Write-Downs of Long-Lived Assets

12 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Write-Downs of Long-Lived Assets

27. Write-Downs of Long-Lived Assets

The Company and its subsidiaries perform tests for recoverability on long-lived assets classified as held and used for which events or changes in circumstances indicated that the assets might be impaired. The Company and its subsidiaries consider an asset’s carrying amount as not recoverable when such carrying amount exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. The net carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount.

As of March 31, 2019 and 2020, the long-lived assets classified as held for sale in the accompanying consolidated balance sheets are as follows.

	Millions of yen
	2019		2020
Investment in operating leases	¥	24,956	¥	5,208
Property under facility operations		44,473		436
Other assets		19		0

The long-lived assets classified as held for sale as of March 31, 2019 are included in Corporate Financial Services segment, Real Estate segment, Investment and Operation segment and Overseas Business segment. The

long-lived assets classified as held for sale as of March 31, 2020 are included in Real Estate segment and Investment and Operation segment.

The Company and its subsidiaries determine the fair value 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.

During fiscal 2018, 2019 and 2020, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥5,525 million, ¥2,418 million and ¥3,043 million, respectively, which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.

Fiscal Year ended March 31, 2018	Write-downs of the assets held for sale				Write-downs due to decline in estimated future cash flows
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Office buildings	¥	190		2	¥	0		—
Commercial facilities other than office buildings		1,134		2		297		3
Others*		538		—		3,366		—
Total	¥	1,862		—	¥	3,663		—
Fiscal Year ended March 31, 2019	Write-downs of the assets held for sale				Write-downs due to decline in estimated future cash flows
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Commercial facilities other than office buildings	¥	712		1	¥	16		1
Others*		0		—		1,690		—
Total	¥	712		—	¥	1,706		—
Fiscal Year ended March 31, 2020	Write-downs of the assets held for sale				Write-downs due to decline in estimated future cash flows
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Commercial facilities other than office buildings	¥	0		—	¥	529		2
Condominiums		159		1		77		3
Land undeveloped or under construction		0		—		2,083		2
Others*		0		—		195		—
Total	¥	159		—	¥	2,884		—

* For the “Others”, the number of properties are omitted. Write-downs of long-lived assets for fiscal 2018, 2019 and 2020 include write-downs of ¥2,138 million, ¥825 million and ¥109 million of hotels, respectively.

Breakdowns of these amounts by segment are provided in Note 34 “Segment Information.”