XML 32 R17.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Credit Quality of Financial Assets and the Allowance for Credit Losses
 12 Months Ended
Mar. 31, 2024
Credit Loss [Abstract]  
Credit Quality of Financial Assets and the Allowance for Credit Losses
8. Credit Quality of Financial Assets and the Allowance for Credit Losses
Consolidated financial statements data have been changed since fiscal 2024. The amounts of
financial assets
and allowance for credit losses in the previous years have been retrospectively reclassified for this change. For further information, see Note 1 “Significant Accounting and Reporting Policies (aa) Reclassifications.”
The Company and its subsidiaries provide the following information disaggregated by portfolio segment and class of financial assets.
 
  •  
Allowance for credit losses
 
  •  
Credit quality of financial assets
Credit quality indicators
Past-due financing receivables
Non-accrual
 
  •  
Information about modifications of financing receivables made to debtors experiencing financial difficulty
A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. The Company and its subsidiaries classify our portfolio segments by instruments of loans, net investment in leases and other financial assets measured at amortized cost. Classes of financial assets are determined based on the initial measurement attribute, risk characteristics of the financing receivables and the method for monitoring and assessing obligors’ credit risk and are defined as the level of detail necessary for a financial statement user to understand the risks inherent in the financial assets. Classes of financial assets generally are a disaggregation of a portfolio segment, and the Company and its subsidiaries disaggregate our portfolio segments into classes by regions, instruments or industries of our debtors.
 
The following table provides information about the allowance for credit losses for installment loans, net investment in leases and other financial assets measured at amortized cost for fiscal 2022, 2023 and 2024:
 
                  
                  
                  
                  
                  
                  
                  
                  
                  
   
Fiscal Year ended March 31, 2022
  
   
Millions of yen
  
   
Beginning
balance
    
Provision
(Reversal)*3
    
Allowance of
purchased
loans

during the
reporting
period
    
Charge-
offs*4
    
Recoveries
    
Other*5
    
Ending
balance
    
Collective
(pool)
assessment
    
Individual
assessment
  
Allowance for credit losses :
  
 
      
 
  
 
      
 
  
 
      
 
  
 
      
 
  
 
     
 
  
 
      
 
  
 
      
 
  
 
      
 
  
 
      
 
Installment loans to consumer borrowers:
                  
Real estate loans
                  
Japan
  
¥
5,922
 
  
¥
340
 
  
¥
0
 
  
¥
(570
) 
  
¥
24
 
  
¥
0
 
  
¥
5,716
 
  
¥
5,211
 
  
¥
505
 
Overseas
  
 
470
 
  
 
(34
) 
  
 
0
 
  
 
0
 
  
 
4
 
  
 
15
 
  
 
455
 
  
 
455
 
  
 
0
 
Card loans
                  
Japan
  
 
12,984
 
  
 
(1,301
) 
  
 
0
 
  
 
(1,669
) 
  
 
4
 
  
 
1
 
  
 
10,019
 
  
 
9,423
 
  
 
596
 
Other
                  
Japan
  
 
8,359
 
  
 
4,948
 
  
 
0
 
  
 
(8,114
) 
  
 
11
 
  
 
0
 
  
 
5,204
 
  
 
2,946
 
  
 
2,258
 
Overseas
  
 
1,275
 
  
 
300
 
  
 
0
 
  
 
(644
) 
  
 
0
 
  
 
174
 
  
 
1,105
 
  
 
961
 
  
 
144
 
Installment loans to corporate borrowers:
                  
Non-recourse loans
                  
Japan
  
 
32
 
  
 
49
 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
81
 
  
 
81
 
  
 
0
 
The Americas
  
 
3,450
 
  
 
(1,035
) 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
276
 
  
 
2,691
 
  
 
1,836
 
  
 
855
 
Other than non-recourse loans
                  
Real estate companies
                  
Japan
  
 
901
 
  
 
(204
) 
  
 
0
 
  
 
(109
) 
  
 
29
 
  
 
0
 
  
 
617
 
  
 
490
 
  
 
127
 
Overseas
  
 
1,539
 
  
 
(855
) 
  
 
0
 
  
 
(10
) 
  
 
0
 
  
 
61
 
  
 
735
 
  
 
735
 
  
 
0
 
Commercial, industrial
and other companies
                  
Japan
  
 
1,938
 
  
 
93
 
  
 
0
 
  
 
(761
) 
  
 
67
 
  
 
0
 
  
 
1,337
 
  
 
505
 
  
 
832
 
Overseas
  
 
18,763
 
  
 
3,503
 
  
 
0
 
  
 
(6,185
) 
  
 
155
 
  
 
2,060
 
  
 
18,296
 
  
 
13,367
 
  
 
4,929
 
Loans to Equity method investees
  
 
1,050
 
  
 
1,449
 
  
 
0
 
  
 
(790
) 
  
 
0
 
  
 
248
 
  
 
1,957
 
  
 
314
 
  
 
1,643
 
Purchased loans*1
  
 
1,835
 
  
 
(227
) 
  
 
2,210
 
  
 
(2,372
) 
  
 
114
 
  
 
15
 
  
 
1,575
 
  
 
608
 
  
 
967
 
Net investment in leases:
  
 
16,522
 
  
 
1,577
 
  
 
0
 
  
 
(2,802
) 
  
 
21
 
  
 
985
 
  
 
16,303
 
  
 
12,480
 
  
 
3,823
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
  
 
75,040
 
  
 
8,603
 
  
 
2,210
 
  
 
(24,026
) 
  
 
429
 
  
 
3,835
 
  
 
66,091
 
  
 
49,412
 
  
 
16,679
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost*2
  
 
4,955
 
  
 
1,213
 
  
 
0
 
  
 
(871
) 
  
 
45
 
  
 
(18
) 
  
 
5,324
 
  
 
248
 
  
 
5,076
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
  
¥
79,995
 
  
¥
9,816
 
  
¥
2,210
 
  
¥
(24,897
) 
  
¥
474
 
  
¥
3,817
 
  
¥
71,415
 
  
¥
49,660
 
  
¥
21,755
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
 
                  
                  
                  
                  
                  
                  
                  
                  
                  
   
Fiscal Year ended March 31, 2023
  
   
Millions of yen
  
   
Beginning
balance
    
Provision
(Reversal)*3
    
Allowance of
purchased
loans

during the
reporting
period
    
Charge-
offs*4
    
Recoveries
    
Other*5
    
Ending
balance
    
Collective
(pool)
assessment
    
Individual
assessment
  
Allowance for credit losses :
  
 
      
 
  
 
      
 
  
 
      
 
  
 
      
 
  
 
     
 
  
 
      
 
  
 
      
 
  
 
      
 
  
 
      
 
Installment loans to consumer borrowers:
                  
Real estate loans
                  
Japan
  
¥
5,716
 
  
¥
(1,437
) 
  
¥
0
 
  
¥
(215
) 
  
¥
27
 
  
¥
1
 
  
¥
4,092
 
  
¥
3,644
 
  
¥
448
 
Overseas
  
 
455
 
  
 
(19
) 
  
 
0
 
  
 
0
 
  
 
1
 
  
 
9
 
  
 
446
 
  
 
446
 
  
 
0
 
Card loans
                  
Japan
  
 
10,019
 
  
 
(421
) 
  
 
0
 
  
 
(584
) 
  
 
8
 
  
 
0
 
  
 
9,022
 
  
 
8,329
 
  
 
693
 
Other
                  
Japan
  
 
5,204
 
  
 
4,672
 
  
 
0
 
  
 
(2,124
) 
  
 
8
 
  
 
(1
) 
  
 
7,759
 
  
 
5,337
 
  
 
2,422
 
Overseas
  
 
1,105
 
  
 
1,265
 
  
 
0
 
  
 
(508
) 
  
 
0
 
  
 
27
 
  
 
1,889
 
  
 
1,467
 
  
 
422
 
Installment loans to corporate borrowers:
                  
Non-recourse loans
                  
Japan
  
 
81
 
  
 
173
 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
(1
) 
  
 
253
 
  
 
253
 
  
 
0
 
The Americas
  
 
2,691
 
  
 
(1,186
) 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
(11
) 
  
 
1,494
 
  
 
560
 
  
 
934
 
Other than non-recourse
 loans
                  
Real estate companies
                  
Japan
  
 
617
 
  
 
131
 
  
 
0
 
  
 
0
 
  
 
28
 
  
 
1
 
  
 
777
 
  
 
663
 
  
 
114
 
Overseas
  
 
735
 
  
 
264
 
  
 
0
 
  
 
(29
) 
  
 
0
 
  
 
37
 
  
 
1,007
 
  
 
1,007
 
  
 
0
 
Commercial, industrial
and other companies
                  
Japan
  
 
1,337
 
  
 
102
 
  
 
0
 
  
 
(358
) 
  
 
71
 
  
 
0
 
  
 
1,152
 
  
 
477
 
  
 
675
 
Overseas
  
 
18,296
 
  
 
7,164
 
  
 
0
 
  
 
(8,212
) 
  
 
329
 
  
 
1,555
 
  
 
19,132
 
  
 
16,455
 
  
 
2,677
 
Loans to Equity method investees
  
 
1,957
 
  
 
361
 
  
 
0
 
  
 
(1,842
) 
  
 
0
 
  
 
174
 
  
 
650
 
  
 
281
 
  
 
369
 
Purchased loans*1
  
 
1,575
 
  
 
(261
) 
  
 
6,901
 
  
 
(7,142
) 
  
 
64
 
  
 
11
 
  
 
1,148
 
  
 
541
 
  
 
607
 
Net investment in leases:
  
 
16,303
 
  
 
1,678
 
  
 
0
 
  
 
(2,637
) 
  
 
27
 
  
 
348
 
  
 
15,719
 
  
 
12,032
 
  
 
3,687
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
  
 
66,091
 
  
 
12,486
 
  
 
6,901
 
  
 
(23,651
) 
  
 
563
 
  
 
2,150
 
  
 
64,540
 
  
 
51,492
 
  
 
13,048
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost*2
  
 
5,324
 
  
 
194
 
  
 
0
 
  
 
(4,721
) 
  
 
30
 
  
 
6
 
  
 
833
 
  
 
267
 
  
 
566
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
  
¥
71,415
 
  
¥
12,680
 
  
¥
6,901
 
  
¥
(28,372
) 
  
¥
593
 
  
¥
2,156
 
  
¥
65,373
 
  
¥
51,759
 
  
¥
13,614
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
 
                  
                  
                  
                  
                  
                  
                  
                  
                  
   
Fiscal Year ended March 31, 2024
  
   
Millions of yen
  
   
Beginning
balance
    
Provision
(Reversal)*3
    
Allowance of
purchased
loans

during the
reporting
period
    
Charge-
offs*4
    
Recoveries
    
Other*5
    
Ending
balance
    
Collective
(pool)
assessment
    
Individual
assessment
  
Allowance for credit losses :
  
 
      
 
  
 
      
 
  
 
      
 
  
 
      
 
  
 
     
 
  
 
      
 
  
 
      
 
  
 
      
 
  
 
      
 
Installment loans to consumer borrowers:
                  
Real estate loans
                  
Japan
  
¥
4,092
 
  
¥
(712
) 
  
¥
0
 
  
¥
(218
) 
  
¥
151
 
  
¥
(110
) 
  
¥
3,203
 
  
¥
2,893
 
  
¥
310
 
Overseas
  
 
446
 
  
 
94
 
  
 
0
 
  
 
(6
) 
  
 
1
 
  
 
46
 
  
 
581
 
  
 
526
 
  
 
55
 
Card loans
                  
Japan
  
 
9,022
 
  
 
101
 
  
 
0
 
  
 
(918
) 
  
 
10
 
  
 
(8,203
) 
  
 
12
 
  
 
12
 
  
 
0
 
Other
                  
Japan
  
 
7,759
 
  
 
5,313
 
  
 
0
 
  
 
(3,856
) 
  
 
7
 
  
 
(9,132
) 
  
 
91
 
  
 
6
 
  
 
85
 
Overseas
  
 
1,889
 
  
 
3,166
 
  
 
0
 
  
 
(2,736
) 
  
 
476
 
  
 
265
 
  
 
3,060
 
  
 
1,762
 
  
 
1,298
 
Installment loans to corporate borrowers:
                  
Non-recourse loans
                  
Japan
  
 
253
 
  
 
176
 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
429
 
  
 
429
 
  
 
0
 
The Americas
  
 
1,494
 
  
 
74
 
  
 
0
 
  
 
(55
) 
  
 
0
 
  
 
205
 
  
 
1,718
 
  
 
660
 
  
 
1,058
 
Other than non-recourse loans
                  
Real estate companies
                  
Japan
  
 
777
 
  
 
176
 
  
 
0
 
  
 
(4
) 
  
 
26
 
  
 
0
 
  
 
975
 
  
 
889
 
  
 
86
 
Overseas
  
 
1,007
 
  
 
430
 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
112
 
  
 
1,549
 
  
 
1,045
 
  
 
504
 
Commercial, industrial
and other companies
                  
Japan
  
 
1,152
 
  
 
(44
) 
  
 
0
 
  
 
(281
) 
  
 
9
 
  
 
21
 
  
 
857
 
  
 
722
 
  
 
135
 
Overseas
  
 
19,132
 
  
 
8,702
 
  
 
0
 
  
 
(4,762
) 
  
 
176
 
  
 
2,576
 
  
 
25,824
 
  
 
16,061
 
  
 
9,763
 
Loans to Equity method investees
  
 
650
 
  
 
99
 
  
 
0
 
  
 
0
 
  
 
0
 
  
 
129
 
  
 
878
 
  
 
422
 
  
 
456
 
Purchased loans*1
  
 
1,148
 
  
 
13
 
  
 
47,676
 
  
 
(47,722
) 
  
 
2
 
  
 
16
 
  
 
1,133
 
  
 
548
 
  
 
585
 
Net investment in leases:
  
 
15,719
 
  
 
3,064
 
  
 
0
 
  
 
(2,635
) 
  
 
26
 
  
 
606
 
  
 
16,780
 
  
 
10,866
 
  
 
5,914
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
  
 
64,540
 
  
 
20,652
 
  
 
47,676
 
  
 
(63,193
) 
  
 
884
 
  
 
(13,469
) 
  
 
57,090
 
  
 
36,841
 
  
 
20,249
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost*2
  
 
833
 
  
 
311
 
  
 
0
 
  
 
(280
) 
  
 
9
 
  
 
147
 
  
 
1,020
 
  
 
321
 
  
 
699
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
  
¥
65,373
 
  
¥
20,963
 
  
¥
47,676
 
  
¥
(63,473
) 
  
¥
893
 
  
¥
(13,322
) 
  
¥
58,110
 
  
¥
37,162
 
  
¥
20,948
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Notes:
1 Loans held for sale and policy loan receivables of an insurance entity are not in the scope of allowance for credit losses.
  2
Held-to-maturity debt securities held by the Company and subsidiaries consist of Japanese government bonds (JGBs) and other securities secured by JGBs. There was no allowance for credit losses on these held-to-maturity debt securities. And there is no delinquency or on non-accrual status on held-to-maturity debt securities.
 
 
*1
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.
*2
The allowance for other financial assets measured at amortized cost includes the allowance for credit losses on financing receivables, such as accounts receivable. Other financial assets measured at amortized cost are mainly “Trade notes, accounts and other receivables” on the consolidated balance sheets.
*3
“Provision for credit losses” in the consolidated statements of income amounted to provisions of ¥5,388 million, ¥8,117 million and ¥20,968 million for fiscal 2022, 2023 and 2024 respectively. The reconciliation between the above table and the amounts reported on the consolidated statements
of income
in fiscal 2022, 2023 and 2024 are as follows:
 
   
Millions of yen
  
   
Fiscal Year
ended March 31,
2022
    
Fiscal Year
ended March 31,
2023
    
Fiscal Year
ended March 31,
2024
  
   
Provision for
credit losses
    
Provision for
credit losses
    
Provision for
credit losses
  
Net investment in leases
   ¥ 1,577     ¥ 1,678     ¥ 3,064  
Installment loans
     7,026       10,808       17,588  
 
 
 
    
 
 
    
 
 
  
Subtotal in the above table
     8,603       12,486       20,652  
 
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost
     1,213       194       311  
 
 
 
    
 
 
    
 
 
  
Total in the above table
     9,816       12,680       20,963  
 
 
 
    
 
 
    
 
 
  
Off-balance sheet credit exposures *3(a)
     (4,449 )      (4,542 )      (440 ) 
Available-for-sale debt securities *3(b)
     21       (21 )      445  
 
 
 
    
 
 
    
 
 
  
Amount reported on the consolidated financial statements
   ¥ 5,388     ¥ 8,117     ¥ 20,968  
 
 
 
    
 
 
    
 
 
  
 
  *3(a)
The allowance for off-balance sheet credit exposure were ¥22,120 million, ¥17,843 million and ¥5,116 million as of March 31, 2022, 2023 and 2024, respectively, and the amounts are recorded in “Other liabilities” on the consolidated balance sheets. For further information, see Note 31 “Commitments, Guarantees and Contingent Liabilities.”
  *3(b)
The allowance for available-for-sale debt securities were ¥153 million ¥144 million and ¥634 million as of March 31, 2022, 2023 and 2024, respectively, and the amounts are recorded as a reduction in “Investments in securities” on the consolidated balance sheets. For further information, see Note 9 “Investment in Securities.”
*4
Included in Charge-off in write-offs of purchased loans were ¥2,210 million, ¥6,901 million and ¥47,676 million during fiscal 2022, 2023 and 2024.
*5
Other mainly includes foreign currency translation adjustments and increases or decreases in allowance due to consolidation or deconsolidation of subsidiaries.
 
The following table provides information about purchased loans which were acquired for fiscal 2022, 2023 and 2024:
 
    
Millions of yen
  
    
Fiscal Year ended

March 31, 2022
     
Fiscal Year ended

March 31, 2023
     
Fiscal Year ended

March 31, 2024
  
Purchase price
    ¥ 4,926      ¥ 2,444      ¥ 12,271  
Allowance for credit losses at acquisition date
      2,210        6,901        47,676  
Discount or premium attributable to other factors
      220        261        1,188  
  
 
 
     
 
 
     
 
 
  
Par value
    ¥ 7,356      ¥ 9,606      ¥ 61,135  
  
 
 
     
 
 
     
 
 
  
The Company and its subsidiaries estimate an allowance for credit losses for all credit losses expected to occur in future over the remaining life of financial assets, and recognize the allowance adequately based on management judgement. In developing the allowance for credit losses, the Company and its subsidiaries consider, among other things, the following factors in collective assessment and individual assessment by each portfolio:
 
  •  
business characteristics and financial conditions of obligors;
 
  •  
prior charge-off experience;
 
  •  
current delinquencies and delinquency trends;
 
  •  
value of underlying collateral and guarantees; and
 
  •  
current economic and business conditions and expected outlook in future.
The Company and its subsidiaries manage credit risk using various indicators specific to the region, industry, and types of assets, in accordance with the group risk management policy. For credit transactions, the basic group policy is to obtain sufficient collateral and guarantees, and to diversify industries and borrowers, and the Company and its subsidiaries comprehensively evaluate and monitor the financial condition and cash flows of borrowers, underlying collateral and guarantees, and profitability. The Company and its subsidiaries also manage exposure to potentially high-risk markets by establishing appropriate credit limits through portfolio analysis.
Due to the diversity of assets and risk indicators held by the Company and its subsidiaries, the Company and its subsidiaries monitor the credit quality indicators as performing and non-performing assets as indicators that are common across all classes. The category of non-performing assets includes financing receivables for debtors who have filed for insolvency proceedings, whose bank transactions are suspended, whose bills are dishonored, whose businesses have deteriorated, whose repayment is past-due 90 days or more, financing receivables modified to debtors experiencing financial difficulty, and performing assets include all other financing receivables. Regarding purchased loans, they are classified as non-performing assets when it is probable that the acquisition cost of purchased loans cannot be collected, while all the other purchased loans are included in the category of performing assets.
When certain performing financial assets mainly have similar risk characteristics to other financial assets, the performing financial assets are collectively evaluated as a pool. On the contrary, when financial assets do not have similar risk characteristics to other financial assets, the financial assets are evaluated individually.
 
Loans to consumer borrowers
Loans to consumer borrowers mainly consist of real estate loans and card loans.
The credit quality of real estate loans is affected by the cash flows derived from the property and its collateral value.
The credit quality of card loans is affected by the repayment ability of customers such as customer credit standing or payment history.
The Company and its subsidiaries use these factors to estimate the allowance for credit losses because they are reflected in the probability of default and loss given default in each portfolio.
Loans to corporate borrowers
Loans to corporate borrowers are classified into non-recourse loans and loans other than non-recourse loans.
The credit quality of non-recourse loans for which cash flows from real estate are the source of repayment depends mainly on the real estate collateral value.
Loans other than non-recourse loans are classified into either real estate companies or commercial, industrial and other companies, each of which are further divided into Japan and overseas.
The credit quality of real estate companies is affected by mainly Japanese and Americas real estate markets and trends.
The credit quality of commercial, industrial and other companies, which consist of various industries, is affected mainly by broader financial and economic conditions and trends in Japan, the Americas and Asian countries.
The allowance for credit losses for loans to corporate borrowers is estimated by considering, among others, debtors’ situation, as well as economic conditions and trends in its industries, the value of underlying collateral and guarantees, and probability of default and loss given default.
Loans to equity method investees
 
Equity method investees are diversified in various industries and countries. The credit quality of Loans to equity method investees is affected mainly by broader financial and economic conditions and trends in Japan, the Americas and Asian countries.
The allowance for credit losses for loans to equity method investees is estimated by considering, among others, debtors’ situation, as well as economic conditions and trends in its industries, the value of underlying collateral and guarantees, and probability of default and loss given default.
Net investment in leases
Net investment in leases consists of leases of various equipment types, including office equipment, industrial machinery, transportation equipment and real estate properties. The allowance for credit losses for net investment in leases is estimated based on the value of the underlying leased assets, debtors’ situation, economic conditions and trends in its industries, and probability of default and loss given default.

 
In common with portfolio segments, the forecasted future economic indicators correlated with the prior charge-off experience are reflected to the estimate of the allowance for credit losses. Economic indicators correlated with prior charge-off experience are determined over the reasonable and supportable forecasted period. Economic indicators include GDP growth rates, consumer price indices, unemployment rates, and government bond interest rates. It also considers forward-looking scenarios of how the selected economic indicators will change in the future. The Company and its subsidiaries use the latest economic forecasts available from the economic reports published by governments and central banks, as well as from third-party information providers as economic indicators.
On the other hand, for periods beyond which the Company and its subsidiaries are able to make or obtain reasonable and supportable forecasts of future economic indicators of the entire life of the financial asset, expected credit losses are estimated for the remaining life mainly using an appropriate reversion approach, mainly immediate reversion to historical credit loss information.
There have been no significant changes during fiscal 2024 to methodologies and economic indicators used to estimate the allowance for credit losses.
When non-performing financial assets with deteriorated credit quality have similar risk characteristics to other financial assets, the allowance for credit losses is collectively evaluated based on mainly loss given default. On the other hand, if the non-performing financial assets do not have similar risk characteristics to other financial assets, the allowance for credit losses is individually evaluated.
In the individual assessment the allowance for credit losses is estimated individually based on the present value of expected future cash flows, the observable market price or the fair value of the collateral securing the financing receivables if the financing receivables are collateral-dependent.
The collateral-dependent financing receivables are defined as the finance receivables, which a debtor would be in financial difficulty and the collection significantly depend on the collateral. These financing receivables are mainly non-recourse loans and purchased loans for which cash flows from underlying real estate is the source of repayment.
For non-recourse loans, their collection depends on the real estate collateral value, which may decline as a result of a decrease in liquidity of the real estate market, a rise in vacancy rate of rental properties, a fall in rents and other factors.
For purchased loans, their collection may decrease due to a decline in the real estate collateral value and debtors’ creditworthiness. Thus, the changes in these risks affect the amount of the allowance for credit losses.
In common with all portfolio segments, the Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal, mainly based upon an evaluation of the relevant debtors’ creditworthiness and the liquidation status of collateral.
 
 
The following table provides information about the origination years of financial assets as of March 31, 2023. Card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year are excluded from the table.
 
       
March 31, 2023
  
       
Millions of yen
  
Portfolio segment
      
Origination year (years ended March 31)
        
Class
                                              
   
Credit Quality
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Total
  
Consumer borrowers:
              
  Performing   ¥   300,198     ¥   200,041     ¥ 281,872     ¥ 360,726     ¥ 293,297     ¥ 656,584     ¥ 2,092,718  
  Non-Performing     10,896       5,259       3,140       2,257       1,078       12,324     ¥ 34,954  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Real estate loans
              
  Performing     266,663       190,076       279,690       359,321       292,388       655,811     ¥ 2,043,949  
  Non-Performing     17       81       378       474       239       11,821     ¥ 13,010  
Other*
                
  Performing     33,535       9,965       2,182       1,405       909       773     ¥ 48,769  
  Non-Performing     10,879       5,178       2,762       1,783       839       503     ¥ 21,944  
Corporate borrowers:
              
  Performing     427,902       346,629       127,984       171,314       103,628       139,503     ¥ 1,316,960  
  Non-Performing     257       793       5,485       4,959       4,624       24,008     ¥ 40,126  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Non-recourse loans
              
Japan
                
  Performing     65,874       17,831       6,699       22,384       4,158       7,553     ¥ 124,499  
The Americas
              
  Performing     2,901       706       5,217       15,153       10,595       834     ¥ 35,406  
  Non-Performing     0       0       0       0       0       3,248     ¥ 3,248  
Other than non-recourse loans
              
Real estate companies in Japan
              
  Performing     124,452       43,210       30,996       27,022       22,251       46,222     ¥ 294,153  
  Non-Performing     0       230       0       913       9       923     ¥ 2,075  
Real estate companies in overseas
              
  Performing     34,508       12,639       9,091       6,998       1,627       1,165     ¥ 66,028  
  Non-Performing     0       0       741       0       813       12,063     ¥ 13,617  
Commercial, industrial and other companies in Japan
              
  Performing     76,764       27,327       16,743       17,003       8,383       12,878     ¥ 159,098  
  Non-Performing     125       80       431       264       133       399     ¥ 1,432  
Commercial, industrial and other companies in overseas
              
  Performing     123,403       244,916       59,238       82,754       56,614       70,851     ¥ 637,776  
  Non-Performing     132       483       4,313       3,782       3,669       7,375     ¥ 19,754  
 
 
       
March 31, 2023
  
       
Millions of yen
  
Portfolio segment
      
Origination year (years ended March 31)
        
Class
                                              
   
Credit Quality
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Total
  
Loans to Equity method investees:
 
            
  Performing     3,197       0       2,089       282       0       21,301     ¥ 26,869  
  Non-Performing     0       298       0       0       368       0     ¥ 666  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Purchased loans:
              
  Performing     26       396       0       21       406       10,385     ¥ 11,234  
  Non-Performing     0       0       0       0       0       1,021     ¥ 1,021  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net investment in leases:
 
            
  Performing     440,421       257,871       139,306       103,726       53,604       75,794     ¥ 1,070,722  
  Non-Performing     2,757       3,228       1,806       2,042       1,720       5,288     ¥ 16,841  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Japan
                
  Performing     193,297       136,285       99,739       80,542       44,853       72,295     ¥ 627,011  
  Non-Performing     212       660       658       798       811       1,970     ¥ 5,109  
Overseas
                
  Performing     247,124       121,586       39,567       23,184       8,751       3,499     ¥ 443,711  
  Non-Performing     2,545       2,568       1,148       1,244       909       3,318     ¥ 11,732  
 
 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
(excluding revolving repayment card loans)
              
  Performing   ¥ 1,171,744     ¥ 804,937     ¥ 551,251     ¥ 636,069     ¥ 450,935     ¥ 903,567     ¥ 4,518,503  
  Non-Performing     13,910       9,578       10,431       9,258       7,790       42,641     ¥ 93,608  
 
 
The following table provides information about the origination years of financial assets as of March 31, 2024 and the gross write-offs, corresponding to each class of financial assets by origination year, recorded during fiscal 2024. Card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year are excluded from the table.
 
       
March 31, 2024
  
       
Millions of yen
  
Portfolio
segment
      
Origination year (years ended March 31)
        
Class
                                              
   
Credit Quality
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Total
  
Consumer borrowers:
              
  Performing   ¥   245,106     ¥   200,373     ¥ 165,337     ¥ 248,395     ¥ 334,364     ¥ 788,888     ¥ 1,982,463  
  Non-Performing     1,139       1,224       607       292       500       11,871     ¥ 15,633  
  Gross write-offs     1,268       3,500       988       228       147       685     ¥ 6,816  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Real estate loans
              
  Performing     219,407       182,697       161,632       247,905       334,009       788,635     ¥ 1,934,285  
  Non-Performing     109       22       508       281       486       11,770     ¥ 13,176  
  Gross write-offs     0       1       0       2       5       216     ¥ 224  
Other*
                
  Performing     25,699       17,676       3,705       490       355       253     ¥ 48,178  
  Non-Performing     1,030       1,202       99       11       14       101     ¥ 2,457  
  Gross write-offs     1,268       3,499       988       226       142       469     ¥ 6,592  
Corporate borrowers:
              
  Performing     484,932       236,795       276,776       96,684       121,132       183,404     ¥ 1,399,723  
  Non-Performing     5,144       3,346       26,661       5,255       6,705       23,023     ¥ 70,134  
  Gross write-offs     115       102       1,005       215       1,397       2,268     ¥ 5,102  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Non-recourse loans
              
Japan
                
  Performing     97,099       22,621       10,572       6,713       1,266       7,015     ¥ 145,286  
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
The Americas
              
  Performing     11,804       9,077       1,742       151       16,862       7,512     ¥ 47,148  
  Non-Performing     0       68       0       0       0       3,047     ¥ 3,115  
  Gross write-offs     0       0       0       0       0       55     ¥ 55  
Other than non-recourse loans
              
Real estate companies in Japan
              
  Performing     143,553       57,185       28,355       22,836       22,907       58,195     ¥ 333,031  
  Non-Performing     37       0       0       9       656       773     ¥ 1,475  
  Gross write-offs     0       0       0       0       4       0     ¥ 4  
Real estate companies in overseas
              
  Performing     4,334       16,493       9,972       2,764       3,352       4,663     ¥ 41,578  
  Non-Performing     489       581       4,444       515       2,205       9,947     ¥ 18,181  
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
 
 
       
March 31, 2024
  
       
Millions of yen
  
Portfolio
segment
      
Origination year (years ended March 31)
        
Class
                                              
   
Credit Quality
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Total
  
Commercial, industrial and other companies in Japan
              
  Performing     95,090       29,538       18,606       11,920       10,619       14,566     ¥ 180,339  
  Non-Performing     2       80       31       93       38       313     ¥ 557  
  Gross write-offs     0       76       54       29       22       100     ¥ 281  
Commercial, industrial and other companies in overseas
              
  Performing     133,052       101,881       207,529       52,300       66,126       91,453     ¥ 652,341  
  Non-Performing     4,616       2,617       22,186       4,638       3,806       8,943     ¥ 46,806  
  Gross write-offs     115       26       951       186       1,371       2,113     ¥ 4,762  
Loans to Equity method investees:
 
            
  Performing     133,587       27,874       72,407       2,091       58       13,983     ¥ 250,000  
  Non-Performing     0       230       327       0       0       1,372     ¥ 1,929  
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
Purchased loans:
              
  Performing     145       16       590       227       4,670       13,445     ¥ 19,093  
  Non-Performing     0       0       0       0       0       880     ¥ 880  
  Gross write-offs     1,163       409       229       44       206       45,671     ¥ 47,722  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net investment in leases:
              
  Performing     475,594       291,724       159,885       81,835       56,625       68,555     ¥ 1,134,218  
  Non-Performing     4,406       4,891       2,992       1,529       1,368       5,619     ¥ 20,805  
  Gross write-offs     1       190       839       422       298       885     ¥ 2,635  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Japan
                
  Performing     199,864       139,133       100,905       67,932       46,911       64,436     ¥ 619,181  
 
Non-Performing
     213       585       886       776       657       1,796     ¥ 4,913  
  Gross write-offs     0       26       101       129       158       583     ¥ 997  
Overseas
                
  Performing     275,730       152,591       58,980       13,903       9,714       4,119     ¥ 515,037  
 
Non-Performing
     4,193       4,306       2,106       753       711       3,823     ¥ 15,892  
  Gross write-offs     1       164       738       293       140       302     ¥ 1,638  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
(excluding revolving repayment card loans)
              
  Performing   ¥ 1,339,364     ¥ 756,782     ¥ 674,995     ¥ 429,232     ¥ 516,849     ¥ 1,068,275     ¥ 4,785,497  
 
Non-Performing
     10,689       9,691       30,587       7,076       8,573       42,765     ¥ 109,381  
  Gross write-offs     2,547       4,201       3,061       909       2,048       49,509     ¥ 62,275  
 
Note:
Loans held for sale, policy loan receivables of an insurance entity and financing receivables, such as accounts receivable are not included in the table above.
*
Other in loans to consumer borrowers includes claims receivable arising from payments on guarantee of consumer loans. For further information, see Note 31 “Commitments, Guarantees and Contingent Liabilities.”
 
The information about card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year as of March 31, 2023 is as follows:
 
   
March 31, 2023
  
   
Millions of yen
  
Portfolio segment
  
Revolving
repayment
card loans
    
Modification of
collection condition
by relief of contract
condition
    
Total—revolving
repayment card
loans
    
Total—

origination year

(excluding revolving

repayment card
loans)
    
Total—

financial assets
measured at amortized
cost
  
Credit quality
Consumer borrowers:
          
Performing
   ¥ 166,392     ¥ 0     ¥ 166,392     ¥ 4,518,503     ¥ 4,684,895  
         
 
 
  
Non-Performing
     1,588       3,655       5,243       93,608     ¥ 98,851  
         
 
 
  
The information about card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year as of March 31, 2024 and the gross write-offs, corresponding to card loans, recorded during fiscal 2024 is as follows:
 
   
March 31, 2024
  
   
Millions of yen
  
Portfolio segment
  
Revolving
repayment
card loans
    
Modification of
collection condition
by relief of contract
condition
    
Total—revolving
repayment card
loans
    
Total—

origination
year

(excluding
revolving

repayment
card loans)
    
Total—

financial
assets
measured at
amortized
cost
  
Credit quality
Consumer borrowers:
          
Performing
   ¥ 72,353     ¥     0     ¥ 72,353     ¥ 4,785,497     ¥ 4,857,850  
         
 
 
  
Non-Performing
     0       0       0       109,381     ¥ 109,381  
         
 
 
  
Gross write-offs
     780       138       918       62,275     ¥ 63,193  
         
 
 
  
Of non-performing assets, the Company and its subsidiaries consider smaller balance homogeneous loans (including real estate loans and card loans, among others, which are not restructured) and net investment in leases as the 90 days or more past-due financing receivables not individually evaluated, and consider all others as the loans individually evaluated. After the Company and its subsidiaries have set aside a provision for those non-performing assets, the Company and its subsidiaries continue to monitor at least on a quarterly basis the quality of any underlying collateral, the business conditions of the debtors and other important factors in order to report to management and develop additional provision for credit losses as necessary.
 
The following table provides information about the past-due financial assets as of March 31, 2023 and 2024:
 
   
March 31, 2023
  
       
Millions of yen
  
       
Past-due financial assets
        
Portfolio segment
  
Class
  
30-89 days

past-due
    
90 days

or more

past-due
    
Total

past-due
    
Total

financing

receivables
  
Consumer borrowers
     ¥ 4,574     ¥ 10,047     ¥ 14,621     ¥ 2,299,307  
  Real estate loans     1,739       2,181       3,920       2,056,959  
  Card loans     514       1,364       1,878       171,635  
  Other     2,321       6,502       8,823       70,713  
Corporate borrowers
       5,628       21,363       26,991       1,357,086  
Non-recourse loans
   Japan     0       0       0       124,499  
 
The Americas
     0       1,494       1,494       38,654  
Other than non-recourse loans
   Real estate companies in Japan     159       219       378       296,228  
  Real estate companies in overseas     1,412       13,618       15,030       79,645  
  Commercial, industrial and other companies in Japan     1,366       1,118       2,484       160,530  
  Commercial, industrial and other companies in overseas     2,691       4,914       7,605       657,530  
Loans to Equity method investees
       0       0       0       27,535  
Net investment in leases
       9,181       15,583       24,764       1,087,563  
  Japan     2,648       4,431       7,079       632,120  
  Overseas     6,533       11,152       17,685       455,443  
   
 
 
    
 
 
    
 
 
    
 
 
  
Total
     ¥ 19,383     ¥ 46,993     ¥ 66,376     ¥ 4,771,491  
   
 
 
    
 
 
    
 
 
    
 
 
  
 
   
March 31, 2024
  
       
Millions of yen
  
       
Past-due financial assets
        
Portfolio segment
  
Class
  
30-89 days

past-due
    
90 days

or more

past-due
    
Total

past-due
    
Total

financing

receivables
  
Consumer borrowers
     ¥   3,994     ¥   4,458     ¥   8,452     ¥ 2,070,449  
  Real estate loans     2,064       2,178       4,242       1,947,461  
  Card loans     0       0       0       72,353  
  Other     1,930       2,280       4,210       50,635  
Corporate borrowers
       12,576       27,469       40,045       1,469,857  
Non-recourse loans
   Japan     0       0       0       145,286  
  The Americas     2,502       1,126       3,628       50,263  
Other than non-recourse loans
   Real estate companies in Japan     113       115       228       334,506  
  Real estate companies in overseas     1,080       17,619       18,699       59,759  
  Commercial, industrial and other companies in Japan     1,666       355       2,021       180,896  
  Commercial, industrial and other companies in overseas     7,215       8,254       15,469       699,147  
Loans to Equity method investees
       0       0       0       251,929  
Net investment in leases
       23,376       18,995       42,371       1,155,023  
 
Japan
     2,525       4,372       6,897       624,094  
 
Overseas
     20,851       14,623       35,474       530,929  
   
 
 
    
 
 
    
 
 
    
 
 
  
Total
     ¥ 39,946     ¥ 50,922     ¥ 90,868     ¥ 4,947,258  
   
 
 
    
 
 
    
 
 
    
 
 
  
 
Note:
Loans held for sale, policy loans receivable of an insurance entity and purchased loans are not included in the table above.
In common with all classes, the Company and its subsidiaries consider financial assets as past-due financial assets when principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financial assets if the principals and interests are not past-due 30 days or more in accordance with the modified terms.
 
The following table provides information about non-accrual of financial assets as of March 31, 2023 and 2024:
 
   
March 31, 2023
  
   
Millions of yen
  
   
Beginning
balance
    
Ending
balance
    
Interest income
recognized during
the reporting period
    
Balance not
associated
allowance for credit
losses among
financial assets
measured at
amortized cost,
which is suspending
recognition of
income
  
Non-accrual of financial assets:
        
Installment loans to consumer borrowers:
        
Real estate loans
        
Japan
   ¥ 1,824     ¥ 1,693     ¥ 235     ¥ 41  
Overseas
     475       547       0       0  
Card loans
        
Japan
     503       1,367       28       0  
Other
        
Japan
     2,391       5,429       170       10  
Overseas
     519       1,105       0       0  
Installment loans to corporate borrowers:
        
Non-recourse loans
        
The Americas
     8,787       3,248       0       0  
Other than non-recourse loans
        
Real estate companies
        
Japan
     351       219       51       13  
Overseas
     20,879       12,804       0       0  
Commercial, industrial and other companies
        
Japan
     1,267       1,118       71       190  
Overseas
     18,634       20,470       0       2,113  
Loans to Equity method investees
     58       667       0       0  
Net investment in leases
     17,771       16,627       0       0  
 
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 73,459     ¥ 65,294     ¥ 555     ¥ 2,367  
 
 
 
    
 
 
    
 
 
    
 
 
  
 
   
March 31, 2024
  
   
Millions of yen
  
   
Beginning
balance
    
Ending
balance
    
Interest income
recognized during
the reporting period
    
Balance not
associated
allowance for credit
losses among
financial assets
measured at
amortized cost,
which is suspending
recognition of
income
  
Non-accrual of financial assets:
        
Installment loans to consumer borrowers:
        
Real estate loans
        
Japan
   ¥ 1,693     ¥ 1,095     ¥ 246     ¥ 129  
Overseas
     547       1,107       0       100  
Card loans
        
Japan
     1,367       0       27       0  
Other
        
Japan
     5,429       96       169       7  
Overseas
     1,105       2,574       0       35  
Installment loans to corporate borrowers:
        
Non-recourse loans
        
The Americas
     3,248       3,116       0       0  
Other than non-recourse loans
        
Real estate companies
        
Japan
     219       115       45       4  
Overseas
     12,804       16,093       0       0  
Commercial, industrial and other companies
        
Japan
     1,118       355       312       42  
Overseas
     20,470       27,636       0       2,319  
Loans to Equity method investees
     667       1,929       0       1,282  
Net investment in leases
     16,627       19,002       0       0  
 
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥   65,294     ¥   73,118     ¥   799     ¥   3,918  
 
 
 
    
 
 
    
 
 
    
 
 
  
The Company and its subsidiaries suspend accruing interest on past-due installment loans and net investment in leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return to accrual status non-accrual loans and net investment in leases when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and lease receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that are considered relevant in assessing the debtor’s creditworthiness, such as the debtor’s business characteristics and financial conditions as well as relevant economic conditions and trends.
 
The following table provides information about troubled debt restructurings of financing receivables that occurred during fiscal 2022 and fiscal 2023:
 
   
Fiscal Year ended March 31, 2022
  
       
Millions of yen
  
Portfolio segment
  
Class
  
Pre-modification

outstanding

recorded investment
    
Post-modification

outstanding

recorded investment
  
Consumer borrowers
     ¥ 8,761     ¥ 6,152  
  Real estate loans     15       6  
  Card loans     1,385       1,072  
  Other     7,361       5,074  
Corporate borrowers
       5,481       5,319  
Other than
n
on-recourse loans
  
Commercial, industrial and
other companies in overseas
     5,481       5,319  
   
 
 
    
 
 
  
Total
     ¥   14,242     ¥   11,471  
   
 
 
    
 
 
  
 
   
Fiscal Year ended March 31, 2023
  
       
Millions of yen
  
Portfolio segment
  
Class
  
Pre-modification

outstanding

recorded investment
    
Post-modification

outstanding

recorded investment
  
Consumer borrowers
     ¥ 7,977     ¥ 6,171  
  Real estate loans     10       4  
  Card loans     1,536       1,312  
  Other     6,431       4,855  
Corporate borrowers
       10,510       10,507  
Other than non-recourse loans
   Real estate companies in Japan     231       230  
 
Commercial, industrial and
other companies in overseas
     10,279       10,277  
   
 
 
    
 
 
  
Total
     ¥   18,487     ¥   16,678  
   
 
 
    
 
 
  
A troubled debt restructuring is defined as a restructuring of a financing receivable in which the creditor grants a concession to the debtor for economic or other reasons related to the debtor’s financial difficulties.
The Company and its subsidiaries offer various types of concessions to our debtors to protect as much of the investment as possible in troubled debt restructurings. For the debtors of all financing receivables, the Company and its subsidiaries offer concessions including an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. In addition, for the debtors of all financing receivables other than non-recourse loans, the Company and its subsidiaries also offer concessions such as a reduction of the loan principal or a temporary reduction in the interest payments. Furthermore, the Company and its subsidiaries may acquire collateral assets from the debtors in troubled debt restructurings to satisfy fully or partially the loan principal or past due interest.
In common with all portfolio segments, financing receivables modified as troubled debt restructurings are recognized as impaired and are individually evaluated for allowance for credit losses. In most cases, these financing receivables have already been considered impaired and individually evaluated for allowance for credit losses prior to the restructurings. However, as a result of the restructuring, the Company and its subsidiaries may recognize additional allowance for credit losses for the restructured receivables.
 
For fiscal 2023, while there are financial assets for which the payments were deferred other than those in the troubled debt restructuring stated above due to the spread of COVID-19, the payment deferrals, which are determined not to meet the definition of a troubled debt restructuring are not included in the troubled debt restructuring stated the above.
The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2023 and for which there was a payment default during fiscal 2022 and fiscal 2023:
 
    
Fiscal Year ended March 31, 2022
  
         
Millions of yen
  
Portfolio segment
   
Class
   
Recorded investment
  
Consumer borrowers
       ¥ 900  
   Real estate loans      4  
   Card loans      6  
   Other      890  
     
 
 
  
Total
       ¥   900  
     
 
 
  
 
    
Fiscal Year ended March 31, 2023
  
         
Millions of yen
  
Portfolio segment
   
Class
   
Recorded investment
  
Consumer borrowers
       ¥ 808  
   Real estate loans      5  
   Card loans      2  
   Other      801  
Corporate borrowers
         4,692  
Other than non-recourse loans
   
Commercial, industrial and
other companies in overseas
      4,692  
     
 
 
  
Total
       ¥ 5,500  
     
 
 
  
The Company and its subsidiaries consider financing receivables whose terms have been modified in a restructuring as defaulted receivables when principal or interest is past-due 90 days or more in accordance with the modified terms.
In common with all portfolio segments, the Company and its subsidiaries suspend accruing interest and may recognize additional allowance for credit losses as necessary for the defaulted financing receivables.
 
The following table provides information about modifications of financing receivables made to debtors experiencing financial difficulty that occurred during fiscal 2024:


Fiscal Year ended March 31, 2024
 
Millions of yen
 
Portfolio segment
  
Interest rate reduction
 
  
Term extension
 
  
Principal forgiveness
 
Class
  
Amortized
cost basis
 
  
% of total
class of
financing
receivable
 
  
Amortized
cost basis
 
  
% of total
class of
financing
receivable
 
  
Amortized
cost basis
 
  
% of total

class of
financing
receivable
 
Consumer borrowers
  
¥
1,266
 
  
 
0.1
 
  
¥
4,652
 
  
 
0.2
 
  
¥
42
 
  
 
0.0
 
Real estate loans
     5       0.0       1       0.0       1       0.0  
Card loans
     1,176       1.6       6       0.0       40       0.1  
Other
     85       0.2       4,645       9.2       1       0.0  
Corporate borrowers
     0       0       4,499       0.3       932       0.1  
Non-recourse loans
     0       0       1,277       0.7       0       0  
The Americas
     0       0       1,277       2.5       0       0  
Other than non-recourse loans
     0       0       3,222       0.3       932       0.1  
Real estate companies in Japan
     0       0       69       0.0       0       0  
Commercial, industrial and other
companies in Japan
     0       0       711       0.4       0       0  
Commercial, industrial and other
companies in overseas
     0       0       2,442       0.3       932       0.1  
Loans to Equity method investees
     0       0       955       0.4       0       0.0  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 1,266       0.0     ¥ 10,106       0.2     ¥ 974       0.0  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Portfolio segment
  
Combination - interest rate

reduction and term
extension
 
  
Combination - interest rate

reduction and principal
forgiveness
 
  
Combination - term
extension and principal
forgiveness
 
Class
  
Amortized
cost basis
 
  
% of total
class of
financing
receivable
 
  
Amortized
cost basis
 
  
% of total
class of
financing
receivable
 
  
Amortized
cost basis
 
  
% of total
class of
financing
receivable
 
Consumer borrowers
   ¥ 93       0.0     ¥ 546       0.0     ¥ 365       0.0  
Real estate loans
     0       0       2       0.0       0       0  
Card loans
     0       0.0       525       0.7       0       0  
Other
     93       0.2       19       0.0       365       0.7  
Corporate borrowers
     446       0.0       0       0       220       0.0  
Non-recourse loans
     0       0       0       0       0       0  
The Americas
     0       0       0       0       0       0  
Other than non-recourse loans
     446       0.0       0       0       220       0.0  
Real estate companies in Japan
     0       0       0       0       0       0  
Commercial, industrial and other
companies in Japan
     0       0       0       0       0       0  
Commercial, industrial and other
companies in overseas
     446       0.1       0       0       220       0.0  
Loans to Equity method investees
     0       0       0       0       3,392       1.3  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 539       0.0     ¥ 546       0.0     ¥ 3,977       0.1  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Fiscal Year ended March 31, 2024
  
   
Millions of yen
  
Portfolio segment
  
Combination - interest rate
reduction, term extension and
principal forgiveness
  
Class
  
Amortized

cost basis
    
% of total

class of
financing
receivable
  
Consumer borrowers
   ¥ 0       0  
Real estate loans
     0       0  
Card loans
     0       0  
Other
     0       0  
Corporate borrowers
     327       0.0  
Non-recourse loans
     0       0  
The Americas
     0       0  
Other than non-recourse loans
     327       0.0  
Real estate companies in Japan
     0       0  
Commercial, industrial and other companies in Japan
     0       0  
Commercial, industrial and other companies in overseas
     327       0.0  
Loans to Equity method investees
     0       0  
 
 
 
    
 
 
  
Total
   ¥ 327       0.0  
 
 
 
    
 
 
  
The Company and its subsidiaries offer various types of concessions to the debtors to protect as much of the investment as possible in modifications of financing receivables made to debtors experiencing financial difficulty. For the debtors of all financing receivables, the Company and its subsidiaries offer concessions including an interest rate reduction and a term extension. In addition, for the debtors of all financing receivables other than non-recourse loans, the Company and its subsidiaries also offer concessions such as a principal forgiveness or a temporary reduction in the interest payments. Furthermore, the Company and its subsidiaries may acquire collateral assets from the debtors in modifications of financing receivables made to debtors experiencing financial difficulty to satisfy fully or partially the loan principal or past due interest.
In common with all portfolio segments, financing receivables modified to debtors experiencing financial difficulty are recognized as impaired and are individually evaluated for allowance for credit losses, taking into account payment default and repayment status after modifications. In most cases, these financing receivables have already been considered impaired and individually evaluated for allowance for credit losses prior to the modifications. However, as a result of the modification, the Company and its subsidiaries may recognize additional allowance for credit losses for the modified receivables.
 
The following table provides information about the financial effect of the modifications of financing receivables made to debtors experiencing financial difficulty that occurred during fiscal 2024:
 
    
Fiscal Year ended March 31, 2024
    
Millions of yen
Portfolio segment
   
Financial effect
Class
   
Interest rate reduction
   
Term extension
   
Principal forgiveness
Consumer borrowers
         
Real estate loans
    Reduced weighted-average contractual interest rate from 5.3% to 0.0%.    Added a weighted-average 1.0 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥8 million.
Card loans
    Reduced weighted-average contractual interest rate from 12.7% to 0.7%.    Added a weighted-average 0.9 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥185 million.
Other
    Reduced weighted-average contractual interest rate from 14.6% to 5.3%.    Added a weighted-average 4.9 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥785 million.
Corporate borrowers
         
Non-recourse loans
         
The Americas
    —     Added a weighted-average 1.0 years to the life of loans.    — 
Other than
n
on-recourse loans
         
Real estate companies in Japan
    —     Added a weighted-average 0.5 years to the life of loans.    — 
Commercial, industrial and other companies in Japan
    —     Added a weighted-average 1.0 years to the life of loans.    — 
Commercial, industrial and other companies in overseas
    Reduced weighted-average contractual interest rate from 8.8% to 6.4%.    Added a weighted-average 3.1 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥1,487 million.
Loans to Equity method investees
    —    
Added a weighted-average 0.6 years to the life of loans.
 		    Reduced the amortized cost basis of the loans by ¥624 million.
Net investment in leases
         
Overseas
    —     —     Reduced the amortized cost basis of the loans by ¥0 million.
 
 
The following table provides information about financing receivable that had a payment default and had been modified, when the debtor was experiencing financial difficulty, within the previous 12 months preceding the payment default date during fiscal 2024.
 
   
Fiscal Year ended March 31, 2024
  
   
Millions of yen
  
Portfolio segment
  
Interest rate
reduction
    
Term extension
    
Principal
forgiveness
    
Combination
-interest rate
reduction and
term
extension
    
Combination
-interest rate
reduction and
principal
forgiveness
    
Combination
- term extension

and principal
forgiveness
  
Class
Consumer borrowers
   ¥   25     ¥   212     ¥   1     ¥   0     ¥   33     ¥   9  
Real estate loans
     3       0       0       0       0       0  
Card loans
     18       0       1       0       28       0  
Other
     4       212       0       0       5       9  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 25     ¥ 212     ¥ 1     ¥ 0     ¥ 33     ¥ 9  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The Company and its subsidiaries consider financing receivables whose terms have been modified to debtors experiencing financial difficulty as defaulted receivables when principal or interest is past-due 90 days or more in accordance with the modified terms.
In common with all portfolio segments, the Company and its subsidiaries suspend accruing interest and may recognize additional allowance for credit losses as necessary for the defaulted receivables.
The following table provides information about the past-due financial assets modified to debtors experiencing financial difficulty within the previous 12 months from March 31, 2024:
 
   
March 31, 2024
  
   
Millions of yen
  
Portfolio segment
  
Current
    
30-89 days
past-due
    
90 days
or more
past-due
  
Class
Consumer borrowers
   ¥ 35     ¥ 91     ¥ 7  
Real estate loans
     1       0       0  
Card loans
     0       0       0  
Other
     34       91       7  
Corporate borrowers
     6,140       0       284  
Non-recourse loans
     1,277       0       0  
The Americas
     1,277       0       0  
Other than non-recourse loans
     4,863       0       284  
Real estate companies in Japan
     37       0       32  
Commercial, industrial and other companies in Japan
     481       0       230  
Commercial, industrial and other companies in overseas
     4,345       0       22  
Loans to Equity method investees
     4,347       0       0  
 
 
 
    
 
 
    
 
 
  
Total
   ¥ 10,522     ¥ 91     ¥ 291  
 
 
 
    
 
 
    
 
 
  
As of March 31, 2023 and 2024, there were no foreclosed residential real estate properties. The carrying amounts of installment loans in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure were ¥57 million and ¥119 million as of March 31, 2023 and 2024, respectively.