Segment Information

9 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

24. Segment Information

Based on the nature of major products and services, customer base, and management organizations, our business are organized into six operating segments: Corporate Financial Services, Maintenance Leasing, Real Estate, Investment and Operation, Retail and Overseas Business.

The financial information by the operating segments as reported below is that which is available by the segments, and regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

Types of products and services of the six segments are as follows.

Corporate Financial Services	:	Finance and fee business
Maintenance Leasing	:	Automobile leasing and rentals, car-sharing; test and measurement instruments, and IT-related equipment rentals and leasing
Real Estate	:	Real estate development, rental and management; facility operation; real estate investment management
Investment and Operation	:	Environment and energy, private equity and concession
Retail	:	Life insurance, banking and card loan
Overseas Business	:	Asset management, aircraft- and ship-related operations, private equity and finance

In fiscal 2019, the Company had made DAIKYO a wholly-owned subsidiary, to complement their respective real estate business and to jointly aim for medium- and long-term growth as a comprehensive real estate group. Accordingly, the segment classification of DAIKYO had been shifted from Investment and Operation segment to Real Estate segment since the previous fiscal year. As a result of this change, the segment data of the previous fiscal year has been retrospectively restated.

The Company and its subsidiaries adopted the New Lease Standard on April 1, 2019. This adoption has resulted in a gross up of ROU assets of investment in operating leases and property under facility operations principally for operating leases, where the Company is the lessee, such as land leases and office and equipment leases in all of our segments except for Retail segment. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”

The following table represents the financial data for segments for the nine months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142
Segment profits		19,760		30,387		54,721		31,091		66,237		95,621		297,817
The following table represents the financial data for segments for the nine months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739
Segment profits		13,159		25,767		56,070		55,590		70,447		131,894		352,927

The following table represents the financial data for segments for the three months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262
Segment profits		2,972		9,804		10,557		6,201		17,062		27,905		74,501
The following table represents the financial data for segments for the three months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653
Segment profits		4,008		9,142		9,892		27,203		27,262		45,031		122,538
The following table presents the financial data on segment assets for segments as of March 31, 2019 and December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
March 31, 2019	¥	959,725	¥	873,775	¥	720,221	¥	733,612	¥	3,571,437	¥	3,138,928	¥	9,997,698
December 31, 2019		1,000,148		900,943		756,092		808,466		4,110,336		3,283,169		10,859,154

The accounting policies for segment financial data is generally the same as described in Note 2 “Significant Accounting and Reporting Policies”, except for the treatments on tax expenses, net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests. Besides, net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests are not included in segment profits or losses because the segment information is based on profits or losses (pre-tax) attributable to ORIX Corporation Shareholders. Tax expenses are not included in segment profit or loss because the segment performance is assessed based on net income before taxes. The net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests, which are recognized after-tax in the consolidated financial statements, are adjusted to the pre-tax basis. Most of the selling, general and administrative expenses, including personnel expenses that are directly related to the operating activities, are aggregated and recorded in each segment. Gains and losses which are not considered for the evaluation of segment performance, such as the write-down of certain long-lived assets and foreign exchange profits or losses (other profit or loss (net) included ), are treated as corporate profits or losses.

Assets attributed to each segment are net investment in leases, installment loans, investment in operating leases, investment in securities, property under facility operations, investment in affiliates, inventories, advances for finance lease and operating lease (included in other assets), advances for property under facility operations (included in other assets), goodwill, intangible assets acquired in business combinations (included in other assets) and servicing assets (included in other assets). It should be noted that the depreciation expenses of office facilities are included in each segment profit and loss while the corresponding assets are not allocated to each segment’s assets. However, the amount is not significant.

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
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	1,802,142		¥	1,691,739
Revenues related to corporate assets		7,894			8,035
Revenues from inter-segment transactions		(13,881	)		(15,395	)
Total consolidated revenues	¥	1,796,155		¥	1,684,379
Segment profits:
Total profits for segments	¥	297,817		¥	352,927
Corporate profits (losses)		(5,190	)		(6,875	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		2,541			4,406
Total consolidated income before income taxes	¥	295,168		¥	350,458
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	537,262		¥	574,653
Revenues related to corporate assets		1,162			1,805
Revenues from inter-segment transactions		(4,283	)		(4,757	)
Total consolidated revenues	¥	534,141		¥	571,701
Segment profits:
Total profits for segments	¥	74,501		¥	122,538
Corporate profits (losses)		(1,027	)		(2,439	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		749			1,730
Total consolidated income before income taxes	¥	74,223		¥	121,829
	Millions of yen
	March 31, 2019			December 31, 2019
Segment assets:
Total assets for segments	¥	9,997,698		¥	10,859,154
Cash and cash equivalents, restricted cash		1,283,580			1,020,609
Allowance for doubtful receivables on finance leases and probable loan losses		(58,011	)		(56,922	)
Trade notes, accounts and other receivable		280,590			276,405
Other corporate assets		671,060			743,712
Total consolidated assets	¥	12,174,917		¥	12,842,958

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the nine months ended December 31, 2018, and for the nine months ended December 31, 2019:

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,433,808	¥	149,509	¥	212,838	¥	1,796,155
Income before Income Taxes		201,496		55,590		38,082		295,168
For the nine months ended December 31, 2019
	Millions of yen
	Nine months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,314,414	¥	154,143	¥	215,822	¥	1,684,379
Income before Income Taxes		219,836		64,739		65,883		350,458

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the three months ended December 31, 2018, and for the three months ended December 31, 2019:

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	408,515	¥	50,509	¥	75,117	¥	534,141
Income before Income Taxes		47,354		11,626		15,243		74,223
For the three months ended December 31, 2019
	Millions of yen
	Three months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	446,798	¥	52,623	¥	72,280	¥	571,701
Income before Income Taxes		78,153		19,307		24,369		121,829

*1	Mainly the United States
*2	Mainly Asia, Europe, Australasia and the Middle East

The following tables represent the breakdown of revenue by types of contract with customers, products and services, and geographic areas for the nine months ended December 31, 2018, for the nine months ended December 31, 2019:​​​​​​​

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	3,184	¥	3,539	¥	4,876	¥	371,192	¥	0	¥	5,996	¥	388,787	¥	1,167		¥	389,954
Real estate sales		0		0		62,842		0		0		402		63,244		0			63,244
Asset management and servicing		0		0		4,458		328		121		143,910		148,817		(66	)		148,751
Automobile related services		367		45,659		0		139		0		12,752		58,917		(271	)		58,646
Facilities operation		0		0		79,624		0		0		2,944		82,568		0			82,568
Environment and energy services		2,242		0		165		96,520		0		783		99,710		(619	)		99,091
Real estate management and brokerage		0		0		78,466		0		0		0		78,466		(1,314	)		77,152
Real estate contract work		0		0		53,055		0		0		0		53,055		(9	)		53,046
Other		26,545		6,750		3,334		27,975		2,319		14,949		81,872		(1,511	)		80,361
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Geographical location
Japan		32,338		55,675		286,820		495,602		2,440		4,637		877,512		(480	)		877,032
The Americas		0		0		0		0		0		89,901		89,901		0			89,901
Other		0		273		0		552		0		87,198		88,023		(2,143	)		85,880
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Other revenues *		39,379		158,356		70,561		7,878		286,848		183,684		746,706		(3,364	)		743,342
Segment revenues /Total revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142	¥	(5,987	)	¥	1,796,155

For the nine months ended December 31, 2019

	Millions of yen
	Nine months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	4,323	¥	4,734	¥	3,257	¥	197,472	¥	0	¥	3,856	¥	213,642	¥	1,216		¥	214,858
Real estate sales		0		0		64,518		0		0		751		65,269		0			65,269
Asset management and servicing		0		0		5,962		264		122		133,012		139,360		(80	)		139,280
Automobile related services		372		45,727		0		172		0		12,981		59,252		(296	)		58,956
Facilities operation		0		0		57,807		0		0		363		58,170		(0	)		58,170
Environment and energy services		2,298		0		0		105,810		0		787		108,895		(548	)		108,347
Real estate management and brokerage		0		0		79,648		0		0		0		79,648		(1,790	)		77,858
Real estate contract work		0		0		65,338		0		0		0		65,338		0			65,338
Other		26,003		7,389		3,046		28,747		3,052		11,079		79,316		(1,191	)		78,125
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Geographical location
Japan		32,996		57,285		279,576		331,404		3,174		3,146		707,581		(158	)		707,423
The Americas		0		0		0		0		0		76,367		76,367		0			76,367
Other		0		565		0		1,061		0		83,316		84,942		(2,531	)		82,411
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Other revenues *		36,725		166,167		52,463		8,837		352,294		206,363		822,849		(4,671	)		818,178
Segment revenues /Total revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739	¥	(7,360	)	¥	1,684,379

The following tables represent the breakdown of revenue by types of contract with customers, products and services, and geographic areas for the three months ended December 31, 2018, and for the three months ended December 31, 2019:

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,180	¥	1,142	¥	1,544	¥	94,144	¥	0	¥	3,881	¥	101,891	¥	152		¥	102,043
Real estate sales		0		0		20,148		0		0		246		20,394		0			20,394
Asset management and servicing		0		0		1,579		93		37		48,402		50,111		(11	)		50,100
Automobile related services		122		16,027		0		46		0		4,348		20,543		(96	)		20,447
Facilities operation		0		0		26,860		0		0		977		27,837		(0	)		27,837
Environment and energy services		551		0		43		31,158		0		207		31,959		(203	)		31,756
Real estate management and brokerage		0		0		26,350		0		0		0		26,350		(284	)		26,066
Real estate contract work		0		0		21,015		0		0		0		21,015		(9	)		21,006
Other		8,028		2,235		1,098		9,184		843		5,950		27,338		(1,530	)		25,808
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Geographical location
Japan		9,881		19,331		98,637		134,420		880		1,759		264,908		(1,341	)		263,567
The Americas		0		0		0		0		0		30,716		30,716		0			30,716
Other		0		73		0		205		0		31,536		31,814		(640	)		31,174
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Other revenues *		10,769		53,258		14,746		1,732		66,673		62,646		209,824		(1,140	)		208,684
Segment revenues /Total revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262	¥	(3,121	)	¥	534,141

For the three months ended December 31, 2019

	Millions of yen
	Three months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,506	¥	1,528	¥	346	¥	71,352	¥	0	¥	564	¥	75,296	¥	139		¥	75,435
Real estate sales		0		0		19,948		0		0		250		20,198		0			20,198
Asset management and servicing		0		0		2,060		85		42		47,389		49,576		(38	)		49,538
Automobile related services		121		16,254		0		48		0		4,351		20,774		(97	)		20,677
Facilities operation		0		0		16,248		0		0		107		16,355		0			16,355
Environment and energy services		610		0		0		31,591		0		206		32,407		(187	)		32,220
Real estate management and brokerage		0		0		26,782		0		0		0		26,782		(390	)		26,392
Real estate contract work		0		0		22,657		0		0		0		22,657		0			22,657
Other		9,312		2,551		967		9,138		1,087		3,522		26,577		(904	)		25,673
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Geographical location
Japan		11,549		20,142		89,008		111,971		1,129		980		234,779		(679	)		234,100
The Americas		0		0		0		0		0		27,374		27,374		0			27,374
Other		0		191		0		243		0		28,035		28,469		(798	)		27,671
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Other revenues *		12,482		56,468		13,843		4,031		128,759		68,448		284,031		(1,475	)		282,556
Segment revenues /Total revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653	¥	(2,952	)	¥	571,701

* Other revenues include revenues that are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.