32. Segment Information

Financial information about its operating segments reported below is information that is separately available and evaluated regularly by the management in deciding how to allocate resources and in assessing performance.

From April 1, 2010, the Company changed the way it measures its segment information related to certain variable interest entities (VIEs) which are consolidated in accordance with ASC 810-10 (“Consolidation”) since the Company’s management changed its internal performance assessment measures to manage its segments.

From April 1, 2010, in line with a change of management classification, Internet Research Institute, Inc. and ORIX’s Information and Communication Technology Department, which were previously included in the Corporate Financial Services segment, have been included in the Investment Banking segment and the Maintenance Leasing segment, respectively. In addition, from October 1, 2010, real estate finance business, previously included in the Investment Banking segment, has been included in the Real Estate segment.

Due to these changes, the reclassified figures are shown for the years ended March 31, 2009 and 2010.

An overview of operations for each of the six segments follows below.


Corporate Financial Services	:	Lending, leasing, commission business for the sale of financial products, and environment-related business

Maintenance Leasing	:	Automobile leasing and rentals, car sharing, and precision measuring and IT- related equipment rentals and leasing

Real Estate	:	Development and rentals of commercial real estate, condominium development and sales, hotel, golf course, and training facility operation, senior housing development and management, REIT asset management, real estate investment and advisory services, and real estate finance

Investment Banking	:	Loan servicing (asset recovery), principal investment, M&A advisory, venture capital and securities brokerage

Retail	:	Life insurance, trust and banking services, card loan business by affiliates

Overseas Business	:	Leasing, lending, investment in bonds, investment banking, real estate-related operations, and ship- and aircraft-related operations

Financial information of the segments for the years ended March 31, 2009, 2010 and 2011 is as follows:


	Millions of yen
Year ended March 31, 2009	Corporate Financial Services			Maintenance Leasing		Real Estate		Investment Banking			Retail		Overseas Business			Total
Revenues	¥	116,352		¥	242,572	¥	303,030	¥	72,868		¥	181,997	¥	167,635		¥	1,084,454
Interest revenue		52,105			23		27,157		21,019			56,834		36,986			194,124
Interest expense		23,947			6,676		22,676		5,135			10,585		29,432			98,451
Depreciation and amortization		23,650			97,447		16,181		4,479			14,635		34,942			191,334
Other significant non-cash items:
Provision for doubtful receivables and probable loan losses		42,414			3,596		6,396		2,162			18,524		3,893			76,985
Write-downs of long-lived assets		0			0		3,590		0			0		83			3,673
Decrease in policy liabilities		0			0		0		0			43,495		0			43,495
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net		(346	)		61		15,983		(63,276	)		86		5,273			(42,219	)
Discontinued operations		(58	)		0		21,590		(4,203	)		0		554			17,883
Segment profits (losses)		(10,702	)		28,015		59,185		(74,217	)		9,573		20,066			31,920
Segment assets		1,527,317			612,351		1,833,653		507,066			1,448,804		949,852			6,879,043
Long-lived assets		43,566			338,356		999,018		37,278			46,057		143,458			1,607,733
Expenditures for long-lived assets		6,824			143,757		293,984		2,600			0		52,606			499,771
Investment in affiliates		15,434			566		76,794		82,701			7,584		77,067			260,146

	Millions of yen
Year ended March 31, 2010	Corporate Financial Services			Maintenance Leasing		Real Estate		Investment Banking			Retail		Overseas Business			Total
Revenues	¥	98,063		¥	226,179	¥	215,001	¥	73,422		¥	155,491	¥	185,906		¥	954,062
Interest revenue		33,737			74		16,021		24,113			34,174		26,926			135,045
Interest expense		19,149			5,611		21,520		6,881			10,580		17,273			81,014
Depreciation and amortization		11,993			98,943		17,601		3,740			11,495		28,588			172,360
Other significant non-cash items:
Provision for doubtful receivables and probable loan losses		40,509			2,013		9,521		2,306			9,277		7,901			71,527
Write-downs of long-lived assets		152			0		4,379		283			0		2,163			6,977
Decrease in policy liabilities		0			0		0		0			32,927		0			32,927
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net		679			86		3,747		(6,299	)		19,039		8,635			25,887
Discontinued operations		(171	)		0		12,653		2,704			0		(733	)		14,453
Segment profits (losses)		(18,983	)		23,307		138		(2,848	)		31,104		37,142			69,860
Segment assets		1,178,879			515,716		1,677,402		472,705			1,578,758		860,815			6,284,275
Long-lived assets		47,150			303,809		1,013,190		27,016			44,838		133,462			1,569,465
Expenditures for long-lived assets		4,581			77,261		51,001		807			24		26,939			160,613
Investment in affiliates		16,233			631		82,768		56,076			167,293		86,700			409,701


	Millions of yen
Year ended March 31, 2011	Corporate Financial Services			Maintenance Leasing		Real Estate		Investment Banking		Retail		Overseas Business			Total
Revenues	¥	103,239		¥	225,830	¥	217,590	¥	65,661	¥	148,768	¥	176,875		¥	937,963
Interest revenue		24,024			189		13,181		23,889		28,171		34,841			124,295
Interest expense		13,585			4,998		19,218		6,145		8,980		16,931			69,857
Depreciation and amortization		6,808			97,394		17,668		1,327		9,480		27,255			159,932
Other significant non-cash items:
Provision for doubtful receivables and probable loan losses		12,699			1,955		1,131		6,810		1,409		3,226			27,230
Write-downs of long-lived assets		104			0		13,278		996		0		1,770			16,148
Decrease in policy liabilities		0			0		0		0		11,692		0			11,692
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net		387			157		2,585		1,433		52		13,382			17,996
Discontinued operations		(349	)		0		6,688		6,905		0		(51	)		13,193
Segment profits		10,247			26,203		54		13,000		23,777		45,639			118,920
Segment assets		1,006,107			502,738		1,539,814		468,231		1,653,704		972,224			6,142,818
Long-lived assets		58,685			312,261		1,016,039		24,373		42,686		193,724			1,647,768
Expenditures for long-lived assets		7,748			118,283		40,270		2,164		86		58,156			226,707
Investment in affiliates		16,510			710		84,325		54,634		110,375		106,813			373,367

	Millions of U.S. dollars
Year ended March 31, 2011	Corporate Financial Services			Maintenance Leasing		Real Estate		Investment Banking		Retail		Overseas Business			Total
Revenues	$	1,242		$	2,716	$	2,617	$	790	$	1,789	$	2,126		$	11,280
Interest revenue		289			2		159		287		339		419			1,495
Interest expense		163			60		231		74		108		204			840
Depreciation and amortization		82			1,171		212		16		114		328			1,923
Other significant non-cash items:
Provision for doubtful receivables and probable loan losses		151			24		14		82		17		39			327
Write-downs of long-lived assets		1			0		160		12		0		21			194
Decrease in policy liabilities		0			0		0		0		141		0			141
Equity in net income (loss) of affiliates and gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net		5			2		31		17		1		160			216
Discontinued operations		(4	)		0		80		84		0		(1	)		159
Segment profits		123			315		1		156		286		549			1,430
Segment assets		12,100			6,046		18,519		5,631		19,888		11,692			73,876
Long-lived assets		706			3,755		12,220		293		513		2,330			19,817
Expenditures for long-lived assets		93			1,423		484		26		1		699			2,726
Investment in affiliates		199			9		1,014		657		1,327		1,284			4,490

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, discontinued operations and the consolidation of certain variable interest entities (VIEs). 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. Since the Company and its subsidiaries evaluate performance for the segments based on profit or loss before income taxes, tax expenses are not included in segment profits or losses. Net income attributable to the noncontrolling interests, net income attributable to the redeemable noncontrolling interests and discontinued operations, which are recognized net of tax, are adjusted to profit or loss before income tax. Gains and losses that management does not consider for evaluating the performance of the segments, such as write-downs of certain securities and certain foreign exchange gains or losses 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, other operating assets, inventories, advances for investment in operating leases (included in other assets) and investment in affiliates. 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.

In addition, from April 1, 2010, the Company changed the way it measures its segment information related to certain variable interest entities (VIEs) which are consolidated in accordance with ASC 810-10 (“Consolidations”) since the Company’s management changed its internal performance assessment measures to manage its segments.

For those consolidated VIEs used for securitization, 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									Millions of U.S. dollars
	2009			2010			2011			2011
Segment revenues:
Total revenues for segments	¥	1,084,454		¥	954,062		¥	937,963		$	11,280
Revenues related to corporate assets		7,963			5,818			3,440			42
Revenues related to certain VIEs		4,825			3,455			51,747			622
Revenues from discontinued operations		(64,756	)		(51,041	)		(23,040	)		(277	)

Total consolidated revenues	¥	1,032,486		¥	912,294		¥	970,110		$	11,667

Segment profits:
Total profits for segments	¥	31,920		¥	69,860		¥	118,920		$	1,430
Corporate interest expenses, general and administrative expenses		(3,019	)		(276	)		(11,852	)		(143	)
Corporate write-downs of securities		0			(887	)		(615	)		(7	)
Corporate net gains (losses) on investment securities		649			173			203			2
Corporate other gains (losses)		(1,505	)		(3,004	)		(4,876	)		(58	)
Gains (losses) related to assets or liabilities of certain VIEs		0			0			(1,591	)		(19	)
Discontinued operations		(17,883	)		(14,453	)		(13,556	)		(163	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		1,873			3,180			5,332			64

Total consolidated income before income taxes and discontinued operations	¥	12,035		¥	54,593		¥	91,965		$	1,106

Segment assets:
Total assets for segments	¥	6,879,043		¥	6,284,275		¥	6,142,818		$	73,876
Cash and cash equivalents, restricted cash and time deposits		588,705			717,121			855,340			10,287
Allowance for doubtful receivables on direct financing leases and probable loan losses		(158,544	)		(157,523	)		(154,150	)		(1,854	)
Other receivables		228,581			210,521			182,013			2,189
Other corporate assets		478,323			485,746			543,728			6,539
Assets of certain VIEs		353,628			199,660			1,011,833			12,169

Total consolidated assets	¥	8,369,736		¥	7,739,800		¥	8,581,582		$	103,206

From April 1, 2010, certain assets and revenues related to certain VIEs and gains (losses) related to assets or liabilities of certain VIEs are included in the reconciliation of segment totals to consolidated financial statement amounts. Due to these changes, the reclassified figures are shown for the years ended March 31, 2009 and 2010.

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, 2009
	Japan		*America 2**		*Other 3**		Difference between Geographic Total and Consolidated Amounts			Consolidated Amounts
Total Revenues	¥	933,951	¥	68,026	¥	95,265	¥	(64,756	)	¥	1,032,486
Income before income Taxes		8,695		3,191		18,032		(17,883	)		12,035

	Millions of yen
	Year Ended March 31, 2010
	Japan		*America 2**		*Other 3**		Difference between Geographic Total and Consolidated Amounts			Consolidated Amounts
Total Revenues	¥	784,537	¥	96,879	¥	81,919	¥	(51,041	)	¥	912,294
Income before income Taxes		33,180		18,743		17,123		(14,453	)		54,593

	Millions of yen
	Year Ended March 31, 2011
	Japan		*America 2**		*Other 3**		Difference between Geographic Total and Consolidated Amounts			Consolidated Amounts
Total Revenues	¥	771,403	¥	138,975	¥	82,772	¥	(23,040	)	¥	970,110
Income before income Taxes		62,477		18,411		24,633		(13,556	)		91,965

	Millions of U.S. dollars
	Year Ended March 31, 2011
	Japan		*America 2**		*Other 3**		Difference between Geographic Total and Consolidated Amounts			Consolidated Amounts
Total Revenues	$	9,277	$	1,671	$	995	$	(276	)	$	11,667
Income before income Taxes		751		221		297		(163	)		1,106


*Note:		1. Results of discontinued operations are included in each amount attributed to each geographic area.
		2. Mainly United States
		3. Mainly Asia, Europe, Oceania and Middle East

ASC 280-10 (“Segment Reporting”) requires disclosure of revenues from external customers for each product and service as enterprise-wide information. The consolidated statements of income 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 total revenues for the years ended March 31, 2009, 2010 and 2011.