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Estimated Fair Value of Financial Instruments

6 Months Ended

Sep. 30, 2023

Estimated Fair Value of Financial Instruments

23.	Estimated Fair Value of Financial Instruments

The following information is provided to help readers gain an understanding of the relationship between carrying amounts of financial instruments reported in the Company’s consolidated balance sheets and the related market or fair value. The disclosures do not include net investment in leases, investment in affiliates accounted for under the equity method, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts.

March 31, 2023


	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	1,231,860	¥	1,231,860	¥	1,231,860	¥	0	¥	0
Restricted cash		135,048		135,048		135,048		0		0
Installment loans (net of allowance for credit losses)		3,829,431		3,807,987		0		128,249		3,679,738
Equity securities*1		379,236		379,236		105,646		133,027		140,563
Trading debt securities		2,179		2,179		0		2,179		0
Available-for-sale debt securities		2,234,608		2,234,608		4,334		1,986,672		243,602
Held-to-maturity debt securities		114,759		129,678		0		108,326		21,352
Certain investment in affiliates		2,511		2,511		0		0		2,511
Other Assets:
Time deposits		4,374		4,374		0		4,374		0
Derivative assets*2		50,346		50,346		0		0		0
Reinsurance recoverables (Investment contracts)		5,301		5,009		0		0		5,009
Liabilities:
Short-term debt	¥	508,796	¥	508,796	¥	0	¥	508,796	¥	0
Deposits		2,086,340		2,087,035		0		2,087,035		0
Policy liabilities and Policy account balances (Investment contracts)		143,407		143,842		0		0		143,842
Long-term debt		5,209,723		5,164,112		0		1,667,119		3,496,993
Other Liabilities:
Derivative liabilities*2		49,314		49,314		0		0		0

*1	The amount of ¥51,263 million of investment funds measured at net asset value per share is not included.

*2	It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 3 “Fair Value Measurements.”

September 30, 2023


	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	915,107	¥	915,107	¥	915,107	¥	0	¥	0
Restricted cash		139,123		139,123		139,123		0		0
Installment loans (net of allowance for credit losses)		3,895,424		3,877,262		0		136,985		3,740,277
Equity securities*1		410,199		410,199		116,421		133,647		160,131
Trading debt securities		2,259		2,259		0		2,259		0
Available-for-sale debt securities		2,318,317		2,318,317		5,282		2,030,880		282,155
Held-to-maturity debt securities		115,515		124,120		0		104,028		20,092
Certain investment in affiliates		5,003		5,003		0		0		5,003
Other Assets:
Time deposits		4,600		4,600		0		4,600		0
Derivative assets*2		56,348		56,348		0		0		0
Reinsurance recoverables (Investment contracts)		4,943		4,566		0		0		4,566
Liabilities:
Short-term debt	¥	586,379	¥	586,379	¥	0	¥	586,379	¥	0
Deposits		2,051,992		2,052,118		0		2,052,118		0
Policy liabilities and Policy account balances (Investment contracts)		133,841		133,208		0		0		133,208
Long-term debt		5,448,244		5,388,098		0		1,815,990		3,572,108
Other Liabilities:
Derivative liabilities*2		55,951		55,951		0		0		0

*1	The amount of ¥68,018 million of investment funds measured at net asset value per share is not included.

*2	It represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 3 “Fair Value Measurements.”

Input level of fair value measurement

If active market prices are available, fair value measurement is based on quoted active market prices and classified as Level 1. If active market prices are not available, fair value measurement is based on observable inputs other than quoted prices included within Level 1 such as quoted market prices of similar assets and classified as Level 2. If market prices are not available and there are no observable inputs, then fair value is estimated by using valuation models including discounted cash flow methodologies, commonly used option-pricing models and broker quotes and classified as Level 3, as the valuation models and broker quotes are based on inputs that are unobservable in the market.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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