Leases (Tables)

12 Months Ended

Mar. 31, 2022

Lease income for fiscal 2020, 2021 and 2022 are as follows:


	Millions of yen
	Fiscal Year ended March 31, 2020		Fiscal Year ended March 31, 2021		Fiscal Year ended March 31, 2022
Lease income – net investment in leases
Interest income	¥	72,663	¥	69,718	¥	73,379
Other		2,412		2,113		2,598
Lease income – operating leases*		430,665		397,065		450,454

Total lease income	¥	505,740	¥	468,896	¥	526,431

Gains from the disposition of real estate under operating leases included in operating lease revenues were ¥30,154 million, ¥15,459 million and ¥17,912 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues were ¥20,918 million, ¥10,899 million and ¥22,236 million for fiscal 2020, 2021 and 2022, respectively.

Net investment in lease direct financing and sales type

Net investment in leases at March 31, 2021 and 2022 consists of the following:


	Millions of yen		Millions of yen
	March 31, 2021		March 31, 2022
Lease receivables	¥	998,050	¥	1,029,157
Unguaranteed residual value		29,245		27,361
Initial direct costs		2,223		1,455

Total	¥	1,029,518	¥	1,057,973

Investment in Operating Leases

Investment in operating leases at March 31, 2021 and 2022 consists of the following:


	Millions of yen
	2021			2022
Transportation equipment	¥	1,364,559		¥	1,438,621
Measuring and information-related equipment		307,010			326,680
Real estate		291,917			307,338
Other		43,507			71,935

		2,006,993			2,144,574
Accumulated depreciation		(741,022	)		(819,839	)

Net		1,265,971			1,324,735
Right-of-use assets		114,268			107,742
Accrued rental receivables		28,259			31,639
Allowance for doubtful receivables on operating leases		(309	)		(914	)

Total	¥	1,408,189		¥	1,463,202

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

Depreciation and various expenses for fiscal 2020, 2021 and 2022 are as follows:


	Millions of yen
	2020		2021		2022
Depreciation expenses	¥	209,586	¥	217,212	¥	231,643
Various expenses		80,018		78,416		90,427

Total	¥	289,604	¥	295,628	¥	322,070

Lease Receivables of the Operating Lease Contracts

Remaining lease receivables of net investment in leases (including residual value guarantees) range up to 27 years at March 31, 2022. Remaining lease receivables of the operating lease contracts range up to 59 years at March 31, 2022. At March 31, 2022, 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
2023	¥	442,235		¥	317,352
2024		287,329			197,240
2025		185,993			127,457
2026		107,983			74,731
2027		63,018			40,814
Thereafter		64,976			106,272

Total lease payments		1,151,534		¥	863,866

Less imputed interest		(122,377	)

Total lease receivables	¥	1,029,157

Component of Lease Expense

The component of lease expense for fiscal 2020, 2021 and 2022 are as follows:


	Millions of yen			Millions of yen			Millions of yen
	Year ended March 31, 2020			Year ended March 31, 2021			Year ended March 31, 2022
Finance lease cost
Depreciation expenses of right-of-use assets	¥	743		¥	359		¥	534
Interest expenses of lease liabilities		302			131			106

		1,045			490			640

Operating lease cost		42,427			42,964			49,725
Short-term lease cost		2,633			3,347			3,034
Variable lease cost		948			230			65
Sublease income		(3,688	)		(4,142	)		(3,192	)

Total	¥	43,365		¥	42,889		¥	50,272

Cash Flow Information Related To Lease

Supplemental cash flow information related to leases for fiscal 2020, 2021 and 2022 are as follows:


	Millions of yen
	Year Ended March 31, 2020
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	302	¥	44,610
Cash flows from financing activities		494		0

Right-of-use assets obtained in exchange for lease liabilities:	¥	531	¥	39,775


	Millions of yen
	Year Ended March 31, 2021
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	131	¥	41,680
Cash flows from financing activities		674		0

Right-of-use assets obtained in exchange for lease liabilities:	¥	228	¥	55,344


	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

Balance Sheet Information Related to Lessee Leases

Supplemental balance sheet information related to lessee leases at March 31, 2021 and 2022 are as follows:


	Millions of yen, except lease term and discount rate
	March 31, 2021
	Finance leases			Operating leases
Investment in Operating Leases	¥	257		¥	114,011
Property under Facility Operations		1,990			69,291
Office Facilities		487			108,717

Total right-of-use assets		2,734			292,019

Other Liabilities		3,417			289,890

Total lease liabilities	¥	3,417		¥	289,890

Weighted average remaining lease term		7years			12years

Weighted average discount rate		4.4	%		1.1	%


	Millions of yen, except lease term and discount rate
	March 31, 2022
	Finance leases			Operating leases
Investment in Operating Leases	¥	4,955		¥	102,787
Property under Facility Operations		1,763			68,149
Office Facilities		375			104,157

Total right-of-use assets		7,093			275,093

Other Liabilities		7,698			275,199

Total lease liabilities	¥	7,698		¥	275,199

Weighted average remaining lease term		25years			11years

Weighted average discount rate		2.5	%		1.1	%

Operating And Finance Lease Liability Maturity

At March 31, 2022, 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
2023	¥	827		¥	47,743
2024		783			38,185
2025		696			32,436
2026		383			29,374
2027		272			23,544
Thereafter		7,405			119,722

Total lease payments		10,366			291,004

Less imputed interest		(2,668	)		(15,805	)

Total lease liabilities	¥	7,698		¥	275,199