Segment and geographic information

12 Months Ended

Mar. 31, 2020

Segment and Geographic Information [Abstract]

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 results of the Merchant Banking division are 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, 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	)

Year ended March 31, 2020
Non-interest revenue	¥	329,983	¥	85,190	¥	506,203		¥	257,961		¥	1,179,337
Net interest revenue		6,376		7,415		142,416			(26,388	)		129,819

Net revenue		336,359		92,605		648,619			231,573			1,309,156
Non-interest expenses		286,926		63,833		556,399			132,410			1,039,568

Income (loss) before income taxes	¥	49,433	¥	28,772	¥	92,220		¥	99,163		¥	269,588

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

“Other”

for the years ended March 31, 2018, 2019 and 2020.


	Millions of yen
	Year ended March 31
	2018			2019			2020
Net gain (loss) related to economic hedging transactions	¥	(6,461	)	¥	1,800		¥	17,548
Realized gain on investments in equity securities held for operating purposes		785			221			6,601
Equity in earnings of affiliates		34,248			32,532			34,990
Corporate items		(41,884	)		(35,996	)		(22,240	)
Other (1) (2)		69,677			(1,330	)		62,264

Total	¥	56,365		¥	(2,773	)	¥	99,163

(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.

(2)	Includes gain of ¥73,293 million from the partial sale of Nomura’s investment in ordinary shares of Nomura Research Institute, Ltd. for the year ended March 31, 2020.

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, 2018, 2019 and 2020.


	Millions of yen
	Year ended March 31
	2018		2019			2020
Net revenue	¥	1,495,071	¥	1,123,974		¥	1,309,156
Unrealized gain (loss) on investments in equity securities held for operating purposes		1,898		(7,204	)		(21,327	)

Consolidated net revenue	¥	1,496,969	¥	1,116,770		¥	1,287,829

Non-interest expenses	¥	1,168,811	¥	1,154,471		¥	1,039,568
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—			—

Consolidated non-interest expenses	¥	1,168,811	¥	1,154,471		¥	1,039,568

Income (loss) before income taxes	¥	326,260	¥	(30,497	)	¥	269,588
Unrealized gain (loss) on investments in equity securities held for operating purposes		1,898		(7,204	)		(21,327	)

Consolidated income (loss) before income taxes	¥	328,158	¥	(37,701	)	¥	248,261

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, 2018, 2019 and 2020 and Long-lived assets

associated with Nomura’s operations as of March 31, 2018, 2019 and 2020.

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
	2018			2019			2020
Net revenue (1) :
Americas	¥	268,653		¥	169,581		¥	229,265
Europe		168,186			131,175			115,483
Asia and Oceania		68,011			47,977			42,571

Subtotal		504,850			348,733			387,319
Japan		992,119			768,037			900,510

Consolidated	¥	1,496,969		¥	1,116,770		¥	1,287,829

Income (loss) before income taxes:
Americas	¥	(8,771	)	¥	(114,081	)	¥	7,354
Europe		(14,654	)		(56,851	)		(14,067	)
Asia and Oceania		22,751			5,014			19,817

Subtotal		(674	)		(165,918	)		13,104
Japan		328,832			128,217			235,157

Consolidated	¥	328,158		¥	(37,701	)	¥	248,261


	March 31
	2018			2019			2020
Long-lived assets:
Americas	¥	117,323		¥	50,829		¥	84,904
Europe		67,010			56,821			52,179
Asia and Oceania		8,613			9,588			29,618

Subtotal		192,946			117,238			166,701
Japan		231,003			252,420			292,212

Consolidated	¥	423,949		¥	369,658		¥	458,913

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