Goodwill and Other Intangible Assets

12 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

13. Goodwill and Other Intangible Assets

Changes in goodwill by reportable segment for fiscal 2021, 2022 and 2023 are as follows:


	Millions of yen
	Corporate Financial Services and Maintenance Leasing			Real Estate			PE Investment and Concession			Environment and Energy			Insurance			Banking and Credit
Balance at March 31, 2020
Goodwill	¥	66,865		¥	16,359		¥	89,455		¥	4,116		¥	5,124		¥	10,971
Accumulated impairment losses		(837	)		0			0			(39	)		0			0
		66,028			16,359			89,455			4,077			5,124			10,971
Acquired		478			0			47,011			0			0			0
Impairment		(12	)		0			0			0			0			0
Other (net)*		7			0			(14,002	)		(3,933	)		(109	)		0

Balance at March 31, 2021
Goodwill		67,350			16,359			122,464			183			5,015			10,971
Accumulated impairment losses		(849	)		0			0			(39	)		0			0
		66,501			16,359			122,464			144			5,015			10,971
Acquired		0			0			0			49,115			0			0
Impairment		0			(191	)		0			0			(371	)		0
Other (net)*		(54,925	)		0			(22,526	)		357			0			0

Balance at March 31, 2022
Goodwill		12,425			16,359			99,938			49,655			5,015			10,971
Accumulated impairment losses		(849	)		(191	)		0			(39	)		(371	)		0
		11,576			16,168			99,938			49,616			4,644			10,971
Acquired		3,529			0			119,767			4,028			0			0
Impairment		0			0			0			0			0			0
Other (net)*		0			0			(12,954	)		4,524			0			0

Balance at March 31, 2023
Goodwill		15,954			16,359			206,751			58,207			5,015			10,971
Accumulated impairment losses		(849	)		(191	)		0			(39	)		(371	)		0

	¥	15,105		¥	16,168		¥	206,751		¥	58,168		¥	4,644		¥	10,971


	Millions of yen
	Aircraft and Ships			ORIX USA			ORIX Europe		Asia and Australia			Corporate		Total
Balance at March 31, 2020
Goodwill	¥	587		¥	129,246		¥	117,953	¥	7,390		¥	0	¥	448,066
Accumulated impairment losses		(587	)		0			0		(2,785	)		0		(4,248	)
		0			129,246			117,953		4,605			0		443,818
Acquired		0			0			11,697		0			0		59,186
Impairment		0			(1,494	)		0		0			0		(1,506	)
Other (net)*		0			566			10,847		402			0		(6,222	)

Balance at March 31, 2021
Goodwill		587			129,812			140,497		7,792			0		501,030
Accumulated impairment losses		(587	)		(1,494	)		0		(2,785	)		0		(5,754	)
		0			128,318			140,497		5,007			0		495,276
Acquired		0			0			0		0			278		49,393
Impairment		0			0			0		0			0		(562	)
Other (net)*		0			12,682			8,773		388			0		(55,251	)

Balance at March 31, 2022
Goodwill		587			142,494			149,270		8,180			278		495,172
Accumulated impairment losses		(587	)		(1,494	)		0		(2,785	)		0		(6,316	)
		0			141,000			149,270		5,395			278		488,856
Acquired		0			0			0		0			0		127,324
Impairment		0			0			0		0			0		0
Other (net)*		0			10,582			9,318		33			0		11,503

Balance at March 31, 2023
Goodwill		587			153,076			158,588		8,213			278		633,999
Accumulated impairment losses		(587	)		(1,494	)		0		(2,785	)		0		(6,316	)

	¥	0		¥	151,582		¥	158,588	¥	5,428		¥	278	¥	627,683

*	Other includes foreign currency translation adjustments, decreases due to sale of ownership interest in subsidiaries and certain other reclassifications.

As a result of the impairment test, the Company and its subsidiaries recognized impairment losses on goodwill of ¥12 million in Corporate Financial Services and Maintenance Leasing segment, and ¥1,494 million in ORIX USA segment during fiscal 2021. The Company and its subsidiaries recognized impairment losses on goodwill of ¥191 million in Real Estate segment, and ¥371

million in Insurance segment during fiscal 2022. The Company and its subsidiaries recognized no impairment losses on goodwill during fiscal 2023. These impairment losses are accounted in other (income) and expense. The fair values of these reporting units were measured using mainly discounted cash flow methodologies and business enterprise value multiples methodologies.

Other intangible assets at March 31, 2022 and 2023 consist of the following:


	Millions of yen
	2022			2023
Indefinite-lived intangible assets:
Trade names	¥	44,975		¥	115,049
Asset management contracts		48,533			51,558
Others		12,126			12,375

		105,634			178,982

Intangible assets subject to amortization:
Software		130,118			141,747
Customer relationships		143,963			161,936
Asset management contracts		98,014			104,481
Others		123,397			154,413

		495,492			562,577
Accumulated amortization		(197,505	)		(223,417	)

Net		297,987			339,160

	¥	403,621		¥	518,142

The aggregate amortization expenses for intangible assets are ¥28,748 million, ¥32,235 million and ¥34,212 million in fiscal 2021, 2022 and 2023, respectively.

The estimated amortization expenses for each of five succeeding fiscal years are ¥39,737 million in fiscal 2024, ¥35,454 million in fiscal 2025, ¥31,148 million in fiscal 2026, ¥28,437 million in fiscal 2027 and ¥24,291 million in fiscal 2028, respectively.

Intangible assets subject to amortization increased during fiscal 2023 are ¥78,181 million. They mainly consist of ¥25,279

million of software, ¥

14,703 million of customer relationships recognized in acquisitions

and ¥15,500 million of license recognized in acquisitions for others

. The weighted average amortization periods for the software

customer relationships

recognized in acquisitions and license

recognized in acquisitions are 6 years

14 years

and 15 years

, respectively.

As a result of the impairment test, the Company and its subsidiaries recognized impairment losses of ¥2 million on intangible assets included in Corporate Financial Services and Maintenance Leasing segment, ¥217 million on intangible assets included in Real Estate segment, ¥4 million on intangible assets included in PE Investment and Concession segment, ¥2 million on intangible assets included in Environment and Energy segment, ¥2 million on intangible assets included in Insurance segment, ¥505 million on intangible assets included in Aircraft and Ships segment, and ¥414 million on intangible assets included in ORIX USA segment during fiscal 2021. The Company and its subsidiaries recognized impairment losses of ¥650 million on intangible assets included in Corporate Financial Services and Maintenance Leasing segment, ¥259 million on intangible assets included in Aircraft and Ships segment, and ¥21,090 million on intangible assets included in ORIX Europe segment during fiscal 2022. The Company and its subsidiaries recognized impairment losses of ¥1 million on intangible assets included in Corporate Financial Services and Maintenance Leasing segment, ¥405 million on intangible assets included in Aircraft and Ships segment, and ¥110 million on intangible assets included in ORIX USA segment during fiscal 2023. The impairment losses for fiscal 2021, 2022 and 2023 are included in other (income) and expense in the consolidated statements of income. These impairment losses are recognized due to the reduction in the estimated future cash flow, which brought the fair values of the intangible assets below its carrying amount. The fair values of these intangible assets were measured using mainly discounted cash flow methodologies.