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Other assets-Other / Other liabilities

12 Months Ended

Mar. 31, 2017

Other assets-Other / Other liabilities

9. Other assets—Other / Other liabilities:

The following table presents components of Other assets—Other and Other liabilities in the consolidated balance sheets as of March 31, 2016 and 2017.


	Millions of yen
	March 31
	2016		2017
Other assets—Other:
Securities received as collateral	¥	318,112	¥	447,272
Goodwill and other intangible assets		110,532		104,821
Deferred tax assets		36,130		21,825
Investments in equity securities for other than operating purposes⁽¹⁾		130,357		245,600
Prepaid expenses		30,997		10,699
Other		348,383		338,589

Total	¥	974,511	¥	1,168,806

Other liabilities:
Obligation to return securities received as collateral	¥	318,112	¥	447,272
Accrued income taxes		32,947		24,213
Other accrued expenses and provisions		389,338		397,605
Other⁽²⁾		460,250		439,420

Total	¥	1,200,647	¥	1,308,510

(1)

Includes marketable and non-marketable equity securities held for other than trading or operating purposes. These investments were comprised of listed equity securities and unlisted equity securities of ¥109,887 million and ¥20,470 million respectively, as of March 31, 2016, and ¥117,476 million and ¥128,124 million respectively, as of March 31, 2017. These securities are carried at fair value, with changes in fair value recognized within Revenue—Other in the consolidated statements of income.

(2)

Includes liabilities relating to investment contracts underwritten by Nomura’s insurance subsidiary. As of March 31, 2016 and 2017, carrying values were ¥242,496 million and ¥224,418 million, respectively, and estimated fair values were ¥244,246 million and ¥225,563 million, respectively. Fair value was estimated using DCF valuation techniques and using valuation inputs which would be generally classified in Level 3 of the fair value hierarchy.

Goodwill is recognized upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired. Subsequent to initial recognition, goodwill is not amortized but is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate there may be impairment.

The following table presents changes in goodwill, which are reported in the consolidated balance sheets within Other assets—Other for the years ended March 31, 2016 and 2017.


	Millions of yen
	Year ended March 31, 2016
	Beginning of year							Changes during year					End of year
	Gross carrying amount		Accumulated Impairment			Net carrying amount		Impairment		Other⁽¹⁾			Gross carrying amount		Accumulated Impairment			Net carrying amount
Wholesale	¥	97,529	¥	(11,817	)	¥	85,712	¥	—	¥	(5,419	)	¥	92,110	¥	(11,817	)	¥	80,293
Other		6,612		(6,134	)		478		—		(8	)		470		—			470

Total	¥	104,141	¥	(17,951	)	¥	86,190	¥	—	¥	(5,427	)	¥	92,580	¥	(11,817	)	¥	80,763


	Millions of yen
	Year ended March 31, 2017
	Beginning of year							Changes during year					End of year
	Gross carrying amount		Accumulated Impairment			Net carrying amount		Impairment		Other⁽¹⁾			Gross carrying amount		Accumulated Impairment			Net carrying amount
Wholesale	¥	92,110	¥	(11,817	)	¥	80,293	¥	—	¥	(357	)	¥	91,753	¥	(11,817	)	¥	79,936
Other		470		—			470		—		1			471		—			471

Total	¥	92,580	¥	(11,817	)	¥	80,763	¥	—	¥	(356	)	¥	92,224	¥	(11,817	)	¥	80,407

(1)	Includes currency translation adjustments.

The following table presents finite-lived intangible assets by type as of March 31, 2016 and 2017.


	Millions of yen
	March 31, 2016							March 31, 2017
	Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount
Client relationships	¥	68,239	¥	(47,655	)	¥	20,584	¥	67,942	¥	(52,628	)	¥	15,314
Other		503		(315	)		188		493		(360	)		133

Total	¥	68,742	¥	(47,970	)	¥	20,772	¥	68,435	¥	(52,988	)	¥	15,447

Amortization expenses for the years ended March 31, 2015, 2016 and 2017 were ¥4,979 million, ¥5,181 million and ¥4,535 million, respectively. Estimated amortization expenses for the next five years are shown below.


	Millions of yen
Year ending March 31	Estimated amortization expense
2018	¥	5,123
2019		3,518
2020		2,402
2021		2,402
2022		2,002

The amounts of indefinite-lived intangibles, which primarily includes trademarks, were ¥8,997 million and ¥8,967 million as of March 31, 2016 and 2017, respectively.