Leases (Tables)

12 Months Ended

Mar. 31, 2024

Leases [Abstract]

Lease Income

Lease income for fiscal 2022, 2023 and 2024 are as follows:

	Millions of yen
	Fiscal Year ended March 31, 2022		Fiscal Year ended March 31, 2023		Fiscal Year ended March 31, 2024
Lease income – net investment in leases
Interest income	¥	73,379	¥	80,810	¥	87,189
Other		2,598		2,568		2,500
Lease income – operating leases*		450,454		499,541		535,490
Total lease income	¥	526,431	¥	582,919	¥	625,179

* Gains from the disposition of real estate under operating leases included in operating lease revenues were ¥17,912 million, ¥25,699 million and ¥20,960 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues were ¥22,236 million, ¥31,233 million and ¥32,481 million for fiscal 2022, 2023 and 2024, respectively.

Net investment in lease direct financing and sales type

Net investment in leases at March 31, 2023 and 2024 consists of the following:

	Millions of yen
	March 31, 2023		March 31, 2024
Lease receivables*	¥	1,057,990	¥	1,124,232
Unguaranteed residual value		28,145		29,555
Initial direct costs		1,428		1,236
Total	¥	1,087,563	¥	1,155,023

* Some lease contracts are subject to government assistance for the customers’ acquisition of leased assets, mainly for the purpose of environmental measures. This government assistance is accounted for as a reduction of lease receivables of lease contracts when the Company and its subsidiaries confirm receipt of cash. The amount of a reduction of lease receivables were ¥28,532 million and ¥31,108 million as of March 31, 2023 and 2024, respectively. Benefits of the government assistance are attributed to the customers by the reduced lease payments. Furthermore, remaining term of government assistance contracts ranges up to 11 years and 14 years as of March 31, 2023 and 2024, respectively. And when receiving the government assistance, restrictions mainly on disposal of property and duty of keeping documents occur for a certain period of time.

Investment in Operating Leases

Investment in operating leases at March 31, 2023 and 2024 consists of the following:

	Millions of yen
	March 31, 2023			March 31, 2024
Transportation equipment	¥	1,521,865		¥	1,892,410
Measuring and information-related equipment		342,591			377,195
Real estate		319,074			308,989
Other		79,633			87,525
		2,263,163			2,666,119
Accumulated depreciation		(865,942	)		(936,001	)
Net		1,397,221			1,730,118
Right-of-use assets		98,417			87,359
Accrued rental receivables		45,123			54,230
Allowance for doubtful receivables on operating leases		(3,583	)		(3,133	)
Total	¥	1,537,178		¥	1,868,574

Depreciation and Various Expenses (Insurance, Property Tax and Other) of Operating Lease

Depreciation and various expenses for fiscal 2022, 2023 and 2024 are as follows:

	Millions of yen
	2022		2023		2024
Depreciation expenses	¥	231,643	¥	245,180	¥	261,723
Various expenses		90,427		91,807		95,037
Total	¥	322,070	¥	336,987	¥	356,760

Lease Receivables of the Operating Lease Contracts

Remaining lease receivables of net investment in leases (including residual value guarantees) range up to 18 years at March 31, 2024. Remaining lease receivables of the operating lease contracts range up to 57 years at March 31, 2024. At March 31, 2024, the amounts due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending March 31,	Net investment in leases			Operating leases
2025	¥	476,700		¥	381,709
2026		322,930			241,771
2027		215,653			162,414
2028		123,055			94,841
2029		72,827			53,333
Thereafter		54,652			135,000
Total lease payments		1,265,817		¥	1,069,068
Less imputed interest		(141,585	)
Total lease receivables	¥	1,124,232

Component of Lease Expense

The component of lease expense for fiscal 2022, 2023 and 2024 are as follows:

	Millions of yen			Millions of yen			Millions of yen
	Year ended March 31, 2022			Year ended March 31, 2023			Year ended March 31, 2024
Finance lease cost
Depreciation expenses of right-of-use assets	¥	534		¥	536		¥	580
Interest expenses of lease liabilities		106			150			84
		640			686			664
Operating lease cost		49,725			52,279			53,405
Short-term lease cost		3,034			2,742			3,048
Variable lease cost		65			1,297			2,721
Sublease income		(3,192	)		(8,819	)		(9,512	)
Total	¥	50,272		¥	48,185		¥	50,326

Cash Flow Information Related To Lease

Supplemental cash flow information related to leases for fiscal 2022, 2023 and 2024 are as follows:

	Millions of yen
	Year Ended March 31, 2022
	Finance leases			Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	106		¥	47,321
Cash flows from financing activities		878			0
Right-of-use assets obtained in exchange for lease liabilities:	¥	278		¥	37,816

	Millions of yen
	Year Ended March 31, 2023
	Finance leases			Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	150		¥	50,369
Cash flows from financing activities		781			0
Right-of-use assets obtained in exchange for lease liabilities:	¥	93		¥	39,823

	Millions of yen
	Year Ended March 31, 2024
	Finance leases			Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	84		¥	52,759
Cash flows from financing activities		664			0
Right-of-use assets obtained in exchange for lease liabilities:	¥	1,481		¥	27,427

Balance Sheet Information Related to Lessee Leases

Supplemental balance sheet information related to lessee leases at March 31, 2023 and 2024 are as follows:

	Millions of yen, except lease term and discount rate
	March 31, 2023
	Finance leases			Operating leases
Investment in Operating Leases	¥	4,782		¥	93,635
Property under Facility Operations		1,394			85,036
Office Facilities		368			100,744
Total right-of-use assets		6,544			279,415
Other Liabilities		7,129			280,829
Total lease liabilities	¥	7,129		¥	280,829
Weighted average remaining lease term		37years			11years
Weighted average discount rate		2.4	%		1.3	%

	Millions of yen, except lease term and discount rate
	March 31, 2024
	Finance leases			Operating leases
Investment in Operating Leases	¥	4,685		¥	82,674
Property under Facility Operations		2,306			72,284
Office Facilities		293			94,932
Total right-of-use assets		7,284			249,890
Other Liabilities		7,877			252,344
Total lease liabilities	¥	7,877		¥	252,344
Weighted average remaining lease term		35years			11years
Weighted average discount rate		2.2	%		1.7	%

Operating And Finance Lease Liability Maturity

At March 31, 2024, the amounts of lease liabilities related to lessee leases due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending March 31,	Finance leases			Operating leases
2025	¥	875		¥	50,599
2026		793			39,445
2027		527			30,366
2028		388			25,168
2029		361			21,813
Thereafter		8,161			106,525
Total lease payments		11,105			273,916
Less imputed interest		(3,228	)		(21,572	)
Total lease liabilities	¥	7,877		¥	252,344