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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Sep. 30, 2023

Changes in Components of Accumulated Other Comprehensive Income (Loss)

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the six months ended September 30, 2022 and 2023, are as follows:


	Six months ended September 30, 2022
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Impact of changes in policy liability discount rate		Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments		Net unrealized gains (losses) on derivative instruments		Accumulated other comprehensive income (loss)
Balance at March 31, 2022	¥	(72,892	)	¥	37,535	¥	221		¥	(8,072	)	¥	61,914	¥	2,788	¥	21,494

Net unrealized gains (losses) on investment in securities, net of tax of ¥54,025 million		(142,995	)														(142,995	)
Reclassification adjustment included in net income, net of tax of ¥292 million		(872	)														(872	)
Impact of changes in policy liability discount rate, net of tax of ¥ (61,736) million					159,366												159,366
Debt valuation adjustments, net of tax of ¥(25) million							66										66
Reclassification adjustment included in net income, net of tax of ¥2 million							(6	)									(6	)
Defined benefit pension plans, net of tax of ¥81 million										(225	)						(225	)
Reclassification adjustment included in net income, net of tax of ¥33 million										(91	)						(91	)
Foreign currency translation adjustments, net of tax of ¥27,143 million													184,993				184,993
Reclassification adjustment included in net income, net of tax of ¥(12) million													102				102
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(4,707) million															17,082		17,082
Reclassification adjustment included in net income, net of tax of ¥(436) million															1,449		1,449

Total other comprehensive income (loss)		(143,867	)		159,366		60			(316	)		185,095		18,531		218,869

Less: Other Comprehensive Income Attributable to the Noncontrolling Interests		0			0		0			2			7,886		1,472		9,360

Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0		0			0			88		0		88

Balance at September 30, 2022 *	¥	(216,759	)	¥	196,901	¥	281		¥	(8,390	)	¥	239,035	¥	19,847	¥	230,915

As of March 31, 2022, the amount of

mpact of changes in policy liability discount rate contained a loss of ¥(24,641) million (net of tax of ¥4,296 million ) of cumulative effect of changes in the discount rates between contract inception date and the transition date of April 1, 2021 of LDTI and an income of ¥62,176 million (net of tax of ¥(23,125) million ) of changes after the transition date. For further information about

mpact of changes in policy liability discount rate, see Note 18. “Long-Duration Insurance Contracts Relating to Life Insurance Operations”.

*2	As of September 30, 2022, there were no net unrealized gains (losses) on investment in securities related to available-for-sale debt securities with allowance for credit losses.


	Six months ended September 30, 2023
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Impact of changes in policy liability discount rate		Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments		Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at March 31, 2023 *1	¥	(183,034	)	¥	164,516	¥	275		¥	(3,617	)	¥	155,912	¥	22,083			¥156,135

Net unrealized gains (losses) on investment in securities, net of tax of ¥35,524 million		(96,984	)															(96,984	)
Reclassification adjustment included in net income, net of tax of ¥1,211 million		(3,428	)															(3,428	)
Impact of changes in policy liability discount rate, net of tax of ¥(38,745) million					110,576													110,576
Debt valuation adjustments, net of tax of ¥43 million							(114	)										(114	)
Reclassification adjustment included in net income, net of tax of ¥3 million							(9	)										(9	)
Defined benefit pension plans, net of tax of ¥(19) million										51								51
Reclassification adjustment included in net income, net of tax of ¥52 million										(140	)							(140	)
Foreign currency translation adjustments, net of tax of ¥22,732 million													158,400					158,400
Reclassification adjustment included in net income, net of tax of ¥(2,328) million													5,183					5,183
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(2,072) million															6,623			6,623
Reclassification adjustment included in net income, net of tax of ¥1,289 million															(4,215	)		(4,215	)

Total other comprehensive income (loss)		(100,412	)		110,576		(123	)		(89	)		163,583		2,408			175,943

Transaction with noncontrolling interests		0			0		0			0			11		(176	)		(165	)

Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interests		0			0		0			0			5,191		(140	)		5,051

Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		(1	)		0		0			0			163		0			162

Balance at September 30, 2023 *2	¥	(283,445	)	¥	275,092	¥	152		¥	(3,706)		¥	314,152	¥	24,455			¥326,700

As of March 31, 2023, the amount of

mpact of changes in policy liability discount rate contained a loss of ¥(24,641) million (net of tax of ¥4,296 million ) of cumulative effect of changes in the discount rates between contract inception date and the transition date of April 1, 2021 of LDTI and an income of ¥189,157 million (net of tax of ¥(66,702) million ) of changes after the transition date. For further information about

mpact of changes in policy liability discount rate, see Note 18. “Long-Duration Insurance Contracts Relating to Life Insurance Operations”.

*2	As of September 30, 2023, net unrealized gains (losses) on investment in securities contained ¥(128) million (net of tax of ¥21 million ) of net unrealized gains (losses) on investment in securities related to available-for-sale debt securities with allowance for credit losses.

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the three months ended September 30, 2022 and 2023, are as follows:


	Three months ended September 30, 2022
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Impact of changes in policy liability discount rate		Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments		Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at June 30, 2022 *1	¥	(154,265	)	¥	114,386	¥	205		¥	(8,239	)	¥	169,590	¥	12,986		¥	134,663

Net unrealized gains (losses) on investment in securities, net of tax of ¥23,591 million		(62,396	)															(62,396	)
Reclassification adjustment included in net income, net of tax of ¥10 million		(98	)															(98	)
Impact of changes in policy liability discount rate, net of tax of ¥(31,968) million					82,515													82,515
Debt valuation adjustments, net of tax of ¥(31) million							80											80
Reclassification adjustment included in net income, net of tax of ¥1 million							(4	)										(4	)
Defined benefit pension plans, net of tax of ¥45 million										(105	)							(105	)
Reclassification adjustment included in net income, net of tax of ¥17 million										(46	)							(46	)
Foreign currency translation adjustments, net of tax of ¥3,827 million													70,964					70,964
Reclassification adjustment included in net income, net of tax of ¥(3) million													12					12
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(3,069) million															8,763			8,763
Reclassification adjustment included in net income, net of tax of ¥399 million															(1,163	)		(1,163	)

Total other comprehensive income (loss)		(62,494	)		82,515		76			(151	)		70,976		7,600			98,522

Less: Other Comprehensive Income Attributable to the Noncontrolling Interests		0			0		0			0			1,481		739			2,220

Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0		0			0			50		0			50

Balance at September 30, 2022 *2	¥	(216,759	)	¥	196,901	¥	281		¥	(8,390	)	¥	239,035	¥	19,847		¥	230,915

As of June 30, 2022, the amount of

mpact of changes in policy liability discount rate contained a loss of ¥(24,641) million (net of tax of ¥4,296 million ) of cumulative effect of changes in the discount rates between contract inception date and the transition date of April 1, 2021 of LDTI and an income of ¥139,027 million (net of tax of ¥(52,893) million ) of changes after the transition date. For further information about

mpact of changes in policy liability discount rate, see Note 18. “Long-Duration Insurance Contracts Relating to Life Insurance Operations”.

*2	As of September 30, 2022, there were no net unrealized gains (losses) on investment in securities related to available-for-sale debt securities with allowance for credit losses.


	Three months ended September 30, 2023
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Impact of changes in policy liability discount rate		Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments		Net unrealized gains (losses) on derivative instruments		Accumulated other comprehensive income (loss)
Balance at June 30, 2023	¥	(184,174	)	¥	169,035	¥	231		¥	(3,471	)	¥	251,172	¥	20,124	¥	252,917

Net unrealized gains (losses) on investment in securities, net of tax of ¥36,198 million		(98,165	)														(98,165	)
Reclassification adjustment included in net income, net of tax of ¥353 million		(1,097	)														(1,097	)
Impact of changes in policy liability discount rate, net of tax of ¥(36,613) million					106,057												106,057
Debt valuation adjustments, net of tax of ¥30 million							(75	)									(75	)
Reclassification adjustment included in net income, net of tax of ¥0 million							(4	)									(4	)
Defined benefit pension plans, net of tax of ¥59 million										(171	)						(171	)
Reclassification adjustment included in net income, net of tax of ¥25 million										(65	)						(65	)
Foreign currency translation adjustments, net of tax of ¥39 million													62,008				62,008
Reclassification adjustment included in net income, net of tax of ¥(1,014) million													2,257				2,257
Net unrealized gains (losses) on derivative instruments, net of tax of ¥93 million															3,783		3,783
Reclassification adjustment included in net income, net of tax of ¥(169) million															611		611

Total other comprehensive income (loss)		(99,262	)		106,057		(79	)		(236	)		64,265		4,394		75,139

Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interests		0			0		0			(1	)		1,230		63		1,292

Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		9			0		0			0			55		0		64

Balance at September 30, 2023 *	¥	(283,445	)	¥	275,092	¥	152		¥	(3,706	)	¥	314,152	¥	24,455	¥	326,700

*	As of September 30, 2023, net unrealized gains (losses) on investment in securities contained ¥(128) million (net of tax of ¥21 million ) of net unrealized gains (losses) on investment in securities related to available-for-sale debt securities with allowance for credit losses.

Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (loss)

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the six months ended September 30, 2022 and 2023 are as follows:


	Six months ended September 30, 2022
Details about accumulated other comprehensive income components	Reclassification adjustment included in net income
	Millions of yen			Consolidated statements of income caption
Net unrealized gains (losses) on investment in securities
Sales of debt securities	¥	17		Gains on investment securities and dividends
Sales of debt securities		811		Life insurance premiums and related investment income
Amortization of debt securities		162		Finance revenues
Amortization of debt securities		174		Life insurance premiums and related investment income

		1,164		Total before income tax
		(292	)	Income tax (expense) or benefit

	¥	872		Net of tax

Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	8		Life insurance costs

		8		Total before income tax
		(2	)	Income tax (expense) or benefit

	¥	6		Net of tax

Defined benefit pension plans
Amortization of prior service credit	¥	170		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(45	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(1	)	See Note 16 “Pension Plans”

		124		Total before income tax
		(33	)	Income tax (expense) or benefit

	¥	91		Net of tax

Foreign currency translation adjustments
Foreign exchange contracts	¥	(1,653	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense/Other (income) and expense
Sales or liquidation		1,539		Gains on sales of subsidiaries and affiliates and liquidation losses, net

		(114	)	Total before income tax
		12		Income tax (expense) or benefit

	¥	(102	)	Net of tax

Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(157	)	Interest expense
Foreign exchange contracts		(164	)	Interest expense/Other (income) and expense
Foreign currency swap agreements		(1,564	)	Interest expense/Other (income) and expense

		(1,885	)	Total before income tax
		436		Income tax (expense) or benefit

	¥	(1,449	)	Net of tax


	Six months ended September 30, 2023
Details about accumulated other comprehensive income components	Reclassification adjustment included in net income			Consolidated statements of income caption
	Millions of yen			Consolidated statements of income caption
Net unrealized gains (losses) on investment in securities
Sales of debt securities	¥	131		Gains on investment securities and dividends
Sales of debt securities		2,305		Life insurance premiums and related investment income
Amortization of debt securities		313		Finance revenues
Amortization of debt securities		1,890		Life insurance premiums and related investment income

		4,639		Total before income tax
		(1,211	)	Income tax (expense) or benefit

	¥	3,428		Net of tax

Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	12		Life insurance costs

		12		Total before income tax
		(3	)	Income tax (expense) or benefit

	¥	9		Net of tax

Defined benefit pension plans
Amortization of prior service credit	¥	225		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(32	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(1	)	See Note 16 “Pension Plans”

		192		Total before income tax
		(52	)	Income tax (expense) or benefit

	¥	140		Net of tax

Foreign currency translation adjustments
Foreign exchange contracts	¥	(7,636	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense
Sales or liquidation		125		Gains on sales of subsidiaries and affiliates and liquidation losses, net

		(7,511	)	Total before income tax
		2,328		Income tax (expense) or benefit

	¥	(5,183	)	Net of tax

Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(30	)	Interest expense
Foreign currency swap agreements		5,534		Interest expense/Other (income) and expense

		5,504		Total before income tax
		(1,289	)	Income tax (expense) or benefit

		¥4,215		Net of tax

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the three months ended September 30, 2022 and 2023 are as follows:


	Three months ended September 30, 2022
Details about accumulated other comprehensive income components	Reclassification adjustment included in net income
	Millions of yen			Consolidated statements of income caption
Net unrealized gains (losses) on investment in securities
Sales of debt securities	¥	1		Gains on investment securities and dividends
Sales of debt securities		(143	)	Life insurance premiums and related investment income
Amortization of debt securities		50		Finance revenues
Amortization of debt securities		200		Life insurance premiums and related investment income

		108		Total before income tax
		(10	)	Income tax (expense) or benefit

	¥	98		Net of tax

Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	5		Life insurance costs

		5		Total before income tax
		(1	)	Income tax (expense) or benefit

	¥	4		Net of tax

Defined benefit pension plans
Amortization of prior service credit	¥	86		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(22	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(1	)	See Note 16 “Pension Plans”

		63		Total before income tax
		(17	)	Income tax (expense) or benefit

	¥	46		Net of tax

Foreign currency translation adjustments
Foreign exchange contracts	¥	(1,171	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense
Sales or liquidation		1,156		Gains on sales of subsidiaries and affiliates and liquidation losses, net

		(15	)	Total before income tax
		3		Income tax (expense) or benefit

	¥	(12	)	Net of tax

Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	63		Interest expense
Foreign exchange contracts		(84	)	Interest expense/Other (income) and expense
Foreign currency swap agreements		1,583		Interest expense/Other (income) and expense

		1,562		Total before income tax
		(399	)	Income tax (expense) or benefit

	¥	1,163		Net of tax


	Three months ended September 30, 2023
Details about accumulated other comprehensive income components	Reclassification adjustment included in net income
	Millions of yen			Consolidated statements of income caption
Net unrealized gains (losses) on investment in securities
Sales of debt securities	¥	42		Gains on investment securities and dividends
Sales of debt securities		269		Life insurance premiums and related investment income
Amortization of debt securities		110		Finance revenues
Amortization of debt securities		1,029		Life insurance premiums and related investment income

		1,450		Total before income tax
		(353	)	Income tax (expense) or benefit

	¥	1,097		Net of tax

Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	4		Life insurance costs

		4		Total before income tax
		0		Income tax (expense) or benefit

	¥	4		Net of tax

Defined benefit pension plans
Amortization of prior service credit	¥	111		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(20	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(1	)	See Note 16 “Pension Plans”

		90		Total before income tax
		(25	)	Income tax (expense) or benefit

	¥	65		Net of tax

Foreign currency translation adjustments
Foreign exchange contracts	¥	(3,316	)	Interest expense
Sales or liquidation	¥	45		Gains on sales of subsidiaries and affiliates and liquidation losses, net

		(3,271	)	Total before income tax
		1,014		Income tax (expense) or benefit

	¥	(2,257	)	Net of tax

Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	7		Interest expense
Foreign currency swap agreements		(787	)	Interest expense/Other (income) and expense

		(780	)	Total before income tax
		169		Income tax (expense) or benefit

	¥	(611	)	Net of tax