Document and Entity Information
Document and Entity Information | 6 Months Ended |
Sep. 30, 2017 | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | IX |
Entity Registrant Name | ORIX CORP |
Entity Central Index Key | 1,070,304 |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Assets | ||
Cash and Cash Equivalents | ¥ 1,185,961 | ¥ 1,039,870 |
Restricted Cash | 88,242 | 93,342 |
Investment in Direct Financing Leases | 1,214,698 | 1,204,024 |
Installment Loans The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2017 ¥19,232 million September 30, 2017 ¥14,735 million | 2,825,895 | 2,815,706 |
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | (57,976) | (59,227) |
Investment in Operating Leases | 1,334,675 | 1,313,164 |
Investment in Securities The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2017 ¥24,894 million September 30, 2017 ¥34,031 million | 1,849,333 | 2,026,512 |
Property under Facility Operations | 404,967 | 398,936 |
Investment in Affiliates | 594,430 | 524,234 |
Trade Notes, Accounts and Other Receivable | 276,278 | 283,427 |
Inventories | 129,882 | 117,863 |
Office Facilities | 109,975 | 110,781 |
Other Assets | 1,469,676 | 1,363,263 |
Total Assets | 11,426,036 | 11,231,895 |
Liabilities: | ||
Short-Term Debt | 335,665 | 283,467 |
Deposits | 1,698,428 | 1,614,608 |
Trade Notes, Accounts and Other Payable | 211,910 | 251,800 |
Policy Liabilities and Policy Account Balances The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2017 ¥605,520 million September 30, 2017 ¥517,019 million | 1,542,450 | 1,564,758 |
Current and Deferred Income Taxes | 408,298 | 445,712 |
Long-Term Debt | 3,867,551 | 3,854,984 |
Other Liabilities | 607,162 | 562,393 |
Total Liabilities | 8,671,464 | 8,577,722 |
Redeemable Noncontrolling Interests | 6,730 | 6,548 |
Commitments and Contingent Liabilities | ||
Equity: | ||
Common Stock | 220,563 | 220,524 |
Additional Paid-in Capital | 267,634 | 268,138 |
Retained Earnings | 2,205,281 | 2,077,474 |
Accumulated Other Comprehensive Income (Loss) | (6,714) | (21,270) |
Treasury Stock, at Cost | (76,024) | (37,168) |
ORIX Corporation Shareholders' Equity | 2,610,740 | 2,507,698 |
Noncontrolling Interests | 137,102 | 139,927 |
Total Equity | 2,747,842 | 2,647,625 |
Total Liabilities and Equity | 11,426,036 | 11,231,895 |
Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Cash and Cash Equivalents | 4,511 | 5,674 |
Investment in Direct Financing Leases | 65,358 | 90,822 |
Installment Loans (Net of Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses) | 44,049 | 186,818 |
Investment in Operating Leases | 131,578 | 151,686 |
Property under Facility Operations | 110,234 | 109,656 |
Investment in Affiliates | 52,887 | 53,046 |
Other Assets | 70,191 | 105,591 |
Total Assets | 478,808 | 703,293 |
Liabilities: | ||
Trade Notes, Accounts and Other Payable | 1,117 | 2,998 |
Long-Term Debt | 298,357 | 438,473 |
Other Liabilities | 6,599 | 10,391 |
Total Liabilities | ¥ 306,073 | ¥ 451,862 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Installment Loans, fair value | ¥ 14,735 | ¥ 19,232 |
Investment in securities, measured at fair value | 34,031 | 24,894 |
Other assets, measured at fair value | 15,242 | 22,116 |
Policy Liabilities and Policy Account Balances | ¥ 517,019 | ¥ 605,520 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Revenues: | ||||||
Finance revenues | ¥ 52,487 | ¥ 48,526 | ¥ 106,477 | ¥ 96,582 | ||
Gains on investment securities and dividends | 10,196 | 11,201 | 20,477 | 15,207 | ||
Operating leases | 101,279 | 91,182 | 197,958 | 196,072 | ||
Life insurance premiums and related investment income | 87,556 | 78,964 | 181,210 | 115,736 | ||
Sales of goods and real estate | 269,453 | 217,640 | 616,568 | 433,526 | ||
Services income | 204,528 | 185,667 | 395,106 | 364,002 | ||
Total revenues | 725,499 | 633,180 | 1,517,796 | 1,221,125 | ||
Expenses: | ||||||
Interest expense | 18,822 | 17,286 | 37,921 | 35,348 | ||
Costs of operating leases | 63,487 | 61,194 | 125,225 | 121,266 | ||
Life insurance costs | 63,942 | 51,185 | 131,715 | 71,423 | ||
Costs of goods and real estate sold | 252,520 | 197,998 | 579,565 | 390,364 | ||
Services expense | 124,146 | 113,675 | 236,615 | 218,993 | ||
Other (income) and expense, net | (1,791) | 718 | (1,464) | (681) | ||
Selling, general and administrative expenses | 103,337 | 101,097 | 209,299 | 203,699 | ||
Provision for doubtful receivables and probable loan losses | 3,359 | 4,049 | 7,998 | 6,743 | ||
Write-downs of long-lived assets | 387 | 845 | 1,472 | 1,409 | ||
Write-downs of securities | 243 | 6,207 | 423 | 6,212 | ||
Total expenses | 628,452 | 554,254 | 1,328,769 | 1,054,776 | ||
Operating Income | 97,047 | 78,926 | 189,027 | 166,349 | ||
Equity in Net Income of Affiliates | 9,480 | 9,529 | 38,613 | 15,765 | ||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 10,474 | 12,346 | 24,972 | 32,834 | ||
Bargain Purchase Gain | 0 | 4,287 | ||||
Income before Income Taxes | 117,001 | [1] | 100,801 | [1] | 252,612 | 219,235 |
Provision for Income Taxes | 38,541 | 33,274 | 83,211 | 72,296 | ||
Net Income | 78,460 | 67,527 | 169,401 | 146,939 | ||
Net Income Attributable to the Noncontrolling Interests | 2,104 | 2,063 | 3,283 | 4,641 | ||
Net Income Attributable to the Redeemable Noncontrolling Interests | 98 | 83 | 148 | 148 | ||
Net Income Attributable to ORIX Corporation Shareholders | ¥ 76,258 | ¥ 65,381 | ¥ 165,970 | ¥ 142,150 | ||
Amounts per Share of Common Stock for Net Income attributable to ORIX Corporation shareholders: | ||||||
Basic: | ¥ 59.61 | ¥ 49.94 | ¥ 129.40 | ¥ 108.57 | ||
Diluted: | ¥ 59.55 | ¥ 49.89 | ¥ 129.29 | ¥ 108.47 | ||
[1] | Mainly the United States |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | ¥ 78,460 | ¥ 67,527 | ¥ 169,401 | ¥ 146,939 |
Other comprehensive income (loss), net of tax: | ||||
Net change of unrealized gains (losses) on investment in securities | (1,071) | (9,625) | (3,027) | (2,853) |
Net change of defined benefit pension plans | (190) | 202 | (447) | 1,499 |
Net change of foreign currency translation adjustments | 13,041 | (18,308) | 18,655 | (59,512) |
Net change of unrealized gains (losses) on derivative instruments | (69) | 132 | 76 | (1,800) |
Total other comprehensive income (loss) | 11,711 | (27,599) | 15,257 | (62,666) |
Comprehensive Income | 90,171 | 39,928 | 184,658 | 84,273 |
Comprehensive Income (Loss) Attributable to the Noncontrolling Interests | 3,800 | 837 | 3,950 | (1,789) |
Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests | 143 | (38) | 182 | (624) |
Comprehensive Income Attributable to ORIX Corporation Shareholders | ¥ 86,228 | ¥ 39,129 | ¥ 180,526 | ¥ 86,686 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Equity (Unaudited) - JPY (¥) ¥ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total ORIX Corporation Shareholders' Equity | Noncontrolling Interests |
Beginning Balance at Mar. 31, 2016 | ¥ 2,472,819 | ¥ 220,469 | ¥ 257,629 | ¥ 1,864,241 | ¥ (6,222) | ¥ (25,686) | ¥ 2,310,431 | ¥ 162,388 |
Contribution to subsidiaries | 1,447 | 0 | 1,447 | |||||
Transaction with noncontrolling interests | (58) | (5) | (5) | (53) | ||||
Comprehensive income, net of tax: | ||||||||
Net income | 146,791 | 142,150 | 142,150 | 4,641 | ||||
Other comprehensive income (loss) | ||||||||
Net change of unrealized gains (losses) on investment in securities | (2,853) | (2,798) | (2,798) | (55) | ||||
Net change of defined benefit pension plans | 1,499 | 1,361 | 1,361 | 138 | ||||
Net change of foreign currency translation adjustments | (58,740) | (52,314) | (52,314) | (6,426) | ||||
Net change of unrealized gains (losses) on derivative instruments | (1,800) | (1,713) | (1,713) | (87) | ||||
Total other comprehensive income (loss) | (61,894) | (55,464) | (6,430) | |||||
Total comprehensive income | 84,897 | 86,686 | (1,789) | |||||
Cash dividends | (33,698) | (31,141) | (31,141) | (2,557) | ||||
Acquisition of treasury stock | (1,235) | (1,235) | (1,235) | 0 | ||||
Disposal of treasury stock | 28 | (56) | 84 | 28 | 0 | |||
Other, net | 196 | 197 | (1) | 196 | 0 | |||
Ending Balance at Sep. 30, 2016 | 2,524,396 | 220,469 | 257,765 | 1,975,249 | (61,686) | (26,837) | 2,364,960 | 159,436 |
Beginning Balance at Jun. 30, 2016 | (35,434) | |||||||
Other comprehensive income (loss) | ||||||||
Net change of unrealized gains (losses) on investment in securities | (9,625) | |||||||
Net change of defined benefit pension plans | 202 | |||||||
Net change of unrealized gains (losses) on derivative instruments | 132 | |||||||
Ending Balance at Sep. 30, 2016 | 2,524,396 | 220,469 | 257,765 | 1,975,249 | (61,686) | (26,837) | 2,364,960 | 159,436 |
Beginning Balance at Mar. 31, 2017 | 2,647,625 | 220,524 | 268,138 | 2,077,474 | (21,270) | (37,168) | 2,507,698 | 139,927 |
Contribution to subsidiaries | 8,078 | 0 | 8,078 | |||||
Transaction with noncontrolling interests | (8,186) | (560) | (560) | (7,626) | ||||
Comprehensive income, net of tax: | ||||||||
Net income | 169,253 | 165,970 | 165,970 | 3,283 | ||||
Other comprehensive income (loss) | ||||||||
Net change of unrealized gains (losses) on investment in securities | (3,027) | (2,962) | (2,962) | (65) | ||||
Net change of defined benefit pension plans | (447) | (447) | (447) | 0 | ||||
Net change of foreign currency translation adjustments | 18,621 | 17,893 | 17,893 | 728 | ||||
Net change of unrealized gains (losses) on derivative instruments | 76 | 72 | 72 | 4 | ||||
Total other comprehensive income (loss) | 15,223 | 14,556 | 667 | |||||
Total comprehensive income | 184,476 | 180,526 | 3,950 | |||||
Cash dividends | (45,389) | (38,162) | (38,162) | (7,227) | ||||
Exercise of stock options | 59 | 39 | 20 | 59 | 0 | |||
Acquisition of treasury stock | (39,109) | (39,109) | (39,109) | 0 | ||||
Disposal of treasury stock | 73 | (180) | 253 | 73 | 0 | |||
Other, net | 215 | 216 | (1) | 215 | 0 | |||
Ending Balance at Sep. 30, 2017 | 2,747,842 | 220,563 | 267,634 | 2,205,281 | (6,714) | (76,024) | 2,610,740 | 137,102 |
Beginning Balance at Jun. 30, 2017 | (16,684) | |||||||
Other comprehensive income (loss) | ||||||||
Net change of unrealized gains (losses) on investment in securities | (1,071) | |||||||
Net change of defined benefit pension plans | (190) | |||||||
Net change of unrealized gains (losses) on derivative instruments | (69) | |||||||
Ending Balance at Sep. 30, 2017 | ¥ 2,747,842 | ¥ 220,563 | ¥ 267,634 | ¥ 2,205,281 | ¥ (6,714) | ¥ (76,024) | ¥ 2,610,740 | ¥ 137,102 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - JPY (¥) ¥ in Millions | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | ¥ 169,401 | ¥ 146,939 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 133,555 | 124,542 |
Provision for doubtful receivables and probable loan losses | 7,998 | 6,743 |
Equity in net income of affiliates (excluding interest on loans) | (36,829) | (14,747) |
Gains on sales of subsidiaries and affiliates and liquidation losses, net | (24,972) | (32,834) |
Bargain purchase gain | 0 | (4,287) |
Gains on sales of available-for-sale securities | (14,646) | (20,924) |
Gains on sales of operating lease assets | (27,793) | (32,707) |
Write-downs of long-lived assets | 1,472 | 1,409 |
Write-downs of securities | 423 | 6,212 |
Decrease (Increase) in restricted cash | 1,293 | (438) |
Decrease in trading securities | 80,972 | 80,346 |
Increase in inventories | (9,321) | (11,298) |
Decrease (Increase) in trade notes, accounts and other receivable | (4,444) | 2,024 |
Decrease in trade notes, accounts and other payable | (23,984) | (26,689) |
Decrease in policy liabilities and policy account balances | (22,308) | (49,785) |
Other, net | (33,187) | 156,463 |
Net cash provided by operating activities | 197,630 | 330,969 |
Cash Flows from Investing Activities: | ||
Purchases of lease equipment | (518,695) | (406,310) |
Principal payments received under direct financing leases | 239,842 | 231,169 |
Installment loans made to customers | (705,027) | (607,396) |
Principal collected on installment loans | 570,867 | 489,402 |
Proceeds from sales of operating lease assets | 191,643 | 150,938 |
Investment in affiliates, net | (91,715) | 1,746 |
Proceeds from sales of investment in affiliates | 54,455 | 64,031 |
Purchases of available-for-sale securities | (191,021) | (241,535) |
Proceeds from sales of available-for-sale securities | 270,199 | 341,160 |
Proceeds from redemption of available-for-sale securities | 61,107 | 73,199 |
Purchases of held-to-maturity securities | 0 | (306) |
Purchases of other securities | (14,182) | (3,328) |
Proceeds from sales of other securities | 17,390 | 15,955 |
Purchases of property under facility operations | (41,001) | (43,331) |
Acquisitions of subsidiaries, net of cash acquired | (55,058) | (38,809) |
Sales of subsidiaries, net of cash disposed | 29,433 | 11,796 |
Other, net | 4,760 | (18,213) |
Net cash provided by (used in) investing activities | (177,003) | 20,168 |
Cash Flows from Financing Activities: | ||
Net increase (decrease) in debt with maturities of three months or less | 46,200 | (73,944) |
Proceeds from debt with maturities longer than three months | 781,685 | 602,130 |
Repayment of debt with maturities longer than three months | (690,949) | (676,080) |
Net increase in deposits due to customers | 83,772 | 91,991 |
Cash dividends paid to ORIX Corporation shareholders | (38,162) | (31,141) |
Acquisition of treasury stock | (39,109) | (1,235) |
Contribution from noncontrolling interests | 3,225 | 1,616 |
Purchases of shares of subsidiaries from noncontrolling interests | (4,466) | 0 |
Net decrease in call money | (18,000) | (10,500) |
Other, net | (7,832) | (4,566) |
Net cash provided by (used in) financing activities | 116,364 | (101,729) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 9,100 | (17,998) |
Net increase in Cash and Cash Equivalents | 146,091 | 231,410 |
Cash and Cash Equivalents at Beginning of Period | 1,039,870 | 730,420 |
Cash and Cash Equivalents at End of Period | ¥ 1,185,961 | ¥ 961,830 |
Overview of Accounting Principl
Overview of Accounting Principles Utilized | 6 Months Ended |
Sep. 30, 2017 | |
Overview of Accounting Principles Utilized | 1. Overview of Accounting Principles Utilized In preparing the accompanying consolidated financial statements, ORIX Corporation (the “Company”) and its subsidiaries have complied with accounting principles generally accepted in the United States of America (“U.S. GAAP”), except for the accounting for stock splits (see Note 2 (n)). These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our March 31, 2017 consolidated financial statements on Form 20-F. Since the Company listed on the New York Stock Exchange in September 1998, the Company has filed the annual report (Form 20-F) Significant differences between U.S. GAAP and generally accepted accounting principles in Japan (“Japanese GAAP”) are as follows: (a) Initial direct costs Under U.S. GAAP, certain initial direct costs to originate leases or loans are being deferred and amortized as yield adjustments over the life of related direct financing leases or loans by using interest method. Under Japanese GAAP, those initial direct costs are recognized as expenses when they are incurred. (b) Operating leases Under U.S. GAAP, revenues from operating leases are recognized on a straight-line basis over the contract terms. Operating lease assets are depreciated over their estimated useful lives mainly on a straight-line basis. Japanese GAAP allows for operating lease assets to be depreciated using mainly either a declining-balance basis or a straight-line basis. (c) Accounting for life insurance operations Under U.S. GAAP, certain costs related directly to the successful acquisition of new (or renewal of) insurance contracts are deferred and amortized over the respective policy periods in proportion to anticipated premium revenue. Under Japanese GAAP, such costs are recorded as expenses currently in earnings in each accounting period. In addition, under U.S. GAAP, although policy liabilities for future policy benefits are established using the net level premium method based on actuarial estimates of the amount of future policyholder benefits, under Japanese GAAP, these are calculated by the methodology which relevant authorities accept. (d) Accounting for goodwill and other intangible assets in business combination Under U.S. GAAP, goodwill and intangible assets that have indefinite useful lives are not amortized, but assessed for impairment at least annually. Additionally, if events or changes in circumstances indicate that the asset might be impaired, the Company and its subsidiaries test for impairment when such events or changes occur. Under Japanese GAAP, goodwill is amortized over an appropriate period up to 20 years. (e) Accounting for pension plans Under U.S. GAAP, the net actuarial gain (loss) is amortized using a corridor test. Under Japanese GAAP, the net actuarial gain (loss) is fully amortized over a certain term within the average remaining service period of employees. (f) Sale of the parent’s ownership interest in subsidiaries Under U.S. GAAP, in a transaction that results in the loss of control, the gain or loss recognized in income includes the realized gain or loss related to the portion of ownership interest sold and the gain or loss on the remeasurement to fair value of the interest retained. Under Japanese GAAP, in a transaction that results in the loss of control, only the realized gain or loss related to the portion of ownership interest sold is recognized in income and the gain or loss on the remeasurement to fair value of the interest retained is not recognized. (g) Classification in consolidated statements of cash flows Classification in the statements of cash flows under U.S. GAAP differs from Japanese GAAP. As significant differences, purchase of lease equipment and principal payments received under direct financing leases, proceeds from sales of operating lease assets, installment loans made to customers and principal collected on installment loans (excluding issues and collections of loans held for sale) are included in “Cash Flows from Investing Activities” under U.S. GAAP while they are classified as “Cash Flows from Operating Activities” under Japanese GAAP. (h) Securitization of financial assets Under U.S. GAAP, an entity is required to perform analysis to determine whether or not to consolidate special-purpose entities (“SPEs”) for securitization under the VIE’s consolidation rules. As a result of the analysis, if it is determined that the enterprise transferred financial assets in a securitization transaction to an SPE that needs to be consolidated, the transaction is not accounted for as a sale but accounted for as a secured borrowing. Under Japanese GAAP, an SPE that meets certain conditions may be considered not to be a subsidiary of the transferor. Therefore, if an enterprise transfers financial assets to this type of SPE in a securitization transaction, the transferee SPE is not required to be consolidated, and the enterprise accounts for the transaction as a sale and recognizes a gain or loss on the sale into earnings when control over the transferred assets is surrendered. (i) Fair value option Under U.S. GAAP, an entity is permitted to carry certain eligible financial assets and liabilities at fair value and to recognize changes in that item’s fair value in earnings through the election of the fair value option. Under Japanese GAAP, there are no accounting standard for fair value option. |
Significant Accounting and Repo
Significant Accounting and Reporting Policies | 6 Months Ended |
Sep. 30, 2017 | |
Significant Accounting and Reporting Policies | 2. Significant Accounting and Reporting Policies (a) Principles of consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Investments in affiliates, where the Company has the ability to exercise significant influence by way of 20% – 50% ownership or other means, are accounted for by using the equity method. Where the Company holds majority voting interests but noncontrolling shareholders have substantive participating rights to decisions that occur as part of the ordinary course of their business, the equity method is applied. In addition, the consolidated financial statements also include variable interest entities to which the Company and its subsidiaries are primary beneficiaries. A lag period of up to three months is used on a consistent basis for recognizing the results of certain subsidiaries and affiliates. All significant intercompany accounts and transactions have been eliminated in consolidation. (b) Use of estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company has identified ten areas where it believes assumptions and estimates are particularly critical to the financial statements. The Company makes estimates and assumptions to the selection of valuation techniques and determination of assumptions used in fair value measurements, the determination and periodic reassessment of the unguaranteed residual value for direct financing leases and operating leases, the determination and reassessment of insurance policy liabilities and deferred policy acquisition costs, the determination of the allowance for doubtful receivables on direct financing leases and probable loan losses, the recognition and measurement of impairment of long-lived assets, the recognition and measurement of impairment of investment in securities, the determination of the valuation allowance for deferred tax assets and the evaluation of tax positions, the assessment and measurement of effectiveness in hedging relationship using derivative financial instruments, the determination of benefit obligation and net periodic pension cost and the recognition and measurement of impairment of goodwill and intangible assets that have indefinite useful lives. (c) Foreign currencies translation The Company and its subsidiaries maintain their accounting records in their functional currency. Transactions in foreign currencies are recorded in the entity’s functional currency based on the prevailing exchange rates on the transaction date. The financial statements of overseas subsidiaries and affiliates are translated into Japanese yen by applying the exchange rates in effect at the end of each fiscal year to all assets and liabilities. Income and expenses are translated at the average rates of exchange prevailing during the fiscal year. The currencies in which the operations of the overseas subsidiaries and affiliates are conducted are regarded as the functional currencies of these companies. Foreign currency translation adjustments reflected in other comprehensive income (loss) arise from the translation of foreign currency financial statements into Japanese yen. (d) Revenue recognition Revenues are recognized when persuasive evidence of an arrangement exists, the service has been rendered or the goods have been delivered to the customer, the transaction price is fixed or determinable and collectability is reasonably assured. In addition to the aforementioned general policy, the policies as specifically described hereinafter are applied for each of the major revenue items. Finance Revenues (1) Revenues from direct financing leases Direct financing leases consist of full-payout leases for various equipment types, including office equipment, industrial machinery and transportation equipment. In providing leasing services, the Company and its subsidiaries execute supplemental services, such as paying insurance and handling taxes on leased assets on behalf of lessees. The excess of aggregate lease rentals plus the estimated unguaranteed residual value over the cost of the leased equipment constitutes the unearned lease income to be taken into income over the lease term by using the interest method. The estimated unguaranteed residual value represents estimated proceeds from the disposition of equipment at the time the lease is terminated. The estimated unguaranteed residual value is based on market value of used equipment, estimates of when and how much equipment will become obsolete, and actual recovery being experienced for similar used equipment. Initial direct costs are being deferred and amortized as a yield adjustment over the life of the related lease by using interest method. The unamortized balance of initial direct costs is reflected as a component of investment in direct financing leases. (2) Revenues from installment loans Interest income on installment loans is recognized on an accrual basis. Certain direct loan origination costs, net of origination fees, are being deferred and amortized over the contractual term of the loan as an adjustment of the related loan’s yield using the interest method. Interest payments received on impaired loans other than purchased loans are recorded as interest income unless the collection of the remaining investment is doubtful at which time payments received are recorded as reductions of principal. For purchased loans, although the acquired assets may remain loans in legal form, collections on these loans often do not reflect the normal historical experience of collecting delinquent accounts, and the need to tailor individual collateral-realization strategies often makes it difficult to reliably estimate the amount, timing, or nature of collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans regardless of whether impairment is recognized or not. (3) Non-accrual In common with all classes, past-due past-due past-due past-due past-due past-due non-accrual non-accrual Gains on investment securities and dividends — Operating leases — Estimates of residual values are based on market values of used equipment, estimates of when and the extent to which equipment will become obsolete and actual recovery being experienced for similar used equipment. Sales of goods and real estate— (1) Sales of goods The Company and its subsidiaries sell to their customers various types of goods, including precious metals and jewels. Revenues from such sales of goods are recognized when persuasive evidence of an arrangement exists, delivery has occurred, and collectability is reasonably assured. Delivery is considered to have occurred when the customer has taken title to the goods and assumed the risks and rewards of ownership. Revenues are recognized net of estimated sales returns and incentives. (2) Real estate sales Revenues from the sales of real estate are recognized when a contract is in place, a closing has taken place, the buyer’s initial and continuing investment is adequate to demonstrate a commitment to pay for the property and the Company and its subsidiaries do not have a substantial continuing involvement in the property. Services income — (1) Revenues from asset management and servicing The Company and its subsidiaries provide to our customers investment management services for investments in financial assets, and asset management as well as maintenance and administrative services for investments in real estate properties. The Company and its subsidiaries also perform servicing on behalf of our customers. The Company and its subsidiaries receive fees for those services from our customers. Revenues from asset management and servicing primarily include management fees, servicing fees, and performance fees. Management and servicing fees are recognized when transactions occur or services are rendered and the amounts are fixed or determinable and collectability of which is reasonably assured. Management fees are calculated based on the predetermined percentages of the market value of the assets under management or net assets of the investment funds in accordance with contracts. Certain subsidiaries recognize revenues from performance fees when earned based on the performance of the asset under management while other subsidiaries recognize revenues from performance fees on an accrual basis over the period in which services are performed. Performance fees are calculated based on the predetermined percentages on the performance of the assets under management in accordance with the contracts. (2) Revenues from automobile maintenance services The Company and its subsidiaries provide automobile maintenance services to lessees. Where under terms of the lease or related maintenance agreements the Company and its subsidiaries bear the favorable or unfavorable variability of cost, revenues and expenses are recorded on a gross basis. For those arrangements in which the Company and its subsidiaries do not have substantial risks and rewards of ownership, but instead serve as an agent in collecting from lessees and remitting payments to third parties, the Company and its subsidiaries record revenues net of third-party services costs. Revenues from automobile maintenance services are recognized over the contract period in proportion to the estimated service costs to be incurred. (e) Insurance and reinsurance transactions Premium income from life insurance policies, net of premiums on reinsurance ceded, is recognized as earned premiums when due. Life insurance benefits are recorded as expenses when they are incurred. Policy liabilities and policy account balances for future policy benefits are measured using the net level premium method, based on actuarial estimates of the amount of future policyholder benefits. The policies are characterized as long-duration policies and mainly consist of whole life, term life, endowments, medical insurance and individual annuity insurance contracts. For policies other than individual annuity insurance contracts, computation of policy liabilities necessarily includes assumptions about mortality, morbidity, lapse rates, future yields on related investments and other factors applicable at the time the policies are written. A certain subsidiary continually evaluates the potential for changes in the estimates and assumptions applied in determining policy liabilities, both positive and negative and uses the results of these evaluations both to adjust recorded liabilities and to adjust underwriting criteria and product offerings. The insurance contracts sold by the subsidiary also include variable annuity, variable life and fixed annuity insurance contracts. The subsidiary manages investment assets on behalf of variable annuity and variable life policyholders, which consist of equity securities and are included in investments in securities in the consolidated balance sheets. These investment assets are measured at fair value with realized and unrealized gains or losses recognized in life insurance premiums and related investment income in the consolidated statements of income. The subsidiary elected the fair value option for the entire variable annuity and variable life insurance contracts with changes in the fair value recognized in life insurance costs. The subsidiary provides minimum guarantees to variable annuity and variable life policyholders under which it is exposed to the risk of compensating losses incurred by the policyholders to the extent contractually required. To mitigate the risk, a portion of the minimum guarantee risk related to variable annuity and variable life insurance contracts is ceded to reinsurance companies and the remaining risk is economically hedged by entering into derivative contracts. The reinsurance contracts do not relieve the subsidiary from the obligation as the primary obligor to compensate certain losses incurred by the policyholders, and the default of the reinsurance companies may impose additional losses on the subsidiary. Certain subsidiaries have elected the fair value option for certain reinsurance contracts relating to variable annuity and variable life insurance contracts, which is included in other assets in the consolidated balance sheets. Policy liabilities and policy account balances for fixed annuity insurance contracts are measured based on the single-premiums plus interest based on expected rate and fair value adjustments relating to the acquisition of a subsidiary, less withdrawals, expenses and other charges. The credited interest is recorded in life insurance costs in the consolidated statements of income. Certain costs related directly to the successful acquisition of new or renewal insurance contracts, or deferred policy acquisition costs, are deferred and amortized over the respective policy periods in proportion to anticipated premium revenue. These deferred policy acquisition costs consist primarily of first-year commissions, except for recurring policy maintenance costs and certain variable costs and expenses for underwriting policies. (f) Allowance for doubtful receivables on direct financing leases and probable loan losses The allowance for doubtful receivables on direct financing leases and probable loan losses is maintained at a level which, in the judgment of management, is appropriate to provide for probable losses inherent in lease and loan portfolios. The allowance is increased by provision charged to income and is decreased by charge-offs, net of recoveries. Developing the allowance for doubtful receivables on direct financing leases and probable loan losses is subject to numerous estimates and judgments. In evaluating the appropriateness of the allowance, management considers various factors, including the business characteristics and financial conditions of the obligors, current economic conditions and trends, prior charge-off non-impaired charge-off charge-off The Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal considering debtors’ creditworthiness and the liquidation status of collateral. (g) Impairment of long-lived assets The Company and its subsidiaries perform a recoverability test for long-lived assets to be held and used in operations, including tangible assets and intangible assets being amortized, consisting primarily of office buildings, condominiums, golf courses and other properties under facility operations, whenever events or changes in circumstances indicated that the assets might be impaired. The assets are considered not recoverable when the undiscounted future cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount. The Company and its subsidiaries determine the fair value using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. (h) Investment in securities Trading securities are reported at fair value with unrealized gains and losses included in income. Available-for-sale Held-to-maturity Other securities are recorded at cost or carrying value that reflects equity income and loss based on the Company’s share, except investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option. For available-for-sale For debt securities, where the fair value is less than the amortized cost, the Company and its subsidiaries consider whether those securities are other-than-temporarily impaired using all available information about their collectability. The Company and its subsidiaries do not consider a debt security to be other-than-temporarily impaired if (1) the Company and its subsidiaries do not intend to sell the debt security, (2) it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. On the other hand, the Company and its subsidiaries consider a debt security to be other-than-temporarily impaired if any of the above mentioned three conditions are not met. When the Company and its subsidiaries deem a debt security to be other-than-temporarily impaired, the Company and its subsidiaries recognize the entire difference between the amortized cost and the fair value of the debt securities in earnings if the Company and its subsidiaries intend to sell the debt security or it is more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss. However, if the Company and its subsidiaries do not intend to sell the debt security and it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss, the Company and its subsidiaries separate the difference between the amortized cost and the fair value of the debt securities into the credit loss component and the non-credit non-credit For other securities, when the Company and its subsidiaries determine the decline in value is other than temporary, the Company and its subsidiaries reduce the carrying value of the security to the fair value and charge against income losses related to these other securities. (i) Income taxes The Company, in general, determines its provision for income taxes for quarterly periods by applying the current estimate of the effective tax rate for the full fiscal year to the actual year-to-date At the fiscal year end, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if, based on the weight of available evidence, it is “more likely than not” that some portion or all of the deferred tax asset will not be realized. The effective income tax rates for the six months ended September 30, 2016 and 2017 were 33.0% and 32.9%, respectively. These rates are 33.0% and 32.9% for the three months ended September 30, 2016 and 2017, respectively. For the six and three months ended September 30, 2016 and 2017, the Company and its subsidiaries in Japan were subject to a National Corporate tax of approximately 24%, an Inhabitant tax of approximately 4% and a deductible Enterprise tax of approximately 4%, which in the aggregate result in a statutory income tax rate of approximately 31.7%. The effective income tax rate is different from the statutory tax rate primarily because of certain nondeductible expenses for tax purposes, non-taxable The Company and its subsidiaries file tax returns in Japan and certain foreign tax jurisdictions and recognize the financial statement effects of a tax position taken or expected to be taken in a tax return when it is more likely than not, based on the technical merits, that the position will be sustained upon tax examination, including resolution of any related appeals or litigation processes, and measure tax positions that meet the recognition threshold at the largest amount of tax benefit that is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company and its subsidiaries present an unrecognized tax benefit as either a reduction of a deferred tax asset, a reduction of an amount refundable or a liability, based on the intended method of settlement. The Company and its subsidiaries classify penalties and interest expense related to income taxes as part of provision for income taxes in the consolidated statements of income. The Company and certain subsidiaries have elected to file a consolidated tax return for National Corporation tax purposes. (j) Securitized assets The Company and its subsidiaries have securitized and sold to investors various financial assets such as lease receivables and loan receivables. In the securitization process, the assets to be securitized are sold to trusts or SPEs that issue asset-backed beneficial interests and securities to the investors. Trusts or SPEs used in securitization transactions are consolidated if the Company and its subsidiaries are the primary beneficiary of the trusts or SPEs, and the transfers of the financial assets to those consolidated trusts and SPEs are not accounted for as sales. Assets held by consolidated trusts or consolidated SPEs continue to be accounted for as lease receivables or loan receivables, as they were before the transfer, and asset-backed beneficial interests and securities issued to the investors are accounted for as debt. When the Company and its subsidiaries have transferred financial assets to a transferee that is not subject to consolidation, the Company and its subsidiaries account for the transfer as a sale if control over the transferred assets is surrendered. A certain subsidiary originates and sells loans into the secondary market, while retaining the obligation to service those loans. In addition, it undertakes obligations to service loans originated by others. The subsidiary recognizes servicing assets if it expects the benefit of servicing to more than adequately compensate it for performing the servicing or recognizes servicing liabilities if it expects the benefit of servicing to less than adequately compensate it. These servicing assets and liabilities are initially recognized at fair value and subsequently accounted for using the amortization method whereby the assets and liabilities are amortized in proportion to and over the period of estimated net servicing income or net servicing loss. On a quarterly basis, servicing assets and liabilities are evaluated for impairment or increased obligations. The fair value of servicing assets and liabilities is estimated using an internal valuation model, or by obtaining an opinion of value from an independent third-party vendor. Both methods are based on calculating the present value of estimated future net servicing cash flows, taking into consideration discount rates, prepayments and servicing costs. The internal valuation model is validated at least semiannually through third-party valuations. (k) Derivative financial instruments The Company and its subsidiaries recognize all derivatives on the consolidated balance sheets at fair value. The accounting treatment of subsequent changes in the fair value depends on their use, and whether they qualify as effective “hedges” for accounting purposes. Derivatives for the purpose of economic hedge that are not qualified for hedge accounting are adjusted to fair value through the consolidated statements of income. If a derivative is a hedge, then depending on its nature, changes in its fair value will be either offset against change in the fair value of hedged assets or liabilities through the consolidated statements of income, or recorded in other comprehensive income (loss). If a derivative is held as a hedge of the variability of fair value related to a recognized asset or liability or an unrecognized firm commitment (“fair value” hedge), changes in the fair value of the derivative are recorded in earnings along with the changes in the fair value of the hedged item. If a derivative is held as a hedge of the variability of cash flows related to a forecasted transaction or a recognized asset or liability (“cash flow” hedge), changes in the fair value of the derivative are recorded in other comprehensive income (loss) to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. If a derivative is held as a hedge of a foreign-currency fair-value or cash-flow hedge (“foreign currency” hedge), changes in the fair value of the derivative are recorded in either earnings or other comprehensive income (loss), depending on whether the hedged transaction is a fair-value hedge or a cash-flow hedge. However, if a derivative is used as a hedge of a net investment in a foreign operation, changes in its fair value, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within other comprehensive income (loss). The ineffective portion of changes in fair value of derivatives that qualify as a hedge are recorded in earnings. For all hedging relationships that are designated and qualify as hedging, at inception the Company and its subsidiaries formally document the details of the hedging relationship and the hedged activity. The Company and its subsidiaries also formally assess, both at the hedge’s inception and on an ongoing basis, the effectiveness of the hedge relationship. The Company and its subsidiaries cease hedge accounting prospectively when the derivative no longer qualifies for hedge accounting. (l) Pension plans The Company and certain subsidiaries have contributory and non-contributory The Company and its subsidiaries also recognize the funded status of pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, on the consolidated balance sheets. Changes in that funded status are recognized in the year in which the changes occur through other comprehensive income (loss), net of applicable income taxes. (m) Stock-based compensation The Company and its subsidiaries measure stock-based compensation expense as consideration for services provided by employees based on the fair value of the grant date. The costs are recognized over the requisite service period. (n) Stock splits Stock splits implemented prior to October 1, 2001 had been accounted for by transferring an amount equivalent to the par value of the shares from additional paid-in As a result of a revision to the Code before amendment effective on October 1, 2001 and the Companies Act implemented on May 1, 2006, the above-mentioned method of accounting required by the Code became unnecessary. In the United States, stock splits in comparable circumstances are considered to be stock dividends and are accounted for by transferring from retained earnings to common stock and additional paid-in paid-in paid-in (o) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits placed with banks and short-term highly liquid investments with original maturities of three months or less. (p) Restricted cash Restricted cash consists of trust accounts under securitization programs and real estate, deposits related to servicing agreements, deposits collected on the underlying assets and applied to non-recourse (q) Installment loans Certain loans, for which the Company and its subsidiaries have the intent and ability to sell to outside parties in the foreseeable future, are considered held for sale and are carried at the lower of cost or market value determined on an individual basis, except loans held for sale for which the fair value option was elected. A subsidiary elected the fair value option on its loans held for sale originated on or after October 1, 2011. The subsidiary enters into forward sale agreements to offset the change in the fair value of loans held for sale, and the election of the fair value option allows the subsidiary to recognize both the change in the fair value of the loans and the change in the fair value of the forward sale agreements due to changes in interest rates in the same accounting period. Loans held for sale are included in installment loans, and the outstanding balances of these loans as of March 31, 2017 and September 30, 2017 were ¥22,548 million and ¥55,481 million, respectively. There were ¥19,232 million and ¥14,735 million of loans held for sale as of March 31, 2017 and September 30, 2017, respectively, measured at fair value by electing the fair value option. (r) Property under facility operations Property under facility operations consist primarily of operating facilities (including golf courses, hotels, training facilities and senior housings) and environmental assets (including mega solar), which are stated at cost less accumulated depreciation, and depreciation is calculated mainly on a straight-line basis over the estimated useful lives of the assets. Accumulated depreciation was ¥85,255 million and ¥96,531 million as of March 31, 2017 and September 30, 2017, respectively. (s) Trade notes, accounts and other receivable Trade notes, accounts and other receivable primarily include accounts receivables in relation to sales of assets to be leased, inventories and other assets and payment made on behalf of lessees for property tax, maintenance fees and insurance premiums in relation to direct financing lease contracts. (t) Inventories Inventories consist primarily of residential condominiums under development, completed residential condominiums (including those waiting to be delivered to buyers under the contract for sale), and merchandise for sale. Residential condominiums under development are carried at cost less any impairment losses, and completed residential condominiums and merchandises for sale are stated at the lower of cost or fair value less cost to sell. The cost of inventories that are unique and not interchangeable is determined on the specific identification method and the cost of other inventories is principally determined on the average method. As of March 31, 2017 and September 30, 2017, residential condominiums under development were ¥60,920 million and ¥75,270 million, respectively, and completed residential condominiums and merchandises for sale were ¥56,943 million and ¥54,612 million, respectively. The company and its subsidiaries recorded ¥636 million and ¥88 million of write-downs principally on completed residential condominiums and merchandise for sale for the six months ended September 30, 2016 and 2017, respectively, primarily resulting from a decrease in expected sales price. The amounts of such write-downs for the three months ended September 30, 2016 and 2017 were ¥587 million and ¥64 million, respectively. These write-downs were recorded in costs of goods and real estate sold and principally included in the Investment and Operation segment. (u) Office facilities Office facilities are stated at cost less accumulated depreciation. Depreciation is calculated on a declining-balance basis or straight-line basis over the estimated useful lives of the assets. Accumulated depreciation was ¥47,534 million and ¥50,630 million as of March 31, 2017 and September 30, 2017, respectively. (v) Other assets Other assets consist primarily of the excess of purchase prices over the net assets acquired in acquisitions (goodwill) and other intangible assets, reinsurance recoverables in relation to reinsurance contracts, deferred insurance policy acquisition costs which are amortized over the contract periods, leasehold deposits, advance payments made in relation to purchases of assets to be leased and construction of real estate for operating lease, prepaid benefit cost, derivative assets and deferred tax assets. (w) Goodwill and other intangible assets The Company and its subsidiaries account for all business combinations using the acquisition method. The Company and its subsidiaries recognize intangible assets acquired in a business combination apart from goodwill if the intangible assets meet one of two criteria—either the contractual-legal criterion or the se |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements | 3. Fair Value Measurements The Company and its subsidiaries classify and prioritize inputs used in valuation techniques to measure fair value into the following three levels: Level 1 — Inputs of quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly. Level 3 — Unobservable inputs for the assets or liabilities. The Company and its subsidiaries differentiate between those assets and liabilities required to be carried at fair value at every reporting period (“recurring”) and those assets and liabilities that are only required to be adjusted to fair value under certain circumstances (“nonrecurring”). The Company and its subsidiaries mainly measure certain loans held for sale, trading securities, available-for-sale The following tables present recorded amounts of major financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and September 30, 2017: March 31, 2017 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 ¥ 19,232 ¥ 0 ¥ 19,232 ¥ 0 Trading securities 569,074 37,500 531,574 0 Available-for-sale 1,165,417 93,995 946,906 124,516 Japanese and foreign government bond securities 345,612 2,748 342,864 0 Japanese prefectural and foreign municipal bond securities*2 168,822 0 168,822 0 Corporate debt securities*3 393,644 11,464 380,562 1,618 Specified bonds issued by SPEs in Japan 1,087 0 0 1,087 CMBS and RMBS in the Americas 98,501 0 40,643 57,858 Other asset- backed securities and debt securities 64,717 0 764 63,953 Equity securities*4 93,034 79,783 13,251 0 Other securities 27,801 0 0 27,801 Investment funds*5 27,801 0 0 27,801 Derivative assets 22,999 734 17,032 5,233 Interest rate swap agreements 304 0 304 0 Options held/written and other 5,804 0 571 5,233 Futures, foreign exchange contracts 12,346 734 11,612 0 Foreign currency swap agreements 4,545 0 4,545 0 Netting*6 (4,019 ) 0 0 0 Net derivative assets 18,980 0 0 0 Other assets 22,116 0 0 22,116 Reinsurance recoverables*7 22,116 0 0 22,116 Total ¥ 1,826,639 ¥ 132,229 ¥ 1,514,744 ¥ 179,666 Liabilities: Derivative liabilities ¥ 16,295 ¥ 165 ¥ 16,130 ¥ 0 Interest rate swap agreements 4,567 0 4,567 0 Options held/written and other 1,071 0 1,071 0 Futures, foreign exchange contracts 8,821 165 8,656 0 Foreign currency swap agreements 1,677 0 1,677 0 Credit derivatives held 159 0 159 0 Netting*6 (4,019 ) 0 0 0 Net derivative Liabilities 12,276 0 0 0 Policy Liabilities and Policy Account Balances 605,520 0 0 605,520 Variable annuity and variable life insurance contracts*8 605,520 0 0 605,520 Total ¥ 621,815 ¥ 165 ¥ 16,130 ¥ 605,520 September 30, 2017 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 ¥ 14,735 ¥ 0 ¥ 14,735 ¥ 0 Trading securities 487,839 40,177 447,662 0 Available-for-sale 1,062,105 75,834 854,481 131,790 Japanese and foreign government bond securities 280,085 4,897 275,188 0 Japanese prefectural and foreign municipal bond securities*2 160,391 0 160,391 0 Corporate debt securities*3 379,539 2,648 374,106 2,785 Specified bonds issued by SPEs in Japan 963 0 0 963 CMBS and RMBS in the Americas 82,456 0 32,876 49,580 Other asset- backed securities and debt securities 79,225 0 763 78,462 Equity securities*4 79,446 68,289 11,157 0 Other securities 35,651 0 0 35,651 Investment funds*5 35,651 0 0 35,651 Derivative assets 11,898 75 6,553 5,270 Interest rate swap agreements 224 0 224 0 Options held/written and other 6,743 0 1,473 5,270 Futures, foreign exchange contracts 1,194 75 1,119 0 Foreign currency swap agreements 3,737 0 3,737 0 Netting*6 (1,109 ) 0 0 0 Net derivative assets 10,789 0 0 0 Other assets 15,242 0 0 15,242 Reinsurance recoverables*7 15,242 0 0 15,242 Total ¥ 1,627,470 ¥ 116,086 ¥ 1,323,431 ¥ 187,953 Liabilities: Derivative liabilities ¥ 33,594 ¥ 2,121 ¥ 31,473 ¥ 0 Interest rate swap agreements 4,551 0 4,551 0 Options held/written and other 1,833 0 1,833 0 Futures, foreign exchange contracts 26,060 2,121 23,939 0 Foreign currency swap agreements 1,020 0 1,020 0 Credit derivatives held 130 0 130 0 Netting*6 (1,109 ) 0 0 0 Net derivative Liabilities 32,485 0 0 0 Policy Liabilities and Policy Account Balances 517,019 0 0 517,019 Variable annuity and variable life insurance contracts*8 517,019 0 0 517,019 Total ¥ 550,613 ¥ 2,121 ¥ 31,473 ¥ 517,019 *1 A certain subsidiary elected the fair value option on the loans held for sale originated on or after October 1, 2011. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were a gain of ¥681 million and a loss of ¥577 million from the change in the fair value of the loans for the six months ended September 30, 2016 and 2017. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥783 million and ¥5 million from the change in the fair value of the loans for the three months ended September 30, 2016 and 2017. No gains or losses were recognized in earnings during the six months ended September 30, 2016 and 2017 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, 2017, were ¥18,362 million and ¥19,232 million, respectively, and the amount of aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥870 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of September 30, 2017, were ¥14,199 million and ¥14,735 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥536 million. As of March 31, 2017 and September 30, 2017, there were no loans that are 90 days or more past due, in non-accrual *2 A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale *3 A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale *4 A certain subsidiary elected the fair value option for certain investments in equity securities included in available-for-sale *5 Certain subsidiaries elected the fair value option for certain investments in investment funds included in other securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥615 million and ¥665 million from the change in the fair value of those investments for the six months ended September 30, 2016 and 2017. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥289 million and ¥342 million from the change in the fair value of those investments for the three months ended September 30, 2016 and 2017. The amounts of aggregate fair value were ¥7,453 million and ¥6,920 million as of March 31, 2017 and September 30, 2017, 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 ¥22,116 million and ¥15,242 million as of March 31, 2017 and September 30, 2017, respectively. For the effect of changes in the fair value of those reinsurance recoverables on earnings during the six and three months ended September 30, 2016 and 2017, see Note 15 “Life Insurance Operations.” *8 Certain subsidiaries elected the fair value option for the entire variable annuity and variable life insurance contracts held in order to match the earnings recognized for the changes in the fair value of policy liabilities and policy account balances with earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and the changes in the fair value of reinsurance contracts. 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 ¥605,520 million and ¥517,019 million as of March 31, 2017 and September 30, 2017, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings during the six and three months ended September 30, 2016 and 2017, see Note 15 “Life Insurance Operations.” Changes in economic conditions or valuation methodologies may require the transfer of assets and liabilities from one fair value level to another. In such instances, the Company and its subsidiaries recognize the transfer at the beginning of the quarter during which the transfers occur. The Company and its subsidiaries evaluate the significance of transfers between levels based upon size of the transfer relative to total assets, total liabilities or total earnings. For the six months ended September 30, 2016 and 2017, there were no transfers between Level 1 and Level 2. 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) for the six months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Balance at April 1, 2016 Gains or losses (realized/unrealized) Purchases *3 Sales Settlements *4 Transfers in and/ or out of Level 3 (net) *5 Balance at September 30, 2016 Change in unrealized gains or losses included in earnings for assets and liabilities still held at September 30, 2016 *1 Included in earnings *1 Included in other comprehensive income *2 Total Available-for-sale ¥ 99,522 ¥ 223 ¥ (3,320 ) ¥ (3,097 ) ¥ 21,082 ¥ (1,666 ) ¥ (10,154 ) ¥ 0 ¥ 105,687 ¥ 59 Corporate debt securities 5 0 2 2 1,500 0 0 0 1,507 0 Specified bonds issued by SPEs in Japan 3,461 1 (18 ) (17 ) 0 (1,200 ) (983 ) 0 1,261 1 CMBS and RMBS in the Americas 38,493 178 (3,990 ) (3,812 ) 16,913 (466 ) (2,340 ) 0 48,788 14 Other asset- backed securities and debt securities 57,563 44 686 730 2,669 0 (6,831 ) 0 54,131 44 Other securities 17,751 851 (1,876 ) (1,025 ) 288 (1,693 ) 0 0 15,321 839 Investment funds 17,751 851 (1,876 ) (1,025 ) 288 (1,693 ) 0 0 15,321 839 Derivative assets and liabilities (net) 8,208 133 0 133 2,493 0 (961 ) 0 9,873 133 Options held/written and other 8,208 133 0 133 2,493 0 (961 ) 0 9,873 133 Other asset 37,855 (4,270 ) 0 (4,270 ) 4,453 0 (484 ) 0 37,554 (4,271 ) Reinsurance recoverables *6 37,855 (4,270 ) 0 (4,270 ) 4,453 0 (484 ) 0 37,554 (4,271 ) Policy Liabilities and Policy Account Balances 795,001 16,545 0 16,545 0 0 (63,022 ) 0 715,434 16,545 Variable annuity and variable life insurance contracts *7 795,001 16,545 0 16,545 0 0 (63,022 ) 0 715,434 16,545 Six months ended September 30, 2017 Millions of yen Balance at April 1, Gains or losses (realized/unrealized) Purchases *3 Sales Settlements *4 Transfers in and/ or out of Level 3 (net) *5 Balance at 2017 Change in unrealized gains or losses included in earnings for assets and liabilities still held at September 30, 2017 *1 Included in earnings *1 Included in other comprehensive income *2 Total Available-for-sale ¥ 124,516 ¥ 1,696 ¥ 895 ¥ 2,591 ¥ 44,545 ¥ (25,114 ) ¥ (14,748 ) ¥ 0 ¥ 131,790 ¥ 120 Corporate debt securities 1,618 0 5 5 1,400 0 (238 ) 0 2,785 0 Specified bonds issued by SPEs in Japan 1,087 5 (2 ) 3 0 0 (127 ) 0 963 5 CMBS and RMBS in the Americas 57,858 1,630 (213 ) 1,417 2,023 (3,468 ) (8,250 ) 0 49,580 60 Other asset- backed securities and debt securities 63,953 61 1,105 1,166 41,122 (21,646 ) (6,133 ) 0 78,462 55 Other securities 27,801 1,881 368 2,249 13,796 (8,195 ) 0 0 35,651 1,881 Investment funds 27,801 1,881 368 2,249 13,796 (8,195 ) 0 0 35,651 1,881 Derivative assets and liabilities (net) 5,233 (1,920 ) 0 (1,920 ) 3,372 0 (1,415 ) 0 5,270 (1,920 ) Options held/written and other 5,233 (1,920 ) 0 (1,920 ) 3,372 0 (1,415 ) 0 5,270 (1,920 ) Other asset 22,116 (8,908 ) 0 (8,908 ) 3,016 0 (982 ) 0 15,242 (8,908 ) Reinsurance recoverables *6 22,116 (8,908 ) 0 (8,908 ) 3,016 0 (982 ) 0 15,242 (8,908 ) Policy Liabilities and Policy Account Balances 605,520 (15,898 ) 0 (15,898 ) 0 0 (104,399 ) 0 517,019 (15,898 ) Variable annuity and variable life insurance contracts *7 605,520 (15,898 ) 0 (15,898 ) 0 0 (104,399 ) 0 517,019 (15,898 ) *1 Principally, gains and losses from available-for-sale available-for-sale *2 Unrealized gains and losses from available-for-sale *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 The amount reported in “Transfers in and/or out of Level 3 (net)” is the fair value at the beginning of quarter during which the transfers occur. *6 “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.” *7 “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. There were no transfers in or out of Level 3 in the six months ended September 30, 2016 and 2017. Changes in economic conditions or valuation methodologies may require the transfer of assets and liabilities from one fair value level to another. In such instances, the Company and its subsidiaries recognize the transfer at the beginning of the quarter during which the transfers occur. The Company and its subsidiaries evaluate the significance of transfers between levels based upon size of the transfer relative to total assets, total liabilities or total earnings. For the three months ended September 30, 2016 and 2017, there were no transfers between Level 1 and Level 2. The following table presents the reconciliation for financial assets and liabilities (net) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended September 30, 2016 and 2017: Three months ended September 30, 2016 Millions of yen Balance at June 30, 2016 Gains or losses (realized/unrealized) Purchases *3 Sales Settlements *4 Transfers in and/ or out of Level 3 (net) *5 Balance at September 30, 2016 Change in unrealized gains or losses included in earnings for assets and liabilities still held at September 30, 2016 *1 Included in earnings *1 Included in other comprehensive income *2 Total Available-for-sale ¥ 96,760 ¥ 36 ¥ 2,518 ¥ 2,554 ¥ 11,700 ¥ 0 ¥ (5,327 ) ¥ 0 ¥ 105,687 ¥ 43 Corporate debt securities 505 0 2 2 1,000 0 0 0 1,507 0 Specified bonds issued by SPEs in Japan 2,178 0 (11 ) (11 ) 0 0 (906 ) 0 1,261 1 CMBS and RMBS in the Americas 41,537 19 (304 ) (285 ) 9,523 0 (1,987 ) 0 48,788 18 Other asset- backed securities and debt securities 52,540 17 2,831 2,848 1,177 0 (2,434 ) 0 54,131 24 Other securities 16,296 523 (338 ) 185 209 (1,369 ) 0 0 15,321 511 Investment funds 16,296 523 (338 ) 185 209 (1,369 ) 0 0 15,321 511 Derivative assets and liabilities (net) 9,687 (458 ) 0 (458 ) 848 0 (204 ) 0 9,873 (458 ) Options held/written and other 9,687 (458 ) 0 (458 ) 848 0 (204 ) 0 9,873 (458 ) Other asset 45,217 (9,633 ) 0 (9,633 ) 2,135 0 (165 ) 0 37,554 (9,634 ) Reinsurance recoverables *6 45,217 (9,633 ) 0 (9,633 ) 2,135 0 (165 ) 0 37,554 (9,634 ) Policy Liabilities and Policy Account Balances 750,915 1,908 0 1,908 0 0 (33,573 ) 0 715,434 1,908 Variable annuity and variable life insurance contracts *7 750,915 1,908 0 1,908 0 0 (33,573 ) 0 715,434 1,908 Three months ended September 30, 2017 Millions of yen Balance at June 30, 2017 Gains or losses (realized/unrealized) Purchases *3 Sales Settlements *4 Transfers in and/ or out of Level 3 (net) *5 Balance at Change in unrealized gains or losses included in earnings for assets and liabilities still held at September 30, Included in earnings *1 Included in other comprehensive income *2 Total Available-for-sale ¥ 117,169 ¥ 1,668 ¥ (133 ) ¥ 1,535 ¥ 37,399 ¥ (16,347 ) ¥ (7,966 ) ¥ 0 ¥ 131,790 ¥ 124 Corporate debt securities 2,069 0 4 4 900 0 (188 ) 0 2,785 0 Specified bonds issued by SPEs in Japan 1,016 5 (1 ) 4 0 0 (57 ) 0 963 5 CMBS and RMBS in the Americas 56,456 1,630 (888 ) 742 615 (2,121 ) (6,112 ) 0 49,580 60 Other asset- backed securities and debt securities 57,628 33 752 785 35,884 (14,226 ) (1,609 ) 0 78,462 59 Other securities 26,457 1,886 (21 ) 1,865 12,423 (5,094 ) 0 0 35,651 1,886 Investment funds 26,457 1,886 (21 ) 1,865 12,423 (5,094 ) 0 0 35,651 1,886 Derivative assets and liabilities (net) 3,961 (790 ) 0 (790 ) 2,108 0 (9 ) 0 5,270 (790 ) Options held/written and other 3,961 (790 ) 0 (790 ) 2,108 0 (9 ) 0 5,270 (790 ) Other asset 18,070 (3,802 ) 0 (3,802 ) 1,405 0 (431 ) 0 15,242 (3,802 ) Reinsurance recoverables *6 18,070 (3,802 ) 0 (3,802 ) 1,405 0 (431 ) 0 15,242 (3,802 ) Policy Liabilities and Policy Account Balances 557,914 (7,060 ) 0 (7,060 ) 0 0 (47,955 ) 0 517,019 (7,060 ) Variable annuity and variable life insurance contracts *7 557,914 (7,060 ) 0 (7,060 ) 0 0 (47,955 ) 0 517,019 (7,060 ) *1 Principally, gains and losses from available-for-sale available-for-sale *2 Unrealized gains and losses from available-for-sale *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 The amount reported in “Transfers in and/or out of Level 3 (net)” is the fair value at the beginning of quarter during which the transfers occur. *6 “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.” *7 “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. There were no transfers in or out of Level 3 in the three months ended September 30, 2016 and 2017. The following tables present recorded amounts of assets measured at fair value on a nonrecurring basis as of March 31, 2017 and September 30, 2017. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment: March 31, 2017 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 probable loan losses) ¥ 12,472 ¥ 0 ¥ 0 ¥ 12,472 Investment in operating leases and property under facility operations 22,525 0 0 22,525 Certain investment in affiliates 15,726 0 0 15,726 ¥ 50,723 ¥ 0 ¥ 0 ¥ 50,723 September 30, 2017 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 probable loan losses) ¥ 6,748 ¥ 0 ¥ 0 ¥ 6,748 Investment in operating leases and property under facility operations 1,657 0 0 1,657 ¥ 8,405 ¥ 0 ¥ 0 ¥ 8,405 The following is a description of the valuation process and the main valuation methodologies used for assets and liabilities measured at fair value. Valuation process The Company and its subsidiaries determine fair value of Level 3 assets and liabilities by using valuation techniques, such as internally developed models, or using third-party pricing information. Internally developed models include the discounted cash flow methodologies and direct capitalization methodologies. To measure the fair value of the assets and liabilities, the Company and its subsidiaries select the valuation technique which best reflects the nature, characteristics and risks of each asset and liability. The appropriateness of valuation methods and unobservable inputs is verified when measuring fair values of the assets and liabilities by using internally developed models. The Company and its subsidiaries also use third-party pricing information to measure the fair value of certain assets and liabilities. In that case, the Company and its subsidiaries verify the appropriateness of the prices by monitoring available information about the assets and liabilities, such as current conditions of the assets or liabilities, as well as surrounding market information. When these prices are determined to be able to reflect the nature, characteristics and risks of assets and liabilities reasonably, the Company and its subsidiaries use these prices as fair value of the assets and liabilities. Loans held for sale Certain loans, which the Company and its subsidiaries have the intent and ability to sell to outside parties in the foreseeable future, are considered held-for-sale. Real estate collateral-dependent loans The valuation allowance for large balance non-homogeneous The Company and its subsidiaries determine the fair value of the real estate collateral of real estate collateral-dependent loans using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. The Company and its subsidiaries generally obtain a new appraisal once a fiscal year. In addition, the Company and its subsidiaries periodically monitor circumstances of the real estate collateral and then obtain a new appraisal in situations involving a significant change in economic and/or physical conditions, which may materially affect the fair value of the collateral. Real estate collateral-dependent loans whose fair values are estimated using appraisals of the underlying collateral based on these valuation techniques are classified as Level 3 because such appraisals involve unobservable inputs. These unobservable inputs contain discount rates and cap rates as well as future cash flows estimated to be generated from real estate collateral. An increase (decrease) in the discount rate or cap rate and a decrease (increase) in the estimated future cash flows would result in a decrease (increase) in the fair value of real estate collateral-dependent loans. Investment in operating leases and property under facility operations and land and buildings undeveloped or under construction Investment in operating leases measured at fair value is mostly real estate. The Company and its subsidiaries determine the fair value of investment in operating leases and property under facility operations and land and buildings undeveloped or under construction using appraisals prepared by independent third party appraisers or the Company’s own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flow methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. The Company and its subsidiaries classified the assets as Level 3 because such appraisals involve unobservable inputs. These unobservable inputs contain discount rates as well as future cash flows estimated to be generated from the assets or projects. An increase (decrease) in the discount rate and a decrease (increase) in the estimated future cash flows would result in a decrease (increase) in the fair value of investment in operating leases and property under facility operations and land and buildings undeveloped or under construction. Trading securities, Available-for-sale If active market prices are available, fair value measurement is based on quoted active market prices and, accordingly, these securities are 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 prices for similar assets and accordingly these securities are 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 and broker quotes. Such securities are classified as Level 3, as the valuation models and broker quotes are based on inputs that are unobservable in the market. If fair value is based on broker quotes, the Company and its subsidiaries check the validity of received prices based on comparison to prices of other similar assets and market data such as relevant bench mark indices. The Company and its subsidiaries classified CMBS and RMBS in the Americas and other asset-backed securities as Level 2 if the inputs such as trading price and/or bid price are observable. The Company and its subsidiaries classified CMBS and RMBS in the Americas and other asset-backed securities as Level 3 if the company and subsidiaries evaluate the fair value based on the unobservable inputs. In determining whether the inputs are observable or unobservable, the Company and its subsidiaries evaluate various factors such as the lack of recent transactions, price quotations that are not based on current information or vary substantially over time or among market makers, a significant increase in implied risk premium, a wide bid-ask principal-to-principal The Company and its subsidiaries classified the specified bonds as Level 3 because the Company and its subsidiaries measure their fair value using unobservable inputs. Since the specified bonds are not traded in an open market, no relevant observable market data is available. Accordingly the Company and its subsidiaries use the discounted cash flow methodologies that incorporates significant unobservable inputs to measure their fair value. When evaluating the specified bonds issued by SPEs in Japan, the Company and its subsidiaries estimate the fair value by discounting future cash flows using a discount rate based on market interest rates and a risk premium. The future cash flows for the specified bonds issued by the SPEs in Japan are estimated based on contractual principal and interest repayment schedules on each of the specified bonds issued by the SPEs in Japan. Since the discount rate is not observable for the specified bonds, the Company and its subsidiaries use an internally developed model to estimate a risk premium considering the value of the real estate collateral (which also involves unobservable inputs in many cases when using valuation techniques such as discounted cash flow methodologies) and the seniority of the bonds. Under the model, the Company and its subsidiaries consider the loan-to-value loan-to-value Investment funds Certain subsidiaries elected the fair value option for investments in some funds. These investment funds for which the fair value option is elected are classified as Level 3, because the subsidiaries measure their fair value using discounting to net asset value based on inputs that are unobservable in the market. A certain subsidiary measures its investment held by the investment company which is owned by the subsidiary at fair value. Derivatives For exchange-traded derivatives, fair value is based on quoted market prices, and accordingly, classified as Level 1. For non-exchange Reinsurance recoverables Certain subsidiaries have elected the fair value option for certain reinsurance contracts related to variable annuity and variable life insurance contracts to partially offset the changes in fair value recognized in earnings of the policy liabilities and policy account balances attributable to the changes in the minimum guarantee risks of the variable annuity and variable life insurance contracts. These reinsurance contracts for which the fair value option is elected are classified as Level 3 because the subsidiaries measure their fair value using discounted cash flow methodologies based on inputs that are unobservable in the market. Variable annuity and variable life insurance contracts A certain subsidiary has elected the fair value option for the entire variable annuity and variable life insurance contracts held in order to match earnings recognized for changes in fair value of policy liabilities and policy account balances with the earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and changes in fair value of reinsurance contracts. The changes in fair value of the variable annuity and variable life insurance contracts are linked to the fair value of the investment in securities managed on behalf of variable annuity and variable life policyholders. These securities consist mainly of equity securities traded in the market and are categorized as trading securities. In addition, variable annuity and variable life insurance contracts are exposed to the minimum guarantee risk, and the subsidiary adjusts the fair value of the underlying investments by incorporating changes in fair value of the minimum guarantee risk in the evaluation of the fair value of the entire variable annuity and variable life insurance contracts. The variable annuity and variable life insurance contracts for which the fair value option is elected are classified as Level 3 because the subsidiary measures the fair value using discounted cash flow methodologies based on inputs that are unobservable in the market. Information about Level 3 Fair Value Measurements 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, 2017 and September 30, 2017. March 31, 2017 Millions of yen Fair value Valuation technique(s) Significant unobservable inputs Range (Weighted average) Assets: Available-for-sale Corporate debt securities ¥ 1,613 Discounted cash flows Discount rate 0.5% – 1.6% (1.1%) 5 Appraisals/Broker quotes — — Specified bonds issued by SPEs in Japan 1,087 Appraisals/Broker quotes — — CMBS and RMBS in the Americas 57,858 Discounted cash flows Discount rate 6.4% – 22.6% (18.0%) Probability of default 0.0% – 26.4% (3.6%) Other asset-backed securities and debt securities 13,890 Discounted cash flows Discount rate 1.0% – 51.2% (8.9%) Probability of default 0.6% – 11.0% (0.8%) 50,063 Appraisals/Broker quotes — — Other secur |
Acquisitions and divestitures
Acquisitions and divestitures | 6 Months Ended |
Sep. 30, 2017 | |
Acquisitions and divestitures | 4. Acquisitions and divestitures (1) Acquisitions There were no material acquisitions during the six months ended September 30, 2016 and 2017. The Company recognized a bargain purchase gain of ¥4,287 million associated with one of its acquisitions for the six months ended September 30, 2016. The purchase price allocation was finalized for the three months ended June 30, 2017. The Company recognized a bargain purchase gain of ¥5,802 million associated with this acquisition during fiscal 2017 and did not recognize any bargain purchase gain associated with this acquisition during the six months ended September 30, 2017. (2) Divestitures Gains on sales of subsidiaries and affiliates and liquidation losses, net for the six months ended September 30, 2016 and 2017 amounted to ¥32,834 million and ¥24,972 million, respectively. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the six months ended September 30, 2016 mainly consisted of ¥28,908 million in the Investment and Operation segment and ¥2,352 million in the Overseas Business segment and ¥1,301 million in the Corporate Financial Services segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the six months ended September 30, 2017 consisted of ¥13,760 million in the Overseas Business segment, ¥9,184 million in the Investment and Operation segment and ¥2,028 million in the Corporate Financial Services segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended September 30, 2016 and 2017 amounted to ¥12,346 million and ¥10,474 million, respectively. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended September 30, 2016 mainly consisted of ¥9,533 million in the Investment and Operation segment, ¥1,239 million in the Overseas Business segment and ¥1,301 million in the Corporate Financial Services segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended September 30, 2017 consisted of ¥8,681 million in the Investment and Operation segment, ¥1,793 million in the Overseas Business segment. |
Credit Quality of Financing Rec
Credit Quality of Financing Receivables and the Allowance for Credit Losses | 6 Months Ended |
Sep. 30, 2017 | |
Credit Quality of Financing Receivables and the Allowance for Credit Losses | 5. Credit Quality of Financing Receivables and the Allowance for Credit Losses The Company and its subsidiaries provide the following information disaggregated by portfolio segment and class of financing receivable. Allowance for credit losses—by portfolio segment Credit quality of financing receivables—by class • Impaired loans • Credit quality indicators • Non-accrual past-due Information about troubled debt restructurings—by class A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. The Company and its subsidiaries classify our portfolio segments by instruments of loans and direct financing leases. Classes of financing receivables are determined based on the initial measurement attribute, risk characteristics of the financing receivables and the method for monitoring and assessing obligors’ credit risk, and are defined as the level of detail necessary for a financial statement user to understand the risks inherent in the financing receivables. Classes of financing receivables generally are a disaggregation of a portfolio segment, and the Company and its subsidiaries disaggregate our portfolio segments into classes by regions, instruments or industries of our debtors. The following table provides information about the allowance for credit losses as of March 31, 2017, for the six and three months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 13,267 ¥ 1,800 ¥ 23,391 ¥ 8,233 ¥ 13,380 ¥ 60,071 Provision (reversal) 5,275 261 1,186 (739 ) 760 6,743 Charge-offs (3,326 ) (2 ) (2,690 ) (510 ) (1,798 ) (8,326 ) Recoveries 238 0 145 220 11 614 Other *2 265 (181 ) (2,702 ) (94 ) (602 ) (3,314 ) Ending balance ¥ 15,719 ¥ 1,878 ¥ 19,330 ¥ 7,110 ¥ 11,751 ¥ 55,788 Individually evaluated for impairment 2,927 1,325 10,035 5,123 0 19,410 Not individually evaluated for impairment 12,792 553 9,295 1,987 11,751 36,378 Financing receivables : Ending balance ¥ 1,540,255 ¥ 74,008 ¥ 973,953 ¥ 26,466 ¥ 1,154,239 ¥ 3,768,921 Individually evaluated for impairment 14,942 5,399 31,578 9,291 0 61,210 Not individually evaluated for impairment 1,525,313 68,609 942,375 17,175 1,154,239 3,707,711 Three months ended September 30, 2016 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 14,690 ¥ 1,722 ¥ 21,706 ¥ 7,703 ¥ 12,686 ¥ 58,507 Provision (reversal) 2,639 187 1,236 (423 ) 410 4,049 Charge-offs (1,886 ) (1 ) (2,030 ) (186 ) (1,295 ) (5,398 ) Recoveries 79 0 79 17 0 175 Other *2 197 (30 ) (1,661 ) (1 ) (50 ) (1,545 ) Ending balance ¥ 15,719 ¥ 1,878 ¥ 19,330 ¥ 7,110 ¥ 11,751 ¥ 55,788 March 31, 2017 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Ending balance ¥ 18,599 ¥ 2,951 ¥ 21,079 ¥ 6,061 ¥ 10,537 ¥ 59,227 Individually evaluated for impairment 2,927 2,114 10,565 4,462 0 20,068 Not individually evaluated for impairment 15,672 837 10,514 1,599 10,537 39,159 Financing receivables : Ending balance ¥ 1,616,009 ¥ 88,726 ¥ 1,063,628 ¥ 24,795 ¥ 1,204,024 ¥ 3,997,182 Individually evaluated for impairment 16,667 6,032 28,883 7,443 0 59,025 Not individually evaluated for impairment 1,599,342 82,694 1,034,745 17,352 1,204,024 3,938,157 Six months ended September 30, 2017 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 18,599 ¥ 2,951 ¥ 21,079 ¥ 6,061 ¥ 10,537 ¥ 59,227 Provision (reversal) 6,018 (268 ) 1,278 (209 ) 1,179 7,998 Charge-offs (4,343 ) (115 ) (1,972 ) (1,110 ) (940 ) (8,480 ) Recoveries 376 0 90 63 2 531 Other *2 1 9 (1,430 ) 0 120 (1,300 ) Ending balance ¥ 20,651 ¥ 2,577 ¥ 19,045 ¥ 4,805 ¥ 10,898 ¥ 57,976 Individually evaluated for impairment 3,131 1,984 9,431 3,323 0 17,869 Not individually evaluated for impairment 17,520 593 9,614 1,482 10,898 40,107 Financing receivables : Ending balance ¥ 1,676,208 ¥ 87,454 ¥ 984,754 ¥ 21,998 ¥ 1,214,698 ¥ 3,985,112 Individually evaluated for impairment 18,409 5,443 25,193 5,703 0 54,748 Not individually evaluated for impairment 1,657,799 82,011 959,561 16,295 1,214,698 3,930,364 Three months ended September 30, 2017 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 20,086 ¥ 2,647 ¥ 21,487 ¥ 5,831 ¥ 10,708 ¥ 60,759 Provision (reversal) 2,558 (86 ) 148 (65 ) 804 3,359 Charge-offs (2,254 ) 0 (1,216 ) (1,002 ) (688 ) (5,160 ) Recoveries 258 0 16 39 (12 ) 301 Other *2 3 16 (1,390 ) 2 86 (1,283 ) Ending balance ¥ 20,651 ¥ 2,577 ¥ 19,045 ¥ 4,805 ¥ 10,898 ¥ 57,976 Note: Loans held for sale are not included in the table above. *1 Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely. *2 Other mainly includes foreign currency translation adjustments and a decrease in allowance related to sales of loans. In developing the allowance for credit losses, the Company and its subsidiaries consider, among other things, the following factors: • business characteristics and financial conditions of obligors; • current economic conditions and trends; • prior charge-off • current delinquencies and delinquency trends; and • value of underlying collateral and guarantees. The Company and its subsidiaries individually develop the allowance for credit losses for impaired loans. For non-impaired charge-off charge-off In common with all portfolio segments, a deterioration of debtors’ condition may increase the risk of delay in payments of principal and interest. For loans to consumer borrowers, the amount of the allowance for credit losses is changed by the variation of individual debtors’ creditworthiness and value of underlying collateral and guarantees, and the prior charge-off charge-off The decline of the value of underlying collateral and guarantees may increase the risk of inability to collect from the loans and direct financing leases. Particularly for non-recourse In common with all portfolio segments, the Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal, mainly based upon an evaluation of the relevant debtors’ creditworthiness and the liquidation status of collateral. The following table provides information about the impaired loans as of March 31, 2017 and September 30, 2017: March 31, 2017 Millions of yen Portfolio segment Class Loans individually evaluated for impairment Unpaid principal balance Related allowance With no related allowance recorded *1 : ¥ 6,524 ¥ 6,499 ¥ 0 Consumer borrowers 973 956 0 Housing loans 973 956 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 5,439 5,431 0 Non-recourse Japan 0 0 0 The Americas 0 0 0 Other Real estate companies 0 0 0 Entertainment companies 8 2 0 Other 5,431 5,429 0 Purchased loans 112 112 0 With an allowance recorded *2 : 52,501 51,153 20,068 Consumer borrowers 15,694 14,775 2,927 Housing loans 3,271 2,796 1,202 Card loans 4,102 4,091 616 Other 8,321 7,888 1,109 Corporate borrowers 29,476 29,047 12,679 Non-recourse Japan 203 202 35 The Americas 5,829 5,829 2,079 Other Real estate companies 7,212 7,154 1,638 Entertainment companies 1,728 1,720 637 Other 14,504 14,142 8,290 Purchased loans 7,331 7,331 4,462 Total : ¥ 59,025 ¥ 57,652 ¥ 20,068 Consumer borrowers 16,667 15,731 2,927 Housing loans 4,244 3,752 1,202 Card loans 4,102 4,091 616 Other 8,321 7,888 1,109 Corporate borrowers 34,915 34,478 12,679 Non-recourse Japan 203 202 35 The Americas 5,829 5,829 2,079 Other Real estate companies 7,212 7,154 1,638 Entertainment companies 1,736 1,722 637 Other 19,935 19,571 8,290 Purchased loans 7,443 7,443 4,462 September 30, 2017 Millions of yen Portfolio segment Class Loans individually evaluated for impairment Unpaid principal balance Related allowance With no related allowance recorded *1 : ¥ 8,726 ¥ 8,660 ¥ 0 Consumer borrowers 690 632 0 Housing loans 690 632 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 7,925 7,917 0 Non-recourse Japan 0 0 0 The Americas 0 0 0 Other Real estate companies 2,869 2,869 0 Entertainment companies 8 2 0 Other 5,048 5,046 0 Purchased loans 111 111 0 With an allowance recorded *2 : 46,022 44,827 17,869 Consumer borrowers 17,719 17,003 3,131 Housing loans 3,822 3,411 1,240 Card loans 4,079 4,069 611 Other 9,818 9,523 1,280 Corporate borrowers 22,711 22,503 11,415 Non-recourse Japan 195 195 34 The Americas 5,248 5,248 1,950 Other Real estate companies 3,017 2,962 1,293 Entertainment companies 1,642 1,631 614 Other 12,609 12,467 7,524 Purchased loans 5,592 5,321 3,323 Total : ¥ 54,748 ¥ 53,487 ¥ 17,869 Consumer borrowers 18,409 17,635 3,131 Housing loans 4,512 4,043 1,240 Card loans 4,079 4,069 611 Other 9,818 9,523 1,280 Corporate borrowers 30,636 30,420 11,415 Non-recourse Japan 195 195 34 The Americas 5,248 5,248 1,950 Other Real estate companies 5,886 5,831 1,293 Entertainment companies 1,650 1,633 614 Other 17,657 17,513 7,524 Purchased loans 5,703 5,432 3,323 Note: Loans held for sale are not included in the table above. *1 “With no related allowance recorded” represents impaired loans with no allowance for credit losses as all amounts are considered to be collectible. *2 “With an allowance recorded” represents impaired loans with the allowance for credit losses as all or a part of the amounts are not considered to be collectible. The Company and its subsidiaries recognize installment loans other than purchased loans and loans to consumer borrowers as impaired loans when principal or interest is past-due non-recourse loan-to-value For purchased loans, the Company and its subsidiaries recognize them as impaired loans when it is probable that the Company and its subsidiaries will be unable to collect book values of the remaining investment due to factors such as a decline in the real estate collateral value and debtors’ creditworthiness since the acquisition of these loans. The Company and its subsidiaries consider that loans to consumer borrowers, including housing loans, card loans and other, are impaired when terms of these loans are modified as troubled debt restructurings. Interest payments received on impaired loans other than purchased loans are recorded as interest income unless the collection of the remaining investment is doubtful at which time payments received are recorded as reductions of principal. For purchased loans, although the acquired assets may remain loans in legal form, collections on these loans often do not reflect the normal historical experience of collecting delinquent accounts, and the need to tailor individual collateral-realization strategies often makes it difficult to reliably estimate the amount, timing, or nature of collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans regardless of whether impairment is recognized or not. In common with all classes, impaired loans are individually evaluated for a valuation allowance based on the present value of expected future cash flows, the loan’s observable market price or the fair value of the collateral securing the loans if the loans are collateral-dependent. For non-recourse non-recourse The following table provides information about the average recorded investments in impaired loans and interest income on impaired loans for the six and three months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 14,533 ¥ 143 ¥ 112 Housing loans 4,345 54 41 Card loans 4,116 38 30 Other 6,072 51 41 Corporate borrowers 42,096 353 304 Non-recourse Japan 1,880 4 4 The Americas 5,543 35 35 Other Real estate companies 8,085 114 103 Entertainment companies 2,292 38 38 Other 24,296 162 124 Purchased loans 10,294 334 334 Total ¥ 66,923 ¥ 830 ¥ 750 Six months ended September 30, 2017 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 17,385 ¥ 243 ¥ 173 Housing loans 4,248 134 88 Card loans 4,086 34 27 Other 9,051 75 58 Corporate borrowers 32,972 106 102 Non-recourse Japan 199 3 3 The Americas 5,451 6 6 Other Real estate companies 6,547 27 26 Entertainment companies 1,691 28 27 Other 19,084 42 40 Purchased loans 6,691 3 3 Total ¥ 57,048 ¥ 352 ¥ 278 Three months ended September 30, 2016 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 14,748 ¥ 65 ¥ 58 Housing loans 4,262 22 18 Card loans 4,112 17 16 Other 6,374 26 24 Corporate borrowers 38,906 194 157 Non-recourse Japan 286 2 2 The Americas 5,320 13 13 Other Real estate companies 7,822 65 65 Entertainment companies 2,224 19 19 Other 23,254 95 58 Purchased loans 9,935 122 122 Total ¥ 63,589 ¥ 381 ¥ 337 Three months ended September 30, 2017 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 17,745 ¥ 149 ¥ 103 Housing loans 4,250 96 55 Card loans 4,079 15 14 Other 9,416 38 34 Corporate borrowers 32,001 50 47 Non-recourse Japan 197 1 1 The Americas 5,262 0 0 Other Real estate companies 6,215 14 13 Entertainment companies 1,669 14 13 Other 18,658 21 20 Purchased loans 6,315 1 1 Total ¥ 56,061 ¥ 200 ¥ 151 Note: Loans held for sale are not included in the table above. * Average balances are calculated on the basis of fiscal beginning and quarter-end The following table provides information about the credit quality indicators as of March 31, 2017 and September 30, 2017: March 31, 2017 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer borrowers ¥ 1,589,620 ¥ 16,667 ¥ 9,722 ¥ 26,389 ¥ 1,616,009 Housing loans 1,273,603 4,244 1,685 5,929 1,279,532 Card loans 264,559 4,102 1,346 5,448 270,007 Other 51,458 8,321 6,691 15,012 66,470 Corporate borrowers 1,117,439 34,915 0 34,915 1,152,354 Non-recourse Japan 12,555 203 0 203 12,758 The Americas 70,139 5,829 0 5,829 75,968 Other Real estate companies 313,947 7,212 0 7,212 321,159 Entertainment companies 94,190 1,736 0 1,736 95,926 Other 626,608 19,935 0 19,935 646,543 Purchased loans 17,352 7,443 0 7,443 24,795 Direct financing leases 1,192,424 0 11,600 11,600 1,204,024 Japan 839,848 0 6,442 6,442 846,290 Overseas 352,576 0 5,158 5,158 357,734 Total ¥ 3,916,835 ¥ 59,025 ¥ 21,322 ¥ 80,347 ¥ 3,997,182 September 30, 2017 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer borrowers ¥ 1,646,538 ¥ 18,409 ¥ 11,261 ¥ 29,670 ¥ 1,676,208 Housing loans 1,329,989 4,512 1,691 6,203 1,336,192 Card loans 262,073 4,079 1,632 5,711 267,784 Other 54,476 9,818 7,938 17,756 72,232 Corporate borrowers 1,041,572 30,636 0 30,636 1,072,208 Non-recourse Japan 17,971 195 0 195 18,166 The Americas 64,040 5,248 0 5,248 69,288 Other Real estate companies 332,051 5,886 0 5,886 337,937 Entertainment companies 90,916 1,650 0 1,650 92,566 Other 536,594 17,657 0 17,657 554,251 Purchased loans 16,295 5,703 0 5,703 21,998 Direct financing leases 1,201,961 0 12,737 12,737 1,214,698 Japan 833,303 0 6,731 6,731 840,034 Overseas 368,658 0 6,006 6,006 374,664 Total ¥ 3,906,366 ¥ 54,748 ¥ 23,998 ¥ 78,746 ¥ 3,985,112 Note: Loans held for sale are not included in the table above. In common with all classes, the Company and its subsidiaries monitor the credit quality indicators as performing and non-performing non-performing past-due non-performing Out of non-performing past-due non-performing The following table provides information about the non-accrual past-due March 31, 2017 Millions of yen Past-due Portfolio segment Class 30-89 days past-due 90 days or more past-due Total past-due Total financing receivables Non-accrual Consumer borrowers ¥ 6,433 ¥ 12,971 ¥ 19,404 ¥ 1,616,009 ¥ 12,971 Housing loans 2,314 3,420 5,734 1,279,532 3,420 Card loans 518 1,825 2,343 270,007 1,825 Other 3,601 7,726 11,327 66,470 7,726 Corporate borrowers 4,902 15,224 20,126 1,152,354 24,474 Non-recourse Japan 0 0 0 12,758 0 The Americas 4,028 4,940 8,968 75,968 5,768 Other Real estate companies 37 1,867 1,904 321,159 1,867 Entertainment companies 0 140 140 95,926 140 Other 837 8,277 9,114 646,543 16,699 Direct financing leases 4,834 11,600 16,434 1,204,024 11,600 Japan 535 6,442 6,977 846,290 6,442 Overseas 4,299 5,158 9,457 357,734 5,158 Total ¥ 16,169 ¥ 39,795 ¥ 55,964 ¥ 3,972,387 ¥ 49,045 September 30, 2017 Millions of yen Past-due Portfolio segment Class 30-89 past-due 90 days or more past-due Total past-due Total financing receivables Non-accrual Consumer borrowers ¥ 6,812 ¥ 14,635 ¥ 21,447 ¥ 1,676,208 ¥ 14,635 Housing loans 2,069 3,441 5,510 1,336,192 3,441 Card loans 555 2,122 2,677 267,784 2,122 Other 4,188 9,072 13,260 72,232 9,072 Corporate borrowers 2,982 17,150 20,132 1,072,208 24,398 Non-recourse Japan 0 0 0 18,166 0 The Americas 725 5,248 5,973 69,288 5,248 Other Real estate companies 36 4,244 4,280 337,937 4,244 Entertainment companies 630 138 768 92,566 138 Other 1,591 7,520 9,111 554,251 14,768 Direct financing leases 5,715 12,737 18,452 1,214,698 12,737 Japan 479 6,731 7,210 840,034 6,731 Overseas 5,236 6,006 11,242 374,664 6,006 Total ¥ 15,509 ¥ 44,522 ¥ 60,031 ¥ 3,963,114 ¥ 51,770 Note: Loans held for sale and purchased loans are not included in the table above. In common with all classes, the Company and its subsidiaries consider financing receivables as past-due past-due past-due past-due The Company and its subsidiaries suspend accruing revenues on past-due past-due non-accrual non-accrual The following table provides information about troubled debt restructurings of financing receivables that occurred during the six and three months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 5,309 ¥ 3,993 Housing loans 132 113 Card loans 1,105 908 Other 4,072 2,972 Corporate borrowers 453 453 Other Other 453 453 Total ¥ 5,762 ¥ 4,446 Six months ended September 30, 2017 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 4,680 ¥ 3,662 Housing loans 11 11 Card loans 1,075 853 Other 3,594 2,798 Total ¥ 4,680 ¥ 3,662 Three months ended September 30, 2016 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 2,740 ¥ 2,062 Housing loans ¥ 121 ¥ 108 Card loans 516 418 Other 2,103 1,536 Corporate borrowers 453 453 Other Other 453 453 Total ¥ 3,193 ¥ 2,515 Three months ended September 30, 2017 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 2,472 ¥ 1,935 Card loans 544 430 Other 1,928 1,505 Total ¥ 2,472 ¥ 1,935 A troubled debt restructuring is defined as a restructuring of a financing receivable in which the creditor grants a concession to the debtor for economic or other reasons related to the debtor’s financial difficulties. The Company and its subsidiaries offer various types of concessions to our debtors to protect as much of our investment as possible in troubled debt restructurings. For the debtors of non-recourse non-recourse In common with all portfolio segments, financing receivables modified as troubled debt restructurings are recognized as impaired and are individually evaluated for a valuation allowance. In most cases, these financing receivables have already been considered impaired and individually evaluated for allowance for credit losses prior to the restructurings. However, as a result of the restructuring, the Company and its subsidiaries may recognize additional provision for the restructured receivables. The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from September 30, 2016 and for which there was a payment default during the six and three months ended September 30, 2016: Six months ended September 30, 2016 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 927 Card loans 31 Other 896 Total ¥ 927 Three months ended September 30, 2016 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 452 Card loans 11 Other 441 Total ¥ 452 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from September 30, 2017 and for which there was a payment default during the six and three months ended September 30, 2017: Six months ended September 30, 2017 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 57 Card loans 16 Other 41 Total ¥ 57 Three months ended September 30, 2017 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 43 Card loans 12 Other 31 Total ¥ 43 The Company and its subsidiaries consider financing receivables whose terms have been modified in a restructuring as defaulted receivables when principal or interest is past-due In common with all portfolio segments, the Company and its subsidiaries suspend accruing revenues and may recognize additional provision as necessary for the defaulted financing receivables. As of March 31, 2017 and September 30, 2017, there were no foreclosed residential real estate properties. The carrying amounts of installment loans in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure were ¥324 million and ¥422 million as of March 31, 2017 and September 30, 2017, respectively. |
Investment in Securities
Investment in Securities | 6 Months Ended |
Sep. 30, 2017 | |
Investment in Securities | 6. Investment in Securities Investment in securities as of March 31, 2017 and September 30, 2017 consists of the following: Millions of yen March 31, 2017 September 30, 2017 Trading securities * ¥ 569,074 ¥ 487,839 Available-for-sale 1,165,417 1,062,105 Held-to-maturity 114,400 114,368 Other securities 177,621 185,021 Total ¥ 2,026,512 ¥ 1,849,333 * The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥547,850 million and ¥476,478 million as of March 31, 2017 and September 30, 2017, respectively. Other securities consist mainly of non-marketable A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale A certain subsidiary elected the fair value option for certain investments in equity securities included in available-for-sale Certain subsidiaries elected the fair value option for certain investments in investment funds included in other securities whose net asset values do not represent the fair value of investments due to the illiquid nature of these investments. The subsidiaries manage these investments on a fair value basis and the election of the fair value option enables the subsidiaries to reflect more appropriate assumptions to measure the fair value of these investments. As of March 31, 2017 and September 30, 2017, the fair values of these investments were ¥7,453 million and ¥6,920 million, respectively. The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale held-to-maturity March 31, 2017 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 334,117 ¥ 12,321 ¥ (826 ) ¥ 345,612 Japanese prefectural and foreign municipal bond securities 166,789 3,034 (1,001 ) 168,822 Corporate debt securities 393,021 3,606 (2,983 ) 393,644 Specified bonds issued by SPEs in Japan 1,077 10 0 1,087 CMBS and RMBS in the Americas 95,700 3,359 (558 ) 98,501 Other asset-backed securities and debt securities 61,138 3,957 (378 ) 64,717 Equity securities 67,914 25,618 (498 ) 93,034 1,119,756 51,905 (6,244 ) 1,165,417 Held-to-maturity: Japanese government bond securities and other 114,400 25,323 0 139,723 ¥ 1,234,156 ¥ 77,228 ¥ (6,244 ) ¥ 1,305,140 September 30, 2017 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 267,557 ¥ 12,537 ¥ (9 ) ¥ 280,085 Japanese prefectural and foreign municipal bond securities 157,675 3,644 (928 ) 160,391 Corporate debt securities 377,085 3,847 (1,393 ) 379,539 Specified bonds issued by SPEs in Japan 954 9 0 963 CMBS and RMBS in the Americas 80,201 2,866 (611 ) 82,456 Other asset-backed securities and debt securities 75,947 3,395 (117 ) 79,225 Equity securities 61,539 19,455 (1,548 ) 79,446 1,020,958 45,753 (4,606 ) 1,062,105 Held-to-maturity: Japanese government bond securities and other 114,368 25,764 0 140,132 ¥ 1,135,326 ¥ 71,517 ¥ (4,606 ) ¥ 1,202,237 The following tables provide information about available-for-sale March 31, 2017 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese and foreign government bond securities ¥ 33,991 ¥ (826 ) ¥ 0 ¥ 0 ¥ 33,991 ¥ (826 ) Japanese prefectural and foreign municipal bond securities 36,873 (696 ) 6,202 (305 ) 43,075 (1,001 ) Corporate debt securities 152,812 (2,983 ) 0 0 152,812 (2,983 ) CMBS and RMBS in the Americas 20,238 (485 ) 9,428 (73 ) 29,666 (558 ) Other asset-backed securities and debt securities 3,308 (1 ) 3,991 (377 ) 7,299 (378 ) Equity securities 7,645 (480 ) 787 (18 ) 8,432 (498 ) ¥ 254,867 ¥ (5,471 ) ¥ 20,408 ¥ (773 ) ¥ 275,275 ¥ (6,244 ) September 30, 2017 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese and foreign government bond securities ¥ 2,720 ¥ (9 ) ¥ 0 ¥ 0 ¥ 2,720 ¥ (9 ) Japanese prefectural and foreign municipal bond securities 37,579 (842 ) 3,855 (86 ) 41,434 (928 ) Corporate debt securities 124,589 (1,178 ) 19,607 (215 ) 144,196 (1,393 ) CMBS and RMBS in the Americas 10,777 (316 ) 8,235 (295 ) 19,012 (611 ) Other asset-backed securities and debt securities 908 (15 ) 2,515 (102 ) 3,423 (117 ) Equity securities 30,934 (848 ) 7,303 (700 ) 38,237 (1,548 ) ¥ 207,507 ¥ (3,208 ) ¥ ¥ (1,398 ) ¥ 249,022 ¥ ) The number of investment securities that were in an unrealized loss position as of March 31, 2017 and September 30, 2017 were 325 and 322, respectively. The gross unrealized losses on these securities are attributable to a number of factors including changes in interest rates, credit spreads and market trends. For debt securities, in the case of the fair value being below the amortized cost, the Company and its subsidiaries consider whether those securities are other-than-temporarily impaired using all available information about their collectability. The Company and its subsidiaries do not consider a debt security to be other-than-temporarily impaired if (1) the Company and its subsidiaries do not intend to sell the debt security, (2) it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. On the other hand, the Company and its subsidiaries consider a debt security to be other-than-temporarily impaired if any of the above mentioned three conditions are not met. Debt securities with unrealized loss position mainly include corporate debt securities in Japan. The unrealized loss associated with corporate debt securities is primarily due to changes in the market interest rate and risk premium. Considering all available information to assess the collectability of those investments (such as the financial condition of and business prospects for the issuers), the Company and its subsidiaries believe that the Company and its subsidiaries are able to recover the entire amortized cost basis of those investments. Because the Company and its subsidiaries do not intend to sell the investments and it is not more likely than not that the Company and its subsidiaries will be required to sell the investments before recovery of their amortized cost basis, the Company and its subsidiaries do not consider these investments to be other-than-temporarily impaired at September 30, 2017. For equity securities with unrealized losses, the Company and its subsidiaries consider various factors to determine whether the decline is other-than-temporary, including the length of time and the extent to which the fair value has been less than the carrying value and the issuer’s specific economic conditions as well as the ability and intent to hold these securities for a period of time sufficient to recover the securities’ carrying amounts. Based on our ongoing monitoring process, the Company and its subsidiaries do not consider these investments to be other-than-temporarily impaired as of September 30, 2017. The total other-than-temporary impairment with an offset for the amount of the total other-than-temporary impairment recognized in other comprehensive income (loss) for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Total other-than-temporary impairment losses ¥ 6,212 ¥ 423 Portion of loss recognized in other comprehensive income (before taxes) 0 0 Net impairment losses recognized in earnings ¥ 6,212 ¥ 423 The total other-than-temporary impairment with an offset for the amount of the total other-than-temporary impairment recognized in other comprehensive income (loss) for the three months ended September 30, 2016 and 2017 are as follows: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Total other-than-temporary impairment losses ¥ 6,207 ¥ 243 Portion of loss recognized in other comprehensive income (before taxes) 0 0 Net impairment losses recognized in earnings ¥ 6,207 ¥ 243 Total other-than-temporary impairment losses for the six and three months ended September 30, 2016 were related to equity securities and other securities. Total other-than-temporary impairment losses for the six and three months ended September 30, 2017 were related to equity securities and other securities. Roll-forwards of the amount related to credit losses on other-than-temporarily impaired debt securities recognized in earnings for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Beginning balance ¥ 1,413 ¥ 1,220 Reduction during the period : Due to change in intent to sell or requirement to sell (22 ) 0 Ending balance ¥ 1,391 ¥ 1,220 Roll-forwards of the amount related to credit losses on other-than-temporarily impaired debt securities recognized in earnings for the three months ended September 30, 2016 and 2017 are as follows: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Beginning balance ¥ 1,391 ¥ 1,220 Ending balance ¥ 1,391 ¥ 1,220 The Company and its subsidiaries recorded other-than-temporary impairments related to the non-credit |
Securitization Transactions
Securitization Transactions | 6 Months Ended |
Sep. 30, 2017 | |
Securitization Transactions | 7. Securitization Transactions The Company and its subsidiaries have securitized various financial assets such as lease receivables and installment loans (commercial mortgage loans, housing loans and other). In the securitization process, these financial assets are transferred to SPEs, such as trusts and special-purpose companies that issue beneficial interests of the securitization trusts and securities backed by the financial assets to investors. The cash flows collected from these assets transferred to the SPEs are then used to repay these asset-backed beneficial interests and securities. As the transferred assets are isolated from the Company and its subsidiaries, the investors and the SPEs have no recourse to other assets of the Company and its subsidiaries in cases where the debtors or the issuers of the transferred financial assets fail to perform under the original terms of those financial assets. The Company and its subsidiaries often retain interests in the SPEs in the form of the beneficial interest of the securitization trusts. Those interests that continue to be held include interests in the transferred assets and are often subordinate to other tranche(s) of the securitization. Those beneficial interests that continue to be held by the Company and its subsidiaries are subject to credit risk, interest rate risk and prepayment risk on the securitized financial assets. With regards to these subordinated interests that the Company and its subsidiaries retain, they are subordinated to the senior investments and are exposed to different credit and prepayment risks, since they first absorb the risk of the decline in the cash flows from the financial assets transferred to the SPEs for defaults and prepayment of the transferred assets. If there is any excess cash remaining in the SPEs after payment to investors in the securitization of the contractual rate of returns, most of such excess cash is distributed to the Company and its subsidiaries for payments of the subordinated interests. Trusts or SPEs used in securitization transactions have been consolidated if the Company and its subsidiaries are the primary beneficiary of the trusts or SPEs. During the six months ended September 30, 2016 and 2017, there was no securitization transaction accounted for as a sale. Quantitative information about delinquencies, impaired loans and components of financial assets sold on securitization and other assets managed together as of March 31, 2017 and September 30, 2017, and quantitative information about net credit loss for the six and three months ended September 30, 2016 and 2017 are as follows: Millions of yen Total principal amount of receivables Principal amount of receivables that are 90 days or more past-due March 31, 2017 September 30, 2017 March 31, 2017 September 30, 2017 Direct financing leases ¥ 1,204,024 ¥ 1,214,698 ¥ 11,600 ¥ 12,737 Installment loans 2,815,706 2,825,895 68,747 66,009 4,019,730 4,040,593 80,347 78,746 Direct financing leases sold on securitization 0 0 0 0 Total ¥ 4,019,730 ¥ 4,040,593 ¥ 80,347 ¥ 78,746 Millions of yen Credit loss Six months ended Six months ended Three months ended September 30, 2016 Three months ended September 30, 2017 Direct financing leases ¥ 1,787 ¥ 938 ¥ 1,295 ¥ 700 Installment loans 5,925 7,011 3,928 4,159 7,712 7,949 5,223 4,859 Direct financing leases sold on securitization 0 0 0 0 Total ¥ 7,712 ¥ 7,949 ¥ 5,223 ¥ 4,859 A certain subsidiary originates and sells loans into the secondary market while retaining the obligation to service those loans. In addition, it undertakes obligations to service loans originated by others. The servicing assets related to those servicing activities are included in other assets and roll-forwards of the amount of the servicing assets for the six and three months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Three months ended September 30, 2016 Three months ended September 30, 2017 Beginning balance ¥ 16,852 ¥ 17,303 ¥ 15,212 ¥ 17,736 Increase mainly from loans sold with servicing retained 1,781 13,470 1,095 12,132 Decrease mainly from amortization (1,779 ) (1,712 ) (903 ) (835) Increase (Decrease) from the effects of changes in foreign exchange rates (1,718 ) 225 (268 ) 253 Ending balance ¥ 15,136 ¥ 29,286 ¥ 15,136 ¥ 29,286 The fair value of the servicing assets as of March 31, 2017 and September 30, 2017 are as follows: Millions of yen March 31, 2017 September 30, 2017 Beginning balance ¥ 24,229 ¥ 24,907 Ending balance ¥ 24,907 ¥ 36,949 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities | 8. Variable Interest Entities The Company and its subsidiaries use special purpose companies, partnerships and trusts (hereinafter referred to as SPEs) in the ordinary course of business. These SPEs are not always controlled by voting rights, and there are cases where voting rights do not exist for these SPEs. The Company and its subsidiaries determine a variable interest entity (hereinafter referred to as VIE) among those SPEs when (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders or (b) as a group, the holders of the equity investment at risk do not have (1) the ability to make decisions about an entity’s activities that most significantly impact the entity’s economic performance through voting rights or similar rights, (2) the obligation to absorb the expected losses of the entity or (3) the right to receive the expected residual returns of the entity. The Company and its subsidiaries perform a qualitative analysis to identify the primary beneficiary of VIEs. An enterprise that has both of the following characteristics is considered to be the primary beneficiary and therefore results in the consolidation of the VIE: • The power to direct the activities of a VIE that most significantly impact the entity’s economic performance • The obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE All facts and circumstances are taken into consideration when determining whether the Company and its subsidiaries have variable interests that would deem it the primary beneficiary and therefore require consolidation of the VIE. The Company and its subsidiaries make ongoing reassessment of whether they are the primary beneficiaries of a VIE. The following are the items that the Company and its subsidiaries are considering in a qualitative assessment: • Which activities most significantly impact the economic performance of the VIE and who has the power to direct such activities • Characteristics of the Company and its subsidiaries’ variable interest or interests and other involvements (including involvement of related parties and de facto agents) • Involvement of other variable interest holders • The entity’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders The Company and its subsidiaries generally consider the following types of involvement to be significant when determining the primary beneficiary: • Designing the structuring of a transaction • Providing an equity investment and debt financing • Being the investment manager, asset manager or servicer and receiving variable fees • Providing liquidity and other financial support The Company and its subsidiaries do not have the power to direct activities of the VIEs that most significantly impact the VIEs’ economic performance if that power is shared among multiple unrelated parties, and accordingly do not consolidate such VIEs. Information about VIEs (consolidated and non-consolidated) 1. Consolidated VIEs March 31, 2017 Millions of yen Types of VIEs Total assets *1 Total liabilities *1 Assets which are pledged as collateral *2 Commitments *3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 663 0 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 127,425 39,877 75,382 7,000 (d) VIEs for corporate rehabilitation support business 1,544 16 0 0 (e) VIEs for investment in securities 50,411 2,027 5,567 1,995 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 338,138 228,935 307,315 0 (g) VIEs for securitization of loan receivable originated by third parties 18,683 17,202 18,683 0 (h) VIEs for power generation projects 212,153 111,404 127,993 84,227 (i) Other VIEs 202,386 72,447 168,353 0 Total ¥ 951,403 ¥ 471,908 ¥ 703,293 ¥ 93,222 September 30, 2017 Millions of yen Types of VIEs Total assets *1 Total liabilities *1 Assets which are pledged as collateral *2 Commitments *3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 662 0 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 105,913 28,876 54,129 7,000 (d) VIEs for corporate rehabilitation support business 1,685 158 0 0 (e) VIEs for investment in securities 41,061 724 69 2,044 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 144,167 101,991 115,387 0 (g) VIEs for securitization of loan receivable originated by third parties 13,746 14,049 13,746 0 (h) VIEs for power generation projects 221,922 104,421 129,117 92,698 (i) Other VIEs 193,260 71,824 166,360 0 Total ¥ 722,416 ¥ 322,043 ¥ 478,808 ¥ 101,742 *1 The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. *2 The assets are pledged as collateral by VIE for financing of the VIE. *3 This item represents remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. 2. Non-consolidated March 31, 2017 Millions of yen Carrying amount of the variable interests in the VIEs held by the Company and its subsidiaries Types of VIEs Total assets Non-recourse loans Investments Maximum exposure to loss * (a) VIEs for liquidating customer assets ¥ 8,671 ¥ 0 ¥ 991 ¥ 991 (b) VIEs for acquisition of real estate and real estate development projects for customers 96,187 0 11,130 11,194 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 30,299,519 0 80,211 109,310 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,744,471 0 18,448 18,483 (h) VIEs for power generation projects 12,414 0 1,719 3,729 (i) Other VIEs 319,520 4,864 17,963 25,260 Total ¥ 32,480,782 ¥ 4,864 ¥ 130,462 ¥ 168,967 September 30, 2017 Millions of yen Carrying amount of the variable interests in the VIEs held by the Company and its subsidiaries Types of VIEs Total assets Non-recourse loans Investments Maximum exposure to loss * (a) VIEs for liquidating customer assets ¥ 8,660 ¥ 0 ¥ 991 ¥ 991 (b) VIEs for acquisition of real estate and real estate development projects for customers 82,903 0 11,248 11,248 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 30,936,563 0 80,837 108,170 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,432,927 0 17,378 17,405 (h) VIEs for power generation projects 29,257 0 1,871 1,871 (i) Other VIEs 444,597 4,362 29,982 36,790 Total ¥ 32,934,907 ¥ 4,362 ¥ 142,307 ¥ 176,475 * Maximum exposure to loss includes remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. (a) VIEs for liquidating customer assets The Company and its subsidiaries may use VIEs in structuring financing for customers to liquidate specific customer assets. The VIEs are typically used to provide a structure that is bankruptcy remote with respect to the customer and the use of VIE structure is requested by such customer. Such VIEs typically acquire assets to be liquidated from the customer, borrow non-recourse Variable interests of non-consolidated (b) VIEs for acquisition of real estate and real estate development projects for customers Customers and the Company and its subsidiaries are involved with VIEs formed to acquire real estate and/or develop real estate projects. In each case, a customer establishes and makes an equity investment in a VIE that is designed to be bankruptcy remote from the customer. The VIEs acquire real estate and/or develop real estate projects. The Company and its subsidiaries provide non-recourse In the Company’s consolidated balance sheets, assets of consolidated VIEs are mainly included in cash and cash equivalents. With respect to the variable interests of non-consolidated (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business The Company and its subsidiaries establish VIEs and acquire real estate to borrow non-recourse In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in cash and cash equivalents, restricted cash, investment in operating leases, property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in long-term debt. The Company has a commitment agreement by which the Company may be required to make additional investment in certain such consolidated VIEs. (d) VIEs for corporate rehabilitation support business Financial institutions, the Company and its subsidiary are involved with VIEs established for the corporate rehabilitation support business. VIEs receive the funds from investors including the financial institutions, the Company and the subsidiary, and purchase loan receivables due from borrowers which have financial problems, but are deemed to have the potential to recover in the future. The servicing operations for the VIEs are conducted by the subsidiary. The Company and its subsidiary consolidated such VIEs since the Company and the subsidiary have the majority of the investment share of such VIEs, and have the power to direct the activities of the VIEs that most significantly impact the entities’ economic performance through the servicing operations. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in installment loans, and liabilities of those consolidated VIEs are mainly included in other liabilities. (e) VIEs for investment in securities The Company and its subsidiaries have interests in VIEs that are investment funds and mainly invest in equity and debt securities. Such VIEs are managed by certain subsidiaries or fund management companies that are independent of the Company and its subsidiaries. Certain subsidiaries consolidated certain such VIEs since the subsidiaries has the majority of the investment share of them, and has the power to direct the activities of those VIEs that most significantly impact the entities’ economic performance through involvement with the design of the VIEs or other means. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in investment in securities and investment in affiliates, and liabilities of those consolidated VIEs are mainly included in trade notes, accounts and other payable. A subsidiary has a commitment agreement by which the subsidiary may be required to make additional investment in certain such consolidated VIEs. Variable interests of non-consolidated non-consolidated (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable The Company and its subsidiaries use VIEs to securitize financial assets such as direct financing leases receivables and loans receivables. In the securitization process, these financial assets are transferred to SPEs, and the SPEs issue beneficial interests or securities backed by the transferred financial assets to investors. After the securitization, the Company and its subsidiaries continue to hold a subordinated part of the securities and act as a servicer. The Company and its subsidiaries consolidated such VIEs since the Company and its subsidiaries have the power to direct the activities that most significantly impact the entity’s economic performance by designing the securitization scheme and conducting servicing activities, and have a responsibility to absorb losses of the VIEs that could potentially be significant to the entities by retaining the subordinated part of the securities. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are included in restricted cash, investment in direct financing leases and installment loans, and liabilities of those consolidated VIEs are included in long-term debt. (g) VIEs for securitization of loan receivable originated by third parties The Company and its subsidiaries invest in CMBS, RMBS and other asset-backed securities originated by third parties. In some cases of such securitization, certain subsidiaries hold the subordinated portion and the subsidiaries act as a special-servicer of the securitization transaction. As the special servicer, the subsidiaries have rights to dispose of real estate collateral related to the securitized commercial mortgage loans. The subsidiaries consolidate certain of these VIEs when the subsidiaries have the power to direct the activities of the VIEs that most significantly impact the entities’ economic performance through its role as special-servicer, including the right to dispose of the collateral, and have a responsibility to absorb losses of the VIEs that could potentially be significant to the entities by holding the subordinated part of the securities. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in installment loans, and liabilities of those consolidated VIEs are mainly included in long-term debt. Variable interests of non-consolidated non-consolidated (h) VIEs for power generation projects The Company and its subsidiaries may use VIEs in power generation projects. VIEs receive the funds from the Company and its subsidiaries, install solar panels on acquired or leased lands, and sell the generated power to electric power companies. The Company and its subsidiaries have consolidated certain VIEs because the Company and its subsidiaries have the majority of the investment shares of such VIEs and effectively control the VIEs by acting as the asset manager of the VIEs. In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in long-term debt. The Company has commitment agreements by which the Company may be required to make additional investment or execute loans in certain such consolidated VIEs. Variable interests of non-consolidated (i) Other VIEs The Company and its subsidiaries are involved with other types of VIEs for various purposes. Consolidated and non-consolidated In Japan, certain subsidiaries provide investment products to their customers that employ a contractual mechanism known as a kumiai, which in part result in the subsidiaries forming a type of SPE. As a means to finance the purchase of aircraft or other large-ticket items to be leased to third parties, the Company and its subsidiaries arrange and market kumiai products to investors, who invest a portion of the funds necessary into the kumiai structure. The remainder of the purchase funds is borrowed by the kumiai structure in the form of a non-recourse The Company may use VIEs to finance. The Company transfers its own held assets to SPEs, which borrow non-recourse In the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in investment in operating leases, investment in affiliates, office facilities and other assets, and liabilities of those consolidated VIEs are mainly included in long-term debt. Variable interests in non-consolidated non-recourse non-consolidated |
Investment in Affiliates
Investment in Affiliates | 6 Months Ended |
Sep. 30, 2017 | |
Investment in Affiliates | 9. Investment in Affiliates Investment in affiliates at March 31, 2017 and September 30, 2017 consists of the following: Millions of yen March 31, 2017 September 30, 2017 Shares ¥ 485,386 ¥ 539,053 Loans and others 38,848 55,377 ¥ 524,234 ¥ 594,430 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Sep. 30, 2017 | |
Redeemable Noncontrolling Interests | 10. Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Beginning balance ¥ 7,467 ¥ 6,548 Comprehensive income Net income 148 148 Other comprehensive income (loss) Net change of foreign currency translation adjustments (772 ) 34 Total other comprehensive income (loss) (772 ) 34 Comprehensive income (loss) (624 ) 182 Ending balance ¥ 6,843 ¥ 6,730 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) | 11. Accumulated Other Comprehensive Income (Loss) Changes in each component of accumulated other comprehensive income (loss), net of tax for the six months ended September 30, 2016 and 2017, are as follows: Six months ended September 30, 2016 Millions of yen Net unrealized gains (losses) on investment in securities Defined benefit pension plans Foreign currency translation adjustments Net unrealized gains (losses) on derivative instruments Accumulated other comprehensive income (loss) Balance at March 31, 2016 ¥ 47,185 ¥ (23,884 ) ¥ (24,766 ) ¥ (4,757 ) ¥ (6,222 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥(3,157) million 6,936 6,936 Reclassification adjustment included in net income, net of tax of ¥4,068 million (9,789 ) (9,789 ) Defined benefit pension plans, net of tax of ¥(504) million 1,281 1,281 Reclassification adjustment included in net income, net of tax of ¥(77) million 218 218 Foreign currency translation adjustments, net of tax of ¥10,196 million (59,799 ) (59,799 ) Reclassification adjustment included in net income, net of tax of ¥13 million 287 287 Net unrealized gains (losses) on derivative instruments, net of tax of ¥669 million (1,436 ) (1,436 ) Reclassification adjustment included in net income, net of tax of ¥122 million (364 ) (364 ) Total other comprehensive income (loss) (2,853 ) 1,499 (59,512 ) (1,800 ) (62,666 ) Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (55 ) 138 (6,426 ) (87 ) (6,430 ) Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests 0 0 (772 ) 0 (772 ) Balance at September 30, 2016 ¥ 44,387 ¥ (22,523 ) ¥ (77,080 ) ¥ (6,470 ) ¥ (61,686 ) Six months ended September 30, 2017 Millions of yen Net unrealized gains (losses) on investment in securities Defined benefit Foreign currency Net unrealized gains (losses) on instruments Accumulated Balance at March 31, 2017 ¥ 32,279 ¥ (17,330 ) ¥ (31,736 ) ¥ (4,483 ) ¥ (21,270 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥(2,275) million 6,640 6,640 Reclassification adjustment included in net income, net of tax of ¥4,594 million (9,667 ) (9,667 ) Defined benefit pension plans, net of tax of ¥86 million (427 ) (427 ) Reclassification adjustment included in net income, net of tax of ¥5 million (20 ) (20 ) Foreign currency translation adjustments, net of tax of ¥12,032 million 19,830 19,830 Reclassification adjustment included in net income, net of tax of ¥(1,019) million (1,175 ) (1,175 ) Net unrealized gains (losses) on derivative instruments, net of tax of ¥(253) million 805 805 Reclassification adjustment included in net income, net of tax of ¥235 million (729 ) (729 ) Total other comprehensive income (loss) (3,027 ) (447 ) 18,655 76 15,257 Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (65 ) 0 728 4 667 Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 34 0 34 Balance at September 30, 2017 ¥ 29,317 ¥ (17,777 ) ¥ (13,843 ) ¥ (4,411 ) ¥ (6,714 ) Changes in each component of accumulated other comprehensive income (loss), net of tax for the three months ended September 30, 2016 and 2017, are as follows: Three months ended September 30, 2016 Millions of yen Net unrealized gains in securities Defined benefit pension plans Foreign currency translation adjustments Net unrealized gains (losses) on instruments Accumulated other comprehensive income (loss) Balance at June 30, 2016 ¥ 54,013 ¥ (22,704 ) ¥ (60,175 ) ¥ (6,568 ) ¥ (35,434 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥647 million (3,811 ) (3,811 ) Reclassification adjustment included in net income, net of tax of ¥2,202 million (5,814 ) (5,814 ) Defined benefit pension plans, net of tax of ¥(62) million 75 75 Reclassification adjustment included in net income, net of tax of ¥(38) million 127 127 Foreign currency translation adjustments, net of tax of ¥5,047 million (19,262 ) (19,262 ) Reclassification adjustment included in net income, net of tax of ¥(130) million 954 954 Net unrealized gains (losses) on derivative instruments, net of tax of ¥(207) million 404 404 Reclassification adjustment included in net income, net of tax of ¥103 million (272 ) (272 ) Total other comprehensive income (loss) (9,625 ) 202 (18,308 ) 132 (27,599 ) Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest 1 21 (1,282 ) 34 (1,226 ) Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests 0 0 (121 ) 0 (121 ) Balance at September 30, 2016 ¥ 44,387 ¥ (22,523 ) ¥ (77,080 ) ¥ (6,470 ) ¥ (61,686 ) Three months ended September 30, 2017 Millions of yen Net unrealized gains (losses) on investment in securities Defined benefit Foreign currency Net unrealized Accumulated Balance at June 30, 2017 ¥ 30,376 ¥ (17,586 ) ¥ (25,122 ) ¥ (4,352 ) ¥ (16,684 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥(875) million 3,253 3,253 Reclassification adjustment included in net income, net of tax of ¥2,133 million (4,324 ) (4,324 ) Defined benefit pension plans, net of tax of ¥19 million (180 ) (180 ) Reclassification adjustment included in net income, net of tax of ¥2 million (10 ) (10 ) Foreign currency translation adjustments, net of tax of ¥5,413 million 13,041 13,041 Reclassification adjustment included in net income, net of tax of ¥0 million 0 0 Net unrealized gains (losses) on derivative instruments, net of tax of ¥4 million 4 4 Reclassification adjustment included in net income, net of tax of ¥17 million (73 ) (73 ) Total other comprehensive income (loss) (1,071 ) (190 ) 13,041 (69 ) 11,711 Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (12 ) 1 1,717 (10 ) 1,696 Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 45 0 45 Balance at September 30, 2017 ¥ 29,317 ¥ (17,777 ) ¥ (13,843 ) ¥ (4,411 ) ¥ (6,714 ) Amounts reclassified to net income from accumulated other comprehensive income (loss) in the six months ended September 30, 2016 and 2017 are as follows: Six months ended September 30, 2016 Details about accumulated other Reclassification adjustment included in net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 11,596 Gains on investment securities and dividends Sales of investment securities 9,326 Life insurance premiums and related investment income Amortization of investment securities (125 ) Finance revenues Amortization of investment securities (760 ) Life insurance premiums and related investment income Others (6,180 ) Write-downs of securities and other 13,857 Total before tax (4,068 ) Tax expenses or benefits ¥ 9,789 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 511 See Note 14 “Pension Plans” Amortization of net actuarial loss (782 ) See Note 14 “Pension Plans” Amortization of transition obligation (24 ) See Note 14 “Pension Plans” (295 ) Total before tax 77 Tax expenses or benefits ¥ (218 ) Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (274 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (274 ) Total before tax (13 ) Tax expenses or benefits ¥ (287 ) Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 1 Finance revenues/Interest expense Foreign exchange contracts (32 ) Other (income) and expense, net Foreign currency swap agreements 517 Finance revenues/Interest expense/ Other (income) and expense, net 486 Total before tax (122 ) Tax expenses or benefits ¥ 364 Net of tax Six months ended September 30, 2017 Details about accumulated other comprehensive income components Reclassification net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 11,272 Gains on investment securities and dividends Sales of investment securities 3,502 Life insurance premiums and related investment income Amortization of investment securities (109 ) Finance revenues Amortization of investment securities (275 ) Life insurance premiums and related investment income Others (129 ) Write-downs of securities and other 14,261 Total before tax (4,594 ) Tax expenses or benefits ¥ 9,667 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 497 See Note 14 “Pension Plans” Amortization of net actuarial loss (447 ) See Note 14 “Pension Plans” Amortization of transition obligation (25 ) See Note 14 “Pension Plans” 25 Total before tax (5 ) Tax expenses or benefits ¥ 20 Net of tax Foreign currency translation adjustments Sales or liquidation ¥ 156 Gains on sales of subsidiaries and affiliates and liquidation losses, net 156 Total before tax 1,019 Tax expenses or benefits ¥ 1,175 Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 118 Finance revenues/Interest expense Foreign exchange contracts (2 ) Other (income) and expense, net Foreign currency swap agreements 848 Finance revenues/Interest expense/ Other (income) and expense, net 964 Total before tax (235 ) Tax expenses or benefits ¥ 729 Net of tax Amounts reclassified to net income from accumulated other comprehensive income (loss) in the three months ended September 30, 2016 and 2017 are as follows: Three months ended September 30, 2016 Details about accumulated other comprehensive income components Reclassification adjustment included in net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 8,410 Gains on investment securities and dividends Sales of investment securities 6,187 Life insurance premiums and related investment income Amortization of investment securities (24 ) Finance revenues Amortization of investment securities (379 ) Life insurance premiums and related investment income Others (6,178 ) Write-downs of securities and other 8,016 Total before tax (2,202 ) Tax expenses or benefits ¥ 5,814 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 255 See Note 14 “Pension Plans” Amortization of net actuarial loss (408 ) See Note 14 “Pension Plans” Amortization of transition obligation (12 ) See Note 14 “Pension Plans” (165 ) Total before tax 38 Tax expenses or benefits ¥ (127 ) Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (1,084 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (1,084 ) Total before tax 130 Tax expenses or benefits ¥ (954 ) Net of tax Net unrealized gains (losses) on derivative instruments Foreign exchange contracts ¥ (19 ) Other (income) and expense, net Foreign currency swap agreements 394 Finance revenues/Interest expense/ Other (income) and expense, net 375 Total before tax (103 ) Tax expenses or benefits ¥ 272 Net of tax Three months ended September 30, 2017 Details about accumulated other Reclassification net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 6,131 Gains on investment securities and dividends Sales of investment securities 660 Life insurance premiums and related investment income Amortization of investment securities (199 ) Finance revenues Amortization of investment securities (135 ) Life insurance premiums and related investment income 6,457 Total before tax (2,133 ) Tax expenses or benefits ¥ 4,324 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 249 See Note 14 “Pension Plans” Amortization of net actuarial loss (224 ) See Note 14 “Pension Plans” Amortization of transition obligation (13 ) See Note 14 “Pension Plans” 12 Total before tax (2 ) Tax expenses or benefits ¥ 10 Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 2 Finance revenues/Interest expense Foreign currency swap agreements 88 Finance revenues/Interest expense/ Other (income) and expense, net 90 Total before tax (17 ) Tax expenses or benefits ¥ 73 Net of tax |
ORIX Corporation Shareholders'
ORIX Corporation Shareholders' Equity | 6 Months Ended |
Sep. 30, 2017 | |
ORIX Corporation Shareholders' Equity | 12. ORIX Corporation Shareholders’ Equity Information about ORIX Corporation Shareholders’ Equity for the six months ended September 30, 2016 and 2017 are as follows: (1) Dividend payments Six months ended September 30, 2016 Six months ended September 30, 2017 Resolution The board of directors on May 23, 2016 The board of directors on May 23, 2017 Type of shares Common stock Common stock Total dividends paid ¥31,141 million ¥38,162 million Dividend per share ¥23.75 ¥29.25 Date of record for dividend March 31, 2016 March 31, 2017 Effective date for dividend June 1, 2016 June 6, 2017 Dividend resource Retained earnings Retained earnings Total dividends paid include ¥40 million of dividends paid to the Board Incentive Plan Trust for the six months ended September 30, 2016. Total dividends paid include ¥62 million of dividends paid to the Board Incentive Plan Trust for the six months ended September 30, 2017. (2) Applicable dividends for which the date of record was in the six months ended September 30, 2016 and 2017, and for which the effective date was after September 30, 2016 and 2017. Six months ended September 30, 2016 Six months ended September 30, 2017 Resolution The board of directors on October 26, 2016 The board of directors on October 30, 2017 Type of shares Common stock Common stock Total dividends paid ¥30,157 million ¥34,595 million Dividend per share ¥23.00 ¥27.00 Date of record for dividend September 30, 2016 September 30, 2017 Effective date for dividend December 2, 2016 December 4, 2017 Dividend resource Retained earnings Retained earnings Total dividends to be paid include ¥57 million of dividends to be paid to the Board Incentive Plan Trust for the six months ended September 30, 2016. Total dividends to be paid include ¥53 million of dividends to be paid to the Board Incentive Plan Trust for the six months ended September 30, 2017. |
Selling, General and Administra
Selling, General and Administrative Expenses | 6 Months Ended |
Sep. 30, 2017 | |
Selling, General and Administrative Expenses | 13. Selling, General and Administrative Expenses Selling, general and administrative expenses for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Personnel expenses ¥ 117,968 ¥ 119,164 Selling expenses 35,104 36,378 Administrative expenses 48,093 51,288 Depreciation of office facilities 2,534 2,469 Total ¥ 203,699 ¥ 209,299 Selling, general and administrative expenses for the three months ended September 30, 2016 and 2017 are as follows: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Personnel expenses ¥ 57,873 ¥ 57,890 Selling expenses 18,332 19,058 Administrative expenses 23,585 25,133 Depreciation of office facilities 1,307 1,256 Total ¥ 101,097 ¥ 103,337 |
Pension Plans
Pension Plans | 6 Months Ended |
Sep. 30, 2017 | |
Pension Plans | 14. Pension Plans The Company and certain subsidiaries have contributory and non-contributory lump-sum The Company and its subsidiaries’ funding policy is to contribute annually the amounts actuarially determined. Assets of the plans are invested primarily in interest-bearing securities and marketable equity securities. Net pension cost of the plans for the six months ended September 30, 2016 and 2017 consists of the following: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Japanese plans: Service cost ¥ 2,556 ¥ 2,649 Interest cost 338 388 Expected return on plan assets (1,269 ) (1,313 ) Amortization of prior service credit (463 ) (457 ) Amortization of net actuarial loss 473 428 Amortization of transition obligation 22 23 Net periodic pension cost ¥ 1,657 ¥ 1,718 Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Overseas plans: Service cost ¥ 1,627 ¥ 1,605 Interest cost 880 952 Expected return on plan assets (1,788 ) (2,037 ) Amortization of prior service credit (48 ) (40 ) Amortization of net actuarial loss 309 19 Amortization of transition obligation 2 2 Net periodic pension cost ¥ 982 ¥ 501 Net pension cost of the plans for the three months ended September 30, 2016 and 2017 consists of the following: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Japanese plans: Service cost ¥ 1,279 ¥ 1,325 Interest cost 169 194 Expected return on plan assets (635 ) (656 ) Amortization of prior service credit (232 ) (228 ) Amortization of net actuarial loss 237 214 Amortization of transition obligation 11 12 Net periodic pension cost ¥ 829 ¥ 861 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Overseas plans: Service cost ¥ 795 ¥ 768 Interest cost 424 487 Expected return on plan assets (869 ) (1,044 ) Amortization of prior service credit (23 ) (21 ) Amortization of net actuarial loss 171 10 Amortization of transition obligation 1 1 Net periodic pension cost ¥ 499 ¥ 201 |
Life Insurance Operations
Life Insurance Operations | 6 Months Ended |
Sep. 30, 2017 | |
Life Insurance Operations | 15. Life Insurance Operations Life insurance premiums and related investment income for the six and three months ended September 30, 2016 and 2017 consist of the following: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Life insurance premiums ¥ 114,750 ¥ 142,495 Life insurance related investment income 986 38,715 ¥ 115,736 ¥ 181,210 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Life insurance premiums ¥ 59,492 ¥ 71,122 Life insurance related investment income 19,472 16,434 ¥ 78,964 ¥ 87,556 Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For the six and three months ended September 30, 2016 and 2017, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Reinsurance benefits ¥ 1,497 ¥ 1,870 Reinsurance premiums (5,098 ) (3,763 ) Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Reinsurance benefits ¥ 862 ¥ 850 Reinsurance premiums (2,534 ) (1,813 ) The benefits and expenses of life insurance operations included in life insurance costs in the consolidated statements of income are recognized so as to associate with earned premiums over the life of contracts. This association is accomplished by means of the provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs (principally commissions and certain other expenses directly relating to policy issuance and underwriting). Amortization charged to income for the six months ended September 30, 2016 and 2017 amounted to ¥6,653 million and ¥7,747 million, respectively. In addition, amortization charged to income for the three months ended September 30, 2016 and 2017 amounted to ¥3,444 million and ¥3,840 million, respectively. Life insurance premiums and related investment income include net realized and unrealized gains or losses from investment assets under management on behalf of variable annuity and variable life policyholders and, net gains or losses from derivative contracts, which consist of gains or losses from futures, foreign exchange contracts and options held, entered to economically hedge a portion of the minimum guarantee risk relating to variable annuity and variable life insurance contracts. In addition, life insurance costs include the net amount of the changes in fair value of the variable annuity and variable life insurance contracts elected for the fair value option and insurance costs recognized for insurance and annuity payouts as a result of insured events. Certain subsidiaries have elected the fair value option for certain reinsurance contracts to partially offset the changes in fair value recognized in earnings of the policy liabilities and policy account balances attributable to the changes in the minimum guarantee risks of the variable annuity and variable life insurance contracts, and the changes in the fair value of the reinsurance contracts were recorded in life insurance costs. The above mentioned gains or losses relating to variable annuity and variable life insurance contracts for the six and three months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Life insurance premiums and related investment income : Net realized and unrealized gains or losses from investment assets ¥ (12,624 ) ¥ 37,141 Net gains or losses from derivative contracts : 256 (5,949 ) Futures (2,117 ) (4,453 ) Foreign exchange contracts 1,902 (584 ) Options held 471 (912 ) Life insurance costs : Changes in the fair value of the policy liabilities and policy account balances ¥ (79,567 ) ¥ (88,501 ) Insurance costs recognized for insurance and annuity payouts as a result of insured events 63,022 104,399 Changes in the fair value of the reinsurance contracts 301 6,874 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Life insurance premiums and related investment income : Net realized and unrealized gains or losses from investment assets ¥ 15,605 ¥ 16,014 Net gains or losses from derivative contracts : (4,877 ) (2,416 ) Futures (4,234 ) (1,826 ) Foreign exchange contracts 231 (262 ) Options held (874 ) (328 ) Life insurance costs : Changes in the fair value of the policy liabilities and policy account balances ¥ (35,481 ) ¥ (40,895 ) Insurance costs recognized for insurance and annuity payouts as a result of insured events 33,573 47,955 Changes in the fair value of the reinsurance contracts 7,663 2,828 |
Write-Downs of Long-Lived Asset
Write-Downs of Long-Lived Assets | 6 Months Ended |
Sep. 30, 2017 | |
Write-Downs of Long-Lived Assets | 16. Write-Downs of Long-Lived Assets The Company and its subsidiaries perform tests for recoverability on long-lived assets classified as held and used for which events or changes in circumstances indicated that the assets might be impaired. The Company and its subsidiaries consider an asset’s carrying amount as not recoverable when such carrying amount exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. The net carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount. As of March 31, 2017 and September 30, 2017, the long-lived assets classified as held for sale in the accompanying consolidated balance sheets are as follows. Millions of yen As of March 31, 2017 As of September 30, 2017 Investment in operating leases ¥ 32,283 ¥ 34,964 Property under facility operations 1,977 0 Other assets 2,508 0 The long-lived assets classified as held for sale as of March 31, 2017 are included in Corporate Financial Services segment, Maintenance Leasing segment, Real Estate segment, Investment and Operation segment and Overseas Business segment. The long-lived assets classified as held for sale as of September 30, 2017 are included in Maintenance Leasing segment, Real Estate segment, Investment and Operation segment and Overseas Business segment. The Company and its subsidiaries determine the fair value using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers, based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. For the six months ended September 30, 2016 and 2017, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥1,409 million and ¥1,472 million, respectively, which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows. Six months ended September 30, 2016 Six months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs of the assets held for sale: Office buildings ¥ 0 0 ¥ 0 0 Commercial facilities other than office buildings 236 1 977 1 Condominiums 317 1 0 0 Others * 18 — 200 — Total ¥ 571 — ¥ 1,177 — * For the “Others,” the number of properties are omitted. Six months ended September 30, 2016 Six months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs due to decline in estimated future cash flows: Office buildings ¥ 758 3 ¥ 0 0 Commercial facilities other than office buildings 0 0 187 2 Condominiums 69 1 0 0 Others * 11 — 108 — Total ¥ 838 — ¥ 295 — * For the “Others,” the number of properties are omitted. Losses of ¥622 million in Real Estate segment, ¥11 million in Investment and Operation segment and ¥519 million in Overseas Business segment were recorded for the six months ended September 30, 2016. A loss of ¥1,472 million in Real Estate segment was recorded for the six months ended September 30, 2017. For the three months ended September 30, 2016 and 2017, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥845 million and ¥387 million, respectively, which were reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows. Three months ended September 30, 2016 Three months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs of the assets held for sale: Office buildings ¥ 0 0 ¥ 0 0 Commercial facilities other than office buildings 0 0 0 0 Condominiums 0 0 0 0 Others * 18 — 200 — Total ¥ 18 — ¥ 200 — * For the “Others,” the number of properties are omitted. Three months ended September 30, 2016 Three months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs Office buildings ¥ 758 3 ¥ 0 0 Commercial facilities other than office buildings 0 0 187 2 Condominiums 69 1 0 0 Others * 0 — 0 — Total ¥ 827 — ¥ 187 — * For the “Others,” the number of properties are omitted. Losses of ¥69 million in Real Estate segment and ¥519 million in Overseas Business segment were recorded for the three months ended September 30, 2016. Losses of ¥387 million in Real Estate segment were recorded for the three months ended September 30, 2017. |
Per Share Data
Per Share Data | 6 Months Ended |
Sep. 30, 2017 | |
Per Share Data | 17. Per Share Data Reconciliation of the differences between basic and diluted earnings per share (EPS) in the six and three months ended September 30, 2016 and 2017 is as follows: During the six months ended September 30, 2016, the diluted EPS calculation excludes stock options for 2,739 thousand shares, as they were antidilutive. During the six months ended September 30, 2017, the diluted EPS calculation excludes stock options for 356 thousand shares, as they were antidilutive. During the three months ended September 30, 2016, the diluted EPS calculation excludes stock options for 1,801 thousand shares, as they were antidilutive. During the three months ended September 30, 2017, there were no stock options which were antidilutive. Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Net Income attributable to ORIX Corporation Shareholders ¥ 142,150 ¥ 165,970 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Net Income attributable to ORIX Corporation Shareholders ¥ 65,381 ¥ 76,258 Thousands of Shares Six months ended September 30, 2016 Six months ended September 30, 2017 Weighted-average shares 1,309,302 1,282,567 Effect of dilutive securities— Exercise of stock options 1,171 1,178 Weighted-average shares for diluted EPS computation 1,310,473 1,283,745 Thousands of Shares Three months ended September 30, 2016 Three months ended September 30, 2017 Weighted-average shares 1,309,143 1,279,276 Effect of dilutive securities— Exercise of stock options 1,227 1,277 Weighted-average shares for diluted EPS computation 1,310,370 1,280,553 Yen Six months ended September 30, 2016 Six months ended September 30, 2017 Earnings per share for net income attributable to ORIX Corporation shareholders: Basic ¥ 108.57 ¥ 129.40 Diluted ¥ 108.47 ¥ 129.29 Yen Three months ended September 30, 2016 Three months ended September 30, 2017 Earnings per share for net income attributable to ORIX Corporation shareholders: Basic ¥ 49.94 ¥ 59.61 Diluted ¥ 49.89 ¥ 59.55 Note: The Company’s shares held through the Board Incentive Plan Trust are included in the number of treasury stock shares to be deducted in calculation of the weighted-average shares for EPS computation. (1,907,951 and 2,055,862 shares for the six months ended September 30, 2016 and 2017, 2,066,751 and 2,003,201 shares for the three months ended September 30, 2016 and 2017) |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 6 Months Ended |
Sep. 30, 2017 | |
Derivative Financial Instruments and Hedging | 18. Derivative Financial Instruments and Hedging Risk management policy The Company and its subsidiaries manage interest rate risk through asset-liability management (“ALM”). The Company and its subsidiaries use derivative financial instruments to hedge interest rate risk and avoid changes in interest rates that could have a significant adverse effect on the Company’s results of operations. As a result of interest rate changes, the fair value and/or cash flow of interest sensitive assets and liabilities will fluctuate. However, such fluctuation will generally be offset by using derivative financial instruments as hedging instruments. Derivative financial instruments that the Company and its subsidiaries use as part of the interest risk management include interest rate swaps. The Company and its subsidiaries utilize foreign currency borrowings, foreign exchange contracts and foreign currency swap agreements to hedge exchange rate risk that are associated with certain transactions and investments denominated in foreign currencies. Similarly, overseas subsidiaries generally structure their liabilities to match the currency-denomination of assets in each region. A certain subsidiary holds option agreements, futures and foreign exchange contracts for the purpose of economic hedges against minimum guarantee risk of variable annuity and variable life insurance contracts. By using derivative instruments, the Company and its subsidiaries are exposed to credit risk in the event of nonperformance by counterparties. The Company and its subsidiaries attempt to manage the credit risk by carefully evaluating the content of transactions and the quality of counterparties in advance and regularly monitoring the amount of notional principal, fair value, type of transaction and other factors pertaining to each counterparty. The Company and its subsidiaries have no derivative instruments with credit-risk-related contingent features as of March 31, 2017 and September 30, 2017. (a) Cash flow hedges The Company and its subsidiaries designate interest rate swap agreements, foreign currency swap agreements and foreign exchange contracts as cash flow hedges for variability of cash flows originating from floating rate borrowings and forecasted transactions and for exchange fluctuations. (b) Fair value hedges The Company and its subsidiaries use financial instruments designated as fair value hedges to hedge their exposure to interest rate risk and foreign currency exchange risk. The Company and its subsidiaries designate foreign currency swap agreements and foreign exchange contracts to minimize foreign currency exposures on lease receivables, loan receivables, borrowings and others denominated in foreign currency. The Company and its subsidiaries designate interest rate swap to hedge interest rate exposure of the fair values of loan receivables. The Company and certain overseas subsidiaries, which issued medium-term notes or bonds with fixed interest rates, use interest rate swap agreements to hedge interest rate exposure of the fair values of these medium-term notes or bonds. In cases where the medium-term notes were denominated in other than the subsidiaries’ local currencies, foreign currency swap agreements are used to hedge foreign exchange rate exposure. A certain overseas subsidiary uses foreign currency long-term-debt to hedge foreign exchange rate exposure from unrecognized firm commitment. (c) Hedges of net investment in foreign operations The Company uses foreign exchange contracts and borrowings and bonds denominated in the subsidiaries’ local currencies to hedge the foreign currency exposure of the net investment in overseas subsidiaries. (d) Derivatives not designated as hedging instruments The Company and its subsidiaries entered into interest rate swap agreements, futures and foreign exchange contracts for risk management purposes which are not qualified for hedge accounting. A certain subsidiary holds option agreements, futures and foreign exchange contracts for the purpose of economic hedges against minimum guarantee risk of variable annuity and variable life insurance contracts. The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (894 ) Finance revenues/Interest expense ¥ 1 — ¥ 0 Foreign exchange contracts 827 Other (income) and expense, net (32 ) — 0 Foreign currency swap agreements (2,038 ) Finance revenues/Interest expense/ Other (income) and expense, net 517 Other (income) and expense, net 51 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (28 ) Finance revenues/Interest expense ¥ 28 Finance revenues/Interest expense Foreign exchange contracts 18,927 Other (income) and expense, net (18,927 ) Other (income) and expense, net Foreign currency swap agreements 1,476 Other (income) and expense, net (1,476 ) Other (income) and expense, net Foreign currency long-term debt 56 Other (income) and expense, net (56 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ 46,415 Gains on sales of subsidiaries and ¥ 257 — ¥ 0 Borrowings and bonds in local currency 23,439 — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (85 ) Other (income) and expense, net Futures (2,082 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts 27,780 Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (25 ) Other (income) and expense, net Options held/written and other 405 Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the six months ended September 30, 2016 (see Note 15 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (185 ) Finance revenues/Interest expense ¥ 118 — ¥ 0 Foreign exchange contracts (188 ) Other (income) and expense, net (2 ) — 0 Foreign currency swap agreements 1,432 Finance revenues/Interest expense/Other (income) and expense, net 848 Other (income) and expense, net (111 ) (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (13 ) Finance revenues/Interest expense ¥ 13 Finance revenues/Interest expense Foreign exchange contracts (3,125 ) Other (income) and expense, net 3,125 Other (income) and expense, net Foreign currency swap agreements 990 Other (income) and expense, net (990 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ (23,576 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ (3,705 ) — ¥ 0 Borrowings and bonds in local currency (10,197 ) — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 698 Other (income) and expense, net Futures (2,511 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts (14,377 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (26 ) Other (income) and expense, net Options held/written and other 266 Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the six months ended September 30, 2017 (see Note 15 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ 1,317 — ¥ 0 — ¥ 0 Foreign exchange contracts 63 Other (income) and expense, net (19 ) — 0 Foreign currency swap agreements (769 ) Finance revenues/Interest expense /Other (income) and expense, net 394 Other (income) and expense, net 68 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (15 ) Finance revenues/Interest expense ¥ 15 Finance revenues/Interest expense Foreign exchange contracts 2,248 Other (income) and expense, net (2,248 ) Other (income) and expense, net Foreign currency swap agreements (1,556 ) Other (income) and expense, net 1,555 Other (income) and expense, net Foreign currency long-term debt (22 ) Other (income) and expense, net 22 Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ 5,536 Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ (194 ) — ¥ 0 Borrowings and bonds in local currency 2,620 — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 9 Other (income) and expense, net Futures (4,110 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts 5,617 Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (48 ) Other (income) and expense, net Options held/written and other (920 ) Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the three months ended September 30, 2016 (see Note 15 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ 22 Finance revenues/Interest expense ¥ 2 — ¥ 0 Foreign exchange contracts (54 ) — 0 — 0 Foreign currency swap agreements 33 Finance revenues/Interest expense/ Other (income) and expense, net 88 Other (income) and expense, net (33 ) (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 0 — ¥ 0 — Foreign exchange contracts (1,633 ) Other (income) and expense, net 1,633 Other (income) and expense, net Foreign currency swap agreements 210 Other (income) and expense, net (210 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ (8,011 ) — ¥ 0 — ¥ 0 Borrowings and bonds in local currency (4,707 ) — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 396 Other (income) and expense, net Futures 13 Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts (11,664 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (12 ) Other (income) and expense, net Options held/written and other 929 Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the three months ended September 30, 2017 (see Note 15 “Life Insurance Operations”). Notional amounts of derivative instruments and other, fair values of derivative instruments and other before offsetting at March 31, 2017 and September 30, 2017 are as follows. March 31, 2017 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance sheets location Fair value Consolidated balance sheets location Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 243,197 ¥ 71 Other Assets ¥ 4,391 Other Liabilities Futures, foreign exchange contracts 745,481 6,373 Other Assets 8,021 Other Liabilities Foreign currency swap agreements 74,482 4,545 Other Assets 1,677 Other Liabilities Foreign currency long-term debt 280,266 0 — 0 — Derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 8,258 ¥ 233 Other Assets ¥ 176 Other Liabilities Options held/written and other * 224,064 5,804 Other Assets 1,071 Other Liabilities Futures, foreign exchange contracts * 565,981 5,973 Other Assets 800 Other Liabilities Credit derivatives held 6,942 0 — 159 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥46,063 million, futures contracts of ¥52,791 million and foreign exchange contracts of ¥16,690 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2017, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥1,708 million, ¥694 million and ¥57 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥37 million and ¥45 million at March 31, 2017, respectively. September 30, 2017 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance Fair value Consolidated balance Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 238,751 ¥ 61 Other Assets ¥ 4,469 Other Liabilities Futures, foreign exchange contracts 584,683 835 Other Assets 11,554 Other Liabilities Foreign currency swap agreements 91,154 3,737 Other Assets 1,020 Other Liabilities Foreign currency long-term debt 354,105 0 — 0 — Derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 18,468 ¥ 163 Other Assets ¥ 82 Other Liabilities Options held/written and other * 384,367 6,743 Other Assets 1,833 Other Liabilities Futures, foreign exchange contracts * 411,124 359 Other Assets 14,506 Other Liabilities Credit derivatives held 5,783 0 — 130 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥42,006 million, futures contracts of ¥41,440 million and foreign exchange contracts of ¥13,533 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at September 30, 2017, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥776 million, ¥67 million and ¥18 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥1,917 million and ¥314 million at September 30, 2017, respectively. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 6 Months Ended |
Sep. 30, 2017 | |
Offsetting Assets and Liabilities | 19. Offsetting Assets and Liabilities The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheets regarding to derivative assets and liabilities and other assets and liabilities as of March 31, 2017 and September 30, 2017 are as follows. March 31, 2017 Millions of yen Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Gross amounts not offset in the Net amount Financial instruments Collateral received/pledged Derivative assets ¥ 22,999 ¥ (4,019 ) ¥ 18,980 ¥ 0 ¥ (3,132 ) ¥ 15,848 Reverse repurchase, securities borrowing, and similar arrangements *2 3,582 (3,503 ) 79 0 0 79 Total assets ¥ 26,581 ¥ (7,522 ) ¥ 19,059 ¥ 0 ¥ (3,132 ) ¥ 15,927 Derivative liabilities ¥ 16,295 ¥ (4,019 ) ¥ 12,276 ¥ (1,105 ) ¥ (398 ) ¥ 10,773 Repurchase, securities lending, and similar arrangements *2 3,503 (3,503 ) 0 0 0 0 Total liabilities ¥ 19,798 ¥ (7,522 ) ¥ 12,276 ¥ (1,105 ) ¥ (398 ) ¥ 10,773 September 30, 2017 Millions of yen Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Gross amounts not offset in the Net amount Financial instruments Collateral received/pledged Derivative assets ¥ 11,898 ¥ (1,109 ) ¥ 10,789 ¥ (732 ) ¥ 0 ¥ 10,057 Reverse repurchase, securities borrowing, and similar arrangements *2 1,168 (1,168 ) 0 0 0 0 Total assets ¥ 13,066 ¥ (2,277 ) ¥ 10,789 ¥ (732 ) ¥ 0 ¥ 10,057 Derivative liabilities ¥ 33,594 ¥ (1,109 ) ¥ 32,485 ¥ (1,532 ) ¥ (2,807 ) ¥ 28,146 Repurchase, securities lending, and similar arrangements *2 1,176 (1,168 ) 8 0 0 8 Total liabilities ¥ 34,770 ¥ (2,277 ) ¥ 32,493 ¥ (1,532 ) ¥ (2,807 ) ¥ 28,154 *1 The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. *2 Reverse repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Estimated Fair Value of Financi
Estimated Fair Value of Financial Instruments | 6 Months Ended |
Sep. 30, 2017 | |
Estimated Fair Value of Financial Instruments | 20. Estimated Fair Value of Financial Instruments The following information is provided to help readers gain an understanding of the relationship between carrying amount of financial instruments reported in the Company’s consolidated balance sheets and the related market or fair value. For derivative financial instruments, see Note 3 “Fair Value Measurements.” The disclosures do not include investment in direct financing leases, investment in affiliates, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts. March 31, 2017 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 569,074 ¥ 569,074 ¥ 37,500 ¥ 531,574 ¥ 0 Cash and cash equivalents 1,039,870 1,039,870 1,039,870 0 0 Restricted cash 93,342 93,342 93,342 0 0 Installment loans (net of allowance for probable loan losses) 2,767,016 2,783,466 0 254,708 2,528,758 Investment in securities: Practicable to estimate fair value 1,307,618 1,332,941 93,995 1,086,629 152,317 Not practicable to estimate fair value *1 149,820 149,820 0 0 0 Other Assets: Time deposits 9,375 9,375 0 9,375 0 Derivative assets *2 18,980 18,980 0 0 0 Reinsurance recoverables (Investment contracts) 72,615 73,967 0 0 73,967 Liabilities: Short-term debt ¥ 283,467 ¥ 283,467 ¥ 0 ¥ 283,467 ¥ 0 Deposits 1,614,608 1,615,655 0 1,615,655 0 Policy liabilities and Policy account balances (Investment contracts) 287,463 288,372 0 0 288,372 Long-term debt 3,854,984 3,862,815 0 1,184,261 2,678,554 Other Liabilities: Derivative liabilities *2 12,276 12,276 0 0 0 *1 The fair value of investment securities of ¥149,820 million was not estimated, as it was not practical. *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, 2017 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 487,839 ¥ 487,839 ¥ 40,177 ¥ 447,662 ¥ 0 Cash and cash equivalents 1,185,961 1,185,961 1,185,961 0 0 Restricted cash 88,242 88,242 88,242 0 0 Installment loans (net of allowance for probable loan losses) 2,778,817 2,812,435 0 156,826 2,655,609 Investment in securities: Practicable to estimate fair value 1,212,124 1,237,888 75,834 994,613 167,441 Not practicable to estimate fair value *1 149,370 149,370 0 0 0 Other Assets: Time deposits 3,246 3,246 0 3,246 0 Derivative assets *2 10,789 10,789 0 0 0 Reinsurance recoverables (Investment contracts) 72,060 73,328 0 0 73,328 Liabilities: Short-term debt ¥ 335,665 ¥ 335,665 ¥ 0 ¥ 335,665 ¥ 0 Deposits 1,698,428 1,700,247 0 1,700,247 0 Policy liabilities and Policy account balances (Investment contracts) 295,490 296,250 0 0 296,250 Long-term debt 3,867,551 3,870,833 0 1,134,558 2,736,275 Other Liabilities: Derivative liabilities *2 32,485 32,485 0 0 0 *1 The fair value of investment securities of ¥149,370 million was not estimated, as it was not practical. *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. Estimation of fair value The following methods and significant assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate a value: Cash and cash equivalents, restricted cash, time deposits and short-term debt— Installment loans— Investment in securities — available-for-sale available-for-sale held-to-maturity non-marketable Deposits— Long-term debt— medium-and Derivatives— Reinsurance recoverables and Policy liabilities and Policy account balances— |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingent Liabilities | 6 Months Ended |
Sep. 30, 2017 | |
Commitments, Guarantees and Contingent Liabilities | 21. Commitments, Guarantees and Contingent Liabilities Commitments The minimum future rentals on non-cancelable Millions of yen March 31, 2017 September 30, 2017 Within one year ¥ 6,713 ¥ 7,625 More than one year 57,805 59,313 Total ¥ 64,518 ¥ 66,938 The Company and certain subsidiaries lease office space under operating lease agreements, which are primarily cancelable, and made rental payments totaling ¥6,780 million and ¥7,211 million for the six months ended September 30, 2016 and 2017, respectively, and ¥3,392 million and ¥3,556 million for the three months ended September 30, 2016 and 2017, respectively. Certain computer systems of the Company and certain subsidiaries have been operated and maintained under non-cancelable Millions of yen March 31, 2017 September 30, 2017 Within one year ¥ 5,255 ¥ 4,984 More than one year 9,142 7,839 Total ¥ 14,397 ¥ 12,823 The Company and certain subsidiaries have commitments to fund estimated construction costs to complete ongoing real estate development projects and other commitments, totaling ¥88,447 million and ¥79,706 million as of March 31, 2017 and September 30, 2017, respectively. The Company and certain subsidiaries have agreements to commit to execute loans for customers, and to invest in funds, as long as the agreed-upon terms are met. The total unused credit and capital amount available are ¥333,540 million and ¥315,167 million as of March 31, 2017 and September 30, 2017, respectively. Guarantees March 31, 2017 September 30, 2017 Millions of yen Fiscal year Millions of yen Fiscal year Guarantees Potential future payment Book value of guarantee liabilities Maturity of the longest contract Potential future payment Book value of guarantee liabilities Maturity of the longest contract Corporate loans ¥ 451,597 ¥ 7,274 2024 ¥ 489,575 ¥ 7,208 2025 Transferred loans 167,799 1,300 2047 167,806 1,306 2048 Consumer loans 249,719 29,641 2018 281,054 33,066 2028 Housing loans 26,448 5,362 2048 19,176 5,224 2048 Other 935 307 2025 6,413 322 2025 Total ¥ 896,498 ¥ 43,884 — ¥ 964,024 ¥ 47,126 — Guarantee of corporate loans: Payment or performance risk of the guarantees is considered based on the historical experience of credit events. There have been no significant changes in the payment or performance risk of the guarantees for the six months ended September 30, 2017. Guarantee of transferred loans: In return for the delegated authority, the subsidiary guarantees the performance of certain housing loans transferred to Fannie Mae and has the payment or performance risk of the guarantees to absorb some of the losses when losses arise from the transferred loans. There were no significant changes in the payment or performance risk of these guarantees for the six months ended September 30, 2017. Guarantee of consumer loans: Payment or performance risk of the guarantees is considered based on the historical experience of credit events. There were no significant changes in the payment or performance risk of the guarantees for the six months ended September 30, 2017. Guarantee of housing loans: Payment or performance risk of the guarantees is considered based on the historical experience of credit events. There were no significant changes in the payment or performance risk of the guarantees for the six months ended September 30, 2017. Other guarantees: Litigation— Collateral— Millions of yen March 31, 2017 September 30, 2017 Minimum lease payments, loans and investment in operating leases ¥ 102,339 ¥ 71,533 Investment in securities 172,084 185,417 Property under facility operations 7,532 9,324 Other assets and other 17,643 21,551 Total ¥ 299,598 ¥ 287,825 As of March 31, 2017 and September 30, 2017, debt liabilities were secured by shares of subsidiaries, which were eliminated through consolidation adjustment, of ¥38,562 million and ¥30,420 million, respectively, and debt liabilities of affiliates were secured by investment in affiliates of ¥37,013 million and ¥35,355 million, respectively. In addition, ¥40,290 million and ¥40,711 million, respectively, were pledged primarily by investment in securities for collateral deposits, deposit for real estate transaction, and assets for liquidation of future rent as of March 31, 2017 and September 30, 2017. Under loan agreements relating to short-term and long-term debt from commercial banks and certain insurance companies, the Company and certain subsidiaries are required to provide collateral against these debts at anytime if requested by the lenders. The Company and the subsidiaries did not receive any such requests from the lenders as of September 30, 2017. |
Segment Information
Segment Information | 6 Months Ended |
Sep. 30, 2017 | |
Segment Information | 22. Segment Information Financial information about the operating segments reported below is that which is available by segment and evaluated regularly by the management in deciding how to allocate resources and in assessing performance. An overview of operations for each of the six segments follows below. Corporate Financial Services : Loan, leasing and fee business Maintenance Leasing : Automobile leasing and rentals, car-sharing, IT-related Real Estate : Real estate development and rental, facility operation, REIT asset management, and real estate investment and advisory services Investment and Operation : Environment and energy, principal investment, loan servicing (asset recovery), and concession Retail : Life insurance, banking and card loan Overseas Business : Leasing, loan, bond investment, asset management and aircraft and ship-related operations Financial information of the segments for the six months ended September 30, 2016 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 51,995 ¥ 134,820 ¥ 104,084 ¥ 539,042 ¥ 151,095 ¥ 240,643 ¥ 1,221,679 Segment profits 19,874 19,655 35,447 52,041 35,507 51,510 214,034 Financial information of the segments for the six months ended September 30, 2017 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 53,983 ¥ 137,048 ¥ 95,755 ¥ 774,421 ¥ 219,505 ¥ 238,641 ¥ 1,519,353 Segment profits 22,049 20,438 43,991 38,927 42,950 81,397 249,752 Financial information of the segments for the three months ended September 30, 2016 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 27,005 ¥ 67,621 ¥ 46,746 ¥ 281,040 ¥ 97,089 ¥ 114,822 ¥ 634,323 Segment profits 11,380 9,763 11,844 21,086 22,975 21,644 98,692 Financial information of the segments for the three months ended September 30, 2017 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 28,566 ¥ 68,760 ¥ 49,235 ¥ 351,894 ¥ 106,908 ¥ 122,815 ¥ 728,178 Segment profits 11,824 10,544 11,158 22,270 20,936 38,527 115,259 Segment assets information as of March 31, 2017 and September 30, 2017 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total March 31, 2017 ¥ 1,032,152 ¥ 752,513 ¥ 657,701 ¥ 768,675 ¥ 3,291,631 ¥ 2,454,200 ¥8,956,872 September 30, 2017 1,001,476 782,512 628,885 863,640 3,209,131 2,630,516 9,116,160 The accounting policies of the segments are almost the same as those described in Note 2 “Significant Accounting and Reporting Policies” except for the treatment of income tax expenses, net income attributable to the noncontrolling interests, net income attributable to the redeemable noncontrolling interests, and the consolidation of certain variable interest entities (VIEs). Income taxes are not included in segment profits or losses because the management evaluates segments’ performance on a pre-tax (per-tax) Assets attributed to each segment are investment in direct financing leases, installment loans, investment in operating leases, investment in securities, property under facility operations, investment in affiliates, inventories, advances for investment in operating leases (included in other assets), advances for investment in property under facility operations (included in other assets) and goodwill and other intangible assets recognized as a result of business combination (included in other assets) and servicing assets (included in other assets). This has resulted in the depreciation of office facilities being included in each segment’s profit or loss while the carrying amounts of corresponding assets are not allocated to each segment’s assets. However, the effect resulting from this allocation is not significant. For those VIEs that are used for securitization and are consolidated, for which the VIE’s assets can be used only to settle related obligations of those VIEs and the creditors (or beneficial interest holders) do not have recourse to other assets of the Company or its subsidiaries, segment assets are measured based on the amount of the Company and its subsidiaries’ net investments in the VIEs, which is different from the amount of total assets of the VIEs, and accordingly, segment revenues are also measured at a net amount representing the revenues earned on the net investments in the VIEs. Certain gains or losses related to assets and liabilities of consolidated VIEs, which are not ultimately attributable to the Company and its subsidiaries, are excluded from segment profits. The reconciliation of segment totals to consolidated financial statement amounts is as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Segment revenues: Total revenues for segments ¥ 1,221,679 ¥ 1,519,353 Revenues related to corporate assets 6,967 6,949 Revenues related to assets of certain VIEs 2,231 1,838 Revenues from inter-segment transactions (9,752 ) (10,344 ) Total consolidated revenues ¥ 1,221,125 ¥ 1,517,796 Segment profits: Total profits for segments ¥ 214,034 ¥ 249,752 Corporate gains (losses) 307 (569 ) Gains (losses) related to assets or liabilities of certain VIEs 105 (2 ) Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests 4,789 3,431 Total consolidated income before income taxes ¥ 219,235 ¥ 252,612 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Segment revenues: Total revenues for segments ¥ 634,323 ¥ 728,178 Revenues related to corporate assets 2,666 2,850 Revenues related to assets of certain VIEs 1,161 505 Revenues from inter-segment transactions (4,970 ) (6,034 ) Total consolidated revenues ¥ 633,180 ¥ 725,499 Segment profits: Total profits for segments ¥ 98,692 ¥ 115,259 Corporate gains (losses) (192 ) (529 ) Gains related to assets or liabilities of certain VIEs 155 69 Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests 2,146 2,202 Total consolidated income before income taxes ¥ 100,801 ¥ 117,001 Millions of yen March 31, 2017 September 30, 2017 Segment assets: Total assets for segments ¥ 8,956,872 ¥ 9,116,160 Cash and cash equivalents, restricted cash 1,133,212 1,274,203 Allowance for doubtful receivables on direct financing leases and probable loan losses (59,227 ) (57,976 ) Trade notes, accounts and other receivable 283,427 276,278 Other corporate assets 672,562 702,238 Assets of certain VIEs 245,049 115,133 Total consolidated assets ¥ 11,231,895 ¥ 11,426,036 The following information represents geographical revenues and income before income taxes, which are attributed to geographic areas, based on the country location of the Company and its subsidiaries. For the six months ended September 30, 2016 Millions of yen Six Months Ended September 30, 2016 Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 967,471 ¥ 87,298 ¥ 166,356 ¥ 1,221,125 Income before Income Taxes 166,471 16,032 36,732 219,235 For the six months ended September 30, 2017 Millions of yen Six Months Ended September 30, 2017 Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 1,270,724 ¥ 57,546 ¥ 189,526 ¥ 1,517,796 Income before Income Taxes 168,992 26,893 56,727 252,612 For the three months ended September 30, 2016 Millions of yen Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 511,782 ¥ 41,917 ¥ 79,481 ¥ 633,180 Income before Income Taxes * 78,786 6,369 15,646 100,801 For the three months ended September 30, 2017 Millions of yen Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 600,013 ¥ 27,688 ¥ 97,798 ¥ 725,499 Income before Income Taxes * 76,594 14,473 25,934 117,001 *1 Mainly the United States *2 Mainly Asia, Europe, Australasia and Middle East *3 Robeco, one of the Company’s subsidiaries domiciled in the Netherlands, conducts principally an asset management business. Due to the integrated nature of such business with its customer base spread across the world, “Other” locations include the total revenues and the income before income taxes of Robeco for the six and three months ended September 30, 2016 and 2017, respectively. The revenues of Robeco aggregated on a legal entity basis were ¥47,184 million in the Americas and ¥36,867 million in Other for the six months ended September 30, 2016, and ¥50,433 million in the Americas and ¥40,320 million in Other for the six months ended September 30, 2017, and ¥22,787 million in the Americas and ¥17,095 million in Other for the three months ended September 30, 2016, and ¥25,263 million in the Americas and ¥21,111 million in Other for the three months ended September 30, 2017. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2017 | |
Subsequent Events | 23. Subsequent Events The Board of Directors of DAIKYO INCORPORATED, a consolidated subsidiary of the Company, has, pursuant to Article 37 of its Articles of Incorporation, in accordance with Article 459, paragraph 1 of the Companies Act, passed the following resolutions with regard to the matters provided in Article 156, paragraph 1 of the Companies Act concerning the acquisition of treasury stock at the Meeting of the Board of Directors held on October 26, 2017. (1) Reason for Treasury Stock Acquisition To strengthen shareholder returns and increase capital efficiency (2) Details of Treasury Stock Acquisition • Type of shares to be acquired: Common shares • Total number of shares: Up to 4,100,000 shares • Total amount of shares to be acquired: Up to ¥8.5 billion • Period of acquisition: From October 27, 2017 to October 26, 2018 • Method of acquisition: Market purchases on the Tokyo Stock Exchange |
Significant Accounting and Re31
Significant Accounting and Reporting Policies (Policies) | 6 Months Ended |
Sep. 30, 2017 | |
Principles of consolidation | (a) Principles of consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Investments in affiliates, where the Company has the ability to exercise significant influence by way of 20% – 50% ownership or other means, are accounted for by using the equity method. Where the Company holds majority voting interests but noncontrolling shareholders have substantive participating rights to decisions that occur as part of the ordinary course of their business, the equity method is applied. In addition, the consolidated financial statements also include variable interest entities to which the Company and its subsidiaries are primary beneficiaries. A lag period of up to three months is used on a consistent basis for recognizing the results of certain subsidiaries and affiliates. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company has identified ten areas where it believes assumptions and estimates are particularly critical to the financial statements. The Company makes estimates and assumptions to the selection of valuation techniques and determination of assumptions used in fair value measurements, the determination and periodic reassessment of the unguaranteed residual value for direct financing leases and operating leases, the determination and reassessment of insurance policy liabilities and deferred policy acquisition costs, the determination of the allowance for doubtful receivables on direct financing leases and probable loan losses, the recognition and measurement of impairment of long-lived assets, the recognition and measurement of impairment of investment in securities, the determination of the valuation allowance for deferred tax assets and the evaluation of tax positions, the assessment and measurement of effectiveness in hedging relationship using derivative financial instruments, the determination of benefit obligation and net periodic pension cost and the recognition and measurement of impairment of goodwill and intangible assets that have indefinite useful lives. |
Foreign currencies translation | (c) Foreign currencies translation The Company and its subsidiaries maintain their accounting records in their functional currency. Transactions in foreign currencies are recorded in the entity’s functional currency based on the prevailing exchange rates on the transaction date. The financial statements of overseas subsidiaries and affiliates are translated into Japanese yen by applying the exchange rates in effect at the end of each fiscal year to all assets and liabilities. Income and expenses are translated at the average rates of exchange prevailing during the fiscal year. The currencies in which the operations of the overseas subsidiaries and affiliates are conducted are regarded as the functional currencies of these companies. Foreign currency translation adjustments reflected in other comprehensive income (loss) arise from the translation of foreign currency financial statements into Japanese yen. |
Revenue recognition | (d) Revenue recognition Revenues are recognized when persuasive evidence of an arrangement exists, the service has been rendered or the goods have been delivered to the customer, the transaction price is fixed or determinable and collectability is reasonably assured. In addition to the aforementioned general policy, the policies as specifically described hereinafter are applied for each of the major revenue items. Finance Revenues (1) Revenues from direct financing leases Direct financing leases consist of full-payout leases for various equipment types, including office equipment, industrial machinery and transportation equipment. In providing leasing services, the Company and its subsidiaries execute supplemental services, such as paying insurance and handling taxes on leased assets on behalf of lessees. The excess of aggregate lease rentals plus the estimated unguaranteed residual value over the cost of the leased equipment constitutes the unearned lease income to be taken into income over the lease term by using the interest method. The estimated unguaranteed residual value represents estimated proceeds from the disposition of equipment at the time the lease is terminated. The estimated unguaranteed residual value is based on market value of used equipment, estimates of when and how much equipment will become obsolete, and actual recovery being experienced for similar used equipment. Initial direct costs are being deferred and amortized as a yield adjustment over the life of the related lease by using interest method. The unamortized balance of initial direct costs is reflected as a component of investment in direct financing leases. (2) Revenues from installment loans Interest income on installment loans is recognized on an accrual basis. Certain direct loan origination costs, net of origination fees, are being deferred and amortized over the contractual term of the loan as an adjustment of the related loan’s yield using the interest method. Interest payments received on impaired loans other than purchased loans are recorded as interest income unless the collection of the remaining investment is doubtful at which time payments received are recorded as reductions of principal. For purchased loans, although the acquired assets may remain loans in legal form, collections on these loans often do not reflect the normal historical experience of collecting delinquent accounts, and the need to tailor individual collateral-realization strategies often makes it difficult to reliably estimate the amount, timing, or nature of collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans regardless of whether impairment is recognized or not. (3) Non-accrual In common with all classes, past-due past-due past-due past-due past-due past-due non-accrual non-accrual Gains on investment securities and dividends — Operating leases — Estimates of residual values are based on market values of used equipment, estimates of when and the extent to which equipment will become obsolete and actual recovery being experienced for similar used equipment. Sales of goods and real estate— (1) Sales of goods The Company and its subsidiaries sell to their customers various types of goods, including precious metals and jewels. Revenues from such sales of goods are recognized when persuasive evidence of an arrangement exists, delivery has occurred, and collectability is reasonably assured. Delivery is considered to have occurred when the customer has taken title to the goods and assumed the risks and rewards of ownership. Revenues are recognized net of estimated sales returns and incentives. (2) Real estate sales Revenues from the sales of real estate are recognized when a contract is in place, a closing has taken place, the buyer’s initial and continuing investment is adequate to demonstrate a commitment to pay for the property and the Company and its subsidiaries do not have a substantial continuing involvement in the property. Services income — (1) Revenues from asset management and servicing The Company and its subsidiaries provide to our customers investment management services for investments in financial assets, and asset management as well as maintenance and administrative services for investments in real estate properties. The Company and its subsidiaries also perform servicing on behalf of our customers. The Company and its subsidiaries receive fees for those services from our customers. Revenues from asset management and servicing primarily include management fees, servicing fees, and performance fees. Management and servicing fees are recognized when transactions occur or services are rendered and the amounts are fixed or determinable and collectability of which is reasonably assured. Management fees are calculated based on the predetermined percentages of the market value of the assets under management or net assets of the investment funds in accordance with contracts. Certain subsidiaries recognize revenues from performance fees when earned based on the performance of the asset under management while other subsidiaries recognize revenues from performance fees on an accrual basis over the period in which services are performed. Performance fees are calculated based on the predetermined percentages on the performance of the assets under management in accordance with the contracts. (2) Revenues from automobile maintenance services The Company and its subsidiaries provide automobile maintenance services to lessees. Where under terms of the lease or related maintenance agreements the Company and its subsidiaries bear the favorable or unfavorable variability of cost, revenues and expenses are recorded on a gross basis. For those arrangements in which the Company and its subsidiaries do not have substantial risks and rewards of ownership, but instead serve as an agent in collecting from lessees and remitting payments to third parties, the Company and its subsidiaries record revenues net of third-party services costs. Revenues from automobile maintenance services are recognized over the contract period in proportion to the estimated service costs to be incurred. |
Insurance and reinsurance transactions | (e) Insurance and reinsurance transactions Premium income from life insurance policies, net of premiums on reinsurance ceded, is recognized as earned premiums when due. Life insurance benefits are recorded as expenses when they are incurred. Policy liabilities and policy account balances for future policy benefits are measured using the net level premium method, based on actuarial estimates of the amount of future policyholder benefits. The policies are characterized as long-duration policies and mainly consist of whole life, term life, endowments, medical insurance and individual annuity insurance contracts. For policies other than individual annuity insurance contracts, computation of policy liabilities necessarily includes assumptions about mortality, morbidity, lapse rates, future yields on related investments and other factors applicable at the time the policies are written. A certain subsidiary continually evaluates the potential for changes in the estimates and assumptions applied in determining policy liabilities, both positive and negative and uses the results of these evaluations both to adjust recorded liabilities and to adjust underwriting criteria and product offerings. The insurance contracts sold by the subsidiary also include variable annuity, variable life and fixed annuity insurance contracts. The subsidiary manages investment assets on behalf of variable annuity and variable life policyholders, which consist of equity securities and are included in investments in securities in the consolidated balance sheets. These investment assets are measured at fair value with realized and unrealized gains or losses recognized in life insurance premiums and related investment income in the consolidated statements of income. The subsidiary elected the fair value option for the entire variable annuity and variable life insurance contracts with changes in the fair value recognized in life insurance costs. The subsidiary provides minimum guarantees to variable annuity and variable life policyholders under which it is exposed to the risk of compensating losses incurred by the policyholders to the extent contractually required. To mitigate the risk, a portion of the minimum guarantee risk related to variable annuity and variable life insurance contracts is ceded to reinsurance companies and the remaining risk is economically hedged by entering into derivative contracts. The reinsurance contracts do not relieve the subsidiary from the obligation as the primary obligor to compensate certain losses incurred by the policyholders, and the default of the reinsurance companies may impose additional losses on the subsidiary. Certain subsidiaries have elected the fair value option for certain reinsurance contracts relating to variable annuity and variable life insurance contracts, which is included in other assets in the consolidated balance sheets. Policy liabilities and policy account balances for fixed annuity insurance contracts are measured based on the single-premiums plus interest based on expected rate and fair value adjustments relating to the acquisition of a subsidiary, less withdrawals, expenses and other charges. The credited interest is recorded in life insurance costs in the consolidated statements of income. Certain costs related directly to the successful acquisition of new or renewal insurance contracts, or deferred policy acquisition costs, are deferred and amortized over the respective policy periods in proportion to anticipated premium revenue. These deferred policy acquisition costs consist primarily of first-year commissions, except for recurring policy maintenance costs and certain variable costs and expenses for underwriting policies. |
Allowance for doubtful receivables on direct financing leases and probable loan losses | (f) Allowance for doubtful receivables on direct financing leases and probable loan losses The allowance for doubtful receivables on direct financing leases and probable loan losses is maintained at a level which, in the judgment of management, is appropriate to provide for probable losses inherent in lease and loan portfolios. The allowance is increased by provision charged to income and is decreased by charge-offs, net of recoveries. Developing the allowance for doubtful receivables on direct financing leases and probable loan losses is subject to numerous estimates and judgments. In evaluating the appropriateness of the allowance, management considers various factors, including the business characteristics and financial conditions of the obligors, current economic conditions and trends, prior charge-off non-impaired charge-off charge-off The Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal considering debtors’ creditworthiness and the liquidation status of collateral. |
Impairment of long-lived assets | (g) Impairment of long-lived assets The Company and its subsidiaries perform a recoverability test for long-lived assets to be held and used in operations, including tangible assets and intangible assets being amortized, consisting primarily of office buildings, condominiums, golf courses and other properties under facility operations, whenever events or changes in circumstances indicated that the assets might be impaired. The assets are considered not recoverable when the undiscounted future cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount. The Company and its subsidiaries determine the fair value using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers based on recent transactions involving sales of similar assets or other valuation techniques such as discounted cash flows methodologies using future cash flows estimated to be generated from operation of the existing assets or completion of development projects, as appropriate. |
Investment in securities | (h) Investment in securities Trading securities are reported at fair value with unrealized gains and losses included in income. Available-for-sale Held-to-maturity Other securities are recorded at cost or carrying value that reflects equity income and loss based on the Company’s share, except investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option. For available-for-sale For debt securities, where the fair value is less than the amortized cost, the Company and its subsidiaries consider whether those securities are other-than-temporarily impaired using all available information about their collectability. The Company and its subsidiaries do not consider a debt security to be other-than-temporarily impaired if (1) the Company and its subsidiaries do not intend to sell the debt security, (2) it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. On the other hand, the Company and its subsidiaries consider a debt security to be other-than-temporarily impaired if any of the above mentioned three conditions are not met. When the Company and its subsidiaries deem a debt security to be other-than-temporarily impaired, the Company and its subsidiaries recognize the entire difference between the amortized cost and the fair value of the debt securities in earnings if the Company and its subsidiaries intend to sell the debt security or it is more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss. However, if the Company and its subsidiaries do not intend to sell the debt security and it is not more likely than not that the Company and its subsidiaries will be required to sell the debt security before recovery of its amortized cost basis less any current-period credit loss, the Company and its subsidiaries separate the difference between the amortized cost and the fair value of the debt securities into the credit loss component and the non-credit non-credit For other securities, when the Company and its subsidiaries determine the decline in value is other than temporary, the Company and its subsidiaries reduce the carrying value of the security to the fair value and charge against income losses related to these other securities. |
Income taxes | (i) Income taxes The Company, in general, determines its provision for income taxes for quarterly periods by applying the current estimate of the effective tax rate for the full fiscal year to the actual year-to-date At the fiscal year end, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if, based on the weight of available evidence, it is “more likely than not” that some portion or all of the deferred tax asset will not be realized. The effective income tax rates for the six months ended September 30, 2016 and 2017 were 33.0% and 32.9%, respectively. These rates are 33.0% and 32.9% for the three months ended September 30, 2016 and 2017, respectively. For the six and three months ended September 30, 2016 and 2017, the Company and its subsidiaries in Japan were subject to a National Corporate tax of approximately 24%, an Inhabitant tax of approximately 4% and a deductible Enterprise tax of approximately 4%, which in the aggregate result in a statutory income tax rate of approximately 31.7%. The effective income tax rate is different from the statutory tax rate primarily because of certain nondeductible expenses for tax purposes, non-taxable The Company and its subsidiaries file tax returns in Japan and certain foreign tax jurisdictions and recognize the financial statement effects of a tax position taken or expected to be taken in a tax return when it is more likely than not, based on the technical merits, that the position will be sustained upon tax examination, including resolution of any related appeals or litigation processes, and measure tax positions that meet the recognition threshold at the largest amount of tax benefit that is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company and its subsidiaries present an unrecognized tax benefit as either a reduction of a deferred tax asset, a reduction of an amount refundable or a liability, based on the intended method of settlement. The Company and its subsidiaries classify penalties and interest expense related to income taxes as part of provision for income taxes in the consolidated statements of income. The Company and certain subsidiaries have elected to file a consolidated tax return for National Corporation tax purposes. |
Securitized assets | (j) Securitized assets The Company and its subsidiaries have securitized and sold to investors various financial assets such as lease receivables and loan receivables. In the securitization process, the assets to be securitized are sold to trusts or SPEs that issue asset-backed beneficial interests and securities to the investors. Trusts or SPEs used in securitization transactions are consolidated if the Company and its subsidiaries are the primary beneficiary of the trusts or SPEs, and the transfers of the financial assets to those consolidated trusts and SPEs are not accounted for as sales. Assets held by consolidated trusts or consolidated SPEs continue to be accounted for as lease receivables or loan receivables, as they were before the transfer, and asset-backed beneficial interests and securities issued to the investors are accounted for as debt. When the Company and its subsidiaries have transferred financial assets to a transferee that is not subject to consolidation, the Company and its subsidiaries account for the transfer as a sale if control over the transferred assets is surrendered. A certain subsidiary originates and sells loans into the secondary market, while retaining the obligation to service those loans. In addition, it undertakes obligations to service loans originated by others. The subsidiary recognizes servicing assets if it expects the benefit of servicing to more than adequately compensate it for performing the servicing or recognizes servicing liabilities if it expects the benefit of servicing to less than adequately compensate it. These servicing assets and liabilities are initially recognized at fair value and subsequently accounted for using the amortization method whereby the assets and liabilities are amortized in proportion to and over the period of estimated net servicing income or net servicing loss. On a quarterly basis, servicing assets and liabilities are evaluated for impairment or increased obligations. The fair value of servicing assets and liabilities is estimated using an internal valuation model, or by obtaining an opinion of value from an independent third-party vendor. Both methods are based on calculating the present value of estimated future net servicing cash flows, taking into consideration discount rates, prepayments and servicing costs. The internal valuation model is validated at least semiannually through third-party valuations. |
Derivative financial instruments | (k) Derivative financial instruments The Company and its subsidiaries recognize all derivatives on the consolidated balance sheets at fair value. The accounting treatment of subsequent changes in the fair value depends on their use, and whether they qualify as effective “hedges” for accounting purposes. Derivatives for the purpose of economic hedge that are not qualified for hedge accounting are adjusted to fair value through the consolidated statements of income. If a derivative is a hedge, then depending on its nature, changes in its fair value will be either offset against change in the fair value of hedged assets or liabilities through the consolidated statements of income, or recorded in other comprehensive income (loss). If a derivative is held as a hedge of the variability of fair value related to a recognized asset or liability or an unrecognized firm commitment (“fair value” hedge), changes in the fair value of the derivative are recorded in earnings along with the changes in the fair value of the hedged item. If a derivative is held as a hedge of the variability of cash flows related to a forecasted transaction or a recognized asset or liability (“cash flow” hedge), changes in the fair value of the derivative are recorded in other comprehensive income (loss) to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. If a derivative is held as a hedge of a foreign-currency fair-value or cash-flow hedge (“foreign currency” hedge), changes in the fair value of the derivative are recorded in either earnings or other comprehensive income (loss), depending on whether the hedged transaction is a fair-value hedge or a cash-flow hedge. However, if a derivative is used as a hedge of a net investment in a foreign operation, changes in its fair value, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within other comprehensive income (loss). The ineffective portion of changes in fair value of derivatives that qualify as a hedge are recorded in earnings. For all hedging relationships that are designated and qualify as hedging, at inception the Company and its subsidiaries formally document the details of the hedging relationship and the hedged activity. The Company and its subsidiaries also formally assess, both at the hedge’s inception and on an ongoing basis, the effectiveness of the hedge relationship. The Company and its subsidiaries cease hedge accounting prospectively when the derivative no longer qualifies for hedge accounting. |
Pension plans | (l) Pension plans The Company and certain subsidiaries have contributory and non-contributory The Company and its subsidiaries also recognize the funded status of pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, on the consolidated balance sheets. Changes in that funded status are recognized in the year in which the changes occur through other comprehensive income (loss), net of applicable income taxes. |
Stock-based compensation | (m) Stock-based compensation The Company and its subsidiaries measure stock-based compensation expense as consideration for services provided by employees based on the fair value of the grant date. The costs are recognized over the requisite service period. |
Stock splits | (n) Stock splits Stock splits implemented prior to October 1, 2001 had been accounted for by transferring an amount equivalent to the par value of the shares from additional paid-in As a result of a revision to the Code before amendment effective on October 1, 2001 and the Companies Act implemented on May 1, 2006, the above-mentioned method of accounting required by the Code became unnecessary. In the United States, stock splits in comparable circumstances are considered to be stock dividends and are accounted for by transferring from retained earnings to common stock and additional paid-in paid-in paid-in |
Cash and cash equivalents | (o) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits placed with banks and short-term highly liquid investments with original maturities of three months or less. |
Restricted cash | (p) Restricted cash Restricted cash consists of trust accounts under securitization programs and real estate, deposits related to servicing agreements, deposits collected on the underlying assets and applied to non-recourse |
Installment loans | (q) Installment loans Certain loans, for which the Company and its subsidiaries have the intent and ability to sell to outside parties in the foreseeable future, are considered held for sale and are carried at the lower of cost or market value determined on an individual basis, except loans held for sale for which the fair value option was elected. A subsidiary elected the fair value option on its loans held for sale originated on or after October 1, 2011. The subsidiary enters into forward sale agreements to offset the change in the fair value of loans held for sale, and the election of the fair value option allows the subsidiary to recognize both the change in the fair value of the loans and the change in the fair value of the forward sale agreements due to changes in interest rates in the same accounting period. Loans held for sale are included in installment loans, and the outstanding balances of these loans as of March 31, 2017 and September 30, 2017 were ¥22,548 million and ¥55,481 million, respectively. There were ¥19,232 million and ¥14,735 million of loans held for sale as of March 31, 2017 and September 30, 2017, respectively, measured at fair value by electing the fair value option. |
Property under facility operations | (r) Property under facility operations Property under facility operations consist primarily of operating facilities (including golf courses, hotels, training facilities and senior housings) and environmental assets (including mega solar), which are stated at cost less accumulated depreciation, and depreciation is calculated mainly on a straight-line basis over the estimated useful lives of the assets. Accumulated depreciation was ¥85,255 million and ¥96,531 million as of March 31, 2017 and September 30, 2017, respectively. |
Trade notes, accounts and other receivable | (s) Trade notes, accounts and other receivable Trade notes, accounts and other receivable primarily include accounts receivables in relation to sales of assets to be leased, inventories and other assets and payment made on behalf of lessees for property tax, maintenance fees and insurance premiums in relation to direct financing lease contracts. |
Inventories | (t) Inventories Inventories consist primarily of residential condominiums under development, completed residential condominiums (including those waiting to be delivered to buyers under the contract for sale), and merchandise for sale. Residential condominiums under development are carried at cost less any impairment losses, and completed residential condominiums and merchandises for sale are stated at the lower of cost or fair value less cost to sell. The cost of inventories that are unique and not interchangeable is determined on the specific identification method and the cost of other inventories is principally determined on the average method. As of March 31, 2017 and September 30, 2017, residential condominiums under development were ¥60,920 million and ¥75,270 million, respectively, and completed residential condominiums and merchandises for sale were ¥56,943 million and ¥54,612 million, respectively. The company and its subsidiaries recorded ¥636 million and ¥88 million of write-downs principally on completed residential condominiums and merchandise for sale for the six months ended September 30, 2016 and 2017, respectively, primarily resulting from a decrease in expected sales price. The amounts of such write-downs for the three months ended September 30, 2016 and 2017 were ¥587 million and ¥64 million, respectively. These write-downs were recorded in costs of goods and real estate sold and principally included in the Investment and Operation segment. |
Office facilities | (u) Office facilities Office facilities are stated at cost less accumulated depreciation. Depreciation is calculated on a declining-balance basis or straight-line basis over the estimated useful lives of the assets. Accumulated depreciation was ¥47,534 million and ¥50,630 million as of March 31, 2017 and September 30, 2017, respectively. |
Other assets | (v) Other assets Other assets consist primarily of the excess of purchase prices over the net assets acquired in acquisitions (goodwill) and other intangible assets, reinsurance recoverables in relation to reinsurance contracts, deferred insurance policy acquisition costs which are amortized over the contract periods, leasehold deposits, advance payments made in relation to purchases of assets to be leased and construction of real estate for operating lease, prepaid benefit cost, derivative assets and deferred tax assets. |
Goodwill and other intangible assets | (w) Goodwill and other intangible assets The Company and its subsidiaries account for all business combinations using the acquisition method. The Company and its subsidiaries recognize intangible assets acquired in a business combination apart from goodwill if the intangible assets meet one of two criteria—either the contractual-legal criterion or the separately identifiable criterion. Goodwill is measured as an excess of the aggregate of consideration transferred and the fair value of noncontrolling interests over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed in the business combination measured at fair value. The Company and its subsidiaries would recognize a bargain purchase gain when the amount of recognized net assets exceeds the sum of consideration transferred and the fair value of noncontrolling interests. In a business combination achieved in stages, the Company and its subsidiaries remeasure their previously held equity interest at their acquisition-date fair value and recognize the resulting gain or loss, if any, in earnings. The Company and its subsidiaries perform an impairment test for goodwill and any intangible assets that have indefinite useful lives at least annually. Additionally, if events or changes in circumstances indicate that the asset might be impaired, the Company and its subsidiaries test for impairment when such events or changes occur. The Company and its subsidiaries have the option to perform a qualitative assessment to determine whether to calculate the fair value of a reporting unit under the first step of the two-step two-step two-step two-step The Company and its subsidiaries have the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. The Company and its subsidiaries perform the qualitative assessment for some indefinite-lived intangible assets but bypass the qualitative assessment and perform the quantitative assessment for other indefinite-lived intangible assets. For those indefinite-lived assets for which the qualitative assessment is performed, if, after assessing the totality of events and circumstances, the Company and/or subsidiaries conclude that it is not more likely than not that the indefinite-lived asset is impaired, then the Company and/or subsidiaries do not perform the quantitative impairment test. However, if the Company and/or subsidiaries conclude otherwise or determine to bypass the qualitative assessment, the Company and/or subsidiaries calculate the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Intangible assets with finite lives are amortized over their useful lives and tested for impairment. The Company and its subsidiaries perform a recoverability test for the intangible assets whenever events or changes in circumstances indicate that the assets might be impaired. The intangible assets are considered not recoverable when the undiscounted future cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net carrying amount of assets not recoverable is reduced to fair value if lower than the carrying amount. The amount of goodwill was ¥341,178 million and ¥390,736 million as of March 31, 2017 and September 30, 2017, respectively. The amount of other intangible assets was ¥396,051 million and ¥419,806 million as of March 31, 2017 and September 30, 2017, respectively. |
Trade notes, accounts and other payable | (x) Trade notes, accounts and other payable Trade notes, accounts and other payable include primarily accounts payable in relation to purchase of assets to be leased, merchandise for sale and other assets, accounts payable in relation to construction work of residential condominiums and deposits received mainly for withholding income tax. |
Other Liabilities | (y) Other Liabilities Other liabilities include primarily interest, bonus accrued expense and accrued benefit liability, advances received from lessees in relation to lease contracts, deposit received from real estate transaction and derivative liabilities. |
Capitalization of interest costs | (z) Capitalization of interest costs The Company and its subsidiaries capitalized interest costs related to specific long-term development projects. |
Advertising | (aa) Advertising The costs of advertising are expensed as incurred. |
Earnings per share | (ab) Earnings per share Basic earnings per share is computed by dividing net income attributable to ORIX Corporation shareholders by the weighted average number of shares of outstanding common stock in each period. Diluted earnings per share is calculated by reflecting the potential dilution that could occur if securities or other contracts issuing common stock were exercised or converted into common stock. |
Additional acquisition and partial sale of the parent's ownership interest in subsidiaries | (ac) Additional acquisition and partial sale of the parent’s ownership interest in subsidiaries Additional acquisition of the parent’s ownership interest in subsidiaries and partial sale of such interest where the parent continues to retain control of the subsidiary are accounted for as equity transactions. On the other hand, in a transaction that results in the loss of control, the gain or loss recognized in income includes the realized gain or loss related to the portion of ownership interest sold and the gain or loss on the remeasurement to fair value of the interest retained. |
Redeemable noncontrolling interests | (ad) Redeemable noncontrolling interests Noncontrolling interests in a certain subsidiary are redeemable preferred shares which are subject to call and put rights upon certain shareholder events. As redemption of the noncontrolling interest is not solely in the control of the subsidiary, it is recorded between liabilities and equity on the consolidated balance sheets at its estimated redemption value. |
Issuance of stock by an affiliate | (ae) Issuance of stock by an affiliate When an affiliate issues stocks to unrelated third parties, the Company and its subsidiaries’ ownership interest in the affiliate decreases. In the event that the price per share is more or less than the Company and its subsidiaries’ average carrying amount per share, the Company and its subsidiaries adjust the carrying amount of its investment in the affiliate and recognize gain or loss in the consolidated statements of income in the year in which the change in ownership interest occurs. |
New accounting pronouncements | (af) New accounting pronouncements In May 2014, Accounting Standards Update 2014-09 • Identify the contract(s) with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations in the contract • Recognize revenue when (or as) the entity satisfies a performance obligation This Update requires an entity to disclose more information about contracts with customers than under the current disclosure requirements. In April 2016, Accounting Standards Update 2016-10 In May 2016, Accounting Standards Update 2016-12 606-10-25-7; non-cash These Updates are effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017. Early adoption is permitted only for the fiscal year beginning after December 15, 2016, and interim periods within the fiscal year. An entity should apply the amendments in these Updates using either a retrospective method or a cumulative-effect method. The entity may elect some optional practical expedients when applying these Updates. The entity using the cumulative-effect method would recognize the cumulative effect of initially applying these Updates as an adjustment to the opening balance of retained earnings or net assets at the date of initial application. Currently, the Company and its subsidiaries plan to adopt these Updates on April 1, 2018, using the cumulative-effect method. These Updates require a number of new disclosures to enable users of the financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The scope of these Updates excludes lease contracts, financial instruments and other contractual rights and obligations within the scope of other ASC Topics including loans, investments in securities and derivatives and also excludes contracts within the scope of ASC Topic 944 (“Financial Services—Insurance”). Therefore, the Company and its subsidiaries’ such revenues will not be affected by these Updates. However, the Company and its subsidiaries have been in process of evaluating the impact of these Updates on our consolidated financial statements around other revenue streams. Based on the Company and its subsidiaries’ assessment and best estimates to date, the impact of the application of these Updates will likely result in a change in the timing of revenue recognition and accounting policy for performance fees received from customers regarding asset management business. Currently, certain subsidiaries recognize such fees when earned based on the performance of the asset under management, while other subsidiaries recognize the fees on accrual basis over the period in which services are performed. New guidance requires recognizing such fees as revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Additionally, there will be changes in the timing of revenue recognition and accounting policy for the certain project-based orders in real estate business for which the Company and its subsidiaries currently apply the percentage-of-completion In July 2015, Accounting Standards Update 2015-11 last-in, first-out In January 2016, Accounting Standards Update 2016-01 825-10 In February 2016, Accounting Standards Update 2016-02 -of-use In March 2016, Accounting Standards Update 2016-07 step-by-step available-for In June 2016, Accounting Standards Update 2016-13 available-for-sale In August 2016, Accounting Standards Update 2016-15 In October 2016, Accounting Standards Update 2016-16 In October 2016, Accounting Standards Update 2016-17 In November 2016, Accounting Standards Update 2016-18 In January 2017, Accounting Standards Update 2017-04 In August 2017, Accounting Standards Update 2017-12 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
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, 2017 and September 30, 2017: March 31, 2017 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 ¥ 19,232 ¥ 0 ¥ 19,232 ¥ 0 Trading securities 569,074 37,500 531,574 0 Available-for-sale 1,165,417 93,995 946,906 124,516 Japanese and foreign government bond securities 345,612 2,748 342,864 0 Japanese prefectural and foreign municipal bond securities*2 168,822 0 168,822 0 Corporate debt securities*3 393,644 11,464 380,562 1,618 Specified bonds issued by SPEs in Japan 1,087 0 0 1,087 CMBS and RMBS in the Americas 98,501 0 40,643 57,858 Other asset- backed securities and debt securities 64,717 0 764 63,953 Equity securities*4 93,034 79,783 13,251 0 Other securities 27,801 0 0 27,801 Investment funds*5 27,801 0 0 27,801 Derivative assets 22,999 734 17,032 5,233 Interest rate swap agreements 304 0 304 0 Options held/written and other 5,804 0 571 5,233 Futures, foreign exchange contracts 12,346 734 11,612 0 Foreign currency swap agreements 4,545 0 4,545 0 Netting*6 (4,019 ) 0 0 0 Net derivative assets 18,980 0 0 0 Other assets 22,116 0 0 22,116 Reinsurance recoverables*7 22,116 0 0 22,116 Total ¥ 1,826,639 ¥ 132,229 ¥ 1,514,744 ¥ 179,666 Liabilities: Derivative liabilities ¥ 16,295 ¥ 165 ¥ 16,130 ¥ 0 Interest rate swap agreements 4,567 0 4,567 0 Options held/written and other 1,071 0 1,071 0 Futures, foreign exchange contracts 8,821 165 8,656 0 Foreign currency swap agreements 1,677 0 1,677 0 Credit derivatives held 159 0 159 0 Netting*6 (4,019 ) 0 0 0 Net derivative Liabilities 12,276 0 0 0 Policy Liabilities and Policy Account Balances 605,520 0 0 605,520 Variable annuity and variable life insurance contracts*8 605,520 0 0 605,520 Total ¥ 621,815 ¥ 165 ¥ 16,130 ¥ 605,520 September 30, 2017 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 ¥ 14,735 ¥ 0 ¥ 14,735 ¥ 0 Trading securities 487,839 40,177 447,662 0 Available-for-sale 1,062,105 75,834 854,481 131,790 Japanese and foreign government bond securities 280,085 4,897 275,188 0 Japanese prefectural and foreign municipal bond securities*2 160,391 0 160,391 0 Corporate debt securities*3 379,539 2,648 374,106 2,785 Specified bonds issued by SPEs in Japan 963 0 0 963 CMBS and RMBS in the Americas 82,456 0 32,876 49,580 Other asset- backed securities and debt securities 79,225 0 763 78,462 Equity securities*4 79,446 68,289 11,157 0 Other securities 35,651 0 0 35,651 Investment funds*5 35,651 0 0 35,651 Derivative assets 11,898 75 6,553 5,270 Interest rate swap agreements 224 0 224 0 Options held/written and other 6,743 0 1,473 5,270 Futures, foreign exchange contracts 1,194 75 1,119 0 Foreign currency swap agreements 3,737 0 3,737 0 Netting*6 (1,109 ) 0 0 0 Net derivative assets 10,789 0 0 0 Other assets 15,242 0 0 15,242 Reinsurance recoverables*7 15,242 0 0 15,242 Total ¥ 1,627,470 ¥ 116,086 ¥ 1,323,431 ¥ 187,953 Liabilities: Derivative liabilities ¥ 33,594 ¥ 2,121 ¥ 31,473 ¥ 0 Interest rate swap agreements 4,551 0 4,551 0 Options held/written and other 1,833 0 1,833 0 Futures, foreign exchange contracts 26,060 2,121 23,939 0 Foreign currency swap agreements 1,020 0 1,020 0 Credit derivatives held 130 0 130 0 Netting*6 (1,109 ) 0 0 0 Net derivative Liabilities 32,485 0 0 0 Policy Liabilities and Policy Account Balances 517,019 0 0 517,019 Variable annuity and variable life insurance contracts*8 517,019 0 0 517,019 Total ¥ 550,613 ¥ 2,121 ¥ 31,473 ¥ 517,019 *1 A certain subsidiary elected the fair value option on the loans held for sale originated on or after October 1, 2011. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were a gain of ¥681 million and a loss of ¥577 million from the change in the fair value of the loans for the six months ended September 30, 2016 and 2017. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥783 million and ¥5 million from the change in the fair value of the loans for the three months ended September 30, 2016 and 2017. No gains or losses were recognized in earnings during the six months ended September 30, 2016 and 2017 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, 2017, were ¥18,362 million and ¥19,232 million, respectively, and the amount of aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥870 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of September 30, 2017, were ¥14,199 million and ¥14,735 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥536 million. As of March 31, 2017 and September 30, 2017, there were no loans that are 90 days or more past due, in non-accrual *2 A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale *3 A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale *4 A certain subsidiary elected the fair value option for certain investments in equity securities included in available-for-sale *5 Certain subsidiaries elected the fair value option for certain investments in investment funds included in other securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥615 million and ¥665 million from the change in the fair value of those investments for the six months ended September 30, 2016 and 2017. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥289 million and ¥342 million from the change in the fair value of those investments for the three months ended September 30, 2016 and 2017. The amounts of aggregate fair value were ¥7,453 million and ¥6,920 million as of March 31, 2017 and September 30, 2017, 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 ¥22,116 million and ¥15,242 million as of March 31, 2017 and September 30, 2017, respectively. For the effect of changes in the fair value of those reinsurance recoverables on earnings during the six and three months ended September 30, 2016 and 2017, see Note 15 “Life Insurance Operations.” *8 Certain subsidiaries elected the fair value option for the entire variable annuity and variable life insurance contracts held in order to match the earnings recognized for the changes in the fair value of policy liabilities and policy account balances with earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and the changes in the fair value of reinsurance contracts. 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 ¥605,520 million and ¥517,019 million as of March 31, 2017 and September 30, 2017, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings during the six and three months ended September 30, 2016 and 2017, see Note 15 “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) for the six months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Balance at April 1, 2016 Gains or losses (realized/unrealized) Purchases *3 Sales Settlements *4 Transfers in and/ or out of Level 3 (net) *5 Balance at September 30, 2016 Change in unrealized gains or losses included in earnings for assets and liabilities still held at September 30, 2016 *1 Included in earnings *1 Included in other comprehensive income *2 Total Available-for-sale ¥ 99,522 ¥ 223 ¥ (3,320 ) ¥ (3,097 ) ¥ 21,082 ¥ (1,666 ) ¥ (10,154 ) ¥ 0 ¥ 105,687 ¥ 59 Corporate debt securities 5 0 2 2 1,500 0 0 0 1,507 0 Specified bonds issued by SPEs in Japan 3,461 1 (18 ) (17 ) 0 (1,200 ) (983 ) 0 1,261 1 CMBS and RMBS in the Americas 38,493 178 (3,990 ) (3,812 ) 16,913 (466 ) (2,340 ) 0 48,788 14 Other asset- backed securities and debt securities 57,563 44 686 730 2,669 0 (6,831 ) 0 54,131 44 Other securities 17,751 851 (1,876 ) (1,025 ) 288 (1,693 ) 0 0 15,321 839 Investment funds 17,751 851 (1,876 ) (1,025 ) 288 (1,693 ) 0 0 15,321 839 Derivative assets and liabilities (net) 8,208 133 0 133 2,493 0 (961 ) 0 9,873 133 Options held/written and other 8,208 133 0 133 2,493 0 (961 ) 0 9,873 133 Other asset 37,855 (4,270 ) 0 (4,270 ) 4,453 0 (484 ) 0 37,554 (4,271 ) Reinsurance recoverables *6 37,855 (4,270 ) 0 (4,270 ) 4,453 0 (484 ) 0 37,554 (4,271 ) Policy Liabilities and Policy Account Balances 795,001 16,545 0 16,545 0 0 (63,022 ) 0 715,434 16,545 Variable annuity and variable life insurance contracts *7 795,001 16,545 0 16,545 0 0 (63,022 ) 0 715,434 16,545 Six months ended September 30, 2017 Millions of yen Balance at April 1, Gains or losses (realized/unrealized) Purchases *3 Sales Settlements *4 Transfers in and/ or out of Level 3 (net) *5 Balance at 2017 Change in unrealized gains or losses included in earnings for assets and liabilities still held at September 30, 2017 *1 Included in earnings *1 Included in other comprehensive income *2 Total Available-for-sale ¥ 124,516 ¥ 1,696 ¥ 895 ¥ 2,591 ¥ 44,545 ¥ (25,114 ) ¥ (14,748 ) ¥ 0 ¥ 131,790 ¥ 120 Corporate debt securities 1,618 0 5 5 1,400 0 (238 ) 0 2,785 0 Specified bonds issued by SPEs in Japan 1,087 5 (2 ) 3 0 0 (127 ) 0 963 5 CMBS and RMBS in the Americas 57,858 1,630 (213 ) 1,417 2,023 (3,468 ) (8,250 ) 0 49,580 60 Other asset- backed securities and debt securities 63,953 61 1,105 1,166 41,122 (21,646 ) (6,133 ) 0 78,462 55 Other securities 27,801 1,881 368 2,249 13,796 (8,195 ) 0 0 35,651 1,881 Investment funds 27,801 1,881 368 2,249 13,796 (8,195 ) 0 0 35,651 1,881 Derivative assets and liabilities (net) 5,233 (1,920 ) 0 (1,920 ) 3,372 0 (1,415 ) 0 5,270 (1,920 ) Options held/written and other 5,233 (1,920 ) 0 (1,920 ) 3,372 0 (1,415 ) 0 5,270 (1,920 ) Other asset 22,116 (8,908 ) 0 (8,908 ) 3,016 0 (982 ) 0 15,242 (8,908 ) Reinsurance recoverables *6 22,116 (8,908 ) 0 (8,908 ) 3,016 0 (982 ) 0 15,242 (8,908 ) Policy Liabilities and Policy Account Balances 605,520 (15,898 ) 0 (15,898 ) 0 0 (104,399 ) 0 517,019 (15,898 ) Variable annuity and variable life insurance contracts *7 605,520 (15,898 ) 0 (15,898 ) 0 0 (104,399 ) 0 517,019 (15,898 ) *1 Principally, gains and losses from available-for-sale available-for-sale *2 Unrealized gains and losses from available-for-sale *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 The amount reported in “Transfers in and/or out of Level 3 (net)” is the fair value at the beginning of quarter during which the transfers occur. *6 “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.” *7 “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 as of March 31, 2017 and September 30, 2017. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment: March 31, 2017 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 probable loan losses) ¥ 12,472 ¥ 0 ¥ 0 ¥ 12,472 Investment in operating leases and property under facility operations 22,525 0 0 22,525 Certain investment in affiliates 15,726 0 0 15,726 ¥ 50,723 ¥ 0 ¥ 0 ¥ 50,723 September 30, 2017 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 probable loan losses) ¥ 6,748 ¥ 0 ¥ 0 ¥ 6,748 Investment in operating leases and property under facility operations 1,657 0 0 1,657 ¥ 8,405 ¥ 0 ¥ 0 ¥ 8,405 |
Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets and Liabilities Measured at Fair Value on 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, 2017 and September 30, 2017. March 31, 2017 Millions of yen Fair value Valuation technique(s) Significant unobservable inputs Range (Weighted average) Assets: Available-for-sale Corporate debt securities ¥ 1,613 Discounted cash flows Discount rate 0.5% – 1.6% (1.1%) 5 Appraisals/Broker quotes — — Specified bonds issued by SPEs in Japan 1,087 Appraisals/Broker quotes — — CMBS and RMBS in the Americas 57,858 Discounted cash flows Discount rate 6.4% – 22.6% (18.0%) Probability of default 0.0% – 26.4% (3.6%) Other asset-backed securities and debt securities 13,890 Discounted cash flows Discount rate 1.0% – 51.2% (8.9%) Probability of default 0.6% – 11.0% (0.8%) 50,063 Appraisals/Broker quotes — — Other securities Investment funds 11,202 Internal cash flows Discount rate 0.0% – 40.0% (10.0%) 894 Discounted cash flows Discount rate 5.4% – 10.0% (8.6%) 15,705 Appraisals/Broker quotes — — Derivative assets Options held/written and other 3,525 Discounted cash flows Discount rate 10.0% – 15.0% (11.7%) 1,708 Appraisals/Broker quotes — — Other assets Reinsurance recoverables 22,116 Discounted cash flows Discount rate (0.1)% – 0.5% (0.1%) Mortality rate 0.0% – 100.0% (1.0%) Lapse rate 1.5% – 54.0% (14.9%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% Total ¥ 179,666 Liabilities: Policy liabilities and Policy Account Balances Valuable annuity and variable life insurance contracts ¥ 605,520 Discounted cash flows Discount rate (0.1)% – 0.5% (0.1%) Mortality rate 0.0% – 100.0% (1.0%) Lapse rate 1.5% – 54.0% (14.7%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% Total ¥ 605,520 September 30, 2017 Millions of yen Fair value Valuation technique(s) Significant unobservable inputs Range (Weighted average) Assets: Available-for-sale Corporate debt securities ¥ 2,785 Discounted cash flows Discount rate 0.4% – 1.7% (0.9%) Specified bonds issued by SPEs in Japan 963 Appraisals/Broker quotes — — CMBS and RMBS in the Americas 49,580 Discounted cash flows Discount rate 6.4% – 20.0% (17.7%) Probability of default 0.0% – 24.7% (2.6%) Other asset-backed securities and debt securities 13,164 Discounted cash flows Discount rate 1.0% – 51.2% (9.8%) Probability of default 0.5% – 11.0% (1.0%) 65,298 Appraisals/Broker quotes — — Other securities Investment funds 16,761 Internal cash flows Discount rate 0.0% – 40.0% (8.1%) 11,276 Discounted cash flows Discount rate 3.8% – 11.0% (10.3%) 7,614 Appraisals/Broker quotes — — Derivative assets Options held/written and other 4,494 Discounted cash flows Discount rate 1.0% – 15.0% (10.2%) 776 Appraisals/Broker quotes — — Other assets Reinsurance recoverables 15,242 Discounted cash flows Discount rate (0.1)% – 0.5% (0.1%) Mortality rate 0.0% – 100.0% (1.1%) Lapse rate 1.5% – 30.0% (17.1%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% (99.0%) Total ¥ 187,953 Liabilities: Policy liabilities and Policy Account Balances Valuable annuity and variable life insurance contracts ¥ 517,019 Discounted cash flows Discount rate (0.1)% – 0.5% (0.1%) Mortality rate 0.0% – 100.0% (1.1%) Lapse rate 1.5% – 54.0% (16.6%) Annuitization rate (guaranteed minimum annuity benefit) 0.0% – 100.0% Total ¥ 517,019 |
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 as of March 31, 2017 and September 30, 2017. March 31, 2017 Millions of yen Valuation technique(s) Significant unobservable inputs Range (Weighted average) Fair value Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 12,472 Discounted cash flows Discount rate 10.0% – 10.7% (10.5%) Direct capitalization Capitalization rate 10.3% – 11.2% (10.9%) Investment in operating leases and property under facility operations 204 Direct capitalization Capitalization rate 8.5% – 10.0% (8.7%) 1,381 Discounted cash flows Discount rate 6.8% – 10.2% (9.0%) 20,940 Appraisals — — Certain investment in affiliates 15,726 Market price method — — Business enterprise value multiples — — ¥ 50,723 September 30, 2017 Millions of yen Valuation technique(s) Significant unobservable inputs Range (Weighted average) Fair value Assets: Real estate collateral-dependent loans (net of allowance for probable loan losses) ¥ 6,748 Discounted cash flows Discount rate 10.0% – 10.7% (10.5%) Direct capitalization Capitalization rate 10.3% – 11.2% (10.9%) Investment in operating leases and property under facility operations 1,657 Appraisals — — ¥ 8,405 |
Credit Quality of Financing R33
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Information about Allowance for Credit Losses | The following table provides information about the allowance for credit losses as of March 31, 2017, for the six and three months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 13,267 ¥ 1,800 ¥ 23,391 ¥ 8,233 ¥ 13,380 ¥ 60,071 Provision (reversal) 5,275 261 1,186 (739 ) 760 6,743 Charge-offs (3,326 ) (2 ) (2,690 ) (510 ) (1,798 ) (8,326 ) Recoveries 238 0 145 220 11 614 Other *2 265 (181 ) (2,702 ) (94 ) (602 ) (3,314 ) Ending balance ¥ 15,719 ¥ 1,878 ¥ 19,330 ¥ 7,110 ¥ 11,751 ¥ 55,788 Individually evaluated for impairment 2,927 1,325 10,035 5,123 0 19,410 Not individually evaluated for impairment 12,792 553 9,295 1,987 11,751 36,378 Financing receivables : Ending balance ¥ 1,540,255 ¥ 74,008 ¥ 973,953 ¥ 26,466 ¥ 1,154,239 ¥ 3,768,921 Individually evaluated for impairment 14,942 5,399 31,578 9,291 0 61,210 Not individually evaluated for impairment 1,525,313 68,609 942,375 17,175 1,154,239 3,707,711 Three months ended September 30, 2016 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 14,690 ¥ 1,722 ¥ 21,706 ¥ 7,703 ¥ 12,686 ¥ 58,507 Provision (reversal) 2,639 187 1,236 (423 ) 410 4,049 Charge-offs (1,886 ) (1 ) (2,030 ) (186 ) (1,295 ) (5,398 ) Recoveries 79 0 79 17 0 175 Other *2 197 (30 ) (1,661 ) (1 ) (50 ) (1,545 ) Ending balance ¥ 15,719 ¥ 1,878 ¥ 19,330 ¥ 7,110 ¥ 11,751 ¥ 55,788 March 31, 2017 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Ending balance ¥ 18,599 ¥ 2,951 ¥ 21,079 ¥ 6,061 ¥ 10,537 ¥ 59,227 Individually evaluated for impairment 2,927 2,114 10,565 4,462 0 20,068 Not individually evaluated for impairment 15,672 837 10,514 1,599 10,537 39,159 Financing receivables : Ending balance ¥ 1,616,009 ¥ 88,726 ¥ 1,063,628 ¥ 24,795 ¥ 1,204,024 ¥ 3,997,182 Individually evaluated for impairment 16,667 6,032 28,883 7,443 0 59,025 Not individually evaluated for impairment 1,599,342 82,694 1,034,745 17,352 1,204,024 3,938,157 Six months ended September 30, 2017 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 18,599 ¥ 2,951 ¥ 21,079 ¥ 6,061 ¥ 10,537 ¥ 59,227 Provision (reversal) 6,018 (268 ) 1,278 (209 ) 1,179 7,998 Charge-offs (4,343 ) (115 ) (1,972 ) (1,110 ) (940 ) (8,480 ) Recoveries 376 0 90 63 2 531 Other *2 1 9 (1,430 ) 0 120 (1,300 ) Ending balance ¥ 20,651 ¥ 2,577 ¥ 19,045 ¥ 4,805 ¥ 10,898 ¥ 57,976 Individually evaluated for impairment 3,131 1,984 9,431 3,323 0 17,869 Not individually evaluated for impairment 17,520 593 9,614 1,482 10,898 40,107 Financing receivables : Ending balance ¥ 1,676,208 ¥ 87,454 ¥ 984,754 ¥ 21,998 ¥ 1,214,698 ¥ 3,985,112 Individually evaluated for impairment 18,409 5,443 25,193 5,703 0 54,748 Not individually evaluated for impairment 1,657,799 82,011 959,561 16,295 1,214,698 3,930,364 Three months ended September 30, 2017 Millions of yen Loans Corporate Consumer Non-recourse loans Other Purchased loans *1 Direct financing leases Total Allowance for credit losses : Beginning balance ¥ 20,086 ¥ 2,647 ¥ 21,487 ¥ 5,831 ¥ 10,708 ¥ 60,759 Provision (reversal) 2,558 (86 ) 148 (65 ) 804 3,359 Charge-offs (2,254 ) 0 (1,216 ) (1,002 ) (688 ) (5,160 ) Recoveries 258 0 16 39 (12 ) 301 Other *2 3 16 (1,390 ) 2 86 (1,283 ) Ending balance ¥ 20,651 ¥ 2,577 ¥ 19,045 ¥ 4,805 ¥ 10,898 ¥ 57,976 Note: Loans held for sale are not included in the table above. *1 Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely. *2 Other mainly includes foreign currency translation adjustments and a decrease in allowance related to sales of loans. |
Information about Impaired Loans | The following table provides information about the impaired loans as of March 31, 2017 and September 30, 2017: March 31, 2017 Millions of yen Portfolio segment Class Loans individually evaluated for impairment Unpaid principal balance Related allowance With no related allowance recorded *1 : ¥ 6,524 ¥ 6,499 ¥ 0 Consumer borrowers 973 956 0 Housing loans 973 956 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 5,439 5,431 0 Non-recourse Japan 0 0 0 The Americas 0 0 0 Other Real estate companies 0 0 0 Entertainment companies 8 2 0 Other 5,431 5,429 0 Purchased loans 112 112 0 With an allowance recorded *2 : 52,501 51,153 20,068 Consumer borrowers 15,694 14,775 2,927 Housing loans 3,271 2,796 1,202 Card loans 4,102 4,091 616 Other 8,321 7,888 1,109 Corporate borrowers 29,476 29,047 12,679 Non-recourse Japan 203 202 35 The Americas 5,829 5,829 2,079 Other Real estate companies 7,212 7,154 1,638 Entertainment companies 1,728 1,720 637 Other 14,504 14,142 8,290 Purchased loans 7,331 7,331 4,462 Total : ¥ 59,025 ¥ 57,652 ¥ 20,068 Consumer borrowers 16,667 15,731 2,927 Housing loans 4,244 3,752 1,202 Card loans 4,102 4,091 616 Other 8,321 7,888 1,109 Corporate borrowers 34,915 34,478 12,679 Non-recourse Japan 203 202 35 The Americas 5,829 5,829 2,079 Other Real estate companies 7,212 7,154 1,638 Entertainment companies 1,736 1,722 637 Other 19,935 19,571 8,290 Purchased loans 7,443 7,443 4,462 September 30, 2017 Millions of yen Portfolio segment Class Loans individually evaluated for impairment Unpaid principal balance Related allowance With no related allowance recorded *1 : ¥ 8,726 ¥ 8,660 ¥ 0 Consumer borrowers 690 632 0 Housing loans 690 632 0 Card loans 0 0 0 Other 0 0 0 Corporate borrowers 7,925 7,917 0 Non-recourse Japan 0 0 0 The Americas 0 0 0 Other Real estate companies 2,869 2,869 0 Entertainment companies 8 2 0 Other 5,048 5,046 0 Purchased loans 111 111 0 With an allowance recorded *2 : 46,022 44,827 17,869 Consumer borrowers 17,719 17,003 3,131 Housing loans 3,822 3,411 1,240 Card loans 4,079 4,069 611 Other 9,818 9,523 1,280 Corporate borrowers 22,711 22,503 11,415 Non-recourse Japan 195 195 34 The Americas 5,248 5,248 1,950 Other Real estate companies 3,017 2,962 1,293 Entertainment companies 1,642 1,631 614 Other 12,609 12,467 7,524 Purchased loans 5,592 5,321 3,323 Total : ¥ 54,748 ¥ 53,487 ¥ 17,869 Consumer borrowers 18,409 17,635 3,131 Housing loans 4,512 4,043 1,240 Card loans 4,079 4,069 611 Other 9,818 9,523 1,280 Corporate borrowers 30,636 30,420 11,415 Non-recourse Japan 195 195 34 The Americas 5,248 5,248 1,950 Other Real estate companies 5,886 5,831 1,293 Entertainment companies 1,650 1,633 614 Other 17,657 17,513 7,524 Purchased loans 5,703 5,432 3,323 Note: Loans held for sale are not included in the table above. *1 “With no related allowance recorded” represents impaired loans with no allowance for credit losses as all amounts are considered to be collectible. *2 “With an allowance recorded” represents impaired loans with the allowance for credit losses as all or a part of the amounts are not considered to be collectible. |
Information about Average Recorded Investments in Impaired Loans and Interest Income | The following table provides information about the average recorded investments in impaired loans and interest income on impaired loans for the six and three months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 14,533 ¥ 143 ¥ 112 Housing loans 4,345 54 41 Card loans 4,116 38 30 Other 6,072 51 41 Corporate borrowers 42,096 353 304 Non-recourse Japan 1,880 4 4 The Americas 5,543 35 35 Other Real estate companies 8,085 114 103 Entertainment companies 2,292 38 38 Other 24,296 162 124 Purchased loans 10,294 334 334 Total ¥ 66,923 ¥ 830 ¥ 750 Six months ended September 30, 2017 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 17,385 ¥ 243 ¥ 173 Housing loans 4,248 134 88 Card loans 4,086 34 27 Other 9,051 75 58 Corporate borrowers 32,972 106 102 Non-recourse Japan 199 3 3 The Americas 5,451 6 6 Other Real estate companies 6,547 27 26 Entertainment companies 1,691 28 27 Other 19,084 42 40 Purchased loans 6,691 3 3 Total ¥ 57,048 ¥ 352 ¥ 278 Three months ended September 30, 2016 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 14,748 ¥ 65 ¥ 58 Housing loans 4,262 22 18 Card loans 4,112 17 16 Other 6,374 26 24 Corporate borrowers 38,906 194 157 Non-recourse Japan 286 2 2 The Americas 5,320 13 13 Other Real estate companies 7,822 65 65 Entertainment companies 2,224 19 19 Other 23,254 95 58 Purchased loans 9,935 122 122 Total ¥ 63,589 ¥ 381 ¥ 337 Three months ended September 30, 2017 Millions of yen Portfolio segment Class Average recorded investments in impaired loans * Interest income on impaired loans Interest on impaired loans collected in cash Consumer borrowers ¥ 17,745 ¥ 149 ¥ 103 Housing loans 4,250 96 55 Card loans 4,079 15 14 Other 9,416 38 34 Corporate borrowers 32,001 50 47 Non-recourse Japan 197 1 1 The Americas 5,262 0 0 Other Real estate companies 6,215 14 13 Entertainment companies 1,669 14 13 Other 18,658 21 20 Purchased loans 6,315 1 1 Total ¥ 56,061 ¥ 200 ¥ 151 Note: Loans held for sale are not included in the table above. * Average balances are calculated on the basis of fiscal beginning and quarter-end |
Information about Credit Quality Indicators | The following table provides information about the credit quality indicators as of March 31, 2017 and September 30, 2017: March 31, 2017 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer borrowers ¥ 1,589,620 ¥ 16,667 ¥ 9,722 ¥ 26,389 ¥ 1,616,009 Housing loans 1,273,603 4,244 1,685 5,929 1,279,532 Card loans 264,559 4,102 1,346 5,448 270,007 Other 51,458 8,321 6,691 15,012 66,470 Corporate borrowers 1,117,439 34,915 0 34,915 1,152,354 Non-recourse Japan 12,555 203 0 203 12,758 The Americas 70,139 5,829 0 5,829 75,968 Other Real estate companies 313,947 7,212 0 7,212 321,159 Entertainment companies 94,190 1,736 0 1,736 95,926 Other 626,608 19,935 0 19,935 646,543 Purchased loans 17,352 7,443 0 7,443 24,795 Direct financing leases 1,192,424 0 11,600 11,600 1,204,024 Japan 839,848 0 6,442 6,442 846,290 Overseas 352,576 0 5,158 5,158 357,734 Total ¥ 3,916,835 ¥ 59,025 ¥ 21,322 ¥ 80,347 ¥ 3,997,182 September 30, 2017 Millions of yen Non-performing Portfolio segment Class Performing Loans individually evaluated for impairment 90+ days past-due loans not individually evaluated for impairment Subtotal Total Consumer borrowers ¥ 1,646,538 ¥ 18,409 ¥ 11,261 ¥ 29,670 ¥ 1,676,208 Housing loans 1,329,989 4,512 1,691 6,203 1,336,192 Card loans 262,073 4,079 1,632 5,711 267,784 Other 54,476 9,818 7,938 17,756 72,232 Corporate borrowers 1,041,572 30,636 0 30,636 1,072,208 Non-recourse Japan 17,971 195 0 195 18,166 The Americas 64,040 5,248 0 5,248 69,288 Other Real estate companies 332,051 5,886 0 5,886 337,937 Entertainment companies 90,916 1,650 0 1,650 92,566 Other 536,594 17,657 0 17,657 554,251 Purchased loans 16,295 5,703 0 5,703 21,998 Direct financing leases 1,201,961 0 12,737 12,737 1,214,698 Japan 833,303 0 6,731 6,731 840,034 Overseas 368,658 0 6,006 6,006 374,664 Total ¥ 3,906,366 ¥ 54,748 ¥ 23,998 ¥ 78,746 ¥ 3,985,112 |
Information about Nonaccrual and Past Due Financing Receivables | The following table provides information about the non-accrual past-due March 31, 2017 Millions of yen Past-due Portfolio segment Class 30-89 days past-due 90 days or more past-due Total past-due Total financing receivables Non-accrual Consumer borrowers ¥ 6,433 ¥ 12,971 ¥ 19,404 ¥ 1,616,009 ¥ 12,971 Housing loans 2,314 3,420 5,734 1,279,532 3,420 Card loans 518 1,825 2,343 270,007 1,825 Other 3,601 7,726 11,327 66,470 7,726 Corporate borrowers 4,902 15,224 20,126 1,152,354 24,474 Non-recourse Japan 0 0 0 12,758 0 The Americas 4,028 4,940 8,968 75,968 5,768 Other Real estate companies 37 1,867 1,904 321,159 1,867 Entertainment companies 0 140 140 95,926 140 Other 837 8,277 9,114 646,543 16,699 Direct financing leases 4,834 11,600 16,434 1,204,024 11,600 Japan 535 6,442 6,977 846,290 6,442 Overseas 4,299 5,158 9,457 357,734 5,158 Total ¥ 16,169 ¥ 39,795 ¥ 55,964 ¥ 3,972,387 ¥ 49,045 September 30, 2017 Millions of yen Past-due Portfolio segment Class 30-89 past-due 90 days or more past-due Total past-due Total financing receivables Non-accrual Consumer borrowers ¥ 6,812 ¥ 14,635 ¥ 21,447 ¥ 1,676,208 ¥ 14,635 Housing loans 2,069 3,441 5,510 1,336,192 3,441 Card loans 555 2,122 2,677 267,784 2,122 Other 4,188 9,072 13,260 72,232 9,072 Corporate borrowers 2,982 17,150 20,132 1,072,208 24,398 Non-recourse Japan 0 0 0 18,166 0 The Americas 725 5,248 5,973 69,288 5,248 Other Real estate companies 36 4,244 4,280 337,937 4,244 Entertainment companies 630 138 768 92,566 138 Other 1,591 7,520 9,111 554,251 14,768 Direct financing leases 5,715 12,737 18,452 1,214,698 12,737 Japan 479 6,731 7,210 840,034 6,731 Overseas 5,236 6,006 11,242 374,664 6,006 Total ¥ 15,509 ¥ 44,522 ¥ 60,031 ¥ 3,963,114 ¥ 51,770 Note: Loans held for sale and purchased loans are not included in the table above. |
Information about Troubled Debt Restructurings of Financing Receivables | The following table provides information about troubled debt restructurings of financing receivables that occurred during the six and three months ended September 30, 2016 and 2017: Six months ended September 30, 2016 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 5,309 ¥ 3,993 Housing loans 132 113 Card loans 1,105 908 Other 4,072 2,972 Corporate borrowers 453 453 Other Other 453 453 Total ¥ 5,762 ¥ 4,446 Six months ended September 30, 2017 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 4,680 ¥ 3,662 Housing loans 11 11 Card loans 1,075 853 Other 3,594 2,798 Total ¥ 4,680 ¥ 3,662 Three months ended September 30, 2016 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 2,740 ¥ 2,062 Housing loans ¥ 121 ¥ 108 Card loans 516 418 Other 2,103 1,536 Corporate borrowers 453 453 Other Other 453 453 Total ¥ 3,193 ¥ 2,515 Three months ended September 30, 2017 Millions of yen Portfolio segment Class Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Consumer borrowers ¥ 2,472 ¥ 1,935 Card loans 544 430 Other 1,928 1,505 Total ¥ 2,472 ¥ 1,935 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from September 30, 2016 and for which there was a payment default during the six and three months ended September 30, 2016: Six months ended September 30, 2016 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 927 Card loans 31 Other 896 Total ¥ 927 Three months ended September 30, 2016 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 452 Card loans 11 Other 441 Total ¥ 452 The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from September 30, 2017 and for which there was a payment default during the six and three months ended September 30, 2017: Six months ended September 30, 2017 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 57 Card loans 16 Other 41 Total ¥ 57 Three months ended September 30, 2017 Millions of yen Portfolio segment Class Recorded investment Consumer borrowers ¥ 43 Card loans 12 Other 31 Total ¥ 43 |
Investment in Securities (Table
Investment in Securities (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Summary of Investment in Securities | Investment in securities as of March 31, 2017 and September 30, 2017 consists of the following: Millions of yen March 31, 2017 September 30, 2017 Trading securities * ¥ 569,074 ¥ 487,839 Available-for-sale 1,165,417 1,062,105 Held-to-maturity 114,400 114,368 Other securities 177,621 185,021 Total ¥ 2,026,512 ¥ 1,849,333 * The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥547,850 million and ¥476,478 million as of March 31, 2017 and September 30, 2017, respectively. |
Amortized Cost Basis Amounts, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Values of Available-for-Sale Securities and Held-to-Maturity Securities in Each Major Security Type | The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale held-to-maturity March 31, 2017 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 334,117 ¥ 12,321 ¥ (826 ) ¥ 345,612 Japanese prefectural and foreign municipal bond securities 166,789 3,034 (1,001 ) 168,822 Corporate debt securities 393,021 3,606 (2,983 ) 393,644 Specified bonds issued by SPEs in Japan 1,077 10 0 1,087 CMBS and RMBS in the Americas 95,700 3,359 (558 ) 98,501 Other asset-backed securities and debt securities 61,138 3,957 (378 ) 64,717 Equity securities 67,914 25,618 (498 ) 93,034 1,119,756 51,905 (6,244 ) 1,165,417 Held-to-maturity: Japanese government bond securities and other 114,400 25,323 0 139,723 ¥ 1,234,156 ¥ 77,228 ¥ (6,244 ) ¥ 1,305,140 September 30, 2017 Millions of yen Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale: Japanese and foreign government bond securities ¥ 267,557 ¥ 12,537 ¥ (9 ) ¥ 280,085 Japanese prefectural and foreign municipal bond securities 157,675 3,644 (928 ) 160,391 Corporate debt securities 377,085 3,847 (1,393 ) 379,539 Specified bonds issued by SPEs in Japan 954 9 0 963 CMBS and RMBS in the Americas 80,201 2,866 (611 ) 82,456 Other asset-backed securities and debt securities 75,947 3,395 (117 ) 79,225 Equity securities 61,539 19,455 (1,548 ) 79,446 1,020,958 45,753 (4,606 ) 1,062,105 Held-to-maturity: Japanese government bond securities and other 114,368 25,764 0 140,132 ¥ 1,135,326 ¥ 71,517 ¥ (4,606 ) ¥ 1,202,237 |
Information about Available-for-Sale Securities with Gross Unrealized Losses and Length of Time Individual Securities Have Been in Continuous Unrealized Loss Position | The following tables provide information about available-for-sale March 31, 2017 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese and foreign government bond securities ¥ 33,991 ¥ (826 ) ¥ 0 ¥ 0 ¥ 33,991 ¥ (826 ) Japanese prefectural and foreign municipal bond securities 36,873 (696 ) 6,202 (305 ) 43,075 (1,001 ) Corporate debt securities 152,812 (2,983 ) 0 0 152,812 (2,983 ) CMBS and RMBS in the Americas 20,238 (485 ) 9,428 (73 ) 29,666 (558 ) Other asset-backed securities and debt securities 3,308 (1 ) 3,991 (377 ) 7,299 (378 ) Equity securities 7,645 (480 ) 787 (18 ) 8,432 (498 ) ¥ 254,867 ¥ (5,471 ) ¥ 20,408 ¥ (773 ) ¥ 275,275 ¥ (6,244 ) September 30, 2017 Millions of yen Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Available-for-sale: Japanese and foreign government bond securities ¥ 2,720 ¥ (9 ) ¥ 0 ¥ 0 ¥ 2,720 ¥ (9 ) Japanese prefectural and foreign municipal bond securities 37,579 (842 ) 3,855 (86 ) 41,434 (928 ) Corporate debt securities 124,589 (1,178 ) 19,607 (215 ) 144,196 (1,393 ) CMBS and RMBS in the Americas 10,777 (316 ) 8,235 (295 ) 19,012 (611 ) Other asset-backed securities and debt securities 908 (15 ) 2,515 (102 ) 3,423 (117 ) Equity securities 30,934 (848 ) 7,303 (700 ) 38,237 (1,548 ) ¥ 207,507 ¥ (3,208 ) ¥ ¥ (1,398 ) ¥ 249,022 ¥ ) |
Total Other-Than-Temporary Impairment with Offset for Amount of Total Other-Than-Temporary Impairment Recognized in Other Comprehensive Income | The total other-than-temporary impairment with an offset for the amount of the total other-than-temporary impairment recognized in other comprehensive income (loss) for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Total other-than-temporary impairment losses ¥ 6,212 ¥ 423 Portion of loss recognized in other comprehensive income (before taxes) 0 0 Net impairment losses recognized in earnings ¥ 6,212 ¥ 423 The total other-than-temporary impairment with an offset for the amount of the total other-than-temporary impairment recognized in other comprehensive income (loss) for the three months ended September 30, 2016 and 2017 are as follows: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Total other-than-temporary impairment losses ¥ 6,207 ¥ 243 Portion of loss recognized in other comprehensive income (before taxes) 0 0 Net impairment losses recognized in earnings ¥ 6,207 ¥ 243 |
Roll-Forwards of Amount Related to Credit Losses on Other-Than-Temporarily Impaired Debt Securities Recognized in Earnings | Roll-forwards of the amount related to credit losses on other-than-temporarily impaired debt securities recognized in earnings for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Beginning balance ¥ 1,413 ¥ 1,220 Reduction during the period : Due to change in intent to sell or requirement to sell (22 ) 0 Ending balance ¥ 1,391 ¥ 1,220 Roll-forwards of the amount related to credit losses on other-than-temporarily impaired debt securities recognized in earnings for the three months ended September 30, 2016 and 2017 are as follows: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Beginning balance ¥ 1,391 ¥ 1,220 Ending balance ¥ 1,391 ¥ 1,220 |
Securitization Transactions (Ta
Securitization Transactions (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Quantitative Information about Delinquencies, Impaired Loans and Components of Financial Assets Sold on Securitization, Other Assets Managed Together, and Net Credit Loss | Quantitative information about delinquencies, impaired loans and components of financial assets sold on securitization and other assets managed together as of March 31, 2017 and September 30, 2017, and quantitative information about net credit loss for the six and three months ended September 30, 2016 and 2017 are as follows: Millions of yen Total principal amount of receivables Principal amount of receivables that are 90 days or more past-due March 31, 2017 September 30, 2017 March 31, 2017 September 30, 2017 Direct financing leases ¥ 1,204,024 ¥ 1,214,698 ¥ 11,600 ¥ 12,737 Installment loans 2,815,706 2,825,895 68,747 66,009 4,019,730 4,040,593 80,347 78,746 Direct financing leases sold on securitization 0 0 0 0 Total ¥ 4,019,730 ¥ 4,040,593 ¥ 80,347 ¥ 78,746 Millions of yen Credit loss Six months ended Six months ended Three months ended September 30, 2016 Three months ended September 30, 2017 Direct financing leases ¥ 1,787 ¥ 938 ¥ 1,295 ¥ 700 Installment loans 5,925 7,011 3,928 4,159 7,712 7,949 5,223 4,859 Direct financing leases sold on securitization 0 0 0 0 Total ¥ 7,712 ¥ 7,949 ¥ 5,223 ¥ 4,859 |
Roll-Forwards of Amount of Servicing Assets and Fair Value of Servicing Assets | The servicing assets related to those servicing activities are included in other assets and roll-forwards of the amount of the servicing assets for the six and three months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Three months ended September 30, 2016 Three months ended September 30, 2017 Beginning balance ¥ 16,852 ¥ 17,303 ¥ 15,212 ¥ 17,736 Increase mainly from loans sold with servicing retained 1,781 13,470 1,095 12,132 Decrease mainly from amortization (1,779 ) (1,712 ) (903 ) (835) Increase (Decrease) from the effects of changes in foreign exchange rates (1,718 ) 225 (268 ) 253 Ending balance ¥ 15,136 ¥ 29,286 ¥ 15,136 ¥ 29,286 The fair value of the servicing assets as of March 31, 2017 and September 30, 2017 are as follows: Millions of yen March 31, 2017 September 30, 2017 Beginning balance ¥ 24,229 ¥ 24,907 Ending balance ¥ 24,907 ¥ 36,949 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Primary Beneficiary | |
Information about Variable Interest Entities (Consolidated and Non-consolidated) | Information about VIEs (consolidated and non-consolidated) 1. Consolidated VIEs March 31, 2017 Millions of yen Types of VIEs Total assets *1 Total liabilities *1 Assets which are pledged as collateral *2 Commitments *3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 663 0 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 127,425 39,877 75,382 7,000 (d) VIEs for corporate rehabilitation support business 1,544 16 0 0 (e) VIEs for investment in securities 50,411 2,027 5,567 1,995 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 338,138 228,935 307,315 0 (g) VIEs for securitization of loan receivable originated by third parties 18,683 17,202 18,683 0 (h) VIEs for power generation projects 212,153 111,404 127,993 84,227 (i) Other VIEs 202,386 72,447 168,353 0 Total ¥ 951,403 ¥ 471,908 ¥ 703,293 ¥ 93,222 September 30, 2017 Millions of yen Types of VIEs Total assets *1 Total liabilities *1 Assets which are pledged as collateral *2 Commitments *3 (a) VIEs for liquidating customer assets ¥ 0 ¥ 0 ¥ 0 ¥ 0 (b) VIEs for acquisition of real estate and real estate development projects for customers 662 0 0 0 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 105,913 28,876 54,129 7,000 (d) VIEs for corporate rehabilitation support business 1,685 158 0 0 (e) VIEs for investment in securities 41,061 724 69 2,044 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 144,167 101,991 115,387 0 (g) VIEs for securitization of loan receivable originated by third parties 13,746 14,049 13,746 0 (h) VIEs for power generation projects 221,922 104,421 129,117 92,698 (i) Other VIEs 193,260 71,824 166,360 0 Total ¥ 722,416 ¥ 322,043 ¥ 478,808 ¥ 101,742 *1 The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. *2 The assets are pledged as collateral by VIE for financing of the VIE. *3 This item represents remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Variable Interest Entity, Not Primary Beneficiary | |
Information about Variable Interest Entities (Consolidated and Non-consolidated) | 2. Non-consolidated March 31, 2017 Millions of yen Carrying amount of the variable interests in the VIEs held by the Company and its subsidiaries Types of VIEs Total assets Non-recourse loans Investments Maximum exposure to loss * (a) VIEs for liquidating customer assets ¥ 8,671 ¥ 0 ¥ 991 ¥ 991 (b) VIEs for acquisition of real estate and real estate development projects for customers 96,187 0 11,130 11,194 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 30,299,519 0 80,211 109,310 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,744,471 0 18,448 18,483 (h) VIEs for power generation projects 12,414 0 1,719 3,729 (i) Other VIEs 319,520 4,864 17,963 25,260 Total ¥ 32,480,782 ¥ 4,864 ¥ 130,462 ¥ 168,967 September 30, 2017 Millions of yen Carrying amount of the variable interests in the VIEs held by the Company and its subsidiaries Types of VIEs Total assets Non-recourse loans Investments Maximum exposure to loss * (a) VIEs for liquidating customer assets ¥ 8,660 ¥ 0 ¥ 991 ¥ 991 (b) VIEs for acquisition of real estate and real estate development projects for customers 82,903 0 11,248 11,248 (c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business 0 0 0 0 (d) VIEs for corporate rehabilitation support business 0 0 0 0 (e) VIEs for investment in securities 30,936,563 0 80,837 108,170 (f) VIEs for securitizing financial assets such as direct financing lease receivable and loan receivable 0 0 0 0 (g) VIEs for securitization of loan receivable originated by third parties 1,432,927 0 17,378 17,405 (h) VIEs for power generation projects 29,257 0 1,871 1,871 (i) Other VIEs 444,597 4,362 29,982 36,790 Total ¥ 32,934,907 ¥ 4,362 ¥ 142,307 ¥ 176,475 * Maximum exposure to loss includes remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Investment in Affiliates (Table
Investment in Affiliates (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Summary of Investment in Affiliates | Investment in affiliates at March 31, 2017 and September 30, 2017 consists of the following: Millions of yen March 31, 2017 September 30, 2017 Shares ¥ 485,386 ¥ 539,053 Loans and others 38,848 55,377 ¥ 524,234 ¥ 594,430 |
Redeemable Noncontrolling Int38
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Changes in Redeemable Noncontrolling Interests | Changes in redeemable noncontrolling interests for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Beginning balance ¥ 7,467 ¥ 6,548 Comprehensive income Net income 148 148 Other comprehensive income (loss) Net change of foreign currency translation adjustments (772 ) 34 Total other comprehensive income (loss) (772 ) 34 Comprehensive income (loss) (624 ) 182 Ending balance ¥ 6,843 ¥ 6,730 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | Changes in each component of accumulated other comprehensive income (loss), net of tax for the six months ended September 30, 2016 and 2017, are as follows: Six months ended September 30, 2016 Millions of yen Net unrealized gains (losses) on investment in securities Defined benefit pension plans Foreign currency translation adjustments Net unrealized gains (losses) on derivative instruments Accumulated other comprehensive income (loss) Balance at March 31, 2016 ¥ 47,185 ¥ (23,884 ) ¥ (24,766 ) ¥ (4,757 ) ¥ (6,222 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥(3,157) million 6,936 6,936 Reclassification adjustment included in net income, net of tax of ¥4,068 million (9,789 ) (9,789 ) Defined benefit pension plans, net of tax of ¥(504) million 1,281 1,281 Reclassification adjustment included in net income, net of tax of ¥(77) million 218 218 Foreign currency translation adjustments, net of tax of ¥10,196 million (59,799 ) (59,799 ) Reclassification adjustment included in net income, net of tax of ¥13 million 287 287 Net unrealized gains (losses) on derivative instruments, net of tax of ¥669 million (1,436 ) (1,436 ) Reclassification adjustment included in net income, net of tax of ¥122 million (364 ) (364 ) Total other comprehensive income (loss) (2,853 ) 1,499 (59,512 ) (1,800 ) (62,666 ) Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (55 ) 138 (6,426 ) (87 ) (6,430 ) Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests 0 0 (772 ) 0 (772 ) Balance at September 30, 2016 ¥ 44,387 ¥ (22,523 ) ¥ (77,080 ) ¥ (6,470 ) ¥ (61,686 ) Six months ended September 30, 2017 Millions of yen Net unrealized gains (losses) on investment in securities Defined benefit Foreign currency Net unrealized gains (losses) on instruments Accumulated Balance at March 31, 2017 ¥ 32,279 ¥ (17,330 ) ¥ (31,736 ) ¥ (4,483 ) ¥ (21,270 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥(2,275) million 6,640 6,640 Reclassification adjustment included in net income, net of tax of ¥4,594 million (9,667 ) (9,667 ) Defined benefit pension plans, net of tax of ¥86 million (427 ) (427 ) Reclassification adjustment included in net income, net of tax of ¥5 million (20 ) (20 ) Foreign currency translation adjustments, net of tax of ¥12,032 million 19,830 19,830 Reclassification adjustment included in net income, net of tax of ¥(1,019) million (1,175 ) (1,175 ) Net unrealized gains (losses) on derivative instruments, net of tax of ¥(253) million 805 805 Reclassification adjustment included in net income, net of tax of ¥235 million (729 ) (729 ) Total other comprehensive income (loss) (3,027 ) (447 ) 18,655 76 15,257 Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (65 ) 0 728 4 667 Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 34 0 34 Balance at September 30, 2017 ¥ 29,317 ¥ (17,777 ) ¥ (13,843 ) ¥ (4,411 ) ¥ (6,714 ) Changes in each component of accumulated other comprehensive income (loss), net of tax for the three months ended September 30, 2016 and 2017, are as follows: Three months ended September 30, 2016 Millions of yen Net unrealized gains in securities Defined benefit pension plans Foreign currency translation adjustments Net unrealized gains (losses) on instruments Accumulated other comprehensive income (loss) Balance at June 30, 2016 ¥ 54,013 ¥ (22,704 ) ¥ (60,175 ) ¥ (6,568 ) ¥ (35,434 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥647 million (3,811 ) (3,811 ) Reclassification adjustment included in net income, net of tax of ¥2,202 million (5,814 ) (5,814 ) Defined benefit pension plans, net of tax of ¥(62) million 75 75 Reclassification adjustment included in net income, net of tax of ¥(38) million 127 127 Foreign currency translation adjustments, net of tax of ¥5,047 million (19,262 ) (19,262 ) Reclassification adjustment included in net income, net of tax of ¥(130) million 954 954 Net unrealized gains (losses) on derivative instruments, net of tax of ¥(207) million 404 404 Reclassification adjustment included in net income, net of tax of ¥103 million (272 ) (272 ) Total other comprehensive income (loss) (9,625 ) 202 (18,308 ) 132 (27,599 ) Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest 1 21 (1,282 ) 34 (1,226 ) Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests 0 0 (121 ) 0 (121 ) Balance at September 30, 2016 ¥ 44,387 ¥ (22,523 ) ¥ (77,080 ) ¥ (6,470 ) ¥ (61,686 ) Three months ended September 30, 2017 Millions of yen Net unrealized gains (losses) on investment in securities Defined benefit Foreign currency Net unrealized Accumulated Balance at June 30, 2017 ¥ 30,376 ¥ (17,586 ) ¥ (25,122 ) ¥ (4,352 ) ¥ (16,684 ) Net unrealized gains (losses) on investment in securities, net of tax of ¥(875) million 3,253 3,253 Reclassification adjustment included in net income, net of tax of ¥2,133 million (4,324 ) (4,324 ) Defined benefit pension plans, net of tax of ¥19 million (180 ) (180 ) Reclassification adjustment included in net income, net of tax of ¥2 million (10 ) (10 ) Foreign currency translation adjustments, net of tax of ¥5,413 million 13,041 13,041 Reclassification adjustment included in net income, net of tax of ¥0 million 0 0 Net unrealized gains (losses) on derivative instruments, net of tax of ¥4 million 4 4 Reclassification adjustment included in net income, net of tax of ¥17 million (73 ) (73 ) Total other comprehensive income (loss) (1,071 ) (190 ) 13,041 (69 ) 11,711 Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest (12 ) 1 1,717 (10 ) 1,696 Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests 0 0 45 0 45 Balance at September 30, 2017 ¥ 29,317 ¥ (17,777 ) ¥ (13,843 ) ¥ (4,411 ) ¥ (6,714 ) |
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, 2016 and 2017 are as follows: Six months ended September 30, 2016 Details about accumulated other Reclassification adjustment included in net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 11,596 Gains on investment securities and dividends Sales of investment securities 9,326 Life insurance premiums and related investment income Amortization of investment securities (125 ) Finance revenues Amortization of investment securities (760 ) Life insurance premiums and related investment income Others (6,180 ) Write-downs of securities and other 13,857 Total before tax (4,068 ) Tax expenses or benefits ¥ 9,789 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 511 See Note 14 “Pension Plans” Amortization of net actuarial loss (782 ) See Note 14 “Pension Plans” Amortization of transition obligation (24 ) See Note 14 “Pension Plans” (295 ) Total before tax 77 Tax expenses or benefits ¥ (218 ) Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (274 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (274 ) Total before tax (13 ) Tax expenses or benefits ¥ (287 ) Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 1 Finance revenues/Interest expense Foreign exchange contracts (32 ) Other (income) and expense, net Foreign currency swap agreements 517 Finance revenues/Interest expense/ Other (income) and expense, net 486 Total before tax (122 ) Tax expenses or benefits ¥ 364 Net of tax Six months ended September 30, 2017 Details about accumulated other comprehensive income components Reclassification net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 11,272 Gains on investment securities and dividends Sales of investment securities 3,502 Life insurance premiums and related investment income Amortization of investment securities (109 ) Finance revenues Amortization of investment securities (275 ) Life insurance premiums and related investment income Others (129 ) Write-downs of securities and other 14,261 Total before tax (4,594 ) Tax expenses or benefits ¥ 9,667 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 497 See Note 14 “Pension Plans” Amortization of net actuarial loss (447 ) See Note 14 “Pension Plans” Amortization of transition obligation (25 ) See Note 14 “Pension Plans” 25 Total before tax (5 ) Tax expenses or benefits ¥ 20 Net of tax Foreign currency translation adjustments Sales or liquidation ¥ 156 Gains on sales of subsidiaries and affiliates and liquidation losses, net 156 Total before tax 1,019 Tax expenses or benefits ¥ 1,175 Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 118 Finance revenues/Interest expense Foreign exchange contracts (2 ) Other (income) and expense, net Foreign currency swap agreements 848 Finance revenues/Interest expense/ Other (income) and expense, net 964 Total before tax (235 ) Tax expenses or benefits ¥ 729 Net of tax Amounts reclassified to net income from accumulated other comprehensive income (loss) in the three months ended September 30, 2016 and 2017 are as follows: Three months ended September 30, 2016 Details about accumulated other comprehensive income components Reclassification adjustment included in net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 8,410 Gains on investment securities and dividends Sales of investment securities 6,187 Life insurance premiums and related investment income Amortization of investment securities (24 ) Finance revenues Amortization of investment securities (379 ) Life insurance premiums and related investment income Others (6,178 ) Write-downs of securities and other 8,016 Total before tax (2,202 ) Tax expenses or benefits ¥ 5,814 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 255 See Note 14 “Pension Plans” Amortization of net actuarial loss (408 ) See Note 14 “Pension Plans” Amortization of transition obligation (12 ) See Note 14 “Pension Plans” (165 ) Total before tax 38 Tax expenses or benefits ¥ (127 ) Net of tax Foreign currency translation adjustments Sales or liquidation ¥ (1,084 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net (1,084 ) Total before tax 130 Tax expenses or benefits ¥ (954 ) Net of tax Net unrealized gains (losses) on derivative instruments Foreign exchange contracts ¥ (19 ) Other (income) and expense, net Foreign currency swap agreements 394 Finance revenues/Interest expense/ Other (income) and expense, net 375 Total before tax (103 ) Tax expenses or benefits ¥ 272 Net of tax Three months ended September 30, 2017 Details about accumulated other Reclassification net income Consolidated statements of income caption Millions of yen Net unrealized gains (losses) on investment in securities Sales of investment securities ¥ 6,131 Gains on investment securities and dividends Sales of investment securities 660 Life insurance premiums and related investment income Amortization of investment securities (199 ) Finance revenues Amortization of investment securities (135 ) Life insurance premiums and related investment income 6,457 Total before tax (2,133 ) Tax expenses or benefits ¥ 4,324 Net of tax Defined benefit pension plans Amortization of prior service credit ¥ 249 See Note 14 “Pension Plans” Amortization of net actuarial loss (224 ) See Note 14 “Pension Plans” Amortization of transition obligation (13 ) See Note 14 “Pension Plans” 12 Total before tax (2 ) Tax expenses or benefits ¥ 10 Net of tax Net unrealized gains (losses) on derivative instruments Interest rate swap agreements ¥ 2 Finance revenues/Interest expense Foreign currency swap agreements 88 Finance revenues/Interest expense/ Other (income) and expense, net 90 Total before tax (17 ) Tax expenses or benefits ¥ 73 Net of tax |
ORIX Corporation Shareholders40
ORIX Corporation Shareholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Information about Dividend Payments and Applicable Dividends | Information about ORIX Corporation Shareholders’ Equity for the six months ended September 30, 2016 and 2017 are as follows: (1) Dividend payments Six months ended September 30, 2016 Six months ended September 30, 2017 Resolution The board of directors on May 23, 2016 The board of directors on May 23, 2017 Type of shares Common stock Common stock Total dividends paid ¥31,141 million ¥38,162 million Dividend per share ¥23.75 ¥29.25 Date of record for dividend March 31, 2016 March 31, 2017 Effective date for dividend June 1, 2016 June 6, 2017 Dividend resource Retained earnings Retained earnings (2) Applicable dividends for which the date of record was in the six months ended September 30, 2016 and 2017, and for which the effective date was after September 30, 2016 and 2017. Six months ended September 30, 2016 Six months ended September 30, 2017 Resolution The board of directors on October 26, 2016 The board of directors on October 30, 2017 Type of shares Common stock Common stock Total dividends paid ¥30,157 million ¥34,595 million Dividend per share ¥23.00 ¥27.00 Date of record for dividend September 30, 2016 September 30, 2017 Effective date for dividend December 2, 2016 December 4, 2017 Dividend resource Retained earnings Retained earnings |
Selling, General and Administ41
Selling, General and Administrative Expenses (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Summary of Selling, General and Administrative Expenses | Selling, general and administrative expenses for the six months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Personnel expenses ¥ 117,968 ¥ 119,164 Selling expenses 35,104 36,378 Administrative expenses 48,093 51,288 Depreciation of office facilities 2,534 2,469 Total ¥ 203,699 ¥ 209,299 Selling, general and administrative expenses for the three months ended September 30, 2016 and 2017 are as follows: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Personnel expenses ¥ 57,873 ¥ 57,890 Selling expenses 18,332 19,058 Administrative expenses 23,585 25,133 Depreciation of office facilities 1,307 1,256 Total ¥ 101,097 ¥ 103,337 |
Pension Plans (Tables)
Pension Plans (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Net Pension Cost of Defined Benefit Plans | Net pension cost of the plans for the six months ended September 30, 2016 and 2017 consists of the following: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Japanese plans: Service cost ¥ 2,556 ¥ 2,649 Interest cost 338 388 Expected return on plan assets (1,269 ) (1,313 ) Amortization of prior service credit (463 ) (457 ) Amortization of net actuarial loss 473 428 Amortization of transition obligation 22 23 Net periodic pension cost ¥ 1,657 ¥ 1,718 Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Overseas plans: Service cost ¥ 1,627 ¥ 1,605 Interest cost 880 952 Expected return on plan assets (1,788 ) (2,037 ) Amortization of prior service credit (48 ) (40 ) Amortization of net actuarial loss 309 19 Amortization of transition obligation 2 2 Net periodic pension cost ¥ 982 ¥ 501 Net pension cost of the plans for the three months ended September 30, 2016 and 2017 consists of the following: Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Japanese plans: Service cost ¥ 1,279 ¥ 1,325 Interest cost 169 194 Expected return on plan assets (635 ) (656 ) Amortization of prior service credit (232 ) (228 ) Amortization of net actuarial loss 237 214 Amortization of transition obligation 11 12 Net periodic pension cost ¥ 829 ¥ 861 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Overseas plans: Service cost ¥ 795 ¥ 768 Interest cost 424 487 Expected return on plan assets (869 ) (1,044 ) Amortization of prior service credit (23 ) (21 ) Amortization of net actuarial loss 171 10 Amortization of transition obligation 1 1 Net periodic pension cost ¥ 499 ¥ 201 |
Life Insurance Operations (Tabl
Life Insurance Operations (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Life Insurance Premiums and Related Investment Income | Life insurance premiums and related investment income for the six and three months ended September 30, 2016 and 2017 consist of the following: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Life insurance premiums ¥ 114,750 ¥ 142,495 Life insurance related investment income 986 38,715 ¥ 115,736 ¥ 181,210 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Life insurance premiums ¥ 59,492 ¥ 71,122 Life insurance related investment income 19,472 16,434 ¥ 78,964 ¥ 87,556 |
Reinsurance Benefits and Reinsurance Premiums Included in Life Insurance Premiums | Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Life insurance premiums ¥ 114,750 ¥ 142,495 Life insurance related investment income 986 38,715 ¥ 115,736 ¥ 181,210 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Life insurance premiums ¥ 59,492 ¥ 71,122 Life insurance related investment income 19,472 16,434 ¥ 78,964 ¥ 87,556 Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For the six and three months ended September 30, 2016 and 2017, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Reinsurance benefits ¥ 1,497 ¥ 1,870 Reinsurance premiums (5,098 ) (3,763 ) Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Reinsurance benefits ¥ 862 ¥ 850 Reinsurance premiums (2,534 ) (1,813 ) |
Gains or Losses Relating to Variable Annuity and Variable Life Insurance Contracts | The above mentioned gains or losses relating to variable annuity and variable life insurance contracts for the six and three months ended September 30, 2016 and 2017 are as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Life insurance premiums and related investment income : Net realized and unrealized gains or losses from investment assets ¥ (12,624 ) ¥ 37,141 Net gains or losses from derivative contracts : 256 (5,949 ) Futures (2,117 ) (4,453 ) Foreign exchange contracts 1,902 (584 ) Options held 471 (912 ) Life insurance costs : Changes in the fair value of the policy liabilities and policy account balances ¥ (79,567 ) ¥ (88,501 ) Insurance costs recognized for insurance and annuity payouts as a result of insured events 63,022 104,399 Changes in the fair value of the reinsurance contracts 301 6,874 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Life insurance premiums and related investment income : Net realized and unrealized gains or losses from investment assets ¥ 15,605 ¥ 16,014 Net gains or losses from derivative contracts : (4,877 ) (2,416 ) Futures (4,234 ) (1,826 ) Foreign exchange contracts 231 (262 ) Options held (874 ) (328 ) Life insurance costs : Changes in the fair value of the policy liabilities and policy account balances ¥ (35,481 ) ¥ (40,895 ) Insurance costs recognized for insurance and annuity payouts as a result of insured events 33,573 47,955 Changes in the fair value of the reinsurance contracts 7,663 2,828 |
Write-Downs of Long-Lived Ass44
Write-Downs of Long-Lived Assets (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Long-Lived Assets Classified as Held for Sale | As of March 31, 2017 and September 30, 2017, the long-lived assets classified as held for sale in the accompanying consolidated balance sheets are as follows. Millions of yen As of March 31, 2017 As of September 30, 2017 Investment in operating leases ¥ 32,283 ¥ 34,964 Property under facility operations 1,977 0 Other assets 2,508 0 |
Breakdowns of Recognized Impairment Losses for Difference between Carrying Amounts and Fair Values Reflected as Write-Downs of Long-Lived Assets | For the six months ended September 30, 2016 and 2017, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥1,409 million and ¥1,472 million, respectively, which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows. Six months ended September 30, 2016 Six months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs of the assets held for sale: Office buildings ¥ 0 0 ¥ 0 0 Commercial facilities other than office buildings 236 1 977 1 Condominiums 317 1 0 0 Others * 18 — 200 — Total ¥ 571 — ¥ 1,177 — * For the “Others,” the number of properties are omitted. Six months ended September 30, 2016 Six months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs due to decline in estimated future cash flows: Office buildings ¥ 758 3 ¥ 0 0 Commercial facilities other than office buildings 0 0 187 2 Condominiums 69 1 0 0 Others * 11 — 108 — Total ¥ 838 — ¥ 295 — * For the “Others,” the number of properties are omitted. For the three months ended September 30, 2016 and 2017, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥845 million and ¥387 million, respectively, which were reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows. Three months ended September 30, 2016 Three months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs of the assets held for sale: Office buildings ¥ 0 0 ¥ 0 0 Commercial facilities other than office buildings 0 0 0 0 Condominiums 0 0 0 0 Others * 18 — 200 — Total ¥ 18 — ¥ 200 — * For the “Others,” the number of properties are omitted. Three months ended September 30, 2016 Three months ended September 30, 2017 Amount (Millions of yen) The number of Amount (Millions of yen) The number of Write-downs Office buildings ¥ 758 3 ¥ 0 0 Commercial facilities other than office buildings 0 0 187 2 Condominiums 69 1 0 0 Others * 0 — 0 — Total ¥ 827 — ¥ 187 — * For the “Others,” the number of properties are omitted. |
Per Share Data (Tables)
Per Share Data (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Reconciliation of Differences Between Basic and Diluted Earnings Per Share (EPS) | Reconciliation of the differences between basic and diluted earnings per share (EPS) in the six and three months ended September 30, 2016 and 2017 is as follows: During the six months ended September 30, 2016, the diluted EPS calculation excludes stock options for 2,739 thousand shares, as they were antidilutive. During the six months ended September 30, 2017, the diluted EPS calculation excludes stock options for 356 thousand shares, as they were antidilutive. During the three months ended September 30, 2016, the diluted EPS calculation excludes stock options for 1,801 thousand shares, as they were antidilutive. During the three months ended September 30, 2017, there were no stock options which were antidilutive. Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Net Income attributable to ORIX Corporation Shareholders ¥ 142,150 ¥ 165,970 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Net Income attributable to ORIX Corporation Shareholders ¥ 65,381 ¥ 76,258 Thousands of Shares Six months ended September 30, 2016 Six months ended September 30, 2017 Weighted-average shares 1,309,302 1,282,567 Effect of dilutive securities— Exercise of stock options 1,171 1,178 Weighted-average shares for diluted EPS computation 1,310,473 1,283,745 Thousands of Shares Three months ended September 30, 2016 Three months ended September 30, 2017 Weighted-average shares 1,309,143 1,279,276 Effect of dilutive securities— Exercise of stock options 1,227 1,277 Weighted-average shares for diluted EPS computation 1,310,370 1,280,553 Yen Six months ended September 30, 2016 Six months ended September 30, 2017 Earnings per share for net income attributable to ORIX Corporation shareholders: Basic ¥ 108.57 ¥ 129.40 Diluted ¥ 108.47 ¥ 129.29 Yen Three months ended September 30, 2016 Three months ended September 30, 2017 Earnings per share for net income attributable to ORIX Corporation shareholders: Basic ¥ 49.94 ¥ 59.61 Diluted ¥ 49.89 ¥ 59.55 Note: The Company’s shares held through the Board Incentive Plan Trust are included in the number of treasury stock shares to be deducted in calculation of the weighted-average shares for EPS computation. (1,907,951 and 2,055,862 shares for the six months ended September 30, 2016 and 2017, 2,066,751 and 2,003,201 shares for the three months ended September 30, 2016 and 2017) |
Derivative Financial Instrume46
Derivative Financial Instruments and Hedging (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Effect of Derivative Instruments on Consolidated Statements of Income, Pre-tax | The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (894 ) Finance revenues/Interest expense ¥ 1 — ¥ 0 Foreign exchange contracts 827 Other (income) and expense, net (32 ) — 0 Foreign currency swap agreements (2,038 ) Finance revenues/Interest expense/ Other (income) and expense, net 517 Other (income) and expense, net 51 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (28 ) Finance revenues/Interest expense ¥ 28 Finance revenues/Interest expense Foreign exchange contracts 18,927 Other (income) and expense, net (18,927 ) Other (income) and expense, net Foreign currency swap agreements 1,476 Other (income) and expense, net (1,476 ) Other (income) and expense, net Foreign currency long-term debt 56 Other (income) and expense, net (56 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ 46,415 Gains on sales of subsidiaries and ¥ 257 — ¥ 0 Borrowings and bonds in local currency 23,439 — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (85 ) Other (income) and expense, net Futures (2,082 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts 27,780 Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (25 ) Other (income) and expense, net Options held/written and other 405 Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the six months ended September 30, 2016 (see Note 15 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ (185 ) Finance revenues/Interest expense ¥ 118 — ¥ 0 Foreign exchange contracts (188 ) Other (income) and expense, net (2 ) — 0 Foreign currency swap agreements 1,432 Finance revenues/Interest expense/Other (income) and expense, net 848 Other (income) and expense, net (111 ) (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (13 ) Finance revenues/Interest expense ¥ 13 Finance revenues/Interest expense Foreign exchange contracts (3,125 ) Other (income) and expense, net 3,125 Other (income) and expense, net Foreign currency swap agreements 990 Other (income) and expense, net (990 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ (23,576 ) Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ (3,705 ) — ¥ 0 Borrowings and bonds in local currency (10,197 ) — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 698 Other (income) and expense, net Futures (2,511 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts (14,377 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (26 ) Other (income) and expense, net Options held/written and other 266 Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the six months ended September 30, 2017 (see Note 15 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ 1,317 — ¥ 0 — ¥ 0 Foreign exchange contracts 63 Other (income) and expense, net (19 ) — 0 Foreign currency swap agreements (769 ) Finance revenues/Interest expense /Other (income) and expense, net 394 Other (income) and expense, net 68 (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ (15 ) Finance revenues/Interest expense ¥ 15 Finance revenues/Interest expense Foreign exchange contracts 2,248 Other (income) and expense, net (2,248 ) Other (income) and expense, net Foreign currency swap agreements (1,556 ) Other (income) and expense, net 1,555 Other (income) and expense, net Foreign currency long-term debt (22 ) Other (income) and expense, net 22 Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ 5,536 Gains on sales of subsidiaries and affiliates and liquidation losses, net ¥ (194 ) — ¥ 0 Borrowings and bonds in local currency 2,620 — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 9 Other (income) and expense, net Futures (4,110 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts 5,617 Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (48 ) Other (income) and expense, net Options held/written and other (920 ) Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the three months ended September 30, 2016 (see Note 15 “Life Insurance Operations”). The effect of derivative instruments on the consolidated statements of income, pre-tax, (1) Cash flow hedges Gains (losses) recognized in other comprehensive income on derivative (effective portion) Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Interest rate swap agreements ¥ 22 Finance revenues/Interest expense ¥ 2 — ¥ 0 Foreign exchange contracts (54 ) — 0 — 0 Foreign currency swap agreements 33 Finance revenues/Interest expense/ Other (income) and expense, net 88 Other (income) and expense, net (33 ) (2) Fair value hedges Gains (losses) recognized in income on derivative and other Gains (losses) recognized in income on hedged item Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 0 — ¥ 0 — Foreign exchange contracts (1,633 ) Other (income) and expense, net 1,633 Other (income) and expense, net Foreign currency swap agreements 210 Other (income) and expense, net (210 ) Other (income) and expense, net (3) Hedges of net investment in foreign operations Gains (losses) recognized in other comprehensive income on derivative and others (effective portion) Gains (losses) reclassified from accumulated (effective portion) Gains (losses) recognized in income on derivative and others (ineffective portion and amount excluded from effectiveness testing) Millions of yen Consolidated statements of income location Millions of yen Consolidated statements of income location Millions of yen Foreign exchange contracts ¥ (8,011 ) — ¥ 0 — ¥ 0 Borrowings and bonds in local currency (4,707 ) — 0 — 0 (4) Derivatives not designated as hedging instruments Gains (losses) recognized in income on derivative Millions of yen Consolidated statements of income location Interest rate swap agreements ¥ 396 Other (income) and expense, net Futures 13 Gains on investment securities and dividends Life insurance premiums and related investment income * Foreign exchange contracts (11,664 ) Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net Credit derivatives held (12 ) Other (income) and expense, net Options held/written and other 929 Other (income) and expense, net Life insurance premiums and related investment income * * Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the three months ended September 30, 2017 (see Note 15 “Life Insurance Operations”). |
Notional Amounts of Derivative Instruments and Other, Fair Values of Derivative Instruments and Other before Offsetting | Notional amounts of derivative instruments and other, fair values of derivative instruments and other before offsetting at March 31, 2017 and September 30, 2017 are as follows. March 31, 2017 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance sheets location Fair value Consolidated balance sheets location Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 243,197 ¥ 71 Other Assets ¥ 4,391 Other Liabilities Futures, foreign exchange contracts 745,481 6,373 Other Assets 8,021 Other Liabilities Foreign currency swap agreements 74,482 4,545 Other Assets 1,677 Other Liabilities Foreign currency long-term debt 280,266 0 — 0 — Derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 8,258 ¥ 233 Other Assets ¥ 176 Other Liabilities Options held/written and other * 224,064 5,804 Other Assets 1,071 Other Liabilities Futures, foreign exchange contracts * 565,981 5,973 Other Assets 800 Other Liabilities Credit derivatives held 6,942 0 — 159 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥46,063 million, futures contracts of ¥52,791 million and foreign exchange contracts of ¥16,690 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2017, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥1,708 million, ¥694 million and ¥57 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥37 million and ¥45 million at March 31, 2017, respectively. September 30, 2017 Asset derivatives Liability derivatives Notional amount Fair value Consolidated balance Fair value Consolidated balance Millions of yen Millions of yen Millions of yen Derivatives designated as hedging instruments and other: Interest rate swap agreements ¥ 238,751 ¥ 61 Other Assets ¥ 4,469 Other Liabilities Futures, foreign exchange contracts 584,683 835 Other Assets 11,554 Other Liabilities Foreign currency swap agreements 91,154 3,737 Other Assets 1,020 Other Liabilities Foreign currency long-term debt 354,105 0 — 0 — Derivatives not designated as hedging instruments: Interest rate swap agreements ¥ 18,468 ¥ 163 Other Assets ¥ 82 Other Liabilities Options held/written and other * 384,367 6,743 Other Assets 1,833 Other Liabilities Futures, foreign exchange contracts * 411,124 359 Other Assets 14,506 Other Liabilities Credit derivatives held 5,783 0 — 130 Other Liabilities * The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥42,006 million, futures contracts of ¥41,440 million and foreign exchange contracts of ¥13,533 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at September 30, 2017, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥776 million, ¥67 million and ¥18 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥1,917 million and ¥314 million at September 30, 2017, respectively. |
Offsetting Assets and Liabili47
Offsetting Assets and Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Gross Amounts Recognized, Gross Amounts Offset, and Net Amounts Presented in Consolidated Balance Sheets Regarding to Derivative Assets and Liabilities and Other Assets and Liabilities | The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheets regarding to derivative assets and liabilities and other assets and liabilities as of March 31, 2017 and September 30, 2017 are as follows. March 31, 2017 Millions of yen Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Gross amounts not offset in the Net amount Financial instruments Collateral received/pledged Derivative assets ¥ 22,999 ¥ (4,019 ) ¥ 18,980 ¥ 0 ¥ (3,132 ) ¥ 15,848 Reverse repurchase, securities borrowing, and similar arrangements *2 3,582 (3,503 ) 79 0 0 79 Total assets ¥ 26,581 ¥ (7,522 ) ¥ 19,059 ¥ 0 ¥ (3,132 ) ¥ 15,927 Derivative liabilities ¥ 16,295 ¥ (4,019 ) ¥ 12,276 ¥ (1,105 ) ¥ (398 ) ¥ 10,773 Repurchase, securities lending, and similar arrangements *2 3,503 (3,503 ) 0 0 0 0 Total liabilities ¥ 19,798 ¥ (7,522 ) ¥ 12,276 ¥ (1,105 ) ¥ (398 ) ¥ 10,773 September 30, 2017 Millions of yen Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Gross amounts not offset in the Net amount Financial instruments Collateral received/pledged Derivative assets ¥ 11,898 ¥ (1,109 ) ¥ 10,789 ¥ (732 ) ¥ 0 ¥ 10,057 Reverse repurchase, securities borrowing, and similar arrangements *2 1,168 (1,168 ) 0 0 0 0 Total assets ¥ 13,066 ¥ (2,277 ) ¥ 10,789 ¥ (732 ) ¥ 0 ¥ 10,057 Derivative liabilities ¥ 33,594 ¥ (1,109 ) ¥ 32,485 ¥ (1,532 ) ¥ (2,807 ) ¥ 28,146 Repurchase, securities lending, and similar arrangements *2 1,176 (1,168 ) 8 0 0 8 Total liabilities ¥ 34,770 ¥ (2,277 ) ¥ 32,493 ¥ (1,532 ) ¥ (2,807 ) ¥ 28,154 *1 The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. *2 Reverse repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Gross Amounts Recognized, Gross Amounts Offset, and Net Amounts Presented in Consolidated Balance Sheets Regarding to Derivative Assets and Liabilities and Other Assets and Liabilities | The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheets regarding to derivative assets and liabilities and other assets and liabilities as of March 31, 2017 and September 30, 2017 are as follows. March 31, 2017 Millions of yen Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Gross amounts not offset in the Net amount Financial instruments Collateral received/pledged Derivative assets ¥ 22,999 ¥ (4,019 ) ¥ 18,980 ¥ 0 ¥ (3,132 ) ¥ 15,848 Reverse repurchase, securities borrowing, and similar arrangements *2 3,582 (3,503 ) 79 0 0 79 Total assets ¥ 26,581 ¥ (7,522 ) ¥ 19,059 ¥ 0 ¥ (3,132 ) ¥ 15,927 Derivative liabilities ¥ 16,295 ¥ (4,019 ) ¥ 12,276 ¥ (1,105 ) ¥ (398 ) ¥ 10,773 Repurchase, securities lending, and similar arrangements *2 3,503 (3,503 ) 0 0 0 0 Total liabilities ¥ 19,798 ¥ (7,522 ) ¥ 12,276 ¥ (1,105 ) ¥ (398 ) ¥ 10,773 September 30, 2017 Millions of yen Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Gross amounts not offset in the Net amount Financial instruments Collateral received/pledged Derivative assets ¥ 11,898 ¥ (1,109 ) ¥ 10,789 ¥ (732 ) ¥ 0 ¥ 10,057 Reverse repurchase, securities borrowing, and similar arrangements *2 1,168 (1,168 ) 0 0 0 0 Total assets ¥ 13,066 ¥ (2,277 ) ¥ 10,789 ¥ (732 ) ¥ 0 ¥ 10,057 Derivative liabilities ¥ 33,594 ¥ (1,109 ) ¥ 32,485 ¥ (1,532 ) ¥ (2,807 ) ¥ 28,146 Repurchase, securities lending, and similar arrangements *2 1,176 (1,168 ) 8 0 0 8 Total liabilities ¥ 34,770 ¥ (2,277 ) ¥ 32,493 ¥ (1,532 ) ¥ (2,807 ) ¥ 28,154 *1 The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. *2 Reverse repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Estimated Fair Value of Finan48
Estimated Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Information about Carrying Amount of Financial Instruments Reported in Consolidated Balance Sheets and Related Market or Fair Value | The following information is provided to help readers gain an understanding of the relationship between carrying amount of financial instruments reported in the Company’s consolidated balance sheets and the related market or fair value. For derivative financial instruments, see Note 3 “Fair Value Measurements.” The disclosures do not include investment in direct financing leases, investment in affiliates, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts. March 31, 2017 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 569,074 ¥ 569,074 ¥ 37,500 ¥ 531,574 ¥ 0 Cash and cash equivalents 1,039,870 1,039,870 1,039,870 0 0 Restricted cash 93,342 93,342 93,342 0 0 Installment loans (net of allowance for probable loan losses) 2,767,016 2,783,466 0 254,708 2,528,758 Investment in securities: Practicable to estimate fair value 1,307,618 1,332,941 93,995 1,086,629 152,317 Not practicable to estimate fair value *1 149,820 149,820 0 0 0 Other Assets: Time deposits 9,375 9,375 0 9,375 0 Derivative assets *2 18,980 18,980 0 0 0 Reinsurance recoverables (Investment contracts) 72,615 73,967 0 0 73,967 Liabilities: Short-term debt ¥ 283,467 ¥ 283,467 ¥ 0 ¥ 283,467 ¥ 0 Deposits 1,614,608 1,615,655 0 1,615,655 0 Policy liabilities and Policy account balances (Investment contracts) 287,463 288,372 0 0 288,372 Long-term debt 3,854,984 3,862,815 0 1,184,261 2,678,554 Other Liabilities: Derivative liabilities *2 12,276 12,276 0 0 0 *1 The fair value of investment securities of ¥149,820 million was not estimated, as it was not practical. *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, 2017 Millions of yen Carrying amount Estimated fair value Level 1 Level 2 Level 3 Assets: Trading securities ¥ 487,839 ¥ 487,839 ¥ 40,177 ¥ 447,662 ¥ 0 Cash and cash equivalents 1,185,961 1,185,961 1,185,961 0 0 Restricted cash 88,242 88,242 88,242 0 0 Installment loans (net of allowance for probable loan losses) 2,778,817 2,812,435 0 156,826 2,655,609 Investment in securities: Practicable to estimate fair value 1,212,124 1,237,888 75,834 994,613 167,441 Not practicable to estimate fair value *1 149,370 149,370 0 0 0 Other Assets: Time deposits 3,246 3,246 0 3,246 0 Derivative assets *2 10,789 10,789 0 0 0 Reinsurance recoverables (Investment contracts) 72,060 73,328 0 0 73,328 Liabilities: Short-term debt ¥ 335,665 ¥ 335,665 ¥ 0 ¥ 335,665 ¥ 0 Deposits 1,698,428 1,700,247 0 1,700,247 0 Policy liabilities and Policy account balances (Investment contracts) 295,490 296,250 0 0 296,250 Long-term debt 3,867,551 3,870,833 0 1,134,558 2,736,275 Other Liabilities: Derivative liabilities *2 32,485 32,485 0 0 0 *1 The fair value of investment securities of ¥149,370 million was not estimated, as it was not practical. *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.” |
Commitments, Guarantees and C49
Commitments, Guarantees and Contingent Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Minimum Future Rentals on Non-Cancelable Operating Leases | The minimum future rentals on non-cancelable Millions of yen March 31, 2017 September 30, 2017 Within one year ¥ 6,713 ¥ 7,625 More than one year 57,805 59,313 Total ¥ 64,518 ¥ 66,938 |
Amounts Due of Certain Computer Systems Operated and Maintained under Non-cancelable Contracts with Third-party Service Providers | As of March 31, 2017 and September 30, 2017, the amounts due are as follows: Millions of yen March 31, 2017 September 30, 2017 Within one year ¥ 5,255 ¥ 4,984 More than one year 9,142 7,839 Total ¥ 14,397 ¥ 12,823 |
Summary of Potential Future Payments, Book Value Recorded as Guarantee Liabilities of Guarantee Contracts Outstanding and Maturity of Longest Guarantee Contracts | The following table represents the summary of potential future payments, book value recorded as guarantee liabilities of the guarantee contracts outstanding and maturity of the longest guarantee contracts as of March 31, 2017 and September 30, 2017: March 31, 2017 September 30, 2017 Millions of yen Fiscal year Millions of yen Fiscal year Guarantees Potential future payment Book value of guarantee liabilities Maturity of the longest contract Potential future payment Book value of guarantee liabilities Maturity of the longest contract Corporate loans ¥ 451,597 ¥ 7,274 2024 ¥ 489,575 ¥ 7,208 2025 Transferred loans 167,799 1,300 2047 167,806 1,306 2048 Consumer loans 249,719 29,641 2018 281,054 33,066 2028 Housing loans 26,448 5,362 2048 19,176 5,224 2048 Other 935 307 2025 6,413 322 2025 Total ¥ 896,498 ¥ 43,884 — ¥ 964,024 ¥ 47,126 — |
Assets Provided as Collateral for Short-term and Long-term Debt Payables to Financial Institutions | Other than the assets of the consolidated VIEs pledged as collateral for financing described in Note 8 “Variable Interest Entities”, the Company and certain subsidiaries provide the following assets as collateral for the short-term and long-term debt payables to financial institutions as of March 31, 2017 and September 30, 2017: Millions of yen March 31, 2017 September 30, 2017 Minimum lease payments, loans and investment in operating leases ¥ 102,339 ¥ 71,533 Investment in securities 172,084 185,417 Property under facility operations 7,532 9,324 Other assets and other 17,643 21,551 Total ¥ 299,598 ¥ 287,825 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Financial Information of Segments | Financial information of the segments for the six months ended September 30, 2016 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 51,995 ¥ 134,820 ¥ 104,084 ¥ 539,042 ¥ 151,095 ¥ 240,643 ¥ 1,221,679 Segment profits 19,874 19,655 35,447 52,041 35,507 51,510 214,034 Financial information of the segments for the six months ended September 30, 2017 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 53,983 ¥ 137,048 ¥ 95,755 ¥ 774,421 ¥ 219,505 ¥ 238,641 ¥ 1,519,353 Segment profits 22,049 20,438 43,991 38,927 42,950 81,397 249,752 Financial information of the segments for the three months ended September 30, 2016 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 27,005 ¥ 67,621 ¥ 46,746 ¥ 281,040 ¥ 97,089 ¥ 114,822 ¥ 634,323 Segment profits 11,380 9,763 11,844 21,086 22,975 21,644 98,692 Financial information of the segments for the three months ended September 30, 2017 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Segment revenues ¥ 28,566 ¥ 68,760 ¥ 49,235 ¥ 351,894 ¥ 106,908 ¥ 122,815 ¥ 728,178 Segment profits 11,824 10,544 11,158 22,270 20,936 38,527 115,259 Segment assets information as of March 31, 2017 and September 30, 2017 is as follows: Millions of yen Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total March 31, 2017 ¥ 1,032,152 ¥ 752,513 ¥ 657,701 ¥ 768,675 ¥ 3,291,631 ¥ 2,454,200 ¥8,956,872 September 30, 2017 1,001,476 782,512 628,885 863,640 3,209,131 2,630,516 9,116,160 |
Reconciliation of Segment Totals to Consolidated Financial Statement Amounts | The reconciliation of segment totals to consolidated financial statement amounts is as follows: Millions of yen Six months ended September 30, 2016 Six months ended September 30, 2017 Segment revenues: Total revenues for segments ¥ 1,221,679 ¥ 1,519,353 Revenues related to corporate assets 6,967 6,949 Revenues related to assets of certain VIEs 2,231 1,838 Revenues from inter-segment transactions (9,752 ) (10,344 ) Total consolidated revenues ¥ 1,221,125 ¥ 1,517,796 Segment profits: Total profits for segments ¥ 214,034 ¥ 249,752 Corporate gains (losses) 307 (569 ) Gains (losses) related to assets or liabilities of certain VIEs 105 (2 ) Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests 4,789 3,431 Total consolidated income before income taxes ¥ 219,235 ¥ 252,612 Millions of yen Three months ended September 30, 2016 Three months ended September 30, 2017 Segment revenues: Total revenues for segments ¥ 634,323 ¥ 728,178 Revenues related to corporate assets 2,666 2,850 Revenues related to assets of certain VIEs 1,161 505 Revenues from inter-segment transactions (4,970 ) (6,034 ) Total consolidated revenues ¥ 633,180 ¥ 725,499 Segment profits: Total profits for segments ¥ 98,692 ¥ 115,259 Corporate gains (losses) (192 ) (529 ) Gains related to assets or liabilities of certain VIEs 155 69 Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests 2,146 2,202 Total consolidated income before income taxes ¥ 100,801 ¥ 117,001 Millions of yen March 31, 2017 September 30, 2017 Segment assets: Total assets for segments ¥ 8,956,872 ¥ 9,116,160 Cash and cash equivalents, restricted cash 1,133,212 1,274,203 Allowance for doubtful receivables on direct financing leases and probable loan losses (59,227 ) (57,976 ) Trade notes, accounts and other receivable 283,427 276,278 Other corporate assets 672,562 702,238 Assets of certain VIEs 245,049 115,133 Total consolidated assets ¥ 11,231,895 ¥ 11,426,036 |
Geographical Revenues and Income before Income Taxes | The following information represents geographical revenues and income before income taxes, which are attributed to geographic areas, based on the country location of the Company and its subsidiaries. For the six months ended September 30, 2016 Millions of yen Six Months Ended September 30, 2016 Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 967,471 ¥ 87,298 ¥ 166,356 ¥ 1,221,125 Income before Income Taxes 166,471 16,032 36,732 219,235 For the six months ended September 30, 2017 Millions of yen Six Months Ended September 30, 2017 Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 1,270,724 ¥ 57,546 ¥ 189,526 ¥ 1,517,796 Income before Income Taxes 168,992 26,893 56,727 252,612 For the three months ended September 30, 2016 Millions of yen Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 511,782 ¥ 41,917 ¥ 79,481 ¥ 633,180 Income before Income Taxes * 78,786 6,369 15,646 100,801 For the three months ended September 30, 2017 Millions of yen Japan The Americas *1 Other *2*3 Total Total Revenues ¥ 600,013 ¥ 27,688 ¥ 97,798 ¥ 725,499 Income before Income Taxes * 76,594 14,473 25,934 117,001 *1 Mainly the United States *2 Mainly Asia, Europe, Australasia and Middle East *3 Robeco, one of the Company’s subsidiaries domiciled in the Netherlands, conducts principally an asset management business. Due to the integrated nature of such business with its customer base spread across the world, “Other” locations include the total revenues and the income before income taxes of Robeco for the six and three months ended September 30, 2016 and 2017, respectively. The revenues of Robeco aggregated on a legal entity basis were ¥47,184 million in the Americas and ¥36,867 million in Other for the six months ended September 30, 2016, and ¥50,433 million in the Americas and ¥40,320 million in Other for the six months ended September 30, 2017, and ¥22,787 million in the Americas and ¥17,095 million in Other for the three months ended September 30, 2016, and ¥25,263 million in the Americas and ¥21,111 million in Other for the three months ended September 30, 2017. |
Overview of Accounting Princi51
Overview of Accounting Principles Utilized - Additional Information (Detail) | 6 Months Ended |
Sep. 30, 2017 | |
Goodwill | Maximum | |
Significant Accounting Policies [Line Items] | |
Goodwill amortization period | 20 years |
Significant Accounting and Re52
Significant Accounting and Reporting Policies - Additional Information (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||||
A maximum lag period of recognizing the results of subsidiaries and affiliates | 3 months | ||||
Investment in operating leases less accumulated depreciation | ¥ 584,821 | ¥ 584,821 | ¥ 566,946 | ||
Effective tax rate | 32.90% | 33.00% | 32.90% | 33.00% | |
National corporation tax | 24.00% | 24.00% | 24.00% | 24.00% | |
Inhabitant tax | 4.00% | 4.00% | 4.00% | 4.00% | |
Deductible enterprise tax | 4.00% | 4.00% | 4.00% | 4.00% | |
Statutory income tax rate | 31.70% | 31.70% | 31.70% | 31.70% | |
Increase in additional paid-in capital had such stock splits made prior to October 1, 2001 | ¥ 24,674 | ||||
Loans held for sale in installment loans | ¥ 55,481 | 55,481 | 22,548 | ||
Loans held for sale measured at fair value | 14,735 | 14,735 | 19,232 | ||
Accumulated depreciation | 96,531 | 96,531 | 85,255 | ||
Residential condominiums under development | 75,270 | 75,270 | 60,920 | ||
Finished goods | 54,612 | 54,612 | 56,943 | ||
Write-down on residential condominiums under development | 64 | ¥ 587 | 88 | ¥ 636 | |
Goodwill | 390,736 | 390,736 | 341,178 | ||
Other intangible assets | 419,806 | 419,806 | 396,051 | ||
Office Facilities | |||||
Significant Accounting Policies [Line Items] | |||||
Accumulated depreciation | ¥ 50,630 | ¥ 50,630 | ¥ 47,534 | ||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Income tax settlement by tax authority | 50.00% |
Fair Value Measurements (Record
Fair Value Measurements (Recorded Amounts of Major Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | ¥ 34,031 | ¥ 24,894 | |
Derivative assets, gross amounts recognized | 13,066 | 26,581 | |
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | (2,277) | (7,522) | |
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 10,789 | 19,059 | |
Other assets | 15,242 | 22,116 | |
Derivative liabilities, gross amounts recognized | 34,770 | 19,798 | |
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | (2,277) | (7,522) | |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 32,493 | 12,276 | |
Policy Liabilities and Policy Account Balances | 517,019 | 605,520 | |
Reinsurance Recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Other assets | 15,242 | 22,116 | |
Variable Annuity and Variable Life Insurance Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Policy Liabilities and Policy Account Balances | 517,019 | 605,520 | |
Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 22,442 | 15,400 | |
Available-for-sale securities | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 22,442 | 15,400 | |
Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 6,920 | 7,453 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | [1] | 0 | 0 |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | [1] | 0 | 0 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | [1] | 0 | 0 |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | [1] | 0 | 0 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, net amounts presented in the consolidated balance sheets, assets | [1] | 0 | 0 |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | [1] | 0 | 0 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 11,898 | 22,999 | |
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | (1,109) | (4,019) |
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 10,789 | 18,980 | |
Other assets | 15,242 | 22,116 | |
Total financial assets | 1,627,470 | 1,826,639 | |
Derivative liabilities, gross amounts recognized | 33,594 | 16,295 | |
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | (1,109) | (4,019) |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 32,485 | 12,276 | |
Policy Liabilities and Policy Account Balances | 517,019 | 605,520 | |
Total financial liabilities | 550,613 | 621,815 | |
Fair Value, Measurements, Recurring | Interest rate swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 224 | 304 | |
Derivative liabilities, gross amounts recognized | 4,551 | 4,567 | |
Fair Value, Measurements, Recurring | Futures, foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 1,194 | 12,346 | |
Derivative liabilities, gross amounts recognized | 26,060 | 8,821 | |
Fair Value, Measurements, Recurring | Options held/written and other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 6,743 | 5,804 | |
Derivative liabilities, gross amounts recognized | 1,833 | 1,071 | |
Fair Value, Measurements, Recurring | Reinsurance Recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Other assets | [3] | 15,242 | 22,116 |
Fair Value, Measurements, Recurring | Credit derivatives held/written | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities, gross amounts recognized | 130 | 159 | |
Fair Value, Measurements, Recurring | Variable Annuity and Variable Life Insurance Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Policy Liabilities and Policy Account Balances | [4] | 517,019 | 605,520 |
Fair Value, Measurements, Recurring | Loans Held-for-Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [5] | 14,735 | 19,232 |
Fair Value, Measurements, Recurring | Trading securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 487,839 | 569,074 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 1,062,105 | 1,165,417 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [6] | 379,539 | 393,644 |
Fair Value, Measurements, Recurring | Available-for-sale securities | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [7] | 79,446 | 93,034 |
Fair Value, Measurements, Recurring | Available-for-sale securities | Japanese and foreign government bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 280,085 | 345,612 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [8] | 160,391 | 168,822 |
Fair Value, Measurements, Recurring | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 963 | 1,087 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | CMBS and RMBS in the Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 82,456 | 98,501 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Other asset-backed securities and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 79,225 | 64,717 | |
Fair Value, Measurements, Recurring | Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 35,651 | 27,801 | |
Fair Value, Measurements, Recurring | Other securities | Investment funds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [9] | 35,651 | 27,801 |
Fair Value, Measurements, Recurring | Foreign currency swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 3,737 | 4,545 | |
Derivative liabilities, gross amounts recognized | 1,020 | 1,677 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 75 | 734 | |
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | 0 | 0 |
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 0 | 0 | |
Other assets | 0 | 0 | |
Total financial assets | 116,086 | 132,229 | |
Derivative liabilities, gross amounts recognized | 2,121 | 165 | |
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | 0 | 0 |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 0 | 0 | |
Policy Liabilities and Policy Account Balances | 0 | 0 | |
Total financial liabilities | 2,121 | 165 | |
Fair Value, Measurements, Recurring | Level 1 | Interest rate swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 0 | 0 | |
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Futures, foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 75 | 734 | |
Derivative liabilities, gross amounts recognized | 2,121 | 165 | |
Fair Value, Measurements, Recurring | Level 1 | Options held/written and other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 0 | 0 | |
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Reinsurance Recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Other assets | [3] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Credit derivatives held/written | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Variable Annuity and Variable Life Insurance Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Policy Liabilities and Policy Account Balances | [4] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Loans Held-for-Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [5] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Trading securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 40,177 | 37,500 | |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 75,834 | 93,995 | |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [6] | 2,648 | 11,464 |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [7] | 68,289 | 79,783 |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Japanese and foreign government bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 4,897 | 2,748 | |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [8] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | CMBS and RMBS in the Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale securities | Other asset-backed securities and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Other securities | Investment funds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [9] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign currency swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 0 | 0 | |
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 6,553 | 17,032 | |
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | 0 | 0 |
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 0 | 0 | |
Other assets | 0 | 0 | |
Total financial assets | 1,323,431 | 1,514,744 | |
Derivative liabilities, gross amounts recognized | 31,473 | 16,130 | |
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | 0 | 0 |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 0 | 0 | |
Policy Liabilities and Policy Account Balances | 0 | 0 | |
Total financial liabilities | 31,473 | 16,130 | |
Fair Value, Measurements, Recurring | Level 2 | Interest rate swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 224 | 304 | |
Derivative liabilities, gross amounts recognized | 4,551 | 4,567 | |
Fair Value, Measurements, Recurring | Level 2 | Futures, foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 1,119 | 11,612 | |
Derivative liabilities, gross amounts recognized | 23,939 | 8,656 | |
Fair Value, Measurements, Recurring | Level 2 | Options held/written and other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 1,473 | 571 | |
Derivative liabilities, gross amounts recognized | 1,833 | 1,071 | |
Fair Value, Measurements, Recurring | Level 2 | Reinsurance Recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Other assets | [3] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Credit derivatives held/written | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities, gross amounts recognized | 130 | 159 | |
Fair Value, Measurements, Recurring | Level 2 | Variable Annuity and Variable Life Insurance Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Policy Liabilities and Policy Account Balances | [4] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Loans Held-for-Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [5] | 14,735 | 19,232 |
Fair Value, Measurements, Recurring | Level 2 | Trading securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 447,662 | 531,574 | |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 854,481 | 946,906 | |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [6] | 374,106 | 380,562 |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [7] | 11,157 | 13,251 |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Japanese and foreign government bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 275,188 | 342,864 | |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [8] | 160,391 | 168,822 |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | CMBS and RMBS in the Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 32,876 | 40,643 | |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | Other asset-backed securities and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 763 | 764 | |
Fair Value, Measurements, Recurring | Level 2 | Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Other securities | Investment funds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [9] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Foreign currency swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 3,737 | 4,545 | |
Derivative liabilities, gross amounts recognized | 1,020 | 1,677 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 5,270 | 5,233 | |
Derivative assets, gross amounts offset in the consolidated balance sheets, assets | [2] | 0 | 0 |
Derivative assets, net amounts presented in the consolidated balance sheets, assets | 0 | 0 | |
Other assets | 15,242 | 22,116 | |
Total financial assets | 187,953 | 179,666 | |
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities | [2] | 0 | 0 |
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities | 0 | 0 | |
Policy Liabilities and Policy Account Balances | 517,019 | 605,520 | |
Total financial liabilities | 517,019 | 605,520 | |
Fair Value, Measurements, Recurring | Level 3 | Interest rate swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 0 | 0 | |
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Futures, foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 0 | 0 | |
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Options held/written and other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 5,270 | 5,233 | |
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Reinsurance Recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Other assets | [3] | 15,242 | 22,116 |
Fair Value, Measurements, Recurring | Level 3 | Credit derivatives held/written | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities, gross amounts recognized | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Variable Annuity and Variable Life Insurance Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Policy Liabilities and Policy Account Balances | [4] | 517,019 | 605,520 |
Fair Value, Measurements, Recurring | Level 3 | Loans Held-for-Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [5] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 131,790 | 124,516 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [6] | 2,785 | 1,618 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [7] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Japanese and foreign government bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [8] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 963 | 1,087 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | CMBS and RMBS in the Americas | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 49,580 | 57,858 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Other asset-backed securities and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 78,462 | 63,953 | |
Fair Value, Measurements, Recurring | Level 3 | Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | 35,651 | 27,801 | |
Fair Value, Measurements, Recurring | Level 3 | Other securities | Investment funds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value measured on recurring basis investments | [9] | 35,651 | 27,801 |
Fair Value, Measurements, Recurring | Level 3 | Foreign currency swap agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets, gross amounts recognized | 0 | 0 | |
Derivative liabilities, gross amounts recognized | ¥ 0 | ¥ 0 | |
[1] | 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." | ||
[2] | It represents the amount offset under counterparty netting of derivative assets and liabilities. | ||
[3] | 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 ¥22,116 million and ¥15,242 million as of March 31, 2017 and September 30, 2017, respectively. For the effect of changes in the fair value of those reinsurance recoverables on earnings during the six and three months ended September 30, 2016 and 2017, see Note 15 "Life Insurance Operations." | ||
[4] | Certain subsidiaries elected the fair value option for the entire variable annuity and variable life insurance contracts held in order to match the earnings recognized for the changes in the fair value of policy liabilities and policy account balances with earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and the changes in the fair value of reinsurance contracts. 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 ¥605,520 million and ¥517,019 million as of March 31, 2017 and September 30, 2017, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings during the six and three months ended September 30, 2016 and 2017, see Note 15 "Life Insurance Operations." | ||
[5] | A certain subsidiary elected the fair value option on the loans held for sale originated on or after October 1, 2011. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association ("Fannie Mae") or institutional investors. Included in "Other (income) and expense, net" in the consolidated statements of income were a gain of ¥681 million and a loss of ¥577 million from the change in the fair value of the loans for the six months ended September 30, 2016 and 2017. Included in "Other (income) and expense, net" in the consolidated statements of income were gains of ¥783 million and ¥5 million from the change in the fair value of the loans for the three months ended September 30, 2016 and 2017. No gains or losses were recognized in earnings during the six months ended September 30, 2016 and 2017 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, 2017, were ¥18,362 million and ¥19,232 million, respectively, and the amount of aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥870 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of September 30, 2017, were ¥14,199 million and ¥14,735 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥536 million. As of March 31, 2017 and September 30, 2017, there were no loans that are 90 days or more past due, in non-accrual status, or both. | ||
[6] | A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale securities. Included in "Gains on investment securities and dividends" in the consolidated statements of income were losses of ¥63 million and ¥24 million from the change in the fair value of those investments for the six and three months ended September 30, 2017. The amounts of aggregate fair value elected the fair value option were ¥1,026 million and ¥2,648 million as of March 31, 2017 and September 30, 2017, respectively. | ||
[7] | A certain subsidiary elected the fair value option for certain investments in equity securities included in available-for-sale securities. Included in "Gains on investment securities and dividends" in the consolidated statements of income were gains of ¥345 million and ¥881 million from the change in the fair value of those investments for the six months ended September 30, 2016 and 2017. Included in "Gains on investment securities and dividends" in the consolidated statements of income were gains of ¥448 million and ¥574 million from the change in the fair value of those investments for the three months ended September 30, 2016 and 2017. The amounts of aggregate fair value elected the fair value option were ¥15,400 million and ¥22,442 million as of March 31, 2017 and September 30, 2017, respectively. | ||
[8] | A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale securities. Included in "Gains on investment securities and dividends" in the consolidated statements of income were a loss of ¥13 million and a gain of ¥3 million from the change in the fair value of those investments for the six months ended September 30, 2016 and 2017. Included in "Gains on investment securities and dividends" in the consolidated statements of income were a loss of ¥7 million and a gain of ¥12 million from the change in the fair value of those investments for the three months ended September 30, 2016 and 2017. The amounts of aggregate fair value elected the fair value option were ¥1,015 million and ¥2,021 million as of March 31, 2017 and September 30, 2017, respectively. | ||
[9] | Certain subsidiaries elected the fair value option for certain investments in investment funds included in other securities. Included in "Gains on investment securities and dividends" in the consolidated statements of income were gains of ¥615 million and ¥665 million from the change in the fair value of those investments for the six months ended September 30, 2016 and 2017. Included in "Gains on investment securities and dividends" in the consolidated statements of income were gains of ¥289 million and ¥342 million from the change in the fair value of those investments for the three months ended September 30, 2016 and 2017. The amounts of aggregate fair value were ¥7,453 million and ¥6,920 million as of March 31, 2017 and September 30, 2017, respectively. |
Fair Value Measurements (Reco54
Fair Value Measurements (Recorded Amounts of Major Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gains (losses) from changes in instrument-specific credit risk | ¥ 0 | ¥ 0 | |||
Aggregate unpaid loan principal balance | ¥ 14,199 | 14,199 | ¥ 18,362 | ||
Aggregate loan fair value | 14,735 | 14,735 | 19,232 | ||
Amount by which aggregate fair value of loan exceeds aggregate unpaid principal balance | 536 | 536 | 870 | ||
Investment funds fair value | 34,031 | 34,031 | 24,894 | ||
Other assets | 15,242 | 15,242 | 22,116 | ||
Policy Liabilities and Policy Account Balances | 517,019 | 517,019 | 605,520 | ||
Loans Held-for-Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gains (losses) from change in fair value | 5 | ¥ 783 | (577) | 681 | |
Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gains (losses) from change in fair value | 574 | 448 | 881 | 345 | |
Investment funds fair value | 22,442 | 22,442 | 15,400 | ||
Other securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Investment funds fair value | 6,920 | 6,920 | 7,453 | ||
Reinsurance Recoverable | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other assets | 15,242 | 15,242 | 22,116 | ||
Variable Annuity and Variable Life Insurance Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Policy Liabilities and Policy Account Balances | 517,019 | 517,019 | 605,520 | ||
Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gains (losses) from change in fair value | 342 | 289 | 665 | 615 | |
Foreign Corporate Debt Securities | Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gains (losses) from change in fair value | (24) | (63) | |||
Investment funds fair value | 2,648 | 2,648 | 1,026 | ||
Equity securities | Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Investment funds fair value | 22,442 | 22,442 | 15,400 | ||
Foreign government bond securities | Available-for-sale securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Gains (losses) from change in fair value | 12 | ¥ (7) | 3 | ¥ (13) | |
Investment funds fair value | ¥ 2,021 | ¥ 2,021 | ¥ 1,015 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | ¥ 179,666 | ||||||||
Beginning Balance | ¥ 795,001 | ||||||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 16,545 | |||||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 0 | |||||||
Gains or losses (realized/ unrealized), total | 16,545 | ||||||||
Purchases | [3] | 0 | |||||||
Sales | 0 | ||||||||
Settlements | [4] | (63,022) | |||||||
Transfers in and/or out of Level 3 (net) | [5] | 0 | |||||||
Ending Balance | ¥ 187,953 | 187,953 | |||||||
Ending Balance | ¥ 715,434 | 715,434 | |||||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 16,545 | |||||||
Other asset-backed securities and debt securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 57,628 | 63,953 | |||||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 33 | 61 | ||||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 752 | 1,105 | ||||||
Gains or losses (realized/ unrealized), total | 785 | 1,166 | |||||||
Purchases | [3] | 35,884 | 41,122 | ||||||
Sales | (14,226) | (21,646) | |||||||
Settlements | [4] | (1,609) | (6,133) | ||||||
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | ||||||
Ending Balance | 78,462 | 78,462 | |||||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 59 | 55 | ||||||
Other assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 18,070 | 45,217 | 22,116 | 37,855 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1] | (3,802) | (9,633) | (8,908) | (4,270) | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 0 | 0 | 0 | 0 | ||||
Gains or losses (realized/ unrealized), total | (3,802) | (9,633) | (8,908) | (4,270) | |||||
Purchases | [3] | 1,405 | 2,135 | 3,016 | 4,453 | ||||
Sales | 0 | 0 | 0 | 0 | |||||
Settlements | (431) | [4] | (165) | [4] | (982) | [4] | (484) | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | 0 | ||||
Ending Balance | 15,242 | 37,554 | 15,242 | 37,554 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | (3,802) | (9,634) | (8,908) | (4,271) | ||||
Variable Annuity and Variable Life Insurance Contracts | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | [6] | 557,914 | 750,915 | 605,520 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1],[6] | (7,060) | 1,908 | (15,898) | |||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2],[6] | 0 | 0 | 0 | |||||
Gains or losses (realized/ unrealized), total | [6] | (7,060) | 1,908 | (15,898) | |||||
Purchases | [3],[6] | 0 | 0 | 0 | |||||
Sales | [6] | 0 | 0 | 0 | |||||
Settlements | [4],[6] | (47,955) | (33,573) | (104,399) | |||||
Transfers in and/or out of Level 3 (net) | [5],[6] | 0 | 0 | 0 | |||||
Ending Balance | [6] | 517,019 | 715,434 | 517,019 | 715,434 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1],[6] | (7,060) | 1,908 | (15,898) | |||||
Reinsurance Recoverable | Other assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 18,070 | [7] | 45,217 | [7] | 22,116 | [7] | 37,855 | ||
Gains or losses (realized/ unrealized), included in earnings | [1] | (3,802) | [7] | (9,633) | [7] | (8,908) | [7] | (4,270) | |
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 0 | [7] | 0 | [7] | 0 | [7] | 0 | |
Gains or losses (realized/ unrealized), total | (3,802) | [7] | (9,633) | [7] | (8,908) | [7] | (4,270) | ||
Purchases | [3] | 1,405 | [7] | 2,135 | [7] | 3,016 | [7] | 4,453 | |
Sales | 0 | [7] | 0 | [7] | 0 | [7] | 0 | ||
Settlements | (431) | [4],[7] | (165) | [4],[7] | (982) | [4],[7] | (484) | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | [7] | 0 | [7] | 0 | [7] | 0 | |
Ending Balance | [7] | 15,242 | 37,554 | 15,242 | 37,554 | ||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | (3,802) | [7] | (9,634) | [7] | (8,908) | [7] | (4,271) | |
Insurance Contract, Rights and Obligations | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 557,914 | 750,915 | 605,520 | ||||||
Gains or losses (realized/ unrealized), included in earnings | [1] | (7,060) | 1,908 | (15,898) | |||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 0 | 0 | 0 | |||||
Gains or losses (realized/ unrealized), total | (7,060) | 1,908 | (15,898) | ||||||
Purchases | [3] | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | ||||||
Settlements | [4] | (47,955) | (33,573) | (104,399) | |||||
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | |||||
Ending Balance | 517,019 | 715,434 | 517,019 | 715,434 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | (7,060) | 1,908 | (15,898) | |||||
Available-for-sale securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 117,169 | 96,760 | 124,516 | 99,522 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 1,668 | 36 | 1,696 | 223 | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | (133) | 2,518 | 895 | (3,320) | ||||
Gains or losses (realized/ unrealized), total | 1,535 | 2,554 | 2,591 | (3,097) | |||||
Purchases | [3] | 37,399 | 11,700 | 44,545 | 21,082 | ||||
Sales | (16,347) | 0 | (25,114) | (1,666) | |||||
Settlements | (7,966) | [4] | (5,327) | [4] | (14,748) | [4] | (10,154) | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | 0 | ||||
Ending Balance | 131,790 | 105,687 | 131,790 | 105,687 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 124 | 43 | 120 | 59 | ||||
Available-for-sale securities | Corporate debt securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 2,069 | 505 | 1,618 | 5 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 0 | 0 | 0 | 0 | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 4 | 2 | 5 | 2 | ||||
Gains or losses (realized/ unrealized), total | 4 | 2 | 5 | 2 | |||||
Purchases | [3] | 900 | 1,000 | 1,400 | 1,500 | ||||
Sales | 0 | 0 | 0 | 0 | |||||
Settlements | (188) | [4] | 0 | [4] | (238) | [4] | 0 | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | 0 | ||||
Ending Balance | 2,785 | 1,507 | 2,785 | 1,507 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 0 | 0 | 0 | 0 | ||||
Available-for-sale securities | Specified bonds issued by SPEs in Japan | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 1,016 | 2,178 | 1,087 | 3,461 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 5 | 0 | 5 | 1 | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | (1) | (11) | (2) | (18) | ||||
Gains or losses (realized/ unrealized), total | 4 | (11) | 3 | (17) | |||||
Purchases | [3] | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | (1,200) | |||||
Settlements | (57) | [4] | (906) | [4] | (127) | [4] | (983) | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | 0 | ||||
Ending Balance | 963 | 1,261 | 963 | 1,261 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 5 | 1 | 5 | 1 | ||||
Available-for-sale securities | CMBS and RMBS in the Americas | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 56,456 | 41,537 | 57,858 | 38,493 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 1,630 | 19 | 1,630 | 178 | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | (888) | (304) | (213) | (3,990) | ||||
Gains or losses (realized/ unrealized), total | 742 | (285) | 1,417 | (3,812) | |||||
Purchases | [3] | 615 | 9,523 | 2,023 | 16,913 | ||||
Sales | (2,121) | 0 | (3,468) | (466) | |||||
Settlements | (6,112) | [4] | (1,987) | [4] | (8,250) | [4] | (2,340) | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | 0 | ||||
Ending Balance | 49,580 | 48,788 | 49,580 | 48,788 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 60 | 18 | 60 | 14 | ||||
Available-for-sale securities | Other asset-backed securities and debt securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 52,540 | 57,563 | |||||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 17 | 44 | ||||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 2,831 | 686 | ||||||
Gains or losses (realized/ unrealized), total | 2,848 | 730 | |||||||
Purchases | [3] | 1,177 | 2,669 | ||||||
Sales | 0 | 0 | |||||||
Settlements | (2,434) | [4] | (6,831) | [5] | |||||
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | ||||||
Ending Balance | 54,131 | 54,131 | |||||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 24 | 44 | ||||||
Other securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 26,457 | 16,296 | 27,801 | 17,751 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 1,886 | 523 | 1,881 | 851 | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | (21) | (338) | 368 | (1,876) | ||||
Gains or losses (realized/ unrealized), total | 1,865 | 185 | 2,249 | (1,025) | |||||
Purchases | [3] | 12,423 | 209 | 13,796 | 288 | ||||
Sales | (5,094) | (1,369) | (8,195) | (1,693) | |||||
Settlements | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | 0 | ||||
Ending Balance | 35,651 | 15,321 | 35,651 | 15,321 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 1,886 | 511 | 1,881 | 839 | ||||
Other securities | Investment funds | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 26,457 | 27,801 | 17,751 | ||||||
Gains or losses (realized/ unrealized), included in earnings | [1] | 1,886 | 1,881 | 851 | |||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | (21) | 368 | (1,876) | |||||
Gains or losses (realized/ unrealized), total | 1,865 | 2,249 | (1,025) | ||||||
Purchases | [3] | 12,423 | 13,796 | 288 | |||||
Sales | (5,094) | (8,195) | (1,693) | ||||||
Settlements | 0 | [4] | 0 | [4] | 0 | [5] | |||
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | |||||
Ending Balance | 35,651 | 15,321 | 35,651 | 15,321 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | 1,886 | 1,881 | 839 | |||||
Derivative Financial Instruments, Assets and Liabilities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 3,961 | 9,687 | 5,233 | 8,208 | |||||
Gains or losses (realized/ unrealized), included in earnings | [1] | (790) | (458) | (1,920) | 133 | ||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 0 | 0 | 0 | 0 | ||||
Gains or losses (realized/ unrealized), total | (790) | (458) | (1,920) | 133 | |||||
Purchases | [3] | 2,108 | 848 | 3,372 | 2,493 | ||||
Sales | 0 | 0 | 0 | 0 | |||||
Settlements | (9) | [4] | (204) | [4] | (1,415) | [4] | (961) | [5] | |
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | 0 | ||||
Ending Balance | 5,270 | 9,873 | 5,270 | 9,873 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | (790) | (458) | (1,920) | 133 | ||||
Derivative Financial Instruments, Assets and Liabilities | Options held/written and other | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning Balance | 3,961 | 5,233 | 8,208 | ||||||
Gains or losses (realized/ unrealized), included in earnings | [1] | (790) | (1,920) | 133 | |||||
Gains or losses (realized/ unrealized), included in other comprehensive income | [2] | 0 | 0 | 0 | |||||
Gains or losses (realized/ unrealized), total | (790) | (1,920) | 133 | ||||||
Purchases | [3] | 2,108 | 3,372 | 2,493 | |||||
Sales | 0 | 0 | 0 | ||||||
Settlements | (9) | [4] | (1,415) | [4] | (961) | [5] | |||
Transfers in and/or out of Level 3 (net) | [5] | 0 | 0 | 0 | |||||
Ending Balance | 5,270 | ¥ 9,873 | 5,270 | 9,873 | |||||
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period | [1] | ¥ (790) | ¥ (1,920) | ¥ 133 | |||||
[1] | Principally, gains and losses from available-for-sale securities are included in "Gains on investment securities and dividends", "Write-downs of securities" or "Life insurance premiums and related investment income"; other securities are included in "Gains on investment securities and dividends" and derivative assets and liabilities (net) are included in "Other (income) and expense, net," respectively. Additionally, for available-for-sale securities, amortization of interest recognized in finance revenues is included in these columns. | ||||||||
[2] | Unrealized gains and losses from available-for-sale securities are included in "Net change of unrealized gains (losses) on investment in securities" and "Net change of foreign currency translation adjustments." Additionally, unrealized gains and losses from other securities are included mainly 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] | The amount reported in "Transfers in and/or out of Level 3 (net)" is the fair value at the beginning of quarter during which the transfers occur. | ||||||||
[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. | ||||||||
[7] | "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." |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - JPY (¥) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Available-for-sale securities | ||||
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items] | ||||
Transfers in or out of Level 3 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
Fair Value Measurements (Reco57
Fair Value Measurements (Recorded Amounts of Major Assets Measured at Fair Value on Nonrecurring Basis) (Detail) - Fair Value, Measurements, Nonrecurring - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ¥ 8,405 | ¥ 50,723 |
Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 6,748 | 12,472 |
Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 1,657 | 22,525 |
Certain Investment in Affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 15,726 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 1 | Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 1 | Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 1 | Certain Investment in Affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 2 | Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 2 | Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Level 2 | Certain Investment in Affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 8,405 | 50,723 |
Level 3 | Real Estate Collateral Dependent Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 6,748 | 12,472 |
Level 3 | Investment in Operating Leases and Properties under Facility Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ¥ 1,657 | 22,525 |
Level 3 | Certain Investment in Affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ¥ 15,726 |
Fair Value Measurements (Inform
Fair Value Measurements (Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) - JPY (¥) ¥ in Millions | 6 Months Ended | ||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 187,953 | ¥ 179,666 | |||||
Fair Value | ¥ 715,434 | ¥ 795,001 | |||||
Valuation Technique(s) | Business enterprise value multiples | ||||||
Variable Annuity and Variable Life Insurance Contracts | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | [1] | ¥ 517,019 | ¥ 557,914 | ¥ 605,520 | 715,434 | ¥ 750,915 | |
Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Mortality rate | ||||||
Weighted Average Discount Rate | 1.10% | 1.00% | |||||
Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Lapse rate | ||||||
Weighted Average Discount Rate | 16.60% | 14.70% | |||||
Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Annuitization rate (guaranteed minimum annuity benefit) | ||||||
Weighted Average Discount Rate | 80.10% | 82.70% | |||||
Variable Annuity and Variable Life Insurance Contracts | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 517,019 | ¥ 605,520 | |||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 0.10% | 0.10% | |||||
Reinsurance Recoverable | Mortality Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Mortality rate | ||||||
Weighted Average Discount Rate | 1.10% | 1.00% | |||||
Reinsurance Recoverable | Lapse Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Lapse rate | ||||||
Weighted Average Discount Rate | 17.10% | 14.90% | |||||
Reinsurance Recoverable | Annuitization Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Annuitization rate (guaranteed minimum annuity benefit) | ||||||
Weighted Average Discount Rate | 99.00% | 99.20% | |||||
Reinsurance Recoverable | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 15,242 | ¥ 22,116 | |||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 0.10% | 0.10% | |||||
Available-for-sale securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 131,790 | 117,169 | ¥ 124,516 | 105,687 | 96,760 | 99,522 | |
Available-for-sale securities | Corporate debt securities | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 2,785 | ¥ 1,613 | |||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 0.90% | 1.10% | |||||
Available-for-sale securities | Corporate debt securities | Appraisals/Broker Quotes Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 5 | ||||||
Valuation Technique(s) | Appraisals/Broker quotes | ||||||
Available-for-sale securities | Specified bonds issued by SPEs in Japan | Appraisals/Broker Quotes Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 963 | ¥ 1,087 | |||||
Valuation Technique(s) | Appraisals/Broker quotes | ||||||
Available-for-sale securities | CMBS and RMBS in the Americas | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Probability of default | ||||||
Weighted Average Discount Rate | 2.60% | 3.60% | |||||
Available-for-sale securities | CMBS and RMBS in the Americas | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 49,580 | ¥ 57,858 | |||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 17.70% | 18.00% | |||||
Available-for-sale securities | Other asset-backed securities and debt securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Significant Unobservable Inputs | Probability of default | ||||||
Weighted Average Discount Rate | 1.00% | 0.80% | |||||
Available-for-sale securities | Other asset-backed securities and debt securities | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 13,164 | ¥ 13,890 | |||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 9.80% | 8.90% | |||||
Available-for-sale securities | Other asset-backed securities and debt securities | Appraisals/Broker Quotes Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 65,298 | ¥ 50,063 | |||||
Valuation Technique(s) | Appraisals/Broker quotes | ||||||
Other securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 35,651 | ¥ 26,457 | 27,801 | ¥ 15,321 | ¥ 16,296 | ¥ 17,751 | |
Other securities | Investment funds | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 894 | ||||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 8.60% | ||||||
Other securities | Investment funds | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 11,276 | ||||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 10.30% | ||||||
Other securities | Investment funds | Appraisals/Broker Quotes Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 7,614 | ¥ 15,705 | |||||
Valuation Technique(s) | Appraisals/Broker quotes | ||||||
Other securities | Investment funds | Internal Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 16,761 | ¥ 11,202 | |||||
Valuation Technique(s) | Internal cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 8.10% | 10.00% | |||||
Derivative assets | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 4,494 | ¥ 3,525 | |||||
Valuation Technique(s) | Discounted cash flows | ||||||
Significant Unobservable Inputs | Discount rate | ||||||
Weighted Average Discount Rate | 10.20% | 11.70% | |||||
Derivative assets | Appraisals/Broker Quotes Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair Value | ¥ 776 | ¥ 1,708 | |||||
Valuation Technique(s) | Appraisals/Broker quotes | ||||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.00% | 0.00% | |||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 1.50% | 1.50% | |||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.00% | 0.00% | |||||
Minimum | Variable Annuity and Variable Life Insurance Contracts | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.10% | 0.10% | |||||
Minimum | Reinsurance Recoverable | Mortality Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.00% | 0.00% | |||||
Minimum | Reinsurance Recoverable | Lapse Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 1.50% | 1.50% | |||||
Minimum | Reinsurance Recoverable | Annuitization Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.00% | 0.00% | |||||
Minimum | Reinsurance Recoverable | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.10% | 0.10% | |||||
Minimum | Available-for-sale securities | Corporate debt securities | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.40% | 0.50% | |||||
Minimum | Available-for-sale securities | CMBS and RMBS in the Americas | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.00% | 0.00% | |||||
Minimum | Available-for-sale securities | CMBS and RMBS in the Americas | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 6.40% | 6.40% | |||||
Minimum | Available-for-sale securities | Other asset-backed securities and debt securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.50% | 0.60% | |||||
Minimum | Available-for-sale securities | Other asset-backed securities and debt securities | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 1.00% | 1.00% | |||||
Minimum | Other securities | Investment funds | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 5.40% | ||||||
Minimum | Other securities | Investment funds | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 3.80% | ||||||
Minimum | Other securities | Investment funds | Internal Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.00% | 0.00% | |||||
Minimum | Derivative assets | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 1.00% | 10.00% | |||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 100.00% | 100.00% | |||||
Weighted Average Probability of default | 100.00% | ||||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 54.00% | 54.00% | |||||
Weighted Average Probability of default | 54.00% | ||||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 100.00% | 100.00% | |||||
Weighted Average Probability of default | 100.00% | ||||||
Maximum | Variable Annuity and Variable Life Insurance Contracts | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.50% | 0.50% | |||||
Weighted Average Probability of default | 0.50% | ||||||
Maximum | Reinsurance Recoverable | Mortality Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 100.00% | 100.00% | |||||
Maximum | Reinsurance Recoverable | Lapse Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 30.00% | 54.00% | |||||
Maximum | Reinsurance Recoverable | Annuitization Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 100.00% | 100.00% | |||||
Maximum | Reinsurance Recoverable | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 0.50% | 0.50% | |||||
Maximum | Available-for-sale securities | Corporate debt securities | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 1.70% | 1.60% | |||||
Maximum | Available-for-sale securities | CMBS and RMBS in the Americas | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 24.70% | 26.40% | |||||
Maximum | Available-for-sale securities | CMBS and RMBS in the Americas | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 20.00% | 22.60% | |||||
Maximum | Available-for-sale securities | Other asset-backed securities and debt securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 11.00% | 11.00% | |||||
Maximum | Available-for-sale securities | Other asset-backed securities and debt securities | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 51.20% | 51.20% | |||||
Maximum | Other securities | Investment funds | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 10.00% | ||||||
Maximum | Other securities | Investment funds | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 11.00% | ||||||
Maximum | Other securities | Investment funds | Internal Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 40.00% | 40.00% | |||||
Maximum | Derivative assets | Discounted Cash Flows Valuation Technique | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted Average Discount Rate | 15.00% | 15.00% | |||||
[1] | "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. |
Fair Value Measurements (Info59
Fair Value Measurements (Information about Valuation Techniques and Significant Unobservable Inputs Used in Valuation of Level Three Assets Measured at Fair Value on Nonrecurring Basis) (Detail) - JPY (¥) ¥ in Millions | 6 Months Ended | |
Sep. 30, 2017 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 8,405 | ¥ 50,723 |
Valuation Technique(s) | Business enterprise value multiples | |
Real Estate Collateral Dependent Loans | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 6,748 | ¥ 12,472 |
Valuation Technique(s) | Discounted cash flows | |
Significant Unobservable Inputs | Discount rate | |
Weighted Average Discount Rate | 10.50% | 10.50% |
Real Estate Collateral Dependent Loans | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Valuation Technique(s) | Direct capitalization | |
Significant Unobservable Inputs | Capitalization rate | |
Weighted Average Discount Rate | 10.90% | 10.90% |
Investment in operating leases and property under facility operations | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 1,381 | |
Valuation Technique(s) | Discounted cash flows | |
Significant Unobservable Inputs | Discount rate | |
Weighted Average Discount Rate | 9.00% | |
Investment in operating leases and property under facility operations | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 204 | |
Valuation Technique(s) | Direct capitalization | |
Significant Unobservable Inputs | Capitalization rate | |
Weighted Average Discount Rate | 8.70% | |
Investment in operating leases and property under facility operations | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 1,657 | ¥ 20,940 |
Valuation Technique(s) | Appraisals | |
Certain Investment in Affiliates | Market Price Method | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ¥ 15,726 | |
Valuation Technique(s) | Market price method | |
Minimum | Real Estate Collateral Dependent Loans | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.00% | 10.00% |
Minimum | Real Estate Collateral Dependent Loans | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.30% | 10.30% |
Minimum | Investment in operating leases and property under facility operations | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 6.80% | |
Minimum | Investment in operating leases and property under facility operations | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 8.50% | |
Maximum | Real Estate Collateral Dependent Loans | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.70% | 10.70% |
Maximum | Real Estate Collateral Dependent Loans | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 11.20% | 11.20% |
Maximum | Investment in operating leases and property under facility operations | Discounted Cash Flows Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.20% | |
Maximum | Investment in operating leases and property under facility operations | Direct Capitalization Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted Average Discount Rate | 10.00% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) - JPY (¥) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Bargain Purchase Gain | ¥ 0 | ¥ 4,287,000,000 | ¥ 5,802,000,000 | ||
Acquisitions consideration, cost of acquired entity paid in cash | 0 | 0 | |||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | ¥ 10,474,000,000 | ¥ 12,346,000,000 | 24,972,000,000 | 32,834,000,000 | |
Divestiture | |||||
Business Acquisition [Line Items] | |||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 10,474,000,000 | 12,346,000,000 | 24,972,000,000 | 32,834,000,000 | |
Divestiture | Investment and Operation Segment | |||||
Business Acquisition [Line Items] | |||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 8,681,000,000 | 9,533,000,000 | 9,184,000,000 | 28,908,000,000 | |
Divestiture | Overseas Business Segment | |||||
Business Acquisition [Line Items] | |||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | ¥ 1,793,000,000 | 1,239,000,000 | 13,760,000,000 | 2,352,000,000 | |
Divestiture | Corporate Financial Services | |||||
Business Acquisition [Line Items] | |||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | ¥ 1,301,000,000 | ¥ 2,028,000,000 | ¥ 1,301,000,000 |
Credit Quality of Financing R61
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Allowance for Credit Losses) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning balance | ¥ 60,759 | ¥ 58,507 | ¥ 59,227 | ¥ 60,071 | ||
Provision (reversal) | 3,359 | 4,049 | 7,998 | 6,743 | ||
Charge-offs | (5,160) | (5,398) | (8,480) | (8,326) | ||
Recoveries | 301 | 175 | 531 | 614 | ||
Other | [1] | (1,283) | (1,545) | (1,300) | (3,314) | |
Ending balance | 57,976 | 55,788 | 57,976 | 55,788 | ||
Allowance for credit losses, Individually Evaluated for Impairment | 17,869 | 19,410 | 17,869 | 19,410 | ¥ 20,068 | |
Allowance for credit losses, Not Individually Evaluated for Impairment | 40,107 | 36,378 | 40,107 | 36,378 | 39,159 | |
Financing receivables, Ending balance | 3,985,112 | 3,768,921 | 3,985,112 | 3,768,921 | 3,997,182 | |
Financing receivables, individually evaluated for impairment | 54,748 | 61,210 | 54,748 | 61,210 | 59,025 | |
Financing receivables, Not individually evaluated for impairment | 3,930,364 | 3,707,711 | 3,930,364 | 3,707,711 | 3,938,157 | |
Consumer borrowers | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning balance | 20,086 | 14,690 | 18,599 | 13,267 | ||
Provision (reversal) | 2,558 | 2,639 | 6,018 | 5,275 | ||
Charge-offs | (2,254) | (1,886) | (4,343) | (3,326) | ||
Recoveries | 258 | 79 | 376 | 238 | ||
Other | [1] | 3 | 197 | 1 | 265 | |
Ending balance | 20,651 | 15,719 | 20,651 | 15,719 | ||
Allowance for credit losses, Individually Evaluated for Impairment | 3,131 | 2,927 | 3,131 | 2,927 | 2,927 | |
Allowance for credit losses, Not Individually Evaluated for Impairment | 17,520 | 12,792 | 17,520 | 12,792 | 15,672 | |
Financing receivables, Ending balance | 1,676,208 | 1,540,255 | 1,676,208 | 1,540,255 | 1,616,009 | |
Financing receivables, individually evaluated for impairment | 18,409 | 14,942 | 18,409 | 14,942 | 16,667 | |
Financing receivables, Not individually evaluated for impairment | 1,657,799 | 1,525,313 | 1,657,799 | 1,525,313 | 1,599,342 | |
Corporate borrowers | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Individually Evaluated for Impairment | 11,415 | 11,415 | 12,679 | |||
Financing receivables, Ending balance | 1,072,208 | 1,072,208 | 1,152,354 | |||
Financing receivables, individually evaluated for impairment | 30,636 | 30,636 | 34,915 | |||
Purchased loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning balance | [2] | 5,831 | 7,703 | 6,061 | 8,233 | |
Provision (reversal) | [2] | (65) | (423) | (209) | (739) | |
Charge-offs | [2] | (1,002) | (186) | (1,110) | (510) | |
Recoveries | [2] | 39 | 17 | 63 | 220 | |
Other | [1],[2] | 2 | (1) | 0 | (94) | |
Ending balance | [2] | 4,805 | 7,110 | 4,805 | 7,110 | |
Allowance for credit losses, Individually Evaluated for Impairment | [2] | 3,323 | 5,123 | 3,323 | 5,123 | 4,462 |
Allowance for credit losses, Not Individually Evaluated for Impairment | [2] | 1,482 | 1,987 | 1,482 | 1,987 | 1,599 |
Financing receivables, Ending balance | [2] | 21,998 | 26,466 | 21,998 | 26,466 | 24,795 |
Financing receivables, individually evaluated for impairment | [2] | 5,703 | 9,291 | 5,703 | 9,291 | 7,443 |
Financing receivables, Not individually evaluated for impairment | [2] | 16,295 | 17,175 | 16,295 | 17,175 | 17,352 |
Non-recourse Loans | Corporate borrowers | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning balance | 2,647 | 1,722 | 2,951 | 1,800 | ||
Provision (reversal) | (86) | 187 | (268) | 261 | ||
Charge-offs | 0 | (1) | (115) | (2) | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Other | [1] | 16 | (30) | 9 | (181) | |
Ending balance | 2,577 | 1,878 | 2,577 | 1,878 | ||
Allowance for credit losses, Individually Evaluated for Impairment | 1,984 | 1,325 | 1,984 | 1,325 | 2,114 | |
Allowance for credit losses, Not Individually Evaluated for Impairment | 593 | 553 | 593 | 553 | 837 | |
Financing receivables, Ending balance | 87,454 | 74,008 | 87,454 | 74,008 | 88,726 | |
Financing receivables, individually evaluated for impairment | 5,443 | 5,399 | 5,443 | 5,399 | 6,032 | |
Financing receivables, Not individually evaluated for impairment | 82,011 | 68,609 | 82,011 | 68,609 | 82,694 | |
Other loans | Corporate borrowers | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning balance | 21,487 | 21,706 | 21,079 | 23,391 | ||
Provision (reversal) | 148 | 1,236 | 1,278 | 1,186 | ||
Charge-offs | (1,216) | (2,030) | (1,972) | (2,690) | ||
Recoveries | 16 | 79 | 90 | 145 | ||
Other | [1] | (1,390) | (1,661) | (1,430) | (2,702) | |
Ending balance | 19,045 | 19,330 | 19,045 | 19,330 | ||
Allowance for credit losses, Individually Evaluated for Impairment | 9,431 | 10,035 | 9,431 | 10,035 | 10,565 | |
Allowance for credit losses, Not Individually Evaluated for Impairment | 9,614 | 9,295 | 9,614 | 9,295 | 10,514 | |
Financing receivables, Ending balance | 984,754 | 973,953 | 984,754 | 973,953 | 1,063,628 | |
Financing receivables, individually evaluated for impairment | 25,193 | 31,578 | 25,193 | 31,578 | 28,883 | |
Financing receivables, Not individually evaluated for impairment | 959,561 | 942,375 | 959,561 | 942,375 | 1,034,745 | |
Direct Financing Leases | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning balance | 10,708 | 12,686 | 10,537 | 13,380 | ||
Provision (reversal) | 804 | 410 | 1,179 | 760 | ||
Charge-offs | (688) | (1,295) | (940) | (1,798) | ||
Recoveries | (12) | 0 | 2 | 11 | ||
Other | [1] | 86 | (50) | 120 | (602) | |
Ending balance | 10,898 | 11,751 | 10,898 | 11,751 | ||
Allowance for credit losses, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 | |
Allowance for credit losses, Not Individually Evaluated for Impairment | 10,898 | 11,751 | 10,898 | 11,751 | 10,537 | |
Financing receivables, Ending balance | 1,214,698 | 1,154,239 | 1,214,698 | 1,154,239 | 1,204,024 | |
Financing receivables, individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Financing receivables, Not individually evaluated for impairment | ¥ 1,214,698 | ¥ 1,154,239 | ¥ 1,214,698 | ¥ 1,154,239 | ¥ 1,204,024 | |
[1] | Other mainly includes foreign currency translation adjustments and a decrease in allowance related to sales of loans. | |||||
[2] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely. |
Credit Quality of Financing R62
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Impaired Loans) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | |
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | ¥ 54,748 | ¥ 59,025 | ¥ 61,210 | |
Unpaid Principal Balance | 53,487 | 57,652 | ||
Related Allowance | 17,869 | 20,068 | 19,410 | |
Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 18,409 | 16,667 | 14,942 | |
Unpaid Principal Balance | 17,635 | 15,731 | ||
Related Allowance | 3,131 | 2,927 | 2,927 | |
Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 30,636 | 34,915 | ||
Unpaid Principal Balance | 30,420 | 34,478 | ||
Related Allowance | 11,415 | 12,679 | ||
Purchased loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | [1] | 5,703 | 7,443 | 9,291 |
Unpaid Principal Balance | 5,432 | 7,443 | ||
Related Allowance | [1] | 3,323 | 4,462 | 5,123 |
Consumer - Housing loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 4,512 | 4,244 | ||
Unpaid Principal Balance | 4,043 | 3,752 | ||
Related Allowance | 1,240 | 1,202 | ||
Consumer-Card loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 4,079 | 4,102 | ||
Unpaid Principal Balance | 4,069 | 4,091 | ||
Related Allowance | 611 | 616 | ||
Consumer - Other | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 9,818 | 8,321 | ||
Unpaid Principal Balance | 9,523 | 7,888 | ||
Related Allowance | 1,280 | 1,109 | ||
Non-recourse Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,443 | 6,032 | 5,399 | |
Related Allowance | 1,984 | 2,114 | ¥ 1,325 | |
Non-recourse Loans | Corporate borrowers | Japan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 195 | 203 | ||
Unpaid Principal Balance | 195 | 202 | ||
Related Allowance | 34 | 35 | ||
Non-recourse Loans | Corporate borrowers | The Americas | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,248 | 5,829 | ||
Unpaid Principal Balance | 5,248 | 5,829 | ||
Related Allowance | 1,950 | 2,079 | ||
Corporate Real Estate Companies Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,886 | 7,212 | ||
Unpaid Principal Balance | 5,831 | 7,154 | ||
Related Allowance | 1,293 | 1,638 | ||
Other-Entertainment industry | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 1,650 | 1,736 | ||
Unpaid Principal Balance | 1,633 | 1,722 | ||
Related Allowance | 614 | 637 | ||
Other Corporate Loan | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 17,657 | 19,935 | ||
Unpaid Principal Balance | 17,513 | 19,571 | ||
Related Allowance | 7,524 | 8,290 | ||
Impaired Financing Receivables with No Related Allowance | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | [2] | 8,726 | 6,524 | |
Unpaid Principal Balance | [2] | 8,660 | 6,499 | |
Related Allowance | [2] | 0 | 0 | |
Impaired Financing Receivables with No Related Allowance | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 690 | 973 | ||
Unpaid Principal Balance | 632 | 956 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 7,925 | 5,439 | ||
Unpaid Principal Balance | 7,917 | 5,431 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Purchased loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 111 | 112 | ||
Unpaid Principal Balance | 111 | 112 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Consumer - Housing loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 690 | 973 | ||
Unpaid Principal Balance | 632 | 956 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Consumer-Card loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Consumer - Other | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Non-recourse Loans | Corporate borrowers | Japan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Non-recourse Loans | Corporate borrowers | The Americas | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Corporate Real Estate Companies Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 2,869 | 0 | ||
Unpaid Principal Balance | 2,869 | 0 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Other-Entertainment industry | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 8 | 8 | ||
Unpaid Principal Balance | 2 | 2 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with No Related Allowance | Other Corporate Loan | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,048 | 5,431 | ||
Unpaid Principal Balance | 5,046 | 5,429 | ||
Related Allowance | 0 | 0 | ||
Impaired Financing Receivables with Related Allowance | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | [3] | 46,022 | 52,501 | |
Unpaid Principal Balance | [3] | 44,827 | 51,153 | |
Related Allowance | [3] | 17,869 | 20,068 | |
Impaired Financing Receivables with Related Allowance | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 17,719 | 15,694 | ||
Unpaid Principal Balance | 17,003 | 14,775 | ||
Related Allowance | 3,131 | 2,927 | ||
Impaired Financing Receivables with Related Allowance | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 22,711 | 29,476 | ||
Unpaid Principal Balance | 22,503 | 29,047 | ||
Related Allowance | 11,415 | 12,679 | ||
Impaired Financing Receivables with Related Allowance | Purchased loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,592 | 7,331 | ||
Unpaid Principal Balance | 5,321 | 7,331 | ||
Related Allowance | 3,323 | 4,462 | ||
Impaired Financing Receivables with Related Allowance | Consumer - Housing loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 3,822 | 3,271 | ||
Unpaid Principal Balance | 3,411 | 2,796 | ||
Related Allowance | 1,240 | 1,202 | ||
Impaired Financing Receivables with Related Allowance | Consumer-Card loans | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 4,079 | 4,102 | ||
Unpaid Principal Balance | 4,069 | 4,091 | ||
Related Allowance | 611 | 616 | ||
Impaired Financing Receivables with Related Allowance | Consumer - Other | Consumer borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 9,818 | 8,321 | ||
Unpaid Principal Balance | 9,523 | 7,888 | ||
Related Allowance | 1,280 | 1,109 | ||
Impaired Financing Receivables with Related Allowance | Non-recourse Loans | Corporate borrowers | Japan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 195 | 203 | ||
Unpaid Principal Balance | 195 | 202 | ||
Related Allowance | 34 | 35 | ||
Impaired Financing Receivables with Related Allowance | Non-recourse Loans | Corporate borrowers | The Americas | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 5,248 | 5,829 | ||
Unpaid Principal Balance | 5,248 | 5,829 | ||
Related Allowance | 1,950 | 2,079 | ||
Impaired Financing Receivables with Related Allowance | Corporate Real Estate Companies Loans | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 3,017 | 7,212 | ||
Unpaid Principal Balance | 2,962 | 7,154 | ||
Related Allowance | 1,293 | 1,638 | ||
Impaired Financing Receivables with Related Allowance | Other-Entertainment industry | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 1,642 | 1,728 | ||
Unpaid Principal Balance | 1,631 | 1,720 | ||
Related Allowance | 614 | 637 | ||
Impaired Financing Receivables with Related Allowance | Other Corporate Loan | Corporate borrowers | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Individually Evaluated for Impairment | 12,609 | 14,504 | ||
Unpaid Principal Balance | 12,467 | 14,142 | ||
Related Allowance | ¥ 7,524 | ¥ 8,290 | ||
[1] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely. | |||
[2] | "With no related allowance recorded" represents impaired loans with no allowance for credit losses as all amounts are considered to be collectible. | |||
[3] | "With an allowance recorded" represents impaired loans with the allowance for credit losses as all or a part of the amounts are not considered to be collectible. |
Credit Quality of Financing R63
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Average Recorded Investments in Impaired Loans and Interest Income) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | ¥ 56,061 | ¥ 63,589 | ¥ 57,048 | ¥ 66,923 |
Interest income on impaired loans | 200 | 381 | 352 | 830 | |
Interest on impaired loans collected in cash | 151 | 337 | 278 | 750 | |
Consumer borrowers | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 17,745 | 14,748 | 17,385 | 14,533 |
Interest income on impaired loans | 149 | 65 | 243 | 143 | |
Interest on impaired loans collected in cash | 103 | 58 | 173 | 112 | |
Consumer borrowers | Consumer - Housing loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 4,250 | 4,262 | 4,248 | 4,345 |
Interest income on impaired loans | 96 | 22 | 134 | 54 | |
Interest on impaired loans collected in cash | 55 | 18 | 88 | 41 | |
Consumer borrowers | Consumer-Card loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 4,079 | 4,112 | 4,086 | 4,116 |
Interest income on impaired loans | 15 | 17 | 34 | 38 | |
Interest on impaired loans collected in cash | 14 | 16 | 27 | 30 | |
Consumer borrowers | Consumer - Other | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 9,416 | 6,374 | 9,051 | 6,072 |
Interest income on impaired loans | 38 | 26 | 75 | 51 | |
Interest on impaired loans collected in cash | 34 | 24 | 58 | 41 | |
Corporate borrowers | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 32,001 | 38,906 | 32,972 | 42,096 |
Interest income on impaired loans | 50 | 194 | 106 | 353 | |
Interest on impaired loans collected in cash | 47 | 157 | 102 | 304 | |
Corporate borrowers | Non-recourse Loans | Japan | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 197 | 286 | 199 | 1,880 |
Interest income on impaired loans | 1 | 2 | 3 | 4 | |
Interest on impaired loans collected in cash | 1 | 2 | 3 | 4 | |
Corporate borrowers | Non-recourse Loans | The Americas | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 5,262 | 5,320 | 5,451 | 5,543 |
Interest income on impaired loans | 0 | 13 | 6 | 35 | |
Interest on impaired loans collected in cash | 0 | 13 | 6 | 35 | |
Corporate borrowers | Corporate Real Estate Companies Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 6,215 | 7,822 | 6,547 | 8,085 |
Interest income on impaired loans | 14 | 65 | 27 | 114 | |
Interest on impaired loans collected in cash | 13 | 65 | 26 | 103 | |
Corporate borrowers | Other-Entertainment industry | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 1,669 | 2,224 | 1,691 | 2,292 |
Interest income on impaired loans | 14 | 19 | 28 | 38 | |
Interest on impaired loans collected in cash | 13 | 19 | 27 | 38 | |
Corporate borrowers | Other Corporate Loan | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 18,658 | 23,254 | 19,084 | 24,296 |
Interest income on impaired loans | 21 | 95 | 42 | 162 | |
Interest on impaired loans collected in cash | 20 | 58 | 40 | 124 | |
Purchased loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investments in impaired loans | [1] | 6,315 | 9,935 | 6,691 | 10,294 |
Interest income on impaired loans | 1 | 122 | 3 | 334 | |
Interest on impaired loans collected in cash | ¥ 1 | ¥ 122 | ¥ 3 | ¥ 334 | |
[1] | Average balances are calculated on the basis of fiscal beginning and quarter-end balances. |
Credit Quality of Financing R64
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Credit Quality Indicators) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | ¥ 3,985,112 | ¥ 3,997,182 | ¥ 3,768,921 | |
Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,214,698 | 1,204,024 | 1,154,239 | |
Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 840,034 | 846,290 | ||
Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 374,664 | 357,734 | ||
Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,676,208 | 1,616,009 | 1,540,255 | |
Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,336,192 | 1,279,532 | ||
Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 267,784 | 270,007 | ||
Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 72,232 | 66,470 | ||
Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,072,208 | 1,152,354 | ||
Corporate borrowers | Non-recourse Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 87,454 | 88,726 | 74,008 | |
Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 18,166 | 12,758 | ||
Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 69,288 | 75,968 | ||
Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 337,937 | 321,159 | ||
Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 92,566 | 95,926 | ||
Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 554,251 | 646,543 | ||
Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | [1] | 21,998 | 24,795 | ¥ 26,466 |
Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 3,906,366 | 3,916,835 | ||
Performing | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,201,961 | 1,192,424 | ||
Performing | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 833,303 | 839,848 | ||
Performing | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 368,658 | 352,576 | ||
Performing | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,646,538 | 1,589,620 | ||
Performing | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,329,989 | 1,273,603 | ||
Performing | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 262,073 | 264,559 | ||
Performing | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 54,476 | 51,458 | ||
Performing | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,041,572 | 1,117,439 | ||
Performing | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 17,971 | 12,555 | ||
Performing | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 64,040 | 70,139 | ||
Performing | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 332,051 | 313,947 | ||
Performing | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 90,916 | 94,190 | ||
Performing | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 536,594 | 626,608 | ||
Performing | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 16,295 | 17,352 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 54,748 | 59,025 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 18,409 | 16,667 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 4,512 | 4,244 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 4,079 | 4,102 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 9,818 | 8,321 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 30,636 | 34,915 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 195 | 203 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,248 | 5,829 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,886 | 7,212 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,650 | 1,736 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 17,657 | 19,935 | ||
Nonperforming Financing Receivable Individually Evaluated for Impairment | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,703 | 7,443 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 23,998 | 21,322 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 12,737 | 11,600 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 6,731 | 6,442 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 6,006 | 5,158 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 11,261 | 9,722 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,691 | 1,685 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,632 | 1,346 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 7,938 | 6,691 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 0 | 0 | ||
Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 78,746 | 80,347 | ||
Nonperforming | Direct Financing Leases | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 12,737 | 11,600 | ||
Nonperforming | Direct Financing Leases | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 6,731 | 6,442 | ||
Nonperforming | Direct Financing Leases | Overseas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 6,006 | 5,158 | ||
Nonperforming | Consumer borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 29,670 | 26,389 | ||
Nonperforming | Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 6,203 | 5,929 | ||
Nonperforming | Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,711 | 5,448 | ||
Nonperforming | Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 17,756 | 15,012 | ||
Nonperforming | Corporate borrowers | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 30,636 | 34,915 | ||
Nonperforming | Corporate borrowers | Non-recourse Loans | Japan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 195 | 203 | ||
Nonperforming | Corporate borrowers | Non-recourse Loans | The Americas | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,248 | 5,829 | ||
Nonperforming | Corporate borrowers | Corporate Real Estate Companies Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 5,886 | 7,212 | ||
Nonperforming | Corporate borrowers | Other-Entertainment industry | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 1,650 | 1,736 | ||
Nonperforming | Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | 17,657 | 19,935 | ||
Nonperforming | Purchased loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivable | ¥ 5,703 | ¥ 7,443 | ||
[1] | Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely. |
Credit Quality of Financing R65
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Nonaccrual and Past Due Financing Receivables) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | ¥ 60,031 | ¥ 55,964 |
Total Financing Receivables | 3,963,114 | 3,972,387 |
Non-Accrual | 51,770 | 49,045 |
Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 18,452 | 16,434 |
Total Financing Receivables | 1,214,698 | 1,204,024 |
Non-Accrual | 12,737 | 11,600 |
Direct Financing Leases | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 7,210 | 6,977 |
Total Financing Receivables | 840,034 | 846,290 |
Non-Accrual | 6,731 | 6,442 |
Direct Financing Leases | Overseas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 11,242 | 9,457 |
Total Financing Receivables | 374,664 | 357,734 |
Non-Accrual | 6,006 | 5,158 |
Consumer borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 21,447 | 19,404 |
Total Financing Receivables | 1,676,208 | 1,616,009 |
Non-Accrual | 14,635 | 12,971 |
Consumer borrowers | Consumer - Housing loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,510 | 5,734 |
Total Financing Receivables | 1,336,192 | 1,279,532 |
Non-Accrual | 3,441 | 3,420 |
Consumer borrowers | Consumer-Card loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,677 | 2,343 |
Total Financing Receivables | 267,784 | 270,007 |
Non-Accrual | 2,122 | 1,825 |
Consumer borrowers | Consumer - Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 13,260 | 11,327 |
Total Financing Receivables | 72,232 | 66,470 |
Non-Accrual | 9,072 | 7,726 |
Corporate borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 20,132 | 20,126 |
Total Financing Receivables | 1,072,208 | 1,152,354 |
Non-Accrual | 24,398 | 24,474 |
Corporate borrowers | Non-recourse Loans | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 0 | 0 |
Total Financing Receivables | 18,166 | 12,758 |
Non-Accrual | 0 | 0 |
Corporate borrowers | Non-recourse Loans | The Americas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,973 | 8,968 |
Total Financing Receivables | 69,288 | 75,968 |
Non-Accrual | 5,248 | 5,768 |
Corporate borrowers | Corporate Real Estate Companies Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 4,280 | 1,904 |
Total Financing Receivables | 337,937 | 321,159 |
Non-Accrual | 4,244 | 1,867 |
Corporate borrowers | Other-Entertainment industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 768 | 140 |
Total Financing Receivables | 92,566 | 95,926 |
Non-Accrual | 138 | 140 |
Corporate borrowers | Other Corporate Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 9,111 | 9,114 |
Total Financing Receivables | 554,251 | 646,543 |
Non-Accrual | 14,768 | 16,699 |
30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 15,509 | 16,169 |
30 To 89 Days Past Due | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,715 | 4,834 |
30 To 89 Days Past Due | Direct Financing Leases | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 479 | 535 |
30 To 89 Days Past Due | Direct Financing Leases | Overseas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,236 | 4,299 |
30 To 89 Days Past Due | Consumer borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 6,812 | 6,433 |
30 To 89 Days Past Due | Consumer borrowers | Consumer - Housing loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,069 | 2,314 |
30 To 89 Days Past Due | Consumer borrowers | Consumer-Card loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 555 | 518 |
30 To 89 Days Past Due | Consumer borrowers | Consumer - Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 4,188 | 3,601 |
30 To 89 Days Past Due | Corporate borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,982 | 4,902 |
30 To 89 Days Past Due | Corporate borrowers | Non-recourse Loans | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 0 | 0 |
30 To 89 Days Past Due | Corporate borrowers | Non-recourse Loans | The Americas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 725 | 4,028 |
30 To 89 Days Past Due | Corporate borrowers | Corporate Real Estate Companies Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 36 | 37 |
30 To 89 Days Past Due | Corporate borrowers | Other-Entertainment industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 630 | 0 |
30 To 89 Days Past Due | Corporate borrowers | Other Corporate Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 1,591 | 837 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 44,522 | 39,795 |
90 Days or More Past Due | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 12,737 | 11,600 |
90 Days or More Past Due | Direct Financing Leases | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 6,731 | 6,442 |
90 Days or More Past Due | Direct Financing Leases | Overseas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 6,006 | 5,158 |
90 Days or More Past Due | Consumer borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 14,635 | 12,971 |
90 Days or More Past Due | Consumer borrowers | Consumer - Housing loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 3,441 | 3,420 |
90 Days or More Past Due | Consumer borrowers | Consumer-Card loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 2,122 | 1,825 |
90 Days or More Past Due | Consumer borrowers | Consumer - Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 9,072 | 7,726 |
90 Days or More Past Due | Corporate borrowers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 17,150 | 15,224 |
90 Days or More Past Due | Corporate borrowers | Non-recourse Loans | Japan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 0 | 0 |
90 Days or More Past Due | Corporate borrowers | Non-recourse Loans | The Americas | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 5,248 | 4,940 |
90 Days or More Past Due | Corporate borrowers | Corporate Real Estate Companies Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 4,244 | 1,867 |
90 Days or More Past Due | Corporate borrowers | Other-Entertainment industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | 138 | 140 |
90 Days or More Past Due | Corporate borrowers | Other Corporate Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Due Financing Receivables | ¥ 7,520 | ¥ 8,277 |
Credit Quality of Financing R66
Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Troubled Debt Restructurings of Financing Receivables) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification outstanding recorded investment | ¥ 2,472 | ¥ 3,193 | ¥ 4,680 | ¥ 5,762 |
Post-modification outstanding recorded investment | 1,935 | 2,515 | 3,662 | 4,446 |
Financing Receivables Modification, Subsequently Defaulted Recorded Investment | 43 | 452 | 57 | 927 |
Consumer borrowers | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification outstanding recorded investment | 2,472 | 2,740 | 4,680 | 5,309 |
Post-modification outstanding recorded investment | 1,935 | 2,062 | 3,662 | 3,993 |
Financing Receivables Modification, Subsequently Defaulted Recorded Investment | 43 | 452 | 57 | 927 |
Consumer borrowers | Consumer - Housing loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification outstanding recorded investment | 121 | 11 | 132 | |
Post-modification outstanding recorded investment | 108 | 11 | 113 | |
Consumer borrowers | Consumer-Card loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification outstanding recorded investment | 544 | 516 | 1,075 | 1,105 |
Post-modification outstanding recorded investment | 430 | 418 | 853 | 908 |
Financing Receivables Modification, Subsequently Defaulted Recorded Investment | 12 | 11 | 16 | 31 |
Consumer borrowers | Consumer - Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification outstanding recorded investment | 1,928 | 2,103 | 3,594 | 4,072 |
Post-modification outstanding recorded investment | 1,505 | 1,536 | 2,798 | 2,972 |
Financing Receivables Modification, Subsequently Defaulted Recorded Investment | ¥ 31 | 441 | ¥ 41 | 896 |
Corporate borrowers | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification outstanding recorded investment | 453 | 453 | ||
Post-modification outstanding recorded investment | 453 | 453 | ||
Corporate borrowers | Other Corporate Loan | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification outstanding recorded investment | 453 | 453 | ||
Post-modification outstanding recorded investment | ¥ 453 | ¥ 453 |
Credit Quality of Financing R67
Credit Quality of Financing Receivables and the Allowance for Credit Losses - Additional Information (Detail) ¥ in Millions | Sep. 30, 2017JPY (¥)Property | Mar. 31, 2017JPY (¥)Property |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of foreclosed residential real estate properties | Property | 0 | 0 |
Residential mortgage loans in process of foreclosure | ¥ | ¥ 422 | ¥ 324 |
Investment in Securities (Summa
Investment in Securities (Summary of Investment in Securities) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Trading securities | [1] | ¥ 487,839 | ¥ 569,074 |
Available-for-sale securities | 1,062,105 | 1,165,417 | |
Held-to-maturity securities | 114,368 | 114,400 | |
Other securities | 185,021 | 177,621 | |
Total | ¥ 1,849,333 | ¥ 2,026,512 | |
[1] | The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥547,850 million and ¥476,478 million as of March 31, 2017 and September 30, 2017, respectively. |
Investment in Securities (Sum69
Investment in Securities (Summary of Investment in Securities) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Trading securities | [1] | ¥ 487,839 | ¥ 569,074 |
Variable Annuity and Variable Life Insurance Contracts | |||
Schedule of Investments [Line Items] | |||
Trading securities | ¥ 476,478 | ¥ 547,850 | |
[1] | The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥547,850 million and ¥476,478 million as of March 31, 2017 and September 30, 2017, respectively. |
Investment in Securities - Addi
Investment in Securities - Additional Information (Detail) ¥ in Millions | Sep. 30, 2017JPY (¥)Investment | Mar. 31, 2017JPY (¥)Investment |
Schedule of Investments [Line Items] | ||
Aggregate carrying amount of other securities accounted for under the cost method | ¥ 25,400 | ¥ 25,597 |
Aggregate carrying amount of other securities not evaluated for impairment | 25,381 | 25,396 |
Investment funds fair value | ¥ 34,031 | ¥ 24,894 |
Number of investment securities in an unrealized loss position | Investment | 322 | 325 |
CMBS and RMBS in the Americas, and other asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Non-credit components of other-than-temporary impairments, gross unrealized gains | ¥ 34 | ¥ 57 |
Non-credit components of other-than-temporary impairments, unrealized gain net of taxes | 22 | 36 |
Non-credit components of other-than-temporary impairments gains, accumulated other comprehensive income | 0 | 0 |
Non-credit components of other-than-temporary impairments losses, accumulated other comprehensive income | 0 | 0 |
Available-for-sale securities | ||
Schedule of Investments [Line Items] | ||
Investment funds fair value | 22,442 | 15,400 |
Available-for-sale securities | Government Securities | ||
Schedule of Investments [Line Items] | ||
Investment funds fair value | 2,021 | 1,015 |
Available-for-sale securities | Foreign Corporate Debt Securities | ||
Schedule of Investments [Line Items] | ||
Investment funds fair value | 2,648 | 1,026 |
Other securities | ||
Schedule of Investments [Line Items] | ||
Investment funds fair value | ¥ 6,920 | ¥ 7,453 |
Investment in Securities (Amort
Investment in Securities (Amortized Cost Basis Amounts, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Values of Available-for-Sale Securities and Held-to-Maturity Securities in Each Major Security Type) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | ¥ 1,020,958 | ¥ 1,119,756 |
Available-for-sale securities, Gross unrealized gains | 45,753 | 51,905 |
Available-for-sale securities, Gross unrealized losses | (4,606) | (6,244) |
Available-for-sale securities, Fair value | 1,062,105 | 1,165,417 |
Held-to-maturity securities, Amortized cost | 114,368 | 114,400 |
Amortized cost | 1,135,326 | 1,234,156 |
Gross unrealized gains | 71,517 | 77,228 |
Gross unrealized losses | (4,606) | (6,244) |
Fair value | 1,202,237 | 1,305,140 |
Japanese Government Bond Securities | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, Amortized cost | 114,368 | 114,400 |
Held-to-maturity securities, Gross unrealized gains | 25,764 | 25,323 |
Held-to-maturity securities, Gross unrealized losses | 0 | 0 |
Held-to-maturity securities, Fair value | 140,132 | 139,723 |
Japanese and foreign government bond securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 267,557 | 334,117 |
Available-for-sale securities, Gross unrealized gains | 12,537 | 12,321 |
Available-for-sale securities, Gross unrealized losses | (9) | (826) |
Available-for-sale securities, Fair value | 280,085 | 345,612 |
Japanese prefectural and foreign municipal bond securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 157,675 | 166,789 |
Available-for-sale securities, Gross unrealized gains | 3,644 | 3,034 |
Available-for-sale securities, Gross unrealized losses | (928) | (1,001) |
Available-for-sale securities, Fair value | 160,391 | 168,822 |
Corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 377,085 | 393,021 |
Available-for-sale securities, Gross unrealized gains | 3,847 | 3,606 |
Available-for-sale securities, Gross unrealized losses | (1,393) | (2,983) |
Available-for-sale securities, Fair value | 379,539 | 393,644 |
Specified bonds issued by SPEs in Japan | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 954 | 1,077 |
Available-for-sale securities, Gross unrealized gains | 9 | 10 |
Available-for-sale securities, Gross unrealized losses | 0 | 0 |
Available-for-sale securities, Fair value | 963 | 1,087 |
CMBS and RMBS in the Americas | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 80,201 | 95,700 |
Available-for-sale securities, Gross unrealized gains | 2,866 | 3,359 |
Available-for-sale securities, Gross unrealized losses | (611) | (558) |
Available-for-sale securities, Fair value | 82,456 | 98,501 |
Other asset-backed securities and debt securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 75,947 | 61,138 |
Available-for-sale securities, Gross unrealized gains | 3,395 | 3,957 |
Available-for-sale securities, Gross unrealized losses | (117) | (378) |
Available-for-sale securities, Fair value | 79,225 | 64,717 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized cost | 61,539 | 67,914 |
Available-for-sale securities, Gross unrealized gains | 19,455 | 25,618 |
Available-for-sale securities, Gross unrealized losses | (1,548) | (498) |
Available-for-sale securities, Fair value | ¥ 79,446 | ¥ 93,034 |
Investment in Securities (Infor
Investment in Securities (Information about Available-for-Sale Securities with Gross Unrealized Losses and Length of Time Individual Securities Have Been in Continuous Unrealized Loss Position) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | ¥ 207,507 | ¥ 254,867 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (3,208) | (5,471) |
Available-for-sale Securities, 12 months or more Fair value | 41,515 | 20,408 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (1,398) | (773) |
Available-for-sale Securities, Total Fair value | 249,022 | 275,275 |
Available-for-sale Securities, Total Gross unrealized losses | (4,606) | (6,244) |
Japanese and foreign government bond securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 2,720 | 33,991 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (9) | (826) |
Available-for-sale Securities, 12 months or more Fair value | 0 | 0 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | 0 | 0 |
Available-for-sale Securities, Total Fair value | 2,720 | 33,991 |
Available-for-sale Securities, Total Gross unrealized losses | (9) | (826) |
Japanese prefectural and foreign municipal bond securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 37,579 | 36,873 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (842) | (696) |
Available-for-sale Securities, 12 months or more Fair value | 3,855 | 6,202 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (86) | (305) |
Available-for-sale Securities, Total Fair value | 41,434 | 43,075 |
Available-for-sale Securities, Total Gross unrealized losses | (928) | (1,001) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 124,589 | 152,812 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (1,178) | (2,983) |
Available-for-sale Securities, 12 months or more Fair value | 19,607 | 0 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (215) | 0 |
Available-for-sale Securities, Total Fair value | 144,196 | 152,812 |
Available-for-sale Securities, Total Gross unrealized losses | (1,393) | (2,983) |
CMBS and RMBS in the Americas | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 10,777 | 20,238 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (316) | (485) |
Available-for-sale Securities, 12 months or more Fair value | 8,235 | 9,428 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (295) | (73) |
Available-for-sale Securities, Total Fair value | 19,012 | 29,666 |
Available-for-sale Securities, Total Gross unrealized losses | (611) | (558) |
Other asset-backed securities and debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 908 | 3,308 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (15) | (1) |
Available-for-sale Securities, 12 months or more Fair value | 2,515 | 3,991 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (102) | (377) |
Available-for-sale Securities, Total Fair value | 3,423 | 7,299 |
Available-for-sale Securities, Total Gross unrealized losses | (117) | (378) |
Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Less than 12 months Fair value | 30,934 | 7,645 |
Available-for-sale Securities, Less than 12 months Gross unrealized losses | (848) | (480) |
Available-for-sale Securities, 12 months or more Fair value | 7,303 | 787 |
Available-for-sale Securities, 12 months or more Gross unrealized losses | (700) | (18) |
Available-for-sale Securities, Total Fair value | 38,237 | 8,432 |
Available-for-sale Securities, Total Gross unrealized losses | ¥ (1,548) | ¥ (498) |
Investment in Securities (Total
Investment in Securities (Total Other-Than-Temporary Impairment with Offset for Amount of Total Other-Than-Temporary Impairment Recognized in Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Gain (Loss) on Investments [Line Items] | ||||
Total other-than-temporary impairment losses | ¥ 243 | ¥ 6,207 | ¥ 423 | ¥ 6,212 |
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 0 | 0 | 0 |
Net impairment losses recognized in earnings | ¥ 243 | ¥ 6,207 | ¥ 423 | ¥ 6,212 |
Investment in Securities (Roll-
Investment in Securities (Roll-Forwards of Amount Related to Credit Losses on Other-Than-Temporarily Impaired Debt Securities Recognized in Earnings) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Beginning balance | ¥ 1,220 | ¥ 1,391 | ¥ 1,220 | ¥ 1,413 |
Due to change in intent to sell or requirement to sell | 0 | (22) | ||
Ending balance | ¥ 1,220 | ¥ 1,391 | ¥ 1,220 | ¥ 1,391 |
Securitization Transactions (Qu
Securitization Transactions (Quantitative Information about Delinquencies, Impaired Loans and Components of Financial Assets Sold on Securitization, Other Assets Managed Together, and Net Credit Loss) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||||
Principal amount of assets managed or sold on securitization receivables | ¥ 4,040,593 | ¥ 4,040,593 | ¥ 4,019,730 | ||
Direct financing leases sold on securitization | 0 | 0 | 0 | ||
Principal amount of assets managed or sold on securitization receivables | 4,040,593 | 4,040,593 | 4,019,730 | ||
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 78,746 | 78,746 | 80,347 | ||
Direct financing leases sold on securitization | 0 | 0 | 0 | ||
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 78,746 | 78,746 | 80,347 | ||
Assets recorded on the balance sheet credit losses | 4,859 | ¥ 5,223 | 7,949 | ¥ 7,712 | |
Direct financing leases sold on securitization credit losses | 0 | 0 | 0 | 0 | |
Assets managed or sold on securitization net credit losses | 4,859 | 5,223 | 7,949 | 7,712 | |
Direct Financing Leases | |||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||||
Principal amount of assets managed or sold on securitization receivables | 1,214,698 | 1,214,698 | 1,204,024 | ||
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 12,737 | 12,737 | 11,600 | ||
Assets recorded on the balance sheet credit losses | 700 | 1,295 | 938 | 1,787 | |
Installment Loans | |||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||||
Principal amount of assets managed or sold on securitization receivables | 2,825,895 | 2,825,895 | 2,815,706 | ||
Principal amount of assets managed or sold on securitization receivables that are 90 days or more past-due and impaired loans | 66,009 | 66,009 | ¥ 68,747 | ||
Assets recorded on the balance sheet credit losses | ¥ 4,159 | ¥ 3,928 | ¥ 7,011 | ¥ 5,925 |
Securitization Transactions (Ro
Securitization Transactions (Roll-Forwards of Amount of Servicing Assets and Fair Value of Servicing Assets) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||||
Beginning balance | ¥ 17,736 | ¥ 15,212 | ¥ 17,303 | ¥ 16,852 |
Increase mainly from loans sold with servicing retained | 12,132 | 1,095 | 13,470 | 1,781 |
Decrease mainly from amortization | (835) | (903) | (1,712) | (1,779) |
Increase (Decrease) from the effects of changes in foreign exchange rates | 253 | (268) | 225 | (1,718) |
Ending balance | 29,286 | ¥ 15,136 | 29,286 | 15,136 |
Beginning balance | 24,907 | ¥ 24,229 | ||
Ending balance | ¥ 36,949 | ¥ 36,949 |
Variable Interest Entities (Inf
Variable Interest Entities (Information about Consolidated VIEs) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Total assets | [1] | ¥ 722,416 | ¥ 951,403 |
Total Liabilities | [1] | 322,043 | 471,908 |
Assets which are pledged as collateral | [2] | 478,808 | 703,293 |
Commitments | [3] | 101,742 | 93,222 |
Liquidating Customer Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 0 | 0 |
Total Liabilities | [1] | 0 | 0 |
Assets which are pledged as collateral | [2] | 0 | 0 |
Commitments | [3] | 0 | 0 |
Acquisition Of Real Estate And Real Estate Development Projects For Customers | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 662 | 663 |
Total Liabilities | [1] | 0 | 0 |
Assets which are pledged as collateral | [2] | 0 | 0 |
Commitments | [3] | 0 | 0 |
Acquisition of real estate for the Company and its subsidiaries' real estate-related business | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 105,913 | 127,425 |
Total Liabilities | [1] | 28,876 | 39,877 |
Assets which are pledged as collateral | [2] | 54,129 | 75,382 |
Commitments | [3] | 7,000 | 7,000 |
Corporate Rehabilitation Support Business | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 1,685 | 1,544 |
Total Liabilities | [1] | 158 | 16 |
Assets which are pledged as collateral | [2] | 0 | 0 |
Commitments | [3] | 0 | 0 |
Investment in securities | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 41,061 | 50,411 |
Total Liabilities | [1] | 724 | 2,027 |
Assets which are pledged as collateral | [2] | 69 | 5,567 |
Commitments | [3] | 2,044 | 1,995 |
Securitizing Financial Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 144,167 | 338,138 |
Total Liabilities | [1] | 101,991 | 228,935 |
Assets which are pledged as collateral | [2] | 115,387 | 307,315 |
Commitments | [3] | 0 | 0 |
Securitization Of Loans Receivable Originated By Third Parties | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 13,746 | 18,683 |
Total Liabilities | [1] | 14,049 | 17,202 |
Assets which are pledged as collateral | [2] | 13,746 | 18,683 |
Commitments | [3] | 0 | 0 |
Power Generation Projects | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 221,922 | 212,153 |
Total Liabilities | [1] | 104,421 | 111,404 |
Assets which are pledged as collateral | [2] | 129,117 | 127,993 |
Commitments | [3] | 92,698 | 84,227 |
Other VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | 193,260 | 202,386 |
Total Liabilities | [1] | 71,824 | 72,447 |
Assets which are pledged as collateral | [2] | 166,360 | 168,353 |
Commitments | [3] | ¥ 0 | ¥ 0 |
[1] | The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. | ||
[2] | The assets are pledged as collateral by VIE for financing of the VIE. | ||
[3] | This item represents remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Variable Interest Entities (I78
Variable Interest Entities (Information about Non Consolidated VIEs) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Total assets | ¥ 32,934,907 | ¥ 32,480,782 | |
Non-recourse loans | 4,362 | 4,864 | |
Investments | 142,307 | 130,462 | |
Maximum exposure to loss | [1] | 176,475 | 168,967 |
Liquidating Customer Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | 8,660 | 8,671 | |
Non-recourse loans | 0 | 0 | |
Investments | 991 | 991 | |
Maximum exposure to loss | [1] | 991 | 991 |
Acquisition Of Real Estate And Real Estate Development Projects For Customers | |||
Variable Interest Entity [Line Items] | |||
Total assets | 82,903 | 96,187 | |
Non-recourse loans | 0 | 0 | |
Investments | 11,248 | 11,130 | |
Maximum exposure to loss | [1] | 11,248 | 11,194 |
Acquisition of real estate for the Company and its subsidiaries' real estate-related business | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Non-recourse loans | 0 | 0 | |
Investments | 0 | 0 | |
Maximum exposure to loss | [1] | 0 | 0 |
Corporate Rehabilitation Support Business | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Non-recourse loans | 0 | 0 | |
Investments | 0 | 0 | |
Maximum exposure to loss | [1] | 0 | 0 |
Investment in securities | |||
Variable Interest Entity [Line Items] | |||
Total assets | 30,936,563 | 30,299,519 | |
Non-recourse loans | 0 | 0 | |
Investments | 80,837 | 80,211 | |
Maximum exposure to loss | [1] | 108,170 | 109,310 |
Securitizing Financial Assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Non-recourse loans | 0 | 0 | |
Investments | 0 | 0 | |
Maximum exposure to loss | [1] | 0 | 0 |
Securitization Of Loans Receivable Originated By Third Parties | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,432,927 | 1,744,471 | |
Non-recourse loans | 0 | 0 | |
Investments | 17,378 | 18,448 | |
Maximum exposure to loss | [1] | 17,405 | 18,483 |
Power Generation Projects | |||
Variable Interest Entity [Line Items] | |||
Total assets | 29,257 | 12,414 | |
Non-recourse loans | 0 | 0 | |
Investments | 1,871 | 1,719 | |
Maximum exposure to loss | [1] | 1,871 | 3,729 |
Other VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets | 444,597 | 319,520 | |
Non-recourse loans | 4,362 | 4,864 | |
Investments | 29,982 | 17,963 | |
Maximum exposure to loss | [1] | ¥ 36,790 | ¥ 25,260 |
[1] | Maximum exposure to loss includes remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE. |
Investment in Affiliates (Summa
Investment in Affiliates (Summary of Investment in Affiliates) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Investments in and Advances to Affiliates [Line Items] | ||
Shares | ¥ 539,053 | ¥ 485,386 |
Loans and others | 55,377 | 38,848 |
Investment in Affiliates | ¥ 594,430 | ¥ 524,234 |
Redeemable Noncontrolling Int80
Redeemable Noncontrolling Interests (Changes in Redeemable Noncontrolling Interests) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Beginning balance | ¥ 6,548 | ¥ 7,467 | ||
Comprehensive income | ||||
Net income | 148 | 148 | ||
Other comprehensive income (loss) | ||||
Net change of foreign currency translation adjustments | 34 | (772) | ||
Total other comprehensive income (loss) | 34 | (772) | ||
Comprehensive income (loss) | ¥ 143 | ¥ (38) | 182 | (624) |
Ending balance | ¥ 6,730 | ¥ 6,843 | ¥ 6,730 | ¥ 6,843 |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive income (Loss) (Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Tax) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Beginning Balance | ¥ 2,647,625 | ¥ 2,472,819 | ||
Total other comprehensive income (loss) | ¥ 11,711 | ¥ (27,599) | 15,257 | (62,666) |
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | 1,696 | (1,226) | 667 | (6,430) |
Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests | 45 | (121) | 34 | (772) |
Ending Balance | 2,747,842 | 2,524,396 | 2,747,842 | 2,524,396 |
AOCI Attributable to Parent | ||||
Beginning Balance | (16,684) | (35,434) | (21,270) | (6,222) |
Ending Balance | (6,714) | (61,686) | (6,714) | (61,686) |
Net unrealized gains (losses) on derivative instruments | ||||
Beginning Balance | (4,352) | (6,568) | (4,483) | (4,757) |
Net unrealized gains (losses) | 4 | 404 | 805 | (1,436) |
Reclassification adjustment included in net income, net of tax | (73) | (272) | (729) | (364) |
Total other comprehensive income (loss) | (69) | 132 | 76 | (1,800) |
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | (10) | 34 | 4 | (87) |
Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests | 0 | 0 | 0 | 0 |
Ending Balance | (4,411) | (6,470) | (4,411) | (6,470) |
Foreign currency translation adjustments | ||||
Beginning Balance | (25,122) | (60,175) | (31,736) | (24,766) |
Net unrealized gains (losses) | 13,041 | (19,262) | 19,830 | (59,799) |
Reclassification adjustment included in net income, net of tax | 0 | 954 | (1,175) | 287 |
Total other comprehensive income (loss) | 13,041 | (18,308) | 18,655 | (59,512) |
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | 1,717 | (1,282) | 728 | (6,426) |
Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests | 45 | (121) | 34 | (772) |
Ending Balance | (13,843) | (77,080) | (13,843) | (77,080) |
Defined benefit pension plans | ||||
Beginning Balance | (17,586) | (22,704) | (17,330) | (23,884) |
Net unrealized gains (losses) | (180) | 75 | (427) | 1,281 |
Reclassification adjustment included in net income, net of tax | (10) | 127 | (20) | 218 |
Total other comprehensive income (loss) | (190) | 202 | (447) | 1,499 |
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | 1 | 21 | 0 | 138 |
Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests | 0 | 0 | 0 | 0 |
Ending Balance | (17,777) | (22,523) | (17,777) | (22,523) |
Net unrealized gains (losses) on investment in securities | ||||
Beginning Balance | 30,376 | 54,013 | 32,279 | 47,185 |
Net unrealized gains (losses) | 3,253 | (3,811) | 6,640 | 6,936 |
Reclassification adjustment included in net income, net of tax | (4,324) | (5,814) | (9,667) | (9,789) |
Total other comprehensive income (loss) | (1,071) | (9,625) | (3,027) | (2,853) |
Less: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interest | (12) | 1 | (65) | (55) |
Less: Other Comprehensive Income (loss) Attributable to the Redeemable Noncontrolling Interests | 0 | 0 | 0 | 0 |
Ending Balance | ¥ 29,317 | ¥ 44,387 | ¥ 29,317 | ¥ 44,387 |
Accumulated Other Comprehensi82
Accumulated Other Comprehensive income (Loss) (Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Tax) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net unrealized gains (losses) on derivative instruments | ||||
Net unrealized gains (losses), tax | ¥ 4 | ¥ (207) | ¥ (253) | ¥ 669 |
Reclassification adjustment included in net income, tax | 17 | 103 | 235 | 122 |
Foreign currency translation adjustments | ||||
Net unrealized gains (losses), tax | 5,413 | 5,047 | 12,032 | 10,196 |
Reclassification adjustment included in net income, tax | 0 | (130) | (1,019) | 13 |
Defined benefit pension plans | ||||
Net unrealized gains (losses), tax | 19 | (62) | 86 | (504) |
Reclassification adjustment included in net income, tax | 2 | (38) | 5 | (77) |
Net unrealized gains (losses) on investment in securities | ||||
Net unrealized gains (losses), tax | (875) | 647 | (2,275) | (3,157) |
Reclassification adjustment included in net income, tax | ¥ 2,133 | ¥ 2,202 | ¥ 4,594 | ¥ 4,068 |
Accumulated Other Comprehensi83
Accumulated Other Comprehensive income (Loss) (Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (loss)) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | ¥ 10,474 | ¥ 12,346 | ¥ 24,972 | ¥ 32,834 |
Life insurance premiums and related investment income | 87,556 | 78,964 | 181,210 | 115,736 |
Finance revenues | 52,487 | 48,526 | 106,477 | 96,582 |
Write-downs of securities and other | (243) | (6,207) | (423) | (6,212) |
Tax expenses or benefits | (38,541) | (33,274) | (83,211) | (72,296) |
Net Income | 78,460 | 67,527 | 169,401 | 146,939 |
Other (income) and expense, net | 1,791 | (718) | 1,464 | 681 |
Net unrealized gains (losses) on investment in securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains on investment securities and dividends | 6,131 | 8,410 | 11,596 | |
Finance revenues | (199) | (24) | (125) | |
Write-downs of securities and other | (6,178) | (6,180) | ||
Total before tax | 6,457 | 8,016 | 13,857 | |
Tax expenses or benefits | (2,133) | (2,202) | (4,068) | |
Net Income | 4,324 | 5,814 | 9,789 | |
Net unrealized gains (losses) on investment in securities | Sale of Investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Life insurance premiums and related investment income | 660 | 6,187 | 9,326 | |
Net unrealized gains (losses) on investment in securities | Amortization of investment securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Life insurance premiums and related investment income | (135) | (379) | (760) | |
Defined benefit pension plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service credit | 249 | 255 | 511 | |
Amortization of net actuarial loss | (224) | (408) | (782) | |
Amortization of transition obligation | (13) | (12) | (24) | |
Total before tax | 12 | (165) | (295) | |
Tax expenses or benefits | (2) | 38 | 77 | |
Net Income | 10 | (127) | (218) | |
Foreign currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | (1,084) | (274) | ||
Total before tax | (1,084) | (274) | ||
Tax expenses or benefits | 130 | (13) | ||
Net Income | (954) | (287) | ||
Net unrealized gains (losses) on derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 90 | 375 | 486 | |
Tax expenses or benefits | (17) | (103) | (122) | |
Net Income | 73 | 272 | 364 | |
Net unrealized gains (losses) on derivative instruments | Interest rate swap agreements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Finance revenues/Interest expense | 2 | 1 | ||
Net unrealized gains (losses) on derivative instruments | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (income) and expense, net | (19) | (32) | ||
Net unrealized gains (losses) on derivative instruments | Foreign currency swap agreements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Finance revenues/Interest expense/Other (income) and expense, net | ¥ 88 | ¥ 394 | ¥ 517 | |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on investment in securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains on investment securities and dividends | 11,272 | |||
Finance revenues | (109) | |||
Write-downs of securities and other | (129) | |||
Total before tax | 14,261 | |||
Tax expenses or benefits | (4,594) | |||
Net Income | 9,667 | |||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on investment in securities | Sale of Investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Life insurance premiums and related investment income | 3,502 | |||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on investment in securities | Amortization of investment securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Life insurance premiums and related investment income | (275) | |||
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service credit | 497 | |||
Amortization of net actuarial loss | (447) | |||
Amortization of transition obligation | (25) | |||
Total before tax | 25 | |||
Tax expenses or benefits | (5) | |||
Net Income | 20 | |||
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains on sales of subsidiaries and affiliates and liquidation losses, net | 156 | |||
Total before tax | 156 | |||
Tax expenses or benefits | 1,019 | |||
Net Income | 1,175 | |||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 964 | |||
Tax expenses or benefits | (235) | |||
Net Income | 729 | |||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | Interest rate swap agreements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Finance revenues/Interest expense | 118 | |||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (income) and expense, net | (2) | |||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on derivative instruments | Foreign currency swap agreements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Finance revenues/Interest expense/Other (income) and expense, net | ¥ 848 |
ORIX Corporation Shareholders84
ORIX Corporation Shareholders' Equity (Information about Dividend Payments and Applicable Dividends) (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Dividends Payable [Line Items] | ||
Resolution | The board of directors on May 23, 2016 and May 23, 2017 | |
Type of shares | Common stock | |
Total dividends paid | ¥ 38,162 | ¥ 31,141 |
Dividend per share | ¥ 29.25 | ¥ 23.75 |
Date of record for dividend | Mar. 31, 2017 | Mar. 31, 2016 |
Effective date for dividend | Jun. 6, 2017 | Jun. 1, 2016 |
Dividend resource | Retained earnings | |
Effective Date [Member] | ||
Dividends Payable [Line Items] | ||
Resolution | The board of directors on October 26, 2016 and October 30, 2017 | |
Type of shares | Common stock | |
Total dividends paid | ¥ 34,595 | ¥ 30,157 |
Dividend per share | ¥ 27 | ¥ 23 |
Date of record for dividend | Sep. 30, 2017 | Sep. 30, 2016 |
Effective date for dividend | Dec. 4, 2017 | Dec. 2, 2016 |
Dividend resource | Retained earnings |
ORIX Corporation Shareholders85
ORIX Corporation Shareholders' Equity - Additional Information (Detail) - JPY (¥) ¥ in Millions | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Dividends Payable [Line Items] | ||
Total dividends paid | ¥ 38,162 | ¥ 31,141 |
Effective Date [Member] | ||
Dividends Payable [Line Items] | ||
Total dividends paid | 34,595 | 30,157 |
Officer's Compensation Board Incentive Plan | ||
Dividends Payable [Line Items] | ||
Total dividends paid | 62 | 40 |
Officer's Compensation Board Incentive Plan | Effective Date [Member] | ||
Dividends Payable [Line Items] | ||
Total dividends paid | ¥ 53 | ¥ 57 |
Selling, General and Administ86
Selling, General and Administrative Expenses (Summary of Selling, General and Administrative Expenses) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Selling General And Administrative Expenses [Line Items] | ||||
Personnel expenses | ¥ 57,890 | ¥ 57,873 | ¥ 119,164 | ¥ 117,968 |
Selling expenses | 19,058 | 18,332 | 36,378 | 35,104 |
Administrative expenses | 25,133 | 23,585 | 51,288 | 48,093 |
Depreciation of office facilities | 1,256 | 1,307 | 2,469 | 2,534 |
Total | ¥ 103,337 | ¥ 101,097 | ¥ 209,299 | ¥ 203,699 |
Pension Plans (Net Pension Cost
Pension Plans (Net Pension Cost of Defined Benefit Plans) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Domestic Pension Plans of Foreign Entity Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | ¥ 1,325 | ¥ 1,279 | ¥ 2,649 | ¥ 2,556 |
Interest cost | 194 | 169 | 388 | 338 |
Expected return on plan assets | (656) | (635) | (1,313) | (1,269) |
Amortization of prior service credit | (228) | (232) | (457) | (463) |
Amortization of net actuarial loss | 214 | 237 | 428 | 473 |
Amortization of transition obligation | 12 | 11 | 23 | 22 |
Net periodic pension cost | 861 | 829 | 1,718 | 1,657 |
Overseas Pension Plans Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 768 | 795 | 1,605 | 1,627 |
Interest cost | 487 | 424 | 952 | 880 |
Expected return on plan assets | (1,044) | (869) | (2,037) | (1,788) |
Amortization of prior service credit | (21) | (23) | (40) | (48) |
Amortization of net actuarial loss | 10 | 171 | 19 | 309 |
Amortization of transition obligation | 1 | 1 | 2 | 2 |
Net periodic pension cost | ¥ 201 | ¥ 499 | ¥ 501 | ¥ 982 |
Life Insurance Operations (Life
Life Insurance Operations (Life Insurance Premiums and Related Investment Income) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Life insurance premiums | ¥ 71,122 | ¥ 59,492 | ¥ 142,495 | ¥ 114,750 |
Life insurance related investment income | 16,434 | 19,472 | 38,715 | 986 |
Life insurance premiums and related investment income | ¥ 87,556 | ¥ 78,964 | ¥ 181,210 | ¥ 115,736 |
Life Insurance Operations (Rein
Life Insurance Operations (Reinsurance Benefits and Reinsurance Premiums Included in Life Insurance Premiums) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Reinsurance benefits | ¥ 850 | ¥ 862 | ¥ 1,870 | ¥ 1,497 |
Reinsurance premiums | ¥ (1,813) | ¥ (2,534) | ¥ (3,763) | ¥ (5,098) |
Life Insurance Operations - Add
Life Insurance Operations - Additional Information (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Amortization of policy acquisition costs charged to income | ¥ 3,840 | ¥ 3,444 | ¥ 7,747 | ¥ 6,653 |
Life Insurance Operations (Gain
Life Insurance Operations (Gains or Losses Relating to Variable Annuity and Variable Life Insurance Contracts) (Detail) - Variable Annuity and Variable Life Insurance Contracts - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Life insurance premiums and related investment income | ||||
Net realized and unrealized gains or losses from investment assets | ¥ 16,014 | ¥ 15,605 | ¥ 37,141 | ¥ (12,624) |
Net gains or losses from derivative contracts | (2,416) | (4,877) | (5,949) | 256 |
Life insurance costs | ||||
Changes in the fair value of the policy liabilities and policy account balances | (40,895) | (35,481) | (88,501) | (79,567) |
Insurance costs recognized for insurance and annuity payouts as a result of insured events | 47,955 | 33,573 | 104,399 | 63,022 |
Changes in the fair value of the reinsurance contracts | 2,828 | 7,663 | 6,874 | 301 |
Foreign exchange contracts | ||||
Life insurance premiums and related investment income | ||||
Net gains or losses from derivative contracts | (262) | 231 | (584) | 1,902 |
Futures | ||||
Life insurance premiums and related investment income | ||||
Net gains or losses from derivative contracts | (1,826) | (4,234) | (4,453) | (2,117) |
Options held | ||||
Life insurance premiums and related investment income | ||||
Net gains or losses from derivative contracts | ¥ (328) | ¥ (874) | ¥ (912) | ¥ 471 |
Write-Downs of Long-Lived Ass92
Write-Downs of Long-Lived Assets (Long-Lived Assets Classified as Held for Sale) (Detail) - Discontinued Operations, Held-for-sale - Real estate properties and transportation equipment - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Long Lived Assets Held-for-sale [Line Items] | ||
Investment in operating leases | ¥ 34,964 | ¥ 32,283 |
Property under facility operations | 0 | 1,977 |
Other assets | ¥ 0 | ¥ 2,508 |
Write-Downs of Long-Lived Ass93
Write-Downs of Long-Lived Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Write-downs of long-lived assets | ¥ 387 | ¥ 845 | ¥ 1,472 | ¥ 1,409 |
Real Estate | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment losses | ¥ 387 | 69 | ¥ 1,472 | 622 |
Investment and Operation Segment | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment losses | 11 | |||
Overseas Business Segment | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment losses | ¥ 519 | ¥ 519 |
Write-Downs of Long-Lived Ass94
Write-Downs of Long-Lived Assets (Breakdowns of Recognized Impairment Losses for Difference between Carrying Amounts and Fair Values Reflected as Write-Downs of Long-Lived Assets) (Detail) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017JPY (¥)Property | Sep. 30, 2016JPY (¥)Property | Sep. 30, 2017JPY (¥)Property | Sep. 30, 2016JPY (¥)Property | ||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Write-downs of the assets held for sale, amount | ¥ 200 | ¥ 18 | ¥ 1,177 | ¥ 571 | |
Write-downs due to decline estimated future cash flows, amount | 187 | 827 | 295 | 838 | |
Office Buildings | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Write-downs of the assets held for sale, amount | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | |
Write-downs of the assets held for sale, number of properties | Property | 0 | 0 | 0 | 0 | |
Write-downs due to decline estimated future cash flows, amount | ¥ 0 | ¥ 758 | ¥ 0 | ¥ 758 | |
Write-downs due to decline estimated future cash flows, number of properties | Property | 0 | 3 | 0 | 3 | |
Commercial Facilities Other Than Office Buildings | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Write-downs of the assets held for sale, amount | ¥ 0 | ¥ 0 | ¥ 977 | ¥ 236 | |
Write-downs of the assets held for sale, number of properties | Property | 0 | 0 | 1 | 1 | |
Write-downs due to decline estimated future cash flows, amount | ¥ 187 | ¥ 0 | ¥ 187 | ¥ 0 | |
Write-downs due to decline estimated future cash flows, number of properties | Property | 2 | 0 | 2 | 0 | |
Condominiums | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Write-downs of the assets held for sale, amount | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 317 | |
Write-downs of the assets held for sale, number of properties | Property | 0 | 0 | 0 | 1 | |
Write-downs due to decline estimated future cash flows, amount | ¥ 0 | ¥ 69 | ¥ 0 | ¥ 69 | |
Write-downs due to decline estimated future cash flows, number of properties | Property | 0 | 1 | 0 | 1 | |
Property, Plant and Equipment, Other Types | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Write-downs of the assets held for sale, amount | [1] | ¥ 200 | ¥ 18 | ¥ 200 | ¥ 18 |
Write-downs due to decline estimated future cash flows, amount | [1] | ¥ 0 | ¥ 0 | ¥ 108 | ¥ 11 |
[1] | For the "Others," the number of properties are omitted. |
Per Share Data - Additional Inf
Per Share Data - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Officer's Compensation Board Incentive Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares held for incentive plans, to be deducted in calculation of the weighted-average shares for EPS computation | 2,003,201 | 2,066,751 | 2,055,862 | 1,907,951 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from calculation of diluted EPS | 0 | 1,801,000 | 356,000 | 2,739,000 |
Per Share Data (Reconciliation
Per Share Data (Reconciliation of Differences Between Basic and Diluted Earnings Per Share (EPS)) (Detail) - JPY (¥) ¥ / shares in Units, shares in Thousands, ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income attributable to ORIX Corporation Shareholders | ¥ 76,258 | ¥ 65,381 | ¥ 165,970 | ¥ 142,150 |
Weighted-average shares | 1,279,276 | 1,309,143 | 1,282,567 | 1,309,302 |
Effect of dilutive securities- | ||||
Exercise of stock options | 1,277 | 1,227 | 1,178 | 1,171 |
Weighted-average shares for diluted EPS computation | 1,280,553 | 1,310,370 | 1,283,745 | 1,310,473 |
Earnings per share for net income attributable to ORIX Corporation shareholders: | ||||
Basic | ¥ 59.61 | ¥ 49.94 | ¥ 129.40 | ¥ 108.57 |
Diluted | ¥ 59.55 | ¥ 49.89 | ¥ 129.29 | ¥ 108.47 |
Derivative Financial Instrume97
Derivative Financial Instruments and Hedging (Effect of Derivative Instruments on Consolidated Statements of Income, Pre-tax) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Fair value hedges | Interest rate swap agreements | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | ¥ 0 | |||||||
Gains (losses) recognized in income on hedged item | 0 | |||||||
Fair value hedges | Interest rate swap agreements | Finance revenues/Interest expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | ¥ (15) | ¥ (13) | ||||||
Gains (losses) recognized in income on hedged item | 15 | 13 | ||||||
Fair value hedges | Foreign exchange contracts | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | (1,633) | 2,248 | (3,125) | |||||
Gains (losses) recognized in income on hedged item | 1,633 | (2,248) | 3,125 | |||||
Fair value hedges | Foreign currency swap agreements | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | 210 | (1,556) | 990 | |||||
Gains (losses) recognized in income on hedged item | (210) | 1,555 | (990) | |||||
Fair value hedges | Foreign currency long- term-debt | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | (22) | |||||||
Gains (losses) recognized in income on hedged item | 22 | |||||||
Cash flow hedges | Interest rate swap agreements | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 22 | 1,317 | (185) | |||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | |||||
Cash flow hedges | Interest rate swap agreements | Finance revenues/Interest expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 2 | 0 | 118 | |||||
Cash flow hedges | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (54) | 63 | (188) | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | |||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | |||||
Cash flow hedges | Foreign exchange contracts | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (19) | (2) | ||||||
Cash flow hedges | Foreign currency swap agreements | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 33 | (769) | 1,432 | |||||
Cash flow hedges | Foreign currency swap agreements | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | (33) | 68 | (111) | |||||
Cash flow hedges | Foreign currency swap agreements | Finance revenues/Interest expense/Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 88 | 394 | 848 | |||||
Hedges of net investment in foreign operations | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (8,011) | 5,536 | (23,576) | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | |||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | |||||
Hedges of net investment in foreign operations | Foreign exchange contracts | Gains on sales of subsidiaries and affiliates and liquidation losses, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (194) | (3,705) | ||||||
Hedges of net investment in foreign operations | Borrowings and bonds in local currency | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (4,707) | 2,620 | (10,197) | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | 0 | 0 | |||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | |||||
Derivatives designated as hedging instruments | Fair value hedges | Interest rate swap agreements | Finance revenues/Interest expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | ¥ (28) | |||||||
Gains (losses) recognized in income on hedged item | 28 | |||||||
Derivatives designated as hedging instruments | Fair value hedges | Foreign exchange contracts | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | 18,927 | |||||||
Gains (losses) recognized in income on hedged item | (18,927) | |||||||
Derivatives designated as hedging instruments | Fair value hedges | Foreign currency swap agreements | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | 1,476 | |||||||
Gains (losses) recognized in income on hedged item | (1,476) | |||||||
Derivatives designated as hedging instruments | Fair value hedges | Foreign currency long- term-debt | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | 56 | |||||||
Gains (losses) recognized in income on hedged item | (56) | |||||||
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swap agreements | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (894) | |||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | |||||||
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swap agreements | Finance revenues/Interest expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 1 | |||||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 827 | |||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | |||||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | (32) | |||||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency swap agreements | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | (2,038) | |||||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency swap agreements | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 51 | |||||||
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency swap agreements | Finance revenues/Interest expense/Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 517 | |||||||
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 46,415 | |||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | |||||||
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Foreign exchange contracts | Gains on sales of subsidiaries and affiliates and liquidation losses, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 257 | |||||||
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Borrowings and bonds in local currency | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in other comprehensive income on derivative (effective portion) | 23,439 | |||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 0 | |||||||
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | |||||||
Nondesignated | Gains on Investment Securities and Dividends and Life Insurance Premiums and Related Investment Income (Loss) | Futures | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | 13 | [1] | (4,110) | [2] | (2,511) | [3] | (2,082) | [4] |
Nondesignated | Interest rate swap agreements | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | 396 | 9 | 698 | (85) | ||||
Nondesignated | Foreign exchange contracts | Gains on Investment Securities and Dividends and Life Insurance Premiums and Related Investment Income (Loss) and Other Income (Expense), Net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | (11,664) | [1] | 5,617 | [2] | (14,377) | [3] | 27,780 | [4] |
Nondesignated | Credit derivatives held/written | Other (income) and expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | (12) | (48) | (26) | (25) | ||||
Nondesignated | Options held/written and other | Other Income (Expense), Net and Life Insurance Premiums and Related Investment Income (Loss) | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (losses) recognized in income on derivative | ¥ 929 | [1] | ¥ (920) | [2] | ¥ 266 | [3] | ¥ 405 | [4] |
[1] | Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the three months ended September 30, 2017 (see Note 15 "Life Insurance Operations"). | |||||||
[2] | Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the three months ended September 30, 2016 (see Note 15 "Life Insurance Operations"). | |||||||
[3] | Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the six months ended September 30, 2017 (see Note 15 "Life Insurance Operations"). | |||||||
[4] | Futures, foreign exchange contracts and options held/written and other in the above table include gains (losses) arising from futures, foreign exchange contracts and options held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for the six months ended September 30, 2016 (see Note 15 "Life Insurance Operations"). |
Derivative Financial Instrume98
Derivative Financial Instruments and Hedging (Notional Amounts of Derivative Instruments and Other, Fair Values of Derivative Instruments and Other before Offsetting) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | ||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | ¥ 13,066 | ¥ 26,581 | ||
Liability derivatives, Fair value | 34,770 | 19,798 | ||
Interest rate swap agreements | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 238,751 | 243,197 | ||
Interest rate swap agreements | Derivatives designated as hedging instruments | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 4,469 | 4,391 | ||
Interest rate swap agreements | Derivatives designated as hedging instruments | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 61 | 71 | ||
Interest rate swap agreements | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 18,468 | 8,258 | ||
Asset derivatives, Fair value | 163 | 233 | ||
Interest rate swap agreements | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 82 | 176 | ||
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 584,683 | 745,481 | ||
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 11,554 | 8,021 | ||
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 835 | 6,373 | ||
Futures, foreign exchange contracts | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 411,124 | [1] | 565,981 | [2] |
Futures, foreign exchange contracts | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 14,506 | [1] | 800 | [2] |
Futures, foreign exchange contracts | Nondesignated | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 359 | [1] | 5,973 | [2] |
Foreign currency swap agreements | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 91,154 | 74,482 | ||
Foreign currency swap agreements | Derivatives designated as hedging instruments | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 1,020 | 1,677 | ||
Foreign currency swap agreements | Derivatives designated as hedging instruments | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 3,737 | 4,545 | ||
Foreign currency long- term-debt | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 354,105 | 280,266 | ||
Asset derivatives, Fair value | 0 | 0 | ||
Liability derivatives, Fair value | 0 | 0 | ||
Options held/written and other | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 384,367 | [1] | 224,064 | [2] |
Options held/written and other | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | 1,833 | [1] | 1,071 | [2] |
Options held/written and other | Nondesignated | Other assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset derivatives, Fair value | 6,743 | [1] | 5,804 | [2] |
Credit derivatives held/written | Nondesignated | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 5,783 | 6,942 | ||
Asset derivatives, Fair value | 0 | 0 | ||
Credit derivatives held/written | Nondesignated | Other liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability derivatives, Fair value | ¥ 130 | ¥ 159 | ||
[1] | The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥42,006 million, futures contracts of ¥41,440 million and foreign exchange contracts of ¥13,533 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at September 30, 2017, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥776 million, ¥67 million and ¥18 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥1,917 million and ¥314 million at September 30, 2017, respectively. | |||
[2] | The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥46,063 million, futures contracts of ¥52,791 million and foreign exchange contracts of ¥16,690 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2017, respectively. Asset derivatives in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥1,708 million, ¥694 million and ¥57 million and liability derivatives include fair value of the futures and foreign exchange contracts before offsetting of ¥37 million and ¥45 million at March 31, 2017, respectively. |
Derivative Financial Instrume99
Derivative Financial Instruments and Hedging (Notional Amounts of Derivative Instruments and Other, Fair Values of Derivative Instruments and Other before Offsetting) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | ¥ 13,066 | ¥ 26,581 |
Liability derivatives Fair value | 34,770 | 19,798 |
Options held | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | 776 | 1,708 |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | 67 | 694 |
Liability derivatives Fair value | 1,917 | 37 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives Fair value | 18 | 57 |
Liability derivatives Fair value | 314 | 45 |
Variable Annuity and Variable Life Insurance Contracts | Options held | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 42,006 | 46,063 |
Variable Annuity and Variable Life Insurance Contracts | Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 41,440 | 52,791 |
Variable Annuity and Variable Life Insurance Contracts | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | ¥ 13,533 | ¥ 16,690 |
Offsetting Assets and Liabil100
Offsetting Assets and Liabilities (Gross Amounts Recognized, Gross Amounts Offset, and Net Amounts Presented in Consolidated Balance Sheets Regarding to Derivative Assets and Liabilities and Other Assets and Liabilities) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | |
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, assets | ¥ 13,066 | ¥ 26,581 | |
Gross amounts offset in the consolidated balance sheets, assets | (2,277) | (7,522) | |
Net amounts presented in the consolidated balance sheets, assets | 10,789 | 19,059 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets | [1] | (732) | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, assets | [1] | 0 | (3,132) |
Net amount, assets | 10,057 | 15,927 | |
Gross amounts recognized, liabilities | 34,770 | 19,798 | |
Gross amounts offset in the consolidated balance sheets, liabilities | (2,277) | (7,522) | |
Net amounts presented in the consolidated balance sheets, liabilities | 32,493 | 12,276 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities | [1] | (1,532) | (1,105) |
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities | [1] | (2,807) | (398) |
Net amount, liabilities | 28,154 | 10,773 | |
Derivative liabilities | |||
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, liabilities | 33,594 | 16,295 | |
Gross amounts offset in the consolidated balance sheets, liabilities | (1,109) | (4,019) | |
Net amounts presented in the consolidated balance sheets, liabilities | 32,485 | 12,276 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities | [1] | (1,532) | (1,105) |
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities | [1] | (2,807) | (398) |
Net amount, liabilities | 28,146 | 10,773 | |
Derivative assets | |||
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, assets | 11,898 | 22,999 | |
Gross amounts offset in the consolidated balance sheets, assets | (1,109) | (4,019) | |
Net amounts presented in the consolidated balance sheets, assets | 10,789 | 18,980 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets | [1] | (732) | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, assets | [1] | 0 | (3,132) |
Net amount, assets | 10,057 | 15,848 | |
Reverse repurchase, securities borrowing, and similar arrangements | |||
Offsetting Asset and Liabilities [Line Items] | |||
Gross amounts recognized, assets | [2] | 1,168 | 3,582 |
Gross amounts offset in the consolidated balance sheets, assets | [2] | (1,168) | (3,503) |
Net amounts presented in the consolidated balance sheets, assets | [2] | 0 | 79 |
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets | [1],[2] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, assets | [1],[2] | 0 | 0 |
Net amount, assets | [2] | 0 | 79 |
Gross amounts recognized, liabilities | [2] | 1,176 | 3,503 |
Gross amounts offset in the consolidated balance sheets, liabilities | [2] | (1,168) | (3,503) |
Net amounts presented in the consolidated balance sheets, liabilities | [2] | 8 | 0 |
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities | [1],[2] | 0 | 0 |
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities | [1],[2] | 0 | 0 |
Net amount, liabilities | [2] | ¥ 8 | ¥ 0 |
[1] | The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets. | ||
[2] | Reverse repurchase agreements and securities borrowing, and similar transactions are reported within other assets in the consolidated balance sheets. Repurchase agreements and securities lending, and similar transactions are reported within other liabilities in the consolidated balance sheets. |
Estimated Fair Value of Fina101
Estimated Fair Value of Financial Instruments (Information about Carrying Amount of Financial Instruments Reported in Consolidated Balance Sheets and Related Market or Fair Value) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | |
Assets: | |||||
Trading securities | [1] | ¥ 487,839 | ¥ 569,074 | ||
Cash and Cash Equivalents | 1,185,961 | 1,039,870 | ¥ 961,830 | ¥ 730,420 | |
Restricted Cash | 88,242 | 93,342 | |||
Other Assets: | |||||
Derivative assets | 10,789 | 19,059 | |||
Liabilities: | |||||
Short-Term Debt | 335,665 | 283,467 | |||
Deposits | 1,698,428 | 1,614,608 | |||
Long-Term Debt | 3,867,551 | 3,854,984 | |||
Other Liabilities: | |||||
Derivative liabilities | 32,493 | 12,276 | |||
Level 1 | |||||
Assets: | |||||
Trading securities | 40,177 | 37,500 | |||
Cash and Cash Equivalents | 1,185,961 | 1,039,870 | |||
Restricted Cash | 88,242 | 93,342 | |||
Installment loans (net of allowance for probable loan losses) | 0 | 0 | |||
Investment in securities: | |||||
Practicable to estimate fair value | 75,834 | 93,995 | |||
Not practicable to estimate fair value | [2] | 0 | 0 | ||
Other Assets: | |||||
Time deposits | 0 | 0 | |||
Derivative assets | [3] | 0 | 0 | ||
Reinsurance recoverables (Investment contracts) | 0 | 0 | |||
Liabilities: | |||||
Short-Term Debt | 0 | 0 | |||
Deposits | 0 | 0 | |||
Policy liabilities and Policy account balances (Investment contracts) | 0 | 0 | |||
Long-Term Debt | 0 | 0 | |||
Other Liabilities: | |||||
Derivative liabilities | [3] | 0 | 0 | ||
Level 2 | |||||
Assets: | |||||
Trading securities | 447,662 | 531,574 | |||
Cash and Cash Equivalents | 0 | 0 | |||
Restricted Cash | 0 | 0 | |||
Installment loans (net of allowance for probable loan losses) | 156,826 | 254,708 | |||
Investment in securities: | |||||
Practicable to estimate fair value | 994,613 | 1,086,629 | |||
Not practicable to estimate fair value | [2] | 0 | 0 | ||
Other Assets: | |||||
Time deposits | 3,246 | 9,375 | |||
Derivative assets | [3] | 0 | 0 | ||
Reinsurance recoverables (Investment contracts) | 0 | 0 | |||
Liabilities: | |||||
Short-Term Debt | 335,665 | 283,467 | |||
Deposits | 1,700,247 | 1,615,655 | |||
Policy liabilities and Policy account balances (Investment contracts) | 0 | 0 | |||
Long-Term Debt | 1,134,558 | 1,184,261 | |||
Other Liabilities: | |||||
Derivative liabilities | [3] | 0 | 0 | ||
Level 3 | |||||
Assets: | |||||
Trading securities | 0 | 0 | |||
Cash and Cash Equivalents | 0 | 0 | |||
Restricted Cash | 0 | 0 | |||
Installment loans (net of allowance for probable loan losses) | 2,655,609 | 2,528,758 | |||
Investment in securities: | |||||
Practicable to estimate fair value | 167,441 | 152,317 | |||
Not practicable to estimate fair value | [2] | 0 | 0 | ||
Other Assets: | |||||
Time deposits | 0 | 0 | |||
Derivative assets | [3] | 0 | 0 | ||
Reinsurance recoverables (Investment contracts) | 73,328 | 73,967 | |||
Liabilities: | |||||
Short-Term Debt | 0 | 0 | |||
Deposits | 0 | 0 | |||
Policy liabilities and Policy account balances (Investment contracts) | 296,250 | 288,372 | |||
Long-Term Debt | 2,736,275 | 2,678,554 | |||
Other Liabilities: | |||||
Derivative liabilities | [3] | 0 | 0 | ||
Carrying amount | |||||
Assets: | |||||
Trading securities | 487,839 | 569,074 | |||
Cash and Cash Equivalents | 1,185,961 | 1,039,870 | |||
Restricted Cash | 88,242 | 93,342 | |||
Installment loans (net of allowance for probable loan losses) | 2,778,817 | 2,767,016 | |||
Investment in securities: | |||||
Practicable to estimate fair value | 1,212,124 | 1,307,618 | |||
Not practicable to estimate fair value | [2] | 149,370 | 149,820 | ||
Other Assets: | |||||
Time deposits | 3,246 | 9,375 | |||
Derivative assets | [3] | 10,789 | 18,980 | ||
Reinsurance recoverables (Investment contracts) | 72,060 | 72,615 | |||
Liabilities: | |||||
Short-Term Debt | 335,665 | 283,467 | |||
Deposits | 1,698,428 | 1,614,608 | |||
Policy liabilities and Policy account balances (Investment contracts) | 295,490 | 287,463 | |||
Long-Term Debt | 3,867,551 | 3,854,984 | |||
Other Liabilities: | |||||
Derivative liabilities | [3] | 32,485 | 12,276 | ||
Estimated fair value | |||||
Assets: | |||||
Trading securities | 487,839 | 569,074 | |||
Cash and Cash Equivalents | 1,185,961 | 1,039,870 | |||
Restricted Cash | 88,242 | 93,342 | |||
Installment loans (net of allowance for probable loan losses) | 2,812,435 | 2,783,466 | |||
Investment in securities: | |||||
Practicable to estimate fair value | 1,237,888 | 1,332,941 | |||
Not practicable to estimate fair value | [2] | 149,370 | 149,820 | ||
Other Assets: | |||||
Time deposits | 3,246 | 9,375 | |||
Derivative assets | [3] | 10,789 | 18,980 | ||
Reinsurance recoverables (Investment contracts) | 73,328 | 73,967 | |||
Liabilities: | |||||
Short-Term Debt | 335,665 | 283,467 | |||
Deposits | 1,700,247 | 1,615,655 | |||
Policy liabilities and Policy account balances (Investment contracts) | 296,250 | 288,372 | |||
Long-Term Debt | 3,870,833 | 3,862,815 | |||
Other Liabilities: | |||||
Derivative liabilities | [3] | ¥ 32,485 | ¥ 12,276 | ||
[1] | The amount of assets under management of variable annuity and variable life insurance contracts included in trading securities were ¥547,850 million and ¥476,478 million as of March 31, 2017 and September 30, 2017, respectively. | ||||
[2] | The fair value of investment securities of ¥149,820 million was not estimated, as it was not practical. | ||||
[3] | 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." |
Estimated Fair Value of Fina102
Estimated Fair Value of Financial Instruments (Information about Carrying Amount of Financial Instruments Reported in Consolidated Balance Sheets and Related Market or Fair Value) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 | |
Carrying amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Not practicable to estimate fair value | [1] | ¥ 149,370 | ¥ 149,820 |
Carrying amount | Investment in securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Not practicable to estimate fair value | 149,370 | 149,820 | |
Estimated fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Not practicable to estimate fair value | [1] | 149,370 | 149,820 |
Estimated fair value | Investment in securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Not practicable to estimate fair value | ¥ 149,370 | ¥ 149,820 | |
[1] | The fair value of investment securities of ¥149,820 million was not estimated, as it was not practical. |
Commitments, Guarantees, and Co
Commitments, Guarantees, and Contingent Liabilities - Additional Information (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Commitments for purchase of equipment to be leased at cost | ¥ 373 | ¥ 706 | ||||
Rental payments made under cancelable operating lease agreements | ¥ 3,556 | ¥ 3,392 | ¥ 7,211 | ¥ 6,780 | ||
Payments for computer systems under non-cancelable contracts | 1,339 | ¥ 1,108 | 2,399 | ¥ 2,219 | ||
Estimated construction costs | 79,706 | 79,706 | 79,706 | 88,447 | ||
Total unused credit and capital amount available | 315,167 | 315,167 | 315,167 | 333,540 | ||
Guarantee Obligations Maximum Exposure | 964,024 | 964,024 | 964,024 | 896,498 | ||
Guarantee Obligations Current Carrying Value | 47,126 | 47,126 | 47,126 | 43,884 | ||
Corporate Loans | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Guarantee Obligations Maximum Exposure | 489,575 | 489,575 | 489,575 | 451,597 | ||
Guarantee Obligations Current Carrying Value | 7,208 | 7,208 | 7,208 | 7,274 | ||
Performance Guarantee | Corporate Loans | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Guarantee Obligations Maximum Exposure | 1,085,500 | 1,085,500 | 1,085,500 | 1,326,000 | ||
Guarantee Obligations Current Carrying Value | 1,760 | 1,760 | 1,760 | 1,722 | ||
Secured By Share | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Secured debt | 30,420 | 30,420 | 30,420 | 38,562 | ||
Secured Investments | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Secured debt | 35,355 | 35,355 | 35,355 | 37,013 | ||
Securities Pledged as Collateral | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Investment in securities pledged for primarily collateral deposits | ¥ 40,711 | ¥ 40,711 | ¥ 40,711 | ¥ 40,290 |
Commitments, Guarantees, and104
Commitments, Guarantees, and Contingent Liabilities (Minimum Future Rentals on Non-Cancelable Operating Leases) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Schedule of Operating Leases [Line Items] | ||
Within one year | ¥ 7,625 | ¥ 6,713 |
More than one year | 59,313 | 57,805 |
Total | ¥ 66,938 | ¥ 64,518 |
Commitments, Guarantees, and105
Commitments, Guarantees, and Contingent Liabilities (Amounts Due of Certain Computer Systems Operated and Maintained under Non-cancelable Contracts with Third-party Service Providers) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Commitments and Contingencies Disclosure [Line Items] | ||
Within one year | ¥ 4,984 | ¥ 5,255 |
More than one year | 7,839 | 9,142 |
Total | ¥ 12,823 | ¥ 14,397 |
Commitments, Guarantees, and106
Commitments, Guarantees, and Contingent Liabilities (Summary of Potential Future Payments, Book Value Recorded as Guarantee Liabilities of Guarantee Contracts Outstanding and Maturity of Longest Guarantee Contracts) (Detail) - JPY (¥) ¥ in Millions | 6 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Mar. 31, 2017 | |
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 964,024 | ¥ 896,498 |
Book value of guarantee liabilities | 47,126 | 43,884 |
Transferred Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | 167,806 | 167,799 |
Book value of guarantee liabilities | ¥ 1,306 | ¥ 1,300 |
Maturity of the longest contract (Years) | 2,048 | 2,047 |
Consumer Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 281,054 | ¥ 249,719 |
Book value of guarantee liabilities | ¥ 33,066 | ¥ 29,641 |
Maturity of the longest contract (Years) | 2,028 | 2,018 |
Housing Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 19,176 | ¥ 26,448 |
Book value of guarantee liabilities | ¥ 5,224 | ¥ 5,362 |
Maturity of the longest contract (Years) | 2,048 | 2,048 |
Other Guarantees | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 6,413 | ¥ 935 |
Book value of guarantee liabilities | ¥ 322 | ¥ 307 |
Maturity of the longest contract (Years) | 2,025 | 2,025 |
Corporate Loans | ||
Guarantor Obligations [Line Items] | ||
Potential future payment | ¥ 489,575 | ¥ 451,597 |
Book value of guarantee liabilities | ¥ 7,208 | ¥ 7,274 |
Maturity of the longest contract (Years) | 2,025 | 2,024 |
Commitments, Guarantees, and107
Commitments, Guarantees, and Contingent Liabilities (Assets Provided as Collateral for Short-term and Long-term Debt Payables to Financial Institutions) (Detail) - JPY (¥) ¥ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Debt Disclosure [Line Items] | ||
Minimum lease payments, loans and investment in operating leases | ¥ 71,533 | ¥ 102,339 |
Investment in securities | 185,417 | 172,084 |
Property under facility operations | 9,324 | 7,532 |
Other assets and other | 21,551 | 17,643 |
Total | ¥ 287,825 | ¥ 299,598 |
Segment Information (Financial
Segment Information (Financial Information of Segments) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Segment revenues | ¥ 725,499 | ¥ 633,180 | ¥ 1,517,796 | ¥ 1,221,125 | |
Segment profits | 78,460 | 67,527 | 169,401 | 146,939 | |
Assets | 11,426,036 | 11,426,036 | ¥ 11,231,895 | ||
Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 728,178 | 634,323 | 1,519,353 | 1,221,679 | |
Segment profits | 115,259 | 98,692 | 249,752 | 214,034 | |
Assets | 9,116,160 | 9,116,160 | 8,956,872 | ||
Operating Segment | Corporate Financial Services | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 28,566 | 27,005 | 53,983 | 51,995 | |
Segment profits | 11,824 | 11,380 | 22,049 | 19,874 | |
Assets | 1,001,476 | 1,001,476 | 1,032,152 | ||
Operating Segment | Maintenance Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 68,760 | 67,621 | 137,048 | 134,820 | |
Segment profits | 10,544 | 9,763 | 20,438 | 19,655 | |
Assets | 782,512 | 782,512 | 752,513 | ||
Operating Segment | Real Estate Segment | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 49,235 | 46,746 | 95,755 | 104,084 | |
Segment profits | 11,158 | 11,844 | 43,991 | 35,447 | |
Assets | 628,885 | 628,885 | 657,701 | ||
Operating Segment | Investment Banking | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 351,894 | 281,040 | 774,421 | 539,042 | |
Segment profits | 22,270 | 21,086 | 38,927 | 52,041 | |
Assets | 863,640 | 863,640 | 768,675 | ||
Operating Segment | Retail | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 106,908 | 97,089 | 219,505 | 151,095 | |
Segment profits | 20,936 | 22,975 | 42,950 | 35,507 | |
Assets | 3,209,131 | 3,209,131 | 3,291,631 | ||
Operating Segment | Overseas | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 122,815 | 114,822 | 238,641 | 240,643 | |
Segment profits | 38,527 | ¥ 21,644 | 81,397 | ¥ 51,510 | |
Assets | ¥ 2,630,516 | ¥ 2,630,516 | ¥ 2,454,200 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Totals to Consolidated Financial Statement Amounts) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | ||||
Segment revenues: | |||||||||||
Revenues | ¥ 725,499 | ¥ 633,180 | ¥ 1,517,796 | ¥ 1,221,125 | |||||||
Segment profits: | |||||||||||
Total profits for segments | 97,047 | 78,926 | 189,027 | 166,349 | |||||||
Gains (losses) related to assets or liabilities of certain VIEs | 10,474 | 12,346 | 24,972 | 32,834 | |||||||
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests | 148 | 148 | |||||||||
Income before Income Taxes | 117,001 | [1] | 100,801 | [1] | 252,612 | 219,235 | |||||
Segment assets: | |||||||||||
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | (57,976) | (55,788) | (57,976) | (55,788) | ¥ (60,759) | ¥ (59,227) | ¥ (58,507) | ¥ (60,071) | |||
Trade Notes, Accounts and Other Receivable | 276,278 | 276,278 | 283,427 | ||||||||
Other corporate assets | 1,469,676 | 1,469,676 | 1,363,263 | ||||||||
Assets of certain VIEs | [2] | 722,416 | 722,416 | 951,403 | |||||||
Assets | 11,426,036 | 11,426,036 | 11,231,895 | ||||||||
Operating Segment | |||||||||||
Segment revenues: | |||||||||||
Revenues | 728,178 | 634,323 | 1,519,353 | 1,221,679 | |||||||
Segment profits: | |||||||||||
Total profits for segments | 115,259 | 98,692 | 249,752 | 214,034 | |||||||
Segment assets: | |||||||||||
Assets | 9,116,160 | 9,116,160 | 8,956,872 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment revenues: | |||||||||||
Revenues | 2,850 | 2,666 | 6,949 | 6,967 | |||||||
Segment profits: | |||||||||||
Corporate gains (losses) | (529) | (192) | (569) | 307 | |||||||
Gains (losses) related to assets or liabilities of certain VIEs | 69 | 155 | (2) | 105 | |||||||
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests | 2,202 | 2,146 | 3,431 | 4,789 | |||||||
Segment assets: | |||||||||||
Cash and cash equivalents, restricted cash | 1,274,203 | 1,274,203 | 1,133,212 | ||||||||
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses | (57,976) | (57,976) | (59,227) | ||||||||
Trade Notes, Accounts and Other Receivable | 276,278 | 276,278 | 283,427 | ||||||||
Other corporate assets | 702,238 | 702,238 | 672,562 | ||||||||
Assets of certain VIEs | 115,133 | 115,133 | ¥ 245,049 | ||||||||
Corporate, Non-Segment | Variable Interest Entities | |||||||||||
Segment revenues: | |||||||||||
Revenues | 505 | 1,161 | 1,838 | 2,231 | |||||||
Intersegment Eliminations | |||||||||||
Segment revenues: | |||||||||||
Revenues | ¥ (6,034) | ¥ (4,970) | ¥ (10,344) | ¥ (9,752) | |||||||
[1] | Mainly the United States | ||||||||||
[2] | The assets of most VIEs are used only to repay the liabilities of the VIEs, and the creditors of the liabilities of most VIEs have no recourse to other assets of the Company and its subsidiaries. |
Segment Information (Geographic
Segment Information (Geographical Revenues and Income before Income Taxes) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | ¥ 725,499 | ¥ 633,180 | ¥ 1,517,796 | ¥ 1,221,125 | |||
Income before Income Taxes | 117,001 | [1] | 100,801 | [1] | 252,612 | 219,235 | |
Japan | Reportable Geographical Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | 600,013 | 511,782 | 1,270,724 | 967,471 | |||
Income before Income Taxes | 76,594 | [1] | 78,786 | [1] | 168,992 | 166,471 | |
The Americas | Reportable Geographical Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | [1] | 27,688 | 41,917 | 57,546 | 87,298 | ||
Income before Income Taxes | [1] | 14,473 | 6,369 | 26,893 | 16,032 | ||
Other Countries | Reportable Geographical Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Total Revenues | [2],[3] | 97,798 | 79,481 | 189,526 | 166,356 | ||
Income before Income Taxes | [2],[3] | ¥ 25,934 | [1] | ¥ 15,646 | [1] | ¥ 56,727 | ¥ 36,732 |
[1] | Mainly the United States | ||||||
[2] | Mainly Asia, Europe, Australasia and Middle East | ||||||
[3] | Robeco, one of the Company's subsidiaries domiciled in the Netherlands, conducts principally an asset management business. Due to the integrated nature of such business with its customer base spread across the world, "Other" locations include the total revenues and the income before income taxes of Robeco for the six and three months ended September 30, 2016 and 2017, respectively. The revenues of Robeco aggregated on a legal entity basis were ¥47,184 million in the Americas and ¥36,867 million in Other for the six months ended September 30, 2016, and ¥50,433 million in the Americas and ¥40,320 million in Other for the six months ended September 30, 2017, and ¥22,787 million in the Americas and ¥17,095 million in Other for the three months ended September 30, 2016, and ¥25,263 million in the Americas and ¥21,111 million in Other for the three months ended September 30, 2017. |
Segment Information (Geograp111
Segment Information (Geographical Revenues and Income before Income Taxes) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | ¥ 725,499 | ¥ 633,180 | ¥ 1,517,796 | ¥ 1,221,125 |
Robeco Groep N.V. | The Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 25,263 | 22,787 | 50,433 | 47,184 |
Robeco Groep N.V. | Other Countries | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | ¥ 21,111 | ¥ 17,095 | ¥ 40,320 | ¥ 36,867 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event | Oct. 26, 2017JPY (¥)shares |
Subsequent Event [Line Items] | |
Treasury stock acquisition, period start date | Oct. 27, 2017 |
Treasury stock acquisition, period end date | Oct. 26, 2018 |
Method of acquisition | Market purchases on the Tokyo Stock Exchange |
Maximum | |
Subsequent Event [Line Items] | |
Total number of shares to be acquired | shares | 4,100,000 |
Total amount of shares to be acquired, value | ¥ | ¥ 8,500,000,000 |