NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
21. Segment Information
(1) Overview of Reportable Segments
The Companies’ reportable segments are the compo-nents for which separate financial information is available, and whose operating results are reviewed regularly by the board of directors in order to determine allocation of resources and assess segment performance.
The Companies have four reportable segments, the Leasing Business, Construction Business, Elderly Care Business and Hotels & Resort Business.
The Leasing Business operations comprise the leasing and management of apartment buildings and other prop-erties, repair work, broadband internet service, rent obli-gation guarantee, and the company residence agency
business. The Construction Business constructs apart-ments and other buildings and installs solar power sys-tems on a contract basis. The Elderly Care Business oper-ates elderly care facilities. The Hotels & Resort Business operates hotels and resort facilities.
(2) Calculation Method for Sales, Profits and Losses, Assets, and other Items by Reportable Segment The accounting methods for reportable segments are basically the same as that presented in “Summary of Significant Accounting Policies.” The reportable segment profits (losses) represent operating income (loss). Inter-segment sales and transfers are based on prevailing mar-ket prices.
(3) Information Regarding Sales, Profits and Losses, Assets, and other Items by Reportable Segment for the years ended March 31, 2016 and 2015 were as follows:
March 31, 2016
Millions of yen Reportable segment
Others Total Adjustments Consolidated Total Leasing
Business
Construction Business
Elderly Care Business
Hotels &
Resort Business
Segment Total
Sales
Sales to customers 410,552 74,160 10,798 11,427 506,939 4,485 511,424 — 511,424 Inter-segment sales
and transfers 944 2,614 — 3,640 7,199 149 7,349 (7,349) —
Total 411,497 76,774 10,798 15,068 514,139 4,635 518,774 (7,349) 511,424
Segment profit (loss) 22,760 3,339 (1,354) (697) 24,047 337 24,385 (3,388) 20,996 Segment assets 99,329 16,755 2,657 55,246 173,988 23,076 197,065 129,825 326,890 Other items
Depreciation 3,740 205 49 2,013 6,009 2,059 8,069 1,544 9,614
Increase in property, plant, and equipment,
and intangible assets 6,245 91 271 1,850 8,459 3,917 12,376 1,599 13,976
Millions of yen Thousands of U.S. dollars
Inter-segment eliminations (320) (2,844)
Corporate expenses* (3,067) (27,227)
Total (3,388) (30,071)
(Notes) 1. The “Others” classification is the business segment not included in reportable segments, and comprises the small-claims and short-term insurance business, solar power business, and financing business.
2. Breakdown of adjustments was as follows:
Segment profit (loss)
*Corporate expenses consist mainly of general administrative expenses for administrative departments that are not part of reportable segments.
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Adjustments in segment assets (129,825 million yen, $1,152,158 thousand) consist mainly of surplus operating funds, long-term investment capital, and assets which do not belong to reportable segments.
Adjustments in the increase of property, plant, and equipment, and intangible assets (1,599 million yen,
$14,199 thousand) consist of capital investments which do not belong to reportable segments.
3. Segment profit (loss) is adjusted to operating profit on the consolidated statements of operations.
(Notes) 1. The “Others” classification is the business segment not included in reportable segments, and comprises the small-claims and short-term insurance business, solar power business, and financing business.
2.Breakdown of adjustments was as follows:
Segment profit (loss)
*Corporate expenses consist mainly of general administrative expenses for administrative departments that are not part of reportable segments.
Adjustments in segment assets (114,832 million yen) consist mainly of surplus operating funds, long-term investment capital, and assets which do not belong to reportable segments.
Adjustments in the increase of property, plant, and equipment, and intangible assets (5,514 million yen) con-sist of capital investments which do not belong to reportable segments.
3. Segment profit (loss) is adjusted to operating profit on the consolidated statements of operations.
March 31, 2015
Millions of yen Reportable segment
Others Total Adjustments Consolidated Total Leasing
Business
Construction Business
Elderly Care Business
Hotels &
Resort Business
Segment Total
Sales
Sales to customers 399,316 61,312 10,608 8,951 480,188 2,999 483,188 — 483,188 Inter-segment sales
and transfers 790 12,065 — 2,827 15,682 127 15,810 (15,810) —
Total 400,107 73,378 10,608 11,778 495,871 3,127 498,999 (15,810) 483,188
Segment profit (loss) 20,532 210 (606) (1,289) 18,848 31 18,879 (4,116) 14,763 Segment assets 96,218 16,810 2,428 56,502 171,960 21,481 193,441 114,832 308,274 Other items
Depreciation 2,992 170 24 1,872 5,060 1,330 6,390 1,345 7,736
Increase in property, plant, and equipment,
and intangible assets 5,551 73 21 1,017 6,663 12,180 18,844 5,514 24,358
Millions of yen
Inter-segment eliminations (1,346)
Corporate expenses* (2,769)
Total (4,116)
March 31, 2016
Thousands of U.S. dollars Reportable segment
Others Total Adjustments Consolidated Total Leasing
Business
Construction Business
Elderly Care Business
Hotels &
Resort Business
Segment Total
Sales
Sales to customers 3,643,527 658,147 95,835 101,417 4,498,928 39,808 4,538,736 — 4,538,736 Inter-segment sales
and transfers 8,383 23,202 — 32,311 63,897 1,330 65,228 (65,228) —
Total 3,651,911 681,349 95,835 133,728 4,562,825 41,138 4,603,964 (65,228) 4,538,736 Segment profit (loss) 201,995 29,632 (12,017) (6,192) 213,418 2,993 216,412 (30,071) 186,340 Segment assets 881,517 148,698 23,588 490,292 1,544,097 204,798 1,748,895 1,152,158 2,901,054 Other items
Depreciation 33,199 1,826 438 17,869 53,334 18,280 71,615 13,709 85,325
Increase in property, plant, and equipment,
and intangible assets 55,427 814 2,412 16,418 75,073 34,767 109,840 14,199 124,040
Related information 1. Products and services
Information concerning products and services has been omitted, since similar information is reported in “21. Segment Information.”
2. Geographic area (1) Sales
Information concerning sales by geographic area has been omitted, since more than 90% of sales reported in the con-solidated statement of operations are generated in Japan.
(2) Plant, property, and equipment March 31, 2016
Millions of yen Japan Trust territory of
U.S.A. Guam
People’s Republic of
China
Kingdom of Thailand
Socialist Republic of
Vietnam
Kingdom of Cambodia
Republic of the Philippines
Republic of
Indonesia Total
128,355 41,785 1 1,283 6 468 120 15 172,036
Thousands of U.S. dollars Japan Trust territory of
U.S.A. Guam
People’s Republic of
China
Kingdom of Thailand
Socialist Republic of
Vietnam
Kingdom of
Cambodia Republic of the
Philippines Republic of
Indonesia Total
1,139,118 370,831 15 11,387 53 4,156 1,071 140 1,526,773
Millions of yen Japan Trust territory of
U.S.A. Guam
People’s Republic of
China Kingdom of Thailand Kingdom of Cambodia Total
126,835 42,396 3 7 187 169,430
March 31, 2015
March 31, 2016
3. Major customers
Information concerning sales to major customers has been omitted, since sales to any particular customer does not exceed 10% of sales reported in the consolidated statement of operations.
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Information concerning impairment loss on fixed assets by reportable segments March 31, 2016
March 31, 2015
March 31, 2016
Millions of yen Leasing
Business Construction
Business Elderly Care
Business Hotels & Resort
Business Others Adjustments Consolidated total
Impairment loss 605 — — — — 11 616
Millions of yen Leasing
Business Construction
Business Elderly Care
Business Hotels & Resort
Business Others Adjustments Consolidated total
Impairment loss 161 — — 62 — — 224
Thousands of U.S. dollars Leasing
Business
Construction Business
Elderly Care Business
Hotels & Resort
Business Others Adjustments Consolidated total
Impairment loss 5,369 — — — — 104 5,473
Information concerning goodwill amortization and unamortized balance by reportable segments March 31, 2016
March 31, 2015
Millions of yen Leasing
Business
Construction Business
Elderly Care Business
Hotels & Resort
Business Others Adjustments Consolidated total
Goodwill amortization — 154 — — — — 154
Balance — 1,530 — — — — 1,530
Millions of yen Leasing
Business Construction
Business Elderly Care
Business Hotels & Resort
Business Others Adjustments Consolidated total
Goodwill amortization — — — 4 — — 4
Balance — 1,684 — — — — 1,684
March 31, 2016
Information concerning gain on negative goodwill by reportable segments For the years ended March 31, 2016 and 2015
Not applicable.
Thousands of U.S. dollars Leasing
Business
Construction Business
Elderly Care
Business Hotels & Resort
Business Others Adjustments Consolidated total
Goodwill amortization — 1,370 — — — — 1,370
Balance — 13,582 — — — — 13,582