400) | [1] |
Outstanding at end of year | shares | 3,080,500 | [1] |
Exercisable at end of year | shares | 3,080,500 | [1] |
Weighted average exercise price | ||
Outstanding at beginning of the year | ¥ / shares | ¥ 2,281 | [1],[2] |
Exercised | ¥ / shares | 1,835 | [1],[2] |
Forfeited or expired | ¥ / shares | 1,989 | [1],[2] |
Outstanding at end of year | ¥ / shares | 2,612 | [1],[2] |
Exercisable at end of year | ¥ / shares | ¥ 2,612 | [1],[2] |
Weighted average remaining contractual life | ||
Outstanding at end of year | 1 year 29 days | |
Exercisable at end of year | 1 year 29 days | |
Aggregate intrinsic value | ||
Outstanding at end of year | ¥ | ¥ 0 | |
Exercisable at end of year | ¥ | ¥ 0 | |
[1] | The number of shares and exercise price of the granted options were adjusted for the 10-for-1 stock split implemented on April 1, 2013. | |
[2] | The exercise price of the granted options was adjusted in July 2009 for the issuance of new 18 million shares. |
Stock-Based Compensation (Su161
Stock-Based Compensation (Summary of Information about Stock Options Activity) (Parenthetical) (Detail) shares in Millions | Apr. 01, 2013 | Jul. 31, 2009shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted options, issuance of new shares | 18 | |
Stock split implemented | 10 |
Accumulated Other Comprehens162
Accumulated Other Comprehensive income (Loss) (Changes in Components of Accumulated Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Beginning Balance | ¥ 30,373 | ¥ 38 | ¥ (36,263) |
Net unrealized gains on investment in securities, net of tax of ¥(9,529) million in 2014 , ¥(15416) million in 2015 and ¥(3,579) million in 2016 | 14,593 | 34,914 | 18,566 |
Reclassification adjustment included in net income, net of tax of ¥4255 million in 2014, ¥8501 million in 2015 and ¥(9582) million in 2016 | (17,714) | (25,047) | (7,963) |
Defined benefit pension plans, net of tax of ¥(1547) million in 2014, ¥3960 million in 2015 and ¥(2969) million in 2016 | (4,440) | (14,834) | 3,848 |
Reclassification adjustment included in net income, net of tax of ¥91 million in 2014, ¥85 million in 2015 and ¥(15) million in 2016 | 317 | (118) | (278) |
Foreign currency translation adjustments, net of tax of ¥1739 million in 2014, ¥(7000) million in 2015 and ¥(2921) million in 2016 | (27,763) | 38,309 | 35,425 |
Reclassification adjustment included in net income, net of tax of ¥17 million in 2014, ¥120 million in 2015 and ¥(0) million in 2016 | 806 | (1,154) | 1,503 |
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(31) million in 2014, ¥971 million in 2015 and ¥2037 million in 2016 | (4,901) | (2,985) | 572 |
Reclassification adjustment included in net income, net of tax of ¥ (298) million in 2014, ¥ (716) million in 2015 and ¥(341) million in 2016 | 838 | 2,424 | 915 |
Total other comprehensive income (loss) | (38,264) | 31,509 | 52,588 |
Transaction with noncontrolling interests | 96 | ||
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | (2,588) | (8,025) | 12,188 |
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests | 919 | 9,295 | 4,099 |
Ending Balance | (6,222) | 30,373 | 38 |
Net unrealized gains (losses) on investment in securities | |||
Beginning Balance | 50,330 | 38,651 | 28,974 |
Net unrealized gains on investment in securities, net of tax of ¥(9,529) million in 2014 , ¥(15416) million in 2015 and ¥(3,579) million in 2016 | 14,593 | 34,914 | 18,566 |
Reclassification adjustment included in net income, net of tax of ¥4255 million in 2014, ¥8501 million in 2015 and ¥(9582) million in 2016 | (17,714) | (25,047) | (7,963) |
Total other comprehensive income (loss) | (3,121) | 9,867 | 10,603 |
Transaction with noncontrolling interests | 0 | ||
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | 24 | (1,812) | 926 |
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests | 0 | 0 | 0 |
Ending Balance | 47,185 | 50,330 | 38,651 |
Defined benefit pension plans | |||
Beginning Balance | (19,448) | (6,230) | (9,587) |
Defined benefit pension plans, net of tax of ¥(1547) million in 2014, ¥3960 million in 2015 and ¥(2969) million in 2016 | (4,440) | (14,834) | 3,848 |
Reclassification adjustment included in net income, net of tax of ¥91 million in 2014, ¥85 million in 2015 and ¥(15) million in 2016 | 317 | (118) | (278) |
Total other comprehensive income (loss) | (4,123) | (14,952) | 3,570 |
Transaction with noncontrolling interests | 0 | ||
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | 313 | (1,734) | 213 |
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests | 0 | 0 | 0 |
Ending Balance | (23,884) | (19,448) | (6,230) |
Foreign currency translation adjustments | |||
Beginning Balance | 431 | (31,949) | (53,759) |
Foreign currency translation adjustments, net of tax of ¥1739 million in 2014, ¥(7000) million in 2015 and ¥(2921) million in 2016 | (27,763) | 38,309 | 35,425 |
Reclassification adjustment included in net income, net of tax of ¥17 million in 2014, ¥120 million in 2015 and ¥(0) million in 2016 | 806 | (1,154) | 1,503 |
Total other comprehensive income (loss) | (26,957) | 37,155 | 36,928 |
Transaction with noncontrolling interests | 96 | ||
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | (2,679) | (4,424) | 11,019 |
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests | 919 | 9,295 | 4,099 |
Ending Balance | (24,766) | 431 | (31,949) |
Net unrealized gains (losses) on derivative instruments | |||
Beginning Balance | (940) | (434) | (1,891) |
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(31) million in 2014, ¥971 million in 2015 and ¥2037 million in 2016 | (4,901) | (2,985) | 572 |
Reclassification adjustment included in net income, net of tax of ¥ (298) million in 2014, ¥ (716) million in 2015 and ¥(341) million in 2016 | 838 | 2,424 | 915 |
Total other comprehensive income (loss) | (4,063) | (561) | 1,487 |
Transaction with noncontrolling interests | 0 | ||
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | (246) | (55) | 30 |
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests | 0 | 0 | 0 |
Ending Balance | ¥ (4,757) | ¥ (940) | ¥ (434) |
Accumulated Other Comprehens163
Accumulated Other Comprehensive income (Loss) (Changes in Components of Accumulated Other Comprehensive Income (Loss)) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net unrealized gains on investment in securities, tax | ¥ (3,579) | ¥ 15,416 | ¥ (9,529) |
Reclassification adjustment included in net income, tax | 9,582 | 8,501 | 4,225 |
Defined benefit pension plans, tax | 2,969 | 3,960 | 1,547 |
Reclassification adjustment included in net income, tax | (15) | 85 | 91 |
Foreign currency translation adjustments, tax | (2,921) | 7,000 | 1,739 |
Reclassification adjustment included in net income, tax | 0 | 120 | 17 |
Net unrealized gains (losses) on investment in securities, tax | 2,037 | 971 | (31) |
Reclassification adjustment included in net income, tax | ¥ (341) | ¥ (716) | ¥ (298) |
Accumulated Other Comprehens164
Accumulated Other Comprehensive income (Loss) (Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (loss)) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | ¥ 57,867 | ¥ 20,575 | ¥ 64,923 |
Life insurance premiums and related investment income | 189,421 | 351,493 | 155,406 |
Finance revenues | 200,889 | 186,883 | 191,700 |
Write-downs of securities and other | (4,515) | (8,997) | (7,989) |
Income before Income Taxes and Discontinued Operations | 391,302 | 344,017 | 286,339 |
Tax expenses or benefits | (120,312) | (89,057) | (98,553) |
Net Income | 270,990 | 255,257 | 195,287 |
Other (income) and expense, net | 3,729 | (23,674) | 21,001 |
Net unrealized gains (losses) on derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income | (838) | (2,424) | (915) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on investment in securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gains on investment securities and dividends | 10,902 | ||
Brokerage commissions and net gains on investment securities | 25,673 | 32,733 | |
Interest on loans and investment securities | (182) | 29 | |
Finance revenues | 858 | ||
Write-downs of securities and other | (3,064) | (2,853) | (2,302) |
Income before Income Taxes and Discontinued Operations | 27,296 | 33,548 | 12,188 |
Tax expenses or benefits | (9,582) | (8,501) | (4,225) |
Net Income | 17,714 | 25,047 | 7,963 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on investment in securities | Sale of Investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Life insurance premiums and related investment income | 6,453 | 5,599 | 3,262 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on investment in securities | Amortization of investment securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Life insurance premiums and related investment income | (1,584) | (1,960) | (532) |
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension plans | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of prior service credit | 1,041 | 978 | 1,262 |
Amortization of net actuarial loss | (1,321) | (717) | (837) |
Amortization of transition obligation | (52) | (58) | (56) |
Income before Income Taxes and Discontinued Operations | (332) | 203 | 369 |
Tax expenses or benefits | 15 | (85) | (91) |
Net Income | (317) | 118 | 278 |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | (806) | 1,274 | (1,520) |
Income before Income Taxes and Discontinued Operations | (806) | 1,274 | (1,520) |
Tax expenses or benefits | 0 | (120) | 17 |
Net Income | (806) | 1,154 | (1,503) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before Income Taxes and Discontinued Operations | (1,179) | (3,140) | (1,213) |
Tax expenses or benefits | 341 | 716 | 298 |
Net Income | (838) | (2,424) | (915) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | Interest rate swap agreements | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Finance revenues/Interest expense | (27) | 32 | 39 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other (income) and expense, net | 773 | ||
Foreign currency transaction loss | 2,608 | 1,356 | |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | Foreign currency swap agreements | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Finance revenues/Interest expense | ¥ (3,760) | ||
Finance revenues/Interest expense/Other (income) and expense, net | ¥ (4,528) | ¥ (2,025) |
ORIX Corporation Shareholder165
ORIX Corporation Shareholders' Equity (Changes in Number of Shares Issued) (Detail) - shares | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Stockholders Equity Note [Line Items] | ||||
Beginning balance | 1,323,644,528 | |||
Exercise of stock options | [1] | 414,300 | ||
Ending balance | 1,324,058,828 | 1,323,644,528 | ||
Common Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Beginning balance | 1,323,644,528 | 1,322,777,628 | 1,248,714,760 | |
Exercise of stock options | 414,300 | 866,900 | 804,300 | |
Conversion of convertible bonds | 0 | 0 | 73,258,568 | |
Ending balance | 1,324,058,828 | 1,323,644,528 | 1,322,777,628 | |
[1] | The number of shares and exercise price of the granted options were adjusted for the 10-for-1 stock split implemented on April 1, 2013. |
ORIX Corporation Shareholder166
ORIX Corporation Shareholders' Equity - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Class of Stock [Line Items] | |||
Dividends to be distributed to shareholders | ¥ 31,141 | ||
Declared date of dividends to be distributed to shareholders | 2016-05 | ||
Record date of dividends to be distributed to shareholders | Mar. 31, 2016 | ||
Amount available for dividends under the Japanese Companies Act | ¥ 567,647 | ||
Equity in undistributed earnings of the companies accounted for by the equity method | 45,694 | ¥ 30,531 | ¥ 18,368 |
Restricted net assets of certain subsidiaries which include regulatory capital requirements for life insurance and banking operations | ¥ 23,294 | ||
Maximum | |||
Class of Stock [Line Items] | |||
Restricted net assets of certain subsidiaries which include regulatory capital requirements for life insurance and banking operations | 25.00% | ||
Retained Earnings | |||
Class of Stock [Line Items] | |||
Equity in undistributed earnings of the companies accounted for by the equity method | ¥ 47,949 |
Gains on Investment Securiti167
Gains on Investment Securities and Dividends (Gains on Investment Securities and Dividends) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net Investment Income [Line Items] | |||
Net gains on investment securities | ¥ 31,134 | ¥ 50,617 | ¥ 19,412 |
Dividends income, other | 4,652 | 5,778 | 7,769 |
Gains on investment securities and dividends | ¥ 35,786 | ¥ 56,395 | ¥ 27,181 |
Gains on Investment Securiti168
Gains on Investment Securities and Dividends - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net Investment Income [Line Items] | |||
Net trading gains (losses) | ¥ 892 | ¥ 2,843 | ¥ (3,208) |
Life Insurance Operations (Life
Life Insurance Operations (Life Insurance Premiums and Related Investment Income) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net Investment Income [Line Items] | |||
Life insurance premiums | ¥ 209,120 | ¥ 186,547 | ¥ 145,464 |
Life insurance related investment income (loss) | (19,699) | 164,946 | 9,942 |
Life insurance premiums and related investment income | ¥ 189,421 | ¥ 351,493 | ¥ 155,406 |
Life Insurance Operations (Rein
Life Insurance Operations (Reinsurance Benefits and Reinsurance Premiums Included in Life Insurance Premiums) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Investment Income [Line Items] | ||
Reinsurance benefits | ¥ 2,298 | ¥ 2,438 |
Reinsurance premiums | ¥ (11,530) | ¥ (11,430) |
Life Insurance Operations - Add
Life Insurance Operations - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net Investment Income [Line Items] | |||
Amortization of policy acquisition costs charged to income | ¥ 12,585 | ¥ 11,917 | ¥ 9,701 |
Life Insurance Operations (Gain
Life Insurance Operations (Gains or Losses Relating to Variable Annuity and Variable Life Insurance Contracts) (Detail) - Variable Annuity and Variable Life Insurance Contracts - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Life insurance premiums and related investment income | ||
Net realized and unrealized gains or losses from investment assets | ¥ (33,318) | ¥ 174,602 |
Net gains or losses from derivative contracts | 1,633 | (28,227) |
Life insurance costs | ||
Changes in the fair value of the policy liabilities and policy account balances | (459,482) | (510,961) |
Insurance costs recognized for insurance and annuity payouts as a result of insured events | 418,731 | 611,663 |
Changes in the fair value of the reinsurance contracts | (1,817) | 36,072 |
Foreign exchange contracts | ||
Life insurance premiums and related investment income | ||
Net gains or losses from derivative contracts | 496 | (1,680) |
Futures | ||
Life insurance premiums and related investment income | ||
Net gains or losses from derivative contracts | 1,116 | (10,216) |
Options held | ||
Life insurance premiums and related investment income | ||
Net gains or losses from derivative contracts | ¥ 21 | ¥ (16,331) |
Sales of Goods and Real Esta173
Sales of Goods and Real Estate (Schedule of Information about Sales of Goods and Real Estate and Costs of Goods and Real Estate Sold) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Information about Sales of Goods and Real Estate and Costs of Goods and Real Estate Sold [Line Items] | |||
Sales of goods | ¥ 707,502 | ¥ 352,228 | ¥ 125,808 |
Real estate sales | 126,508 | 98,641 | 54,076 |
Sales of goods and real estate | 834,010 | 450,869 | 179,884 |
Costs of goods sold | 641,715 | 308,723 | 107,047 |
Costs of real estate sold | 106,544 | 93,298 | 55,942 |
Costs of goods and real estate sold | ¥ 748,259 | ¥ 402,021 | ¥ 162,989 |
Services Income and Services174
Services Income and Services Expense (Services Income and Services Expense) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Product Information [Line Items] | |||
Revenues from asset management and servicing | ¥ 201,470 | ¥ 214,372 | ¥ 126,492 |
Revenues from automobile related business | 76,134 | 70,442 | 63,072 |
Revenues from facilities management related business | 106,632 | 115,177 | 111,228 |
Revenues from environment and energy related business | 85,271 | 62,286 | 49,552 |
Revenues from real estate management and contract work | 174,170 | 171,562 | 28,243 |
Revenues from commissions for M&A advisory services, financing advice, financial restructuring advisory services and related services | 22,983 | 78,342 | 58,892 |
Other | 68,526 | 53,367 | 53,036 |
Services income | 735,186 | 765,548 | 490,515 |
Expenses from asset management and servicing | 55,283 | 52,825 | 36,150 |
Expenses from automobile related business | 46,424 | 43,163 | 39,767 |
Expenses from facilities management related business | 90,949 | 99,582 | 93,521 |
Expenses from environment and energy related business | 68,888 | 51,436 | 41,712 |
Expenses from real estate management and contract work | 156,075 | 152,447 | 22,626 |
Other | 27,768 | 26,223 | 26,502 |
Services expense | ¥ 445,387 | ¥ 425,676 | ¥ 260,278 |
Write-Downs of Long-Lived As175
Write-Downs of Long-Lived Assets - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016JPY (¥)Location | Mar. 31, 2015JPY (¥)Location | Mar. 31, 2014JPY (¥)Location | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 13,448 | ¥ 34,887 | ¥ 26,742 |
Write-downs of long-lived assets | 13,448 | 34,887 | 23,421 |
Asset Held For Sale | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 2,547 | ||
Land Undeveloped Or Under Construction Held for Sale | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 22 | 586 | 713 |
Land Undeveloped Or Under Construction | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 2,797 | 3,787 | |
Property, Plant and Equipment, Other Types | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 13,074 | 9,005 | |
Building used for training facility in facilities operation business | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 5,052 | ||
Information-related equipment in rental operation | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 1,292 | ||
Golf Course Land Improvements | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 7,737 | ||
Office Buildings | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 5,855 | ¥ 9,172 | ¥ 3,582 |
Number of impaired assets | Location | 6 | 6 | 2 |
Impairment loss due to change in use | ¥ 4,109 | ||
Office Building Held for Sale | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 2,183 | ¥ 4,805 | ¥ 1,445 |
Number of impaired assets | Location | 5 | 3 | 5 |
Condominiums Held for Sale | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 780 | ¥ 988 | |
Number of impaired assets | Location | 1 | 1 | |
Condominiums | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 621 | ||
Number of impaired assets | Location | 1 | ||
Commercial Facilities Other Than Office Buildings | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 1,559 | ¥ 3,832 | ¥ 2,976 |
Number of impaired assets | Location | 3 | 3 | 2 |
Commercial Facilities Other Than Office Buildings Held for Sale | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 502 | ¥ 137 | |
Number of impaired assets | Location | 2 | 1 | |
Aircraft | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | ¥ 2,338 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||
Discontinued Operations [Line Items] | |||||
Gains (losses) on sales of subsidiaries and liquidation losses, net | ¥ 0 | ¥ 463 | [1] | ¥ 12,182 | [1] |
Gains on sales of operateing lease assets | 38,340 | 34,425 | 23,692 | ||
Income from discontinued operations | 0 | 297 | 7,501 | ||
Subsidiary Operated Hotel | Discontinued Operations, Disposed of by Means Other than Sale, Abandonment | |||||
Discontinued Operations [Line Items] | |||||
Gains (losses) on sales of subsidiaries and liquidation losses, net | (1,600) | ||||
Subsidiary Food Business Unit | Discontinued Operations, Disposed of by Sale | |||||
Discontinued Operations [Line Items] | |||||
Gains (losses) on sales of subsidiaries and liquidation losses, net | 463 | ||||
Assets | 0 | 0 | |||
Liabilities | 0 | 0 | |||
Real Estate Properties Including Commercial and Office Buildings | |||||
Discontinued Operations [Line Items] | |||||
Gains on sales of operateing lease assets | 0 | 0 | ¥ 16,200 | ||
Real Estate Properties Including Commercial and Office Buildings | Discontinued Operations, Held-for-sale [Member] | |||||
Discontinued Operations [Line Items] | |||||
Investment in operating leases | 24,619 | ||||
Property under facility operations | 2,873 | ||||
Other assets | ¥ 689 | ||||
Real estate properties and transportation equipment | Discontinued Operations, Held-for-sale [Member] | |||||
Discontinued Operations [Line Items] | |||||
Investment in operating leases | 70,300 | ||||
Property under facility operations | 2,811 | ||||
Other assets | ¥ 9,959 | ||||
[1] | Income from discontinued operations, net includes aggregate gains on sales of subsidiaries, business units and rental properties and liquidation on losses. The amount of such gains or losses in fiscal 2014 and 2015 were net gain of ¥14,600 million and ¥362 million, respectively. |
Discontinued Operations (Discon
Discontinued Operations (Discontinued Operations) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||
Discontinued Operations [Line Items] | |||||
Revenues | ¥ 2,214 | ¥ 26,607 | |||
Income from discontinued operations, net | ¥ 0 | 463 | [1] | 12,182 | [1] |
Provision for income taxes | 0 | (166) | (4,681) | ||
Discontinued operations, net of applicable tax effect | ¥ 0 | ¥ 297 | ¥ 7,501 | ||
[1] | Income from discontinued operations, net includes aggregate gains on sales of subsidiaries, business units and rental properties and liquidation on losses. The amount of such gains or losses in fiscal 2014 and 2015 were net gain of ¥14,600 million and ¥362 million, respectively. |
Discontinued Operations (Dis178
Discontinued Operations (Discontinued Operations) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Discontinued Operations [Line Items] | ||
Income from discontinued operations, aggregate gains on sales and liquidation of subsidiaries, business units, and rental properties | ¥ 362 | ¥ 14,600 |
Per Share Data - Additional Inf
Per Share Data - Additional Information (Detail) - shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Officer's Compensation Board Incentive Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of shares held for incentive plans, to be deducted in calculation of the weighted-average shares for EPS computation | 1,984,512 | 1,159,738 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from calculation of diluted EPS | 4,370,000 | 6,499,000 | 6,815,000 |
Per Share Data (Reconciliation
Per Share Data (Reconciliation of Differences Between Basic and Diluted Earnings Per Share (EPS)) (Detail) - JPY (¥) ¥ / shares in Units, shares in Thousands, ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Income attributable to ORIX Corporation shareholders from continuing operations | ¥ 260,169 | ¥ 234,651 | ¥ 180,069 |
Effect of dilutive securities | |||
Expense related to convertible bond | 0 | 0 | 265 |
Income from continuing operations for diluted EPS computation | ¥ 260,169 | ¥ 234,651 | ¥ 180,334 |
Weighted-average shares | 1,309,136 | 1,309,144 | 1,268,081 |
Effect of dilutive securities | |||
Conversion of convertible bond | 0 | 0 | 40,057 |
Exercise of stock options | 1,377 | 1,865 | 2,117 |
Weighted-average shares for diluted EPS computation | 1,310,513 | 1,311,009 | 1,310,255 |
Earnings per share for income attributable to ORIX Corporation shareholders from continuing operations: | |||
Basic | ¥ 198.73 | ¥ 179.24 | ¥ 142 |
Diluted | ¥ 198.52 | ¥ 178.99 | ¥ 137.63 |
Derivative Financial Instrum181
Derivative Financial Instruments and Hedging - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Income | ¥ 270,990 | ¥ 255,257 | ¥ 195,287 |
Net derivative gains included in accumulated other comprehensive income (loss), that will be reclassified into earnings within fiscal 2017 | 1,465 | ||
Net gains (losses) on cash flow hedges, ineffectiveness | 111 | 510 | (269) |
Net gains (losses) on fair value hedges, ineffectiveness | 1 | 21 | (20) |
Net unrealized gains (losses) on derivative instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Income | ¥ (838) | ¥ (2,424) | ¥ (915) |
Derivative Financial Instrum182
Derivative Financial Instruments and Hedging (Effect of Derivative Instruments on Consolidated Statement of Income, Pre-tax) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||
Fair value hedges | Interest rate swap agreements | Finance revenues/Interest expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | ¥ (608) | ¥ (1,298) | |||
Gains (losses) recognized in income on hedged item | 608 | 1,318 | |||
Fair value hedges | Foreign exchange contracts | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | 24,746 | (26,863) | |||
Gains (losses) recognized in income on hedged item | (24,746) | 26,863 | |||
Fair value hedges | Foreign currency swap agreements | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | 3,261 | (3,398) | |||
Gains (losses) recognized in income on hedged item | (3,260) | 3,399 | |||
Fair value hedges | Foreign currency long- term-debt | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | 1,648 | (1,551) | |||
Gains (losses) recognized in income on hedged item | (1,648) | 1,551 | |||
Cash flow hedges | Interest rate swap agreements | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (4,643) | (610) | |||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |||
Cash flow hedges | Interest rate swap agreements | Finance revenues/Interest expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (27) | 32 | |||
Cash flow hedges | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 491 | (1,908) | |||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |||
Cash flow hedges | Foreign exchange contracts | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 2,608 | 1,356 | |||
Cash flow hedges | Foreign currency swap agreements | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (2,786) | (1,438) | |||
Cash flow hedges | Foreign currency swap agreements | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 111 | 510 | |||
Cash flow hedges | Foreign currency swap agreements | Finance revenues/Interest expense/Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (3,760) | (4,528) | |||
Hedges of net investment in foreign operations | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 18,209 | (18,670) | |||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |||
Hedges of net investment in foreign operations | Foreign exchange contracts | Gains on sales of subsidiaries and affiliates and liquidation losses, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (57) | 1,274 | |||
Hedges of net investment in foreign operations | Borrowings and bonds in local currency | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 11,626 | (6,968) | |||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | 0 | |||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |||
Derivatives designated as hedging instruments | Fair value hedges | Interest rate swap agreements | Finance revenues/Interest expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | ¥ (2,296) | ||||
Gains (losses) recognized in income on hedged item | 2,276 | ||||
Derivatives designated as hedging instruments | Fair value hedges | Foreign exchange contracts | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | (3,574) | ||||
Gains (losses) recognized in income on hedged item | 3,574 | ||||
Derivatives designated as hedging instruments | Fair value hedges | Foreign currency swap agreements | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | (2,896) | ||||
Gains (losses) recognized in income on hedged item | 2,896 | ||||
Derivatives designated as hedging instruments | Fair value hedges | Foreign currency long- term-debt | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | (1,609) | ||||
Gains (losses) recognized in income on hedged item | 1,609 | ||||
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swap agreements | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 945 | ||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | ||||
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swap agreements | Finance revenues/Interest expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 39 | ||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (948) | ||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | ||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 773 | ||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency swap agreements | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 594 | ||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency swap agreements | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 269 | ||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency swap agreements | Finance revenues/Interest expense/Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (2,025) | ||||
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (23,638) | ||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | ||||
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Foreign exchange contracts | Gains on sales of subsidiaries and affiliates and liquidation losses, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (171) | ||||
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Borrowings and bonds in local currency | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (16,469) | ||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | ||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | ||||
Nondesignated | Gains (losses) on investment securities and dividends | Futures | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | (167) | ||||
Nondesignated | Gains on Investment Securities and Dividends and Life Insurance Premiums and Related Investment Income (Loss) | Futures | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | 1,092 | [1] | (10,262) | ||
Nondesignated | Interest rate swap agreements | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | (95) | (127) | 5 | ||
Nondesignated | Foreign exchange contracts | Gains (losses) on investment securities and dividends | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | (406) | ||||
Nondesignated | Foreign exchange contracts | Gains on Investment Securities and Dividends and Life Insurance Premiums and Related Investment Income (Loss) and Other Income (Expense), Net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | 470 | [1] | (3,463) | [2] | |
Nondesignated | Credit derivatives held/written | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | 109 | 71 | (506) | ||
Nondesignated | Options held/written and other | Other (income) and expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | ¥ (241) | ||||
Nondesignated | Options held/written and other | Other Income (Expense), Net and Life Insurance Premiums and Related Investment Income (Loss) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) recognized in income on derivative | ¥ (272) | [1] | ¥ (16,175) | [2] | |
[1] | Futures, foreign exchange contracts and options held/written and other in the above table include losses arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2016 (see Note 23 "Life Insurance Operations"). | ||||
[2] | Futures, foreign exchange contracts and options held/written and other in the above table include losses arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2015 (see Note 23 "Life Insurance Operations"). |
Derivative Financial Instrum183
Derivative Financial Instruments and Hedging (Notional Amounts of Derivative Instruments and Other, Fair Values of Derivative Instruments and Other before Offsetting) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | ||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | ¥ 38,933 | ¥ 35,038 | ||
Liability derivatives, Fair value | 25,073 | 40,209 | ||
Interest rate swap agreements | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 257,700 | 296,464 | ||
Interest rate swap agreements | Derivatives designated as hedging instruments | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 80 | 890 | ||
Interest rate swap agreements | Derivatives designated as hedging instruments | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 5,686 | 1,094 | ||
Interest rate swap agreements | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 4,856 | 3,000 | ||
Asset derivatives, Fair value | 13 | 0 | ||
Interest rate swap agreements | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 235 | 127 | ||
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 1,035,342 | 581,510 | ||
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 17,636 | 5,281 | ||
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 5,966 | 11,016 | ||
Futures, foreign exchange contracts | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 1,047,878 | [1] | 111,309 | [2] |
Futures, foreign exchange contracts | Nondesignated | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 658 | [1] | 438 | [2] |
Futures, foreign exchange contracts | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 689 | [1] | 1,252 | [2] |
Foreign currency swap agreements | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 96,539 | 104,058 | ||
Foreign currency swap agreements | Derivatives designated as hedging instruments | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 6,571 | 6,411 | ||
Foreign currency swap agreements | Derivatives designated as hedging instruments | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 3,601 | 9,788 | ||
Foreign currency long- term-debt | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 225,711 | 258,313 | ||
Asset derivatives, Fair value | 0 | 0 | ||
Liability derivatives, Fair value | 0 | 0 | ||
Options held/written and other | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 246,068 | [1] | 441,586 | [2] |
Options held/written and other | Nondesignated | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 8,789 | [1] | 12,103 | [2] |
Options held/written and other | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 3,637 | [1] | 6,177 | [2] |
Credit derivatives held/written | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 3,380 | 9,013 | ||
Asset derivatives, Fair value | 0 | 0 | ||
Credit derivatives held/written | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | ¥ 56 | ¥ 165 | ||
[1] | The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥46,926 million, futures contracts of ¥51,021 million and foreign exchange contracts of ¥20,884 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2016, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥3,332 million, ¥25 million and ¥568 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥417 million and ¥98 million at March 31, 2016, respectively. | |||
[2] | The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥265,094 million, futures contracts of ¥34,586 million and foreign exchange contracts of ¥13,415 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2015, respectively. Asset derivatives in the above table include fair value of the options held and foreign exchange contracts before offsetting of ¥3,888 million and ¥92 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥690 million and ¥60 million at March 31, 2015, respectively. |
Derivative Financial Instrum184
Derivative Financial Instruments and Hedging (Notional Amounts of Derivative Instruments and Other, Fair Values of Derivative Instruments and Other before Offsetting) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | ¥ 38,933 | ¥ 35,038 |
Liability derivatives Fair value | 25,073 | 40,209 |
Options held | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | 3,332 | 3,888 |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | 25 | |
Liability derivatives Fair value | 417 | 690 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | 568 | 92 |
Liability derivatives Fair value | 98 | 60 |
Variable Annuity and Variable Life Insurance Contracts | Options held | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 46,926 | 265,094 |
Variable Annuity and Variable Life Insurance Contracts | Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 51,021 | 34,586 |
Variable Annuity and Variable Life Insurance Contracts | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | ¥ 20,884 | ¥ 13,415 |
Offsetting Assets and Liabil185
Offsetting Assets and Liabilities (Gross Amounts Recognized, Gross Amounts Offset, and Net Amounts Presented in Consolidated Balance Sheets Regarding to Derivative Assets and Liabilities and Other Assets and Liabilities) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | |
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, assets | ¥ 38,933 | ¥ 35,038 | |
Gross amounts offset in the consolidated balance sheets, assets | (10,943) | (12,773) | |
Net amounts presented in the consolidated balance sheets, assets | 27,990 | 22,265 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets | [1] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, assets | [1] | (3,332) | (3,888) |
Net amount, assets | 24,658 | 18,377 | |
Gross amounts recognized, liabilities | 25,073 | 40,209 | |
Gross amounts offset in the consolidated balance sheets, liabilities | (10,943) | (12,773) | |
Net amounts presented in the consolidated balance sheets, liabilities | 14,130 | 27,436 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities | [1] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities | [1] | (225) | (277) |
Net amount, liabilities | 13,905 | 27,159 | |
Derivative liabilities | |||
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, liabilities | 19,870 | 29,619 | |
Gross amounts offset in the consolidated balance sheets, liabilities | (5,757) | (2,858) | |
Net amounts presented in the consolidated balance sheets, liabilities | 14,113 | 26,761 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities | [1] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities | [1] | (225) | (277) |
Net amount, liabilities | 13,888 | 26,484 | |
Reverse repurchase, securities borrowing, and similar arrangements | |||
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, assets | [2] | 5,186 | 9,915 |
Gross amounts offset in the consolidated balance sheets, assets | [2] | (5,186) | (9,915) |
Net amounts presented in the consolidated balance sheets, assets | [2] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets | [1],[2] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, assets | [1],[2] | 0 | 0 |
Net amount, assets | [2] | 0 | 0 |
Gross amounts recognized, liabilities | [2] | 5,203 | 10,590 |
Gross amounts offset in the consolidated balance sheets, liabilities | [2] | (5,186) | (9,915) |
Net amounts presented in the consolidated balance sheets, liabilities | [2] | 17 | 675 |
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities | [1],[2] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities | [1],[2] | 0 | 0 |
Net amount, liabilities | [2] | 17 | 675 |
Derivative assets | |||
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, assets | 33,747 | 25,123 | |
Gross amounts offset in the consolidated balance sheets, assets | (5,757) | (2,858) | |
Net amounts presented in the consolidated balance sheets, assets | 27,990 | 22,265 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets | [1] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, assets | [1] | (3,332) | (3,888) |
Net amount, assets | ¥ 24,658 | ¥ 18,377 | |
[1] | The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. | ||
[2] | Reserve repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Significant Concentrations o186
Significant Concentrations of Credit Risk - Additional Information (Detail) - JPY (¥) ¥ in Billions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Concentration Risk [Line Items] | ||
Concentration of risk description | No concentration with a single obligor exceeded 1% of the Company's consolidated total assets. | |
Investment Concentration Risk | Assets | Trading securities | ||
Concentration Risk [Line Items] | ||
Concentration risk , percentage | 6.60% | 10.40% |
Transportation equipment | Assets | ||
Concentration Risk [Line Items] | ||
Concentration risk , percentage | 11.00% | 9.40% |
Consumer - Housing loans | Assets | ||
Concentration Risk [Line Items] | ||
Concentration risk , percentage | 10.30% | 9.30% |
Japan | Geographic Concentration Risk | Assets | ||
Concentration Risk [Line Items] | ||
Concentration risk , percentage | 78.00% | 80.00% |
Credit exposures on a geographic basis | ¥ 6,104 | ¥ 6,601 |
United States | Geographic Concentration Risk | Assets | ||
Concentration Risk [Line Items] | ||
Credit exposures on a geographic basis | ¥ 848 | ¥ 764 |
Estimated Fair Value of Fina187
Estimated Fair Value of Financial Instruments (Carrying Amount of Financial Instruments Reported in Accompanying Consolidated Financial Statements and Related Market or Fair Value) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |||
Assets: | |||||||
Trading securities | [1] | ¥ 725,821 | ¥ 1,190,131 | ||||
Cash and Cash Equivalents | 730,420 | 827,518 | ¥ 818,039 | ¥ 826,296 | |||
Restricted Cash | 80,979 | 85,561 | |||||
Other Assets: | |||||||
Derivative assets | 27,990 | 22,265 | |||||
Liabilities: | |||||||
Short-term debt | 349,624 | 284,785 | |||||
Deposits | 1,398,472 | 1,287,380 | |||||
Long-Term Debt | 3,940,906 | 4,132,945 | |||||
Other Liabilities: | |||||||
Derivative liabilities | 14,130 | 27,436 | |||||
Level 1 | |||||||
Assets: | |||||||
Trading securities | 37,592 | 50,902 | |||||
Cash and Cash Equivalents | 730,420 | 827,518 | |||||
Restricted Cash | 80,979 | 85,561 | |||||
Installment loans (net of allowance for probable loan losses) | 0 | 0 | |||||
Investment in securities: | |||||||
Practicable to estimate fair value | 99,347 | 130,519 | |||||
Not practicable to estimate fair value | 0 | [2] | 0 | [3] | |||
Other Assets: | |||||||
Time deposits | 0 | 0 | |||||
Derivative assets | [4] | 0 | 0 | ||||
Reinsurance recoverables (Investment contracts) | 0 | 0 | |||||
Liabilities: | |||||||
Short-term debt | 0 | 0 | |||||
Deposits | 0 | 0 | |||||
Policy liabilities and Policy account balances (Investment contracts) | 0 | 0 | |||||
Long-Term Debt | 0 | 0 | |||||
Other Liabilities: | |||||||
Derivative liabilities | [4] | 0 | 0 | ||||
Level 2 | |||||||
Assets: | |||||||
Trading securities | 688,229 | 1,139,229 | |||||
Cash and Cash Equivalents | 0 | 0 | |||||
Restricted Cash | 0 | 0 | |||||
Installment loans (net of allowance for probable loan losses) | 264,452 | 231,565 | |||||
Investment in securities: | |||||||
Practicable to estimate fair value | 1,271,506 | 1,239,124 | |||||
Not practicable to estimate fair value | 0 | [2] | 0 | [3] | |||
Other Assets: | |||||||
Time deposits | 9,843 | 13,761 | |||||
Derivative assets | [4] | 0 | 0 | ||||
Reinsurance recoverables (Investment contracts) | 0 | 0 | |||||
Liabilities: | |||||||
Short-term debt | 349,624 | 284,785 | |||||
Deposits | 1,400,528 | 1,288,419 | |||||
Policy liabilities and Policy account balances (Investment contracts) | 0 | 0 | |||||
Long-Term Debt | 1,106,147 | 1,417,687 | |||||
Other Liabilities: | |||||||
Derivative liabilities | [4] | 0 | 0 | ||||
Level 3 | |||||||
Assets: | |||||||
Trading securities | 0 | 0 | |||||
Cash and Cash Equivalents | 0 | 0 | |||||
Restricted Cash | 0 | 0 | |||||
Installment loans (net of allowance for probable loan losses) | 2,288,554 | 2,208,339 | |||||
Investment in securities: | |||||||
Practicable to estimate fair value | 140,308 | 125,897 | |||||
Not practicable to estimate fair value | 0 | [2] | 0 | [3] | |||
Other Assets: | |||||||
Time deposits | 0 | 0 | |||||
Derivative assets | [4] | 0 | 0 | ||||
Reinsurance recoverables (Investment contracts) | 94,656 | 116,229 | |||||
Liabilities: | |||||||
Short-term debt | 0 | 0 | |||||
Deposits | 0 | 0 | |||||
Policy liabilities and Policy account balances (Investment contracts) | 308,064 | 303,359 | |||||
Long-Term Debt | 2,853,019 | 2,699,572 | |||||
Other Liabilities: | |||||||
Derivative liabilities | [4] | 0 | 0 | ||||
Carrying amount | |||||||
Assets: | |||||||
Trading securities | 725,821 | ||||||
Cash and Cash Equivalents | 730,420 | 827,518 | |||||
Restricted Cash | 80,979 | 85,561 | |||||
Installment loans (net of allowance for probable loan losses) | 2,545,542 | 2,420,932 | |||||
Investment in securities: | |||||||
Practicable to estimate fair value | 1,480,499 | 1,481,162 | |||||
Not practicable to estimate fair value | 138,472 | [2] | 174,964 | [3] | |||
Other Assets: | |||||||
Time deposits | 9,843 | 13,761 | |||||
Derivative assets | [4] | 27,990 | 22,265 | ||||
Reinsurance recoverables (Investment contracts) | 93,838 | 115,116 | |||||
Liabilities: | |||||||
Short-term debt | 349,624 | 284,785 | |||||
Deposits | 1,398,472 | 1,287,380 | |||||
Policy liabilities and Policy account balances (Investment contracts) | 306,058 | 298,132 | |||||
Long-Term Debt | 3,940,906 | 4,132,945 | |||||
Other Liabilities: | |||||||
Derivative liabilities | [4] | 14,113 | 26,761 | ||||
Estimated fair value | |||||||
Assets: | |||||||
Trading securities | 725,821 | 1,190,131 | |||||
Cash and Cash Equivalents | 730,420 | 827,518 | |||||
Restricted Cash | 80,979 | 85,561 | |||||
Installment loans (net of allowance for probable loan losses) | 2,553,006 | 2,439,904 | |||||
Investment in securities: | |||||||
Practicable to estimate fair value | 1,511,161 | 1,495,540 | |||||
Not practicable to estimate fair value | 138,472 | [2] | 174,964 | [3] | |||
Other Assets: | |||||||
Time deposits | 9,843 | 13,761 | |||||
Derivative assets | [4] | 27,990 | 22,265 | ||||
Reinsurance recoverables (Investment contracts) | 94,656 | 116,229 | |||||
Liabilities: | |||||||
Short-term debt | 349,624 | 284,785 | |||||
Deposits | 1,400,528 | 1,288,419 | |||||
Policy liabilities and Policy account balances (Investment contracts) | 308,064 | 303,359 | |||||
Long-Term Debt | 3,959,166 | 4,117,259 | |||||
Other Liabilities: | |||||||
Derivative liabilities | [4] | ¥ 14,113 | ¥ 26,761 | ||||
[1] | The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥1,165,347 million and ¥704,313 million as of March 31, 2015 and March 31, 2016, respectively. | ||||||
[2] | The fair value of investment securities of ¥138,472 million was not estimated, as it was not practical. | ||||||
[3] | The fair value of investment securities of ¥174,964 million was not estimated, as it was not practical. | ||||||
[4] | It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 "Fair Value Measurements." |
Estimated Fair Value of Fina188
Estimated Fair Value of Financial Instruments (Carrying Amount of Financial Instruments Reported in Accompanying Consolidated Financial Statements and Related Market or Fair Value) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | ||
Carrying amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Not practicable to estimate fair value | ¥ 138,472 | [1] | ¥ 174,964 | [2] |
Carrying amount | Investment in securities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Not practicable to estimate fair value | 138,472 | 174,964 | ||
Estimated fair value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Not practicable to estimate fair value | 138,472 | [1] | 174,964 | [2] |
Estimated fair value | Investment in securities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Not practicable to estimate fair value | ¥ 138,472 | ¥ 174,964 | ||
[1] | The fair value of investment securities of ¥138,472 million was not estimated, as it was not practical. | |||
[2] | The fair value of investment securities of ¥174,964 million was not estimated, as it was not practical. |
Commitments, Guarantees and 189
Commitments, Guarantees and Contingent Liabilities - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Commitments for purchase of equipment to be leased at cost | ¥ 1,033 | ||
Rental payments made under cancelable operating lease agreements | 14,036 | ¥ 15,782 | ¥ 10,217 |
Payments for computer systems under non-cancelable contracts | ¥ 4,754 | 4,231 | ¥ 3,297 |
Longest non-cancelable contracts, maturity year | 2,022 | ||
Estimated construction costs | ¥ 88,728 | ||
Total unused credit and capital amount available | 347,603 | ||
Guarantee Obligations Maximum Exposure | 779,288 | 832,211 | |
Guarantee Obligations Current Carrying Value | 35,242 | 25,539 | |
Corporate Loans | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee Obligations Maximum Exposure | 396,340 | 439,253 | |
Guarantee Obligations Current Carrying Value | 5,875 | 4,959 | |
Corporate Loans | Performance Guarantee | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee Obligations Maximum Exposure | 1,278,000 | 1,204,000 | |
Guarantee Obligations Current Carrying Value | ¥ 1,080 | ¥ 1,016 |
Commitments, Guarantees and 190
Commitments, Guarantees and Contingent Liabilities (Minimum Future Rentals on Non-Cancelable Operating Leases) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Schedule of Operating Leases [Line Items] | |
2,017 | ¥ 7,959 |
2,018 | 6,506 |
2,019 | 5,626 |
2,020 | 5,280 |
2,021 | 4,171 |
Thereafter | 37,699 |
Total | ¥ 67,241 |
Commitments, Guarantees and 191
Commitments, Guarantees and Contingent Liabilities (Amounts Due under Non Cancelable Contracts) (Detail) ¥ in Millions | Mar. 31, 2016JPY (¥) |
Contractual obligation fiscal year maturity | |
2,017 | ¥ 3,385 |
2,018 | 2,918 |
2,019 | 2,424 |
2,020 | 1,822 |
2,021 | 104 |
Thereafter | 21 |
Total | ¥ 10,674 |
Commitments, Guarantees and 192
Commitments, Guarantees and Contingent Liabilities (Summary of Potential Future Payments, Book Value Recorded as Guarantee Liabilities of Guarantee Contracts Outstanding and Maturity of Longest Guarantee Contracts) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 779,288 | ¥ 832,211 |
Book value of guarantee liabilities | 35,242 | 25,539 |
Corporate Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | 396,340 | 439,253 |
Book value of guarantee liabilities | ¥ 5,875 | ¥ 4,959 |
Maturity of the longest contract (Years) | 2,023 | 2,022 |
Transferred Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 174,322 | ¥ 213,099 |
Book value of guarantee liabilities | ¥ 1,587 | ¥ 2,357 |
Maturity of the longest contract (Years) | 2,046 | 2,045 |
Consumer Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 179,225 | ¥ 117,153 |
Book value of guarantee liabilities | ¥ 21,748 | ¥ 11,773 |
Maturity of the longest contract (Years) | 2,018 | 2,018 |
Housing Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 28,919 | ¥ 59,743 |
Book value of guarantee liabilities | ¥ 5,853 | ¥ 6,422 |
Maturity of the longest contract (Years) | 2,051 | 2,051 |
Other Guarantees | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 482 | ¥ 2,963 |
Book value of guarantee liabilities | ¥ 179 | ¥ 28 |
Maturity of the longest contract (Years) | 2,024 | 2,024 |
Segment Information (Financial
Segment Information (Financial Information of Segments) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||
Revenues | ¥ 2,369,202 | ¥ 2,174,283 | ¥ 1,375,292 | ||
Finance revenues | 200,889 | 186,883 | 191,700 | ||
Interest expense | 72,821 | 72,647 | 82,968 | ||
Depreciation and amortization | 244,853 | 229,583 | 206,670 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | 11,717 | 11,631 | 13,838 | ||
Write-downs of long-lived assets | 13,448 | 34,887 | 23,421 | ||
Increase (Decrease) in policy liabilities and policy account balances | (405,014) | (506,043) | 28,429 | ||
Bargain purchase gain | 0 | 36,082 | 0 | ||
Discontinued operations | 0 | 463 | [1] | 12,182 | [1] |
Segment profits | 270,990 | 255,257 | 195,287 | ||
Segment assets | 10,996,906 | 11,443,628 | 9,066,961 | ||
Investment in Affiliates | 530,667 | 378,087 | |||
Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,379,004 | 2,185,312 | 1,394,183 | ||
Finance revenues | 195,949 | 182,203 | 178,923 | ||
Interest expense | 56,984 | 58,552 | 59,056 | ||
Depreciation and amortization | 227,465 | 213,792 | 196,789 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | 12,920 | 12,649 | 13,246 | ||
Write-downs of long-lived assets | 13,228 | 34,887 | 19,311 | ||
Increase (Decrease) in policy liabilities and policy account balances | (405,014) | (506,043) | 28,429 | ||
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net | 103,668 | 51,483 | 85,124 | ||
Bargain purchase gain | 36,082 | ||||
Discontinued operations | 463 | 9,174 | |||
Segment profits | 380,110 | 336,542 | 295,237 | ||
Segment assets | 8,972,449 | 9,170,249 | 7,267,798 | ||
Long-lived assets | 1,754,761 | 1,622,181 | 1,782,050 | ||
Expenditures for long-lived assets | 562,767 | 393,157 | 352,555 | ||
Investment in Affiliates | 530,583 | 378,144 | 297,315 | ||
Operating Segment | Corporate Financial Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 107,150 | 85,502 | 78,825 | ||
Finance revenues | 34,215 | 35,624 | 37,235 | ||
Interest expense | 7,214 | 8,627 | 8,594 | ||
Depreciation and amortization | 4,764 | 3,373 | 3,170 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | (701) | 597 | (974) | ||
Write-downs of long-lived assets | 0 | 653 | 0 | ||
Increase (Decrease) in policy liabilities and policy account balances | 0 | 0 | 0 | ||
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net | 1,064 | 740 | 792 | ||
Bargain purchase gain | 0 | ||||
Discontinued operations | 0 | 0 | |||
Segment profits | 42,418 | 25,519 | 24,874 | ||
Segment assets | 1,049,867 | 1,132,468 | 992,078 | ||
Long-lived assets | 41,170 | 35,470 | 26,665 | ||
Expenditures for long-lived assets | 14,180 | 8,717 | 3,505 | ||
Investment in Affiliates | 22,755 | 20,875 | 18,909 | ||
Operating Segment | Maintenance Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 271,662 | 263,499 | 251,328 | ||
Finance revenues | 12,067 | 11,103 | 9,472 | ||
Interest expense | 3,545 | 3,690 | 3,687 | ||
Depreciation and amortization | 127,862 | 125,013 | 117,357 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | 24 | 372 | 363 | ||
Write-downs of long-lived assets | 0 | 0 | 1,292 | ||
Increase (Decrease) in policy liabilities and policy account balances | 0 | 0 | 0 | ||
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net | 191 | 59 | 152 | ||
Bargain purchase gain | 0 | ||||
Discontinued operations | 0 | 0 | |||
Segment profits | 42,935 | 40,366 | 37,062 | ||
Segment assets | 731,329 | 662,851 | 622,009 | ||
Long-lived assets | 479,619 | 450,099 | 433,342 | ||
Expenditures for long-lived assets | 151,330 | 162,323 | 176,952 | ||
Investment in Affiliates | 1,996 | 2,074 | 1,718 | ||
Operating Segment | Real Estate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 191,540 | 182,321 | 203,382 | ||
Finance revenues | 6,720 | 4,057 | 6,132 | ||
Interest expense | 4,676 | 6,968 | 9,018 | ||
Depreciation and amortization | 15,908 | 16,900 | 19,200 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | (110) | (85) | 2,079 | ||
Write-downs of long-lived assets | 8,036 | 29,418 | 16,958 | ||
Increase (Decrease) in policy liabilities and policy account balances | 0 | 0 | 0 | ||
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net | 6,048 | 9,633 | 4,709 | ||
Bargain purchase gain | 0 | ||||
Discontinued operations | 0 | 8,832 | |||
Segment profits | 42,902 | 3,484 | 17,956 | ||
Segment assets | 739,592 | 835,386 | 962,404 | ||
Long-lived assets | 600,693 | 652,524 | 773,146 | ||
Expenditures for long-lived assets | 49,858 | 45,019 | 32,056 | ||
Investment in Affiliates | 91,010 | 91,275 | 62,504 | ||
Operating Segment | Investment Banking | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,028,355 | 666,120 | 236,879 | ||
Finance revenues | 12,625 | 15,650 | 18,350 | ||
Interest expense | 3,539 | 3,609 | 4,077 | ||
Depreciation and amortization | 8,836 | 5,919 | 2,867 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | (940) | (296) | 2,620 | ||
Write-downs of long-lived assets | 214 | 211 | 15 | ||
Increase (Decrease) in policy liabilities and policy account balances | 0 | 0 | 0 | ||
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net | 18,822 | 11,985 | 68,758 | ||
Bargain purchase gain | 0 | ||||
Discontinued operations | 463 | 383 | |||
Segment profits | 57,220 | 42,414 | 95,786 | ||
Segment assets | 704,156 | 660,014 | 552,183 | ||
Long-lived assets | 193,970 | 145,153 | 75,458 | ||
Expenditures for long-lived assets | 74,645 | 70,616 | 22,428 | ||
Investment in Affiliates | 108,237 | 51,108 | 59,759 | ||
Operating Segment | Retail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 254,289 | 425,977 | 211,612 | ||
Finance revenues | 55,318 | 52,510 | 50,406 | ||
Interest expense | 4,654 | 5,669 | 5,593 | ||
Depreciation and amortization | 17,489 | 15,190 | 12,644 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | 7,370 | 3,975 | 3,485 | ||
Write-downs of long-lived assets | 0 | 0 | 0 | ||
Increase (Decrease) in policy liabilities and policy account balances | (405,014) | (506,043) | 28,429 | ||
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net | 796 | 633 | 3,920 | ||
Bargain purchase gain | 36,082 | ||||
Discontinued operations | 0 | 238 | |||
Segment profits | 51,756 | 120,616 | 49,871 | ||
Segment assets | 3,462,772 | 3,700,635 | 2,166,986 | ||
Long-lived assets | 52,359 | 49,838 | 76,491 | ||
Expenditures for long-lived assets | 439 | 144 | 195 | ||
Investment in Affiliates | 911 | 3,785 | 10,971 | ||
Operating Segment | Overseas | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 526,008 | 561,893 | 412,157 | ||
Finance revenues | 75,004 | 63,259 | 57,328 | ||
Interest expense | 33,356 | 29,989 | 28,087 | ||
Depreciation and amortization | 52,606 | 47,397 | 41,551 | ||
Other significant non-cash items: | |||||
Provision for doubtful receivables and probable loan losses | 7,277 | 8,086 | 5,673 | ||
Write-downs of long-lived assets | 4,978 | 4,605 | 1,046 | ||
Increase (Decrease) in policy liabilities and policy account balances | 0 | 0 | 0 | ||
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net | 76,747 | 28,433 | 6,793 | ||
Bargain purchase gain | 0 | ||||
Discontinued operations | 0 | (279) | |||
Segment profits | 142,879 | 104,143 | 69,688 | ||
Segment assets | 2,284,733 | 2,178,895 | 1,972,138 | ||
Long-lived assets | 386,950 | 289,097 | 396,948 | ||
Expenditures for long-lived assets | 272,315 | 106,338 | 117,419 | ||
Investment in Affiliates | ¥ 305,674 | ¥ 209,027 | ¥ 143,454 | ||
[1] | Income from discontinued operations, net includes aggregate gains on sales of subsidiaries, business units and rental properties and liquidation on losses. The amount of such gains or losses in fiscal 2014 and 2015 were net gain of ¥14,600 million and ¥362 million, respectively. |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Totals to Consolidated Financial Statement Amounts) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | ||||
Segment revenues: | |||||||
Revenues | ¥ 2,369,202 | ¥ 2,174,283 | ¥ 1,375,292 | ||||
Segment profits: | |||||||
Total segment profits | 287,741 | 256,829 | 203,048 | ||||
Gains related to assets or liabilities of certain VIEs | 57,867 | 20,575 | 64,923 | ||||
Discontinued operations, pre-tax | 0 | 463 | [1] | 12,182 | [1] | ||
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests, net of applicable tax effect | 819 | 4,970 | 4,108 | ||||
Income before Income Taxes and Discontinued Operations | 391,302 | 344,017 | 286,339 | ||||
Segment assets: | |||||||
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | (60,071) | (72,326) | (84,796) | ¥ (104,264) | |||
Trade Notes, Accounts and Other Receivable | 294,638 | 348,404 | |||||
Other corporate assets | 1,356,774 | 1,464,203 | |||||
Assets of certain VIEs | [2] | 981,832 | 966,402 | ||||
Assets | 10,996,906 | 11,443,628 | 9,066,961 | ||||
Operating Segment | |||||||
Segment revenues: | |||||||
Revenues | 2,379,004 | 2,185,312 | 1,394,183 | ||||
Segment profits: | |||||||
Total segment profits | 380,110 | 336,542 | 295,237 | ||||
Discontinued operations, pre-tax | 463 | 9,174 | |||||
Segment assets: | |||||||
Assets | 8,972,449 | 9,170,249 | 7,267,798 | ||||
Corporate, Non-Segment | |||||||
Segment revenues: | |||||||
Revenues | 9,230 | 6,531 | 6,618 | ||||
Segment profits: | |||||||
Corporate losses | (5,261) | (15,638) | (21,642) | ||||
Gains related to assets or liabilities of certain VIEs | 5,632 | 3,267 | 17,003 | ||||
Discontinued operations, pre-tax | 0 | (463) | (12,182) | ||||
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests, net of applicable tax effect | 10,821 | 20,309 | 7,923 | ||||
Segment assets: | |||||||
Cash and cash equivalents, restricted cash | 811,399 | 913,079 | 905,074 | ||||
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | (60,071) | (72,326) | (84,796) | ||||
Trade Notes, Accounts and Other Receivable | 294,638 | 348,404 | 193,369 | ||||
Other corporate assets | 704,600 | 789,636 | 532,365 | ||||
Assets of certain VIEs | 273,891 | 294,586 | 253,151 | ||||
Corporate, Non-Segment | Segment, Discontinued Operations | |||||||
Segment revenues: | |||||||
Revenues | 0 | (2,214) | (26,607) | ||||
Corporate, Non-Segment | Variable Interest Entities | |||||||
Segment revenues: | |||||||
Revenues | 5,455 | 6,356 | 13,989 | ||||
Intersegment Eliminations | |||||||
Segment revenues: | |||||||
Revenues | ¥ (24,487) | ¥ (21,702) | ¥ (12,891) | ||||
[1] | Income from discontinued operations, net includes aggregate gains on sales of subsidiaries, business units and rental properties and liquidation on losses. The amount of such gains or losses in fiscal 2014 and 2015 were net gain of ¥14,600 million and ¥362 million, respectively. | ||||||
[2] | The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. |
Segment Information (Geographic
Segment Information (Geographical Revenues and Income before Income Taxes) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | ¥ 2,369,202 | ¥ 2,174,283 | ¥ 1,375,292 | ||||
Income before Income Taxes | 391,302 | 344,017 | [1] | 286,339 | [1] | ||
Geography Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | 0 | (2,214) | (26,607) | ||||
Income before Income Taxes | 0 | (463) | [1] | (12,182) | [1] | ||
The Americas | Reportable Geographical Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | [2] | 186,186 | 209,923 | 131,797 | |||
Income before Income Taxes | [2] | 74,546 | 32,382 | [1] | 42,901 | [1] | |
Other Countries | Reportable Geographical Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | [3] | 355,434 | [4] | 363,964 | 292,675 | ||
Income before Income Taxes | [3] | 74,962 | [4] | 84,035 | [1] | 44,178 | [1] |
Japan | Reportable Geographical Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | 1,827,582 | 1,602,610 | 977,427 | ||||
Income before Income Taxes | ¥ 241,794 | ¥ 228,063 | [1] | ¥ 211,442 | [1] | ||
[1] | Results of discontinued operations pre-tax are included in each amount attributed to each geographic area. | ||||||
[2] | Mainly the United States | ||||||
[3] | Mainly Asia, Europe, Australasia and Middle East | ||||||
[4] | Robeco, one of the Company's subsidiaries domiciled in the Netherlands, conducts principally an asset management business. Due to the integrated nature of such business with its customer base spread across the world, "Other" locations include the total revenues and the income before income taxes of Robeco for fiscal 2014, 2015 and 2016, respectively. The revenues of Robeco aggregated on a legal entity basis were ¥58,997 million in the Americas and ¥52,169 million in other for fiscal 2014, ¥99,059 million in the Americas and ¥96,966 million in other for fiscal 2015, and ¥108,446 million in the Americas and ¥76,726 million in other for fiscal 2016. |
Segment Information (Geograp196
Segment Information (Geographical Revenues and Income before Income Taxes) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenue | ¥ 2,369,202 | ¥ 2,174,283 | ¥ 1,375,292 |
The Americas | Robeco Groep N.V. | |||
Segment Reporting Information [Line Items] | |||
Revenue | 108,446 | 99,059 | 58,997 |
Other Countries | Robeco Groep N.V. | |||
Segment Reporting Information [Line Items] | |||
Revenue | ¥ 76,726 | ¥ 96,966 | ¥ 52,169 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves (Valuation and Qualifying Accounts and Reserves) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Restructuring cost | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | ¥ 392 | ¥ 1,932 | ¥ 9 | |
Acquisitions | 0 | 0 | 3,049 | |
Addition: Charged to costs and expenses | 0 | 0 | 0 | |
Deduction | (237) | (1,474) | (1,230) | |
Translation adjustment | 1 | (66) | 104 | |
Balance at end of period | 156 | 392 | 1,932 | |
Restructuring cost | Closed office lease obligations | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 0 | 9 | ||
Acquisitions | 0 | |||
Addition: Charged to costs and expenses | 0 | |||
Deduction | (9) | |||
Translation adjustment | 0 | |||
Balance at end of period | 0 | |||
Restructuring cost | Severance and other benefits to terminated employees | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 392 | 1,932 | 0 | |
Acquisitions | 0 | 0 | 3,049 | |
Addition: Charged to costs and expenses | 0 | 0 | 0 | |
Deduction | (237) | (1,474) | (1,221) | |
Translation adjustment | 1 | (66) | 104 | |
Balance at end of period | 156 | 392 | 1,932 | |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 50,515 | 30,570 | 18,831 | |
Acquisitions | 419 | 22,563 | 13,182 | |
Addition: Charged to costs and expenses | 2,936 | 9,591 | 3,300 | |
Deduction | [1] | (4,622) | (9,944) | (4,792) |
Other | [2] | (6,028) | (2,265) | 49 |
Balance at end of period | ¥ 43,220 | ¥ 50,515 | ¥ 30,570 | |
[1] | The amount of deduction includes benefits recognized in earnings, expiry of loss carryforwards and sales of subsidiaries. | |||
[2] | The amount of other includes translation adjustment, the effect of changes in statutory tax rate and the effect of the amendment to tax loss carryforward rules. |