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Fair Value Measurements (Tables)

12 Months Ended

Mar. 31, 2025

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, 2024 and 2025:

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	)			—				—				—
Net derivative assets			25,490				—				—				—
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	)			—				—				—
Net derivative Liabilities			48,190				—				—				—
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

March 31, 2025

		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		¥	97,694			¥	0			¥	29,900			¥	67,794
Available-for-sale debt securities:			2,607,637				12,243				2,377,740				217,654
Japanese and foreign government bond securities*2			1,092,526				7,510				1,085,016				0
Japanese prefectural and foreign municipal bond securities			406,830				0				395,952				10,878
Corporate debt securities*3			802,545				4,733				793,560				4,252
CMBS and RMBS in the Americas			106,751				0				99,669				7,082
Other asset-backed securities and debt securities			198,985				0				3,543				195,442
Equity securities*4*5			418,690				137,014				119,466				162,210
Derivative assets:			64,170				361				54,992				8,817
Interest rate swap agreements			17,869				0				17,869				0
Options held/written and other			15,767				0				6,950				8,817
Futures, foreign exchange contracts			20,964				361				20,603				0
Foreign currency swap agreements			9,570				0				9,570				0
Netting*6			(20,495	)			—				—				—
Net derivative assets			43,675				—				—				—
Other assets:			2,586				0				0				2,586
Reinsurance recoverables*7			2,586				0				0				2,586
Total		¥	3,190,777			¥	149,618			¥	2,582,098			¥	459,061
Liabilities:
Derivative liabilities:		¥	56,038			¥	129			¥	55,257			¥	652
Interest rate swap agreements			2,774				0				2,774				0
Options held/written and other			13,715				0				13,063				652
Futures, foreign exchange contracts			39,387				129				39,258				0
Foreign currency swap agreements			159				0				159				0
Credit derivatives written			3				0				3				0
Netting*6			(20,495	)			—				—				—
Net derivative Liabilities			35,543				—				—				—
Policy Liabilities and Policy Account Balances:			136,257				0				0				136,257
Variable annuity and variable life insurance contracts*8			136,257				0				0				136,257
Accounts Payable			15,259				0				0				15,259
Contingent Consideration			15,259				0				0				15,259
Total		¥	207,554			¥	129			¥	55,257			¥	152,168

*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 a loss of ¥2,429 million, a gain of ¥428 million and a loss of ¥1,052 million from the change in the fair value of the loans for fiscal 2023, 2024 and 2025, 

respectively. No gains or losses were recognized in earnings during fiscal 2023, 2024 and 2025 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, 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. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of March 31, 2025, were ¥98,135 million and ¥97,694 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥441 million. As of March 31, 2024, there were no loans that are 90 days or more past due or, in non-accrual status. The amounts of aggregate unpaid principal balance and aggregate fair value of loans that are 90 days or more past due or, in non-accrual status as of March 31, 2025, were ¥17,098 million and ¥16,346 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥752 million.

*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 losses of ¥11 million, ¥6 million and ¥59 million from the change in the fair value of those investments for fiscal 2023, 2024 and 2025, respectively. The amount of aggregate fair value elected the fair value option were ¥1,000 million and ¥5,379 million as of March 31, 2024 and 2025, 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 a loss of ¥516 million, gains of ¥399 million and ¥441 million from the change in the fair value of those investments for fiscal 2023, 2024 and 2025, respectively. The amounts of aggregate fair value elected the fair value option were ¥7,751 million and ¥10,679 million as of March 31, 2024 and 2025, 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 ¥1,066 million, ¥3,269 million and ¥1,954 million from the change in the fair value of those investments for fiscal 2023, 2024 and 2025, respectively. The amounts of aggregate fair value elected the fair value option were ¥26,945 million and ¥24,960 million as of March 31, 2024 and 2025, respectively.

*5 The amounts of investment funds measured at net asset value per share which are not included in the above tables were ¥85,280 million and ¥118,666 million as of March 31, 2024 and 2025, 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 ¥2,786 million and ¥2,586 million as of March 31, 2024 and 2025, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings for fiscal 2023, 2024 and 2025, 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 ¥167,207 million and ¥136,257 million as of March 31, 2024 and 2025, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings for fiscal 2023, 2024 and 2025, 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 2023, 2024 and 2025:

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			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			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	)

2025

		Millions of yen
		Balance at April 1, 2024				Gains or losses (realized/unrealized)												Purchases*3				Sales				Settlements*4				Transfers in and/ or out of Level 3 (net)				Balance at March 31, 2025				Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, 2025*1				Change in unrealized gains or losses included in other comprehensive income for assets and liabilities still held at March 31, 2025*2
						Included in earnings *1				Included in other comprehensive income*2				Total
Loans held for sale		¥	96,566			¥	(1,778	)		¥	(543	)		¥	(2,321	)		¥	633			¥	0			¥	(27,084	)		¥	0			¥	67,794			¥	(708	)		¥	(543	)
Available-for-sale debt securities			319,297				1,336				(1,437	)			(101	)			99,785				(56,749	)			(144,578	)			0				217,654				370				(463	)
Japanese prefectural and foreign municipal bond securities			10,922				(107	)			82				(25	)			0				0				(19	)			0				10,878				(107	)			82
Corporate debt securities			5,586				235				(17	)			218				300				(1,712	)			(140	)			0				4,252				(73	)			(17	)
CMBS and RMBS in the Americas			7,165				0				(83	)			(83	)			0				0				0				0				7,082				0				(83	)
Other asset-backed securities and debt securities			295,624				1,208				(1,419	)			(211	)			99,485				(55,037	)			(144,419	)			0				195,442				550				(445	)
Equity securities			162,857				(8,129	)			(2,089	)			(10,218	)			20,113				(656	)			(9,886	)			0				162,210				(8,163	)			(2,099	)
Investment funds and other			162,857				(8,129	)			(2,089	)			(10,218	)			20,113				(656	)			(9,886	)			0				162,210				(8,163	)			(2,099	)
Derivative assets and liabilities (net)			2,284				5,480				401				5,881				0				0				0				0				8,165				5,480				401
Options held/written and other			2,284				5,480				401				5,881				0				0				0				0				8,165				5,480				401
Other asset			2,786				(1,027	)			0				(1,027	)			916				0				(89	)			0				2,586				(1,027	)			0
Reinsurance recoverables*5			2,786				(1,027	)			0				(1,027	)			916				0				(89	)			0				2,586				(1,027	)			0
Policy Liabilities and Policy Account Balances			167,207				7,292				(48	)			7,244				0				0				(23,706	)			0				136,257				7,292				(48	)
Variable annuity and variable life insurance contracts*6			167,207				7,292				(48	)			7,244				0				0				(23,706	)			0				136,257				7,292				(48	)
Accounts Payable:			14,136				(1,235	)			112				(1,123	)			0				0				0				0				15,259				(1,235	)			112
Contingent Consideration			14,136				(1,235	)			112				(1,123	)			0				0				0				0				15,259				(1,235	)			112

*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 loans held for sale, derivative assets and liabilities (net), and accounts payable 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. For the information about policy account balances for variable annuity and variable life insurance contracts and market risk benefits as of and for the fiscal year ended March 31, 2024 and 2025, see Note 24 “Long-Duration Insurance Contracts Relating to Life Insurance Operations.”

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 2024 and 2025. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment:

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

2025

		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:
Real estate collateral-dependent loans (net of allowance for credit losses)		¥	5,881			¥	0			¥	0			¥	5,881
Investment in operating leases, property under facility operations and office facilities			8,105				0				0				8,105
Certain equity securities			15,193				0				15,193				0
Certain equity method investments			20,619				0				0				20,619
		¥	49,798			¥	0			¥	15,193			¥	34,605

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, 2024 and 2025.

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

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)

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

March 31, 2025

Millions of yen

Valuation technique(s)

Significant unobservable inputs

Range (Weighted average)

Fair value

Assets:

Loans held for sale

¥

67,794

Discounted cash flows

Discount rate

7.0% – 12.1%

(9.4%)

Available-for-sale debt securities:

Japanese prefectural and foreign municipal bond securities

6,319

Discounted cash flows

Discount rate

5.8% – 9.8%

(8.0%)

4,559

Appraisals/Broker quotes

—

—

Corporate debt securities

302

Discounted cash flows

Discount rate

1.5%

(1.5%)

3,950

Appraisals/Broker quotes

—

—

CMBS and RMBS in the Americas

7,082

Appraisals/Broker quotes

—

—

Other asset-backed securities and debt securities

34,670

Discounted cash flows

Discount rate

0.4% – 51.2%

(5.5%)

Probability of default

0.2%

(0.2%)

160,772

Appraisals/Broker quotes

—

—

Equity securities:

Investment funds and other

133,585

Discounted cash flows

WACC

13.3% – 23.7%

(16.8%)

EV/Terminal EBITDA multiple

4.2x-12x

(8.8x)

Market multiples

EV/Last twelve months EBITDA multiple

4.3x-9.5x

(7.8x)

EV/Forward EBITDA multiple

4.2x-9x

(7.7x)

EV/Precedent transaction last twelve months EBITDA multiple

4.3x-11.9x

(8.7x)

22,859

Appraisals/Broker quotes

—

—

5,766

Discounted cash flows

Discount rate

11.5% – 12.0%

(11.7%)

Derivative assets:

Options held/written and other

8,297

Discounted cash flows

Discount rate

12.0% – 33.0%

(14.7%)

520

Appraisals/Broker quotes

—

—

Other assets:

Reinsurance recoverables

2,586

Discounted cash flows

Discount rate

0.5% – 2.4%

(1.3%)

Mortality rate

0.0% – 100.0%

(2.9%)

Lapse rate

1.5% – 14.0%

(4.7%)

Annuitization rate (guaranteed minimum annuity benefit)

100.0%

(100.0%)

Total

¥

459,061

Liabilities:

Derivative liabilities:

Options held/written and other

¥

652

Discounted cash flows

Discount rate

12.0% – 33.0%

(14.7%)

Policy liabilities and Policy Account Balances:

Variable annuity and variable life insurance contracts

136,257

Discounted cash flows

Discount rate

0.5% – 2.4%

(1.3%)

Mortality rate

0.0% – 100.0%

(2.3%)

Lapse rate

1.5% – 30.0%

(5.7%)

Annuitization rate (guaranteed minimum annuity benefit)

0.0% – 100.0%

(67.1%)

Accounts Payable:

Contingent Consideration

15,259

Discounted cash flows

EV/Terminal EBITDA multiple

15.0x

(15.0x)

Total

¥

152,168

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 2024 and 2025.

		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/Broker quotes		—		—
Investment in operating leases and property under facility operations			337			Discounted cash flows		Discount rate		0.0% – 13.0%
										(3.6%)
			868			Appraisals/Broker quotes		—		—
Certain equity method investments			461			Market multiples		EV/EBITDA multiple		3x-6x
										(4.5x)
		¥	6,940
		2025
		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)		¥	1,064			Direct capitalization		Capitalization rate		4.4% – 5.2%
										(4.7%)
			4,817			Appraisals/Broker quotes		—		—
Investment in operating leases, property under facility operations and office facilities			3,314			Discounted cash flows		Discount rate		6.1%
										(6.1%)
			4,791			Appraisals/Broker quotes		—		—
Certain equity method investments			20,619			Appraisals/Broker quotes		—		—
		¥	34,605

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+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
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+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-Publisher FASB
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+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
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