Goodwill and Other Intangible Assets

12 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

13. Goodwill and Other Intangible Assets

Changes in goodwill by reportable segment for fiscal 2022, 2023 and 2024 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, 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
Acquired		0			0			4,241			0			0			0
Impairment		0			0			0			0			0			0
Other (net)*		(54	)		0			(35,556	)		6,840			(192	)		(10,971	)

Balance at March 31, 2024
Goodwill		15,900			16,359			175,436			65,047			4,823			0
Accumulated impairment losses		(849	)		(191	)		0			(39	)		(371	)		0

	¥	15,051		¥	16,168		¥	175,436		¥	65,008		¥	4,452		¥	0


	Millions of yen
	Aircraft and Ships			ORIX USA			ORIX Europe		Asia and Australia			Corporate		Total
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
Acquired		0			0			0		0			0		4,241
Impairment		0			0			0		0			0		0
Other (net)*		0			20,298			18,927		554			0		(154	)

Balance at March 31, 2024
Goodwill		587			173,374			177,515		8,767			278		638,086
Accumulated impairment losses		(587	)		(1,494	)		0		(2,785	)		0		(6,316	)

	¥	0		¥	171,880		¥	177,515	¥	5,982		¥	278	¥	631,770

*	Other (net) 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 ¥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

and 2024.

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, 2023 and 2024 consist of the following:


	Millions of yen
	2023			2024
Indefinite-lived intangible assets:
Trademarks and trade names	¥	115,049		¥	126,192
Asset management contracts		51,558			57,928
Others		12,375			3,156

		178,982			187,276

Intangible assets subject to amortization:
Software		141,747			142,049
Customer relationships		161,936			184,475
Asset management contracts		104,481			117,043
Others		154,413			165,130

		562,577			608,697
Accumulated amortization		(223,417	)		(263,023	)

Net		339,160			345,674

	¥	518,142		¥	532,950

The aggregate amortization expenses for intangible assets are ¥32,235 million, ¥34,212 million and ¥39,213 million in fiscal 2022, 2023 and 2024, respectively.

The estimated amortization expenses for each of five succeeding fiscal years are ¥39,066 million in fiscal 2025, ¥34,108 million in fiscal 2026, ¥32,021 million in fiscal 2027, ¥26,415 million in fiscal 2028 and ¥25,322 million in fiscal 2029, respectively.

Intangible assets subject to amortization increased during fiscal 2024 are ¥41,043 million. They mainly consist of ¥16,500 million of software and ¥12,273 million of customer relationships recognized in acquisitions. The weighted average amortization periods for the software and customer relationships recognized in acquisitions are 7 years and 16 years, respectively.

As a result of the impairment test, 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, and these impairment losses were included in other (income) and expense in the consolidated statements of income. The Company and its su

bsidiaries recognized impairment losses of ¥

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 202

, and th

ese

impairment

losses were

included in

other (income)

and expense in the consolidated statements of income. The Company and its s

ubsidiaries recognized impairment losses of ¥24 million on intangible assets included in PE Investment and Concession segment, ¥87 million on intangible assets included in Environment and Energy segment, and ¥37 million on intangible assets included in Asia and Australia segment during fiscal 2024, and these impairment losses were included in

selling, general and administrative expenses 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.