Credit Quality of Financing Receivables and the Allowance for Credit Losses (Tables)

9 Months Ended

Dec. 31, 2011

Impaired Loans and Valuation Allowance Disclosure

The following table provides information about the allowance for credit losses as of March 31, 2011, for the nine months ended December 31, 2011 and for the three months ended December 31, 2011:

		0,000,000		0,000,000		0,000,000		0,000,000		0,000,000		0,000,000
	March 31, 2011
	Millions of yen
	Loans								Direct financing leases		Total
	Consumer		Corporate				Purchased loans *1
	Consumer		Non-recourse loans		Other		Purchased loans *1
Allowance for Credit Losses:
Ending Balance	¥	17,096	¥	27,426	¥	70,972	¥	17,455	¥	21,201	¥	154,150

Individually Evaluated for Impairment		3,016		23,123		55,170		16,014		—		97,323
Not Individually Evaluated for Impairment		14,080		4,303		15,802		1,441		21,201		56,827

Financing receivables:
Ending Balance	¥	840,419	¥	952,573	¥	1,065,119	¥	111,335	¥	830,853	¥	3,800,299

Individually Evaluated for Impairment		8,312		73,029		194,005		36,685		—		312,031
Not Individually Evaluated for Impairment		832,107		879,544		871,114		74,650		830,853		3,488,268

		0,000,000			0,000,000			0,000,000			0,000,000			0,000,000			0,000,000
	Nine months ended December 31, 2011
	Millions of yen
	Loans												Direct financing leases			Total
	Consumer			Corporate						Purchased loans *1
	Consumer			Non-recourse loans			Other			Purchased loans *1
Allowance for Credit Losses:
Beginning Balance	¥	17,096		¥	27,426		¥	70,972		¥	17,455		¥	21,201		¥	154,150
Provision charged to income		576			889			3,693			1,465			1,645			8,268
Charge-offs		(1,292	)		(5,535	)		(17,215	)		(269	)		(5,256	)		(29,567	)
Recoveries		35			16			1,022			—			31			1,104
Other *2		(26	)		(1,300	)		(488	)		(166	)		(437	)		(2,417	)
Ending Balance	¥	16,389		¥	21,496		¥	57,984		¥	18,485		¥	17,184		¥	131,538

Individually Evaluated for Impairment		2,850			18,417			47,786			16,668			—			85,721
Not Individually Evaluated for Impairment		13,539			3,079			10,198			1,817			17,184			45,817

Financing receivables:
Ending Balance	¥	860,330		¥	793,787		¥	977,289		¥	100,795		¥	839,630		¥	3,571,831

Individually Evaluated for Impairment		8,930			66,606			174,899			31,522			—			281,957
Not Individually Evaluated for Impairment		851,400			727,181			802,390			69,273			839,630			3,289,874

		0,000,000			0,000,000			0,000,000			0,000,000			0,000,000			0,000,000
	Three months ended December 31, 2011
	Millions of yen
	Loans												Direct financing leases			Total
	Consumer			Corporate						Purchased loans *1
	Consumer			Non-recourse loans			Other			Purchased loans *1
Allowance for Credit Losses:
Beginning Balance	¥	16,580		¥	23,086		¥	62,663		¥	17,994		¥	18,811		¥	139,134
Provision charged to income		5			137			(1,781	)		568			542			(529	)
Charge-offs		(207	)		(1,980	)		(3,399	)		(112	)		(2,262	)		(7,960	)
Recoveries		5			—			373			—			17			395
Other *2		6			253			128			35			76			498
Ending Balance	¥	16,389		¥	21,496		¥	57,984		¥	18,485		¥	17,184		¥	131,538

Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely in accordance with ASC 310-30 (“Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality”).

*2	Other includes mainly foreign currency translation adjustments.

Impaired Financing Receivables Table

The following table provides information about the impaired loans as of March 31, 2011 and December 31, 2011:


	March 31, 2011
	Millions of Yen
	Class	Loans Individually Evaluated for Impairment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded *1:		¥	68,282	¥	68,183	¥	—
Consumer borrowers	Housing loans		2,259		2,259		—
	Other		—		—		—
Corporate borrowers			66,023		65,924		—
Non-recourse loans	Japan		9,465		9,443		—
	U.S.		4,579		4,579		—
Other	Real estate companies		14,532		14,516		—
	Entertainment companies		17,080		17,031		—
	Other		20,367		20,355		—
Purchased loans			—		—		—
With an allowance recorded *2:			243,749		242,843		97,323
Consumer borrowers	Housing loans		6,053		6,052		3,016
	Other		—		—		—
Corporate borrowers			201,011		200,106		78,293
Non-recourse loans	Japan		11,953		11,895		4,421
	U.S.		47,032		46,786		18,702
Other	Real estate companies		79,075		78,808		30,552
	Entertainment companies		12,517		12,486		4,114
	Other		50,434		50,131		20,504
Purchased loans			36,685		36,685		16,014

Total:		¥	312,031	¥	311,026	¥	97,323

Consumer borrowers	Housing loans		8,312		8,311		3,016

	Other		—		—		—

Corporate borrowers			267,034		266,030		78,293

Non-recourse loans	Japan		21,418		21,338		4,421

	U.S.		51,611		51,365		18,702

Other	Real estate companies		93,607		93,324		30,552

	Entertainment companies		29,597		29,517		4,114

	Other		70,801		70,486		20,504

Purchased loans			36,685		36,685		16,014


	December 31, 2011
	Millions of Yen
	Class	Loans Individually Evaluated for Impairment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded *1:		¥	80,416	¥	79,925	¥	—
Consumer borrowers	Housing loans		1,872		1,853		—
	Other		—		—		—
Corporate borrowers			78,544		78,072		—
Non-recourse loans	Japan		19,036		19,023		—
	U.S.		4,337		4,337		—
Other	Real estate companies		15,362		15,326		—
	Entertainment companies		12,504		12,326		—
	Other		27,305		27,060		—
Purchased loans			—		—		—

With an allowance recorded *2:			201,541		200,399		85,721
Consumer borrowers	Housing loans		7,058		7,045		2,850
	Other		—		—		—
Corporate borrowers			162,961		161,832		66,203
Non-recourse loans	Japan		12,510		12,490		4,636
	U.S.		30,723		30,615		13,781
Other	Real estate companies		65,127		64,660		25,910
	Entertainment companies		11,060		10,838		3,261
	Other		43,541		43,229		18,615
Purchased loans			31,522		31,522		16,668

Total:		¥	281,957	¥	280,324	¥	85,721

Consumer borrowers	Housing loans		8,930		8,898		2,850

	Other		—		—		—

Corporate borrowers			241,505		239,904		66,203

Non-recourse loans	Japan		31,546		31,513		4,636

	U.S.		35,060		34,952		13,781

Other	Real estate companies		80,489		79,986		25,910

	Entertainment companies		23,564		23,164		3,261

	Other		70,846		70,289		18,615

Purchased loans			31,522		31,522		16,668

*1	“With no related allowance recorded” represents impaired loans with no allowance for credit losses as all amounts due are considered to be collectible.

*2	“With an allowance recorded” represents impaired loans with the allowance for credit losses as all amounts due or a part of the amounts due are not considered to be collectible.

Average Recorded Investments in Impaired Loans and Interest Income on Impaired Loans

The following table provides information about the average recorded investments in impaired loans and interest income on impaired loans for the nine months ended December 31, 2011 and for the three months ended December 31, 2011:


	Nine months ended December 31, 2011
	Millions of yen
	Class	Average Recorded Investments in Impaired Loans *1		Interest Income on Impaired Loans		Interest on Impaired Loans Collected in Cash
Consumer borrowers	Housing loans	¥	8,911	¥	147	¥	140
	Other		—		—		—
Corporate borrowers			253,395		3,931		3,254
Non-recourse loans	Japan		26,490		471		458
	U.S.		42,047		653		539
Other	Real estate companies		86,650		1,106		898
	Entertainment companies		26,805		630		542
	Other		71,403		1,071		817
Purchased loans			33,853		—		—

Total		¥	296,159	¥	4,078	¥	3,394


	Three months ended December 31, 2011
	Millions of yen
	Class	Average Recorded Investments in Impaired Loans *1		Interest Income on Impaired Loans		Interest on Impaired Loans Collected in Cash
Consumer borrowers	Housing loans	¥	9,268	¥	62	¥	59
	Other		—		—		—
Corporate borrowers			247,534		1,127		1,025
Non-recourse loans	Japan		32,007		111		111
	U.S.		36,092		157		156
Other	Real estate companies		81,688		427		392
	Entertainment companies		24,592		171		171
	Other		73,155		261		195
Purchased loans			31,743		—		—

Total		¥	288,545	¥	1,189	¥	1,084

*1	Average balances are calculated on the basis of fiscal beginning and quarter-end balances.

Financing Receivable Credit Quality Indicators Table

The following table provides information about the credit quality indicators as of March 31, 2011 and December 31, 2011:


	March 31, 2011
	Millions of yen
				Non-performing
	Class	Performing		Loans individually evaluated for impairment		90+ days past-due loans not individually evaluated for impairment		Subtotal		Total
Consumer borrowers	Housing loans	¥	807,194	¥	8,312	¥	9,972	¥	18,284	¥	825,478
	Other		14,876		—		65		65		14,941
Corporate borrowers			1,750,658		267,034		—		267,034		2,017,692
Non-recourse loans	Japan		282,222		21,418		—		21,418		303,640
	U.S.		597,322		51,611		—		51,611		648,933
Other	Real estate companies		292,607		93,607		—		93,607		386,214
	Entertainment companies		115,876		29,597		—		29,597		145,473
	Other		462,631		70,801		—		70,801		533,432
Purchased loans			74,650		36,685		—		36,685		111,335
Direct financing leases	Japan		624,919		—		17,908		17,908		642,827
	Overseas		183,147		—		4,879		4,879		188,026

Total		¥	3,455,444	¥	312,031	¥	32,824	¥	344,855	¥	3,800,299


	December 31, 2011
	Millions of yen
				Non-performing
	Class	Performing		Loans individually evaluated for impairment		90+ days past-due loans not individually evaluated for impairment		Subtotal		Total
Consumer borrowers	Housing loans	¥	827,902	¥	8,930	¥	8,740	¥	17,670	¥	845,572
	Other		14,728		—		30		30		14,758
Corporate borrowers			1,529,571		241,505		—		241,505		1,771,076
Non-recourse loans	Japan		226,504		31,546		—		31,546		258,050
	U.S.		500,677		35,060		—		35,060		535,737
Other	Real estate companies		254,363		80,489		—		80,489		334,852
	Entertainment companies		113,920		23,564		—		23,564		137,484
	Other		434,107		70,846		—		70,846		504,953
Purchased loans			69,273		31,522		—		31,522		100,795
Direct financing leases	Japan		618,516		—		17,215		17,215		635,731
	Overseas		200,994		—		2,905		2,905		203,899

Total		¥	3,260,984	¥	281,957	¥	28,890	¥	310,847	¥	3,571,831

Financing Receivables Past Due

The following table provides information about the non-accrual and past-due financing receivables as of March 31, 2011 and December 31, 2011:


	March 31, 2011
	Millions of yen
		Past-Due Financing Receivables
	Class	30-89 Days Past-Due		90 Days or More Past-Due		Total Past-Due		Total Financing Receivables		Non-Accrual
Consumer borrowers	Housing loans	¥	4,119	¥	15,031	¥	19,150	¥	825,478	¥	15,031
	Other		—		65		65		14,941		65
Corporate borrowers			120,127		125,826		245,953		2,017,692		125,826
Non-recourse loans	Japan		5,697		9,925		15,622		303,640		9,925
	U.S.		97,114		19,747		116,861		648,933		19,747
Other	Real estate companies		4,556		54,566		59,122		386,214		54,566
	Entertainment companies		3,093		5,487		8,580		145,473		5,487
	Other		9,667		36,101		45,768		533,432		36,101
Direct financing leases	Japan		3,307		17,908		21,215		642,827		17,908
	Overseas		2,500		4,879		7,379		188,026		4,879

Total		¥	130,053	¥	163,709	¥	293,762	¥	3,688,964	¥	163,709


	December 31, 2011
	Millions of yen
		Past-Due Financing Receivables
	Class	30-89 Days Past-Due		90 Days or More Past-Due		Total Past-Due		Total Financing Receivables		Non-Accrual
Consumer borrowers	Housing loans	¥	3,352	¥	13,195	¥	16,547	¥	845,572	¥	13,195
	Other		8		30		38		14,758		30
Corporate borrowers			99,586		115,651		215,237		1,771,076		115,651
Non-recourse loans	Japan		3,897		22,179		26,076		258,050		22,179
	U.S.		82,731		7,904		90,635		535,737		7,904
Other	Real estate companies		7,967		44,816		52,783		334,852		44,816
	Entertainment companies		3		4,449		4,452		137,484		4,449
	Other		4,988		36,303		41,291		504,953		36,303
Direct financing leases	Japan		4,141		17,215		21,356		635,731		17,215
	Overseas		3,485		2,905		6,390		203,899		2,905

Total		¥	110,572	¥	148,996	¥	259,568	¥	3,471,036	¥	148,996

Troubled Debt Restructurings of Financing Receivables

The information about troubled debt restructurings of financing receivables that occurred during the nine months ended December 31, 2011 and during the three months ended December 31, 2011 are as follows:


	Nine months ended December 31, 2011
		Millions of yen
	Class	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Consumer borrowers	Housing loans	¥	1,468	¥	1,359
Corporate borrowers			19,929		19,064
Non-recourse loans	Japan		943		943
	U.S.		5,171		5,035
Other	Real estate companies		4,601		4,395
	Other		9,214		8,691

Total		¥	21,397	¥	20,423


	Three months ended December 31, 2011
		Millions of yen
	Class	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Consumer borrowers	Housing loans	¥	176	¥	112
Corporate borrowers			3,152		2,874
Non-recourse loans	U.S.		922		920
Other	Real estate companies		1,139		1,050
	Other		1,091		904

Total		¥	3,328	¥	2,986

Financing Receivables Modified as Troubled Debt Restructurings within the Previous 12 Months from the Current Period End and for which there was a Payment Default

interest is past-due 90 days or more in accordance with the modified terms. The information about financing receivables modified as troubled debt restructurings within the previous 12 months from the current period end and for which there was a payment default during the nine months ended December 31, 2011 and during the three months ended December 31, 2011 are as follows:


	Nine months ended December 31, 2011
		Millions of yen
	Class	Recorded Investment
Consumer borrowers	Housing loans	¥	33
Corporate borrowers			1,254
Other	Real estate companies		60
	Other		1,194

Total		¥	1,287


	Nine months ended December 31, 2011
		Millions of yen
	Class	Recorded Investment
Consumer borrowers	Housing loans	¥	33
Corporate borrowers			10
Other	Other		10

Total		¥	43