Goodwill and Other Intangible Assets

12 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

16. Goodwill and Other Intangible Assets

Changes in goodwill by reportable segment for fiscal 2018, 2019 and 2020 are as follows:

	Millions of yen
	Corporate Financial Services			Maintenance Leasing			Real Estate			Investment and Operation			Retail		Overseas Business			Total
Balance at March 31, 2017
Goodwill	¥	56,203		¥	282		¥	32,239		¥	68,853		¥	15,424	¥	181,133		¥	354,134
Accumulated impairment losses		(837	)		0			(8,708	)		(39	)		0		(3,372	)		(12,956	)
		55,366			282			23,531			68,814			15,424		177,761			341,178
Acquired		0			9,258			0			13,517			0		20,158			42,933
Impairment		0			0			0			0			0		0			0
Other (net)*		0			0			83			(20,756	)		0		5,187			(15,486	)
Balance at March 31, 2018
Goodwill		56,203			9,540			32,322			61,614			15,424		206,478			381,581
Accumulated impairment losses		(837	)		0			(8,708	)		(39	)		0		(3,372	)		(12,956	)
		55,366			9,540			23,614			61,575			15,424		203,106			368,625
Acquired		0			0			0			27,569			0		44,897			72,466
Impairment		0			0			0			0			0		0			0
Other (net)*		0			(270	)		(7,231	)		34			0		(2,945	)		(10,412	)
Balance at March 31, 2019
Goodwill		56,203			9,270			16,383			89,217			15,424		248,430			434,927
Accumulated impairment losses		(837	)		0			0			(39	)		0		(3,372	)		(4,248	)
		55,366			9,270			16,383			89,178			15,424		245,058			430,679
Acquired		1,299			0			0			26,705			672		17,846			46,522
Impairment		0			0			0			0			0		0			0
Other (net)*		0			0			(111	)		(22,172	)		0		(11,100	)		(33,383	)
Balance at March 31, 2020
Goodwill		57,502			9,270			16,272			93,750			16,096		255,176			448,066
Accumulated impairment losses		(837	)		0			0			(39	)		0		(3,372	)		(4,248	)
	¥	56,665		¥	9,270		¥	16,272		¥	93,711		¥	16,096	¥	251,804		¥	443,818

Note:	The Company changed the segment classification of DAIKYO from Investment and Operation segment to Real Estate segment from  fiscal 2019. As a result of this change, the amounts as of the end of and for the previous fiscal year have been retrospectively reclassified.
* Other includes foreign currency translation adjustments, decreases due to sale of ownership interest in subsidiaries and certain other reclassifications.

The Company and its subsidiaries recognized no impairment loss on goodwill during fiscal 2018, 2019 and 2020.

Other intangible assets at March 31, 2019 and 2020 consist of the following:

	Millions of yen
	2019			2020
Indefinite-lived intangible assets:
Trade names	¥	78,252		¥	69,321
Asset management contracts		146,981			141,069
Others		3,847			4,192
		229,080			214,582
Intangible assets subject to amortization:
Software		111,767			119,666
Customer relationships		130,971			137,923
Others		92,306			88,189
		335,044			345,778
Accumulated amortization		(137,026	)		(155,868	)
Net		198,018			189,910
	¥	427,098		¥	404,492

The aggregate amortization expenses for intangible assets are ¥30,959 million, ¥31,752 million and ¥32,189 million in fiscal 2018, 2019 and 2020, respectively.

The estimated amortization expenses for each of five succeeding fiscal years are ¥29,076 million in fiscal 2021, ¥26,273 million in fiscal 2022, ¥21,713 million in fiscal 2023, ¥18,004 million in fiscal 2024 and ¥14,924 million in fiscal 2025, respectively.

Intangible assets subject to amortization increased during fiscal 2020 are ¥47,909 million. They mainly consist of ¥16,603 million of software and ¥15,179 million of customer relationships recognized in acquisitions. The weighted average amortization periods for the software and the customer relationships recognized in acquisitions are 5 years and 17 years, respectively.

As a result of the impairment test, the Company and its subsidiaries recognized an impairment loss of ¥194 million on intangible assets included in Investment and Operation segment during fiscal 2018. The Company and its subsidiaries recognized an impairment loss of ¥606 million on intangible assets included in Overseas Business segment during fiscal 2019. The Company and its subsidiaries recognized an impairment loss of ¥329 million on intangible assets included in Corporate Financial Services segment during fiscal 2020. These impairment losses for fiscal 2018 and 2019 are included in other (income) and expense in the consolidated statements of income, and the impairment loss for fiscal 2020 is included in selling, general and administrative expenses in the consolidated statements of income. These impairment losses are recognized due to the reduction in the estimated future cash flow, which brought the fair values of the intangible assets below its carrying amount. The fair values of the intangible assets were measured using the discounted cash flow methodologies.