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Fair Value Measurements (Tables)

12 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Recorded Amounts of Major Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present recorded amounts of major financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and 2024:

March 31, 2023

		Millions of yen
		Total Carrying Value in Consolidated Balance Sheets				Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1		¥	197,041			¥	0			¥	23,192			¥	173,849
Trading debt securities			2,179				0				2,179				0
Available-for-sale debt securities:			2,234,608				4,334				1,986,672				243,602
Japanese and foreign government bond securities*2			801,295				3,004				798,291				0
Japanese prefectural and foreign municipal bond securities			369,246				0				365,915				3,331
Corporate debt securities*3			784,388				1,330				778,321				4,737
CMBS and RMBS in the Americas			43,173				0				43,173				0
Other asset-backed securities and debt securities			236,506				0				972				235,534
Equity securities*4*5			381,747				105,646				133,027				143,074
Derivative assets:			72,398				203				65,377				6,818
Interest rate swap agreements			22,798				0				22,798				0
Options held/written and other			30,487				0				23,669				6,818
Futures, foreign exchange contracts			17,785				203				17,582				0
Foreign currency swap agreements			1,325				0				1,325				0
Credit derivatives held			3				0				3				0
Netting*6			(22,052	)			0				0				0
Net derivative assets			50,346				0				0				0
Other assets:			4,676				0				0				4,676
Reinsurance recoverables*7			4,676				0				0				4,676
Total		¥	2,892,649			¥	110,183			¥	2,210,447			¥	572,019
Liabilities:
Derivative liabilities:		¥	71,366			¥	1,484			¥	55,240			¥	14,642
Interest rate swap agreements			3,319				0				3,319				0
Options held/written and other			28,423				0				13,781				14,642
Futures, foreign exchange contracts			37,195				1,484				35,711				0
Foreign currency swap agreements			2,426				0				2,426				0
Credit derivatives written			3				0				3				0
Netting*6			(22,052	)			0				0				0
Net derivative Liabilities			49,314				0				0				0
Policy Liabilities and Policy Account Balances:			163,734				0				0				163,734
Variable annuity and variable life insurance contracts*8			163,734				0				0				163,734
Total		¥	235,100			¥	1,484			¥	55,240			¥	178,376

March 31, 2024

		Millions of yen
		Total Carrying Value in Consolidated Balance Sheets				Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1		¥	129,959			¥	0			¥	33,393			¥	96,566
Available-for-sale debt securities:			2,665,478				11,491				2,334,690				319,297
Japanese and foreign government bond securities*2			1,034,914				4,303				1,030,611				0
Japanese prefectural and foreign municipal bond securities			401,465				0				390,543				10,922
Corporate debt securities*3			844,579				7,188				831,805				5,586
CMBS and RMBS in the Americas			87,740				0				80,575				7,165
Other asset-backed securities and debt securities			296,780				0				1,156				295,624
Equity securities*4*5			415,607				108,964				143,786				162,857
Derivative assets:			72,986				52				66,433				6,501
Interest rate swap agreements			18,995				0				18,995				0
Options held/written and other			15,349				0				8,848				6,501
Futures, foreign exchange contracts			38,172				52				38,120				0
Foreign currency swap agreements			470				0				470				0
Netting*6			(47,496	)			0				0				0
Net derivative assets			25,490				0				0				0
Other assets:			2,786				0				0				2,786
Reinsurance recoverables*7			2,786				0				0				2,786
Total		¥	3,286,816			¥	120,507			¥	2,578,302			¥	588,007
Liabilities:
Derivative liabilities:		¥	95,686			¥	607			¥	90,862			¥	4,217
Interest rate swap agreements			3,728				0				3,728				0
Options held/written and other			14,394				0				10,177				4,217
Futures, foreign exchange contracts			70,997				607				70,390				0
Foreign currency swap agreements			6,563				0				6,563				0
Credit derivatives written			4				0				4				0
Netting*6			(47,496	)			0				0				0
Net derivative Liabilities			48,190				0				0				0
Policy Liabilities and Policy Account Balances:			167,207				0				0				167,207
Variable annuity and variable life insurance contracts*8			167,207				0				0				167,207
Accounts Payable			14,136				0				0				14,136
Contingent Consideration			14,136				0				0				14,136
Total		¥	277,029			¥	607			¥	90,862			¥	185,560

*1 A certain subsidiary elected the fair value option on certain loans held for sale. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”) and institutional investors. Included in “Other (income) and expense” in the consolidated statements of income were losses of ¥2,982 million, ¥2,429 million and

a gain of ¥428 million from the change in the fair value of the loans for fiscal 2022, 2023 and 2024, respectively. No gains or losses were recognized in earnings during fiscal 2022, 2023 and 2024 attributable to changes in instrument-specific credit risk. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of March 31, 2023, were ¥199,674 million and ¥197,041 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥2,633 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of March 31, 2024, were ¥130,554 million and ¥129,959 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥595 million. As of March 31, 2023 and 2024, there were no loans that are 90 days or more past due or, in non-accrual status.

*2 A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were a gain of ¥51 million, losses of ¥11 million and ¥6 million from the change in the fair value of those investments for fiscal 2022, 2023 and 2024, respectively. The amount of aggregate fair value elected the fair value option were ¥237 million and ¥1,000 million as of March 31, 2023 and 2024, respectively.

*3 A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥365 million and ¥516 million, a gain of ¥399 million from the change in the fair value of those investments for fiscal 2022, 2023 and 2024, respectively. The amounts of aggregate fair value elected the fair value option were ¥6,605 million and ¥7,751 million as of March 31, 2023 and 2024, respectively.

*4 Certain subsidiaries elected the fair value option for certain investments in investment funds, and others included in equity securities. Included in “Gains on investment securities and dividends” and “Life insurance premiums and related investment income” in the consolidated statements of income were gains of ¥1,199 million, ¥1,066 million and ¥3,269 million from the change in the fair value of those investments for fiscal 2022, 2023 and 2024, respectively. The amounts of aggregate fair value elected the fair value option were ¥18,544 million and ¥26,945 million as of March 31, 2023 and 2024, respectively.

*5 The amounts of investment funds measured at net asset value per share which are not included in the above tables were ¥51,263 million and ¥85,280 million as of March 31, 2023 and 2024, respectively.

*6 It represents the amount offset under counterparty netting of derivative assets and liabilities.

*7 Certain subsidiaries elected the fair value option for certain reinsurance contracts held. The fair value of the reinsurance contracts elected for the fair value option in other assets were ¥4,676 million and ¥2,786 million as of March 31, 2023 and 2024, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings for fiscal 2022, 2023 and 2024, see Note 23 “Income and Expenses Relating to Life Insurance Operations.”

*8 Certain subsidiaries elected the fair value option for the entire variable annuity and variable life insurance contracts held. The fair value of the variable annuity and variable life insurance contracts elected for the fair value option in policy liabilities and policy account balances were ¥163,734 million and ¥167,207 million as of March 31, 2023 and 2024, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings for fiscal 2022, 2023 and 2024, see Note 23 “Income and Expenses Relating to Life Insurance Operations.”

Reconciliation of Financial Assets and Liabilities (Net) Measured at Fair Value on Recurring Basis Using Significant Unobservable Input

The following tables present the reconciliation of financial assets and liabilities (net) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in fiscal 2022, 2023 and 2024:

2022

		Millions of yen
		Balance at April 1, 2021				Gains or losses (realized/unrealized)												Purchases*3				Sales				Settlements*4				Transfers in and/ or out of Level 3 (net)				Balance at March 31, 2022				Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, 2022*1				Change in unrealized gains or losses included in other comprehensive income for assets and liabilities still held at March 31, 2022*2
						Included in earnings*1				Included in other comprehensive income*2				Total
Available-for-sale debt securities		¥	133,457			¥	7,041			¥	6,941			¥	13,982			¥	51,644			¥	(9,465	)		¥	(48,558	)		¥	0			¥	141,060			¥	2,445			¥	7,116
Japanese prefectural and foreign municipal bond securities			2,761				0				292				292				0				0				0				0				3,053				0				291
Corporate debt securities			1,021				0				(1	)			(1	)			0				0				(323	)			0				697				0				(1	)
Other asset-backed securities and debt securities			129,675				7,041				6,650				13,691				51,644				(9,465	)			(48,235	)			0				137,310				2,445				6,826
Equity securities			91,410				16,350				8,779				25,129				24,606				(26,795	)			(768	)			(610	)			112,972				4,555				8,743
Investment funds, and others			91,410				16,350				8,779				25,129				24,606				(26,795	)			(768	)			(610	)			112,972				4,555				8,743
Derivative assets and liabilities (net)			13,790				(18,340	)			778				(17,562	)			0				0				0				0				(3,772	)			(18,340	)			778
Options held/written and other			13,790				(18,340	)			778				(17,562	)			0				0				0				0				(3,772	)			(18,340	)			778
Other asset			6,297				(2,146	)			0				(2,146	)			1,835				0				(772	)			0				5,214				(2,146	)			0
Reinsurance recoverables*5			6,297				(2,146	)			0				(2,146	)			1,835				0				(772	)			0				5,214				(2,146	)			0
Policy Liabilities and Policy Account Balances			266,422				(1,743	)			(467	)			(2,210	)			0				0				(69,727	)			0				198,905				(1,743	)			(467	)
Variable annuity and variable life insurance contracts*6			266,422				(1,743	)			(467	)			(2,210	)			0				0				(69,727	)			0				198,905				(1,743	)			(467	)

2023

		Millions of yen
		Balance at April 1, 2022				Gains or losses (realized/unrealized)												Purchases*3				Sales				Settlements*4				Transfers in and/ or out of Level 3 (net)				Balance at March 31, 2023				Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, 2023*1				Change in unrealized gains or losses included in other comprehensive income for assets and liabilities still held at March 31, 2023*2
						Included in earnings*1				Included in other comprehensive income*2				Total
Loans held for sale		¥	0			¥	18			¥	1,095			¥	1,113			¥	2,457			¥	(5,776	)		¥	0			¥	176,055			¥	173,849			¥	18			¥	1,095
Available-for-sale debt securities			141,060				3,788				1,238				5,026				116,175				(9,100	)			(9,559	)			0				243,602				3,458				1,713
Japanese prefectural and foreign municipal bond securities			3,053				0				278				278				0				0				0				0				3,331				0				278
Corporate debt securities			697				89				(1	)			88				5,922				(1,554	)			(416	)			0				4,737				(16	)			(0	)
Other asset-backed securities and debt securities			137,310				3,699				961				4,660				110,253				(7,546	)			(9,143	)			0				235,534				3,474				1,435
Equity securities			112,972				22,823				9,647				32,470				7,191				(7,223	)			(2,336	)			0				143,074				22,113				9,514
Investment funds, and others			112,972				22,823				9,647				32,470				7,191				(7,223	)			(2,336	)			0				143,074				22,113				9,514
Derivative assets and liabilities (net)			(3,772	)			(2,845	)			(1,207	)			(4,052	)			0				0				0				0				(7,824	)			(2,845	)			(1,207	)
Options held/written and other			(3,772	)			(2,845	)			(1,207	)			(4,052	)			0				0				0				0				(7,824	)			(2,845	)			(1,207	)
Other asset			5,214				(1,286	)			0				(1,286	)			1,153				0				(405	)			0				4,676				(1,286	)			0
Reinsurance recoverables*5			5,214				(1,286	)			0				(1,286	)			1,153				0				(405	)			0				4,676				(1,286	)			0
Policy Liabilities and Policy Account Balances			198,905				6,343				74				6,417				0				0				(28,754	)			0				163,734				6,343				74
Variable annuity and variable life insurance contracts*6			198,905				6,343				74				6,417				0				0				(28,754	)			0				163,734				6,343				74

2024

		Millions of yen
		Balance at April 1, 2023				Gains or losses (realized/unrealized)												Purchases*3				Sales				Settlements*4				Transfers in and/ or out of Level 3 (net)				Balance at March 31, 2024				Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, 2024*1				Change in unrealized gains or losses included in other comprehensive income for assets and liabilities still held at March 31, 2024*2
						Included in earnings*1				Included in other comprehensive income*2				Total
Loans held for sale		¥	173,849			¥	566			¥	18,937			¥	19,503			¥	4,467			¥	(66,078	)		¥	(35,175	)		¥	0			¥	96,566			¥	0			¥	18,937
Available-for-sale debt securities			243,602				13,906				17,117				31,023				68,295				(15,041	)			(15,400	)			6,818				319,297				12,918				18,018
Japanese prefectural and foreign municipal bond securities			3,331				(75	)			866				791				0				0				(18	)			6,818				10,922				(75	)			809
Corporate debt securities			4,737				974				1				975				14				0				(140	)			0				5,586				608				1
CMBS and RMBS in the Americas			0				0				286				286				6,879				0				0				0				7,165				0				282
Other asset-backed securities and debt securities			235,534				13,007				15,964				28,971				61,402				(15,041	)			(15,242	)			0				295,624				12,385				16,926
Equity securities			143,074				(841	)			18,617				17,776				4,675				(495	)			(2,173	)			0				162,857				(1,097	)			18,617
Investment funds, and others			143,074				(841	)			18,617				17,776				4,675				(495	)			(2,173	)			0				162,857				(1,097	)			18,617
Derivative assets and liabilities (net)			(7,824	)			10,595				(487	)			10,108				0				0				0				0				2,284				10,595				(487	)
Options held/written and other			(7,824	)			10,595				(487	)			10,108				0				0				0				0				2,284				10,595				(487	)
Other asset			4,676				(2,711	)			0				(2,711	)			971				0				(150	)			0				2,786				(2,711	)			0
Reinsurance recoverables*5			4,676				(2,711	)			0				(2,711	)			971				0				(150	)			0				2,786				(2,711	)			0
Policy Liabilities and Policy Account Balances			163,734				(30,205	)			(265	)			(30,470	)			0				0				(26,997	)			0				167,207				(30,205	)			(265	)
Variable annuity and variable life insurance contracts*6			163,734				(30,205	)			(265	)			(30,470	)			0				0				(26,997	)			0				167,207				(30,205	)			(265	)
Accounts Payable:			12,576				(47	)			(1,513	)			(1,560	)			0				0				0				0				14,136				(47	)			(1,513	)
Contingent Consideration			12,576				(47	)			(1,513	)			(1,560	)			0				0				0				0				14,136				(47	)			(1,513	)

*1 Principally, gains and losses from available-for-sale debt securities are included in “Gains on investment securities and dividends”, “Write-downs of securities” or “Life insurance premiums and related investment income”; equity securities are included in “Gains on investment securities and dividends” and “Life insurance premiums and related investment income” and derivative assets and liabilities (net) are included in “Other (income) and expense” respectively. Additionally, for available-for-sale debt securities, amortization of interest recognized in finance revenues is included in these columns.

*2 Unrealized gains and losses from loans held for sale are included in “Net change of foreign currency translation adjustments”, unrealized gains and losses from available-for-sale debt securities are included in “Net change of unrealized gains (losses) on investment in securities” and “Net change of foreign currency translation adjustments”, unrealized gains and losses from equity securities and derivative assets and liabilities (net) are included mainly in “Net change of foreign currency translation adjustments”, unrealized gains and losses from policy liabilities and policy account balances are included in “Net change of debt valuation adjustments.”, unrealized gains and losses from accounts payable are included in “Net change of foreign currency translation adjustments”. 

*3 Increases resulting from an acquisition of a subsidiary and insurance contracts ceded to reinsurance companies are included.

*4 Decreases resulting from the receipts of reimbursements for benefits, and decreases resulting from insurance payouts to variable annuity and variable life policyholders due to death, surrender and maturity of the investment period are included.

*5 “Included in earnings” in the above table includes changes in the fair value of reinsurance contracts recorded in “Life insurance costs” and reinsurance premiums, net of reinsurance benefits received, recorded in “Life insurance premiums and related investment income.”

*6 “Included in earnings” in the above table is recorded in “Life insurance costs” and includes changes in the fair value of policy liabilities and policy account balances resulting from gains or losses on the underlying investment assets managed on behalf of variable annuity and variable life policyholders, and the changes in the minimum guarantee risks relating to variable annuity and variable life insurance contracts as well as insurance costs recognized for insurance and annuity payouts as a result of insured events.

Recorded Amounts of Major Assets Measured at Fair Value on Nonrecurring Basis

The following tables present recorded amounts of assets measured at fair value on a nonrecurring basis during fiscal 2023 and 2024. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment:

2023

		Millions of yen
		Total Carrying Value in Consolidated Balance Sheets				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale		¥	1,139			¥	0			¥	1,139			¥	0
Real estate collateral-dependent loans (net of allowance for credit losses)			5,970				0				0				5,970
Investment in operating leases, property under facility operations, office facilities and other assets			4,568				0				31				4,537
Certain equity securities			11,794				0				11,794				0
Certain equity method investments			4,013				3,587				0				426
		¥	27,484			¥	3,587			¥	12,964			¥	10,933

2024

		Millions of yen
		Total Carrying Value in Consolidated Balance Sheets				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale		¥	1,706			¥	0			¥	1,706			¥	0
Real estate collateral-dependent loans (net of allowance for credit losses)			5,535				0				261				5,274
Investment in operating leases and property under facility operations			1,205				0				0				1,205
Certain equity securities			18,484				0				18,484				0
Certain equity method investments			461				0				0				461
		¥	27,391			¥	0			¥	20,451			¥	6,940

Information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets and liabilities measured at fair value on a recurring basis

The following tables provide information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and 2024.

March 31, 2023

Millions of yen

Valuation technique(s)

Significant unobservable inputs

Range (Weighted average)

Fair value

Assets:

Loans held for sale

¥

173,849

Discounted cash flows

Discount rate

8.0% – 10.0%

(9.0%)

Available-for-sale debt securities:

Japanese prefectural and foreign municipal bond securities

3,331

Appraisals/Broker quotes

—

—

Corporate debt securities

280

Discounted cash flows

Discount rate

0.4%

(0.4%)

4,457

Appraisals/Broker quotes

—

—

Other asset-backed securities and debt securities

29,165

Discounted cash flows

Discount rate

0.2% – 51.2%

(8.9%)

Probability of default

1.9%

(1.9%)

206,369

Appraisals/Broker quotes

—

—

Equity securities:

Investment funds, and others

120,744

Discounted cash flows

WACC

11.9% – 26.4%

(17.2%)

EV/Terminal EBITDA multiple

7.5x-12.0x

(9.5x)

Market multiples

EV/Last twelve months EBITDA multiple

5.5x – 8.7x

(7.9x)

EV/Forward EBITDA multiple

4.9x – 8.9x

(7.6x)

EV/Precedent transaction last twelve months EBITDA multiple

7.5x-14.5x

(10.0x)

19,819

Appraisals/Broker quotes

—

—

2,511

Discounted cash flows

Discount rate

8.0% – 12.0%

(10.0%)

Derivative assets:

Options held/written and other

6,818

Discounted cash flows

Discount rate

12.0% – 32.0%

(14.4%)

Other assets:

Reinsurance recoverables

4,676

Discounted cash flows

Discount rate

(0.4)% – 1.5%

(0.4%)

Mortality rate

0.0% – 100.0%

(2.6%)

Lapse rate

1.5% – 14.0%

(5.0%)

Annuitization rate (guaranteed minimum annuity benefit)

0.0% – 100.0%

(100.0%)

Total

¥

572,019

Liabilities:

Derivative liabilities:

Options held/written and other

¥

14,603

Discounted cash flows

Discount rate

12.0% – 32.0%

(14.4%)

39

Appraisals/Broker quotes

—

—

Policy liabilities and Policy Account Balances:

Variable annuity and variable life insurance contracts

163,734

Discounted cash flows

Discount rate

(0.4)% – 1.5%

(0.4%)

Mortality rate

0.0% – 100.0%

(2.1%)

Lapse rate

1.5% – 30.0%

(5.9%)

Annuitization rate (guaranteed minimum annuity benefit)

0.0% – 100.0%

(68.8%)

Total

¥

178,376

March 31, 2024

Millions of yen

Valuation technique(s)

Significant unobservable inputs

Range (Weighted average)

Fair value

Assets:

Loans held for sale

¥

96,566

Discounted cash flows

Discount rate

7.7% – 13.0%

(10.0%)

Available-for-sale debt securities:

Japanese prefectural and foreign municipal bond securities

7,145

Discounted cash flows

Discount rate

4.9% – 10.5%

(5.8%)

3,777

Appraisals/Broker quotes

—

—

Corporate debt securities

140

Discounted cash flows

Discount rate

0.4%

(0.4%)

5,446

Appraisals/Broker quotes

—

—

CMBS and RMBS in the Americas

7,165

Appraisals/Broker quotes

—

—

Other asset-backed securities and debt securities

28,391

Discounted cash flows

Discount rate

0.3% – 51.2%

(6.7%)

Probability of default

1.9%

(1.9%)

267,233

Appraisals/Broker quotes

—

—

Equity securities:

Investment funds, and others

131,907

Discounted cash flows

WACC

12.8% – 26.4%

(17.2%)

EV/Terminal EBITDA multiple

7.5x-12.0x

(9.5x)

Market multiples

EV/Last twelve months EBITDA multiple

8.1x-9.5x

(8.8x)

EV/Forward EBITDA multiple

6.8x-9.6x

(8.2x)

EV/Precedent transaction last twelve months EBITDA multiple

8.0x-13.0x

(9.9x)

24,668

Appraisals/Broker quotes

—

—

6,282

Discounted cash flows

Discount rate

8.0% – 12.0%

(10.3%)

Derivative assets:

Options held/written and other

6,501

Discounted cash flows

Discount rate

12.0% – 33.0%

(14.6%)

Other assets:

Reinsurance recoverables

2,786

Discounted cash flows

Discount rate

(0.1)% – 1.6%

(0.5%)

Mortality rate

0.0% – 100.0%

(2.9%)

Lapse rate

1.5% – 14.0%

(4.8%)

Annuitization rate (guaranteed minimum annuity benefit)

0.0% – 100.0%

(100.0%)

Total

¥

588,007

Liabilities:

Derivative liabilities:

Options held/written and other

¥

4,198

Discounted cash flows

Discount rate

12.0% – 33.0%

(14.6%)

19

Appraisals/Broker quotes

—

—

Policy liabilities and Policy Account Balances:

Variable annuity and variable life insurance contracts

167,207

Discounted cash flows

Discount rate

(0.1)% – 1.6%

(0.5%)

Mortality rate

0.0% – 100.0%

(2.1%)

Lapse rate

1.5%  – 30.0%

(5.9%)

Annuitization rate (guaranteed minimum annuity benefit)

0.0% – 100.0%

(66.7%)

Accounts Payable:

Contingent Consideration

14,136

Discounted cash flows

EV/Terminal EBITDA multiple

15.0x

(15.0x)

Total

¥

185,560

Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets Measured at Fair Value on Nonrecurring Basis

The following tables provide information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets measured at fair value on a nonrecurring basis during fiscal 2023 and 2024.

		2023
		Millions of yen				Valuation technique(s)		Significant unobservable inputs		Range (Weighted average)
		Fair value
Assets:
Real estate collateral-dependent loans (net of allowance for credit losses)		¥	1,351			Direct capitalization		Capitalization rate		4.7% – 6.6%
										(5.5%)
			4,619			Appraisals		—		—
Investment in operating leases, property under facility operations, office facilities and other assets			3,257			Discounted cash flows		Discount rate		0.5% – 5.8%
										(4.9%)
			1,280			Appraisals		—		—
Certain equity method investments			23			Discounted cash flows		Discount rate		3.7%
										(3.7%)
			403			Appraisals		—		—
		¥	10,933
		2024
		Millions of yen				Valuation technique(s)		Significant unobservable inputs		Range (Weighted average)
		Fair value
Assets:
Real estate collateral-dependent loans (net of allowance for credit losses)		¥	892			Direct capitalization		Capitalization rate		4.6% – 6.3%
										(5.3%)
			4,382			Appraisals		—		—
Investment in operating leases and property under facility operations			337			Discounted cash flows		Discount rate		0.0% –  13.0%
										(3.6%)
			868			Appraisals		—		—
Certain equity method investments			461			Market multiples		EV/EBITDA multiple		3x-6x
										(4.5x)
			¥6,940

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