Income Taxes (Tables)

12 Months Ended

Mar. 31, 2011

Income before income taxes and discontinued operations, and the provision for income taxes in fiscal 2009, 2010 and 2011 are as follows:


	Millions of yen									Millions of U.S. dollars
	2009			2010			2011			2011
Income before income taxes and discontinued operations:
Japan	¥	(12,679	)	¥	13,321		¥	38,810		$	467
Overseas		24,714			41,272			53,155			639

	¥	12,035		¥	54,593		¥	91,965		$	1,106

Provision for income taxes:
Current—
Japan	¥	40,158		¥	32,553		¥	27,068		$	326
Overseas		31			17,553			17,736			213

		40,189			50,106			44,804			539

Deferred—
Japan		(51,155	)		(22,285	)		(13,534	)		(163	)
Overseas		8,368			(5,427	)		(3,653	)		(44	)

		(42,787	)		(27,712	)		(17,187	)		(207	)

Provision for income taxes	¥	(2,598	)	¥	22,394		¥	27,617		$	332

Reconciliation of Provision for Income Taxes

Reconciliation of the differences between the tax provision computed at the statutory rate and the consolidated provision for income taxes in fiscal 2009, 2010 and 2011 are as follows:


	Millions of yen									Millions of U.S. dollars
	2009			2010			2011			2011
Income before income taxes and discontinued operations	¥	12,035		¥	54,593		¥	91,965		$	1,106

Tax provision computed at statutory rate	¥	4,922		¥	22,329		¥	37,614		$	452
Increases (reductions) in taxes due to:
Change in valuation allowance		5,678			1,859			(3,944	)		(47	)
Non-deductible expenses for tax purposes		1,755			1,640			1,123			13
Non-taxable income for tax purposes		(976	)		(779	)		(2,697	)		(32	)
Effect of lower tax rates on foreign subsidiaries and a domestic life insurance subsidiary		(1,479	)		(3,699	)		(4,335	)		(52	)
Effect of a revision of the taxation system		(10,970	)		0			0			0
Other, net		(1,528	)		1,044			(144	)		(2	)

Provision for income taxes	¥	(2,598	)	¥	22,394		¥	27,617		$	332

Schedule of Income Tax Expense Benefit Intraperiod Tax Allocation

Total income taxes recognized in fiscal 2009, 2010 and 2011 are as follows:


	Millions of yen									Millions of U.S. dollars
	2009			2010			2011			2011
Provision for income taxes	¥	(2,598	)	¥	22,394		¥	27,617		$	332
Income taxes on discontinued operations		8,719			5,715			5,297			64
Goodwill, for initial recognition of acquired tax benefits that previously were included in the valuation allowance		(2,141	)		0			0			0
Income taxes on other comprehensive income (loss):
Net unrealized gains (losses) on investment in securities		(27,533	)		7,816			3,403			41
Defined benefit pension plans		(8,362	)		4,925			(1,427	)		(17	)
Foreign currency translation adjustments		(2,111	)		4,722			(214	)		(3	)
Net unrealized gains (losses) on derivative instruments		(390	)		(1,066	)		(338	)		(4	)

Total income taxes	¥	(34,416	)	¥	44,506		¥	34,338		$	413

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences giving rise to the deferred tax assets and liabilities at March 31, 2010 and 2011 are as follows:


	Millions of yen						Millions of U.S. dollars
	2010			2011			2011
Assets:
Net operating loss carryforwards	¥	53,841		¥	47,623		$	573
Allowance for doubtful receivables on direct financing leases and probable loan losses		77,866			69,917			841
Investment in securities		13,138			726			9
Other operating assets		2,339			2,638			32
Accrued expenses		11,815			11,865			143
Other		34,937			30,981			371

		193,936			163,750			1,969
Less: valuation allowance		(42,846	)		(26,794	)		(322	)

		151,090			136,956			1,647
Liabilities:
Investment in direct financing leases		27,109			16,462			198
Investment in operating leases		69,610			64,992			782
Deferred insurance policy acquisition costs		24,407			29,233			351
Policy liabilities		17,910			21,123			254
Undistributed earnings		25,799			29,111			350
Prepaid benefit cost		13,392			11,992			144
Other		50,285			33,498			403

		228,512			206,411			2,482

Net deferred tax liability	¥	77,422		¥	69,455		$	835

Summary of Operating Loss Carryforwards

The Company and certain subsidiaries have net operating loss carryforwards of ¥138,428 million ($1,665 million) at March 31, 2011, which expire as follows:


Year ending March 31,	Millions of yen		Millions of U.S. dollars
2012	¥	9,394	$	113
2013		13,302		160
2014		6,013		72
2015		21,856		263
2016		22,661		273
Thereafter		65,202		784

Total	¥	138,428	$	1,665

Schedule of Deferred Tax Assets and Liabilities Table

Net deferred tax assets and liabilities at March 31, 2010 and 2011 are reflected in the accompanying consolidated balance sheets under the following captions:


	Millions of yen				Millions of U.S. dollars
	2010		2011		2011
Other assets	¥	83,483	¥	91,063	$	1,095
Income taxes: Deferred		160,905		160,518		1,930

Net deferred tax liability	¥	77,422	¥	69,455	$	835