Leases (Tables)

12 Months Ended

Mar. 31, 2026

Lease income for fiscal 2024, 2025 and 2026 are as follows:


	Millions of yen
	Fiscal Year ended March 31, 2024		Fiscal Year ended March 31, 2025		Fiscal Year ended March 31, 2026
Lease income – net investment in leases
Interest income	¥	87,189	¥	92,327	¥	96,118
Other		2,500		3,849		4,207
Lease income – operating leases *		535,490		624,444		641,185

Total lease income	¥	625,179	¥	720,620	¥	741,510

Gains from the disposition of real estate under operating leases included in operating lease revenues were ¥20,960 million, ¥31,965 million and ¥20,689 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues were ¥32,481 million, ¥44,668 million and ¥49,426 million for fiscal 2024, 2025 and 2026, respectively.

Net investment in lease direct financing and sales type

Net investment in leases at March 31, 2025 and 2026 consists of the following:


	Millions of yen
	March 31, 2025		March 31, 2026
Lease receivables*	¥	1,132,186	¥	1,209,630
Unguaranteed residual value		33,908		36,581
Initial direct costs		1,286		1,280

Total	¥	1,167,380	¥	1,247,491

Some lease contracts are subject to government assistance for the customers’ acquisition of leased assets, mainly for the purpose of environmental measures. This government assistance is accounted for as a reduction of lease receivables of lease contracts when the Company and its subsidiaries confirm receipt of cash. The amount of a reduction of lease receivables were ¥32,357 million and ¥31,482 million as of March 31, 2025 and 2026, respectively. Benefits of the government assistance are attributed to the customers by the reduced lease payments. Furthermore, remaining term of government assistance contracts ranges up to 13 years and 15 years as of March 31, 2025 and 2026, respectively. And when receiving the government assistance, restrictions mainly on disposal of property and duty of keeping documents occur for a certain period of time.

Investment in Operating Leases

Investment in operating leases at March 31, 2025 and 2026 consists of the following:


	Millions of yen
	March 31, 2025			March 31, 2026
Transportation equipment	¥	1,912,604		¥	1,987,797
Measuring and information-related equipment		436,122			523,388
Real estate		364,004			461,203
Other		82,516			101,678

		2,795,246			3,074,066
Accumulated depreciation		(946,341	)		(1,033,293	)

Net		1,848,905			2,040,773
Right-of-use assets		73,518			69,030
Accrued rental receivables		46,248			44,415
Allowance for doubtful receivables on operating leases		(1,493	)		(1,398	)

Total	¥	1,967,178		¥	2,152,820

Depreciation and Various Expenses (Insurance, Property Tax and Other) of Operating Lease

Costs of operating leases include depreciation and various expenses (insurance, property tax and other). Depreciation and various expenses for fiscal 2024, 2025 and 2026 are as follows:


	Millions of yen
	2024		2025		2026
Depreciation expenses	¥	261,723	¥	283,219	¥	297,448
Various expenses		95,037		111,602		114,491

Total	¥	356,760	¥	394,821	¥	411,939

Lease Receivables of the Operating Lease Contracts

Remaining lease receivables of net investment in leases (including residual value guarantees) range up to 23 years at March 31, 2026. Remaining lease receivables of the operating lease contracts range up to 55 years at March 31, 2026. At March 31, 2026, the amounts due in each of the next five years and thereafter are as follows:


	Millions of yen
Years ending March 31,	Net investment in leases		Operating leases
2027	¥	520,199	¥	429,844
2028		345,808		272,626
2029		232,063		185,794
2030		137,127		115,082
2031		75,980		66,122
Thereafter		59,430		130,839

Total lease payments		1,370,607	¥	1,200,307

Less imputed interest		(160,977)

Total lease receivables	¥	1,209,630

Component of Lease Expense

The component of lease expense for fiscal 2024, 2025 and 2026 are as follows:


	Millions of yen			Millions of yen			Millions of yen
	Year ended March 31, 2024			Year ended March 31, 2025			Year ended March 31, 2026
Finance lease cost
Depreciation expenses of right-of-use assets	¥	580		¥	574		¥	406
Interest expenses of lease liabilities		84			67			101

		664			641			507

Operating lease cost		53,405			53,013			56,020
Short-term lease cost		3,048			2,997			2,543
Variable lease cost		2,721			4,339			6,963
Sublease income		(9,512	)		(9,971	)		(21,019	)

Total	¥	50,326		¥	51,019		¥	45,014

Cash Flow Information Related To Lease

Supplemental cash flow information related to leases for fiscal 2024, 2025 and 2026 are as follows:


	Millions of yen
	Year Ended March 31, 2024
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	84	¥	52,729
Cash flows from financing activities		664		0

Right-of-use assets obtained in exchange for lease liabilities:	¥	1,481	¥	27,427


	Millions of yen
	Year Ended March 31, 2025
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	67	¥	52,277
Cash flows from financing activities		725		0

Right-of-use assets obtained in exchange for lease liabilities:	¥	407	¥	54,161

	Millions of yen
	Year Ended March 31, 2026
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	101	¥	53,584
Cash flows from financing activities		481		0
Right-of-use assets obtained in exchange for lease liabilities:	¥	454	¥	49,111

Balance Sheet Information Related to Lessee Leases

Supplemental balance sheet information related to lessee leases at March 31, 2025 and 2026 are as follows:


	Millions of yen, except lease term and discount rate
	March 31, 2025
	Finance leases			Operating leases
Investment in Operating Leases	¥	4,634		¥	68,883
Property under Facility Operations		1,863			99,201
Office Facilities		537			81,396

Total right-of-use assets		7,034			249,480

Other Liabilities		7,479			251,860

Total lease liabilities	¥	7,479		¥	251,860

Weighted average remaining lease term		35 years			12 years

Weighted average discount rate		2.0	%		1.7	%


	Millions of yen, except lease term and discount rate
	March 31, 2026
	Finance leases			Operating leases
Investment in Operating Leases	¥	87		¥	68,943
Property under Facility Operations		2,376			105,299
Office Facilities		617			91,192

Total right-of-use assets		3,080			265,434

Other Liabilities		3,400			268,286

Total lease liabilities	¥	3,400		¥	268,286

Weighted average remaining lease term		11 years			11 years

Weighted average discount rate		2.0	%		2.1	%

Operating And Finance Lease Liability Maturity

At March 31, 2026, the amounts of lease liabilities related to lessee leases due in each of the next five years and thereafter are as follows:


	Millions of yen
Years ending March 31,	Finance leases			Operating leases
2027	¥	735		¥	56,037
2028		641			40,032
2029		565			32,508
2030		339			28,052
2031		260			24,266
Thereafter		1,384			123,813

Total lease payments		3,924			304,708

Less imputed interest		(524	)		(36,422	)

Total lease liabilities	¥	3,400		¥	268,286