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Leases

12 Months Ended

Mar. 31, 2017

8. Leases:

Nomura as lessor

Nomura leases office buildings and aircraft in Japan and overseas. These leases are classified as operating leases and the related assets are stated at cost, net of accumulated depreciation, except for land, which is stated at cost in the consolidated balance sheets and reported within Other assets—Office buildings, land, equipment and facilities.

The following table presents the types of assets which Nomura leases under operating leases as of March 31, 2016 and 2017.


	Millions of yen
	March 31
	2016							2017
	Cost		Accumulated depreciation			Net carrying amount		Cost		Accumulated depreciation			Net carrying amount
Real estate⁽¹⁾	¥	3,093	¥	(1,502	)	¥	1,591	¥	3,090	¥	(1,612	)	¥	1,478
Aircraft		4,655		(1,177	)		3,478		15,110		(56	)		15,054

Total	¥	7,748	¥	(2,679	)	¥	5,069	¥	18,200	¥	(1,668	)	¥	16,532

(1)	Cost, accumulated depreciation and net carrying amounts include amounts relating to real estate space utilized by Nomura.

Nomura recognized rental income of ¥1,659 million, ¥1,229 million and ¥717 million for the years ended March 31, 2015, 2016 and 2017, respectively in the consolidated statements of income within Revenue—Other.

The future minimum lease payments to be received on noncancellable operating leases as of March 31, 2017 were ¥15,502 million and these future minimum lease payments to be received are scheduled as below:


	Millions of yen
	Total		Years of receipt
	Total		Less than 1 year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years
Minimum lease payments to be received	¥	15,502	¥	1,483	¥	1,480	¥	1,480	¥	1,480	¥	1,480	¥	8,099

Nomura as lessee

Nomura leases its office spaces, certain employees’ residential facilities and other facilities in Japan and overseas primarily under cancelable operating lease agreements which are customarily renewed upon expiration. Nomura also leases certain equipment and facilities in Japan and overseas under noncancellable operating lease agreements. Rental expenses, net of sublease rental income, for the years ended March 31, 2015, 2016 and 2017 were ¥47,217 million, ¥49,000 million and ¥42,919 million, respectively.

The following table presents the future minimum lease payments under noncancellable operating leases with remaining terms exceeding one year as of March 31, 2017:


	Millions of yen
	March 31
	2017
Total minimum lease payments	¥	127,818
Less: Sublease rental income		(13,046	)

Net minimum lease payments	¥	114,772

The future minimum lease payments above are scheduled as below as of March 31, 2017:


	Millions of yen
	Total		Years of payment
	Total		Less than 1 year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years
Minimum lease payments	¥	127,818	¥	17,075	¥	15,102	¥	11,852	¥	10,058	¥	7,877	¥	65,854

Nomura leases certain equipment and facilities in Japan and overseas under capital lease agreements. If the lease is classified as a capital lease, Nomura recognizes the real estate at the lower of its fair value or present value of minimum lease payments, which is reported within Other Assets—Office buildings, land, equipment and facilities in the consolidated balance sheets. The amounts of capital lease assets as of March 31, 2016 and 2017 were ¥31,030 million and ¥27,067 million, respectively and accumulated depreciations on such capital lease assets as of March 31, 2016 and 2017 were ¥6,784 million and ¥7,225 million, respectively.

The following table presents the future minimum lease payments under capital leases as of March 31, 2017:


	Millions of yen
	March 31
	2017
Total minimum lease payments	¥	46,579
Less: Amount representing interest		(26,890	)

Present value of net lease payments	¥	19,689

The future minimum lease payments above are scheduled as below as of March 31, 2017:


	Millions of yen
	Total		Years of payment
	Total		Less than 1 year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years
Minimum lease payments	¥	46,579	¥	3,666	¥	3,502	¥	3,583	¥	3,638	¥	3,641	¥	28,549

Certain leases contain renewal options or escalation clauses providing for increased rental payments based upon maintenance, utilities and tax increases.