•

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 net investment in 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 2018, 2019 and 2020:


	March 31, 2018
	Millions of yen
	Loans												Direct f inanc ing leases			Total
	Consumer			Corporate						Purchased loans*1
	Consumer			Non-recourse loans			Other			Purchased loans*1
Allowance for credit losses:
Beginning balance	¥	18,599		¥	2,951		¥	21,079		¥	6,061		¥	10,537		¥	59,227
Provision (Reversal)		11,922			(173	)		3,814			(539	)		2,241			17,265
Charge-offs		(9,784	)		(2,031	)		(4,643	)		(1,375	)		(2,733	)		(20,566	)
Recoveries		657			—			260			152			32			1,101
Other*2		(198	)		(59	)		(2,103	)		(7	)		12			(2,355	)

Ending balance	¥	21,196		¥	688		¥	18,407		¥	4,292		¥	10,089		¥	54,672

Individually evaluated for impairment		3,020			149			8,295			2,880			—			14,344
Not individually evaluated for impairment		18,176			539			10,112			1,412			10,089			40,328

Financing receivables:
Ending balance	¥	1,739,173		¥	73,305		¥	974,058		¥	18,933		¥	1,194,888		¥	4,000,357

Individually evaluated for impairment		18,911			3,745			19,385			5,101			—			47,142
Not individually evaluated for impairment		1,720,262			69,560			954,673			13,832			1,194,888			3,953,215

	March 31, 2019
	Millions of yen
	Loans											Direct f inanc ing leases			Total
	Consumer			Corporate					Purchased loans*1
	Consumer			Non-recourse loans		Other			Purchased loans*1
Allowance for credit losses :
Beginning balance	¥	21,196		¥	688	¥	18,407		¥	4,292		¥	10,089		¥	54,672
Provision (Reversal)		12,400			213		5,919			(331	)		4,324			22,525
Charge-offs		(13,115	)		0		(4,080	)		(822	)		(2,413	)		(20,430	)
Recoveries		687			0		246			126			158			1,217
Other*3		27			18		170			(79	)		(109	)		27

Ending balance	¥	21,195		¥	919	¥	20,662		¥	3,186		¥	12,049		¥	58,011

Individually evaluated for impairment		3,372			166		8,276			1,917			0			13,731
Not individually evaluated for impairment		17,823			753		12,386			1,269			12,049			44,280

Financing receivables :
Ending balance	¥	1,906,022		¥	99,028	¥	1,201,893		¥	16,416		¥	1,155,632		¥	4,378,991

Individually evaluated for impairment		23,163			4,448		27,452			3,764			0			58,827
Not individually evaluated for impairment		1,882,859			94,580		1,174,441			12,652			1,155,632			4,320,164


	March 31, 2020
	Millions of yen
	Loans												Net investment in leases			Total
	Consumer			Corporate						Purchased loans*1
	Consumer			Non-recourse loans			Other			Purchased loans*1
Allowance for credit losses :
Beginning balance	¥	21,195		¥	919		¥	20,662		¥	3,186		¥	12,049		¥	58,011
Provision (Reversal)		12,254			903			7,988			(24	)		3,304			24,425
Charge-offs		(13,723	)		(1	)		(6,548	)		(1,789	)		(2,859	)		(24,920	)
Recoveries		554			0			133			77			24			788
Other*3		262			(35	)		(877	)		8			(826	)		(1,468	)

Ending balance	¥	20,542		¥	1,786		¥	21,358		¥	1,458		¥	11,692		¥	56,836

Individually evaluated for impairment		3,602			228			8,950			667			0			13,447
Not individually evaluated for impairment		16,940			1,558			12,408			791			11,692			43,389

Financing receivables :
Ending balance	¥	2,171,139		¥	132,081		¥	1,296,854		¥	13,218		¥	1,080,964		¥	4,694,256

Individually evaluated for impairment		26,533			2,466			55,216			1,605			0			85,820
Not individually evaluated for impairment		2,144,606			129,615			1,241,638			11,613			1,080,964			4,608,436

Notes 1:

Loans held for sale are not included in the table above.

2:	New Lease Standard has been adopted since April 1, 2019, and the amounts of investment in direct financing leases have been reclassified to net investment in leases.

*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.

*2	Other mainly includes foreign currency translation adjustments and decrease in allowance related to sales of loans.

*3	Other mainly includes foreign currency translation adjustments.

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 net investment in 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 net investment in 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 net investment in 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, 2019 and 2020:


	March 31, 2019
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	17,593	¥	17,521	¥	0
Consumer borrowers			1,158		1,111		0
	Real estate loans		589		542		0
	Card loans		0		0		0
	Other		569		569		0
Corporate borrowers			16,329		16,304		0
Non-recourse loans	Japan		232		232		0
	The Americas		3,404		3,404		0
Other than Non-recourse loans	Real estate companies in Japan		47		47		0
	Real estate companies in overseas		840		840		0
	Commercial, industrial and other companies in Japan		975		950		0
	Commercial, industrial and other companies in overseas		10,831		10,831		0
Purchased loans			106		106		0
With an allowance recorded *2			41,234		40,234		13,731
Consumer borrowers			22,005		21,401		3,372
	Real estate loans		3,845		3,639		835
	Card loans		3,945		3,937		633
	Other		14,215		13,825		1,904
Corporate borrowers			15,571		15,175		8,442
Non-recourse loans	Japan		0		0		0
	The Americas		812		812		166
Other than Non-recourse loans	Real estate companies in Japan		1,493		1,480		419
	Real estate companies in overseas		0		0		0
	Commercial, industrial and other companies in Japan		6,129		5,748		3,703
	Commercial, industrial and other companies in overseas		7,137		7,136		4,154
Purchased loans			3,658		3,658		1,917

Total		¥	58,827	¥	57,755	¥	13,731

Consumer borrowers			23,163		22,512		3,372

	Real estate loans		4,434		4,181		835

	Card loans		3,945		3,937		633

	Other		14,784		14,394		1,904

Corporate borrowers			31,900		31,479		8,442

Non-recourse loans	Japan		232		232		0

	The Americas		4,216		4,216		166

Other than Non-recourse loans	Real estate companies in Japan		1,540		1,527		419

	Real estate companies in overseas		840		840		0

	Commercial, industrial and other companies in Japan		7,104		6,698		3,703

	Commercial, industrial and other companies in overseas		17,968		17,967		4,154

Purchased loans			3,764		3,764		1,917


	March 31, 2020
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	36,528	¥	36,524	¥	0
Consumer borrowers			997		995		0
	Real estate loans		584		582		0
	Card loans		0		0		0
	Other		413		413		0
Corporate borrowers			35,423		35,421		0
Non-recourse loans	The Americas		1,705		1,705		0
Other than Non-recourse loans	Real estate companies in Japan		2,268		2,267		0
	Real estate companies in overseas		11,231		11,231		0
	Commercial, industrial and other companies in Japan		8,831		8,830		0
	Commercial, industrial and other companies in overseas		11,388		11,388		0
Purchased loans			108		108		0
With an allowance recorded *2			49,292		48,936		13,447
Consumer borrowers			25,536		25,316		3,602
	Real estate loans		5,178		5,162		817
	Card loans		3,932		3,924		632
	Other		16,426		16,230		2,153
Corporate borrowers			22,259		22,123		9,178
Non-recourse loans	The Americas		761		761		228
Other than Non-recourse loans	Real estate companies in Japan		1,233		1,219		374
	Real estate companies in overseas		1,260		1,260		486
	Commercial, industrial and other companies in Japan		3,649		3,527		2,371
	Commercial, industrial and other companies in overseas		15,356		15,356		5,719
Purchased loans			1,497		1,497		667

Total		¥	85,820	¥	85,460	¥	13,447

Consumer borrowers			26,533		26,311		3,602

	Real estate loans		5,762		5,744		817

	Card loans		3,932		3,924		632

	Other		16,839		16,643		2,153

Corporate borrowers			57,682		57,544		9,178

Non-recourse loans	The Americas		2,466		2,466		228

Other than Non-recourse loans	Real estate companies in Japan		3,501		3,486		374

	Real estate companies in overseas		12,491		12,491		486

	Commercial, industrial and other companies in Japan		12,480		12,357		2,371

	Commercial, industrial and other companies in overseas		26,744		26,744		5,719

Purchased loans			1,605		1,605		667

Note:

Loans held for sale are not included in the table above.

*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

real es

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 2018, 2019 and 2020:


	March 31, 2018
		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		¥	17,799	¥	402	¥	300
	Real estate loans		4,143		191		121
	Card loans		4,081		60		52
	Other		9,575		151		127
Corporate borrowers			30,661		204		196
Non-recourse loans	Japan		210		8		8
	The Americas		4,972		6		6
Other than Non-recourse loans	Real estate companies in Japan		3,549		52		52
	Real estate companies in overseas		2,108		1		—
	Commercial, industrial and other companies in Japan		10,698		136		129
	Commercial, industrial and other companies in overseas		9,124		1		1
Purchased loans			6,304		18		3

Total		¥	54,764	¥	624	¥	499


	March 31, 2019
		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		¥	20,601	¥	392	¥	356
	Real estate loans		4,099		133		129
	Card loans		4,020		59		52
	Other		12,482		200		175
Corporate borrowers			25,381		289		276
Non-recourse loans	Japan		247		7		7
	The Americas		2,851		0		0
Other than Non-recourse loans	Real estate companies in Japan		1,606		38		38
	Real estate companies in overseas		876		0		0
	Commercial, industrial and other companies in Japan		5,943		106		95
	Commercial, industrial and other companies in overseas		13,858		138		136
Purchased loans			4,678		88		87

Total		¥	50,660	¥	769	¥	719



	March 31, 2020
		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		¥	24,721	¥	446	¥	403
	Real estate loans		5,077		141		137
	Card loans		3,926		57		50
	Other		15,718		248		216
Corporate borrowers			37,103		121		119
Non-recourse loans	Japan		137		2		2
	The Americas		2,954		0		0
Other than Non-recourse loans	Real estate companies in Japan		1,621		30		30
	Real estate companies in overseas		5,785		0		0
	Commercial, industrial and other companies in Japan		6,754		76		75
	Commercial, industrial and other companies in overseas		19,852		13		12
Purchased loans			3,108		139		139

Total		¥	64,932	¥	706	¥	661

Note:

Loans held for sale are not included in the table above.

*	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, 2019 and 2020:


	March 31, 2019
		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		¥	1,870,447	¥	23,163	¥	12,412	¥	35,575	¥	1,906,022
	Real estate loans		1,593,005		4,434		1,388		5,822		1,598,827
	Card loans		239,523		3,945		1,671		5,616		245,139
	Other		37,919		14,784		9,353		24,137		62,056
Corporate borrowers			1,269,021		31,900		0		31,900		1,300,921
Non-recourse loans	Japan		48,881		232		0		232		49,113
	The Americas		45,699		4,216		0		4,216		49,915
Other than Non-recourse loans	Real estate companies in Japan		287,311		1,540		0		1,540		288,851
	Real estate companies in overseas		65,358		840		0		840		66,198
	Commercial, industrial and other companies in Japan		259,572		7,104		0		7,104		266,676
	Commercial, industrial and other companies in overseas		562,200		17,968		0		17,968		580,168
Purchased loans			12,652		3,764		0		3,764		16,416
Direct Financ ing leases			1,140,825		0		14,807		14,807		1,155,632
	Japan		787,081		0		6,158		6,158		793,239
	Overseas		353,744		0		8,649		8,649		362,393

Total		¥	4,292,945	¥	58,827	¥	27,219	¥	86,046	¥	4,378,991


	March 31, 2020
		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		¥	2,134,342	¥	26,533	¥	10,264	¥	36,797	¥	2,171,139
	Real estate loans		1,877,227		5,762		1,370		7,132		1,884,359
	Card loans		218,011		3,932		1,708		5,640		223,651
	Other		39,104		16,839		7,186		24,025		63,129
Corporate borrowers			1,371,253		57,682		0		57,682		1,428,935
Non-recourse loans	Japan		48,566		0		0		0		48,566
	The Americas		81,049		2,466		0		2,466		83,515
Other than Non-recourse loans	Real estate companies in Japan		297,483		3,501		0		3,501		300,984
	Real estate companies in overseas		119,403		12,491		0		12,491		131,894
	Commercial, industrial and other companies in Japan		242,831		12,480		0		12,480		255,311
	Commercial, industrial and other companies in overseas		581,921		26,744		0		26,744		608,665
Purchased loans			11,613		1,605		0		1,605		13,218
Net investment in leases			1,065,618		0		15,346		15,346		1,080,964
	Japan		741,636		0		5,971		5,971		747,607
	Overseas		323,982		0		9,375		9,375		333,357

Total		¥	4,582,826	¥	85,820	¥	25,610	¥	111,430	¥	4,694,256


Notes		1 : Loans held for sale are not included in the table above.
		2 : New Lease Standard has been adopted since April 1, 2019, and the amounts of investment in direct financing leases have been reclassified to net investment in leases.

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 real estate loans, card loans and other, which are not restructured and net investment in 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, 2019 and 2020:


	March 31, 2019
		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		¥	5,783	¥	15,647	¥	21,430	¥	1,906,022	¥	15,647
	Real estate loans		1,721		2,654		4,375		1,598,827		2,654
	Card loans		548		2,127		2,675		245,139		2,127
	Other		3,514		10,866		14,380		62,056		10,866
Corporate borrowers			4,960		13,753		18,713		1,300,921		27,979
Non-recourse loans	Japan		0		0		0		49,113		0
	The Americas		2,925		2,457		5,382		49,915		3,818
Other than Non-recourse loans	Real estate companies in Japan		0		552		552		288,851		552
	Real estate companies in overseas		2		0		2		66,198		840
	Commercial, industrial and other companies in Japan		78		4,656		4,734		266,676		4,656
	Commercial, industrial and other companies in overseas		1,955		6,088		8,043		580,168		18,113
Direct fin ancing leases			7,181		14,807		21,988		1,155,632		14,807
	Japan		679		6,158		6,837		793,239		6,158
	Overseas		6,502		8,649		15,151		362,393		8,649

Total		¥	17,924	¥	44,207	¥	62,131	¥	4,362,575	¥	58,433


	March 31, 2020
		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		¥	6,604	¥	13,607	¥	20,211	¥	2,171,139	¥	13,607
	Real estate loans		1,863		2,469		4,332		1,884,359		2,469
	Card loans		595		2,114		2,709		223,651		2,114
	Other		4,146		9,024		13,170		63,129		9,024
Corporate borrowers			3,365		26,999		30,364		1,428,935		44,622
Non-recourse loans	Japan		0		0		0		48,566		0
	The Americas		0		2,466		2,466		83,515		2,466
Other than Non-recourse loans	Real estate companies in Japan		0		586		586		300,984		586
	Real estate companies in overseas		1		12,386		12,387		131,894		12,491
	Commercial, industrial and other companies in Japan		226		2,409		2,635		255,311		2,409
	Commercial, industrial and other companies in overseas		3,138		9,152		12,290		608,665		26,670
Net investment in leases			13,702		15,346		29,048		1,080,964		15,346
	Japan		2,755		5,971		8,726		747,607		5,971
	Overseas		10,947		9,375		20,322		333,357		9,375

Total		¥	23,671	¥	55,952	¥	79,623	¥	4,681,038	¥	73,575


Notes		1 : Loans held for sale are not included in the table above.
		2 : New Lease Standard has been adopted since April 1, 2019, and the amounts of investment in direct financing leases have been reclassified to net investment in leases.

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

net investment in

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 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 2018, 2019 and 2020:


	March 31, 2018
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	9,632	¥	7,015
	Real estate loans		12		12
	Card loans		2,169		1,589
	Other		7,451		5,414
Corporate borrowers			7,983		7,872
Non-recourse loans	The Americas		3,460		3,460
Other than Non-recourse loans	Commercial, industrial and other companies in Japan		111		—
Other than Non-recourse loans	Commercial, industrial and other companies in overseas		4,412		4,412

Total		¥	17,615	¥	14,887


	March 31, 2019
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	13,280	¥	9,294
	Real estate loans		222		105
	Card loans		2,106		1,393
	Other		10,952		7,796
Corporate borrowers			6,002		6,001
Other than Non-recourse loans	Commercial, industrial and other companies in overseas		6,002		6,001

Total		¥	19,282	¥	15,295


	March 31, 2020
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	12,041	¥	9,025
	Real estate loans		19		17
	Card loans		1,899		1,396
	Other		10,123		7,612
Corporate borrowers			4,785		4,779
Non-recourse loans	The Americas		751		751
Other than Non-recourse loans	Commercial, industrial and other companies in overseas		4,034		4,028

Total		¥	16,826	¥	13,804

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.

As of March 31, 2020, due to the spread of the COVID-19, although the

Company

and its subsidiaries accepted payment deferral requests other than the above mentioned troubled debt restructuring, those financing receivables are not included in the above mentioned troubled debt restructuring as the Company and its subsidiaries determined those receivables based on the definition of troubled debt restructuring.

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2018 and for which there was a payment default during fiscal 2018:


	March 31, 2018
		Millions of yen
Portfolio segment	Class	Recorded investment
Consumer borrowers		¥	99
	Card loans		25
	Other		74
Corporate borrowers			7,872
Non-recourse loans	The Americas		3,460
Other than Non-recourse loans	Commercial, industrial other companies in overseas		4,412

Total		¥	7,971

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2019 and for which there was a payment default during fiscal 2019:


	March 31, 2019
		Millions of yen
Portfolio segment	Class	Recorded investment
Consumer borrowers		¥	2,013
	Card loans		22
	Other		1,991

Total		¥	2,013

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2020 and for which there was a payment default during fiscal 2020:


	March 31, 2020
		Millions of yen
Portfolio segment	Class	Recorded investment
Consumer borrowers		¥	1,687
	Card loans		22
	Other		1,665
Consumer borrowers			25
Other than Non-recourse loans	Commercial, industrial and other companies in overseas		25

Total		¥	1,712

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.

As of March 31, 2019 and 2020, there were no foreclosed residential real estate properties. The

carrying

amounts of installment loans in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure were ¥251 million and ¥109 million as of March 31, 2019 and 2020, respectively.