Segment and geographic information

12 Months Ended

Mar. 31, 2019

Segment and Geographic Information [Abstract]

Segment and geographic information

22. Segment and geographic information:

Operating segments—

Nomura’s operating management and management reporting are prepared based on the Retail, the Asset Management, and the Wholesale segments. Nomura structures its business segments based upon the nature of its main products and services, its client base and its management structure. The operating result of Merchant Banking Division is included in “Other”.

The accounting policies for segment information follow U.S. GAAP, except for the impact of unrealized gains/losses on investments in equity securities held for operating purposes, which under U.S. GAAP are included in Income (loss) before income taxes, but excluded from segment information.

Revenues and expenses directly associated with each business segment are included in the operating results of each respective segment. Revenues and expenses that are not directly attributable to a particular segment are allocated to each respective business segment or included in “Other,” based upon Nomura’s allocation methodologies as used by management to assess each segment’s performance.

Business segments’ results are shown in the following tables. Net interest revenue is disclosed because management views interest revenue net of interest expense for its operating decisions. Business segments’ information on total assets is not disclosed because management does not utilize such information for its operating decisions and therefore, it is not reported to management.

	Millions of yen
	Retail		Asset Management		Wholesale			Other (Incl. elimination)			Total
Year ended March 31, 2017
Non-interest revenue	¥	369,503	¥	90,025	¥	564,877		¥	243,459		¥	1,267,864
Net interest revenue		4,931		9,402		174,379			(59,995	)		128,717
Net revenue		374,434		99,427		739,256			183,464			1,396,581
Non-interest expenses		299,642		57,094		577,809			145,857			1,080,402
Income before income taxes	¥	74,792	¥	42,333	¥	161,447		¥	37,607		¥	316,179
Year ended March 31, 2018
Non-interest revenue	¥	406,295	¥	118,545	¥	587,474		¥	272,271		¥	1,384,585
Net interest revenue		6,613		8,792		127,859			(32,778	)		110,486
Net revenue		412,908		127,337		715,333			239,493			1,495,071
Non-interest expenses		309,771		61,167		614,745			183,128			1,168,811
Income before income taxes	¥	103,137	¥	66,170	¥	100,588		¥	56,365		¥	326,260
Year ended March 31, 2019
Non-interest revenue	¥	331,743	¥	89,607	¥	496,484		¥	147,524		¥	1,065,358
Net interest revenue		7,737		8,238		58,904			(16,263	)		58,616
Net revenue		339,480		97,845		555,388			131,261			1,123,974
Non-interest expenses		289,990		63,660		666,787			134,034			1,154,471
Income (loss) before income taxes	¥	49,490	¥	34,185	¥	(111,399	)	¥	(2,773	)	¥	(30,497	)

Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other.”

The following table presents the major components of Income (loss) before income taxes in “Other” for the years ended March 31, 2017, 2018 and 2019.

	Millions of yen
	Year ended March 31
	2017			2018			2019
Net gain (loss) related to economic hedging transactions	¥	(7,279	)	¥	(6,461	)	¥	1,800
Realized gain on investments in equity securities held for operating purposes		1,092			785			221
Equity in earnings of affiliates		32,342			34,248			32,532
Corporate items		(6,439	)		(41,884	)		(35,996	)
Other(1)		17,891			69,677			(1,330	)
Total	¥	37,607		¥	56,365		¥	(2,773	)

(1) Amounts reported for the year ended March 31, 2018 include the gain recognized in earnings in connection with the liquidation of a non-Japanese subsidiary during the year.

The table below presents reconciliations of the combined business segments’ results included in the preceding table to Nomura’s reported Net revenue, Non-interest expenses and Income (loss) before income taxes in the consolidated statements of income for the years ended March 31, 2017, 2018 and 2019.

	Millions of yen
	Year ended March 31
	2017		2018		2019
Net revenue	¥	1,396,581	¥	1,495,071	¥	1,123,974
Unrealized gain (loss) on investments in equity securities held for operating purposes		6,616		1,898		(7,204	)
Consolidated net revenue	¥	1,403,197	¥	1,496,969	¥	1,116,770
Non-interest expenses	¥	1,080,402	¥	1,168,811	¥	1,154,471
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—		—
Consolidated non-interest expenses	¥	1,080,402	¥	1,168,811	¥	1,154,471
Income (loss) before income taxes	¥	316,179	¥	326,260	¥	(30,497	)
Unrealized gain (loss) on investments in equity securities held for operating purposes		6,616		1,898		(7,204	)
Consolidated income (loss) before income taxes	¥	322,795	¥	328,158	¥	(37,701	)

Geographic information—

Nomura’s identifiable assets, revenues and expenses are generally allocated based on the country of domicile of the legal entity providing the service. However, because of the integration of the global capital markets and the corresponding global nature of Nomura’s activities and services, it is not always possible to make a precise separation by location. As a result, various assumptions, which are consistent among years, have been made in presenting the following geographic data.

The tables below present a geographic allocation of Net revenue and Income (loss) before income taxes from operations by geographic areas for the years ended March 31, 2017, 2018 and 2019 and Long-lived assets associated with Nomura’s operations as of March 31, 2017, 2018 and 2019. Net revenue in “Americas” and “Europe” substantially represents Nomura’s operations in the U.S. and the U.K., respectively. Net revenue and Long-lived assets have been allocated based on transactions with external customers while Income (loss) before income taxes has been allocated based on the inclusion of intersegment transactions.

	Millions of yen
	Year ended March 31
	2017		2018			2019
Net revenue(1):
Americas	¥	263,587	¥	268,653		¥	169,581
Europe		159,474		168,186			131,175
Asia and Oceania		67,278		68,011			47,977
Subtotal		490,339		504,850			348,733
Japan		912,858		992,119			768,037
Consolidated	¥	1,403,197	¥	1,496,969		¥	1,116,770
Income (loss) before income taxes:
Americas	¥	49,962	¥	(8,771	)	¥	(114,081	)
Europe		14,401		(14,654	)		(56,851	)
Asia and Oceania		23,746		22,751			5,014
Subtotal		88,109		(674	)		(165,918	)
Japan		234,686		328,832			128,217
Consolidated	¥	322,795	¥	328,158		¥	(37,701	)
	March 31
	2017		2018			2019
Long-lived assets:
Americas	¥	125,222	¥	117,323		¥	50,829
Europe		66,167		67,010			56,821
Asia and Oceania		13,043		8,613			9,588
Subtotal		204,432		192,946			117,238
Japan		251,242		231,003			252,420
Consolidated	¥	455,674	¥	423,949		¥	369,658

(1) There is no revenue derived from transactions with a single major external customer.