6-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2020.

Commission File Number: 001-14856

ORIX Corporation

(Translation of Registrant’s Name into English)

World Trade Center Bldg., 2-4-1 Hamamatsu-cho, Minato-ku,

Tokyo, JAPAN

(Address of Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F  ☒        Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Table of Document(s) Submitted

1. This is an English translation of ORIX Corporation’s quarterly financial report (shihanki houkokusho ) as filed with the Kanto Financial Bureau in Japan on February 13, 2020, which includes unaudited consolidated financial information prepared in accordance with generally accepted accounting principles in the United States as of March 31, 2019 and December 31, 2019 and for the three and nine months ended December 31, 2018 and 2019.

Exhibit 101	Instance Document
Exhibit 101	Schema Document
Exhibit 101	Calculation Linkbase Document
Exhibit 101	Definition Linkbase Document
Exhibit 101	Labels Linkbase Document
Exhibit 101	Presentation Linkbase Document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ORIX Corporation
Date: February 13, 2020	By	/s/ SHOJI TANIGUCHI
		Shoji Taniguchi
		Member of the Board of Directors Senior Managing Executive Officer Responsible for Treasury and Accounting Headquarters Responsible for Enterprise Risk Management Headquarters Responsible for Corporate Planning Department Responsible for Corporate Communications Department Assistant to CEO
		ORIX Corporation

CONSOLIDATED FINANCIAL INFORMATION

Notes to Translation

1. The following is an English translation of ORIX Corporation’s quarterly financial report (shihanki houkokusho) as filed with the Kanto Financial Bureau in Japan on February 13, 2020, which includes unaudited consolidated financial information prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) as of March 31, 2019 and December 31, 2019 and for the three and nine months ended December 31, 2018 and 2019.

2. Significant differences between U.S. GAAP and generally accepted accounting principles in Japan (“Japanese GAAP”) are stated in Note 1 “Overview of Accounting Principles Utilized” of the notes to Consolidated Financial Statements.

In preparing its consolidated financial information, ORIX Corporation (the “Company”) and its subsidiaries have complied with U.S. GAAP.

This document may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on the Company’s current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission.

The Company believes that it may have been a “passive foreign investment company” for U.S. federal income tax purposes in the year to which these consolidated financial results relate by reason of the composition of its assets and the nature of its income. In addition, the Company may be a PFIC for the foreseeable future. Assuming that the Company is a PFIC, a U.S. holder of the shares or ADSs of the Company will be subject to special rules generally intended to eliminate any benefits from the deferral of U.S. federal income tax that a holder could derive from investing in a foreign corporation that does not distribute all of its earnings on a current basis. Investors should consult their tax advisors with respect to such rules, which are summarized in the Company’s annual report.

– 1 –

1. Information on the Company and its Subsidiaries

(1) Consolidated Financial Highlights

	Millions of yen (except for per share amounts and ratios)
	Nine months ended December 31, 2018			Nine months ended December 31, 2019			Fiscal year ended March 31, 2019
Total revenues	¥	1,796,155		¥	1,684,379		¥	2,434,864
Income before income taxes		295,168			350,458			395,730
Net income attributable to ORIX Corporation shareholders		236,207			244,319			323,745
Comprehensive Income attributable to ORIX Corporation shareholders		229,249			227,756			310,970
ORIX Corporation shareholders’ equity		2,817,498			3,008,410			2,897,074
Total assets		12,121,792			12,842,958			12,174,917
Earnings per share for net income attributable to ORIX Corporation shareholders
Basic (yen)		184.53			190.99			252.92
Diluted (yen)		184.38			190.82			252.70
ORIX Corporation shareholders’ equity ratio (%)		23.2			23.4			23.8
Cash flows from operating activities		381,610			720,689			587,678
Cash flows from investing activities		(697,261	)		(1,087,655	)		(873,951	)
Cash flows from financing activities		246,739			108,506			166,647
Cash, Cash Equivalents and Restricted Cash at end of Period		1,335,199			1,020,609			1,283,580

Notes:	1.	Consumption tax is excluded from the stated amount of total revenues.
	2.	Accounting Standards Update 2016-02 (ASC 842 (“Leases”)) (hereinafter, “New Lease Standard”) has been adopted since April 1, 2019. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”

	Millions of yen (except for per share amounts)
	Three months ended December 31, 2018		Three months ended December 31, 2019
Total revenues	¥	534,141	¥	571,701
Net income attributable to ORIX Corporation shareholders		81,157		85,169
Earnings per share for net income attributable to ORIX Corporation shareholders
Basic (yen)		63.41		66.64

Notes:	1.	Consumption tax is excluded from the stated amount of total revenues.
	2.	New Lease Standard has been adopted since April 1, 2019. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”

(2) Overview of Activities

During the nine months ended December 31, 2019, no significant changes were made in the Company and its subsidiaries’ operations. Additionally, there were no changes of principal subsidiaries and affiliates.

– 2 –

2. Risk Factors

Investing in the Company’s securities involves risks. You should carefully consider the information described herein as well as the risks described under “Risk Factors” in our Form 20-F for the fiscal year ended March 31, 2019 and the other information in that annual report, including, but not limited to, the Company’s consolidated financial statements and related notes and “Item 11. Quantitative and Qualitative Disclosures about Market Risk.” The Company’s business activities, financial condition and results of operations and the trading prices of the Company’s securities could be adversely affected by any of those factors or other factors.

3. Analysis of Financial Results and Condition

The following discussion provides management’s explanation of factors and events that have significantly affected the Company’s financial condition and results of operations. Also included is management’s assessment of factors and trends that could have a material effect on the Company’s financial condition and results of operations in the future. However, please be advised that financial conditions and results of operations in the future may also be affected by factors other than those discussed herein. These factors and trends regarding the future were assessed as of the issue date of this quarterly financial report (shihanki houkokusho).

(1) Qualitative Information Regarding Consolidated Financial Results

Financial Highlights

Financial Results for the Nine Months Ended December 31, 2019

Total revenues	¥1,684,379 million (Down 6% year on year)
Total expenses	¥1,447,657 million (Down 6% year on year)
Income before income taxes	¥350,458 million (Up 19% year on year)
Net income attributable to ORIX Corporation Shareholders	¥244,319 million (Up 3% year on year)
Earnings per share for net income attributable to ORIX Corporation Shareholders
(Basic)	¥190.99 (Up 4% year on year)
(Diluted)	¥190.82 (Up 3% year on year)
ROE (Annualized) *1	11.0% (11.5% during the same period in the previous fiscal year)
ROA (Annualized) *2	2.60% (2.67% during the same period in the previous fiscal year)

*1 ROE is the ratio of Net income attributable to ORIX Corporation Shareholders for the period to average ORIX Corporation Shareholders’ Equity.

*2 ROA is the ratio of Net income attributable to ORIX Corporation Shareholders for the period to average Total Assets.

Total revenues for the nine months ended December 31, 2019 decreased 6% to ¥1,684,379 million compared to ¥1,796,155 million during the same period of the previous fiscal year due to a decrease in sales of goods and real estate due primarily to decreasing revenues generated by subsidiaries in the private equity business despite increases in gains on investment securities and dividends and life insurance premiums and related investment income.

Total expenses decreased 6% to ¥1,447,657 million compared to ¥1,537,971 million during the same period of the previous fiscal year due to a decrease in costs of goods and real estate sold in line with the aforementioned decreased revenues despite increases in life insurance costs and selling, general and administrative expenses.

In addition, as a result of increases in equity in net income of affiliates, and gains on sales of subsidiaries and affiliates and liquidation losses, net, income before income taxes for the nine months ended December 31, 2019 increased 19% to ¥350,458 million compared to ¥295,168 million during the same period of the previous fiscal year. Net income attributable to ORIX Corporation shareholders increased 3% to ¥244,319 million compared to ¥236,207 million during the same period of the previous fiscal year as a result of a decrease in provision for income taxes during the same period of the previous fiscal year due to the reversal of the deferred tax liabilities previously recorded for undistributed earnings of DAIKYO INCORPORATED (hereinafter, “DAIKYO”).

– 3 –

Segment Information

In fiscal 2019, the Company made DAIKYO a wholly-owned subsidiary, to complement their respective real estate business and to jointly aim for medium- and long-term growth as a comprehensive real estate business. Accordingly, the segment classification of DAIKYO has been shifted from Investment and Operation segment to Real Estate segment since the previous fiscal year. As a result of this change, the segment data of the previous fiscal year has been retrospectively restated.

The Company and its subsidiaries adopted the New Lease Standard on April 1, 2019. This adoption has resulted in a gross up of right-of-use assets of investment in operating leases and property under facility operations principally for operating leases, where the Company is the lessee, such as land leases and office and equipment leases in all of our segments except for Retail segment. Additionally, the amounts of investment in direct financing leases were reclassified to net investment in leases. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”

Total revenues and profits by segment for the nine months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018						Nine months ended December 31, 2019						Change (revenues)						Change (profits)
	Segment Revenues			Segment Profits			Segment Revenues			Segment Profits			Amount			Percent (%)			Amount			Percent (%)
Corporate Financial Services	¥	71,717		¥	19,760		¥	69,721		¥	13,159		¥	(1,996	)		(3	)	¥	(6,601	)		(33	)
Maintenance Leasing		214,304			30,387			224,017			25,767			9,713			5			(4,620	)		(15	)
Real Estate		357,381			54,721			332,039			56,070			(25,342	)		(7	)		1,349			2
Investment and Operation		504,032			31,091			341,302			55,590			(162,730	)		(32	)		24,499			79
Retail		289,288			66,237			355,468			70,447			66,180			23			4,210			6
Overseas Business		365,420			95,621			369,192			131,894			3,772			1			36,273			38
Total		1,802,142			297,817			1,691,739			352,927			(110,403	)		(6	)		55,110			19
Difference between Segment Total and Consolidated Amounts		(5,987	)		(2,649	)		(7,360	)		(2,469	)		(1,373	)		—			180			—
Total Consolidated Amounts	¥	1,796,155		¥	295,168		¥	1,684,379		¥	350,458		¥	(111,776	)		(6	)	¥	55,290			19
Total assets by segment as of March 31, 2019 and December 31, 2019 are as follows:
							Millions of yen
							March 31, 2019						December 31, 2019						Change
							Segment Assets			Composition Ratio (%)			Segment Assets			Composition Ratio (%)			Amount			Percent (%)
Corporate Financial Services							¥	959,725			8		¥	1,000,148			8		¥	40,423			4
Maintenance Leasing								873,775			7			900,943			7			27,168			3
Real Estate								720,221			6			756,092			6			35,871			5
Investment and Operation								733,612			6			808,466			6			74,854			10
Retail								3,571,437			29			4,110,336			32			538,899			15
Overseas Business								3,138,928			26			3,283,169			26			144,241			5
Total								9,997,698			82			10,859,154			85			861,456			9
Difference between Segment Total and Consolidated Amounts								2,177,219			18			1,983,804			15			(193,415	)		(9	)
Total Consolidated Amounts							¥	12,174,917			100		¥	12,842,958			100		¥	668,041			5

– 4 –

Segment information for the nine months ended December 31, 2019 is as follows:

Corporate Financial Services Segment: Finance and fee business

In this segment, we are focused on fee businesses related to life insurance, environment and energy, auto leasing related products and services provided to domestic small- and medium-sized enterprise customers while engaging in highly competitive businesses such as leasing and lending with a focus on profitability. We aim to grow our profit by maximizing synergies with Yayoi Co.,Ltd., a software service provider in the group, and by utilizing our domestic network to create new businesses.

Segment revenues decreased 3% to ¥69,721 million compared to the same period of the previous fiscal year due to decreases in finance revenues and services income in line with a decrease in fee income related to life insurance.

As a result of the foregoing and an increase in selling, general and administrative expenses resulting from the adoption of the New Lease Standard described above that changed the recognition of some lease related costs from deferred amortization to expensing as they are incurred, segment profits decreased 33% to ¥13,159 million compared to the same period of the previous fiscal year.

Segment assets increased 4% to ¥1,000,148 million compared to the end of the previous fiscal year due to an increase in investment in operating leases resulting from the adoption of the New Lease Standard despite a decrease in net investment in leases.

Although asset efficiency decreased compared to the same period of the previous fiscal year, we continue to diversify services income.

	Nine months ended December 31, 2018			Nine months ended December 31, 2019			Change
							Amount			Percent (%)
	(Millions of yen, except percentage data)
Segment Revenues:
Finance revenues	¥	22,271		¥	18,191		¥	(4,080	)		(18	)
Gains on investment securities and dividends		(701	)		1,475			2,176			—
Operating leases		17,809			17,059			(750	)		(4	)
Sales of goods and real estate		3,184			4,323			1,139			36
Services income		29,154			28,673			(481	)		(2	)
Total Segment Revenues		71,717			69,721			(1,996	)		(3	)
Segment Expenses:
Interest expense		3,108			2,763			(345	)		(11	)
Costs of operating leases		10,701			11,010			309			3
Costs of goods and real estate sold		1,283			1,527			244			19
Services expense		7,367			9,768			2,401			33
Selling, general and administrative expenses		28,197			32,941			4,744			17
Provision for doubtful receivables and probable loan losses and write-downs of long-lived assets and securities		558			747			189			34
Other		(91	)		(113	)		(22	)		—
Total Segment Expenses		51,123			58,643			7,520			15
Segment Operating Income		20,594			11,078			(9,516	)		(46	)
Equity in Net income (Loss) of Affiliates, and others		(834	)		2,081			2,915			—
Segment Profits	¥	19,760		¥	13,159		¥	(6,601	)		(33	)
	As of March 31, 2019			As of December 31, 2019			Change
							Amount			Percent (%)
	(Millions of yen, except percentage data)
Investment in direct financing leases	¥	403,639		¥	0		¥	(403,639	)		(100	)
Net investment in leases		0			383,755			383,755			100
Installment loans		364,818			374,021			9,203			3
Investment in operating leases		24,143			75,497			51,354			213
Investment in securities		31,522			24,413			(7,109	)		(23	)
Property under facility operations		16,973			19,242			2,269			13
Inventories		51			130			79			155
Advances for finance lease and operating lease		122			109			(13	)		(11	)
Investment in affiliates		16,276			18,029			1,753			11
Advances for property under facility operations		0			760			760			100
Goodwill, intangible assets acquired in business combinations		102,181			104,192			2,011			2
Total Segment Assets	¥	959,725		¥	1,000,148		¥	40,423			4

– 5 –

Maintenance Leasing Segment: Automobile leasing and rentals, car-sharing; test and measurement instruments and IT-related equipment rentals and leasing

In the automobile related businesses, which cover a large part of this segment, we aim to increase market share in small- and medium-sized enterprises and individuals as well as large corporate customers by enhancing our competitive advantages stemming from our industry-leading number of fleets under management and one-stop automobile-related services. Furthermore, we aim to develop new products and services to adapt to the change of industrial structure and obtain new business opportunities. In the rental business, we strengthened our engineering solution businesses by developing new services relating to robots and three-dimensional (3D) printing.

Segment revenues increased 5% to ¥224,017 million compared to the same period of the previous fiscal year due to an increase in operating leases revenues.

Segment profits decreased 15% to ¥25,767 million compared to the same period of the previous fiscal year due to an increase in selling, general and administrative expenses resulting from the adoption of the New Lease Standard that changed the recognition of some lease related costs from deferred amortization to expensing as they are incurred, and due to an increase in service expense resulting from enhancing the quality of services for expanding our customer bases.

Segment assets increased 3% to ¥900,943 million compared to the end of the previous fiscal year due to an increase in new business volumes of investment in operating leases.

Although asset efficiency decreased compared to the same period of the previous fiscal year, we have maintained stable profitability.

	Nine months ended December 31, 2018		Nine months ended December 31, 2019			Change
						Amount			Percent (%)
	(Millions of yen, except percentage data)
Segment Revenues:
Finance revenues	¥	10,714	¥	11,757		¥	1,043			10
Operating leases		147,698		154,351			6,653			5
Services income		52,409		53,116			707			1
Other		3,483		4,793			1,310			38
Total Segment Revenues		214,304		224,017			9,713			5
Segment Expenses:
Interest expense		2,338		2,151			(187	)		(8	)
Costs of operating leases		114,804		122,037			7,233			6
Services expense		30,114		31,490			1,376			5
Selling, general and administrative expenses		34,645		38,817			4,172			12
Provision for doubtful receivables and probable loan losses and write-downs of long-lived assets and securities		265		88			(177	)		(67	)
Other		2,844		3,654			810			28
Total Segment Expenses		185,010		198,237			13,227			7
Segment Operating Income		29,294		25,780			(3,514	)		(12	)
Equity in Net income (Loss) of Affiliates, and others		1,093		(13	)		(1,106	)		—
Segment Profits	¥	30,387	¥	25,767		¥	(4,620	)		(15	)
	As of March 31, 2019		As of December 31, 2019			Change
						Amount			Percent (%)
	(Millions of yen, except percentage data)
Investment in direct financing leases	¥	328,424	¥	0		¥	(328,424	)		(100	)
Net investment in leases		0		325,608			325,608			100
Investment in operating leases		525,392		556,130			30,738			6
Investment in securities		506		556			50			10
Property under facility operations		988		1,008			20			2
Inventories		587		690			103			18
Advances for finance lease and operating lease		669		227			(442	)		(66	)
Investment in affiliates		33		20			(13	)		(39	)
Goodwill, intangible assets acquired in business combinations		17,176		16,704			(472	)		(3	)
Total Segment Assets	¥	873,775	¥	900,943		¥	27,168			3

– 6 –

Real Estate Segment: Real estate development, rental and management; facility operation; real estate investment management

In this segment, we aim to promote portfolio rebalancing by selling rental properties in favorable markets and to expand the scale of our asset management business, such as REIT and real estate investment advisory services, in order to construct a portfolio that is less affected by volatility in the real estate market. We aim to enhance mutually complementary aspects of the DAIKYO and ORIX real estate businesses, to gain stable profits by accumulating expertise through the operation of various facilities such as hotels and Japanese inns, and to develop new businesses by taking advantage of our value chain of real estate development and rental, asset management and facility operations.

Segment revenues decreased 7% to ¥332,039 million compared to the same period of the previous fiscal year due to a decrease in services income from significant gains on a sale of property under facility operations that were recognized during the same period of the previous fiscal year and due to a decrease in operating leases revenues resulting from sales of rental properties.

Segment profits increased 2% to ¥56,070 million compared to the same period of the previous fiscal year due to the recognition of gains on sales of a subsidiary which operates senior housings.

Although property under facility operations decreased due to sales of a subsidiary, segment assets increased 5% to ¥756,092 million compared to the end of the previous fiscal year due to an increase in investment in operating leases resulting from the adoption of the New Lease Standard, and due to an increase in inventories of DAIKYO.

Asset efficiency increased compared to the same period of the previous fiscal year, and we continuously make new investments in carefully selected areas and properties.

	Nine months ended December 31, 2018			Nine months ended December 31, 2019		Change
						Amount			Percent (%)
	(Millions of yen, except percentage data)
Segment Revenues:
Finance revenues	¥	1,518		¥	2,120	¥	602			40
Operating leases		55,968			48,977		(6,991	)		(12	)
Sales of goods and real estate		67,718			67,775		57			0
Services income		232,321			213,021		(19,300	)		(8	)
Other		(144	)		146		290			—
Total Segment Revenues		357,381			332,039		(25,342	)		(7	)
Segment Expenses:
Interest expense		1,733			1,034		(699	)		(40	)
Costs of operating leases		19,227			18,591		(636	)		(3	)
Costs of goods and real estate sold		61,299			63,104		1,805			3
Services expense		190,440			179,944		(10,496	)		(6	)
Selling, general and administrative expenses		32,997			32,784		(213	)		(1	)
Provision for doubtful receivables and probable loan losses and write-downs of long-lived assets and securities		24			22		(2	)		(8	)
Other		665			509		(156	)		(23	)
Total Segment Expenses		306,385			295,988		(10,397	)		(3	)
Segment Operating Income		50,996			36,051		(14,945	)		(29	)
Equity in Net income (Loss) of Affiliates, and others		3,725			20,019		16,294			437
Segment Profits	¥	54,721		¥	56,070	¥	1,349			2
	As of March 31, 2019			As of December 31, 2019		Change
						Amount			Percent (%)
	(Millions of yen, except percentage data)
Investment in direct financing leases	¥	35,420		¥	0	¥	(35,420	)		(100	)
Net investment in leases		0			35,556		35,556			100
Installment loans		316			0		(316	)		(100	)
Investment in operating leases		242,022			281,738		39,716			16
Investment in securities		8,038			7,581		(457	)		(6	)
Property under facility operations		146,100			128,591		(17,509	)		(12	)
Inventories		80,920			96,971		16,051			20
Advances for finance lease and operating lease		29,946			37,879		7,933			26
Investment in affiliates		107,072			96,205		(10,867	)		(10	)
Advances for property under facility operations		6,790			9,655		2,865			42
Goodwill, intangible assets acquired in business combinations		63,597			61,916		(1,681	)		(3	)
Total Segment Assets	¥	720,221		¥	756,092	¥	35,871			5

– 7 –

Investment and Operation Segment: Environment and energy, private equity and concession

In the environment and energy business, we aim to increase services revenue by promoting our renewable energy business and our electric power retailing business as a comprehensive energy service provider. In our solar power business, we have secured abundant solar power capacity and are operating many projects, making us one of the largest solar power producers in Japan. We intend to accelerate our renewable energy business overseas by utilizing the expertise we have gained in the domestic market. In the private equity business, we aim to earn stable profits from investees and sustainable gains on sales through rebalancing our portfolio. We intend to diversify our investment methods and expand our target zone. Regarding the concession business, we aim to strengthen our operations in the three airports, Kansai International Airport, Osaka International Airport and Kobe Airport, and also aim to proactively engage in the operation of public infrastructures other than airports.

Segment revenues decreased 32% to ¥341,302 million compared to the same period of the previous fiscal year due to a decrease in sales of goods by a subsidiary in the private equity business.

Segment profits increased 79% to ¥55,590 million compared to the same period of the previous fiscal year due to the recognition of gains on sales of subsidiaries and due to an increase in equity in net income of affiliates.

Segment assets increased 10% to ¥808,466 million compared to the end of the previous fiscal year due to an increase in property under facility operations in the environment and energy business as a result of making investee wind power generation companies into our subsidiaries and adoption of the New Lease Standard described above.

Asset efficiency increased compared to the same period of the previous year, and the solar power business has grown steadily and profit from the concession business has also steadily increased.

	Nine months ended			Nine months ended			Change
	December 31, 2018			December 31, 2019			Amount			Percent (%)
	(Millions of yen, except percentage data)
Segment Revenues:
Finance revenues	¥	7,030		¥	5,225		¥	(1,805	)		(26	)
Gains on investment securities and dividends		148			2,106			1,958			—
Sales of goods and real estate		371,192			197,472			(173,720	)		(47	)
Services income		125,013			135,606			10,593			8
Other		649			893			244			38
Total Segment Revenues		504,032			341,302			(162,730	)		(32	)
Segment Expenses:
Interest expense		5,240			5,751			511			10
Costs of goods and real estate sold		344,323			172,340			(171,983	)		(50	)
Services expense		96,663			103,238			6,575			7
Selling, general and administrative expenses		38,074			37,431			(643	)		(2	)
Provision for doubtful receivables and probable loan losses and write-downs of long-lived assets and securities		(66	)		(108	)		(42	)		—
Other		400			131			(269	)		(67	)
Total Segment Expenses		484,634			318,783			(165,851	)		(34	)
Segment Operating Income		19,398			22,519			3,121			16
Equity in Net income (Loss) of Affiliates, and others		11,693			33,071			21,378			183
Segment Profits	¥	31,091		¥	55,590		¥	24,499			79
	As of			As of			Change
	March 31, 2019			December 31, 2019			Amount			Percent (%)
	(Millions of yen, except percentage data)
Investment in direct financing leases	¥	25,696		¥	0		¥	(25,696	)		(100	)
Net investment in leases		0			26,742			26,742			100
Installment loans		47,573			40,434			(7,139	)		(15	)
Investment in operating leases		5,474			14,008			8,534			156
Investment in securities		25,786			24,084			(1,702	)		(7	)
Property under facility operations		264,994			364,267			99,273			37
Inventories		30,776			32,079			1,303			4
Advances for finance lease and operating lease		1,340			914			(426	)		(32	)
Investment in affiliates		161,966			148,930			(13,036	)		(8	)
Advances for property under facility operations		11,291			17,191			5,900			52
Goodwill, intangible assets acquired in business combinations		158,716			139,817			(18,899	)		(12	)
Total Segment Assets	¥	733,612		¥	808,466		¥	74,854			10

– 8 –

Retail Segment: Life insurance, banking and card loan

In the life insurance business, we aim to increase the number of policies in force and revenues from insurance premiums by offering simple-to-understand products through sales agencies and online. In the banking business, we aim to increase finance revenues by increasing the balance of outstanding housing loans which is a core of our banking business. In the card loan business, we aim to increase revenues from guarantee fees by expanding guarantees against loans disbursed by other financial institutions. We also aim to increase finance revenues by making loans directly to our customers through our experience and expertise in credit screening.

Segment revenues increased 23% to ¥355,468 million compared to the same period of the previous fiscal year due to an improvement in investment income from assets under variable annuity and variable life insurance contracts, and due to an increase in life insurance premiums in line with an increase in new insurance contracts.

Segment profits increased 6% to ¥70,447 million compared to the same period of the previous fiscal year for the above reasons despite increases in life insurance costs and selling, general and administrative expenses resulting from the costs to improve customer service system.

Segment assets increased 15% to ¥4,110,336 million compared to the end of the previous fiscal year due to increases in investment in securities with the growth of the life insurance business and installment loans with the growth of the banking business.

Although asset efficiency decreased compared to the same period of the previous fiscal year, the number of insurance policies in force in the life insurance business and the balance of housing loans in the banking business have grown steadily.

	Nine months ended December 31, 2018			Nine months ended December 31, 2019		Change
						Amount			Percent (%)
	(Millions of yen, except percentage data)
Segment Revenues:
Finance revenues	¥	57,641		¥	60,221	¥	2,580			4
Life insurance premiums and related investment income		229,052			291,694		62,642			27
Other		2,595			3,553		958			37
Total Segment Revenues		289,288			355,468		66,180			23
Segment Expenses:
Interest expense		3,083			3,262		179			6
Life insurance costs		153,747			210,299		56,552			37
Selling, general and administrative expenses		56,274			58,490		2,216			4
Provision for doubtful receivables and probable loan losses and write-downs of long-lived assets and securities		8,410			9,765		1,355			16
Other		1,514			3,208		1,694			112
Total Segment Expenses		223,028			285,024		61,996			28
Segment Operating Income		66,260			70,444		4,184			6
Equity in Net income (Loss) of Affiliates, and others		(23	)		3		26			—
Segment Profits	¥	66,237		¥	70,447	¥	4,210			6
	As of March 31, 2019			As of December 31, 2019		Change
						Amount			Percent (%)
	(Millions of yen, except percentage data)
Investment in direct financing leases	¥	42		¥	0	¥	(42	)		(100	)
Installment loans		2,049,980			2,291,736		241,756			12
Investment in operating leases		29,810			29,350		(460	)		(2	)
Investment in securities		1,474,750			1,772,787		298,037			20
Investment in affiliates		631			239		(392	)		(62	)
Goodwill, intangible assets acquired in business combinations		16,224			16,224		0			—
Total Segment Assets	¥	3,571,437		¥	4,110,336	¥	538,899			15

– 9 –

Overseas Business Segment: Asset management, aircraft- and ship-related operations, private equity and finance

In the United States, we aim to expand our business areas by engaging in equity investments and fee businesses such as fund management in addition to corporate finance and investments in bonds. In our aircraft-related operations, we are focusing on profit opportunities within operating lease, sales of used aircraft to domestic and overseas investors, and asset management services for the aircraft owned by others. All of these opportunities are backed by the growing demand of passengers and for aircraft. We also aim to promote the expansion of functionality and diversification in our overseas group companies.

Segment revenues increased 1% to ¥369,192 million compared to the same period of the previous fiscal year due to increases in finance revenues in the United States through the acquisition of NXT Capital Group, LLC (hereinafter, “NXT Capital”), which we acquired in the previous fiscal year, and in gains on investment securities through selling an investee in Asia, despite decreases in services income and operating leases revenues.

As a result of the foregoing and an increase in equity in net income of affiliates from Avolon Holdings Limited (hereinafter, “Avolon”), a leading global aircraft leasing company located in Ireland whose shares we acquired in the previous fiscal year and an increase in gains on sales of shares of subsidiaries and affiliates, segment profits increased 38% to ¥131,894 million compared to the same period of the previous fiscal year.

Segment assets increased 5% to ¥3,283,169 million compared to the end of the previous fiscal year due to an increase in investment in installment loans in the United States by NXT Capital and due to an increase in investment in operating leases in aircraft business.

Asset efficiency increased compared to the same period of the previous fiscal year. We have steadily expanded our asset management business in the United States including NXT Capital, and aircraft-related operations including Avolon.

	Nine months ended December 31, 2018		Nine months ended December 31, 2019		Change
					Amount			Percent (%)
	(Millions of yen, except percentage data)
Segment Revenues:
Finance revenues	¥	80,536	¥	93,567	¥	13,031			16
Gains on investment securities and dividends		5,536		23,508		17,972			325
Operating leases		93,598		84,918		(8,680	)		(9	)
Services income		179,352		162,592		(16,760	)		(9	)
Other		6,398		4,607		(1,791	)		(28	)
Total Segment Revenues		365,420		369,192		3,772			1
Segment Expenses:
Interest expense		44,463		51,459		6,996			16
Costs of operating leases		46,675		47,577		902			2
Services expense		50,776		42,543		(8,233	)		(16	)
Selling, general and administrative expenses		134,300		139,452		5,152			4
Provision for doubtful receivables and probable loan losses and write-downs of long-lived assets and securities		5,802		5,800		(2	)		(0	)
Other		6,571		4,616		(1,955	)		(30	)
Total Segment Expenses		288,587		291,447		2,860			1
Segment Operating Income		76,833		77,745		912			1
Equity in Net income (Loss) of Affiliates, and others		18,788		54,149		35,361			188
Segment Profits	¥	95,621	¥	131,894	¥	36,273			38
	As of March 31, 2019		As of December 31, 2019		Change
					Amount			Percent (%)
	(Millions of yen, except percentage data)
Investment in direct financing leases	¥	362,391	¥	0	¥	(362,391	)		(100	)
Net investment in leases		0		370,642		370,642			100
Installment loans		814,847		909,261		94,414			12
Investment in operating leases		509,117		554,097		44,980			9
Investment in securities		385,339		396,182		10,843			3
Property under facility operations and servicing assets		44,149		45,317		1,168			3
Inventories		3,161		1,903		(1,258	)		(40	)
Advances for finance lease and operating lease		10,932		7,629		(3,303	)		(30	)
Investment in affiliates		556,682		558,487		1,805			0
Goodwill, intangible assets acquired in business combinations		452,310		439,651		(12,659	)		(3	)
Total Segment Assets	¥	3,138,928	¥	3,283,169	¥	144,241			5

– 10 –

(2) Financial Condition

	As of March 31, 2019			As of December 31, 2019			Change
							Amount		Percent (%)
	(Millions of yen except per share, ratios and percentages)
Total assets	¥	12,174,917		¥	12,842,958		¥	668,041		5
(Segment assets)		9,997,698			10,859,154			861,456		9
Total liabilities		9,211,936			9,753,531			541,595		6
(Short- and long-term debt)		4,495,771			4,503,311			7,540		0
(Deposits)		1,927,741			2,169,106			241,365		13
ORIX Corporation shareholders’ equity		2,897,074			3,008,410			111,336		4
ORIX Corporation shareholders’ equity per share (yen)*1		2,263.41			2,363.84			100.43		4
ORIX Corporation shareholders’ equity ratio*2		23.8	%		23.4	%		—		—
D/E ratio (Debt-to-equity ratio) (Short-and long-term debt (excluding deposits) / ORIX Corporation shareholders’ equity)		1.6x			1.5x			—		—

*1 ORIX Corporation shareholders’ equity per share is calculated using total ORIX Corporation shareholders’ equity.

*2 ORIX Corporation shareholders’ equity ratio is the ratio as of the period end of ORIX Corporation shareholders’ equity to total assets.

Total assets increased 5% to ¥12,842,958 million compared to the balance as of March 31, 2019 due to not only increases in installment loans and investment in securities, but also increases in investment in operating leases, property under facility operations and office facilities as a result of our adoption of the New Lease Standard. In addition, segment assets increased 9% to ¥10,859,154 million compared to the balance as of March 31, 2019.

Total liabilities increased compared to the balance as of March 31, 2019 due to not only increases in short-term debt and deposits, but also an increase in other liabilities as a result of our adoption of the New Lease Standard.

ORIX Corporation shareholders’ equity increased 4% to ¥3,008,410 million compared to the balance as of March 31, 2019 due primarily to an increase in retained earnings.

– 11 –

(3) Liquidity and Capital Resources

We require capital resources for working capital, investment and loan in our businesses. We accordingly prioritize funding stability, maintaining adequate liquidity and reducing capital costs. We formulate and execute on funding policies that are resistant to sudden negative events in financial markets, and then conduct funding activities in accordance with actual transitions in our assets and changes in financial markets. In preparing our management plan, we project funding activities to maintain a balanced capital structure in light of projected cash flows, asset liquidity and our own liquidity situation. When implementing our management plan, we adjust our funding based on changes in the external environment and our needs in light of our business activities, and endeavor to maintain flexibility in our funding activities. We endeavor to diversify our funding sources, promote longer liability maturities, disperse interest and principal repayment dates, maintain sufficient liquidity, optimize the balance of liabilities and equity and reinforce our funding stability.

Our funding is comprised of borrowings from financial institutions, direct fund procurement from capital markets and deposits. ORIX Group’s total funding including that from short- and long-term debt and deposits on a consolidated basis was ¥6,672,417 million as of December 31, 2019. Borrowings are procured from a diverse range of financial institutions including major banks, regional banks, foreign banks and life and casualty insurance companies. The number of financial institutions from which we procured borrowings exceeded 200 as of December 31, 2019. Procurement from the capital markets is composed of bonds, medium-term notes, commercial paper, payables under securitized lease and loan receivables and other assets (including asset backed securities). The majority of deposits are attributable to ORIX Bank Corporation.

Short-term and long-term debt and deposits

(a) Short-term debt

	Millions of yen
	March 31, 2019		December 31, 2019
Borrowings from financial institutions	¥	268,488	¥	299,801
Commercial paper		41,061		84,331
Total short-term debt	¥	309,549	¥	384,132

Short-term debt as of December 31, 2019 was ¥384,132 million, which accounted for 9% of the total amount of short- and long-term debt (excluding deposits) as compared to 7% as of March 31, 2019.

While the amount of short-term debt as of December 31, 2019 was ¥384,132 million, the sum of cash and cash equivalents and the unused amount of committed credit facilities as of December 31, 2019 was ¥1,239,211 million.

(b) Long-term debt

	Millions of yen
	March 31, 2019		December 31, 2019
Borrowings from financial institutions	¥	3,010,880	¥	3,056,091
Bonds		807,460		751,775
Medium-term notes		190,082		179,058
Payables under securitized lease and loan receivables and other assets		177,800		132,255
Total long-term debt	¥	4,186,222	¥	4,119,179

The balance of long-term debt as of December 31, 2019 was ¥4,119,179 million, which accounted for 91% of the total amount of short- and long-term debt (excluding deposits) as compared to 93% as of March 31, 2019.

(c) Deposits

	Millions of yen
	March 31, 2019		December 31, 2019
Deposits	¥	1,927,741	¥	2,169,106

Apart from the short-term and long-term debt noted above, ORIX Bank Corporation and ORIX Asia Limited accept deposits. These deposit-taking subsidiaries are regulated institutions, and loans from these subsidiaries to ORIX Group entities are subject to maximum regulatory limits.

– 12 –

(4) Summary of Cash Flows

Cash, cash equivalents and restricted cash as of December 31, 2019 decreased by ¥262,971 million to ¥1,020,609 million compared to March 31, 2019. New Lease Standard has been adopted since April 1, 2019. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”

Cash flows provided by operating activities were ¥720,689 million in the nine months ended December 31, 2019, up from ¥381,610 million during the same period of the previous fiscal year, primarily because the classification of cash flows from principal payments received under net investment in leases changed from cash flows from operating activities to cash flows from investing activities, starting from this fiscal year.

Cash flows used in investing activities were ¥1,087,655 million in the nine months ended December 31, 2019, up from ¥697,261 million during the same period of the previous fiscal year, primarily because the classification of cash flows from principal payments received under net investment in leases changed from cash flows from operating activities to cash flows from investing activities, starting from this fiscal year.

Cash flows provided by financing activities were ¥108,506 million in the nine months ended December 31, 2019, down from ¥246,739 million during the same period of the previous fiscal year. This change resulted primarily from a decrease in proceeds from debt with maturities longer than three months.

(5) Management Policy and Strategy

During the three months ended September 30, 2019, based on the current situation of high asset value and increasing recession and geopolitical risk, ORIX Group revised our target performance indicators under our management policy to achieve continuous growth through investments without missing good opportunities while keeping our cautious management stance. The new performance indicators are as follows.

Target Performance Indicators

In pursuit of sustainable growth, ORIX Group uses the following performance indicators: Net income attributable to ORIX Corporation shareholders to indicate profitability, ROE to indicate capital efficiency, and credit ratings to indicate financial soundness. In the fiscal year ending March 31, 2020, we aim to achieve annual net income attributable to ORIX Corporation shareholders of ¥300,000 million. In addition, ORIX Group continues financial soundness and make maximum effort to maintain our single A credit rating. ORIX Group aims to achieve ROE above 11% as our medium to long- term strategic directions.

Performance indicators for the fiscal years ended March 31, 2017, 2018 and 2019 and for the nine months ended December 31, 2019 are as follows.

	Year ended March 31, 2017			Year ended March 31, 2018			Year ended March 31, 2019			Nine months ended December 31, 2019
Net Income Attributable to ORIX Corporation Shareholders (millions of yen)		273,239			313,135			323,745			244,319
ROE* (%)		11.3			12.1			11.6			11.0
Credit Ratings
R&I       Long-Term Debt		A + (Stable	)		A + (Stable	)		A + (Positive	)		A + (Positive	)
S&P       Long-Term Debt		A - (Negative	)		A - (Stable	)		A - (Negative	)		A - (Negative	)
Fitch       Long-Term Debt		A - (Stable	)		A - (Stable	)		A - (Stable	)		A - (Stable	)
Moody’s       Long-Term Debt		Baa1 (Stable	)		Baa1 (Positive	)		A3 (Stable	)		A3 (Stable	)

* ROE is the ratio of Net Income Attributable to ORIX Corporation Shareholders for the period to average ORIX Corporation Shareholders’ Equity.

(6) Challenges to be addressed

There were no significant changes for the nine months ended December 31, 2019.

– 13 –

(7) Research and Development Activity

There were no significant changes in research and development activities for the nine months ended December 31, 2019.

(8) Major Facilities

There were no significant changes in major facilities for the nine months ended December 31, 2019.

4. Material Contracts

Not applicable.

5. Company Stock Information

(The following disclosure is provided for ORIX Corporation on a stand-alone basis and has been prepared based on Japanese GAAP.)

(1) Issued Shares, Common Stock and Capital Reserve

The number of issued shares, the amount of common stock and capital reserve for the three months ended December 31, 2019 is as follows:

In thousands		Millions of yen
Number of issued shares		Common stock		Capital reserve
Increase, net	December 31, 2019	Increase, net	December 31, 2019	Increase, net	December 31, 2019
0	1,324,629	¥0	¥221,111	¥0	¥248,290

(2) List of Major Shareholders

Not applicable (this item is not subject to disclosure in the quarterly report for the three months ended December 31, 2019).

6. Directors and Executive Officers

Between the filing date of Form 20-F for the fiscal year ended March 31, 2019 and December 31, 2019, personnel changes of our directors and the executive officers are as follows:

(1) Departures

Name	Title	Areas of duties	The day of retirement
Hideto Nishitani	Managing Executive Officer	Assistant to CEO	October 31, 2019
Kazutaka Shimoura	Managing Executive Officer	Credit and Investment Management Headquarters	December 31, 2019
Toshinari Fukaya	Executive Officer	Real Estate Headquarters Finance and Investment Department	December 31, 2019
Yoshiko Fujii	Executive Officer	Global General Counsel Office	December 31, 2019
Takayuki Okamoto	Executive Officer	Enterprise Risk Management Headquarters	December 31, 2019
Katsunobu Kamei	Group Senior Managing Executive	Chairman, ORIX Auto Corporation	December 31, 2019
Shinichi Obara	Group Executive	President, ORIX Rentec Corporation	December 31, 2019
Toyonori Takahashi	Group Executive	President, ORIX Real Estate Corporation	December 31, 2019
Michio Minato	Group Executive	President, ORIX Baseball Club Co., Ltd.	December 31, 2019

Note: Name on the family register of Yoshiko Fujii is Yoshiko Hirano.

(2) Change of Position

Name	New Position	Ex-Position	The day of change
Hideto Nishitani	Managing Executive Officer Assistant to CEO	Managing Executive Officer Chairman and President, ORIX Corporation USA	September 15, 2019
Yoshiteru Suzuki	Managing Executive Officer President and Chief Executive Officer, ORIX Corporation USA	Managing Executive Officer Deputy President, ORIX Corporation USA	September 15, 2019

– 14 –

7. Financial Information

(1) Condensed Consolidated Balance Sheets (Unaudited)

		Millions of yen
Assets		March 31, 2019			December 31, 2019
Cash and Cash Equivalents		¥	1,161,032		¥	902,312
Restricted Cash			122,548			118,297
Investment in Direct Financing Leases			1,155,632			0
Net Investment in Leases			0			1,142,339
Installment Loans			3,277,670			3,615,530
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2019	¥38,671 million
December 31, 2019	¥43,238 million
Allowance for Doubtful Receivables on Finance Leases and Probable Loan Losses			(58,011	)		(56,922	)
Investment in Operating Leases			1,335,959			1,505,253
Investment in Securities			1,928,916			2,228,604
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2019	¥27,367 million
December 31, 2019	¥25,583 million
Property under Facility Operations			441,632			524,692
Investment in Affiliates			842,760			821,983
Trade Notes, Accounts and Other Receivable			280,590			276,405
Inventories			115,695			131,958
Office Facilities			108,390			198,427
Other Assets			1,462,104			1,434,080
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2019	¥12,449 million
December 31, 2019	¥9,219 million
Total Assets		¥	12,174,917		¥	12,842,958

Notes:	1.	Accounting Standards Update 2016-02 (ASC 842 (“Leases”)) (hereinafter, “New Lease Standard”) has been adopted since April 1, 2019, and the amounts of investment in direct financing leases have been reclassified to net investment in leases. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”
	2.	The assets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of those VIEs are below:

	Millions of yen
	March 31, 2019		December 31, 2019
Cash and Cash Equivalents	¥	4,437	¥	4,343
Investment in Direct Financing Leases (Net of Allowance for Doubtful Receivables on Finance Leases and Probable Loan Losses)		15,058		0
Net Investment in Leases (Net of Allowance for Doubtful Receivables on Finance Leases and Probable Loan Losses)		0		5,718
Installment Loans (Net of Allowance for Doubtful Receivables on Finance Leases and Probable Loan Losses)		185,988		202,697
Investment in Operating Leases		82,405		83,939
Property under Facility Operations		203,933		295,130
Investment in Affiliates		52,079		51,608
Other		100,101		106,311
	¥	644,001	¥	749,746

– 15 –

		Millions of yen
Liabilities and Equity		March 31, 2019			December 31, 2019
Liabilities:
Short-Term Debt		¥	309,549		¥	384,132
Deposits			1,927,741			2,169,106
Trade Notes, Accounts and Other Payable			293,480			226,900
Policy Liabilities and Policy Account Balances			1,521,355			1,574,160
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2019	¥360,198 million
December 31, 2019	¥333,017 million
Current and Deferred Income Taxes			355,843			370,842
Long-Term Debt			4,186,222			4,119,179
Other Liabilities			617,746			909,212
Total Liabilities			9,211,936			9,753,531
Redeemable Noncontrolling Interests			9,780			9,720
Commitments and Contingent Liabilities
Equity:
Common Stock			221,111			221,111
Additional Paid-in Capital			257,625			258,271
Retained Earnings			2,555,585			2,696,080
Accumulated Other Comprehensive Income (Loss)			(61,343	)		(77,906	)
Treasury Stock, at Cost			(75,904	)		(89,146	)
ORIX Corporation Shareholders’ Equity			2,897,074			3,008,410
Noncontrolling Interests			56,127			71,297
Total Equity			2,953,201			3,079,707
Total Liabilities and Equity		¥	12,174,917		¥	12,842,958

Notes:	1.	New Lease Standard has been adopted since April 1, 2019. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”
	2.	The liabilities of consolidated VIEs for which creditors (or beneficial interest holders) do not have recourse to the general credit of the Company and its subsidiaries are below:

	Millions of yen
	March 31, 2019		December 31, 2019
Short-Term Debt	¥	580	¥	4,651
Trade Notes, Accounts and Other Payable		7,339		3,328
Long-Term Debt		418,631		441,162
Other		16,480		46,431
	¥	443,030	¥	495,572

– 16 –

(2) Condensed Consolidated Statements of Income (Unaudited)

	Millions of yen
	Nine months ended December 31,  2018		Nine months ended December 31,  2019
Revenues:
Finance revenues	¥	179,951	¥	190,504
Gains on investment securities and dividends		4,767		27,666
Operating leases		313,321		303,148
Life insurance premiums and related investment income		228,020		290,656
Sales of goods and real estate		453,199		280,127
Services income		616,897		592,278
Total revenues		1,796,155		1,684,379
Expenses:
Interest expense		67,376		74,006
Costs of operating leases		191,493		197,309
Life insurance costs		152,799		209,137
Costs of goods and real estate sold		415,810		245,747
Services expense		375,245		367,521
Other (income) and expense, net		242		(131	)
Selling, general and administrative expenses		320,084		337,754
Provision for doubtful receivables and probable loan losses		14,075		15,724
Write-downs of long-lived assets		26		554
Write-downs of securities		821		36
Total expenses		1,537,971		1,447,657
Operating Income		258,184		236,722
Equity in Net Income of Affiliates		16,514		54,226
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net		20,470		58,488
Bargain Purchase Gain		0		1,022
Income before Income Taxes		295,168		350,458
Provision for Income Taxes		56,140		102,649
Net Income		239,028		247,809
Net Income Attributable to the Noncontrolling Interests		2,387		3,131
Net Income Attributable to the Redeemable Noncontrolling Interests		434		359
Net Income Attributable to ORIX Corporation Shareholders	¥	236,207	¥	244,319
	Yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Amounts per Share of Common Stock for Net Income Attributable to ORIX Corporation Shareholders:
Basic:	¥	184.53	¥	190.99
Diluted:	¥	184.38	¥	190.82

– 17 –

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Revenues:
Finance revenues	¥	62,599		¥	64,380
Gains on investment securities and dividends		(6,968	)		7,285
Operating leases		104,346			100,743
Life insurance premiums and related investment income		47,416			108,188
Sales of goods and real estate		122,438			95,633
Services income		204,310			195,472
Total revenues		534,141			571,701
Expenses:
Interest expense		25,528			23,763
Costs of operating leases		64,127			66,388
Life insurance costs		27,065			78,177
Costs of goods and real estate sold		110,497			85,705
Services expense		127,673			119,772
Other (income) and expense, net		745			644
Selling, general and administrative expenses		109,438			116,563
Provision for doubtful receivables and probable loan losses		5,865			5,151
Write-downs of long-lived assets		0			518
Write-downs of securities		113			0
Total expenses		471,051			496,681
Operating Income		63,090			75,020
Equity in Net Income of Affiliates		9,695			21,609
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net		1,438			25,200
Income before Income Taxes		74,223			121,829
Provision for Income Taxes		(8,186	)		35,684
Net Income		82,409			86,145
Net Income Attributable to the Noncontrolling Interests		903			939
Net Income Attributable to the Redeemable Noncontrolling Interests		349			37
Net Income Attributable to ORIX Corporation Shareholders	¥	81,157		¥	85,169
	Yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Amounts per Share of Common Stock for Net Income Attributable to ORIX Corporation Shareholders:
Basic:	¥	63.41		¥	66.64
Diluted:	¥	63.35		¥	66.58

– 18 –

(3) Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Net Income	¥	239,028		¥	247,809
Other comprehensive income (loss), net of tax:
Net change of unrealized gains (losses) on investment in securities		(1,835	)		1,277
Net change of debt valuation adjustments		303			136
Net change of defined benefit pension plans		5			492
Net change of foreign currency translation adjustments		(5,129	)		(16,585	)
Net change of unrealized gains (losses) on derivative instruments		(64	)		(3,560	)
Total other comprehensive income (loss)		(6,720	)		(18,240	)
Comprehensive Income		232,308			229,569
Comprehensive Income Attributable to the Noncontrolling Interests		2,299			1,584
Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		760			229
Comprehensive Income Attributable to ORIX Corporation Shareholders	¥	229,249		¥	227,756

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Net Income	¥	82,409		¥	86,145
Other comprehensive income (loss), net of tax:
Net change of unrealized gains (losses) on investment in securities		(229	)		(3,627	)
Net change of debt valuation adjustments		384			(68	)
Net change of defined benefit pension plans		206			(294	)
Net change of foreign currency translation adjustments		(19,918	)		21,460
Net change of unrealized gains (losses) on derivative instruments		(754	)		2,168
Total other comprehensive income (loss)		(20,311	)		19,639
Comprehensive Income		62,098			105,784
Comprehensive Income Attributable to the Noncontrolling Interests		496			1,211
Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		173			182
Comprehensive Income Attributable to ORIX Corporation Shareholders	¥	61,429		¥	104,391

– 19 –

(4) Condensed Consolidated Statements of Changes in Equity (Unaudited)

Nine months ended December 31, 2018

	Millions of yen
	ORIX Corporation Shareholders’ Equity
	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total ORIX Corporation Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance at March 31, 2018	¥	220,961	¥	267,291		¥	2,315,283		¥	(45,566	)	¥	(75,545	)	¥	2,682,424		¥	116,450		¥	2,798,874
Cumulative effect of adopting Accounting Standards Update 2014-09							405									405			354			759
Cumulative effect of adopting Accounting Standards Update 2016-01							2,899			(2,899	)					0			0			0
Cumulative effect of adopting Accounting Standards Update 2016-16							3,772									3,772			0			3,772
Balance at April 1, 2018	¥	220,961	¥	267,291		¥	2,322,359		¥	(48,465	)	¥	(75,545	)	¥	2,686,601		¥	116,804		¥	2,803,405
Contribution to subsidiaries																0			3,420			3,420
Transaction with noncontrolling interests				(9,866	)					(40	)					(9,906	)		(48,428	)		(58,334	)
Comprehensive income, net of tax:
Net income							236,207									236,207			2,387			238,594
Other comprehensive income (loss)
Net change of unrealized gains (losses) on investment in securities										(1,835	)					(1,835	)		0			(1,835	)
Net change of debt valuation adjustments										303						303			0			303
Net change of defined benefit pension plans										4						4			1			5
Net change of foreign currency translation adjustments										(5,353	)					(5,353	)		(102	)		(5,455	)
Net change of unrealized gains (losses) on derivative instruments										(77	)					(77	)		13			(64	)
Total other comprehensive income (loss)																(6,958	)		(88	)		(7,046	)
Total comprehensive income																229,249			2,299			231,548
Cash dividends							(88,438	)								(88,438	)		(8,243	)		(96,681	)
Exercise of stock options		150		75												225			0			225
Acquisition of treasury stock													(706	)		(706	)		0			(706	)
Disposal of treasury stock				(233	)								348			115			0			115
Other, net				358												358			0			358
Balance at December 31, 2018	¥	221,111	¥	257,625		¥	2,470,128		¥	(55,463	)	¥	(75,903	)	¥	2,817,498		¥	65,852		¥	2,883,350
Nine months ended December 31, 2019
	Millions of yen
	ORIX Corporation Shareholders’ Equity
	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total ORIX Corporation Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance at March 31, 2019	¥	221,111	¥	257,625		¥	2,555,585		¥	(61,343	)	¥	(75,904	)	¥	2,897,074		¥	56,127		¥	2,953,201
Contribution to subsidiaries																0			15,756			15,756
Transaction with noncontrolling interests				196												196			(43	)		153
Comprehensive income, net of tax:
Net income							244,319									244,319			3,131			247,450
Other comprehensive income (loss)
Net change of unrealized gains (losses) on investment in securities										1,283						1,283			(6	)		1,277
Net change of debt valuation adjustments										136						136			0			136
Net change of defined benefit pension plans										493						493			(1	)		492
Net change of foreign currency translation adjustments										(14,914	)					(14,914	)		(1,541	)		(16,455	)
Net change of unrealized gains (losses) on derivative instruments										(3,561	)					(3,561	)		1			(3,560	)
Total other comprehensive income (loss)																(16,563	)		(1,547	)		(18,110	)
Total comprehensive income																227,756			1,584			229,340
Cash dividends							(103,824	)								(103,824	)		(2,127	)		(105,951	)
Acquisition of treasury stock													(13,285	)		(13,285	)		0			(13,285	)
Disposal of treasury stock				(29	)								43			14			0			14
Other, net				479												479			0			479
Balance at December 31, 2019	¥	221,111	¥	258,271		¥	2,696,080		¥	(77,906	)	¥	(89,146	)	¥	3,008,410		¥	71,297		¥	3,079,707

Note: Changes in the redeemable noncontrolling interests are not included in this table. For further information, see Note 12 “Redeemable Noncontrolling Interests.”

– 20 –

Three months ended December 31, 2018

	Millions of yen
	ORIX Corporation Shareholders’ Equity
	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total ORIX Corporation Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance at September 30, 2018	¥	221,111	¥	267,033		¥	2,427,424		¥	(35,696	)	¥	(75,903	)	¥	2,803,969		¥	125,930		¥	2,929,899
Contribution to subsidiaries																0			336			336
Transaction with noncontrolling interests				(9,574	)					(39	)					(9,613	)		(56,252	)		(65,865	)
Comprehensive income, net of tax:
Net income							81,157									81,157			903			82,060
Other comprehensive income (loss)
Net change of unrealized gains (losses) on investment in securities										(229	)					(229	)		0			(229	)
Net change of debt valuation adjustments										384						384			0			384
Net change of defined benefit pension plans										203						203			3			206
Net change of foreign currency translation adjustments										(19,356	)					(19,356	)		(386	)		(19,742	)
Net change of unrealized gains (losses) on derivative instruments										(730	)					(730	)		(24	)		(754	)
Total other comprehensive income (loss)																(19,728	)		(407	)		(20,135	)
Total comprehensive income																61,429			496			61,925
Cash dividends							(38,454	)								(38,454	)		(4,658	)		(43,112	)
Acquisition of treasury stock													(0	)		(0	)		0			(0	)
Disposal of treasury stock				0									0			0			0			0
Other, net				166			1									167			0			167
Balance at December 31, 2018	¥	221,111	¥	257,625		¥	2,470,128		¥	(55,463	)	¥	(75,903	)	¥	2,817,498		¥	65,852		¥	2,883,350
Three months ended December 31, 2019
	Millions of yen
	ORIX Corporation Shareholders’ Equity
	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total ORIX Corporation Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance at September 30, 2019	¥	221,111	¥	258,178		¥	2,655,773		¥	(97,128	)	¥	(75,861	)	¥	2,962,073		¥	65,643		¥	3,027,716
Contribution to subsidiaries																0			3,944			3,944
Transaction with noncontrolling interests				8												8			1,611			1,619
Comprehensive income, net of tax:
Net income							85,169									85,169			939			86,108
Other comprehensive income
Net change of unrealized gains (losses) on investment in securities										(3,628	)					(3,628	)		1			(3,627	)
Net change of debt valuation adjustments										(68	)					(68	)		0			(68	)
Net change of defined benefit pension plans										(293	)					(293	)		(1	)		(294	)
Net change of foreign currency translation adjustments										21,115						21,115			200			21,315
Net change of unrealized gains (losses) on derivative instruments										2,096						2,096			72			2,168
Total other comprehensive income																19,222			272			19,494
Total comprehensive income																104,391			1,211			105,602
Cash dividends							(44,862	)								(44,862	)		(1,112	)		(45,974	)
Acquisition of treasury stock													(13,285	)		(13,285	)		0			(13,285	)
Disposal of treasury stock																0			0			0
Other, net				85												85			0			85
Balance at December 31, 2019	¥	221,111	¥	258,271		¥	2,696,080		¥	(77,906	)	¥	(89,146	)	¥	3,008,410		¥	71,297		¥	3,079,707

Note: Changes in the redeemable noncontrolling interests are not included in this table.

– 21 –

(5) Condensed Consolidated Statements of Cash Flows (Unaudited)

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Cash Flows from Operating Activities:
Net income	¥	239,028		¥	247,809
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		217,993			223,844
Principal payments received under net investment in leases		0			342,961
Provision for doubtful receivables and probable loan losses		14,075			15,724
Equity in net income of affiliates (excluding interest on loans)		(13,793	)		(52,685	)
Gains on sales of subsidiaries and affiliates and liquidation losses, net		(20,470	)		(58,488	)
Bargain purchase gain		0			(1,022	)
Gains on sales of securities other than trading		(6,685	)		(16,961	)
Gains on sales of operating lease assets		(50,445	)		(37,278	)
Write-downs of long-lived assets		26			554
Write-downs of securities		821			36
Decrease in trading securities		61,607			18,489
Increase in inventories		(24,011	)		(9,546	)
Decrease (Increase) in trade notes, accounts and other receivable		2,486			(676	)
Decrease in trade notes, accounts and other payable		(28,794	)		(41,358	)
Increase (Decrease) in policy liabilities and policy account balances		(21,596	)		52,805
Other, net		11,368			36,481
Net cash provided by operating activities		381,610			720,689
Cash Flows from Investing Activities:
Purchases of lease equipment		(759,080	)		(733,861	)
Principal payments received under direct financing leases		351,947			0
Installment loans made to customers		(1,075,480	)		(1,152,489	)
Principal collected on installment loans		953,742			824,870
Proceeds from sales of operating lease assets		358,586			221,689
Investment in affiliates, net		(287,822	)		(25,467	)
Proceeds from sales of investment in affiliates		44,705			67,865
Purchases of available-for-sale debt securities		(412,247	)		(582,552	)
Proceeds from sales of available-for-sale debt securities		190,698			210,817
Proceeds from redemption of available-for-sale debt securities		59,943			67,905
Purchases of equity securities other than trading		(56,741	)		(29,753	)
Proceeds from sales of equity securities other than trading		68,030			27,279
Purchases of property under facility operations		(51,139	)		(24,915	)
Acquisitions of subsidiaries, net of cash acquired		(116,545	)		(11,390	)
Sales of subsidiaries, net of cash disposed		(39	)		72,710
Other, net		34,181			(20,363	)
Net cash used in investing activities		(697,261	)		(1,087,655	)
Cash Flows from Financing Activities:
Net increase in debt with maturities of three months or less		187,445			60,958
Proceeds from debt with maturities longer than three months		758,286			518,207
Repayment of debt with maturities longer than three months		(677,665	)		(612,954	)
Net increase in deposits due to customers		126,669			241,520
Cash dividends paid to ORIX Corporation shareholders		(88,438	)		(103,824	)
Acquisition of treasury stock		(706	)		(13,285	)
Contribution from noncontrolling interests		14,104			19,355
Purchases of shares of subsidiaries from noncontrolling interests		(69,508	)		(3,506	)
Net increase in call money		5,000			5,000
Other, net		(8,448	)		(2,965	)
Net cash provided by financing activities		246,739			108,506
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash		(1,006	)		(4,511	)
Net decrease in Cash, Cash Equivalents and Restricted Cash		(69,918	)		(262,971	)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		1,405,117			1,283,580
Cash, Cash Equivalents and Restricted Cash at End of Period	¥	1,335,199		¥	1,020,609

Notes:	1.	New Lease Standard has been adopted since April 1, 2019, and the amounts of investment in direct financing leases have been reclassified to net investment in leases. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”
	2.	The following tables provide information about Cash, Cash Equivalents and Restricted Cash which are included in the Company’s consolidated balance sheets as of December 31, 2018 and December 31, 2019, respectively.

	Millions of yen
	December 31, 2018		December 31, 2019
Cash and Cash Equivalents	¥	1,215,907	¥	902,312
Restricted Cash		119,292		118,297
Cash, Cash Equivalents and Restricted Cash	¥	1,335,199	¥	1,020,609

– 22 –

Notes to Consolidated Financial Statements

1. Overview of Accounting Principles Utilized

In preparing the accompanying consolidated financial statements, ORIX Corporation (the “Company”) and its subsidiaries have complied with generally accepted accounting principles in the United States (“U.S. GAAP”), except for the accounting for stock splits.

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, 2019 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) including the consolidated financial statements with the Securities and Exchange Commission.

Significant differences between U.S. GAAP and generally accepted accounting principles in Japan (“Japanese GAAP”) are as follows:

(a) Revenue recognition for revenue from contracts with customers

Under U.S. GAAP, revenues from contracts with customers such as sales of goods and real estate, and services income are recognized to depict the transfer of promised goods or services to customers in the amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services.

Under Japanese GAAP, revenues are generally recognized when cash or monetary assets are received as a consideration by sales of goods or rendering of services in accordance with realization principle.

(b) Initial direct costs

Under U.S. GAAP, initial direct costs of sales-type leases and direct financing leases are mainly being deferred and amortized as a yield adjustment over the life of the related lease by using interest method. Initial direct costs of operating leases are being deferred and amortized as a straight-line basis over the life of the related lease.

Under Japanese GAAP, those initial direct costs are recognized as expenses when they are incurred.

(c) 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.

(d) 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, 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.

– 23 –

(e) Accounting for goodwill and other intangible assets in business combinations

Under U.S. GAAP, goodwill and indefinite-lived intangible assets 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.

(f) Accounting for pension plans

Under U.S. GAAP, the net actuarial gain (loss) is amortized using the corridor approach.

Under Japanese GAAP, the net actuarial gain (loss) is fully amortized over a certain term within the average remaining service period of employees.

(g) Partial 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.

(h) Consolidated statements of cash flows

Classification in the statements of cash flows under U.S. GAAP differs from that under Japanese GAAP. As significant differences, purchase of lease equipment, 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.

Under U.S. GAAP, in addition, restricted cash is required to be added to the balance of cash and cash equivalents.

(i) Transfer of financial assets

Under U.S. GAAP, an entity is required to perform analysis to determine whether or not to consolidate trusts or special-purpose companies, collectively 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.

In addition, if the transferor transfers a portion of financial assets, the transaction is not accounted for as a sale but accounted for as a secured borrowing unless each interest held by the transferor and transferee meets the definition of a participating interest and the transfer of a portion of financial assets meets criteria for derecognition of transferred financial assets.

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.

In addition, if the transferor transfers a portion of financial assets, the enterprise accounts for the transaction as a sale and recognizes a gain or loss on the sale into earnings when the transfer of a portion of financial assets meets criteria for derecognition of transferred financial assets.

– 24 –

(j) Investment in securities

Under U.S. GAAP, unrealized gains and losses from all of equity securities are generally recognized in income.

Under Japanese GAAP, such unrealized gains and losses from equity securities other than trading are to be recognized in other comprehensive income (loss), net of applicable income taxes.

(k) 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. The portion of the total change in the fair value of the financial liability that results from a change in the instrument-specific credit risk is to be recognized in other comprehensive income (loss), net of applicable income taxes.

Under Japanese GAAP, there is no accounting standard for fair value option.

(l) Lessee’s lease

Under U.S. GAAP, right-of-use (hereinafter, “ROU”) assets and lease liabilities from the lessee’s lease transaction are generally recognized on the balance sheet.

Under Japanese GAAP, operating leases from the lessee’s lease transaction are off-balance sheet.

– 25 –

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 include VIEs 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 finance 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 finance 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 indefinite-lived intangible assets.

(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. Monetary assets and liabilities in foreign currencies are recorded in the entity’s functional currency based on the prevailing exchange rates at the end of each fiscal year.

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), net of applicable income taxes, arise from the translation of foreign currency financial statements into Japanese yen.

(d) Revenue recognition

The Company and its subsidiaries recognize revenues from only contracts with customers, such as sales of goods and real estate, and services income, based on the following five steps;

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

– 26 –

In accordance with these steps, revenues are recognized to depict the transfer of promised goods or services to customers in the amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenues are recognized net of discount, incentives and estimated sales returns. In case that the Company and its subsidiaries receive payment from customers before satisfying performance obligations, the amounts are recognized as contract liabilities. In transactions that involve third parties, if the Company and its subsidiaries control the goods or services before they are transferred to the customers, revenue is recognized on gross amount as the principal.

Excluding the aforementioned policy, the policies as specifically described hereinafter are applied for each of revenue items.

Finance Revenues—Finance revenues mainly include revenues from finance leases, installment loans, and financial guarantees.

(1) Revenues from finance leases

Lessor leases consist of leases for various equipment types, including office equipment, industrial machinery, transportation equipment and real estates. Net investment in leases includes sales-type leases and direct financing leases which are full-payout leases. Leases not qualifying as sales-type leases or direct financing leases are accounted for as operating leases. Interest income on net investment in leases is recognized over the life of each respective lease using the interest method. In providing leasing services, the Company and its subsidiaries execute supplemental businesses, such as paying insurance and handling taxes on leased assets on behalf of lessees. The estimated unguaranteed residual value represents estimated proceeds from the disposition of equipment at the time the lease is terminated. Estimates of residual values are determined 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. Initial direct costs of sales-type leases and direct financing leases 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 of sales-type leases and direct financing leases is reflected as a component of net investment in 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) Revenues from financial guarantees

At the inception of a guarantee, fair value for the guarantee is recognized as a liability in the consolidated balance sheets. The Company and its subsidiaries recognize revenue mainly over the term of guarantee by a systematic and rational amortization method as the Company and the subsidiaries are released from the risk of the obligation.

– 27 –

(4) Non-accrual policy

In common with all classes, past-due financing receivables are receivables for which principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms. The Company and its subsidiaries suspend accruing revenues on past-due installment loans and finance leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Accrued but uncollected interest is reclassified to net investment in leases or installment loans in the accompanying consolidated balance sheets and becomes subject to the allowance for doubtful receivables and probable loan losses process. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return non-accrual loans and lease receivables to accrual status when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtors’ creditworthiness, such as the debtors’ business characteristics and financial conditions as well as relevant economic conditions and trends.

Gains on investment securities and dividends—Gains on investment securities are recorded on a trade date basis. Dividends are recorded when right to receive dividends is established.

Operating leases—Revenues from operating leases are recognized on a straight-line basis over the contract terms. Investment in operating leases is recorded at cost less accumulated depreciation, which was ¥634,478 million and ¥659,318 million as of March 31, 2019 and December 31, 2019, respectively. Operating lease assets are depreciated over their estimated useful lives mainly on a straight-line basis. Depreciation expenses are included in costs of operating leases. Gains or losses arising from dispositions of operating lease assets are included in operating lease revenues.

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. Initial direct costs of operating leases are being deferred and amortized as a straight-line basis over the life of the related lease. The unamortized balance of initial direct costs is reflected as investment in operating leases.

(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 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 investment 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.

– 28 –

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 are 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 the 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 agent commissions, except for recurring policy maintenance costs and certain variable costs and expenses for underwriting policies.

(f) Allowance for doubtful receivables on finance leases and probable loan losses

The allowance for doubtful receivables on finance 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 finance 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 experience, current delinquencies and delinquency trends, future cash flows expected to be received from the finance leases and loans and value of underlying collateral and guarantees.

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-impaired loans, including loans that are not individually evaluated for impairment, and finance leases, the Company and its subsidiaries evaluate prior charge-off experience segmented by the debtors’ industries and the purpose of the loans, and then develop the allowance for doubtful receivables on finance leases and probable loan losses considering the prior charge-off experience and current economic conditions.

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, mega solar 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.

– 29 –

(h) Investment in securities

Equity securities are generally reported at fair value with unrealized gains and losses included in income. Equity securities without readily determinable fair values are recorded at its cost minus impairment, if any, plus or minus changes resulting from observable price changes under the election of the measurement alternative, except for investments which are valued at net asset value per share.

Equity securities elected to apply the measurement alternative are written down to its fair value with losses included in income if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value.

In addition, investments included in equity securities that are accounted for under the equity method are recorded at fair value with unrealized gains and losses included in income if certain subsidiaries elect the fair value option.

Trading debt securities are reported at fair value with unrealized gains and losses included in income.

Available-for-sale debt securities are reported at fair value, and unrealized gains or losses are recorded in accumulated other comprehensive income (loss), net of applicable income taxes, except for investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option.

Held-to-maturity debt securities are recorded at amortized cost.

For debt securities other than trading, 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 security 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 security into the credit loss component and the non-credit loss component. The credit loss component is recognized in earnings, and the non-credit loss component is recognized in other comprehensive income (loss), net of applicable 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 income before income taxes. The estimated effective tax rate is determined by dividing the estimated provision for income taxes for the full fiscal year by the estimated income before income taxes for the full fiscal year.

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 for tax loss 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. The Company and its subsidiaries release to earnings stranded income tax effects in accumulated other comprehensive income (loss) resulting from changes in tax laws or rates or changes in judgment about realization of a valuation allowance on a specific identification basis when the individual items are completely sold or terminated. 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.

– 30 –

The effective income tax rates for the nine months ended December 31, 2018 and 2019 were 19.0% and 29.3%, respectively. These rates are (11.0)% and 29.3% for the three months ended December 31, 2018 and 2019, respectively. For the nine and three months ended December 31, 2018 and 2019, 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 31.5%. The effective income tax rate is different from the statutory tax rate primarily because of certain nondeductible expenses for tax purposes, non-taxable income for tax purposes, changes in valuation allowance, the effect of lower tax rates on certain subsidiaries and the effect of investor taxes on earnings of subsidiaries.

On October 26, 2018, the Company decided to acquire common shares of its domestic subsidiary, DAIKYO through a tender offer (hereinafter, “the Tender Offer”), and with the establishment of the Tender Offer, the Company decided to change the method of collecting undistributed earnings of DAIKYO from collection through a taxable transaction to collection through a tax free transaction. On December 10, 2018, the Tender Offer was concluded. Along with the establishment of the event, the Company completely reversed the deferred tax liabilities previously recorded for undistributed earnings of DAIKYO. As a result of this reversal of deferred tax liabilities, income taxes decreased by ¥27,376 million for the nine and three months ended December 31, 2018.

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 SPEs that issue asset-backed beneficial interests and securities to the investors.

SPEs used in securitization transactions are consolidated if the Company and its subsidiaries are the primary beneficiary of the SPEs, and the transfers of the financial assets to those consolidated SPEs are not accounted for as sales. Assets held by 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.

The Company and certain subsidiaries originate and sell loans into the secondary market, while retaining the obligation to service those loans. In addition, a certain subsidiary 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 changes in the fair value of hedged assets or liabilities through the consolidated statements of income, or recorded in other comprehensive income (loss), net of applicable income taxes.

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.

– 31 –

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), net of applicable income taxes, 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), net of applicable income taxes, depending on whether the hedging activity 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 are recorded in the foreign currency translation adjustments account within other comprehensive income (loss), net of applicable income taxes.

Starting from this fiscal year, the Company and its subsidiaries select either the amortization approach or the fair value approach, depending on the type of hedging activity, for the initial value of the component excluded from the assessment of effectiveness, and recognize it through the consolidated statements of income. When the amortization approach is adopted, the change in fair value is recognized in earnings using a systematic and rational method over the life of the hedging instrument and then any difference between the change in fair value and the amount recognized in earnings is recognized in other comprehensive income (loss), net of applicable income taxes. When the fair value approach is adopted, the change in the fair value is immediately recognized through the consolidated statements of income. In the past fiscal year, the change in fair value of the component excluded from the assessment of effectiveness and the ineffective portion of qualified hedges were immediately recognized through the consolidated statements of income.

For all hedging relationships that are designated and qualified for hedge accounting, at inception the Company and its subsidiaries formally document the details of the hedging relationship and the hedging activity. The Company and its subsidiaries 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 pension plans covering substantially all of their employees. The costs of pension plans are accrued based on amounts determined using actuarial methods, with assumptions of discount rate, rate of increase in compensation level, expected long-term rate of return on plan assets and others.

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

In principle, the Company and its subsidiaries measure stock-based compensation expense as consideration for services provided by employees based on the fair value on 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 capital to common stock as required by the Japanese Commercial Code (the “Code”) before amendment. However, no such reclassification was made for stock splits when common stock already included a portion of the proceeds from shares issued at a price in excess of par value. This method of accounting was in conformity with accounting principles generally accepted in Japan.

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 capital amounts equal to the fair market value of the shares issued. Common stock is increased by the par value of the shares and additional paid-in capital is increased by the excess of the market value over par value of the shares issued.

Had such stock splits made prior to October 1, 2001 been accounted for in this manner, additional paid-in capital as of December 31, 2019 would have increased by approximately ¥24,674 million, with a corresponding decrease in retained earnings. Total ORIX Corporation shareholders’ equity would remain unchanged. Stock splits on May 19, 2000 were excluded from the above amounts because the stock splits were not considered to be stock dividends under U.S. GAAP.

– 32 –

(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 loans, deposits held on behalf of third parties in the aircraft-related business and others.

(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 fair value determined on an individual basis, except loans held for sale for which the fair value option was elected. A certain subsidiary elected the fair value option on certain loans held for sale. 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, 2019 and December 31, 2019 were ¥54,311 million and ¥80,234 million, respectively. There were ¥38,671 million and ¥43,238 million of loans held for sale as of March 31, 2019 and December 31, 2019, 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 hotels and training facilities) and environmental assets (including mega solar and thermal power stations), 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 ¥102,185 million and ¥99,748 million as of March 31, 2019 and December 31, 2019, 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 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 merchandise 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, 2019 and December 31, 2019, residential condominiums under development were ¥55,860 million and ¥74,843 million, respectively, and completed residential condominiums and merchandise for sale were ¥59,835 million and ¥57,115 million, respectively.

The Company and its subsidiaries recorded ¥269 million and ¥277 million of write-downs principally on completed residential condominiums and merchandise for sale for the nine months ended December 31, 2018 and 2019, respectively, primarily resulting from a decrease in expected sales price. The amounts of such write-downs for the three months ended December 31, 2018 and 2019 were ¥159 million and ¥123 million, respectively. These write-downs were recorded in costs of goods and real estate sold and included in Real Estate segment, Investment and Operation segment and Corporate Financial Services segment.

– 33 –

(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 ¥54,499 million and ¥63,823 million as of March 31, 2019 and December 31, 2019, respectively.

(v) Right-of-use assets

The Company and its subsidiaries record the ROU assets recognized from the lessee’s lease transaction as investment in operating leases, property under facility operations and office facilities. Lease liabilities are included in other liabilities.

ROU assets are stated at cost less accumulated amortization. ROU assets of finance leases are amortized mainly on a straight-line basis over the lease term. ROU assets of operating leases are amortized over the lease term by the fixed term operating cost minus the interest cost. Amortization of ROU assets of finance leases and operating leases expenses are included in costs of operating leases, services expense and selling, general and administrative expenses.

(w) Other assets

Other assets consist primarily of goodwill and other intangible assets in acquisitions, 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 construction of real estate under operating leases and property under facility operations, prepaid benefit cost, servicing assets, derivative assets, contract assets related to real estate contract works and deferred tax assets.

(x) 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 indefinite-lived intangible assets 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 goodwill impairment test. The Company and its subsidiaries perform the qualitative assessment for some goodwill but bypass the qualitative assessment and proceed directly to the first step of the two-step impairment test for other goodwill. For the goodwill for which the qualitative assessment is performed, if, after assessing the totality of events or circumstances, the Company and/or subsidiaries determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company and/or subsidiaries do not perform the two-step impairment test. However, if the Company and/or subsidiaries conclude otherwise or determine to bypass the qualitative assessment, the Company and/or subsidiaries proceed to perform the first step of the two-step impairment test. The first step of goodwill impairment test, used to identify potential impairment, calculates the fair value of the reporting unit and compares the fair value with the carrying amount of the reporting unit. If the fair value of the reporting unit falls below its carrying amount, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares implied fair value of goodwill with its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The Company and its subsidiaries test the goodwill either at the operating segment level or one level below the operating segments.

– 34 –

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 intangible 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 intangible 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 ¥430,679 million and ¥426,111 million as of March 31, 2019 and December 31, 2019, respectively.

The amount of other intangible assets was ¥427,098 million and ¥398,701 million as of March 31, 2019 and December 31, 2019, respectively.

(y) 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.

(z) Other Liabilities

Other liabilities include primarily lease liabilities recognized from the lessee’s lease transaction, accrued expenses related to interest and bonus, accrued benefit liability, advances received from lessees in relation to lease contracts, deposits received from real estate transaction, contract liabilities mainly related to automobile maintenance services and software services, and derivative liabilities.

(aa) Capitalization of interest costs

The Company and its subsidiaries capitalized interest costs primarily related to assets under construction such as specific environmental assets, long-term real estate development and ship projects.

(ab) Advertising

The costs of advertising are expensed as incurred.

(ac) 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.

– 35 –

(ad) 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.

(ae) 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.

(af) 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 the gain or loss in the consolidated statements of income in the year in which the change in ownership interest occurs.

(ag) New accounting pronouncements

In February 2016, Accounting Standards Update 2016-02 (ASC 842 (“Leases”)) was issued, and related amendments were issued thereafter. These updates require a lessee to recognize most leases on the balance sheet. Lessor accounting remains substantially similar to current U.S. GAAP but with some changes. These updates require an entity to disclose more information about leases than under the current disclosure requirements. The Company and its subsidiaries adopted these updates, including Accounting Standards Update 2019-01, on April 1, 2019 and used the beginning of the fiscal year of adoption as the date of initial adoption. Consequently, financial information of comparative periods has not been updated and the disclosures required under the New Lease Standard are not provided for periods before April 1, 2019.

The New Lease Standard provides a number of optional practical expedients in transition. The Company and its subsidiaries have elected the “package of practical expedients”, which permits the Company and its subsidiaries to not reassess under the New Lease Standard the prior conclusions about lease identification, lease classification and initial direct costs. The Company and its subsidiaries have elected other New Lease Standard’s available transitional practical expedients. The New Lease Standard also provides practical expedients for an entity’s ongoing accounting. The Company and its subsidiaries have elected the short-term lease recognition exemption mainly for vehicle and office equipment leases. Consequently, for those leases that meet the requirements, the Company and its subsidiaries have not recognized ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company and its subsidiaries also have elected the practical expedient to not separate lease and non-lease components for part of leases as lessors. The Company and its subsidiaries have expanded their disclosures regarding lessee and lessor.

The impact of the adoption of these updates has resulted in a gross up of ROU assets and corresponding lease liabilities principally for operating leases, such as land leases and office and equipment leases where it is the lessee. The effect of the adoption of these updates on the Company and its subsidiaries’ financial position at the adoption date was increases of ROU assets of ¥ 134,345 million in investment in operating leases, ¥ 77,989 million in property under facility operations, ¥ 75,805 million in office facilities and lease liabilities of ¥ 284,867 million in other liabilities in the consolidated balance sheet as of April 1, 2019. ROU assets in investment in operating leases, property under facility operations and office facilities were ¥ 128,951 million, ¥ 69,719 million and ¥ 75,816 million, respectively, and lease liabilities in other liabilities were ¥ 271,093 million as of December 31, 2019. The adoption had no material effect on the Company and its subsidiaries’ results of operations for the nine and three months ended December 31, 2019. In the consolidated statements of cash flows, cash receipts from lessor’s finance leases have been reclassified from principal payments received under direct financing leases of cash flows from investing activities to principal payments received under net investment in leases of cash flows from operating activities.

– 36 –

In June 2016, Accounting Standards Update 2016-13 (“Measurement of Credit Losses on Financial Instruments”—ASC 326 (“Financial Instruments—Credit Losses”)) was issued, and related amendments were issued thereafter. These updates significantly change how companies measure and recognize credit impairment for many financial assets. The new current expected credit loss model requires companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets that are within the scope of these updates. These updates also make targeted amendments to the current impairment model for available-for-sale debt securities. These updates are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in these updates should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Early application is permitted for fiscal year beginning after December 15, 2018, including interim periods within the fiscal year. The Company and its subsidiaries will adopt these updates on April 1, 2020. The Company and its subsidiaries have substantially completed the development of the current expected credit loss models and continue to validate and refine the models, and establish the policies, systems and internal controls. Based on the Company and its subsidiaries’ assessment and best estimates to date, the allowance for credit losses for financial assets such as installment loans, net investment in leases and off-balance-sheet credit exposures such as financial guarantees and loan commitments are expected to increase due to the changes of the measurement of the allowance for credit losses. The Company and its subsidiaries continue to evaluate the effect that the adoption of these updates will have on the Company and its subsidiaries’ results of operations or financial position. The Company and its subsidiaries will expand their disclosures that are required by these updates, primarily regarding credit quality information and estimates of the allowance for credit losses.

In January 2017, Accounting Standards Update 2017-04 (“Simplifying the Test for Goodwill Impairment”—ASC 350 (“Intangible—Goodwill and Other”)) was issued. This update eliminates Step 2 from the current goodwill impairment test. Instead, goodwill impairments would be measured by the amount by which the carrying amount exceeds the reporting unit’s fair value. This update also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it is more likely than not that the goodwill is impaired, to perform Step 2 of the goodwill impairment test. This update is effective for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates on or after January 1, 2017. The Company and its subsidiaries will adopt this update on April 1, 2020. Generally, the effect of adopting this update on the Company and its subsidiaries’ results of operation or financial position will depend on the outcomes of future goodwill impairment tests.

In August 2017, Accounting Standards Update 2017-12 (“Targeted Improvements to Accounting for Hedging Activities”—ASC 815 (“Derivatives and Hedging”)) was issued, and related amendments were issued thereafter. These updates change the recognition and presentation requirements of hedge accounting including eliminating the requirements to separately measure and report hedge ineffectiveness and presenting the entire change in the fair value of the hedging instrument that affects earnings in the same income statement line as the hedged item. The Company and its subsidiaries adopted these updates on April 1, 2019. The adoption of these updates had no material effect on the Company and its subsidiaries’ results of operations or financial position.

In August 2018, Accounting Standards Update 2018-12 (“Targeted Improvements to the Accounting for Long-Duration Contracts”—ASC 944 (“Financial Services—Insurance”)) was issued, and related amendments which defer the effective date by one year were issued thereafter. These updates change the recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. These updates require an insurance entity to review and, if there is a change, update cash flow assumptions at least annually and to update discount rate used for liability for future policy benefits at each reporting date for nonparticipating traditional long-duration and limited-payment contracts. The effect of updating the discount rate is recognized in other comprehensive income (loss). These updates also require market risk benefits to be measured at fair value, and simplify amortization of deferred acquisition costs. Furthermore, these updates require additional disclosures for long-duration contracts. These updates are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early application is permitted. For the liability for future policy benefits and deferred acquisition costs, these updates are applied to contracts in force as of beginning of the earliest period presented (hereinafter, “the transition date” of these updates) on a modified retrospective basis, and an insurance entity may elect to apply retrospectively. For the market risk benefits, these updates are applied retrospectively at the transition date, and the difference between fair value and carrying value requires an adjustment to retained earnings at the transition date. The cumulative effect of changes in the instrument-specific credit risk between contract inception date and the transition date should be recognized in accumulated other comprehensive income at the transition date. The Company and its subsidiaries will adopt these updates on April 1, 2022. The Company and its subsidiaries are currently evaluating the effect that the adoption of these updates will have on the Company and its subsidiaries’ results of operations or financial position, as well as changes in disclosures required by these updates.

– 37 –

In August 2018, Accounting Standards Update 2018-13 (“Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”—ASC 820 (“Fair Value Measurement”)) was issued. This update modifies and adds the disclosure requirements for Fair Value Measurements. This update also removes disclosure requirements of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted. An entity is also permitted to early adopt any removed or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. Removals and modifications of disclosure requirements should be mainly applied retrospectively to all periods presented upon their effective date, while the additional disclosure requirements should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The Company and its subsidiaries early adopted the removals of disclosure requirements from the three months ended September 30, 2018. The Company and its subsidiaries will adopt the modifications and additions of disclosure requirements from fiscal 2021. Since this update relates to disclosure requirements, the adoption will not have an effect on the Company and its subsidiaries’ results of operations or financial position.

In August 2018, Accounting Standards Update 2018-14 (“Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans”—ASC 715-20 (“Compensation—Retirement Benefits—Defined Benefit Plans—General”)) was issued. This update adds and clarifies the disclosure requirements for Pension Plans, and removes certain disclosure requirements such as the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. This update is effective for fiscal years ending after December 15, 2020. The amendments in this update should be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company and its subsidiaries will adopt this update from fiscal 2021. Since this update relates to disclosure requirements, the adoption will not have an effect on the Company and its subsidiaries’ results of operations or financial position.

In December 2019, Accounting Standards Update 2019-12 (“Simplifying the Accounting for Income Taxes”—ASC 740 (“Income Taxes”)) was issued. This update removes the exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, the exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and other exceptions. This update also simplifies the certain accounting for the income taxes. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 and early adoption is permitted. The income tax simplifications related to changes in ownership of foreign equity method investments and foreign subsidiaries shall be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The other amendments in this update shall be applied on a retrospective basis to all periods presented, on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, or on a prospective basis. The Company and its subsidiaries will adopt this update on April 1, 2021. The Company and its subsidiaries are currently evaluating the effect that the adoption of this update will have on the Company and its subsidiaries’ results of operations or financial position, as well as changes in disclosures required by this update.

– 38 –

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 debt securities, available-for-sale debt securities, certain equity securities, derivatives, certain reinsurance recoverables, and variable annuity and variable life insurance contracts at fair value on a recurring basis.

– 39 –

The following tables present recorded amounts of major financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2019:

March 31, 2019

	Millions of yen
	Total Carrying Value in Consolidated Balance Sheets			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1	¥	38,671		¥	0	¥	38,671	¥	0
Trading debt securities		1,564			0		1,564		0
Available-for-sale debt securities:		1,264,244			24,831		1,138,966		100,447
Japanese and foreign government bond securities*2		430,851			3,227		427,624		0
Japanese prefectural and foreign municipal bond securities		193,305			0		190,417		2,888
Corporate debt securities*3		487,997			21,604		459,235		7,158
CMBS and RMBS in the Americas		61,479			0		61,479		0
Other asset-backed securities and debt securities		90,612			0		211		90,401
Equity securities*4*5		425,593			68,631		295,769		61,193
Derivative assets:		15,495			299		9,924		5,272
Interest rate swap agreements		138			0		138		0
Options held/written and other		11,140			0		5,868		5,272
Futures, foreign exchange contracts		3,007			299		2,708		0
Foreign currency swap agreements		1,203			0		1,203		0
Credit derivatives written		7			0		7		0
Netting*6		(1,497	)		0		0		0
Net derivative assets		13,998			0		0		0
Other assets:		12,449			0		0		12,449
Reinsurance recoverables*7		12,449			0		0		12,449
Total	¥	1,758,016		¥	93,761	¥	1,484,894	¥	179,361
Liabilities:
Derivative liabilities:	¥	25,958		¥	522	¥	25,436	¥	0
Interest rate swap agreements		17,439			0		17,439		0
Options held/written and other		2,809			0		2,809		0
Futures, foreign exchange contracts		5,336			522		4,814		0
Foreign currency swap agreements		364			0		364		0
Credit derivatives held		10			0		10		0
Netting*6		(1,497	)		0		0		0
Net derivative Liabilities		24,461			0		0		0
Policy Liabilities and Policy Account Balances:		360,198			0		0		360,198
Variable annuity and variable life insurance contracts*8		360,198			0		0		360,198
Total	¥	386,156		¥	522	¥	25,436	¥	360,198

– 40 –

December 31, 2019

	Millions of yen
	Total Carrying Value in Consolidated Balance Sheets			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1	¥	43,238		¥	0	¥	43,238	¥	0
Trading debt securities		1,371			0		1,371		0
Available-for-sale debt securities:		1,576,349			22,381		1,453,002		100,966
Japanese and foreign government bond securities*2		591,235			3,585		587,650		0
Japanese prefectural and foreign municipal bond securities		238,288			0		235,437		2,851
Corporate debt securities*3		594,755			18,796		571,743		4,216
CMBS and RMBS in the Americas		57,962			0		57,962		0
Other asset-backed securities and debt securities		94,109			0		210		93,899
Equity securities*4*5		417,433			73,334		277,917		66,182
Derivative assets:		15,683			29		5,210		10,444
Interest rate swap agreements		167			0		167		0
Options held/written and other		13,692			0		3,248		10,444
Futures, foreign exchange contracts		403			29		374		0
Foreign currency swap agreements		1,421			0		1,421		0
Netting*6		(514	)		0		0		0
Net derivative assets		15,169			0		0		0
Other assets:		9,219			0		0		9,219
Reinsurance recoverables*7		9,219			0		0		9,219
Total	¥	2,063,293		¥	95,744	¥	1,780,738	¥	186,811
Liabilities:
Derivative liabilities:	¥	51,188		¥	157	¥	51,004	¥	27
Interest rate swap agreements		24,768			0		24,768		0
Options held/written and other		10,960			0		10,933		27
Futures, foreign exchange contracts		14,495			157		14,338		0
Foreign currency swap agreements		965			0		965		0
Netting*6		(514	)		0		0		0
Net derivative Liabilities		50,674			0		0		0
Policy Liabilities and Policy Account Balances:		333,017			0		0		333,017
Variable annuity and variable life insurance contracts*8		333,017			0		0		333,017
Total	¥	384,205		¥	157	¥	51,004	¥	333,044

– 41 –

*1 A certain subsidiary elected the fair value option on certain loans held for sale. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥495 million and ¥971 million from the change in the fair value of the loans for the nine months ended December 31, 2018 and 2019, respectively. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥294 million and ¥622 million from the change in the fair value of the loans for the three months ended December 31, 2018 and 2019, respectively. No gains or losses were recognized in earnings during the nine months ended December 31, 2018 and 2019 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, 2019, were ¥37,865 million and ¥38,671 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥806 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of December 31, 2019, were ¥41,473 million and ¥43,238 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥1,765 million. As of March 31, 2019 and December 31, 2019, there were no loans that are 90 days or more past due or, in non-accrual status.

*2 A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥21 million and ¥7 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥12 million and ¥7 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥420 million and ¥790 million as of March 31, 2019 and December 31, 2019, respectively.

*3 A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were a loss of ¥136 million and a gain of ¥1,048 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were a loss of ¥393 million and a gain of ¥231 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥21,136 million and ¥18,796 million as of March 31, 2019 and December 31, 2019, respectively.

*4 Certain subsidiaries elected the fair value option for certain investments in investment funds included in equity securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥906 million and ¥533 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥265 million and ¥121 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥5,811 million and ¥5,997 million as of March 31, 2019 and December 31, 2019, respectively.

*5 The amounts of investment funds measured at net asset value per share which are not included in the above tables were ¥12,100 million and ¥11,878 million as of March 31, 2019 and December 31, 2019, 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 ¥12,449 million and ¥9,219 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “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 ¥360,198 million and ¥333,017 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “Life Insurance Operations.”

– 42 –

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 nine months ended December 31, 2018 and 2019:

Nine months ended December 31, 2018

	Millions of yen
	Balance at April 1, 2018		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2018		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2018 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	120,917	¥	2,032		¥	288		¥	2,320		¥	36,231	¥	(22,186	)	¥	(24,476	)	¥	(20,101	)	¥	92,705	¥	304
Japanese prefectural and foreign municipal bond securities		0		0			(7	)		(7	)		0		0			0			3,305			3,298		0
Corporate debt securities		3,037		0			5			5			0		0			(685	)		0			2,357		0
CMBS and RMBS in the Americas		36,010		1,034			546			1,580			1,304		(6,711	)		(8,777	)		(23,406	)		0		0
Other asset-backed securities and debt securities		81,870		998			(256	)		742			34,927		(15,475	)		(15,014	)		0			87,050		304
Equity securities		37,879		1,957			523			2,480			34,613		(18,352	)		0			0			56,620		1,685
Investment funds		37,879		1,957			523			2,480			34,613		(18,352	)		0			0			56,620		1,685
Derivative assets and liabilities (net)		2,291		(1,377	)		0			(1,377	)		1,673		0			(1,198	)		0			1,389		(1,377	)
Options held/written and other		2,291		(1,377	)		0			(1,377	)		1,673		0			(1,198	)		0			1,389		(1,377	)
Other asset		15,008		480			0			480			2,800		0			(486	)		0			17,802		480
Reinsurance recoverables *5		15,008		480			0			480			2,800		0			(486	)		0			17,802		480
Policy Liabilities and Policy Account Balances		444,010		18,993			422			19,415			0		0			(62,522	)		0			362,073		18,993
Variable annuity and variable life insurance contracts *6		444,010		18,993			422			19,415			0		0			(62,522	)		0			362,073		18,993

– 43 –

Nine months ended December 31, 2019

	Millions of yen
	Balance at April 1, 2019		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2019		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2019 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	100,447	¥	1,339		¥	(1,023	)	¥	316		¥	33,606	¥	(3,425	)	¥	(26,987	)	¥	(2,991	)	¥	100,966	¥	213
Japanese prefectural and foreign municipal bond securities		2,888		0			(37	)		(37	)		0		0			0			0			2,851		0
Corporate debt securities		7,158		0			(9	)		(9	)		900		0			(842	)		(2,991	)		4,216		0
Other asset-backed securities and debt securities		90,401		1,339			(977	)		362			32,706		(3,425	)		(26,145	)		0			93,899		213
Equity securities		61,193		5,594			(131	)		5,463			10,075		(5,760	)		(4,789	)		0			66,182		5,532
Investment funds		61,193		5,594			(131	)		5,463			10,075		(5,760	)		(4,789	)		0			66,182		5,532
Derivative assets and liabilities (net)		5,272		5,238			(93	)		5,145			0		0			0			0			10,417		5,238
Options held/written and other		5,272		5,238			(93	)		5,145			0		0			0			0			10,417		5,238
Other asset		12,449		(5,355	)		0			(5,355	)		2,303		0			(178	)		0			9,219		(5,355	)
Reinsurance recoverables *5		12,449		(5,355	)		0			(5,355	)		2,303		0			(178	)		0			9,219		(5,355	)
Policy Liabilities and Policy Account Balances		360,198		(12,426	)		189			(12,237	)		0		0			(39,418	)		0			333,017		(12,426	)
Variable annuity and variable life insurance contracts *6		360,198		(12,426	)		189			(12,237	)		0		0			(39,418	)		0			333,017		(12,426	)

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

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

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

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

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

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

In the nine months ended December 31, 2018, Japanese prefectural and foreign municipal bond securities totaling ¥3,305 million were transferred from Level 2 to Level 3, since the valuation techniques to measure fair value of a certain foreign municipal bond security has been changed to discounted cash flows methodologies using unobservable inputs. The change of the valuation techniques is due to judgement that the Company and its subsidiaries cannot rely on price quotations from independent pricing service vendors and brokers considering deterioration of estimated cash flows from the security. In addition, CMBS and RMBS in Americas totaling ¥23,406 million were transferred from Level 3 to Level 2, since the inputs such as trading price and/or bid price became observable due to the market returning to active.

In the nine months ended December 31, 2019, corporate debt securities totaling ¥2,991 million were transferred from Level 3 to Level 2, since the inputs became observable.

– 44 –

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 three months ended December 31, 2018 and 2019:

Three months ended December 31, 2018

	Millions of yen
	Balance at September 30, 2018		Gains or losses (realized/unrealized)								Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2018		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2018 *1
			Included in earnings *1		Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	122,548	¥	882	¥	(4,450	)	¥	(3,568	)	¥	3,259	¥	(6,188	)	¥	(3,245	)	¥	(20,101	)	¥	92,705	¥	214
Japanese prefectural and foreign municipal bond securities		0		0		(7	)		(7	)		0		0			0			3,305			3,298		0
Corporate debt securities		2,547		0		5			5			0		0			(195	)		0			2,357		0
CMBS and RMBS in the Americas		23,996		0		(590	)		(590	)		0		0			0			(23,406	)		0		0
Other asset-backed securities and debt securities		96,005		882		(3,858	)		(2,976	)		3,259		(6,188	)		(3,050	)		0			87,050		214
Equity securities		44,559		241		(1,056	)		(815	)		17,535		(4,659	)		0			0			56,620		140
Investment funds		44,559		241		(1,056	)		(815	)		17,535		(4,659	)		0			0			56,620		140
Derivative assets and liabilities (net)		743		1,021		0			1,021			0		0			(375	)		0			1,389		1,021
Options held/written and other		743		1,021		0			1,021			0		0			(375	)		0			1,389		1,021
Other asset		11,121		6,073		0			6,073			847		0			(239	)		0			17,802		6,073
Reinsurance recoverables *5		11,121		6,073		0			6,073			847		0			(239	)		0			17,802		6,073
Policy Liabilities and Policy Account Balances		405,705		28,247		534			28,781			0		0			(14,851	)		0			362,073		28,247
Variable annuity and variable life insurance contracts *6		405,705		28,247		534			28,781			0		0			(14,851	)		0			362,073		28,247

– 45 –

Three months ended December 31, 2019

	Millions of yen
	Balance at September 30, 2019		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)		Balance at December 31, 2019		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2019 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	87,265	¥	244		¥	1,122		¥	1,366		¥	17,532	¥	(3,293	)	¥	(1,904	)	¥	0	¥	100,966	¥	141
Japanese prefectural and foreign municipal bond securities		2,808		0			43			43			0		0			0			0		2,851		0
Corporate debt securities		3,638		0			(15	)		(15	)		900		0			(307	)		0		4,216		0
Other asset-backed securities and debt securities		80,819		244			1,094			1,338			16,632		(3,293	)		(1,597	)		0		93,899		141
Equity securities		65,854		929			1,283			2,212			4,639		(3,368	)		(3,155	)		0		66,182		1,137
Investment funds		65,854		929			1,283			2,212			4,639		(3,368	)		(3,155	)		0		66,182		1,137
Derivative assets and liabilities (net)		16,275		(6,123	)		265			(5,858	)		0		0			0			0		10,417		(6,123	)
Options held/written and other		16,275		(6,123	)		265			(5,858	)		0		0			0			0		10,417		(6,123	)
Other asset		11,382		(2,874	)		0			(2,874	)		750		0			(39	)		0		9,219		(2,874	)
Reinsurance recoverables *5		11,382		(2,874	)		0			(2,874	)		750		0			(39	)		0		9,219		(2,874	)
Policy Liabilities and Policy Account Balances		336,840		(10,387	)		(94	)		(10,481	)		0		0			(14,304	)		0		333,017		(10,387	)
Variable annuity and variable life insurance contracts *6		336,840		(10,387	)		(94	)		(10,481	)		0		0			(14,304	)		0		333,017		(10,387	)

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

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

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

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

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

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

In the three months ended December 31, 2018, Japanese prefectural and foreign municipal bond securities totaling ¥3,305 million were transferred from Level 2 to Level 3, since the valuation techniques to measure fair value of a certain foreign municipal bond security has been changed to discounted cash flows methodologies using unobservable inputs. The change of the valuation techniques is due to judgement that the Company and its subsidiaries cannot rely on price quotations from independent pricing service vendors and brokers considering deterioration of estimated cash flows from the security. In addition, CMBS and RMBS in Americas totaling ¥23,406 million were transferred from Level 3 to Level 2, since the inputs such as trading price and/or bid price became observable due to the market returning to active. There were no transfers in or out of Level 3 in the three months ended December 31, 2019.

– 46 –

The following tables present recorded amounts of assets measured at fair value on a nonrecurring basis during year ended March 31, 2019 and the nine months ended December 31, 2019. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment:

Year ended March 31, 2019

	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	¥	3,839	¥	0	¥	3,839	¥	0
Real estate collateral-dependent loans (net of allowance for probable loan losses)		6,630		0		0		6,630
Investment in operating leases and property under facility operations		12,901		0		0		12,901
Certain investments in affiliates		2,897		0		0		2,897
	¥	26,267	¥	0	¥	3,839	¥	22,428
Nine months ended December 31, 2019
	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)	¥	4,494	¥	0	¥	0	¥	4,494
Investment in operating leases and property under facility operations		4,462		0		712		3,750
Certain investments in affiliates		1,561		0		0		1,561
	¥	10,517	¥	0	¥	712	¥	9,805

The following is a description of the main valuation methodologies used for assets and liabilities measured at fair value.

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. The loans held for sale in the Americas are classified as Level 2, because the Company and its subsidiaries measure their fair value based on a market approach using inputs other than quoted prices that are observable for the assets such as treasury rate, swap rate and market spread.

Real estate collateral-dependent loans

The valuation allowance for large balance non-homogeneous loans is individually evaluated 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. According to ASC 820 (“Fair Value Measurement”), measurement for impaired loans determined using a present value technique is not considered a fair value measurement. However, measurement for impaired loans determined using the loan’s observable market price or the fair value of the collateral securing the collateral-dependent loans are fair value measurements and are subject to the disclosure requirements for nonrecurring fair value measurements.

– 47 –

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 debt securities and available-for-sale debt securities

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 such as 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 benchmark 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 spread, significant decline in new issuances, little or no public information (e.g. a principal-to-principal market) and other factors. With respect to certain CMBS and RMBS in the Americas and other asset-backed securities, the Company and its subsidiaries judged that there has been increased overall trading activity, and the Company and its subsidiaries classified these securities as Level 2 for those securities that were measured at fair value based on the observable inputs such as trading price and/or bit price. But for those securities that lacked observable trades because they are older vintage or below investment grade securities, the Company and its subsidiaries limit the reliance on independent pricing service vendors and brokers. As a result, the Company and its subsidiaries established internally developed pricing models using valuation techniques such as discounted cash flow model using Level 3 inputs in order to estimate fair value of these debt securities and classified them as Level 3. Under the models, the Company and its subsidiaries use anticipated cash flows of the security discounted at a risk-adjusted discount rate that incorporates our estimate of credit risk and liquidity risk that a market participant would consider. The cash flows are estimated based on a number of assumptions such as default rate and prepayment speed, as well as seniority of the security. An increase (decrease) in the discount rate or default rate would result in a decrease (increase) in the fair value of CMBS and RMBS in the Americas and other asset-backed securities.

– 48 –

Equity securities and investment in affiliates

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. Certain subsidiaries elected the fair value option for investments in some funds. In addition, a certain subsidiary measures its investment held by the investment company which is owned by the subsidiary at fair value. These investment funds are classified as Level 3, because the subsidiaries measure their fair value based on discounted cash flow methodologies using inputs that are unobservable in the market and broker quotes.

Derivatives

For exchange-traded derivatives, fair value is based on quoted market prices, and accordingly, classified as Level 1. For non-exchange traded derivatives, fair value is based on commonly used models and discounted cash flow methodologies. If the inputs used for these measurements including yield curves and volatilities, are observable, the Company and its subsidiaries classify it as Level 2. If the inputs are not observable, the Company and its subsidiaries classify it as Level 3. These unobservable inputs contain discount rates. An increase (decrease) in the discount rate would result in a decrease (increase) in the fair value of derivatives.

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. 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.

– 49 –

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, 2019 and December 31, 2019.

	March 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Available-for-sale debt securities:
Japanese prefectural and foreign municipal bond securities	¥	2,888	Discounted cash flows	Discount rate	8.5%
					(8.5%)
Corporate debt securities		2,162	Discounted cash flows	Discount rate	0.1% – 1.3%
					(0.8%)
		4,996	Appraisals/Broker quotes	—	—
Other asset-backed securities and debt securities		23,651	Discounted cash flows	Discount rate	0.2% – 51.2%
					(8.3%)
				Probability of default	0.6% – 1.6%
					(0.8%)
		66,750	Appraisals/Broker quotes	—	—
Equity securities:
Investment funds		6,012	Internal cash flows	Discount rate	0.0% – 65.0%
					(11.3%)
		32,702	Discounted cash flows	Discount rate	3.8% – 17.0%
					(14.1%)
		22,479	Appraisals/Broker quotes	—	—
Derivative assets:
Options held/written and other		5,005	Discounted cash flows	Discount rate	0.0% – 15.0%
					(8.6%)
		267	Appraisals/Broker quotes	—	—
Other assets:
Reinsurance recoverables		12,449	Discounted cash flows	Discount rate	(0.1)% – 0.4%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 24.0%
					(16.2%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (99.9%)
Total	¥	179,361
Liabilities:
Policy liabilities and Policy Account Balances:
Variable annuity and variable life insurance contracts	¥	360,198	Discounted cash flows	Discount rate	(0.1)% – 0.4%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 54.0%
					(16.0%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (80.3%)
Total	¥	360,198

– 50 –

	December 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Available-for-sale debt securities:
Japanese prefectural and foreign municipal bond securities	¥	2,851	Discounted cash flows	Discount rate	8.5%
					(8.5%)
Corporate debt securities		2,216	Discounted cash flows	Discount rate	0.2% – 2.5%
					(0.8%)
		2,000	Appraisals/Broker quotes	—	—
Other asset-backed securities and debt securities		19,168	Discounted cash flows	Discount rate	1.0% – 51.2%
					(11.3%)
				Probability of default	1.9%
					(1.9%)
		74,731	Appraisals/Broker quotes	—	—
Equity securities:
Investment funds		5,352	Internal cash flows	Discount rate	0.0% – 65.0%
					(2.3%)
		49,972	Discounted cash flows	Discount rate	3.8% – 19.1%
					(16.8%)
		10,858	Appraisals/Broker quotes	—	—
Derivative assets:
Options held/written and other		10,391	Discounted cash flows	Discount rate	12.0% – 33.0%
					(14.0%)
		53	Appraisals/Broker quotes	—	—
Other assets:
Reinsurance recoverables		9,219	Discounted cash flows	Discount rate	(0.1)% – 0.5%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.4%)
				Lapse rate	1.5% – 14.0%
					(7.2%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (100.0%)
Total	¥	186,811
Liabilities:
Derivative liabilities:
Options held/written and other		27	Appraisals/Broker quotes	—	—
Policy liabilities and Policy Account Balances:
Variable annuity and variable life insurance contracts	¥	333,017	Discounted cash flows	Discount rate	(0.1)% – 0.5%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 30.0%
					(7.2%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (80.2%)
Total	¥	333,044

– 51 –

The following tables provide information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets measured at fair value on a nonrecurring basis during year ended March 31, 2019 and the nine months ended December 31, 2019.

	Year ended March 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Real estate collateral-dependent loans (net of allowance for probable loan losses)	¥	6,630	Direct capitalization	Capitalization rate	5.8% – 8.2%
					(6.3%)
			Appraisals	—	—
Investment in operating leases and property under facility operations		2,345	Discounted cash flows	Discount rate	7.3%
					(7.3%)
		10,556	Appraisals	—	—
Certain investments in affiliates		334	Business enterprise value multiples	—	—
			Discounted cash flows	Discount rate	14.0%
					(14.0%)
		2,563	Appraisals	—	—
	¥	22,428
	Nine months ended December 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Real estate collateral-dependent loans (net of allowance for probable loan losses)	¥	4,494	Direct capitalization	Capitalization rate	5.6% – 6.6%
					(6.1%)
			Appraisals	—	—
Investment in operating leases and property under facility operations		3,750	Appraisals	—	—
Certain investments in affiliates		1,561	Appraisals	—	—
	¥	9,805

The Company and its subsidiaries generally use discounted cash flow methodologies or similar internally developed models to determine the fair value of Level 3 assets and liabilities. Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding table. Accordingly, changes in these unobservable inputs may have a significant impact on the fair value.

Certain of these unobservable inputs will have a directionally consistent impact on the fair value of the asset or liability for a given change in that input. Alternatively, the fair value of the asset or liability may move in an opposite direction for a given change in another input. Where multiple inputs are used within the valuation technique of an asset or liability, a change in one input in a certain direction may be offset by an opposite change in another input having a potentially muted impact to the overall fair value of that particular asset or liability. Additionally, a change in one unobservable input may result in a change to another unobservable input (that is, changes in certain inputs are interrelated to one another), which may counteract or magnify the fair value impact.

For more analysis of the sensitivity of each input, see the description of the main valuation methodologies used for assets and liabilities measured at fair value.

– 52 –

4. Acquisitions and Divestitures

(1) Acquisitions

There were no material acquisitions during the nine months ended December 31, 2018 and 2019.

As a result of the reassessment of the provisional purchase price allocation during the three months ended June 30, 2019, the Company recognized bargain purchase gains of ¥1,022 million associated with two of its acquisitions executed in the three months ended March 31, 2019. The bargain purchase gains could possibly be adjusted because the purchase price allocations for these acquisitions have not been completed yet with respect to the final valuation of acquired intangible assets among others.

(2) Divestitures

Gains on sales of subsidiaries and affiliates and liquidation losses, net for the nine months ended December 31, 2018 and 2019 were ¥20,470 million and ¥58,488 million, respectively. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the nine months ended December 31, 2018 mainly consisted of ¥18,688 million in Overseas Business segment, ¥1,220 million in Maintenance Leasing segment, ¥556 million in Investment and Operation segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the nine months ended December 31, 2019 mainly consisted of ¥24,202 million in Overseas Business segment, ¥18,007 million in Investment and Operation segment and ¥16,216 million in Real Estate segment.

Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended December 31, 2018 and 2019 were ¥1,438 million and ¥25,200 million, respectively. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended December 31, 2018 mainly consisted of ¥1,220 million in Maintenance Leasing segment, ¥218 million in Overseas Business segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended December 31, 2019 mainly consisted of ¥16,072 million in Investment and Operation segment, ¥8,954 million in Overseas Business segment.

During the three months ended September 30, 2019, the Company sold ORIX Living Corporation (hereinafter, “ORIX Living”, which was a consolidated subsidiary of the Company and has changed its name to GOOD TIME LIVING Corporation on August 30, 2019). Gains on the sale of the subsidiary were included in Real Estate segment. Because the Company has determined to sell the subsidiary during fiscal 2019, the assets or debts of the subsidiary were mainly recognized as property under facility operations of ¥42,595 million and other liabilities of ¥23,078 million, which were classified as held for sale, in the Company’s consolidated balance sheets as of March 31, 2019. Neither gain nor loss was recognized as the related assets and liabilities were classified as held for sale. These related assets and liabilities were included in Real Estate segment.

– 53 –

5. Revenues from Contracts with Customers

The following table provides information about revenues from contracts with customers, and other sources of revenue for the nine and three months ended December 31, 2018 and 2019 are as follows;

	Millions of yen		Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Revenues from contracts with customers	¥	1,052,813	¥	866,201
Other revenues *		743,342		818,178
Total revenues	¥	1,796,155	¥	1,684,379
	Millions of yen		Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Revenues from contracts with customers	¥	325,457	¥	289,145
Other revenues *		208,684		282,556
Total revenues	¥	534,141	¥	571,701

* Other revenues are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.

The Company and its subsidiaries recognize revenues when control of the promised goods or services is transferred to our customers, in the amounts that reflect the consideration we expect to receive in exchange for those goods or services. Revenues are recognized net of discounts, incentives and estimated sales returns. Amount to be collected for third party is deducted from revenues. The Company and its subsidiaries evaluate whether we are principal or agent on distinctive goods or services. In transaction that third party concerns, if the Company and its subsidiaries control the goods or services before they are transferred to customers, revenue is recognized on gross amount as the principal. There is no significant variability in considerations included in revenues, except for the performance fees regarding asset management business hereinafter, and there is no significant financing component in considerations on transactions.

For further information about breakdowns of revenues disaggregated by goods or services category and geographical location by segment, see Note 24 “Segment Information.”

– 54 –

Revenue recognition criteria on each goods or services category are mainly as follows:

Sales of goods

The Company and its subsidiaries sell various goods such as precious metals, medical equipment, accounting software and other to customers. Revenues from sales of goods are recognized when there is a transfer of control of the product to customers. The Company and its subsidiaries determine transfer of control based on when the products are shipped or delivered to customers, or inspected by customers.

Real estate sales

Certain subsidiaries are involved in developing and selling real estates. Revenues from sale of detached houses and residential condominiums are recognized when the real estate is delivered to customers.

Asset management and servicing

Certain subsidiaries offer customers investment management services for their financial assets, asset management as well as maintenance and administrative services for their real estate properties. Furthermore, the Company and its subsidiaries perform servicing on behalf of customers. Revenues from asset management and servicing primarily include management fees, servicing fees, and performance fees. Management and servicing fees are recognized over the contract period with customers, since the customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform. 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 contract terms. Servicing fees are calculated based on the predetermined percentages of the amount in assets under management in accordance with contract terms. Fees based on the performance of the assets under management are recognized when the performance obligations are satisfied, 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. The performance fee is estimated by using the most likely amount method, in accordance with contract terms. Servicing fees related to financial assets that the Company and its subsidiaries had originated and transferred to investors, are not in the scope of revenue from contracts with customers. These fees are accounted for servicing assets under which the benefits of servicing are expected to more than adequately compensate for performing the servicing, or servicing liabilities under which the benefits of servicing are not expected to adequately compensate for performing the servicing.

Automobile related services

Certain subsidiaries mainly provide automobile maintenance services to customers, as automobile related services. In the service, since customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform, revenues are recognized over the contract period with customers. For measurement of progress, the cost incurred is used, because that reasonably describes transfer of control of services to customers. The subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Facilities operation

The Company and its subsidiaries are running hotels, Japanese inns, training facilities, a multipurpose dome and other facilities. Revenues from these operations are recognized over the customers’ usage period of the facilities, since customers simultaneously receive and consume the benefits provided by the performance as the Company and its subsidiaries perform. The value transferred to customers is directly measured based on the usage period. With respect to operation of a multipurpose dome and other facilities, certain subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities. Gains on sale of property under facility operations included in services income are not in the scope of revenue from contracts with customers due to the gains are transfers of nonfinancial assets to counterparties that are not our customers.

Environment and energy services

The Company and its subsidiaries offer services that provide electric power for business operators’ factories, office buildings and other facilities. Revenues from electric power supply by purchasing electricity or running power plants are recognized over the contracted distribution period with customers, since customers simultaneously receive and consume the benefits provided by the performance as the Company and its subsidiaries perform. The value transferred to customers is directly measured based on electricity usage by customers. Furthermore, certain subsidiaries are running waste processing facilities. Revenues from resources and waste processing business are primarily recognized over the service contract period with customers, since customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform. The value transferred to customers is directly measured based on the amount of resources and waste to be processed.

– 55 –

Real estate management and brokerage

The Company and its subsidiaries mainly offer management of condominiums, office buildings, and facilities and other, to customers, as real estate management and brokerage business. Since customers simultaneously receive and consume the benefits provided by the performance as the Company and its subsidiaries perform, revenues from these services are recognized over the contract period with customers. Direct measurement of the value transferred to customers based on time elapsed, is used as method of measuring progress. The Company and its subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Real estate contract work

Certain subsidiaries offer repair and contract work for condominiums, office buildings, and facilities, and other, to customers. The work is held on the real estate where customers own or rent, and the subsidiaries’ performance creates the asset that the customers’ control as the asset is created or enhanced. Additionally, the performance does not create an asset with an alternative use to the subsidiaries, and the subsidiaries have a substantial enforceable right to payment for performance completed to date so that revenues are recognized over the contract work period. For measurement of progress, the cost incurred is used, because that reasonably describes transfer of control of services to customers. The subsidiaries recognize contract assets regarding a part of performance obligations that the subsidiaries performed, and the amounts are reported in other assets on the consolidated balance sheets. Furthermore, the subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Other

The Company and its subsidiaries have been developing a variety of businesses. Main revenue streams are as follows;

Maintenance services of software, measurement equipment and other:

Certain subsidiaries offer accounting software maintenance services and support, and maintenance of measurement equipment to customers. Revenues from these services are recognized over the contract period with customers, since customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform. For measurement of progress, the cost incurred is used, because that reasonably describes transfer of control of services to customers. The subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Fee business:

The Company and its subsidiaries are involved in insurance policy referrals and other agency business. Commission revenues from these businesses are primarily recognized when the contract between our customers and their client is signed.

– 56 –

The following table provides information about balances from contracts with customers as of March 31, 2019 and December 31, 2019.

	Millions of yen
	March 31, 2019		December 31, 2019
Trade Notes, Accounts and Other Receivable	¥	161,884	¥	166,573
Contract assets (Included in Other Assets)		2,277		6,573
Contract liabilities (Included in Other Liabilities)		45,371		31,228

For the nine months ended December 31, 2018 and 2019, there were no significant changes in contract assets. For the nine months ended December 31, 2018, there were no significant changes in contract liabilities. For the nine months ended December 31, 2019, contract liabilities decreased due to deconsolidation of contract liabilities of ¥14,342 million related to facilities operation caused by the sale of ORIX Living.

For the nine months ended December 31, 2018, revenue amounted to ¥34,564 million was included in contract liabilities as of the beginning of the previous fiscal year. For the nine months ended December 31, 2019, revenue amounted to ¥28,209 million was included in contract liabilities as of the end of the previous fiscal year.

For the three months ended December 31, 2018, revenue amounted to ¥5,328 million was included in contract liabilities as of the beginning of the previous fiscal year. For the three months ended December 31, 2019, revenue amounted to ¥5,262 million was included in contract liabilities as of the end of the previous fiscal year.

As of December 31, 2019, transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) is mainly related to automobile related services, real estate sales and amounted to ¥142,028 million. Remaining term for the obligations ranges up to 15 years. Furthermore, automobile related services primarily constitute the performance obligations that are unsatisfied (or partially unsatisfied) will be recognized as revenue over the next 10 years. The Company and its subsidiaries applied practical expedients in the disclosure, and performance obligations for contracts that have an original expected duration of one year or less and contracts under which the value transferred to a customer is directly measured and recognized as revenue by the amount it has a right to invoice to the customer are not included. The transaction price allocated to unsatisfied performance obligations does not include the estimate of material variable consideration.

– 57 –

6. Leases

(1) Lessor

Lessor leases consist of leases for various equipment types, including office equipment, industrial machinery, transportation equipment and real estate. Net investment in leases includes sales-type leases and direct-financing leases. Interest income on net investment in leases is recognized over the life of each respective lease using the interest method. Sales-type leases and direct financing leases are full-payout leases. Leases not qualifying as sales-type leases or direct financing leases are accounted for as operating leases and related revenue is recognized on an equality over the lease term. In providing leasing services, the Company and its subsidiaries execute supplemental businesses, such as paying insurance and handling taxes on leased assets on behalf of lessees.

Some of the contracts include options to extend or to terminate the lease. The Company and its subsidiaries determine the lease term while taking such periods covered by options into account when determined the lease term when it is reasonably certain that it will exercise these options. The majority of the lease contracts do not contain bargain purchase options for customers.

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 determined 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. The Company and its subsidiaries may incur losses if the estimated residual amounts are unable to collect or need to recognize valuation losses when the estimates differ from actual trends in equipment valuation and the secondhand market. The risk of loss on leased assets relating to the estimated unguaranteed residual value of the leased assets is monitored through projections of the estimated unguaranteed residual value at lease origination and periodic review of estimated unguaranteed residual value.

Initial direct costs of sales-type leases and direct financing leases are mainly 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 of sales-type leases and direct financing leases is reflected as net investment in leases. Initial direct costs of operating leases are being deferred and amortized as a straight-line basis over the life of the related lease. The unamortized balance of initial direct costs is reflected as investment in operating leases.

When auto leases are bundled with maintenance contracts, considerations on contracts are allocated based upon the estimated standalone selling prices of the lease and non-lease components. Lease components generally include product and financing cost, and non-lease components generally consist of maintenance contracts.

Certain subsidiary is providing automobile related services, and applying practical expedients, to not separate non-lease components from the associated lease components. In this service, ASC 606 is applied to the entire contract because the consideration related to non-lease components accounts for the majority of contract consideration. Revenues from these operations are recognized over the customers’ usage period of the services, since customers simultaneously receive and consume the benefits when the performance obligations are satisfied. The value transferred to customers is directly measured based on the usage period.

– 58 –

Lease income for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Lease income—net investment in leases
Interest income	¥	41,028
Other		1,601
Lease income—operating leases *		303,148
Total lease income	¥	345,777

* Gains from the disposition of real estate under operating leases included in operating lease revenues are ¥23,044 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues are ¥14,234 million for the nine months ended December 31, 2019.

	Millions of yen
	Three months ended December 31, 2019
Lease income—net investment in leases
Interest income	¥	14,020
Other		511
Lease income—operating leases *		100,743
Total lease income	¥	115,274

* Gains from the disposition of real estate under operating leases included in operating lease revenues are ¥4,636 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues are ¥6,047 million for the three months ended December 31, 2019.

Lease income from net investment in leases is included in finance revenues in the consolidated statements of income.

Net investment in leases at December 31, 2019 consists of the following:

	Millions of yen
	December 31, 2019
Lease receivables	¥	1,108,611
Unguaranteed residual value		29,325
Initial direct costs		4,403
Total	¥	1,142,339

Investment in operating leases at December 31, 2019 consists of the following:

	Millions of yen
	December 31, 2019
Transportation equipment	¥	1,386,422
Measuring and information-related equipment		278,294
Real estate		305,842
Other		31,593
		2,002,151
Accumulated depreciation		(659,318	)
Net		1,342,833
Right-of-use assets (operating leases)		128,951
Accrued rental receivables		33,469
Total	¥	1,505,253

– 59 –

Costs of operating leases include depreciation and various expenses (insurance, property tax and other). Depreciation and various expenses for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Depreciation expenses	¥	155,668
Various expenses		41,641
Total	¥	197,309

	Millions of yen
	Three months ended December 31, 2019
Depreciation expenses	¥	52,714
Various expenses		13,674
Total	¥	66,388

Remaining lease receivables of net investment in leases (including residual value guarantees) range up to 30 years at December 31, 2019. Remaining lease receivables of the operating lease contracts range up to 61 years at December 31, 2019. At December 31, 2019, the amounts due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending December 31,	Net investment in leases			Operating leases
2020	¥	455,576		¥	289,678
2021		307,960			200,061
2022		205,011			138,467
2023		121,870			91,911
2024		68,358			55,608
Thereafter		86,125			149,596
Total lease payments		1,244,900		¥	925,321
Less imputed interest		(136,289	)
Total lease receivables	¥	1,108,611

(2) Lessee

The Company and its subsidiaries determine if an arrangement is a lease at inception of each contract. The Company and its subsidiaries have operating and finance leases for various assets including lands, office buildings, employees’ accommodations, and vehicles. Some of the lease arrangements include options to extend or terminate lease term. The Company and its subsidiaries determine the lease term while taking such options into account when determined the lease term when it is reasonably certain that it will exercise these options. The Company and its subsidiaries’ lease arrangements do not contain material residual value guarantees or material restrictive covenants. As a rate implicit in the most of the leases cannot be readily determinable, the Company and its subsidiaries use incremental borrowing rate based on the information available at commencement to determine the present values of lease payments.

– 60 –

The component of lease expense for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Finance lease cost
Depreciation expenses of right-of-use assets	¥	667
Interest expenses of lease liabilities		267
		934
Operating lease cost		31,791
Short-term lease cost		2,019
Variable lease cost		920
Sublease income		(2,828	)
Total	¥	32,836
	Millions of yen
	Three months ended December 31, 2019
Finance lease cost
Depreciation expenses of right-of-use assets	¥	212
Interest expenses of lease liabilities		36
		248
Operating lease cost		10,473
Short-term lease cost		717
Variable lease cost		375
Sublease income		(708	)
Total	¥	11,105

Supplemental cash flow information related to leases for the nine months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	267	¥	33,685
Cash flows from financing activities		409		0
Right-of-use assets obtained in exchange for lease liabilities:	¥	531	¥	29,800

– 61 –

Supplemental balance sheet information related to lessee leases at December 31, 2019 are as follows:

	Millions of yen, except lease term and discount rate
	December 31, 2019
	Finance leases			Operating leases
Investment in Operating Leases	¥	0		¥	128,951
Property under Facility Operations		2,299			69,719
Office Facilities		9			75,816
Total right-of-use assets		2,308			274,486
Other Liabilities		2,914			271,093
Total lease liabilities	¥	2,914		¥	271,093
Weighted average remaining lease term		9years			14years
Weighted average discount rate		3.02	%		1.15	%

At December 31, 2019, the amounts of lease liabilities related to lessee leases due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending December 31,	Finance leases			Operating leases
2020	¥	487		¥	45,643
2021		484			32,221
2022		482			28,155
2023		477			25,500
2024		473			21,481
Thereafter		963			138,354
Total lease payments		3,366			291,354
Less imputed interest		(452	)		(20,261	)
Total lease liabilities	¥	2,914		¥	271,093

– 62 –

7. 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 and past-due financing receivables

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 finance 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.

– 63 –

The following table provides information about the allowance for credit losses as of March 31, 2019, for the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,196		¥	688		¥	18,407		¥	4,292		¥	10,089		¥	54,672
Provision (Reversal)		9,129			(13	)		2,418			(241	)		2,782			14,075
Charge-offs		(7,867	)		0			(2,692	)		(358	)		(1,671	)		(12,588	)
Recoveries		465			0			196			102			141			904
Other *2		(16	)		18			346			2			(70	)		280
Ending balance	¥	22,907		¥	693		¥	18,675		¥	3,797		¥	11,271		¥	57,343
Individually evaluated for impairment		3,349			47			6,985			2,406			0			12,787
Not individually evaluated for impairment		19,558			646			11,690			1,391			11,271			44,556
Financing receivables :
Ending balance	¥	1,856,623		¥	89,084		¥	1,166,032		¥	16,756		¥	1,165,792		¥	4,294,287
Individually evaluated for impairment		22,793			3,232			24,215			4,176			0			54,416
Not individually evaluated for impairment		1,833,830			85,852			1,141,817			12,580			1,165,792			4,239,871
	Three months ended December 31, 2018
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	22,060		¥	627		¥	18,409		¥	3,905		¥	10,839		¥	55,840
Provision (Reversal)		3,390			74			1,426			(55	)		1,030			5,865
Charge-offs		(2,727	)		0			(931	)		(54	)		(496	)		(4,208	)
Recoveries		178			0			48			6			21			253
Other *2		6			(8	)		(277	)		(5	)		(123	)		(407	)
Ending balance	¥	22,907		¥	693		¥	18,675		¥	3,797		¥	11,271		¥	57,343
	March 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Ending balance	¥	21,195		¥	919		¥	20,662		¥	3,186		¥	12,049		¥	58,011
Individually evaluated for impairment		3,372			166			8,276			1,917			0			13,731
Not individually evaluated for impairment		17,823			753			12,386			1,269			12,049			44,280
Financing receivables :
Ending balance	¥	1,906,022		¥	99,028		¥	1,201,893		¥	16,416		¥	1,155,632		¥	4,378,991
Individually evaluated for impairment		23,163			4,448			27,452			3,764			0			58,827
Not individually evaluated for impairment		1,882,859			94,580			1,174,441			12,652			1,155,632			4,320,164

– 64 –

	Nine months ended December 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,195		¥	919		¥	20,662		¥	3,186		¥	12,049		¥	58,011
Provision (Reversal)		9,931			353			3,240			(133	)		2,333			15,724
Charge-offs		(9,360	)		(1	)		(5,046	)		(470	)		(1,937	)		(16,814	)
Recoveries		419			0			142			48			23			632
Other *3		(26	)		(6	)		(609	)		11			(1	)		(631	)
Ending balance	¥	22,159		¥	1,265		¥	18,389		¥	2,642		¥	12,467		¥	56,922
Individually evaluated for impairment		3,528			229			6,009			1,488			0			11,254
Not individually evaluated for impairment		18,631			1,036			12,380			1,154			12,467			45,668
Financing receivables :
Ending balance	¥	2,126,058		¥	143,103		¥	1,251,329		¥	14,806		¥	1,142,339		¥	4,677,635
Individually evaluated for impairment		26,147			2,516			38,119			2,998			0			69,780
Not individually evaluated for impairment		2,099,911			140,587			1,213,210			11,808			1,142,339			4,607,855
	Three months ended December 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,789		¥	1,055		¥	17,333		¥	2,760		¥	12,236		¥	55,173
Provision (Reversal)		2,956			192			1,499			(55	)		559			5,151
Charge-offs		(2,740	)		0			(687	)		(107	)		(599	)		(4,133	)
Recoveries		146			0			45			28			13			232
Other *3		8			18			199			16			258			499
Ending balance	¥	22,159		¥	1,265		¥	18,389		¥	2,642		¥	12,467		¥	56,922

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.

*3 Other mainly includes foreign currency translation adjustments and a decrease in allowance related to a sale of a subsidiary.

– 65 –

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 experience;

• 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 loans, including loans that are not individually evaluated for impairment, and finance leases, the Company and its subsidiaries evaluate prior charge-off experience as segmented by debtor’s industry and the purpose of the loans and develop the allowance for credit losses based on such prior charge-off experience as well as current economic conditions.

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 experience. For loans to corporate other borrowers and finance leases, the amount of the allowance for credit losses is changed by current economic conditions and trends, the value of underlying collateral and guarantees, and the prior charge-off experience in addition to the debtors’ creditworthiness.

The decline of the value of underlying collateral and guarantees may increase the risk of inability to collect from the loans and finance leases. Particularly for non-recourse loans for which cash flow from real estate is the source of repayment, their collection depends on the real estate collateral value, which may decline as a result of decrease in liquidity of the real estate market, rise in vacancy rate of rental properties, fall in rents and other factors. These risks may change the amount of the allowance for credit losses. For purchased loans, their collection may decrease due to a decline in the real estate collateral value and debtors’ creditworthiness. Thus, these risks may change the amount of the allowance for credit losses.

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.

– 66 –

The following table provides information about the impaired loans as of March 31, 2019 and December 31, 2019:

	March 31, 2019
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	17,593	¥	17,521	¥	0
Consumer borrowers			1,158		1,111		0
	Housing loans		589		542		0
	Card loans		0		0		0
	Other		569		569		0
Corporate borrowers			16,329		16,304		0
Non-recourse loans	Japan		232		232		0
	The Americas		3,404		3,404		0
Other	Real estate companies		887		887		0
	Entertainment companies		0		0		0
	Other		11,806		11,781		0
Purchased loans			106		106		0
With an allowance recorded *2			41,234		40,234		13,731
Consumer borrowers			22,005		21,401		3,372
	Housing loans		3,845		3,639		835
	Card loans		3,945		3,937		633
	Other		14,215		13,825		1,904
Corporate borrowers			15,571		15,175		8,442
Non-recourse loans	Japan		0		0		0
	The Americas		812		812		166
Other	Real estate companies		1,493		1,480		419
	Entertainment companies		1,382		1,374		490
	Other		11,884		11,509		7,367
Purchased loans			3,658		3,658		1,917
Total		¥	58,827	¥	57,755	¥	13,731
Consumer borrowers			23,163		22,512		3,372
	Housing loans		4,434		4,181		835
	Card loans		3,945		3,937		633
	Other		14,784		14,394		1,904
Corporate borrowers			31,900		31,479		8,442
Non-recourse loans	Japan		232		232		0
	The Americas		4,216		4,216		166
Other	Real estate companies		2,380		2,367		419
	Entertainment companies		1,382		1,374		490
	Other		23,690		23,290		7,367
Purchased loans			3,764		3,764		1,917

– 67 –

	December 31, 2019
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	30,813	¥	30,811	¥	0
Consumer borrowers			1,088		1,086		0
	Housing loans		682		680		0
	Card loans		0		0		0
	Other		406		406		0
Corporate borrowers			29,616		29,616		0
Non-recourse loans	The Americas		1,751		1,751		0
Other	Real estate companies		14,009		14,009		0
	Entertainment companies		31		31		0
	Other		13,825		13,825		0
Purchased loans			109		109		0
With an allowance recorded *2			38,967		38,507		11,254
Consumer borrowers			25,059		24,740		3,528
	Housing loans		5,301		5,285		802
	Card loans		3,914		3,906		625
	Other		15,844		15,549		2,101
Corporate borrowers			11,019		10,878		6,238
Non-recourse loans	The Americas		765		765		229
Other	Real estate companies		1,173		1,160		373
	Entertainment companies		453		452		109
	Other		8,628		8,501		5,527
Purchased loans			2,889		2,889		1,488
Total		¥	69,780	¥	69,318	¥	11,254
Consumer borrowers			26,147		25,826		3,528
	Housing loans		5,983		5,965		802
	Card loans		3,914		3,906		625
	Other		16,250		15,955		2,101
Corporate borrowers			40,635		40,494		6,238
Non-recourse loans	The Americas		2,516		2,516		229
Other	Real estate companies		15,182		15,169		373
	Entertainment companies		484		483		109
	Other		22,453		22,326		5,527
Purchased loans			2,998		2,998		1,488

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.

– 68 –

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 90 days or more, or it is probable that the Company and its subsidiaries will be unable to collect all amounts due according to the contractual terms of the loan agreements due to various debtor conditions, including insolvency filings, suspension of bank transactions, dishonored bills and deterioration of businesses. For non-recourse loans, in addition to these conditions, the Company and its subsidiaries perform an impairment review using financial covenants, acceleration clauses, loan-to-value ratios, and other relevant available information.

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 loans, in principle, the estimated collectible amount is determined based on the fair value of the collateral securing the loans as they are collateral-dependent. Further for certain non-recourse loans, the estimated collectible amount is determined based on the present value of expected future cash flows. The fair value of the real estate collateral securing the loans is determined 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. We generally obtain a new appraisal once a fiscal year. In addition, we 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 its fair value. For impaired purchased loans, the Company and its subsidiaries develop the allowance for credit losses based on the difference between the book value and the estimated collectible amount of such loans.

The following table provides information about the average recorded investments in impaired loans and interest income on impaired loans for the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
		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		¥	20,526	¥	299	¥	270
	Housing loans		4,121		105		103
	Card loans		4,029		46		40
	Other		12,376		148		127
Corporate borrowers			24,493		248		237
Non-recourse loans	Japan		249		4		4
	The Americas		2,607		0		0
Other	Real estate companies		2,490		26		26
	Entertainment companies		1,536		29		23
	Other		17,611		189		184
Purchased loans			4,761		42		41
Total		¥	49,780	¥	589	¥	548

– 69 –

	Nine months ended December 31, 2019
		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		¥	24,268	¥	341	¥	300
	Housing loans		4,906		109		105
	Card loans		3,924		44		38
	Other		15,438		188		157
Corporate borrowers			31,962		106		104
Non-recourse loans	Japan		172		2		2
	The Americas		3,077		0		0
Other	Real estate companies		5,260		25		25
	Entertainment companies		940		18		18
	Other		22,513		61		59
Purchased loans			3,484		139		139
Total		¥	59,714	¥	586	¥	543
	Three months ended December 31, 2018
			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		¥	22,433	¥	78	¥	78
	Housing loans		4,561		16		16
	Card loans		4,003		14		14
	Other		13,869		48		48
Corporate borrowers			27,695		26		26
Non-recourse loans	Japan		242		0		0
	The Americas		2,173		0		0
Other	Real estate companies		2,417		8		8
	Entertainment companies		1,472		5		5
	Other		21,391		13		13
Purchased loans			4,311		10		10
Total		¥	54,439	¥	114	¥	114
	Three months ended December 31, 2019
		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		¥	25,781	¥	106	¥	100
	Housing loans		5,840		34		32
	Card loans		3,908		13		13
	Other		16,033		59		55
Corporate borrowers			33,618		54		54
Non-recourse loans	Japan		111		0		0
	The Americas		2,495		0		0
Other	Real estate companies		8,312		6		6
	Entertainment companies		499		4		4
	Other		22,201		44		44
Purchased loans			3,110		53		53
Total		¥	62,509	¥	213	¥	207

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 balances.

– 70 –

The following table provides information about the credit quality indicators as of March 31, 2019 and December 31, 2019:

	March 31, 2019
		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		¥	1,870,447	¥	23,163	¥	12,412	¥	35,575	¥	1,906,022
	Housing loans		1,593,005		4,434		1,388		5,822		1,598,827
	Card loans		239,523		3,945		1,671		5,616		245,139
	Other		37,919		14,784		9,353		24,137		62,056
Corporate borrowers			1,269,021		31,900		0		31,900		1,300,921
Non-recourse loans	Japan		48,881		232		0		232		49,113
	The Americas		45,699		4,216		0		4,216		49,915
Other	Real estate companies		352,669		2,380		0		2,380		355,049
	Entertainment companies		64,665		1,382		0		1,382		66,047
	Other		757,107		23,690		0		23,690		780,797
Purchased loans			12,652		3,764		0		3,764		16,416
Finance leases			1,140,825		0		14,807		14,807		1,155,632
	Japan		787,081		0		6,158		6,158		793,239
	Overseas		353,744		0		8,649		8,649		362,393
Total		¥	4,292,945	¥	58,827	¥	27,219	¥	86,046	¥	4,378,991
	December 31, 2019
		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		¥	2,087,663	¥	26,147	¥	12,248	¥	38,395	¥	2,126,058
	Housing loans		1,832,996		5,983		1,665		7,648		1,840,644
	Card loans		220,801		3,914		1,506		5,420		226,221
	Other		33,866		16,250		9,077		25,327		59,193
Corporate borrowers			1,353,797		40,635		0		40,635		1,394,432
Non-recourse loans	Japan		72,597		0		0		0		72,597
	The Americas		67,990		2,516		0		2,516		70,506
Other	Real estate companies		371,534		15,182		0		15,182		386,716
	Entertainment companies		62,470		484		0		484		62,954
	Other		779,206		22,453		0		22,453		801,659
Purchased loans			11,808		2,998		0		2,998		14,806
Finance leases			1,126,844		0		15,495		15,495		1,142,339
	Japan		765,613		0		6,084		6,084		771,697
	Overseas		361,231		0		9,411		9,411		370,642
Total		¥	4,580,112	¥	69,780	¥	27,743	¥	97,523	¥	4,677,635

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 assets. The category of non-performing assets includes financing receivables for debtors who have filed for insolvency proceedings, whose bank transactions are suspended, whose bills are dishonored, whose businesses have deteriorated, whose repayment is past-due 90 days or more, financing receivables modified as troubled debt restructurings, and performing assets include all other financing receivables. Regarding purchased loans, they are classified as non-performing assets when considered impaired, while all the other loans are included in the category of performing assets.

– 71 –

Out of non-performing assets, the Company and its subsidiaries consider smaller balance homogeneous loans, including housing loans, card loans and other, which are not restructured and finance leases, as 90 days or more past-due financing receivables not individually evaluated for impairment, and consider the others as loans individually evaluated for impairment. After the Company and its subsidiaries have set aside provision for those non-performing assets, the Company and its subsidiaries continue to monitor at least on a quarterly basis the quality of any underlying collateral, the status of management of the debtors and other important factors in order to report to management and develop additional provision as necessary.

The following table provides information about the non-accrual and past-due financing receivables as of March 31, 2019 and December 31, 2019:

	March 31, 2019
			Millions of yen
			Past-due financing receivables
Portfolio segment	Class		30-89 days past-due		90 days or more past-due		Total past-due		Total financing receivables		Non-accrual
Consumer borrowers			¥	5,783	¥	15,647	¥	21,430	¥	1,906,022	¥	15,647
		Housing loans		1,721		2,654		4,375		1,598,827		2,654
		Card loans		548		2,127		2,675		245,139		2,127
		Other		3,514		10,866		14,380		62,056		10,866
Corporate borrowers				4,960		13,753		18,713		1,300,921		27,979
Non-recourse loans		Japan		0		0		0		49,113		0
		The Americas		2,925		2,457		5,382		49,915		3,818
Other		Real estate companies		2		552		554		355,049		1,392
		Entertainment companies		0		663		663		66,047		663
		Other		2,033		10,081		12,114		780,797		22,106
Finance leases				7,181		14,807		21,988		1,155,632		14,807
		Japan		679		6,158		6,837		793,239		6,158
		Overseas		6,502		8,649		15,151		362,393		8,649
Total			¥	17,924	¥	44,207	¥	62,131	¥	4,362,575	¥	58,433
	December 31, 2019
			Millions of yen
			Past-due financing receivables
Portfolio segment	Class		30-89 days past-due		90 days      or more past-due		Total        past-due		Total financing receivables		Non-accrual
Consumer borrowers			¥	5,817	¥	15,413	¥	21,230	¥	2,126,058	¥	15,413
		Housing loans		1,826		2,657		4,483		1,840,644		2,657
		Card loans		515		1,946		2,461		226,221		1,946
		Other		3,476		10,810		14,286		59,193		10,810
Corporate borrowers				3,866		28,038		31,904		1,394,432		37,913
Non-recourse loans		Japan		0		0		0		72,597		0
		The Americas		142		2,516		2,658		70,506		2,516
Other		Real estate companies		74		14,263		14,337		386,716		14,368
		Entertainment companies		0		24		24		62,954		24
		Other		3,650		11,235		14,885		801,659		21,005
Finance leases				6,413		15,495		21,908		1,142,339		15,495
		Japan		700		6,084		6,784		771,697		6,084
		Overseas		5,713		9,411		15,124		370,642		9,411
Total			¥	16,096	¥	58,946	¥	75,042	¥	4,662,829	¥	68,821

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 financing receivables when principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms.

– 72 –

The Company and its subsidiaries suspend accruing revenues on past-due installment loans and finance leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return to accrual status non-accrual loans and lease receivables when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and lease receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtor’s creditworthiness, such as the debtor’s business characteristics and financial conditions as well as relevant economic conditions and trends.

The following table provides information about troubled debt restructurings of financing receivables that occurred during the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	9,873	¥	6,876
	Housing loans		61		30
	Card loans		1,624		1,055
	Other		8,188		5,791
Corporate borrowers			6,002		6,001
Other	Other		6,002		6,001
Total		¥	15,875	¥	12,877
	Nine months ended December 31, 2019
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	9,187	¥	6,935
	Housing loans		16		14
	Card loans		1,422		1,052
	Other		7,749		5,869
Corporate borrowers			4,196		4,196
Non-recourse loans	The Americas		340		340
Other	Other		3,856		3,856
Total		¥	13,383	¥	11,131

– 73 –

	Three months ended December 31, 2018
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	3,961	¥	2,832
	Housing loans		10		5
	Card loans		552		363
	Other		3,399		2,464
Corporate borrowers			2,141		2,141
Other	Other		2,141		2,141
Total		¥	6,102	¥	4,973
	Three months ended December 31, 2019
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	3,079	¥	2,301
	Card loans		477		364
	Other		2,602		1,937
Corporate borrowers			1,749		1,749
Non-recourse loans	The Americas		340		340
Other	Other		1,409		1,409
Total		¥	4,828	¥	4,050

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 loans, the Company and its subsidiaries offer concessions including an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. For the debtors of all financing receivables other than non-recourse loans, the Company and its subsidiaries offer concessions such as a reduction of the loan principal, a temporary reduction in the interest payments, or an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. In addition, the Company and its subsidiaries may acquire collateral assets from the debtors in troubled debt restructurings to satisfy fully or partially the loan principal or past due interest.

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.

– 74 –

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from December 31, 2018 and for which there was a payment default during the nine and three months ended December 31, 2018:

	Nine months ended December 31, 2018
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	1,380
		Card loans		23
		Other		1,357
Total			¥	1,380
	Three months ended December 31, 2018
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	933
		Card loans		20
		Other		913
Total			¥	933

– 75 –

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from December 31, 2019 and for which there was a payment default during the nine and three months ended December 31, 2019:

	Nine months ended December 31, 2019
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	1,497
		Card loans		7
		Other		1,490
Consumer borrowers				127
Other		Other		127
Total			¥	1,624
	Three months ended December 31, 2019
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	444
		Card loans		4
		Other		440
Corporate borrowers				127
Other		Other		127
Total			¥	571

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 90 days or more in accordance with the modified terms.

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, 2019 and December 31, 2019, 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 ¥251 million and ¥323 million as of March 31, 2019 and December 31, 2019, respectively.

– 76 –

8. Investment in Securities

Investment in securities as of March 31, 2019 and December 31, 2019 consists of the following:

	Millions of yen
	March 31, 2019		December 31, 2019
Equity securities *	¥	549,047	¥	537,004
Trading debt securities		1,564		1,371
Available-for-sale debt securities		1,264,244		1,576,349
Held-to-maturity debt securities		114,061		113,880
Total	¥	1,928,916	¥	2,228,604

* The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥324,220 million and ¥306,524 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥75,923 million and ¥70,556 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds elected for the fair value option included in equity securities were ¥5,811 million and ¥5,997 million as of March 31, 2019 and December 31, 2019, respectively.

Gains and losses realized from the sale of equity securities and net unrealized holding gains (losses) on equity securities are included in gains on investment securities and dividends, life insurance premiums and related investment income, and write-downs of securities. For further information, see Note 17 “Life Insurance Operations.” Net unrealized holding gains (losses) on equity securities held as of December 31, 2018 were losses of ¥4,944 million and ¥7,547 million, respectively, for the nine and three months ended December 31, 2018. Net unrealized holding gains (losses) on equity securities held as of December 31, 2019 were gains of ¥34,529 million and ¥22,522 million, respectively, for the nine and three months ended December 31, 2019, which did not include net unrealized holding gains (losses) on the both investment funds above mentioned.

Equity securities include non-marketable equity securities and preferred equity securities, etc. elected for the measurement alternative. Upward or downward adjustments resulting from observable price changes are included in gains on investment securities and dividends and life insurance premiums and related investment income. Impairments are included in write-downs of securities. The following tables provide information about impairment and upward or downward adjustments resulting from observable price changes as of March 31, 2019 and December 31, 2019, and for the nine and three months ended December 31, 2018 and 2019.

	Millions of yen
	March 31, 2019							Nine months ended December 31, 2018					Three months ended December 31, 2018
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments		Upward adjustments
Equity securities measured using the measurement alternative	¥	35,431	¥	(1,688	)	¥	18	¥	(151	)	¥	0	¥	0	¥	0
	Millions of yen
	December 31, 2019							Nine months ended December 31, 2019					Three months ended December 31, 2019
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments		Upward adjustments
Equity securities measured using the measurement alternative	¥	37,137	¥	(1,495	)	¥	61	¥	(38	)	¥	43	¥	0	¥	5

– 77 –

Gains and losses realized from the sale of trading debt securities and net unrealized holding gains (losses) on trading debt securities are included in gains on investment securities and dividends. Net unrealized holding gains (losses) on trading debt securities held as of December 31, 2018 were gains of ¥102 million and ¥123 million, respectively, for the nine and three months ended December 31, 2018. Net unrealized holding gains (losses) on trading debt securities held as of December 31, 2019 were losses of ¥7 million and ¥74 million, respectively, for the nine and three months ended December 31, 2019.

Certain subsidiaries elected the fair value option for certain investments in investment funds included in equity 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, 2019 and December 31, 2019, these investments were fair valued at ¥5,811 million and ¥5,997 million, respectively.

A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale debt securities to mitigate volatility in the consolidated statements of income caused by the difference in recognition of gain or loss that would otherwise exist between the foreign government bond securities and the derivatives used to reduce the risks of fluctuations in market interest rates and exchange rates on these foreign government bond securities. As of March 31, 2019 and December 31, 2019, these investments were fair valued at ¥420 million and ¥790 million, respectively.

A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale debt securities to mitigate volatility in the consolidated statements of income caused by the difference in recognition of gain or loss that would otherwise exist between the foreign corporate debt securities and the derivatives used to reduce the risks of fluctuations in market interest rates and exchange rates on these foreign corporate debt securities. As of March 31, 2019 and December 31, 2019, these investments were fair valued at ¥21,136 million and ¥18,796 million, respectively.

– 78 –

The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale debt securities and held-to-maturity debt securities in each major security type as of March 31, 2019 and December 31, 2019 are as follows:

March 31, 2019

	Millions of yen
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	416,218	¥	20,133	¥	(5,500	)	¥	430,851
Japanese prefectural and foreign municipal bond securities		189,792		3,749		(236	)		193,305
Corporate debt securities		485,156		5,205		(2,364	)		487,997
CMBS and RMBS in the Americas		59,954		2,566		(1,041	)		61,479
Other asset-backed securities and debt securities		88,620		3,381		(1,389	)		90,612
		1,239,740		35,034		(10,530	)		1,264,244
Held-to-maturity debt securities:
Japanese government bond securities and other		114,061		30,265		0			144,326
	¥	1,353,801	¥	65,299	¥	(10,530	)	¥	1,408,570

December 31, 2019

	Millions of yen
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	578,705	¥	21,685	¥	(9,155	)	¥	591,235
Japanese prefectural and foreign municipal bond securities		234,273		4,639		(624	)		238,288
Corporate debt securities		588,853		9,187		(3,285	)		594,755
CMBS and RMBS in the Americas		56,764		2,538		(1,340	)		57,962
Other asset-backed securities and debt securities		92,338		3,369		(1,598	)		94,109
		1,550,933		41,418		(16,002	)		1,576,349
Held-to-maturity debt securities:
Japanese government bond securities and other		113,880		30,642		0			144,522
	¥	1,664,813	¥	72,060	¥	(16,002	)	¥	1,720,871

– 79 –

The following tables provide information about available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2019 and December 31, 2019, respectively:

March 31, 2019

	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 debt securities:
Japanese and foreign government bond securities	¥	51,551	¥	(1,119	)	¥	98,830	¥	(4,381	)	¥	150,381	¥	(5,500	)
Japanese prefectural and foreign municipal bond securities		1,329		(35	)		4,510		(201	)		5,839		(236	)
Corporate debt securities		9,156		(18	)		68,924		(2,346	)		78,080		(2,364	)
CMBS and RMBS in the Americas		10,194		(362	)		7,147		(679	)		17,341		(1,041	)
Other asset-backed securities and debt securities		10,253		(411	)		28,748		(978	)		39,001		(1,389	)
	¥	82,483	¥	(1,945	)	¥	208,159	¥	(8,585	)	¥	290,642	¥	(10,530	)
December 31, 2019
	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 debt securities:
Japanese and foreign government bond securities	¥	86,920	¥	(2,228	)	¥	153,775	¥	(6,927	)	¥	240,695	¥	(9,155	)
Japanese prefectural and foreign municipal bond securities		71,088		(623	)		220		(1	)		71,308		(624	)
Corporate debt securities		152,919		(1,351	)		23,731		(1,934	)		176,650		(3,285	)
CMBS and RMBS in the Americas		8,700		(273	)		8,715		(1,067	)		17,415		(1,340	)
Other asset-backed securities and debt securities		13,573		(254	)		26,723		(1,344	)		40,296		(1,598	)
	¥	333,200	¥	(4,729	)	¥	213,164	¥	(11,273	)	¥	546,364	¥	(16,002	)

The number of investment securities that were in an unrealized loss position as of March 31, 2019 and December 31, 2019 were 199 and 390, respectively. The gross unrealized losses on these debt 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 Japanese and foreign government bond securities and corporate debt securities in Japan and overseas.

– 80 –

The unrealized loss associated with government bond securities and corporate debt securities are primarily due to changes in the market interest rates, currency exchange rates 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 December 31, 2019.

The other-than-temporary impairment losses recognized in other comprehensive income (loss) and earnings for the nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Total other-than-temporary impairment losses	¥	806		¥	0
Portion of loss recognized in other comprehensive income (before taxes)		(136	)		0
Net impairment losses recognized in earnings	¥	670		¥	0
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Total other-than-temporary impairment losses	¥	113		¥	0
Portion of loss recognized in other comprehensive income (before taxes)		0			0
Net impairment losses recognized in earnings	¥	113		¥	0
For debt securities held as of December 31, 2018 and 2019, roll-forwards of the amount of accumulated other-than-temporary impairments related to credit losses for the nine and three months ended December 31, 2018 and 2019 are as follows. The amount mainly consists of CMBS and RMBS in the Americas and foreign municipal bond securities:
	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Beginning	¥	1,021		¥	2,102
Addition during the period:
Credit loss for which an other-than-temporary impairment was not previously recognized		551			0
Reduction during the period:
For securities sold or redeemed		(22	)		0
Ending	¥	1,550		¥	2,102
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Beginning	¥	1,550		¥	2,102
Ending	¥	1,550		¥	2,102

In addition, the non-credit loss component on the other-than-temporary impaired debt securities above mentioned is recognized in other comprehensive income (loss), net of applicable income taxes. These impairments included the amount of unrealized gains or losses for the changes in fair value of the debt securities after recognition of other-than-temporary impairments in earnings. Unrealized gains and unrealized losses recorded in accumulated other comprehensive income (loss) on these debt securities as of March 31, 2019 and December 31, 2019 were not material.

– 81 –

9. Transfer of Financial Assets

The Company and its subsidiaries have securitized and transferred financial assets such as installment loans (commercial mortgage loans, housing loans and other).

In the securitization process, these financial assets are transferred to SPEs 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 have continuing involvement with transferred financial assets by retaining the servicing arrangements and the 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. SPEs used in securitization transactions have been consolidated if the Company and its subsidiaries are the primary beneficiary of the SPEs.

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.

For the nine months ended December 31, 2018 and 2019, the amount of installment loans that has been derecognized due to new securitization and transfer of loans were ¥370,946 million and ¥431,379 million, respectively. For the nine months ended December 31, 2018 and 2019, gains (losses) from the securitization and transfer of loans were ¥12,122 million and ¥13,378 million, respectively, which is included in finance revenues in the consolidated statements of income.

For the three months ended December 31, 2018 and 2019, the amount of installment loans that has been derecognized due to new securitization and transfer of loans were ¥152,310 million and ¥154,890 million, respectively. For the three months ended December 31, 2018 and 2019, gains (losses) from the securitization and transfer of loans were ¥4,110 million and ¥3,675 million, respectively, which is included in finance revenues in the consolidated statements of income.

– 82 –

A certain subsidiary originates and sells loans into the secondary market while retaining the obligation to service those loans. In addition, the subsidiary undertakes obligations to service loans originated by others. The servicing assets related to those servicing activities are included in other assets in the consolidated balance sheets and roll-forwards of the amount of the servicing assets for the nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019			Three months ended December 31, 2018			Three months ended December 31, 2019
Beginning balance	¥	28,756		¥	31,572		¥	31,068		¥	32,364
Increase mainly from loans sold with servicing retained		4,696			6,354			2,038			2,253
Decrease mainly from amortization		(3,526	)		(3,764	)		(1,193	)		(1,339	)
Increase (Decrease) from the effects of changes in foreign exchange rates		1,270			(388	)		(717	)		496
Ending balance	¥	31,196		¥	33,774		¥	31,196		¥	33,774
The fair value of the servicing assets as of March 31, 2019 and December 31, 2019 are as follows:
							Millions of yen
							March 31, 2019			December 31, 2019
Beginning balance							¥	35,681		¥	39,846
Ending balance							¥	39,846		¥	42,028

– 83 –

10. Variable Interest Entities

The Company and its subsidiaries use 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, “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; and

• 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 factors 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; and

• 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; and

• providing liquidity and other financial support.

The Company and its subsidiaries do not have the power to direct activities of a VIE that most significantly impact the VIE’s economic performance if that power is shared among multiple unrelated parties, and accordingly do not consolidate such VIE.

– 84 –

Information about VIEs (consolidated and non-consolidated) for the Company and its subsidiaries are as follows:

1. Consolidated VIEs

March 31, 2019

	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		2,014		0		0		0
(c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business		94,404		31,208		49,587		0
(d) VIEs for corporate rehabilitation support business		564		30		0		0
(e) VIEs for investment in securities		72,347		121		42		0
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		228,859		175,115		228,859		0
(g) VIEs for securitization of loan receivable originated by third parties		2,264		2,729		2,264		0
(h) VIEs for power generation projects		282,739		195,915		242,937		54,533
(i) Other VIEs		149,333		45,082		120,312		0
Total	¥	832,524	¥	450,200	¥	644,001	¥	54,533
December 31, 2019
	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		2,485		1		0		0
(c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business		89,455		16,597		18,204		0
(d) VIEs for corporate rehabilitation support business		750		262		0		0
(e) VIEs for investment in securities		64,121		44		0		0
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		221,885		129,068		221,885		0
(g) VIEs for securitization of loan receivable originated by third parties		2,495		3,193		2,495		0
(h) VIEs for power generation projects		397,330		285,406		356,841		42,015
(i) Other VIEs		170,143		71,216		150,321		0
Total	¥	948,664	¥	505,787	¥	749,746	¥	42,015

*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.

– 85 –

2. Non-consolidated VIEs

March 31, 2019

	Millions of yen
			Carrying amount of the variable interests in the VIEs held by the  Company and its subsidiaries				Maximum exposure to loss *
Types of VIEs	Total assets		Non-recourse loans		Investments
(a) VIEs for liquidating customer assets	¥	8,524	¥	0	¥	991	¥	991
(b) VIEs for acquisition of real estate and real estate development projects for customers		34,872		0		3,426		3,426
(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		3,493,461		0		60,329		81,337
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		0		0		0		0
(g) VIEs for securitization of loan receivable originated by third parties		982,353		0		21,768		21,776
(h) VIEs for power generation projects		26,495		0		1,783		1,783
(i) Other VIEs		391,602		3,200		32,569		37,947
Total	¥	4,937,307	¥	3,200	¥	120,866	¥	147,260
December 31, 2019
	Millions of yen
			Carrying amount of the variable interests in the VIEs held by the Company and its subsidiaries				Maximum exposure to loss *
Types of VIEs	Total assets		Non-recourse loans		Investments
(a) VIEs for liquidating customer assets	¥	8,452	¥	0	¥	991	¥	991
(b) VIEs for acquisition of real estate and real estate development projects for customers		36,619		0		2,527		2,527
(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		3,723,534		0		56,979		74,001
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		0		0		0		0
(g) VIEs for securitization of loan receivable originated by third parties		1,128,788		0		17,227		17,233
(h) VIEs for power generation projects		25,264		0		1,709		1,709
(i) Other VIEs		195,637		2,929		11,449		14,495
Total	¥	5,118,294	¥	2,929	¥	90,882	¥	110,956

* 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.

– 86 –

(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 loans from financial institutions and have an equity investment made by the customer. By using cash flows from the liquidated assets, these VIEs repay the loan and pay dividends to equity investors if sufficient funds exist.

Variable interests of non-consolidated VIEs, which the Company has, are mainly included in other assets in the Company’s consolidated balance sheets.

(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 loans to such VIEs and hold specified bonds issued by them and/or make investments in them. The Company and its subsidiaries have consolidated certain VIEs because the Company or its subsidiary effectively controls the VIEs by acting as the asset manager of the VIEs.

In the Company’s consolidated balance sheets, assets of consolidated VIEs are mainly included in cash and cash equivalents and investment in affiliates.

Variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, are mainly included in investment in securities, investment in affiliates and other assets in the Company’s consolidated balance sheets. The Company and its subsidiaries concluded that the VIEs are not consolidated because the power to direct these VIEs is held by unrelated parties. In some cases, the Company and its subsidiaries concluded that the VIEs are not consolidated because the power to direct these VIEs is shared among multiple unrelated parties.

(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 loans from financial institutions and simplify the administration activities necessary for the real estate.

The Company and its subsidiaries consolidate such VIEs even though the Company and its subsidiaries may not have voting rights if substantially all of such VIEs’ subordinated interests are issued to the Company and its subsidiaries, and therefore the VIEs are controlled by and for the benefit of the Company and its subsidiaries.

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, investment in securities, property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in long-term debt and other liabilities.

(d) VIEs for corporate rehabilitation support business

Financial institutions, the Company and its subsidiaries 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 subsidiaries consolidated such VIEs since the Company and its subsidiaries 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.

– 87 –

(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 other liabilities.

Variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, are included in investment in securities in the Company’s consolidated balance sheets. The Company and its subsidiaries have commitment agreements by which the Company and its subsidiaries may be required to make additional investment in certain such non-consolidated VIEs.

(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable

The Company and its subsidiaries use VIEs to securitize financial assets such as finance lease 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 mainly included in restricted cash, net investment in leases and installment loans, and liabilities of those consolidated VIEs are mainly 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 VIEs, which the Company and its subsidiaries have, are included in investment in securities in the Company’s consolidated balance sheets. The Company has a commitment agreement by which the Company may be required to make additional investment in certain such non-consolidated VIEs.

– 88 –

(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, construct solar power stations, thermal power stations and wind power stations 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 cash and cash equivalents, restricted cash, property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in trade notes, accounts and other payable, long-term debt, and other liabilities. The Company and certain subsidiaries have commitment agreements by which the Company and the subsidiaries may be required to make additional investment or execute loans in certain such consolidated VIEs.

Variable interests of non-consolidated VIEs, which the Company has, are included in investment in affiliates in the Company’s consolidated balance sheets.

(i) Other VIEs

The Company and its subsidiaries are involved with other types of VIEs for various purposes. Consolidated and non-consolidated VIEs of this category are mainly kumiai structures. In addition, certain subsidiaries have consolidated VIEs that are not included in the categories (a) through (h) above, because the subsidiaries hold the subordinated portion of the VIEs and the VIEs are effectively controlled by the subsidiaries.

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 loan from one or more financial institutions. The kumiai investors (and any lenders to the kumiai structure) retain all of the economic risks and rewards in connection with purchasing and leasing activities of the kumiai structure, and all related gains or losses are recorded on the financial statements of the investors in the kumiai. The Company and its subsidiaries are responsible for the arrangement and marketing of these products and may act as servicer or administrator in kumiai transactions. The fee income for the arrangement and administration of these transactions is recognized in the Company’s consolidated statements of income. In some cases, the Company and its subsidiaries make investments in the kumiai or its related SPE, and these VIEs are consolidated because the Company and its subsidiaries have a responsibility to absorb any significant potential loss through the investments and have the power to direct the activities that most significantly impact their economic performance. In other cases, the Company and its subsidiaries are not considered to be the primary beneficiary of the VIEs or kumiais because the Company and its subsidiaries did not make significant investments or guarantee or otherwise undertake any significant financial commitments or exposure with respect to the kumiai or its related SPE.

The Company may use VIEs for financing. The Company transfers its own held assets to SPEs, which borrow non-recourse loan from financial institutions and effectively pledge such assets as collateral. The Company continually holds subordinated interests in the SPEs and performs administrative work of such assets. The Company consolidates such SPEs because the Company has a right to direct the activities of them that most significantly impact their economic performance by setting up the scheme and performing administrative work of the assets and has the obligation to absorb expected losses of them by holding the subordinated interests.

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 and other liabilities.

Variable interests in non-consolidated VIEs, which the Company and its subsidiaries have, non-recourse loans are included in installment loans, and investments are mainly included in investment in securities and investment in affiliates in the Company’s consolidated balance sheets. Certain subsidiaries have commitment agreements by which the Company and its subsidiaries may be required to make additional investment in certain such non-consolidated VIEs.

– 89 –

11. Investment in Affiliates

Investment in affiliates at March 31, 2019 and December 31, 2019 consists of the following:

	Millions of yen
	March 31, 2019			December 31, 2019
Shares	¥	789,638		¥	770,274
Loans and others		53,122			51,709
	¥	842,760		¥	821,983
12.  Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests for the nine months ended December 31, 2018 and 2019 are as follows:
	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Beginning balance	¥	7,420		¥	9,780
Comprehensive income
Net income		434			359
Other comprehensive income (loss)
Net change of foreign currency translation adjustments		326			(130	)
Total other comprehensive income (loss)		326			(130	)
Comprehensive income		760			229
Dividends		(501	)		(289	)
Ending balance	¥	7,679		¥	9,720

– 90 –

13. Accumulated Other Comprehensive Income (Loss)

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the nine months ended December 31, 2018 and 2019, are as follows:

	Nine months ended December 31, 2018
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at March 31, 2018	¥	10,465		¥	0		¥	(20,487	)	¥	(31,806	)	¥	(3,738	)	¥	(45,566	)
Cumulative effect of adopting Accounting Standards Update 2016-01		(3,250	)		351			0			0			0			(2,899	)
Balance at April 1, 2018		7,215			351			(20,487	)		(31,806	)		(3,738	)		(48,465	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(256) million		497															497
Reclassification adjustment included in net income, net of tax of ¥731 million		(2,332	)														(2,332	)
Debt valuation adjustments, net of tax of ¥(127) million					322												322
Reclassification adjustment included in net income, net of tax of ¥8 million					(19	)											(19	)
Defined benefit pension plans, net of tax of ¥(71) million								85									85
Reclassification adjustment included in net income, net of tax of ¥32 million								(80	)								(80	)
Foreign currency translation adjustments, net of tax of ¥155 million											(5,130	)					(5,130	)
Reclassification adjustment included in net income, net of tax of ¥(1) million											1						1
Net unrealized gains (losses) on derivative instruments, net of tax of ¥174 million														(526	)		(526	)
Reclassification adjustment included in net income, net of tax of ¥(132) million														462			462
Total other comprehensive income (loss)		(1,835	)		303			5			(5,129	)		(64	)		(6,720	)
Transaction with noncontrolling interests		0			0			(52	)		12			0			(40	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		0			0			1			(102	)		13			(88	)
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0			0			326			0			326
Balance at December 31, 2018	¥	5,380		¥	654		¥	(20,535	)	¥	(37,147	)	¥	(3,815	)	¥	(55,463	)

– 91 –

	Nine months ended December 31, 2019
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at March 31, 2019	¥	17,389		¥	582		¥	(27,902	)	¥	(43,558	)	¥	(7,854	)	¥	(61,343	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(2,053) million		5,472															5,472
Reclassification adjustment included in net income, net of tax of ¥1,700 million		(4,195	)														(4,195	)
Debt valuation adjustments, net of tax of ¥(65) million					168												168
Reclassification adjustment included in net income, net of tax of ¥12 million					(32	)											(32	)
Defined benefit pension plans, net of tax of ¥(32) million								129									129
Reclassification adjustment included in net income, net of tax of ¥(142) million								363									363
Foreign currency translation adjustments, net of tax of ¥(823) million											(18,801	)					(18,801	)
Reclassification adjustment included in net income, net of tax of ¥(1,058) million											2,216						2,216
Net unrealized gains (losses) on derivative instruments, net of tax of ¥996 million														(4,444	)		(4,444	)
Reclassification adjustment included in net income, net of tax of ¥(323) million														884			884
Total other comprehensive income (loss)		1,277			136			492			(16,585	)		(3,560	)		(18,240	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		(6	)		0			(1	)		(1,541	)		1			(1,547	)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests		0			0			0			(130	)		0			(130	)
Balance at December 31, 2019	¥	18,672		¥	718		¥	(27,409	)	¥	(58,472	)	¥	(11,415	)	¥	(77,906	)

– 92 –

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the three months ended December 31, 2018 and 2019, are as follows:

	Three months ended December 31, 2018
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at September 30, 2018	¥	5,609		¥	270		¥	(20,688	)	¥	(17,802	)	¥	(3,085	)	¥	(35,696	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(114) million		(391	)														(391	)
Reclassification adjustment included in net income, net of tax of ¥(118) million		162															162
Debt valuation adjustments, net of tax of ¥(153) million					391												391
Reclassification adjustment included in net income, net of tax of ¥3 million					(7	)											(7	)
Defined benefit pension plans, net of tax of ¥(94) million								232									232
Reclassification adjustment included in net income, net of tax of ¥11 million								(26	)								(26	)
Foreign currency translation adjustments, net of tax of ¥(8,709) million											(19,918	)					(19,918	)
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 ¥212 million														(487	)		(487	)
Reclassification adjustment included in net income, net of tax of ¥86 million														(267	)		(267	)
Total other comprehensive income (loss)		(229	)		384			206			(19,918	)		(754	)		(20,311	)
Transaction with noncontrolling interests		0			0			(50	)		11			0			(39	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		0			0			3			(386	)		(24	)		(407	)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests		0			0			0			(176	)		0			(176	)
Balance at December 31, 2018	¥	5,380		¥	654		¥	(20,535	)	¥	(37,147	)	¥	(3,815	)	¥	(55,463	)

– 93 –

	Three months ended December 31, 2019
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at September 30, 2019	¥	22,300		¥	786		¥	(27,116	)	¥	(79,587	)	¥	(13,511	)	¥	(97,128	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥1,116 million		(2,838	)														(2,838	)
Reclassification adjustment included in net income, net of tax of ¥313 million		(789	)														(789	)
Debt valuation adjustments, net of tax of ¥21 million					(54	)											(54	)
Reclassification adjustment included in net income, net of tax of ¥5 million					(14	)											(14	)
Defined benefit pension plans, net of tax of ¥151 million								(406	)								(406	)
Reclassification adjustment included in net income, net of tax of ¥(40) million								112									112
Foreign currency translation adjustments, net of tax of ¥6,858 million											20,802						20,802
Reclassification adjustment included in net income, net of tax of ¥(348) million											658						658
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(584) million														1,877			1,877
Reclassification adjustment included in net income, net of tax of ¥(109) million														291			291
Total other comprehensive income (loss)		(3,627	)		(68	)		(294	)		21,460			2,168			19,639
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		1			0			(1	)		200			72			272
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0			0			145			0			145
Balance at December 31, 2019	¥	18,672		¥	718		¥	(27,409	)	¥	(58,472	)	¥	(11,415	)	¥	(77,906	)

– 94 –

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the nine months ended December 31, 2018 and 2019 are as follows:

	Nine months ended December 31, 2018
Details about accumulated other comprehensive income components	Reclassification adjustment included in net income
	Millions of yen			Consolidated statements of income caption
Net unrealized gains (losses) on investment in securities
Sales of debt securities	¥	3,211		Gains on investment securities and dividends
Sales of debt securities		1,545		Life insurance premiums and related investment income
Amortization of debt securities		(895	)	Finance revenues
Amortization of debt securities		(128	)	Life insurance premiums and related investment income
Others		(670	)	Write-downs of securities and other
		3,063		Total before income tax
		(731	)	Income tax (expense) or benefit
	¥	2,332		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	27		Life insurance costs
		27		Total before income tax
		(8	)	Income tax (expense) or benefit
	¥	19		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	807		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(692	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(3	)	See Note 16 “Pension Plans”
		112		Total before income tax
		(32	)	Income tax (expense) or benefit
	¥	80		Net of tax
Foreign currency translation adjustments
Sales or liquidation	¥	(2	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(2	)	Total before income tax
		1		Income tax (expense) or benefit
	¥	(1	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	141		Finance revenues/Interest expense
Foreign exchange contracts		(220	)	Other (income) and expense, net
Foreign currency swap agreements		(515	)	Finance revenues/Interest expense/Other (income) and expense, net
		(594	)	Total before income tax
		132		Income tax (expense) or benefit
	¥	(462	)	Net of tax

– 95 –

	Nine months ended December 31, 2019
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 debt securities	¥	2,159		Gains on investment securities and dividends
Sales of debt securities		5,133		Life insurance premiums and related investment income
Amortization of debt securities		(784	)	Finance revenues
Amortization of debt securities		(613	)	Life insurance premiums and related investment income
		5,895		Total before income tax
		(1,700	)	Income tax (expense) or benefit
	¥	4,195		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	44		Life insurance costs
		44		Total before income tax
		(12	)	Income tax (expense) or benefit
	¥	32		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	730		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(1,233	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(2	)	See Note 16 “Pension Plans”
		(505	)	Total before income tax
		142		Income tax (expense) or benefit
	¥	(363	)	Net of tax
Foreign currency translation adjustments
Foreign exchange contracts	¥	(1,875	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense/Other (income) and expense, net
Sales or liquidation		(1,399	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(3,274	)	Total before income tax
		1,058		Income tax (expense) or benefit
	¥	(2,216	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(584	)	Interest expense
Foreign exchange contracts		(255	)	Interest expense
Foreign currency swap agreements		(368	)	Interest expense/Other (income) and expense, net
		(1,207	)	Total before income tax
		323		Income tax (expense) or benefit
	¥	(884	)	Net of tax

– 96 –

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the three months ended December 31, 2018 and 2019 are as follows:

	Three months ended December 31, 2018
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 debt securities	¥	88		Gains on investment securities and dividends
Sales of debt securities		0		Life insurance premiums and related investment income
Amortization of debt securities		(241	)	Finance revenues
Amortization of debt securities		(14	)	Life insurance premiums and related investment income
Others		(113	)	Write-downs of securities and other
		(280	)	Total before income tax
		118		Income tax (expense) or benefit
	¥	(162	)	Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	10		Life insurance costs
		10		Total before income tax
		(3	)	Income tax (expense) or benefit
	¥	7		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	269		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(231	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(1	)	See Note 16 “Pension Plans”
		37		Total before income tax
		(11	)	Income tax (expense) or benefit
	¥	26		Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	4		Finance revenues/Interest expense
Foreign exchange contracts		(230	)	Other (income) and expense, net
Foreign currency swap agreements		579		Finance revenues/Interest expense/Other (income) and expense, net
		353		Total before income tax
		(86	)	Income tax (expense) or benefit
	¥	267		Net of tax

– 97 –

	Three months ended December 31, 2019
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 debt securities	¥	245		Gains on investment securities and dividends
Sales of debt securities		1,578		Life insurance premiums and related investment income
Amortization of debt securities		(405	)	Finance revenues
Amortization of debt securities		(316	)	Life insurance premiums and related investment income
		1,102		Total before income tax
		(313	)	Income tax (expense) or benefit
	¥	789		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	19		Life insurance costs
		19		Total before income tax
		(5	)	Income tax (expense) or benefit
	¥	14		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	249		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(401	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(0	)	See Note 16 “Pension Plans”
		(152	)	Total before income tax
		40		Income tax (expense) or benefit
	¥	(112	)	Net of tax
Foreign currency translation adjustments
Foreign exchange contracts	¥	393		Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense/Other (income) and expense, net
Sales or liquidation		(1,399	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(1,006	)	Total before income tax
		348		Income tax (expense) or benefit
	¥	(658	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(218	)	Interest expense/Other (income) and expense, net
Foreign exchange contracts		(107	)	Interest expense
Foreign currency swap agreements		(75	)	Interest expense/Other (income) and expense, net
		(400	)	Total before income tax
		109		Income tax (expense) or benefit
	¥	(291	)	Net of tax

– 98 –

14. ORIX Corporation Shareholders’ Equity

Information about ORIX Corporation Shareholders’ Equity for the nine months ended December 31, 2018 and 2019 are as follows:

(1) Dividend payments

	Nine months ended December 31, 2018	Nine months ended December 31, 2019
Resolution	The board of directors on May 21, 2018	The board of directors on May 22, 2019
Type of shares	Common stock	Common stock
Total dividends paid	¥49,984 million	¥58,962 million
Dividend per share	¥39.00	¥46.00
Date of record for dividend	March 31, 2018	March 31, 2019
Effective date for dividend	June 5, 2018	June 3, 2019
Dividend resource	Retained earnings	Retained earnings

Resolution	The board of directors on October 26, 2018	The board of directors on October 28, 2019
Type of shares	Common stock	Common stock
Total dividends paid	¥38,453 million	¥44,862 million
Dividend per share	¥30.00	¥35.00
Date of record for dividend	September 30, 2018	September 30, 2019
Effective date for dividend	December 4, 2018	December 3, 2019
Dividend resource	Retained earnings	Retained earnings

Total dividends paid by resolution of the board of directors on May 21, 2018 include ¥64 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2018. Total dividends paid by resolution of the board of directors on May 22, 2019 include ¥83 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2019.

Total dividends paid by resolution of the board of directors on October 26, 2018 include ¥55 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2018. Total dividends paid by resolution of the board of directors on October 28, 2019 include ¥62 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2019.

(2) There were no applicable dividends for which the date of record was in the nine months ended December 31, 2018 and 2019, and for which the effective date was after December 31, 2018 and 2019.

– 99 –

15. Selling, General and Administrative Expenses

Selling, general and administrative expenses for the nine months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Personnel expenses	¥	183,872	¥	192,526
Selling expenses		56,892		53,759
Administrative expenses		75,783		86,033
Depreciation of office facilities		3,537		5,436
Total	¥	320,084	¥	337,754
Selling, general and administrative expenses for the three months ended December 31, 2018 and 2019 are as follows:
	Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Personnel expenses	¥	61,434	¥	66,736
Selling expenses		20,009		18,578
Administrative expenses		26,674		29,361
Depreciation of office facilities		1,321		1,888
Total	¥	109,438	¥	116,563

– 100 –

16. Pension Plans

The Company and certain subsidiaries have contributory and non-contributory pension plans covering substantially all of their employees. Those contributory funded pension plans include defined benefit pension plans and defined contribution pension plans. Under the plans, employees are entitled to lump-sum payments at the time of termination of their employment or pension payments. Defined benefit pension plans consist of a plan of which the amounts of such payments are determined on the basis of length of service and remuneration at the time of termination and a cash balance plan.

The Company and its subsidiaries’ funding policy is to contribute annually the amounts actuarially determined. Assets of the plans are invested primarily in debt securities and marketable equity securities.

Net periodic pension cost for the nine months ended December 31, 2018 and 2019 consists of the following:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Japanese plans:
Service cost	¥	4,144		¥	4,384
Interest cost		542			438
Expected return on plan assets		(2,042	)		(2,083	)
Amortization of prior service credit		(673	)		(615	)
Amortization of net actuarial loss		633			865
Amortization of transition obligation		0			0
Net periodic pension cost	¥	2,604		¥	2,989
	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Overseas plans:
Service cost	¥	2,433		¥	2,649
Interest cost		1,484			1,275
Expected return on plan assets		(3,292	)		(3,242	)
Amortization of prior service credit		(134	)		(115	)
Amortization of net actuarial loss		59			368
Amortization of transition obligation		3			2
Net periodic pension cost	¥	553		¥	937

Note: The components of net periodic pension cost other than the service cost component are included in personnel expenses, which is included in selling, general and administrative expenses in the consolidated statements of income.

– 101 –

Net pension cost of the plans for the three months ended December 31, 2018 and 2019 consists of the following:

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Japanese plans:
Service cost	¥	1,382		¥	1,507
Interest cost		181			151
Expected return on plan assets		(680	)		(713	)
Amortization of prior service credit		(225	)		(210	)
Amortization of net actuarial loss		211			288
Amortization of transition obligation		0			0
Net periodic pension cost	¥	869		¥	1,023
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Overseas plans:
Service cost	¥	802		¥	883
Interest cost		491			426
Expected return on plan assets		(1,090	)		(1,101	)
Amortization of prior service credit		(44	)		(39	)
Amortization of net actuarial loss		20			113
Amortization of transition obligation		1			0
Net periodic pension cost	¥	180		¥	282

Note: The components of net periodic pension cost other than the service cost component are included in personnel expenses, which is included in selling, general and administrative expenses in the consolidated statements of income.

– 102 –

17. Life Insurance Operations

Life insurance premiums and related investment income for the nine and three months ended December 31, 2018 and 2019 consist of the following:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Life insurance premiums	¥	233,134		¥	254,683
Life insurance related investment income (loss) *		(5,114	)		35,973
	¥	228,020		¥	290,656
*    Life insurance related investment income for the nine months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥23,189 million and a net unrealized holding gain of ¥24,609 million on equity securities held as of December 31, 2018 and 2019, respectively.
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Life insurance premiums	¥	79,623		¥	87,421
Life insurance related investment income (loss) *		(32,207	)		20,767
	¥	47,416		¥	108,188
*    Life insurance related investment income for the three months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥43,010 million and a net unrealized holding gain of ¥18,043 million on equity securities held as of December 31, 2018 and 2019, respectively. Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For the nine and three months ended December 31, 2018 and 2019, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows:
	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Reinsurance benefits	¥	1,891		¥	1,949
Reinsurance premiums		(4,142	)		(3,933	)
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Reinsurance benefits	¥	698		¥	774
Reinsurance premiums		(1,293	)		(1,282	)

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 nine months ended December 31, 2018 and 2019 was ¥13,238 million and ¥13,839 million, respectively. In addition, amortization charged to income for the three months ended December 31, 2018 and 2019 was ¥4,580 million and ¥4,707 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.

– 103 –

The portion of the total change in the fair value of variable annuity and variable life insurance contracts that results from a change in the instrument-specific credit risk is recognized in other comprehensive income (loss), net of applicable income taxes.

The above mentioned gains or losses relating to variable annuity and variable life insurance contracts for the nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Life insurance premiums and related investment income:
Net realized and unrealized gains or losses from investment assets	¥	(21,790	)	¥	25,962
Net gains or losses from derivative contracts:		2,496			(3,477	)
Futures		2,730			(3,292	)
Foreign exchange contracts		(316	)		(5	)
Options held		82			(180	)
Life insurance costs:
Changes in the fair value of the policy liabilities and policy account balances	¥	(81,515	)	¥	(26,992	)
Insurance costs recognized for insurance and annuity payouts as a result of insured events		62,522			39,418
Changes in the fair value of the reinsurance contracts		(2,794	)		3,230
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Life insurance premiums and related investment income:
Net realized and unrealized gains or losses from investment assets	¥	(43,844	)	¥	18,661
Net gains or losses from derivative contracts:		5,956			(2,653	)
Futures		5,051			(2,284	)
Foreign exchange contracts		219			(284	)
Options held		686			(85	)
Life insurance costs:
Changes in the fair value of the policy liabilities and policy account balances	¥	(43,098	)	¥	(3,917	)
Insurance costs recognized for insurance and annuity payouts as a result of insured events		14,851			14,304
Changes in the fair value of the reinsurance contracts		(6,681	)		2,163

– 104 –

18. 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, 2019 and December 31, 2019, the long-lived assets and liabilities associated with those assets classified as held for sale in the accompanying consolidated balance sheets are as follows.

	Millions of yen
	As of March 31, 2019		As of December 31, 2019
Investment in operating leases	¥	24,956	¥	37,875
Property under facility operations		44,473		0
Other assets		19		812

The long-lived assets classified as held for sale as of March 31, 2019 are included in Corporate Financial Services segment, Real Estate segment, Investment and Operation segment and Overseas Business segment. The long-lived assets classified as held for sale as of December 31, 2019 are included in Corporate Financial Services segment, Real Estate 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 nine months ended December 31, 2018 and 2019, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥26 million and ¥554 million, respectively, which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.

	Nine months ended December 31, 2018				Nine months ended December 31, 2019
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Write-downs due to decline in estimated future cash flows:
Commercial facilities other than office buildings	¥	16		1	¥	529		2
Others *		10		—		25		—
Total	¥	26		—	¥	554		—

* For the “Others,” the number of properties is omitted.

Losses of ¥16 million in Real Estate segment and ¥10 million in Overseas Business segment were recorded for the nine months ended December 31, 2018. Losses of ¥534 million in Overseas Business segment and ¥20 million in Real Estate segment were recorded for the nine months ended December 31, 2019.

– 105 –

For the three months ended December 31, 2018, there were no impairment losses. For the three months ended December 31, 2019, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥518 million which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.

	Three months ended December 31, 2018				Three months ended December 31, 2019
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Write-downs due to decline in estimated future cash flows:
Commercial facilities other than office buildings	¥	0		—	¥	509		1
Others *		0		—		9		—
Total	¥	0		—	¥	518		—

* For the “Others,” the number of properties is omitted.

Losses of ¥518 million in Overseas Business segment were recorded for the three months ended December 31, 2019.

– 106 –

19. Per Share Data

Reconciliation of the differences between basic and diluted earnings per share (EPS) in the nine and three months ended December 31, 2018 and 2019 is as follows:

During the nine and three months ended December 31, 2018 and 2019, there were no stock compensation which were antidilutive.

	Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Net Income attributable to ORIX Corporation shareholders	¥	236,207	¥	244,319
	Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Net Income attributable to ORIX Corporation shareholders	¥	81,157	¥	85,169
	Thousands of Shares
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Weighted-average shares		1,280,038		1,279,196
Effect of dilutive securities—
Stock compensation		1,083		1,138
Weighted-average shares for diluted EPS computation		1,281,121		1,280,334
	Thousands of Shares
	Three months ended December 31, 2018		Three months ended December 31, 2019
Weighted-average shares		1,279,962		1,278,048
Effect of dilutive securities—
Stock compensation		1,040		1,245
Weighted-average shares for diluted EPS computation		1,281,002		1,279,293
	Yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Earnings per share for net income attributable to ORIX Corporation shareholders:
Basic	¥	184.53	¥	190.99
Diluted	¥	184.38	¥	190.82
	Yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Earnings per share for net income attributable to ORIX Corporation shareholders:
Basic	¥	63.41	¥	66.64
Diluted	¥	63.35	¥	66.58

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. (1,715,210 and 1,813,193 shares for the nine months ended December 31, 2018 and 2019, 1,823,993 and 1,796,993 shares for the three months ended December 31, 2018 and 2019)

– 107 –

20. 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, 2019 and December 31, 2019.

(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 exchange contracts to minimize foreign currency exposures on bonds in foreign currencies. The Company and certain overseas subsidiaries use interest rate swap agreements to hedge interest rate exposure of the fair values of National government bonds in foreign currencies.

(c) Hedges of net investment in foreign operations

The Company uses foreign exchange contracts and borrowings and bonds denominated in foreign 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.

– 108 –

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the nine months ended December 31, 2018 is as follows.

(1) Cash flow hedges

	Gains (losses) recognized in other comprehensive income on derivative (effective portion)			Gains (losses) reclassified from 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	¥	(1,529	)	Finance revenues/Interest expense	¥	141		—	¥	0
Foreign exchange contracts		252		Other (income) and expense, net		(220	)	—		0
Foreign currency swap agreements		577		Finance revenues/Interest expense/Other (income) and expense, net		(515	)	—		0

(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	¥	(4,553	)	Finance revenues/Interest expense	¥	4,553	Finance revenues/Interest expense
Foreign exchange contracts		(3,834	)	Other (income) and expense, net		3,711	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 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	¥	2,500		Gains on sales of subsidiaries and affiliates and liquidation losses, net	¥	(115	)	—	¥	0
Borrowings and bonds in foreign currencies		(7,377	)	—		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	¥	1,013		Other (income) and expense, net
Futures		2,573		Gains on investment securities and dividends Life insurance premiums and related investment income *
Foreign exchange contracts		(2,037	)	Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net
Credit derivatives held		59		Other (income) and expense, net
Options held/written and other		(1,077	)	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 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 nine months ended December 31, 2018 (see Note 17 “Life Insurance Operations”).

– 109 –

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the nine months ended December 31, 2019 is as follows.

(1) Cash flow hedges

	Millions of yen
	Gains (losses)  recognized in other comprehensive     income on derivative			Gains (losses) reclassified  from other comprehensive income (loss) into income
				Interest expense		Other (income) and expense, net
Interest rate swap agreements	¥	(4,610	)	¥	584	¥	0
Foreign exchange contracts		(369	)		255		0
Foreign currency swap agreements		(461	)		260		108

(2) Fair value hedges

	Millions of yen
	Gains (losses) recognized in income on derivative and other					Gains (losses) recognized in income on hedged item
	Life insurance premiums  and related investment income			Other (income) and      expense, net		Life insurance premiums   and related investment income			Other (income) and     expense, net
Interest rate swap agreements	¥	(5,794	)	¥	0	¥	5,431		¥	0
Foreign exchange contracts		1,172			153		(910	)		(128	)

(3) Hedges of net investment in foreign operations

	Millions of yen
	Gains (losses) recognized in other comprehensive income on derivative and others		Gains (losses) reclassified  from other comprehensive income (loss) into income (Millions of yen)
			Gains on sales of subsidiaries and affiliates and liquidation  losses, net		Interest expense		Other (income) and expense, net
Foreign exchange contracts	¥	4,380	¥	1,594	¥	3,448	¥	21
Borrowings and bonds in foreign currencies		8,342		0		0		0
(4) Derivatives not designated as hedging instruments

	Millions of yen
	Gains (losses) recognized in income on derivative (Millions of  yen)
	Life insurance premiums and related investment income *			Interest expense		Other (income) and    expense, net
Interest rate swap agreements	¥	0		¥	5	¥	120
Futures		(3,292	)		0		2,367
Foreign exchange contracts		177			3,635		1,494
Credit derivatives held		0			0		(6	)
Options held/written and other		(180	)		0		1,202

* 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 nine months ended December 31, 2019 (see Note 17 “Life Insurance Operations”).

– 110 –

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the three months ended December 31, 2018 is as follows.

(1) Cash flow hedges

	Gains (losses) recognized in other comprehensive income on derivative (effective portion)			Gains (losses) reclassified from 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	¥	(2,252	)	Finance revenues/Interest expense	¥	4		—	¥	0
Foreign exchange contracts		9		Other (income) and expense, net		(230	)	—		0
Foreign currency swap agreements		1,544		Finance revenues/Interest expense /Other (income) and expense, net		579		—		0

(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		(5,781	)	Finance revenues/Interest expense		5,781		Finance revenues/Interest expense
Foreign exchange contracts		830		Other (income) and expense, net		(953	)	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 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	¥	4,234	—	¥	0	—	¥	0
Borrowings and bonds in foreign currencies		14,711	—		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	¥	(134	)	Other (income) and expense, net
Futures		5,257		Gains on investment securities and dividends Life insurance premiums and related investment income *
Foreign exchange contracts		5,819		Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net
Credit derivatives held		40		Other (income) and expense, net
Options held/written and other		(1,350	)	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 December 31, 2018 (see Note 17 “Life Insurance Operations”).

– 111 –

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the three months ended December 31, 2019 is as follows.

(1) Cash flow hedges

	Millions of yen
	Gains (losses) recognized in other comprehensive         income on derivative			Gains (losses) reclassified from other comprehensive income (loss) into income
				Interest expense			Other (income) and expense, net
Interest rate swap agreements	¥	2,481		¥	218		¥	0
Foreign exchange contracts		(255	)		107			0
Foreign currency swap agreements		235			(25	)		100

(2) Fair value hedges

	Millions of yen
	Gains (losses) recognized in income on derivative and other					Gains (losses) recognized in income on hedged item
	Life insurance premiums and related investment income			Other (income) and expense, net		Life insurance premiums and related investment income			Other (income) and expense, net
Interest rate swap agreements	¥	3,346		¥	0	¥	(3,299	)	¥	0
Foreign exchange contracts		(934	)		127		1,370			(98	)

(3) Hedges of net investment in foreign operations

	Millions of yen
	Gains (losses) recognized in other comprehensive income on derivative and others			Gains (losses) reclassified from other comprehensive income (loss) into income (Millions of yen)
				Gains on sales of subsidiaries and affiliates and liquidation losses, net		Interest expense		Other (income) and expense, net
Foreign exchange contracts	¥	(12,324	)	¥	1,594	¥	1,194	¥	7
Borrowings and bonds in foreign currencies		(10,477	)		0		0		0
(4) Derivatives not designated as hedging instruments

	Millions of yen
	Gains (losses) recognized in income on derivative (Millions of yen)
	Life insurance premiums and related investment income*			Interest expense		Other (income) and    expense, net
Interest rate swap agreements	¥	0		¥	2	¥	(12	)
Futures		(2,284	)		0		1,760
Foreign exchange contracts		(337	)		1,119		6,017
Credit derivatives held		0			0		10
Options held/written and other		(85	)		0		1,328

* 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 December 31, 2019 (see Note 17 “Life Insurance Operations”).

– 112 –

The effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income, pre-tax, for the nine months ended December 31, 2019 is as follows.

Fair value hedges

	Millions of yen
	Gains (losses) reclassified from other comprehensive income (loss) into income
	Life insurance premiums and related investment income
Foreign exchange contracts	¥	(1,324	)

– 113 –

The effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income, pre-tax, for the three months ended December 31, 2019 is as follows.

Fair value hedges

	Millions of yen
	Gains (losses) reclassified from other comprehensive income (loss) into income
	Life insurance premiums and related investment income
Foreign exchange contracts	¥	(904	)

The carrying amount of hedged assets and liabilities recognized in balance sheets in fair value hedges and the cumulative amount of fair value hedging adjustments included in the carrying amount at December 31, 2019 is as follows.

Assets as hedged items in fair value hedges					Liabilities as hedged items in fair value hedges
	Millions of yen					Millions of yen
Consolidated balance sheets location	Carrying amount		The cumulative amount of fair value hedging adjustments included in the carrying amount		Consolidated balance sheets location	Carrying amount		The cumulative amount of fair value hedging adjustments included in the carrying amount
Investment in Securities *	¥	318,697	¥	13,213	—	¥	0	¥	0

* Accumulated fair value hedge adjustments of ¥(1,921) million are included for hedged items for which hedge accounting has been discontinued.

– 114 –

Notional amounts of derivative instruments and other, fair values of derivative instruments and other before offsetting at March 31, 2019 and December 31, 2019 are as follows.

March 31, 2019

			Derivative assets			Derivative liabilities
	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	¥	498,874	¥	11	Other Assets	¥	17,320	Other Liabilities
Futures, foreign exchange contracts		505,909		1,888	Other Assets		3,177	Other Liabilities
Foreign currency swap agreements		65,575		1,203	Other Assets		364	Other Liabilities
Foreign currency long-term debt		641,127		0	—		0	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	¥	60,657	¥	127	Other Assets	¥	119	Other Liabilities
Options held/written and other *		556,668		11,140	Other Assets		2,809	Other Liabilities
Futures, foreign exchange contracts *		320,710		1,119	Other Assets		2,159	Other Liabilities
Credit derivatives held		262		7	Other Assets		10	Other Liabilities

* The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥34,701 million, futures contracts of ¥37,359 million and foreign exchange contracts of ¥13,171 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥206 million, ¥248 million and ¥30 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥258 million and ¥173 million at March 31, 2019, respectively.

– 115 –

December 31, 2019

			Derivative assets			Derivative liabilities
	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	¥	504,636	¥	158	Other Assets	¥	24,703	Other Liabilities
Options held/written and other		949		5	Other Assets		0	—
Futures, foreign exchange contracts		509,650		25	Other Assets		9,753	Other Liabilities
Foreign currency swap agreements		66,422		1,421	Other Assets		965	Other Liabilities
Foreign currency long-term debt		618,412		0	—		0	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	¥	7,183	¥	9	Other Assets	¥	65	Other Liabilities
Options held/written and other *		490,428		13,687	Other Assets		10,960	Other Liabilities
Futures, foreign exchange contracts *		323,990		378	Other Assets		4,742	Other Liabilities

* The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥25,225 million, futures contracts of ¥30,042 million and foreign exchange contracts of ¥9,716 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at December 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥16 million, ¥0 million and ¥6 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥34 million and ¥114 million at December 31, 2019, respectively.

– 116 –

21. Offsetting Assets and Liabilities

The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheets regarding derivative assets and liabilities as of March 31, 2019 and December 31, 2019 are as follows.

March 31, 2019

	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 consolidated balance sheets*						Net amount
								Financial instruments			Collateral received/pledged
Derivative assets	¥	15,495	¥	(1,497	)	¥	13,998	¥	(196	)	¥	0		¥	13,802
Total assets	¥	15,495	¥	(1,497	)	¥	13,998	¥	(196	)	¥	0		¥	13,802
Derivative liabilities	¥	25,958	¥	(1,497	)	¥	24,461	¥	(8,353	)	¥	(79	)	¥	16,029
Total liabilities	¥	25,958	¥	(1,497	)	¥	24,461	¥	(8,353	)	¥	(79	)	¥	16,029
December 31, 2019
	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 consolidated balance sheets*						Net amount
								Financial instruments			Collateral received/pledged
Derivative assets	¥	15,683	¥	(514	)	¥	15,169	¥	(16	)	¥	0		¥	15,153
Total assets	¥	15,683	¥	(514	)	¥	15,169	¥	(16	)	¥	0		¥	15,153
Derivative liabilities	¥	51,188	¥	(514	)	¥	50,674	¥	(14,143	)	¥	(1,313	)	¥	35,218
Total liabilities	¥	51,188	¥	(514	)	¥	50,674	¥	(14,143	)	¥	(1,313	)	¥	35,218

* The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets.

– 117 –

22. 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. The disclosures do not include net investment in leases, investment in affiliates, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts.

March 31, 2019

	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	1,161,032	¥	1,161,032	¥	1,161,032	¥	0	¥	0
Restricted cash		122,548		122,548		122,548		0		0
Installment loans (net of allowance for probable loan losses)		3,231,708		3,228,750		0		199,590		3,029,160
Equity securities *1		425,593		425,593		68,631		295,769		61,193
Trading debt securities		1,564		1,564		0		1,564		0
Available-for-sale debt securities		1,264,244		1,264,244		24,831		1,138,966		100,447
Held-to-maturity debt securities		114,061		144,326		0		120,714		23,612
Other Assets:
Time deposits		4,754		4,754		0		4,754		0
Derivative assets *2		13,998		13,998		0		0		0
Reinsurance recoverables (Investment contracts)		29,989		30,400		0		0		30,400
Liabilities:
Short-term debt	¥	309,549	¥	309,549	¥	0	¥	309,549	¥	0
Deposits		1,782,198		1,782,753		0		1,782,753		0
Policy liabilities and Policy account balances (Investment contracts)		244,497		244,653		0		0		244,653
Long-term debt		4,186,222		4,199,341		0		1,158,287		3,041,054
Other Liabilities:
Derivative liabilities *2		24,461		24,461		0		0		0

*1 The amount of ¥12,100 million of investment funds measured at net asset value per share is not included.

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

– 118 –

December 31, 2019

	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	902,312	¥	902,312	¥	902,312	¥	0	¥	0
Restricted cash		118,297		118,297		118,297		0		0
Installment loans (net of allowance for probable loan losses)		3,571,075		3,575,442		0		212,528		3,362,914
Equity securities *1		417,433		417,433		73,334		277,917		66,182
Trading debt securities		1,371		1,371		0		1,371		0
Available-for-sale debt securities		1,576,349		1,576,349		22,381		1,453,002		100,966
Held-to-maturity debt securities		113,880		144,522		0		120,150		24,372
Other Assets:
Time deposits		4,250		4,250		0		4,250		0
Derivative assets *2		15,169		15,169		0		0		0
Reinsurance recoverables (Investment contracts)		9,019		9,272		0		0		9,272
Liabilities:
Short-term debt	¥	384,132	¥	384,132	¥	0	¥	384,132	¥	0
Deposits		2,053,762		2,053,439		0		2,053,439		0
Policy liabilities and Policy account balances (Investment contracts)		217,610		217,734		0		0		217,734
Long-term debt		4,119,179		4,144,011		0		1,105,707		3,038,304
Other Liabilities:
Derivative liabilities *2		50,674		50,674		0		0		0

*1 The amount of ¥11,878 million of investment funds measured at net asset value per share is not included.

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

Input level of fair value measurement

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

– 119 –

23. Commitments, Guarantees and Contingent Liabilities

Commitments—The Company and certain subsidiaries have commitments for the purchase of equipment to be leased, having a cost of ¥210 million and ¥30 million as of March 31, 2019 and December 31, 2019, respectively.

The minimum future rentals on non-cancelable operating leases as of March 31, 2019 are as follows:

Years ending March 31,	Millions of yen
2020	¥	7,694
2021		6,647
2022		5,923
2023		5,434
2024		4,802
Thereafter		34,485
Total	¥	64,985

The Company and certain subsidiaries lease lands under fixed-term land lease agreements, which are cancelable when certain conditions are met. The future maximum lease commitment under such arrangements at March 31, 2019 totals ¥57,388 million through March 31, 2024 and ¥64,222 million thereafter.

The Company and certain subsidiaries lease office space under operating lease agreements, which are primarily cancelable, and made rental payments totaling ¥17,564 million in fiscal 2019.

Certain computer systems of the Company and certain subsidiaries have been operated and maintained under non-cancelable contracts with third-party service providers. For such services, the Company and certain subsidiaries made payments totaling ¥4,266 million and ¥5,301 million for the nine months ended December 31, 2018 and 2019, respectively, and ¥1,673 million and ¥1,787 million for the three months ended December 31, 2018 and 2019, respectively. As of March 31, 2019 and December 31, 2019, the amounts due are as follows:

	Millions of yen
	March 31, 2019		December 31, 2019
Within one year	¥	4,323	¥	3,905
More than one year		3,185		4,579
Total	¥	7,508	¥	8,484

The Company and certain subsidiaries have commitments to fund estimated construction costs and so forth to complete ongoing real estate development projects and other commitments, totaling ¥121,647 million and ¥81,982 million as of March 31, 2019 and December 31, 2019, 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 ¥375,238 million and ¥398,065 million as of March 31, 2019 and December 31, 2019, respectively.

– 120 –

Guarantees—At the inception of a guarantee, the Company and its subsidiaries recognize a liability in the consolidated balance sheets at fair value for the guarantee within the scope of ASC460 (“Guarantees”). 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, 2019 and December 31, 2019:

	March 31, 2019						December 31, 2019
	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	¥	500,499	¥	6,707		2026	¥	498,541	¥	6,045		2027
Transferred loans		175,623		1,436		2059		195,190		1,408		2060
Consumer loans		343,119		42,400		2030		342,156		42,406		2030
Housing loans		40,395		4,701		2048		11,143		4,513		2048
Other		263		1		2024		186		1		2024
Total	¥	1,059,899	¥	55,245		—	¥	1,047,216	¥	54,373		—

Guarantee of corporate loans: The Company and certain subsidiaries mainly guarantee corporate loans issued by financial institutions for customers. The Company and the subsidiaries are obliged to pay the outstanding loans when the guaranteed customers fail to pay principal and/or interest in accordance with the contract terms. In some cases, the corporate loans are secured by the guaranteed customers’ assets. Once the Company and the subsidiaries assume the guaranteed customers’ obligation, the Company and the subsidiaries obtain a right to claim the collateral assets. In other cases, certain contracts that guarantee corporate loans issued by financial institutions for customers include contracts that the amounts of performance guarantee are limited to a certain range of guarantee commissions. As of March 31, 2019 and December 31, 2019, total notional amount of the loans subject to such guarantees are ¥1,089,000 million and ¥1,099,000 million, respectively, and book value of guarantee liabilities are ¥2,559 million and ¥2,518 million, respectively. The potential future payment amounts for these guarantees are limited to a certain range of the guarantee commissions, which are less than the total notional amounts of the loans subject to these guarantees. The potential future payment amounts for the contract period are calculated from the guarantee limit which is arranged by financial institutions in advance as to contracts that the amounts of performance guarantee are unlimited to a certain range of guarantee commissions. For this reason, the potential future payment amounts for these guarantees include the amount of the guarantee which may occur in the future, which is larger than the balance of guarantee executed as of the end of fiscal year or the end of interim period. The executed guarantee balance includes defrayment by financial institutions which we bear temporarily at the time of execution, and credit risk for financial institutions until liquidation of this guarantee. Our substantial amounts of performance guarantee except credit risk for financial institutions are limited to our defrayment which is arranged by financial institutions in advance.

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 nine months ended December 31, 2019.

Guarantee of transferred loans: A subsidiary in the United States is authorized to underwrite, originate, fund, and service multi-family and seniors housing loans without prior approval from Fannie Mae under Fannie Mae’s Delegated Underwriting and Servicing program. As part of this program, Fannie Mae provides a commitment to purchase the 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 nine months ended December 31, 2019.

As of March 31, 2019 and December 31, 2019, the total outstanding principal amount of loans transferred under the Delegated Underwriting and Servicing program, for which the subsidiary guarantees to absorb some of the losses, were ¥593,062 million and ¥620,718 million, respectively.

– 121 –

Guarantee of consumer loans: A certain subsidiary guarantees consumer loans, typically card loans, issued by Japanese financial institutions. The subsidiary is obligated to pay the outstanding obligations when these loans become delinquent generally a month or more.

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 nine months ended December 31, 2019.

Guarantee of housing loans: The Company and certain subsidiaries guarantee housing loans issued by Japanese financial institutions to third party individuals. The Company and the subsidiaries are typically obliged to pay the outstanding loans when these loans become delinquent three months or more. The housing loans are usually secured by the real properties. Once the Company and the subsidiaries assume the guaranteed parties’ obligation, the Company and the subsidiaries obtain a right to claim the collateral assets.

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 nine months ended December 31, 2019.

Other guarantees: Other guarantees include the guarantees to financial institutions and the guarantees derived from collection agency agreements. Pursuant to the contracts of the guarantees to financial institutions, a certain subsidiary pays to the financial institutions when customers of the financial institutions become debtors and default on the debts. Pursuant to the agreements of the guarantees derived from collection agency agreements, the Company and certain subsidiaries collect third parties’ debt and pay the uncovered amounts.

Litigation—The Company and certain subsidiaries are involved in legal proceedings and claims in the ordinary course of business. In the opinion of management, none of such proceedings and claims will have a significant impact on the Company’s financial position or results of operations.

Collateral—Other than the assets of the consolidated VIEs pledged as collateral for financing described in Note 10 “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, 2019 and December 31, 2019:

	Millions of yen
	March 31, 2019		December 31, 2019
Lease payments, loans and investment in operating leases	¥	109,210	¥	130,832
Investment in securities		160,408		162,317
Property under facility operations		31,264		28,250
Other assets and other		28,895		22,168
Total	¥	329,777	¥	343,567

As of March 31, 2019 and December 31, 2019, debt liabilities were secured by shares of subsidiaries, which were eliminated through consolidation adjustment, of ¥33,280 million and ¥80,267 million, respectively, and debt liabilities of affiliates were secured by investment in affiliates of ¥49,125 million and ¥56,320 million, respectively. As of December 31, 2019, debt liabilities were secured by loans to subsidiaries, which were eliminated through consolidation adjustment, of ¥10,794 million. In addition, ¥46,029 million and ¥51,308 million, respectively, were pledged primarily by investment in securities for collateral deposits and deposit for real estate transaction as of March 31, 2019 and December 31, 2019.

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 any time if requested by the lenders. The Company and the subsidiaries did not receive any such requests from the lenders as of December 31, 2019.

– 122 –

24. Segment Information

Based on the nature of major products and services, customer base, and management organizations, our business are organized into six operating segments: Corporate Financial Services, Maintenance Leasing, Real Estate, Investment and Operation, Retail and Overseas Business.

The financial information by the operating segments as reported below is that which is available by the segments, and regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

Types of products and services of the six segments are as follows.

Corporate Financial Services	:	Finance and fee business
Maintenance Leasing	:	Automobile leasing and rentals, car-sharing; test and measurement instruments, and IT-related equipment rentals and leasing
Real Estate	:	Real estate development, rental and management; facility operation; real estate investment management
Investment and Operation	:	Environment and energy, private equity and concession
Retail	:	Life insurance, banking and card loan
Overseas Business	:	Asset management, aircraft- and ship-related operations, private equity and finance

In fiscal 2019, the Company had made DAIKYO a wholly-owned subsidiary, to complement their respective real estate business and to jointly aim for medium- and long-term growth as a comprehensive real estate group. Accordingly, the segment classification of DAIKYO had been shifted from Investment and Operation segment to Real Estate segment since the previous fiscal year. As a result of this change, the segment data of the previous fiscal year has been retrospectively restated.

The Company and its subsidiaries adopted the New Lease Standard on April 1, 2019. This adoption has resulted in a gross up of ROU assets of investment in operating leases and property under facility operations principally for operating leases, where the Company is the lessee, such as land leases and office and equipment leases in all of our segments except for Retail segment. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”

The following table represents the financial data for segments for the nine months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142
Segment profits		19,760		30,387		54,721		31,091		66,237		95,621		297,817
The following table represents the financial data for segments for the nine months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739
Segment profits		13,159		25,767		56,070		55,590		70,447		131,894		352,927

– 123 –

The following table represents the financial data for segments for the three months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262
Segment profits		2,972		9,804		10,557		6,201		17,062		27,905		74,501
The following table represents the financial data for segments for the three months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653
Segment profits		4,008		9,142		9,892		27,203		27,262		45,031		122,538
The following table presents the financial data on segment assets for segments as of March 31, 2019 and December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
March 31, 2019	¥	959,725	¥	873,775	¥	720,221	¥	733,612	¥	3,571,437	¥	3,138,928	¥	9,997,698
December 31, 2019		1,000,148		900,943		756,092		808,466		4,110,336		3,283,169		10,859,154

The accounting policies for segment financial data is generally the same as described in Note 2 “Significant Accounting and Reporting Policies”, except for the treatments on tax expenses, net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests. Besides, net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests are not included in segment profits or losses because the segment information is based on profits or losses (pre-tax) attributable to ORIX Corporation Shareholders. Tax expenses are not included in segment profit or loss because the segment performance is assessed based on net income before taxes. The net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests, which are recognized after-tax in the consolidated financial statements, are adjusted to the pre-tax basis. Most of the selling, general and administrative expenses, including personnel expenses that are directly related to the operating activities, are aggregated and recorded in each segment. Gains and losses which are not considered for the evaluation of segment performance, such as the write-down of certain long-lived assets and foreign exchange profits or losses (other profit or loss (net) included ), are treated as corporate profits or losses.

Assets attributed to each segment are net investment in leases, installment loans, investment in operating leases, investment in securities, property under facility operations, investment in affiliates, inventories, advances for finance lease and operating lease (included in other assets), advances for property under facility operations (included in other assets), goodwill, intangible assets acquired in business combinations (included in other assets) and servicing assets (included in other assets). It should be noted that the depreciation expenses of office facilities are included in each segment profit and loss while the corresponding assets are not allocated to each segment’s assets. However, the amount is not significant.

– 124 –

The reconciliation of segment totals to consolidated financial statement amounts is as follows:

Significant items to be reconciled are segment revenues, segment profits and segment assets. Other items do not have a significant difference between segment amounts and consolidated amounts.

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	1,802,142		¥	1,691,739
Revenues related to corporate assets		7,894			8,035
Revenues from inter-segment transactions		(13,881	)		(15,395	)
Total consolidated revenues	¥	1,796,155		¥	1,684,379
Segment profits:
Total profits for segments	¥	297,817		¥	352,927
Corporate profits (losses)		(5,190	)		(6,875	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		2,541			4,406
Total consolidated income before income taxes	¥	295,168		¥	350,458
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	537,262		¥	574,653
Revenues related to corporate assets		1,162			1,805
Revenues from inter-segment transactions		(4,283	)		(4,757	)
Total consolidated revenues	¥	534,141		¥	571,701
Segment profits:
Total profits for segments	¥	74,501		¥	122,538
Corporate profits (losses)		(1,027	)		(2,439	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		749			1,730
Total consolidated income before income taxes	¥	74,223		¥	121,829
	Millions of yen
	March 31, 2019			December 31, 2019
Segment assets:
Total assets for segments	¥	9,997,698		¥	10,859,154
Cash and cash equivalents, restricted cash		1,283,580			1,020,609
Allowance for doubtful receivables on finance leases and probable loan losses		(58,011	)		(56,922	)
Trade notes, accounts and other receivable		280,590			276,405
Other corporate assets		671,060			743,712
Total consolidated assets	¥	12,174,917		¥	12,842,958

– 125 –

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the nine months ended December 31, 2018, and for the nine months ended December 31, 2019:

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,433,808	¥	149,509	¥	212,838	¥	1,796,155
Income before Income Taxes		201,496		55,590		38,082		295,168
For the nine months ended December 31, 2019
	Millions of yen
	Nine months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,314,414	¥	154,143	¥	215,822	¥	1,684,379
Income before Income Taxes		219,836		64,739		65,883		350,458

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the three months ended December 31, 2018, and for the three months ended December 31, 2019:

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	408,515	¥	50,509	¥	75,117	¥	534,141
Income before Income Taxes		47,354		11,626		15,243		74,223
For the three months ended December 31, 2019
	Millions of yen
	Three months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	446,798	¥	52,623	¥	72,280	¥	571,701
Income before Income Taxes		78,153		19,307		24,369		121,829

*1	Mainly the United States
*2	Mainly Asia, Europe, Australasia and the Middle East

– 126 –

The following tables represent the breakdown of revenue by types of contract with customers, products and services, and geographic areas for the nine months ended December 31, 2018, for the nine months ended December 31, 2019:

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	3,184	¥	3,539	¥	4,876	¥	371,192	¥	0	¥	5,996	¥	388,787	¥	1,167		¥	389,954
Real estate sales		0		0		62,842		0		0		402		63,244		0			63,244
Asset management and servicing		0		0		4,458		328		121		143,910		148,817		(66	)		148,751
Automobile related services		367		45,659		0		139		0		12,752		58,917		(271	)		58,646
Facilities operation		0		0		79,624		0		0		2,944		82,568		0			82,568
Environment and energy services		2,242		0		165		96,520		0		783		99,710		(619	)		99,091
Real estate management and brokerage		0		0		78,466		0		0		0		78,466		(1,314	)		77,152
Real estate contract work		0		0		53,055		0		0		0		53,055		(9	)		53,046
Other		26,545		6,750		3,334		27,975		2,319		14,949		81,872		(1,511	)		80,361
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Geographical location
Japan		32,338		55,675		286,820		495,602		2,440		4,637		877,512		(480	)		877,032
The Americas		0		0		0		0		0		89,901		89,901		0			89,901
Other		0		273		0		552		0		87,198		88,023		(2,143	)		85,880
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Other revenues *		39,379		158,356		70,561		7,878		286,848		183,684		746,706		(3,364	)		743,342
Segment revenues /Total revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142	¥	(5,987	)	¥	1,796,155

– 127 –

For the nine months ended December 31, 2019

	Millions of yen
	Nine months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	4,323	¥	4,734	¥	3,257	¥	197,472	¥	0	¥	3,856	¥	213,642	¥	1,216		¥	214,858
Real estate sales		0		0		64,518		0		0		751		65,269		0			65,269
Asset management and servicing		0		0		5,962		264		122		133,012		139,360		(80	)		139,280
Automobile related services		372		45,727		0		172		0		12,981		59,252		(296	)		58,956
Facilities operation		0		0		57,807		0		0		363		58,170		(0	)		58,170
Environment and energy services		2,298		0		0		105,810		0		787		108,895		(548	)		108,347
Real estate management and brokerage		0		0		79,648		0		0		0		79,648		(1,790	)		77,858
Real estate contract work		0		0		65,338		0		0		0		65,338		0			65,338
Other		26,003		7,389		3,046		28,747		3,052		11,079		79,316		(1,191	)		78,125
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Geographical location
Japan		32,996		57,285		279,576		331,404		3,174		3,146		707,581		(158	)		707,423
The Americas		0		0		0		0		0		76,367		76,367		0			76,367
Other		0		565		0		1,061		0		83,316		84,942		(2,531	)		82,411
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Other revenues *		36,725		166,167		52,463		8,837		352,294		206,363		822,849		(4,671	)		818,178
Segment revenues /Total revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739	¥	(7,360	)	¥	1,684,379

– 128 –

The following tables represent the breakdown of revenue by types of contract with customers, products and services, and geographic areas for the three months ended December 31, 2018, and for the three months ended December 31, 2019:

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,180	¥	1,142	¥	1,544	¥	94,144	¥	0	¥	3,881	¥	101,891	¥	152		¥	102,043
Real estate sales		0		0		20,148		0		0		246		20,394		0			20,394
Asset management and servicing		0		0		1,579		93		37		48,402		50,111		(11	)		50,100
Automobile related services		122		16,027		0		46		0		4,348		20,543		(96	)		20,447
Facilities operation		0		0		26,860		0		0		977		27,837		(0	)		27,837
Environment and energy services		551		0		43		31,158		0		207		31,959		(203	)		31,756
Real estate management and brokerage		0		0		26,350		0		0		0		26,350		(284	)		26,066
Real estate contract work		0		0		21,015		0		0		0		21,015		(9	)		21,006
Other		8,028		2,235		1,098		9,184		843		5,950		27,338		(1,530	)		25,808
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Geographical location
Japan		9,881		19,331		98,637		134,420		880		1,759		264,908		(1,341	)		263,567
The Americas		0		0		0		0		0		30,716		30,716		0			30,716
Other		0		73		0		205		0		31,536		31,814		(640	)		31,174
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Other revenues *		10,769		53,258		14,746		1,732		66,673		62,646		209,824		(1,140	)		208,684
Segment revenues /Total revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262	¥	(3,121	)	¥	534,141

– 129 –

For the three months ended December 31, 2019

	Millions of yen
	Three months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,506	¥	1,528	¥	346	¥	71,352	¥	0	¥	564	¥	75,296	¥	139		¥	75,435
Real estate sales		0		0		19,948		0		0		250		20,198		0			20,198
Asset management and servicing		0		0		2,060		85		42		47,389		49,576		(38	)		49,538
Automobile related services		121		16,254		0		48		0		4,351		20,774		(97	)		20,677
Facilities operation		0		0		16,248		0		0		107		16,355		0			16,355
Environment and energy services		610		0		0		31,591		0		206		32,407		(187	)		32,220
Real estate management and brokerage		0		0		26,782		0		0		0		26,782		(390	)		26,392
Real estate contract work		0		0		22,657		0		0		0		22,657		0			22,657
Other		9,312		2,551		967		9,138		1,087		3,522		26,577		(904	)		25,673
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Geographical location
Japan		11,549		20,142		89,008		111,971		1,129		980		234,779		(679	)		234,100
The Americas		0		0		0		0		0		27,374		27,374		0			27,374
Other		0		191		0		243		0		28,035		28,469		(798	)		27,671
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Other revenues *		12,482		56,468		13,843		4,031		128,759		68,448		284,031		(1,475	)		282,556
Segment revenues /Total revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653	¥	(2,952	)	¥	571,701

* Other revenues include revenues that are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.

– 130 –

25. Subsequent Events

There are no material subsequent events.

– 131 –

XML

Estimated Fair Value of Financial Instruments

9 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Estimated Fair Value of Financial Instruments

22. 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. The disclosures do not include net investment in leases, investment in affiliates, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts.

March 31, 2019

	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	1,161,032	¥	1,161,032	¥	1,161,032	¥	0	¥	0
Restricted cash		122,548		122,548		122,548		0		0
Installment loans (net of allowance for probable loan losses)		3,231,708		3,228,750		0		199,590		3,029,160
Equity securities *1		425,593		425,593		68,631		295,769		61,193
Trading debt securities		1,564		1,564		0		1,564		0
Available-for-sale debt securities		1,264,244		1,264,244		24,831		1,138,966		100,447
Held-to-maturity debt securities		114,061		144,326		0		120,714		23,612
Other Assets:
Time deposits		4,754		4,754		0		4,754		0
Derivative assets *2		13,998		13,998		0		0		0
Reinsurance recoverables (Investment contracts)		29,989		30,400		0		0		30,400
Liabilities:
Short-term debt	¥	309,549	¥	309,549	¥	0	¥	309,549	¥	0
Deposits		1,782,198		1,782,753		0		1,782,753		0
Policy liabilities and Policy account balances (Investment contracts)		244,497		244,653		0		0		244,653
Long-term debt		4,186,222		4,199,341		0		1,158,287		3,041,054
Other Liabilities:
Derivative liabilities *2		24,461		24,461		0		0		0

*1 The amount of ¥12,100 million of investment funds measured at net asset value per share is not included.

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

December 31, 2019

	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	902,312	¥	902,312	¥	902,312	¥	0	¥	0
Restricted cash		118,297		118,297		118,297		0		0
Installment loans (net of allowance for probable loan losses)		3,571,075		3,575,442		0		212,528		3,362,914
Equity securities *1		417,433		417,433		73,334		277,917		66,182
Trading debt securities		1,371		1,371		0		1,371		0
Available-for-sale debt securities		1,576,349		1,576,349		22,381		1,453,002		100,966
Held-to-maturity debt securities		113,880		144,522		0		120,150		24,372
Other Assets:
Time deposits		4,250		4,250		0		4,250		0
Derivative assets *2		15,169		15,169		0		0		0
Reinsurance recoverables (Investment contracts)		9,019		9,272		0		0		9,272
Liabilities:
Short-term debt	¥	384,132	¥	384,132	¥	0	¥	384,132	¥	0
Deposits		2,053,762		2,053,439		0		2,053,439		0
Policy liabilities and Policy account balances (Investment contracts)		217,610		217,734		0		0		217,734
Long-term debt		4,119,179		4,144,011		0		1,105,707		3,038,304
Other Liabilities:
Derivative liabilities *2		50,674		50,674		0		0		0

*1 The amount of ¥11,878 million of investment funds measured at net asset value per share is not included.

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

Input level of fair value measurement

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

XML

Significant Accounting and Reporting Policies (Policies)

9 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

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 include VIEs 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 finance 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 finance 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 indefinite-lived intangible assets.

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. Monetary assets and liabilities in foreign currencies are recorded in the entity’s functional currency based on the prevailing exchange rates at the end of each fiscal year.

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), net of applicable income taxes, arise from the translation of foreign currency financial statements into Japanese yen.

Revenue recognition

(d) Revenue recognition

The Company and its subsidiaries recognize revenues from only contracts with customers, such as sales of goods and real estate, and services income, based on the following five steps;

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

In accordance with these steps, revenues are recognized to depict the transfer of promised goods or services to customers in the amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenues are recognized net of discount, incentives and estimated sales returns. In case that the Company and its subsidiaries receive payment from customers before satisfying performance obligations, the amounts are recognized as contract liabilities. In transactions that involve third parties, if the Company and its subsidiaries control the goods or services before they are transferred to the customers, revenue is recognized on gross amount as the principal.

Excluding the aforementioned policy, the policies as specifically described hereinafter are applied for each of revenue items.

Finance Revenues—Finance revenues mainly include revenues from finance leases, installment loans, and financial guarantees.

(1) Revenues from finance leases

Lessor leases consist of leases for various equipment types, including office equipment, industrial machinery, transportation equipment and real estates. Net investment in leases includes sales-type leases and direct financing leases which are full-payout leases. Leases not qualifying as sales-type leases or direct financing leases are accounted for as operating leases. Interest income on net investment in leases is recognized over the life of each respective lease using the interest method. In providing leasing services, the Company and its subsidiaries execute supplemental businesses, such as paying insurance and handling taxes on leased assets on behalf of lessees. The estimated unguaranteed residual value represents estimated proceeds from the disposition of equipment at the time the lease is terminated. Estimates of residual values are determined 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. Initial direct costs of sales-type leases and direct financing leases 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 of sales-type leases and direct financing leases is reflected as a component of net investment in 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) Revenues from financial guarantees

At the inception of a guarantee, fair value for the guarantee is recognized as a liability in the consolidated balance sheets. The Company and its subsidiaries recognize revenue mainly over the term of guarantee by a systematic and rational amortization method as the Company and the subsidiaries are released from the risk of the obligation.

(4) Non-accrual policy

In common with all classes, past-due financing receivables are receivables for which principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms. The Company and its subsidiaries suspend accruing revenues on past-due installment loans and finance leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Accrued but uncollected interest is reclassified to net investment in leases or installment loans in the accompanying consolidated balance sheets and becomes subject to the allowance for doubtful receivables and probable loan losses process. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return non-accrual loans and lease receivables to accrual status when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtors’ creditworthiness, such as the debtors’ business characteristics and financial conditions as well as relevant economic conditions and trends.

Gains on investment securities and dividends—Gains on investment securities are recorded on a trade date basis. Dividends are recorded when right to receive dividends is established.

Operating leases—Revenues from operating leases are recognized on a straight-line basis over the contract terms. Investment in operating leases is recorded at cost less accumulated depreciation, which was ¥634,478 million and ¥659,318 million as of March 31, 2019 and December 31, 2019, respectively. Operating lease assets are depreciated over their estimated useful lives mainly on a straight-line basis. Depreciation expenses are included in costs of operating leases. Gains or losses arising from dispositions of operating lease assets are included in operating lease revenues.

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. Initial direct costs of operating leases are being deferred and amortized as a straight-line basis over the life of the related lease. The unamortized balance of initial direct costs is reflected as investment in operating leases.

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 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 investment 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 are 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 the 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 agent 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 finance leases and probable loan losses

The allowance for doubtful receivables on finance 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 finance 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 experience, current delinquencies and delinquency trends, future cash flows expected to be received from the finance leases and loans and value of underlying collateral and guarantees.

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-impaired loans, including loans that are not individually evaluated for impairment, and finance leases, the Company and its subsidiaries evaluate prior charge-off experience segmented by the debtors’ industries and the purpose of the loans, and then develop the allowance for doubtful receivables on finance leases and probable loan losses considering the prior charge-off experience and current economic conditions.

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, mega solar 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

Equity securities are generally reported at fair value with unrealized gains and losses included in income. Equity securities without readily determinable fair values are recorded at its cost minus impairment, if any, plus or minus changes resulting from observable price changes under the election of the measurement alternative, except for investments which are valued at net asset value per share.

Equity securities elected to apply the measurement alternative are written down to its fair value with losses included in income if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value.

In addition, investments included in equity securities that are accounted for under the equity method are recorded at fair value with unrealized gains and losses included in income if certain subsidiaries elect the fair value option.

Trading debt securities are reported at fair value with unrealized gains and losses included in income.

Available-for-sale debt securities are reported at fair value, and unrealized gains or losses are recorded in accumulated other comprehensive income (loss), net of applicable income taxes, except for investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option.

Held-to-maturity debt securities are recorded at amortized cost.

For debt securities other than trading, 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 security 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 security into the credit loss component and the non-credit loss component. The credit loss component is recognized in earnings, and the non-credit loss component is recognized in other comprehensive income (loss), net of applicable income taxes.

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 income before income taxes. The estimated effective tax rate is determined by dividing the estimated provision for income taxes for the full fiscal year by the estimated income before income taxes for the full fiscal year.

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 for tax loss 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. The Company and its subsidiaries release to earnings stranded income tax effects in accumulated other comprehensive income (loss) resulting from changes in tax laws or rates or changes in judgment about realization of a valuation allowance on a specific identification basis when the individual items are completely sold or terminated. 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 nine months ended December 31, 2018 and 2019 were 19.0% and 29.3%, respectively. These rates are (11.0)% and 29.3% for the three months ended December 31, 2018 and 2019, respectively. For the nine and three months ended December 31, 2018 and 2019, 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 31.5%. The effective income tax rate is different from the statutory tax rate primarily because of certain nondeductible expenses for tax purposes, non-taxable income for tax purposes, changes in valuation allowance, the effect of lower tax rates on certain subsidiaries and the effect of investor taxes on earnings of subsidiaries.

On October 26, 2018, the Company decided to acquire common shares of its domestic subsidiary, DAIKYO through a tender offer (hereinafter, “the Tender Offer”), and with the establishment of the Tender Offer, the Company decided to change the method of collecting undistributed earnings of DAIKYO from collection through a taxable transaction to collection through a tax free transaction. On December 10, 2018, the Tender Offer was concluded. Along with the establishment of the event, the Company completely reversed the deferred tax liabilities previously recorded for undistributed earnings of DAIKYO. As a result of this reversal of deferred tax liabilities, income taxes decreased by ¥27,376 million for the nine and three months ended December 31, 2018.

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 SPEs that issue asset-backed beneficial interests and securities to the investors.

SPEs used in securitization transactions are consolidated if the Company and its subsidiaries are the primary beneficiary of the SPEs, and the transfers of the financial assets to those consolidated SPEs are not accounted for as sales. Assets held by 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.

The Company and certain subsidiaries originate and sell loans into the secondary market, while retaining the obligation to service those loans. In addition, a certain subsidiary 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 changes in the fair value of hedged assets or liabilities through the consolidated statements of income, or recorded in other comprehensive income (loss), net of applicable income taxes.

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), net of applicable income taxes, 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), net of applicable income taxes, depending on whether the hedging activity 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 are recorded in the foreign currency translation adjustments account within other comprehensive income (loss), net of applicable income taxes.

Starting from this fiscal year, the Company and its subsidiaries select either the amortization approach or the fair value approach, depending on the type of hedging activity, for the initial value of the component excluded from the assessment of effectiveness, and recognize it through the consolidated statements of income. When the amortization approach is adopted, the change in fair value is recognized in earnings using a systematic and rational method over the life of the hedging instrument and then any difference between the change in fair value and the amount recognized in earnings is recognized in other comprehensive income (loss), net of applicable income taxes. When the fair value approach is adopted, the change in the fair value is immediately recognized through the consolidated statements of income. In the past fiscal year, the change in fair value of the component excluded from the assessment of effectiveness and the ineffective portion of qualified hedges were immediately recognized through the consolidated statements of income.

For all hedging relationships that are designated and qualified for hedge accounting, at inception the Company and its subsidiaries formally document the details of the hedging relationship and the hedging activity. The Company and its subsidiaries 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 pension plans covering substantially all of their employees. The costs of pension plans are accrued based on amounts determined using actuarial methods, with assumptions of discount rate, rate of increase in compensation level, expected long-term rate of return on plan assets and others.

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

In principle, the Company and its subsidiaries measure stock-based compensation expense as consideration for services provided by employees based on the fair value on 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 capital to common stock as required by the Japanese Commercial Code (the “Code”) before amendment. However, no such reclassification was made for stock splits when common stock already included a portion of the proceeds from shares issued at a price in excess of par value. This method of accounting was in conformity with accounting principles generally accepted in Japan.

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 capital amounts equal to the fair market value of the shares issued. Common stock is increased by the par value of the shares and additional paid-in capital is increased by the excess of the market value over par value of the shares issued.

Had such stock splits made prior to October 1, 2001 been accounted for in this manner, additional paid-in capital as of December 31, 2019 would have increased by approximately ¥24,674 million, with a corresponding decrease in retained earnings. Total ORIX Corporation shareholders’ equity would remain unchanged. Stock splits on May 19, 2000 were excluded from the above amounts because the stock splits were not considered to be stock dividends under U.S. GAAP.

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 loans, deposits held on behalf of third parties in the aircraft-related business and others.

InstallmentLoans

(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 fair value determined on an individual basis, except loans held for sale for which the fair value option was elected. A certain subsidiary elected the fair value option on certain loans held for sale. 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, 2019 and December 31, 2019 were ¥54,311 million and ¥80,234 million, respectively. There were ¥38,671 million and ¥43,238 million of loans held for sale as of March 31, 2019 and December 31, 2019, 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 hotels and training facilities) and environmental assets (including mega solar and thermal power stations), 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 ¥102,185 million and ¥99,748 million as of March 31, 2019 and December 31, 2019, 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 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 merchandise 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, 2019 and December 31, 2019, residential condominiums under development were ¥55,860 million and ¥74,843 million, respectively, and completed residential condominiums and merchandise for sale were ¥59,835 million and ¥57,115 million, respectively.

The Company and its subsidiaries recorded ¥269 million and ¥277 million of write-downs principally on completed residential condominiums and merchandise for sale for the nine months ended December 31, 2018 and 2019, respectively, primarily resulting from a decrease in expected sales price. The amounts of such write-downs for the three months ended December 31, 2018 and 2019 were ¥159 million and ¥123 million, respectively. These write-downs were recorded in costs of goods and real estate sold and included in Real Estate segment, Investment and Operation segment and Corporate Financial Services 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 ¥54,499 million and ¥63,823 million as of March 31, 2019 and December 31, 2019, respectively.

Right-of-use assets

(v) Right-of-use assets

The Company and its subsidiaries record the ROU assets recognized from the lessee’s lease transaction as investment in operating leases, property under facility operations and office facilities. Lease liabilities are included in other liabilities.

ROU assets are stated at cost less accumulated amortization. ROU assets of finance leases are amortized mainly on a straight-line basis over the lease term. ROU assets of operating leases are amortized over the lease term by the fixed term operating cost minus the interest cost. Amortization of ROU assets of finance leases and operating leases expenses are included in costs of operating leases, services expense and selling, general and administrative expenses.

Other assets

(w) Other assets

Other assets consist primarily of goodwill and other intangible assets in acquisitions, 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 construction of real estate under operating leases and property under facility operations, prepaid benefit cost, servicing assets, derivative assets, contract assets related to real estate contract works and deferred tax assets.

Goodwill and other intangible assets

(x) 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 indefinite-lived intangible assets 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 goodwill impairment test. The Company and its subsidiaries perform the qualitative assessment for some goodwill but bypass the qualitative assessment and proceed directly to the first step of the two-step impairment test for other goodwill. For the goodwill for which the qualitative assessment is performed, if, after assessing the totality of events or circumstances, the Company and/or subsidiaries determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company and/or subsidiaries do not perform the two-step impairment test. However, if the Company and/or subsidiaries conclude otherwise or determine to bypass the qualitative assessment, the Company and/or subsidiaries proceed to perform the first step of the two-step impairment test. The first step of goodwill impairment test, used to identify potential impairment, calculates the fair value of the reporting unit and compares the fair value with the carrying amount of the reporting unit. If the fair value of the reporting unit falls below its carrying amount, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares implied fair value of goodwill with its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The Company and its subsidiaries test the goodwill either at the operating segment level or one level below the operating segments.

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 intangible 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 intangible 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 ¥430,679 million and ¥426,111 million as of March 31, 2019 and December 31, 2019, respectively.

The amount of other intangible assets was ¥427,098 million and ¥398,701 million as of March 31, 2019 and December 31, 2019, respectively.

Trade notes, accounts and other payable

(y) 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

(z) Other Liabilities

Other liabilities include primarily lease liabilities recognized from the lessee’s lease transaction, accrued expenses related to interest and bonus, accrued benefit liability, advances received from lessees in relation to lease contracts, deposits received from real estate transaction, contract liabilities mainly related to automobile maintenance services and software services, and derivative liabilities.

Capitalization of interest costs

(aa) Capitalization of interest costs

The Company and its subsidiaries capitalized interest costs primarily related to assets under construction such as specific environmental assets, long-term real estate development and ship projects.

Advertising

(ab) Advertising

The costs of advertising are expensed as incurred.

Earnings per share

(ac) 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

(ad) 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

(ae) 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

(af) 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 the gain or loss in the consolidated statements of income in the year in which the change in ownership interest occurs.

New accounting pronouncements

(ag) New accounting pronouncements

In February 2016, Accounting Standards Update 2016-02 (ASC 842 (“Leases”)) was issued, and related amendments were issued thereafter. These updates require a lessee to recognize most leases on the balance sheet. Lessor accounting remains substantially similar to current U.S. GAAP but with some changes. These updates require an entity to disclose more information about leases than under the current disclosure requirements. The Company and its subsidiaries adopted these updates, including Accounting Standards Update 2019-01, on April 1, 2019 and used the beginning of the fiscal year of adoption as the date of initial adoption. Consequently, financial information of comparative periods has not been updated and the disclosures required under the New Lease Standard are not provided for periods before April 1, 2019.

The New Lease Standard provides a number of optional practical expedients in transition. The Company and its subsidiaries have elected the “package of practical expedients”, which permits the Company and its subsidiaries to not reassess under the New Lease Standard the prior conclusions about lease identification, lease classification and initial direct costs. The Company and its subsidiaries have elected other New Lease Standard’s available transitional practical expedients. The New Lease Standard also provides practical expedients for an entity’s ongoing accounting. The Company and its subsidiaries have elected the short-term lease recognition exemption mainly for vehicle and office equipment leases. Consequently, for those leases that meet the requirements, the Company and its subsidiaries have not recognized ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company and its subsidiaries also have elected the practical expedient to not separate lease and non-lease components for part of leases as lessors. The Company and its subsidiaries have expanded their disclosures regarding lessee and lessor.

The impact of the adoption of these updates has resulted in a gross up of ROU assets and corresponding lease liabilities principally for operating leases, such as land leases and office and equipment leases where it is the lessee. The effect of the adoption of these updates on the Company and its subsidiaries’ financial position at the adoption date was increases of ROU assets of ¥ 134,345 million in investment in operating leases, ¥ 77,989 million in property under facility operations, ¥ 75,805 million in office facilities and lease liabilities of ¥ 284,867 million in other liabilities in the consolidated balance sheet as of April 1, 2019. ROU assets in investment in operating leases, property under facility operations and office facilities were ¥ 128,951 million, ¥ 69,719 million and ¥ 75,816 million, respectively, and lease liabilities in other liabilities were ¥ 271,093 million as of December 31, 2019. The adoption had no material effect on the Company and its subsidiaries’ results of operations for the nine and three months ended December 31, 2019. In the consolidated statements of cash flows, cash receipts from lessor’s finance leases have been reclassified from principal payments received under direct financing leases of cash flows from investing activities to principal payments received under net investment in leases of cash flows from operating activities.

In June 2016, Accounting Standards Update 2016-13 (“Measurement of Credit Losses on Financial Instruments”—ASC 326 (“Financial Instruments—Credit Losses”)) was issued, and related amendments were issued thereafter. These updates significantly change how companies measure and recognize credit impairment for many financial assets. The new current expected credit loss model requires companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets that are within the scope of these updates. These updates also make targeted amendments to the current impairment model for available-for-sale debt securities. These updates are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in these updates should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Early application is permitted for fiscal year beginning after December 15, 2018, including interim periods within the fiscal year. The Company and its subsidiaries will adopt these updates on April 1, 2020. The Company and its subsidiaries have substantially completed the development of the current expected credit loss models and continue to validate and refine the models, and establish the policies, systems and internal controls. Based on the Company and its subsidiaries’ assessment and best estimates to date, the allowance for credit losses for financial assets such as installment loans, net investment in leases and off-balance-sheet credit exposures such as financial guarantees and loan commitments are expected to increase due to the changes of the measurement of the allowance for credit losses. The Company and its subsidiaries continue to evaluate the effect that the adoption of these updates will have on the Company and its subsidiaries’ results of operations or financial position. The Company and its subsidiaries will expand their disclosures that are required by these updates, primarily regarding credit quality information and estimates of the allowance for credit losses.

In January 2017, Accounting Standards Update 2017-04 (“Simplifying the Test for Goodwill Impairment”—ASC 350 (“Intangible—Goodwill and Other”)) was issued. This update eliminates Step 2 from the current goodwill impairment test. Instead, goodwill impairments would be measured by the amount by which the carrying amount exceeds the reporting unit’s fair value. This update also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it is more likely than not that the goodwill is impaired, to perform Step 2 of the goodwill impairment test. This update is effective for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates on or after January 1, 2017. The Company and its subsidiaries will adopt this update on April 1, 2020. Generally, the effect of adopting this update on the Company and its subsidiaries’ results of operation or financial position will depend on the outcomes of future goodwill impairment tests.

In August 2017, Accounting Standards Update 2017-12 (“Targeted Improvements to Accounting for Hedging Activities”—ASC 815 (“Derivatives and Hedging”)) was issued, and related amendments were issued thereafter. These updates change the recognition and presentation requirements of hedge accounting including eliminating the requirements to separately measure and report hedge ineffectiveness and presenting the entire change in the fair value of the hedging instrument that affects earnings in the same income statement line as the hedged item. The Company and its subsidiaries adopted these updates on April 1, 2019. The adoption of these updates had no material effect on the Company and its subsidiaries’ results of operations or financial position.

In August 2018, Accounting Standards Update 2018-12 (“Targeted Improvements to the Accounting for Long-Duration Contracts”—ASC 944 (“Financial Services—Insurance”)) was issued, and related amendments which defer the effective date by one year were issued thereafter. These updates change the recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. These updates require an insurance entity to review and, if there is a change, update cash flow assumptions at least annually and to update discount rate used for liability for future policy benefits at each reporting date for nonparticipating traditional long-duration and limited-payment contracts. The effect of updating the discount rate is recognized in other comprehensive income (loss). These updates also require market risk benefits to be measured at fair value, and simplify amortization of deferred acquisition costs. Furthermore, these updates require additional disclosures for long-duration contracts. These updates are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early application is permitted. For the liability for future policy benefits and deferred acquisition costs, these updates are applied to contracts in force as of beginning of the earliest period presented (hereinafter, “the transition date” of these updates) on a modified retrospective basis, and an insurance entity may elect to apply retrospectively. For the market risk benefits, these updates are applied retrospectively at the transition date, and the difference between fair value and carrying value requires an adjustment to retained earnings at the transition date. The cumulative effect of changes in the instrument-specific credit risk between contract inception date and the transition date should be recognized in accumulated other comprehensive income at the transition date. The Company and its subsidiaries will adopt these updates on April 1, 2022. The Company and its subsidiaries are currently evaluating the effect that the adoption of these updates will have on the Company and its subsidiaries’ results of operations or financial position, as well as changes in disclosures required by these updates.

In August 2018, Accounting Standards Update 2018-13 (“Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”—ASC 820 (“Fair Value Measurement”)) was issued. This update modifies and adds the disclosure requirements for Fair Value Measurements. This update also removes disclosure requirements of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted. An entity is also permitted to early adopt any removed or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. Removals and modifications of disclosure requirements should be mainly applied retrospectively to all periods presented upon their effective date, while the additional disclosure requirements should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The Company and its subsidiaries early adopted the removals of disclosure requirements from the three months ended September 30, 2018. The Company and its subsidiaries will adopt the modifications and additions of disclosure requirements from fiscal 2021. Since this update relates to disclosure requirements, the adoption will not have an effect on the Company and its subsidiaries’ results of operations or financial position.

In August 2018, Accounting Standards Update 2018-14 (“Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans”—ASC 715-20 (“Compensation—Retirement Benefits—Defined Benefit Plans—General”)) was issued. This update adds and clarifies the disclosure requirements for Pension Plans, and removes certain disclosure requirements such as the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. This update is effective for fiscal years ending after December 15, 2020. The amendments in this update should be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company and its subsidiaries will adopt this update from fiscal 2021. Since this update relates to disclosure requirements, the adoption will not have an effect on the Company and its subsidiaries’ results of operations or financial position.

In December 2019, Accounting Standards Update 2019-12 (“Simplifying the Accounting for Income Taxes”—ASC 740 (“Income Taxes”)) was issued. This update removes the exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, the exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and other exceptions. This update also simplifies the certain accounting for the income taxes. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 and early adoption is permitted. The income tax simplifications related to changes in ownership of foreign equity method investments and foreign subsidiaries shall be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The other amendments in this update shall be applied on a retrospective basis to all periods presented, on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, or on a prospective basis. The Company and its subsidiaries will adopt this update on April 1, 2021. The Company and its subsidiaries are currently evaluating the effect that the adoption of this update will have on the Company and its subsidiaries’ results of operations or financial position, as well as changes in disclosures required by this update.

XML

CONSOLIDATED BALANCE SHEETS - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Assets
Cash and cash equivalents	¥ 902,312	¥ 1,161,032
Restricted Cash	118,297	122,548
Investment in Direct Financing Leases	0	1,155,632
Net Investment in Leases	1,142,339	0
Installment Loans The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2019 ¥38,671 million December 31, 2019 ¥43,238 million	3,615,530	3,277,670
Allowance for Doubtful Receivables on Finance Leases and Probable Loan Losses	(56,922)	(58,011)
Investment in Operating Leases	1,505,253	1,335,959
Investment in Securities The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2019 ¥27,367 million December 31, 2019 ¥25,583 million	2,228,604	1,928,916
Property under Facility Operations	524,692	441,632
Investment in Affiliates	821,983	842,760
Trade Notes, Accounts and Other Receivable	276,405	280,590
Inventories	131,958	115,695
Office Facilities	198,427	108,390
Other	1,434,080	1,462,104
Total Assets	12,842,958	12,174,917
Liabilities:
Short-Term Debt	384,132	309,549
Deposits	2,169,106	1,927,741
Trade Notes, Accounts and Other Payable	226,900	293,480
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, 2019 ¥360,198 million December 31, 2019 ¥333,017 million	1,574,160	1,521,355
Income Taxes:
Current and Deferred Income Taxes	370,842	355,843
Long-term Debt	4,119,179	4,186,222
Other Liabilities	909,212	617,746
Total Liabilities	9,753,531	9,211,936
Redeemable Noncontrolling Interests	9,720	9,780
Commitments and Contingent Liabilities
Equity:
Common stock	221,111	221,111
Additional Paid-in Capital	258,271	257,625
Retained Earnings	2,696,080	2,555,585
Accumulated Other Comprehensive Income (Loss)	(77,906)	(61,343)
Treasury Stock, at Cost:	(89,146)	(75,904)
ORIX Corporation Shareholders' Equity	3,008,410	2,897,074
Noncontrolling Interests	71,297	56,127
Total Equity	3,079,707	2,953,201
Total Liabilities and Equity	12,842,958	12,174,917
Variable Interest Entity, Primary Beneficiary
Assets
Cash and cash equivalents	4,343	4,437
Investment in Direct Financing Leases	0	15,058
Net Investment in Leases	5,718	0
Installment Loans (Net of Allowance for Doubtful Receivables on Finance Leases and Probable Loan Losses)	202,697	185,988
Investment in Operating Leases	83,939	82,405
Property under Facility Operations	295,130	203,933
Investment in Affiliates	51,608	52,079
Other	106,311	100,101
Total Assets	749,746	644,001
Liabilities:
Short-Term Debt	4,651	580
Trade Notes, Accounts and Other Payable	3,328	7,339
Income Taxes:
Long-term Debt	441,162	418,631
Other Liabilities	46,431	16,480
Total Liabilities	¥ 495,572	¥ 443,030

XML

Credit Quality of Financing Receivables and the Allowance for Credit Losses (Tables)

9 Months Ended

Dec. 31, 2019

Information about Allowance for Credit Losses

The following table provides information about the allowance for credit losses as of March 31, 2019, for the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,196		¥	688		¥	18,407		¥	4,292		¥	10,089		¥	54,672
Provision (Reversal)		9,129			(13	)		2,418			(241	)		2,782			14,075
Charge-offs		(7,867	)		0			(2,692	)		(358	)		(1,671	)		(12,588	)
Recoveries		465			0			196			102			141			904
Other *2		(16	)		18			346			2			(70	)		280
Ending balance	¥	22,907		¥	693		¥	18,675		¥	3,797		¥	11,271		¥	57,343
Individually evaluated for impairment		3,349			47			6,985			2,406			0			12,787
Not individually evaluated for impairment		19,558			646			11,690			1,391			11,271			44,556
Financing receivables :
Ending balance	¥	1,856,623		¥	89,084		¥	1,166,032		¥	16,756		¥	1,165,792		¥	4,294,287
Individually evaluated for impairment		22,793			3,232			24,215			4,176			0			54,416
Not individually evaluated for impairment		1,833,830			85,852			1,141,817			12,580			1,165,792			4,239,871
	Three months ended December 31, 2018
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	22,060		¥	627		¥	18,409		¥	3,905		¥	10,839		¥	55,840
Provision (Reversal)		3,390			74			1,426			(55	)		1,030			5,865
Charge-offs		(2,727	)		0			(931	)		(54	)		(496	)		(4,208	)
Recoveries		178			0			48			6			21			253
Other *2		6			(8	)		(277	)		(5	)		(123	)		(407	)
Ending balance	¥	22,907		¥	693		¥	18,675		¥	3,797		¥	11,271		¥	57,343
	March 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Ending balance	¥	21,195		¥	919		¥	20,662		¥	3,186		¥	12,049		¥	58,011
Individually evaluated for impairment		3,372			166			8,276			1,917			0			13,731
Not individually evaluated for impairment		17,823			753			12,386			1,269			12,049			44,280
Financing receivables :
Ending balance	¥	1,906,022		¥	99,028		¥	1,201,893		¥	16,416		¥	1,155,632		¥	4,378,991
Individually evaluated for impairment		23,163			4,448			27,452			3,764			0			58,827
Not individually evaluated for impairment		1,882,859			94,580			1,174,441			12,652			1,155,632			4,320,164
	Nine months ended December 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,195		¥	919		¥	20,662		¥	3,186		¥	12,049		¥	58,011
Provision (Reversal)		9,931			353			3,240			(133	)		2,333			15,724
Charge-offs		(9,360	)		(1	)		(5,046	)		(470	)		(1,937	)		(16,814	)
Recoveries		419			0			142			48			23			632
Other *3		(26	)		(6	)		(609	)		11			(1	)		(631	)
Ending balance	¥	22,159		¥	1,265		¥	18,389		¥	2,642		¥	12,467		¥	56,922
Individually evaluated for impairment		3,528			229			6,009			1,488			0			11,254
Not individually evaluated for impairment		18,631			1,036			12,380			1,154			12,467			45,668
Financing receivables :
Ending balance	¥	2,126,058		¥	143,103		¥	1,251,329		¥	14,806		¥	1,142,339		¥	4,677,635
Individually evaluated for impairment		26,147			2,516			38,119			2,998			0			69,780
Not individually evaluated for impairment		2,099,911			140,587			1,213,210			11,808			1,142,339			4,607,855
	Three months ended December 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,789		¥	1,055		¥	17,333		¥	2,760		¥	12,236		¥	55,173
Provision (Reversal)		2,956			192			1,499			(55	)		559			5,151
Charge-offs		(2,740	)		0			(687	)		(107	)		(599	)		(4,133	)
Recoveries		146			0			45			28			13			232
Other *3		8			18			199			16			258			499
Ending balance	¥	22,159		¥	1,265		¥	18,389		¥	2,642		¥	12,467		¥	56,922

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.

*3 Other mainly includes foreign currency translation adjustments and a decrease in allowance related to a sale of a subsidiary.

Information about Impaired Loans

The following table provides information about the impaired loans as of March 31, 2019 and December 31, 2019:

	March 31, 2019
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	17,593	¥	17,521	¥	0
Consumer borrowers			1,158		1,111		0
	Housing loans		589		542		0
	Card loans		0		0		0
	Other		569		569		0
Corporate borrowers			16,329		16,304		0
Non-recourse loans	Japan		232		232		0
	The Americas		3,404		3,404		0
Other	Real estate companies		887		887		0
	Entertainment companies		0		0		0
	Other		11,806		11,781		0
Purchased loans			106		106		0
With an allowance recorded *2			41,234		40,234		13,731
Consumer borrowers			22,005		21,401		3,372
	Housing loans		3,845		3,639		835
	Card loans		3,945		3,937		633
	Other		14,215		13,825		1,904
Corporate borrowers			15,571		15,175		8,442
Non-recourse loans	Japan		0		0		0
	The Americas		812		812		166
Other	Real estate companies		1,493		1,480		419
	Entertainment companies		1,382		1,374		490
	Other		11,884		11,509		7,367
Purchased loans			3,658		3,658		1,917
Total		¥	58,827	¥	57,755	¥	13,731
Consumer borrowers			23,163		22,512		3,372
	Housing loans		4,434		4,181		835
	Card loans		3,945		3,937		633
	Other		14,784		14,394		1,904
Corporate borrowers			31,900		31,479		8,442
Non-recourse loans	Japan		232		232		0
	The Americas		4,216		4,216		166
Other	Real estate companies		2,380		2,367		419
	Entertainment companies		1,382		1,374		490
	Other		23,690		23,290		7,367
Purchased loans			3,764		3,764		1,917

	December 31, 2019
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	30,813	¥	30,811	¥	0
Consumer borrowers			1,088		1,086		0
	Housing loans		682		680		0
	Card loans		0		0		0
	Other		406		406		0
Corporate borrowers			29,616		29,616		0
Non-recourse loans	The Americas		1,751		1,751		0
Other	Real estate companies		14,009		14,009		0
	Entertainment companies		31		31		0
	Other		13,825		13,825		0
Purchased loans			109		109		0
With an allowance recorded *2			38,967		38,507		11,254
Consumer borrowers			25,059		24,740		3,528
	Housing loans		5,301		5,285		802
	Card loans		3,914		3,906		625
	Other		15,844		15,549		2,101
Corporate borrowers			11,019		10,878		6,238
Non-recourse loans	The Americas		765		765		229
Other	Real estate companies		1,173		1,160		373
	Entertainment companies		453		452		109
	Other		8,628		8,501		5,527
Purchased loans			2,889		2,889		1,488
Total		¥	69,780	¥	69,318	¥	11,254
Consumer borrowers			26,147		25,826		3,528
	Housing loans		5,983		5,965		802
	Card loans		3,914		3,906		625
	Other		16,250		15,955		2,101
Corporate borrowers			40,635		40,494		6,238
Non-recourse loans	The Americas		2,516		2,516		229
Other	Real estate companies		15,182		15,169		373
	Entertainment companies		484		483		109
	Other		22,453		22,326		5,527
Purchased loans			2,998		2,998		1,488

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 nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
		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		¥	20,526	¥	299	¥	270
	Housing loans		4,121		105		103
	Card loans		4,029		46		40
	Other		12,376		148		127
Corporate borrowers			24,493		248		237
Non-recourse loans	Japan		249		4		4
	The Americas		2,607		0		0
Other	Real estate companies		2,490		26		26
	Entertainment companies		1,536		29		23
	Other		17,611		189		184
Purchased loans			4,761		42		41
Total		¥	49,780	¥	589	¥	548
	Nine months ended December 31, 2019
		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		¥	24,268	¥	341	¥	300
	Housing loans		4,906		109		105
	Card loans		3,924		44		38
	Other		15,438		188		157
Corporate borrowers			31,962		106		104
Non-recourse loans	Japan		172		2		2
	The Americas		3,077		0		0
Other	Real estate companies		5,260		25		25
	Entertainment companies		940		18		18
	Other		22,513		61		59
Purchased loans			3,484		139		139
Total		¥	59,714	¥	586	¥	543
	Three months ended December 31, 2018
			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		¥	22,433	¥	78	¥	78
	Housing loans		4,561		16		16
	Card loans		4,003		14		14
	Other		13,869		48		48
Corporate borrowers			27,695		26		26
Non-recourse loans	Japan		242		0		0
	The Americas		2,173		0		0
Other	Real estate companies		2,417		8		8
	Entertainment companies		1,472		5		5
	Other		21,391		13		13
Purchased loans			4,311		10		10
Total		¥	54,439	¥	114	¥	114
	Three months ended December 31, 2019
		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		¥	25,781	¥	106	¥	100
	Housing loans		5,840		34		32
	Card loans		3,908		13		13
	Other		16,033		59		55
Corporate borrowers			33,618		54		54
Non-recourse loans	Japan		111		0		0
	The Americas		2,495		0		0
Other	Real estate companies		8,312		6		6
	Entertainment companies		499		4		4
	Other		22,201		44		44
Purchased loans			3,110		53		53
Total		¥	62,509	¥	213	¥	207

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 balances.

Information about Credit Quality Indicators

The following table provides information about the credit quality indicators as of March 31, 2019 and December 31, 2019:

	March 31, 2019
		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		¥	1,870,447	¥	23,163	¥	12,412	¥	35,575	¥	1,906,022
	Housing loans		1,593,005		4,434		1,388		5,822		1,598,827
	Card loans		239,523		3,945		1,671		5,616		245,139
	Other		37,919		14,784		9,353		24,137		62,056
Corporate borrowers			1,269,021		31,900		0		31,900		1,300,921
Non-recourse loans	Japan		48,881		232		0		232		49,113
	The Americas		45,699		4,216		0		4,216		49,915
Other	Real estate companies		352,669		2,380		0		2,380		355,049
	Entertainment companies		64,665		1,382		0		1,382		66,047
	Other		757,107		23,690		0		23,690		780,797
Purchased loans			12,652		3,764		0		3,764		16,416
Finance leases			1,140,825		0		14,807		14,807		1,155,632
	Japan		787,081		0		6,158		6,158		793,239
	Overseas		353,744		0		8,649		8,649		362,393
Total		¥	4,292,945	¥	58,827	¥	27,219	¥	86,046	¥	4,378,991
	December 31, 2019
		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		¥	2,087,663	¥	26,147	¥	12,248	¥	38,395	¥	2,126,058
	Housing loans		1,832,996		5,983		1,665		7,648		1,840,644
	Card loans		220,801		3,914		1,506		5,420		226,221
	Other		33,866		16,250		9,077		25,327		59,193
Corporate borrowers			1,353,797		40,635		0		40,635		1,394,432
Non-recourse loans	Japan		72,597		0		0		0		72,597
	The Americas		67,990		2,516		0		2,516		70,506
Other	Real estate companies		371,534		15,182		0		15,182		386,716
	Entertainment companies		62,470		484		0		484		62,954
	Other		779,206		22,453		0		22,453		801,659
Purchased loans			11,808		2,998		0		2,998		14,806
Finance leases			1,126,844		0		15,495		15,495		1,142,339
	Japan		765,613		0		6,084		6,084		771,697
	Overseas		361,231		0		9,411		9,411		370,642
Total		¥	4,580,112	¥	69,780	¥	27,743	¥	97,523	¥	4,677,635

Information about Nonaccrual and Past Due Financing Receivables

The following table provides information about the non-accrual and past-due financing receivables as of March 31, 2019 and December 31, 2019:

	March 31, 2019
			Millions of yen
			Past-due financing receivables
Portfolio segment	Class		30-89 days past-due		90 days or more past-due		Total past-due		Total financing receivables		Non-accrual
Consumer borrowers			¥	5,783	¥	15,647	¥	21,430	¥	1,906,022	¥	15,647
		Housing loans		1,721		2,654		4,375		1,598,827		2,654
		Card loans		548		2,127		2,675		245,139		2,127
		Other		3,514		10,866		14,380		62,056		10,866
Corporate borrowers				4,960		13,753		18,713		1,300,921		27,979
Non-recourse loans		Japan		0		0		0		49,113		0
		The Americas		2,925		2,457		5,382		49,915		3,818
Other		Real estate companies		2		552		554		355,049		1,392
		Entertainment companies		0		663		663		66,047		663
		Other		2,033		10,081		12,114		780,797		22,106
Finance leases				7,181		14,807		21,988		1,155,632		14,807
		Japan		679		6,158		6,837		793,239		6,158
		Overseas		6,502		8,649		15,151		362,393		8,649
Total			¥	17,924	¥	44,207	¥	62,131	¥	4,362,575	¥	58,433
	December 31, 2019
			Millions of yen
			Past-due financing receivables
Portfolio segment	Class		30-89 days past-due		90 days      or more past-due		Total        past-due		Total financing receivables		Non-accrual
Consumer borrowers			¥	5,817	¥	15,413	¥	21,230	¥	2,126,058	¥	15,413
		Housing loans		1,826		2,657		4,483		1,840,644		2,657
		Card loans		515		1,946		2,461		226,221		1,946
		Other		3,476		10,810		14,286		59,193		10,810
Corporate borrowers				3,866		28,038		31,904		1,394,432		37,913
Non-recourse loans		Japan		0		0		0		72,597		0
		The Americas		142		2,516		2,658		70,506		2,516
Other		Real estate companies		74		14,263		14,337		386,716		14,368
		Entertainment companies		0		24		24		62,954		24
		Other		3,650		11,235		14,885		801,659		21,005
Finance leases				6,413		15,495		21,908		1,142,339		15,495
		Japan		700		6,084		6,784		771,697		6,084
		Overseas		5,713		9,411		15,124		370,642		9,411
Total			¥	16,096	¥	58,946	¥	75,042	¥	4,662,829	¥	68,821

Information about Troubled Debt Restructurings of Financing Receivables

The following table provides information about troubled debt restructurings of financing receivables that occurred during the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	9,873	¥	6,876
	Housing loans		61		30
	Card loans		1,624		1,055
	Other		8,188		5,791
Corporate borrowers			6,002		6,001
Other	Other		6,002		6,001
Total		¥	15,875	¥	12,877
	Nine months ended December 31, 2019
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	9,187	¥	6,935
	Housing loans		16		14
	Card loans		1,422		1,052
	Other		7,749		5,869
Corporate borrowers			4,196		4,196
Non-recourse loans	The Americas		340		340
Other	Other		3,856		3,856
Total		¥	13,383	¥	11,131

	Three months ended December 31, 2018
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	3,961	¥	2,832
	Housing loans		10		5
	Card loans		552		363
	Other		3,399		2,464
Corporate borrowers			2,141		2,141
Other	Other		2,141		2,141
Total		¥	6,102	¥	4,973
	Three months ended December 31, 2019
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	3,079	¥	2,301
	Card loans		477		364
	Other		2,602		1,937
Corporate borrowers			1,749		1,749
Non-recourse loans	The Americas		340		340
Other	Other		1,409		1,409
Total		¥	4,828	¥	4,050

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from December 31, 2018 and for which there was a payment default during the nine and three months ended December 31, 2018:

	Nine months ended December 31, 2018
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	1,380
		Card loans		23
		Other		1,357
Total			¥	1,380
	Three months ended December 31, 2018
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	933
		Card loans		20
		Other		913
Total			¥	933

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from December 31, 2019 and for which there was a payment default during the nine and three months ended December 31, 2019:

	Nine months ended December 31, 2019
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	1,497
		Card loans		7
		Other		1,490
Consumer borrowers				127
Other		Other		127
Total			¥	1,624
	Three months ended December 31, 2019
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	444
		Card loans		4
		Other		440
Corporate borrowers				127
Other		Other		127
Total			¥	571

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - 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, 2018	¥ 2,798,874	¥ 220,961	¥ 267,291	¥ 2,315,283	¥ (45,566)	¥ (75,545)	¥ 2,682,424	¥ 116,450
Cumulative effect of adopting Accounting Standards Update (Accounting Standards Update 2014-09) at Mar. 31, 2018	759			405			405	354
Cumulative effect of adopting Accounting Standards Update (Accounting Standards Update 2016-01) at Mar. 31, 2018	0			2,899	(2,899)		0	0
Cumulative effect of adopting Accounting Standards Update (Accounting Standards Update 2016-16) at Mar. 31, 2018	3,772			3,772			3,772	0
Adjusted balance at Mar. 31, 2018	2,803,405	220,961	267,291	2,322,359	(48,465)	(75,545)	2,686,601	116,804
Contribution to subsidiaries	3,420						0	3,420
Transaction with noncontrolling interests	(58,334)		(9,866)		(40)		(9,906)	(48,428)
Comprehensive income, net of tax:
Net income	238,594			236,207			236,207	2,387
Other comprehensive income (loss)
Net change of unrealized gains (losses) on investment in securities	(1,835)				(1,835)		(1,835)	0
Net change of debt valuation adjustments	303				303		303	0
Net change of defined benefit pension plans	5				4		4	1
Net change of foreign currency translation adjustments	(5,455)				(5,353)		(5,353)	(102)
Net change of unrealized gains (losses) on derivative instruments	(64)				(77)		(77)	13
Total other comprehensive income (loss)	(7,046)						(6,958)	(88)
Total comprehensive income	231,548						229,249	2,299
Cash dividends	(96,681)			(88,438)			(88,438)	(8,243)
Exercise of stock options	225	150	75				225	0
Acquisition of treasury stock	(706)					(706)	(706)	0
Disposal of treasury stock	115		(233)			348	115	0
Other, net	358		358				358	0
Ending Balance at Dec. 31, 2018	2,883,350	221,111	257,625	2,470,128	(55,463)	(75,903)	2,817,498	65,852
Beginning Balance at Sep. 30, 2018	2,929,899	221,111	267,033	2,427,424	(35,696)	(75,903)	2,803,969	125,930
Contribution to subsidiaries	336						0	336
Transaction with noncontrolling interests	(65,865)		(9,574)		(39)		(9,613)	(56,252)
Comprehensive income, net of tax:
Net income	82,060			81,157			81,157	903
Other comprehensive income (loss)
Net change of unrealized gains (losses) on investment in securities	(229)				(229)		(229)	0
Net change of debt valuation adjustments	384				384		384	0
Net change of defined benefit pension plans	206				203		203	3
Net change of foreign currency translation adjustments	(19,742)				(19,356)		(19,356)	(386)
Net change of unrealized gains (losses) on derivative instruments	(754)				(730)		(730)	(24)
Total other comprehensive income (loss)	(20,135)						(19,728)	(407)
Total comprehensive income	61,925						61,429	496
Cash dividends	(43,112)			(38,454)			(38,454)	(4,658)
Acquisition of treasury stock	0					0	0	0
Disposal of treasury stock	0		0			0	0	0
Other, net	167		166	1			167	0
Ending Balance at Dec. 31, 2018	2,883,350	221,111	257,625	2,470,128	(55,463)	(75,903)	2,817,498	65,852
Beginning Balance at Mar. 31, 2019	2,953,201	221,111	257,625	2,555,585	(61,343)	(75,904)	2,897,074	56,127
Contribution to subsidiaries	15,756						0	15,756
Transaction with noncontrolling interests	153		196				196	(43)
Comprehensive income, net of tax:
Net income	247,450			244,319			244,319	3,131
Other comprehensive income (loss)
Net change of unrealized gains (losses) on investment in securities	1,277				1,283		1,283	(6)
Net change of debt valuation adjustments	136				136		136	0
Net change of defined benefit pension plans	492				493		493	(1)
Net change of foreign currency translation adjustments	(16,455)				(14,914)		(14,914)	(1,541)
Net change of unrealized gains (losses) on derivative instruments	(3,560)				(3,561)		(3,561)	1
Total other comprehensive income (loss)	(18,110)						(16,563)	(1,547)
Total comprehensive income	229,340						227,756	1,584
Cash dividends	(105,951)			(103,824)			(103,824)	(2,127)
Acquisition of treasury stock	(13,285)					(13,285)	(13,285)	0
Disposal of treasury stock	14		(29)			43	14	0
Other, net	479		479				479	0
Ending Balance at Dec. 31, 2019	3,079,707	221,111	258,271	2,696,080	(77,906)	(89,146)	3,008,410	71,297
Beginning Balance at Sep. 30, 2019	3,027,716	221,111	258,178	2,655,773	(97,128)	(75,861)	2,962,073	65,643
Contribution to subsidiaries	3,944						0	3,944
Transaction with noncontrolling interests	1,619		8				8	1,611
Comprehensive income, net of tax:
Net income	86,108			85,169			85,169	939
Other comprehensive income (loss)
Net change of unrealized gains (losses) on investment in securities	(3,627)				(3,628)		(3,628)	1
Net change of debt valuation adjustments	(68)				(68)		(68)	0
Net change of defined benefit pension plans	(294)				(293)		(293)	(1)
Net change of foreign currency translation adjustments	21,315				21,115		21,115	200
Net change of unrealized gains (losses) on derivative instruments	2,168				2,096		2,096	72
Total other comprehensive income (loss)	19,494						19,222	272
Total comprehensive income	105,602						104,391	1,211
Cash dividends	(45,974)			(44,862)			(44,862)	(1,112)
Acquisition of treasury stock	(13,285)					(13,285)	(13,285)	0
Disposal of treasury stock	0						0	0
Other, net	85		85				85	0
Ending Balance at Dec. 31, 2019	¥ 3,079,707	¥ 221,111	¥ 258,271	¥ 2,696,080	¥ (77,906)	¥ (89,146)	¥ 3,008,410	¥ 71,297

XML

Transfer of Financial Assets

9 Months Ended

Dec. 31, 2019

Transfers and Servicing [Abstract]

Transfer of Financial Assets

9. Transfer of Financial Assets

The Company and its subsidiaries have securitized and transferred financial assets such as installment loans (commercial mortgage loans, housing loans and other).

In the securitization process, these financial assets are transferred to SPEs 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 have continuing involvement with transferred financial assets by retaining the servicing arrangements and the 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. SPEs used in securitization transactions have been consolidated if the Company and its subsidiaries are the primary beneficiary of the SPEs.

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.

For the nine months ended December 31, 2018 and 2019, the amount of installment loans that has been derecognized due to new securitization and transfer of loans were ¥370,946 million and ¥431,379 million, respectively. For the nine months ended December 31, 2018 and 2019, gains (losses) from the securitization and transfer of loans were ¥12,122 million and ¥13,378 million, respectively, which is included in finance revenues in the consolidated statements of income.

For the three months ended December 31, 2018 and 2019, the amount of installment loans that has been derecognized due to new securitization and transfer of loans were ¥152,310 million and ¥154,890 million, respectively. For the three months ended December 31, 2018 and 2019, gains (losses) from the securitization and transfer of loans were ¥4,110 million and ¥3,675 million, respectively, which is included in finance revenues in the consolidated statements of income.

A certain subsidiary originates and sells loans into the secondary market while retaining the obligation to service those loans. In addition, the subsidiary undertakes obligations to service loans originated by others. The servicing assets related to those servicing activities are included in other assets in the consolidated balance sheets and roll-forwards of the amount of the servicing assets for the nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019			Three months ended December 31, 2018			Three months ended December 31, 2019
Beginning balance	¥	28,756		¥	31,572		¥	31,068		¥	32,364
Increase mainly from loans sold with servicing retained		4,696			6,354			2,038			2,253
Decrease mainly from amortization		(3,526	)		(3,764	)		(1,193	)		(1,339	)
Increase (Decrease) from the effects of changes in foreign exchange rates		1,270			(388	)		(717	)		496
Ending balance	¥	31,196		¥	33,774		¥	31,196		¥	33,774

The fair value of the servicing assets as of March 31, 2019 and December 31, 2019 are as follows:

	Millions of yen
	March 31, 2019		December 31, 2019
Beginning balance	¥	35,681	¥	39,846
Ending balance	¥	39,846	¥	42,028

XML

Revenues from Contracts with Customers

9 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

5. Revenues from Contracts with Customers

The following table provides information about revenues from contracts with customers, and other sources of revenue for the nine and three months ended December 31, 2018 and 2019 are as follows;

	Millions of yen		Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Revenues from contracts with customers	¥	1,052,813	¥	866,201
Other revenues *		743,342		818,178
Total revenues	¥	1,796,155	¥	1,684,379
	Millions of yen		Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Revenues from contracts with customers	¥	325,457	¥	289,145
Other revenues *		208,684		282,556
Total revenues	¥	534,141	¥	571,701

* Other revenues are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.

The Company and its subsidiaries recognize revenues when control of the promised goods or services is transferred to our customers, in the amounts that reflect the consideration we expect to receive in exchange for those goods or services. Revenues are recognized net of discounts, incentives and estimated sales returns. Amount to be collected for third party is deducted from revenues. The Company and its subsidiaries evaluate whether we are principal or agent on distinctive goods or services. In transaction that third party concerns, if the Company and its subsidiaries control the goods or services before they are transferred to customers, revenue is recognized on gross amount as the principal. There is no significant variability in considerations included in revenues, except for the performance fees regarding asset management business hereinafter, and there is no significant financing component in considerations on transactions.

For further information about breakdowns of revenues disaggregated by goods or services category and geographical location by segment, see Note 24 “Segment Information.”

Revenue recognition criteria on each goods or services category are mainly as follows:

Sales of goods

The Company and its subsidiaries sell various goods such as precious metals, medical equipment, accounting software and other to customers. Revenues from sales of goods are recognized when there is a transfer of control of the product to customers. The Company and its subsidiaries determine transfer of control based on when the products are shipped or delivered to customers, or inspected by customers.

Real estate sales

Certain subsidiaries are involved in developing and selling real estates. Revenues from sale of detached houses and residential condominiums are recognized when the real estate is delivered to customers.

Asset management and servicing

Certain subsidiaries offer customers investment management services for their financial assets, asset management as well as maintenance and administrative services for their real estate properties. Furthermore, the Company and its subsidiaries perform servicing on behalf of customers. Revenues from asset management and servicing primarily include management fees, servicing fees, and performance fees. Management and servicing fees are recognized over the contract period with customers, since the customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform. 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 contract terms. Servicing fees are calculated based on the predetermined percentages of the amount in assets under management in accordance with contract terms. Fees based on the performance of the assets under management are recognized when the performance obligations are satisfied, 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. The performance fee is estimated by using the most likely amount method, in accordance with contract terms. Servicing fees related to financial assets that the Company and its subsidiaries had originated and transferred to investors, are not in the scope of revenue from contracts with customers. These fees are accounted for servicing assets under which the benefits of servicing are expected to more than adequately compensate for performing the servicing, or servicing liabilities under which the benefits of servicing are not expected to adequately compensate for performing the servicing.

Automobile related services

Certain subsidiaries mainly provide automobile maintenance services to customers, as automobile related services. In the service, since customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform, revenues are recognized over the contract period with customers. For measurement of progress, the cost incurred is used, because that reasonably describes transfer of control of services to customers. The subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Facilities operation

The Company and its subsidiaries are running hotels, Japanese inns, training facilities, a multipurpose dome and other facilities. Revenues from these operations are recognized over the customers’ usage period of the facilities, since customers simultaneously receive and consume the benefits provided by the performance as the Company and its subsidiaries perform. The value transferred to customers is directly measured based on the usage period. With respect to operation of a multipurpose dome and other facilities, certain subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities. Gains on sale of property under facility operations included in services income are not in the scope of revenue from contracts with customers due to the gains are transfers of nonfinancial assets to counterparties that are not our customers.

Environment and energy services

The Company and its subsidiaries offer services that provide electric power for business operators’ factories, office buildings and other facilities. Revenues from electric power supply by purchasing electricity or running power plants are recognized over the contracted distribution period with customers, since customers simultaneously receive and consume the benefits provided by the performance as the Company and its subsidiaries perform. The value transferred to customers is directly measured based on electricity usage by customers. Furthermore, certain subsidiaries are running waste processing facilities. Revenues from resources and waste processing business are primarily recognized over the service contract period with customers, since customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform. The value transferred to customers is directly measured based on the amount of resources and waste to be processed.

Real estate management and brokerage

The Company and its subsidiaries mainly offer management of condominiums, office buildings, and facilities and other, to customers, as real estate management and brokerage business. Since customers simultaneously receive and consume the benefits provided by the performance as the Company and its subsidiaries perform, revenues from these services are recognized over the contract period with customers. Direct measurement of the value transferred to customers based on time elapsed, is used as method of measuring progress. The Company and its subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Real estate contract work

Certain subsidiaries offer repair and contract work for condominiums, office buildings, and facilities, and other, to customers. The work is held on the real estate where customers own or rent, and the subsidiaries’ performance creates the asset that the customers’ control as the asset is created or enhanced. Additionally, the performance does not create an asset with an alternative use to the subsidiaries, and the subsidiaries have a substantial enforceable right to payment for performance completed to date so that revenues are recognized over the contract work period. For measurement of progress, the cost incurred is used, because that reasonably describes transfer of control of services to customers. The subsidiaries recognize contract assets regarding a part of performance obligations that the subsidiaries performed, and the amounts are reported in other assets on the consolidated balance sheets. Furthermore, the subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Other

The Company and its subsidiaries have been developing a variety of businesses. Main revenue streams are as follows;

Maintenance services of software, measurement equipment and other:

Certain subsidiaries offer accounting software maintenance services and support, and maintenance of measurement equipment to customers. Revenues from these services are recognized over the contract period with customers, since customers simultaneously receive and consume the benefits provided by the performance as the subsidiaries perform. For measurement of progress, the cost incurred is used, because that reasonably describes transfer of control of services to customers. The subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheets as contract liabilities.

Fee business:

The Company and its subsidiaries are involved in insurance policy referrals and other agency business. Commission revenues from these businesses are primarily recognized when the contract between our customers and their client is signed.

The following table provides information about balances from contracts with customers as of March 31, 2019 and December 31, 2019.

	Millions of yen
	March 31, 2019		December 31, 2019
Trade Notes, Accounts and Other Receivable	¥	161,884	¥	166,573
Contract assets (Included in Other Assets)		2,277		6,573
Contract liabilities (Included in Other Liabilities)		45,371		31,228

For the nine months ended December 31, 2018 and 2019, there were no significant changes in contract assets. For the nine months ended December 31, 2018, there were no significant changes in contract liabilities. For the nine months ended December 31, 2019, contract liabilities decreased due to deconsolidation of contract liabilities of ¥14,342 million related to facilities operation caused by the sale of ORIX Living.

For the nine months ended December 31, 2018, revenue amounted to ¥34,564 million was included in contract liabilities as of the beginning of the previous fiscal year. For the nine months ended December 31, 2019, revenue amounted to ¥28,209 million was included in contract liabilities as of the end of the previous fiscal year.

For the three months ended December 31, 2018, revenue amounted to ¥5,328 million was included in contract liabilities as of the beginning of the previous fiscal year. For the three months ended December 31, 2019, revenue amounted to ¥5,262 million was included in contract liabilities as of the end of the previous fiscal year.

As of December 31, 2019, transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) is mainly related to automobile related services, real estate sales and amounted to ¥142,028 million. Remaining term for the obligations ranges up to 15 years. Furthermore, automobile related services primarily constitute the performance obligations that are unsatisfied (or partially unsatisfied) will be recognized as revenue over the next 10 years. The Company and its subsidiaries applied practical expedients in the disclosure, and performance obligations for contracts that have an original expected duration of one year or less and contracts under which the value transferred to a customer is directly measured and recognized as revenue by the amount it has a right to invoice to the customer are not included. The transaction price allocated to unsatisfied performance obligations does not include the estimate of material variable consideration.

XML

Segment Information (Financial Information of Segments) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Segment Reporting Information [Line Items]
Segment revenues	¥ 571,701	¥ 534,141	¥ 1,684,379	¥ 1,796,155
Segment profits	86,145	82,409	247,809	239,028
Assets	12,842,958		12,842,958		¥ 12,174,917
Operating Segment
Segment Reporting Information [Line Items]
Segment revenues	574,653	537,262	1,691,739	1,802,142
Segment profits	122,538	74,501	352,927	297,817
Assets	10,859,154		10,859,154		9,997,698
Operating Segment | Corporate Financial Services
Segment Reporting Information [Line Items]
Segment revenues	24,031	20,650	69,721	71,717
Segment profits	4,008	2,972	13,159	19,760
Assets	1,000,148		1,000,148		959,725
Operating Segment | Maintenance Leasing
Segment Reporting Information [Line Items]
Segment revenues	76,801	72,662	224,017	214,304
Segment profits	9,142	9,804	25,767	30,387
Assets	900,943		900,943		873,775
Operating Segment | Real Estate
Segment Reporting Information [Line Items]
Segment revenues	102,851	113,383	332,039	357,381
Segment profits	9,892	10,557	56,070	54,721
Assets	756,092		756,092		720,221
Operating Segment | Investment and Operation
Segment Reporting Information [Line Items]
Segment revenues	116,245	136,357	341,302	504,032
Segment profits	27,203	6,201	55,590	31,091
Assets	808,466		808,466		733,612
Operating Segment | Retail
Segment Reporting Information [Line Items]
Segment revenues	129,888	67,553	355,468	289,288
Segment profits	27,262	17,062	70,447	66,237
Assets	4,110,336		4,110,336		3,571,437
Operating Segment | Overseas Business
Segment Reporting Information [Line Items]
Segment revenues	124,837	126,657	369,192	365,420
Segment profits	45,031	¥ 27,905	131,894	¥ 95,621
Assets	¥ 3,283,169		¥ 3,283,169		¥ 3,138,928

XML

Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Credit Quality Indicators) (Detail) - JPY (¥) ¥ in Millions		Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		¥ 4,677,635	¥ 4,378,991	¥ 4,294,287
Direct Financing Leases
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		1,142,339	1,155,632	1,165,792
Direct Financing Leases | Japan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		771,697	793,239
Direct Financing Leases | Overseas
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		370,642	362,393
Consumer borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		2,126,058	1,906,022	1,856,623
Consumer borrowers | Consumer - Housing loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		1,840,644	1,598,827
Consumer borrowers | Consumer-Card loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		226,221	245,139
Consumer borrowers | Consumer - Other
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		59,193	62,056
Corporate borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		1,394,432	1,300,921
Corporate borrowers | Non-recourse Loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		143,103	99,028	89,084
Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		72,597	49,113
Corporate borrowers | Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		70,506	49,915
Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		386,716	355,049
Corporate borrowers | Other-Entertainment industry
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		62,954	66,047
Corporate borrowers | Other Corporate Loan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		801,659	780,797
Purchased loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable	[1]	14,806	16,416	¥ 16,756
Performing
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		4,580,112	4,292,945
Performing | Direct Financing Leases
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		1,126,844	1,140,825
Performing | Direct Financing Leases | Japan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		765,613	787,081
Performing | Direct Financing Leases | Overseas
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		361,231	353,744
Performing | Consumer borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		2,087,663	1,870,447
Performing | Consumer borrowers | Consumer - Housing loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		1,832,996	1,593,005
Performing | Consumer borrowers | Consumer-Card loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		220,801	239,523
Performing | Consumer borrowers | Consumer - Other
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		33,866	37,919
Performing | Corporate borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		1,353,797	1,269,021
Performing | Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		72,597	48,881
Performing | Corporate borrowers | Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		67,990	45,699
Performing | Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		371,534	352,669
Performing | Corporate borrowers | Other-Entertainment industry
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		62,470	64,665
Performing | Corporate borrowers | Other Corporate Loan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		779,206	757,107
Performing | Purchased loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		11,808	12,652
Nonperforming Financing Receivable Individually Evaluated for Impairment
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		69,780	58,827
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		26,147	23,163
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer - Housing loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		5,983	4,434
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer-Card loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		3,914	3,945
Nonperforming Financing Receivable Individually Evaluated for Impairment | Consumer borrowers | Consumer - Other
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		16,250	14,784
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		40,635	31,900
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		0	232
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		2,516	4,216
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		15,182	2,380
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Other-Entertainment industry
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		484	1,382
Nonperforming Financing Receivable Individually Evaluated for Impairment | Corporate borrowers | Other Corporate Loan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		22,453	23,690
Nonperforming Financing Receivable Individually Evaluated for Impairment | Purchased loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		2,998	3,764
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		27,743	27,219
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		15,495	14,807
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		6,084	6,158
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		9,411	8,649
Nonperforming Financing Receivable more than 90 days Past Due Not Individually Evaluated for Impairment | Consumer borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		12,248	12,412
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		1,665	1,388
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		1,506	1,671
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		9,077	9,353
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		97,523	86,046
Nonperforming | Direct Financing Leases
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		15,495	14,807
Nonperforming | Direct Financing Leases | Japan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		6,084	6,158
Nonperforming | Direct Financing Leases | Overseas
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		9,411	8,649
Nonperforming | Consumer borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		38,395	35,575
Nonperforming | Consumer borrowers | Consumer - Housing loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		7,648	5,822
Nonperforming | Consumer borrowers | Consumer-Card loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		5,420	5,616
Nonperforming | Consumer borrowers | Consumer - Other
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		25,327	24,137
Nonperforming | Corporate borrowers
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		40,635	31,900
Nonperforming | Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		0	232
Nonperforming | Corporate borrowers | Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		2,516	4,216
Nonperforming | Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		15,182	2,380
Nonperforming | Corporate borrowers | Other-Entertainment industry
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		484	1,382
Nonperforming | Corporate borrowers | Other Corporate Loan
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		22,453	23,690
Nonperforming | Purchased loans
Financing Receivable, Recorded Investment [Line Items]
Financing receivable		¥ 2,998	¥ 3,764

[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.

XML

Leases - Lessor: Investment in Operating Leases (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Property Subject to or Available for Operating Lease [Line Items]
Right-of-use-asset (operating leases)	¥ 274,486
Investment in Operating Leases	1,505,253	¥ 1,335,959
Investment in Operating Leases
Property Subject to or Available for Operating Lease [Line Items]
Property Subject to or Available for Operating Lease, Gross	2,002,151
Accumulated depreciation	(659,318)
Net	1,342,833
Right-of-use-asset (operating leases)	128,951
Accrued rental receivables	33,469
Investment in Operating Leases	1,505,253
Transportation equipment | Investment in Operating Leases
Property Subject to or Available for Operating Lease [Line Items]
Property Subject to or Available for Operating Lease, Gross	1,386,422
Measuring and information-related equipment | Investment in Operating Leases
Property Subject to or Available for Operating Lease [Line Items]
Property Subject to or Available for Operating Lease, Gross	278,294
Real Estate Asset | Investment in Operating Leases
Property Subject to or Available for Operating Lease [Line Items]
Property Subject to or Available for Operating Lease, Gross	305,842
Other | Investment in Operating Leases
Property Subject to or Available for Operating Lease [Line Items]
Property Subject to or Available for Operating Lease, Gross	¥ 31,593

XML

Leases - Lessee: Supplemental Cash Flow Information (Detail) ¥ in Millions	9 Months Ended
	Dec. 31, 2019 JPY (¥)
Schedule Of Cash Flow Information Related To Lease Abstract [Abstract]
Operating Leases, Cash flows from operating activities	¥ 33,685
Operating Leases, Cash flows from financing activities	0
Operating Leases, Right-of-use assets obtained in exchange for lease liabilities	29,800
Finance Leases, Cash flows from operating activities	267
Finance Leases, Cash flows from financing activities	409
Finance Leases, Right-of-use assets obtained in exchange for lease liabilities:	¥ 531

XML

Investment in Securities (Summary of Investment in Securities) (Detail) - JPY (¥) ¥ in Millions		Dec. 31, 2019	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Equity securities	[1]	¥ 537,004	¥ 549,047
Trading debt securities		1,371	1,564
Available-for-sale debt securities		1,576,349	1,264,244
Held-to-maturity debt securities		113,880	114,061
Total		¥ 2,228,604	¥ 1,928,916

[1] The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥324,220 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥75,923 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds elected for the fair value option included in equity securities were ¥5,811 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

XML

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		9 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Aggregate unpaid loan principal balance		¥ 1,765		¥ 1,765		¥ 43,238
Aggregate loan fair value		43,238		43,238		38,671
Investment in securities, measured at fair value		25,583		25,583		27,367
Other assets		9,219		9,219		12,449
Policy Liabilities and Policy Account Balances		333,017		333,017		360,198
Loans Held-for-Sale
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Aggregate loan fair value		38,671		38,671		37,865
Other securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gains (losses) from changes in instrument-specific credit risk		622	¥ 294
Reinsurance Recoverable
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets		9,219		9,219		12,449	[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		333,017		333,017		360,198
Equity securities | Available-for-sale securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gains (losses) from change in fair value			393
Equity securities | Investment funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gains (losses) from change in fair value		121	265	533
Investment in securities, measured at fair value		5,997	906	5,997	¥ 906	5,811
Investment in securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Amount by which aggregate fair value of loan exceeds aggregate unpaid principal balance		790		790		420
Investment in securities, measured at fair value		11,878		11,878		12,100
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Amount by which aggregate fair value of loan exceeds aggregate unpaid principal balance		41,473		41,473		806
Other assets		9,219		9,219		12,449
Policy Liabilities and Policy Account Balances		333,017		333,017		360,198
Fair Value, Measurements, Recurring | Loans Held-for-Sale
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gains (losses) from change in fair value				971	495
Investment in securities, measured at fair value	[2]	43,238		43,238		38,671
Fair Value, Measurements, Recurring | Available-for-sale securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investment in securities, measured at fair value						1,264,244
Fair Value, Measurements, Recurring | Other securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investment in securities, measured at fair value		94,109		94,109
Fair Value, Measurements, Recurring | Available-for-sale Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investment in securities, measured at fair value		1,576,349		1,576,349
Fair Value, Measurements, Recurring | Reinsurance Recoverable
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[1]	9,219		9,219
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	[3]	333,017		333,017		360,198
Fair Value, Measurements, Recurring | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investment in securities, measured at fair value	[4],[5]	417,433		417,433		425,593
Fair Value, Measurements, Recurring | Investment in securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gains (losses) from change in fair value		231
Fair Value, Measurements, Recurring | Foreign government bond securities | Available-for-sale Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gains (losses) from change in fair value				7	21
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		7	¥ (12)
Foreign Corporate Debt Securities | Fair Value, Measurements, Recurring | Available-for-sale Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gains (losses) from change in fair value				1,048	¥ 136
Investment in securities, measured at fair value		¥ 18,796		¥ 18,796		¥ 21,136

[1] 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 ¥12,449 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “Life Insurance Operations.”

[2] A certain subsidiary elected the fair value option on certain loans held for sale. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥495 million and ¥0 million from the change in the fair value of the loans for the nine months ended December 31, 2018 and 2019, respectively. Included in “Other (income) and expense, net” in the consolidated statements of income were a gain of ¥294 million and a loss of ¥0 million from the change in the fair value of the loans for the three months ended December 31, 2018 and 2019, respectively. No gains or losses were recognized in earnings during the nine months ended December 31, 2018 and 2019 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, 2019, were ¥37,865 million and ¥38,671 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥806 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of December 31, 2019, were ¥0 million and ¥0 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥0 million. As of March 31, 2019 and December 31, 2019, there were no loans that are 90 days or more past due or, in non-accrual status.

[3] 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 ¥360,198 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “Life Insurance Operations.”

[4] Certain subsidiaries elected the fair value option for certain investments in investment funds included in equity securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥906 million and ¥0 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥265 million and ¥0 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥5,811 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

[5] The amounts of investment funds measured at net asset value per share which are not included in the above tables were ¥12,100 million and ¥0 as of March 31, 2019 and December 31, 2019, respectively.

XML

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	Dec. 31, 2019	Mar. 31, 2019
Long Lived Assets Held-for-sale [Line Items]
Investment in operating leases	¥ 37,875	¥ 24,956
Property under facility operations	0	44,473
Other assets	¥ 812	¥ 19

XML

Per Share Data (Reconciliation of Differences between Basic and Diluted Earnings Per Share) (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net Income attributable to ORIX Corporation shareholders	¥ 85,169	¥ 81,157	¥ 244,319	¥ 236,207
Weighted-average shares	1,278,048	1,279,962	1,279,196	1,280,038
Effect of dilutive securities
Stock compensation	1,245	1,040	1,138	1,083
Weighted-average shares for diluted EPS computation	1,279,293	1,281,002	1,280,334	1,281,121
Earnings per share for net income attributable to ORIX Corporation shareholders:
Basic	¥ 66.64	¥ 63.41	¥ 190.99	¥ 184.53
Diluted	¥ 66.58	¥ 63.35	¥ 190.82	¥ 184.38

XML

Segment Information (Tables)

9 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Financial Information of Segments

The following table represents the financial data for segments for the nine months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142
Segment profits		19,760		30,387		54,721		31,091		66,237		95,621		297,817
The following table represents the financial data for segments for the nine months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739
Segment profits		13,159		25,767		56,070		55,590		70,447		131,894		352,927

The following table represents the financial data for segments for the three months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262
Segment profits		2,972		9,804		10,557		6,201		17,062		27,905		74,501
The following table represents the financial data for segments for the three months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653
Segment profits		4,008		9,142		9,892		27,203		27,262		45,031		122,538
The following table presents the financial data on segment assets for segments as of March 31, 2019 and December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
March 31, 2019	¥	959,725	¥	873,775	¥	720,221	¥	733,612	¥	3,571,437	¥	3,138,928	¥	9,997,698
December 31, 2019		1,000,148		900,943		756,092		808,466		4,110,336		3,283,169		10,859,154

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
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	1,802,142		¥	1,691,739
Revenues related to corporate assets		7,894			8,035
Revenues from inter-segment transactions		(13,881	)		(15,395	)
Total consolidated revenues	¥	1,796,155		¥	1,684,379
Segment profits:
Total profits for segments	¥	297,817		¥	352,927
Corporate profits (losses)		(5,190	)		(6,875	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		2,541			4,406
Total consolidated income before income taxes	¥	295,168		¥	350,458
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	537,262		¥	574,653
Revenues related to corporate assets		1,162			1,805
Revenues from inter-segment transactions		(4,283	)		(4,757	)
Total consolidated revenues	¥	534,141		¥	571,701
Segment profits:
Total profits for segments	¥	74,501		¥	122,538
Corporate profits (losses)		(1,027	)		(2,439	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		749			1,730
Total consolidated income before income taxes	¥	74,223		¥	121,829
	Millions of yen
	March 31, 2019			December 31, 2019
Segment assets:
Total assets for segments	¥	9,997,698		¥	10,859,154
Cash and cash equivalents, restricted cash		1,283,580			1,020,609
Allowance for doubtful receivables on finance leases and probable loan losses		(58,011	)		(56,922	)
Trade notes, accounts and other receivable		280,590			276,405
Other corporate assets		671,060			743,712
Total consolidated assets	¥	12,174,917		¥	12,842,958

Geographical Revenues and Income before Income Taxes

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the nine months ended December 31, 2018, and for the nine months ended December 31, 2019:

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,433,808	¥	149,509	¥	212,838	¥	1,796,155
Income before Income Taxes		201,496		55,590		38,082		295,168
For the nine months ended December 31, 2019
	Millions of yen
	Nine months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,314,414	¥	154,143	¥	215,822	¥	1,684,379
Income before Income Taxes		219,836		64,739		65,883		350,458

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the three months ended December 31, 2018, and for the three months ended December 31, 2019:

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	408,515	¥	50,509	¥	75,117	¥	534,141
Income before Income Taxes		47,354		11,626		15,243		74,223
For the three months ended December 31, 2019
	Millions of yen
	Three months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	446,798	¥	52,623	¥	72,280	¥	571,701
Income before Income Taxes		78,153		19,307		24,369		121,829

*1	Mainly the United States
*2	Mainly Asia, Europe, Australasia and the Middle East

Disaggregation of Revenues for Revenues From Contracts With Customers, by Goods and Services Category and Geographical Location

The following tables represent the breakdown of revenue by types of contract with customers, products and services, and geographic areas for the nine months ended December 31, 2018, for the nine months ended December 31, 2019:

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	3,184	¥	3,539	¥	4,876	¥	371,192	¥	0	¥	5,996	¥	388,787	¥	1,167		¥	389,954
Real estate sales		0		0		62,842		0		0		402		63,244		0			63,244
Asset management and servicing		0		0		4,458		328		121		143,910		148,817		(66	)		148,751
Automobile related services		367		45,659		0		139		0		12,752		58,917		(271	)		58,646
Facilities operation		0		0		79,624		0		0		2,944		82,568		0			82,568
Environment and energy services		2,242		0		165		96,520		0		783		99,710		(619	)		99,091
Real estate management and brokerage		0		0		78,466		0		0		0		78,466		(1,314	)		77,152
Real estate contract work		0		0		53,055		0		0		0		53,055		(9	)		53,046
Other		26,545		6,750		3,334		27,975		2,319		14,949		81,872		(1,511	)		80,361
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Geographical location
Japan		32,338		55,675		286,820		495,602		2,440		4,637		877,512		(480	)		877,032
The Americas		0		0		0		0		0		89,901		89,901		0			89,901
Other		0		273		0		552		0		87,198		88,023		(2,143	)		85,880
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Other revenues *		39,379		158,356		70,561		7,878		286,848		183,684		746,706		(3,364	)		743,342
Segment revenues /Total revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142	¥	(5,987	)	¥	1,796,155

For the nine months ended December 31, 2019

	Millions of yen
	Nine months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	4,323	¥	4,734	¥	3,257	¥	197,472	¥	0	¥	3,856	¥	213,642	¥	1,216		¥	214,858
Real estate sales		0		0		64,518		0		0		751		65,269		0			65,269
Asset management and servicing		0		0		5,962		264		122		133,012		139,360		(80	)		139,280
Automobile related services		372		45,727		0		172		0		12,981		59,252		(296	)		58,956
Facilities operation		0		0		57,807		0		0		363		58,170		(0	)		58,170
Environment and energy services		2,298		0		0		105,810		0		787		108,895		(548	)		108,347
Real estate management and brokerage		0		0		79,648		0		0		0		79,648		(1,790	)		77,858
Real estate contract work		0		0		65,338		0		0		0		65,338		0			65,338
Other		26,003		7,389		3,046		28,747		3,052		11,079		79,316		(1,191	)		78,125
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Geographical location
Japan		32,996		57,285		279,576		331,404		3,174		3,146		707,581		(158	)		707,423
The Americas		0		0		0		0		0		76,367		76,367		0			76,367
Other		0		565		0		1,061		0		83,316		84,942		(2,531	)		82,411
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Other revenues *		36,725		166,167		52,463		8,837		352,294		206,363		822,849		(4,671	)		818,178
Segment revenues /Total revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739	¥	(7,360	)	¥	1,684,379

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,180	¥	1,142	¥	1,544	¥	94,144	¥	0	¥	3,881	¥	101,891	¥	152		¥	102,043
Real estate sales		0		0		20,148		0		0		246		20,394		0			20,394
Asset management and servicing		0		0		1,579		93		37		48,402		50,111		(11	)		50,100
Automobile related services		122		16,027		0		46		0		4,348		20,543		(96	)		20,447
Facilities operation		0		0		26,860		0		0		977		27,837		(0	)		27,837
Environment and energy services		551		0		43		31,158		0		207		31,959		(203	)		31,756
Real estate management and brokerage		0		0		26,350		0		0		0		26,350		(284	)		26,066
Real estate contract work		0		0		21,015		0		0		0		21,015		(9	)		21,006
Other		8,028		2,235		1,098		9,184		843		5,950		27,338		(1,530	)		25,808
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Geographical location
Japan		9,881		19,331		98,637		134,420		880		1,759		264,908		(1,341	)		263,567
The Americas		0		0		0		0		0		30,716		30,716		0			30,716
Other		0		73		0		205		0		31,536		31,814		(640	)		31,174
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Other revenues *		10,769		53,258		14,746		1,732		66,673		62,646		209,824		(1,140	)		208,684
Segment revenues /Total revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262	¥	(3,121	)	¥	534,141

For the three months ended December 31, 2019

	Millions of yen
	Three months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,506	¥	1,528	¥	346	¥	71,352	¥	0	¥	564	¥	75,296	¥	139		¥	75,435
Real estate sales		0		0		19,948		0		0		250		20,198		0			20,198
Asset management and servicing		0		0		2,060		85		42		47,389		49,576		(38	)		49,538
Automobile related services		121		16,254		0		48		0		4,351		20,774		(97	)		20,677
Facilities operation		0		0		16,248		0		0		107		16,355		0			16,355
Environment and energy services		610		0		0		31,591		0		206		32,407		(187	)		32,220
Real estate management and brokerage		0		0		26,782		0		0		0		26,782		(390	)		26,392
Real estate contract work		0		0		22,657		0		0		0		22,657		0			22,657
Other		9,312		2,551		967		9,138		1,087		3,522		26,577		(904	)		25,673
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Geographical location
Japan		11,549		20,142		89,008		111,971		1,129		980		234,779		(679	)		234,100
The Americas		0		0		0		0		0		27,374		27,374		0			27,374
Other		0		191		0		243		0		28,035		28,469		(798	)		27,671
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Other revenues *		12,482		56,468		13,843		4,031		128,759		68,448		284,031		(1,475	)		282,556
Segment revenues /Total revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653	¥	(2,952	)	¥	571,701

* Other revenues include revenues that are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.

XML

Derivative Financial Instruments and Hedging (Tables)

9 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effect of Derivative Instruments on Consolidated Statements of Income, Pre-tax

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the nine months ended December 31, 2018 is as follows.

(1) Cash flow hedges

	Gains (losses) recognized in other comprehensive income on derivative (effective portion)			Gains (losses) reclassified from 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	¥	(1,529	)	Finance revenues/Interest expense	¥	141		—	¥	0
Foreign exchange contracts		252		Other (income) and expense, net		(220	)	—		0
Foreign currency swap agreements		577		Finance revenues/Interest expense/Other (income) and expense, net		(515	)	—		0

(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	¥	(4,553	)	Finance revenues/Interest expense	¥	4,553	Finance revenues/Interest expense
Foreign exchange contracts		(3,834	)	Other (income) and expense, net		3,711	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 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	¥	2,500		Gains on sales of subsidiaries and affiliates and liquidation losses, net	¥	(115	)	—	¥	0
Borrowings and bonds in foreign currencies		(7,377	)	—		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	¥	1,013		Other (income) and expense, net
Futures		2,573		Gains on investment securities and dividends Life insurance premiums and related investment income *
Foreign exchange contracts		(2,037	)	Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net
Credit derivatives held		59		Other (income) and expense, net
Options held/written and other		(1,077	)	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 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 nine months ended December 31, 2018 (see Note 17 “Life Insurance Operations”).

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the nine months ended December 31, 2019 is as follows.

(1) Cash flow hedges

	Millions of yen
	Gains (losses)  recognized in other comprehensive     income on derivative			Gains (losses) reclassified  from other comprehensive income (loss) into income
				Interest expense		Other (income) and expense, net
Interest rate swap agreements	¥	(4,610	)	¥	584	¥	0
Foreign exchange contracts		(369	)		255		0
Foreign currency swap agreements		(461	)		260		108

(2) Fair value hedges

	Millions of yen
	Gains (losses) recognized in income on derivative and other					Gains (losses) recognized in income on hedged item
	Life insurance premiums  and related investment income			Other (income) and      expense, net		Life insurance premiums   and related investment income			Other (income) and     expense, net
Interest rate swap agreements	¥	(5,794	)	¥	0	¥	5,431		¥	0
Foreign exchange contracts		1,172			153		(910	)		(128	)

(3) Hedges of net investment in foreign operations

	Millions of yen
	Gains (losses) recognized in other comprehensive income on derivative and others		Gains (losses) reclassified  from other comprehensive income (loss) into income (Millions of yen)
			Gains on sales of subsidiaries and affiliates and liquidation  losses, net		Interest expense		Other (income) and expense, net
Foreign exchange contracts	¥	4,380	¥	1,594	¥	3,448	¥	21
Borrowings and bonds in foreign currencies		8,342		0		0		0
(4) Derivatives not designated as hedging instruments

	Millions of yen
	Gains (losses) recognized in income on derivative (Millions of  yen)
	Life insurance premiums and related investment income *			Interest expense		Other (income) and    expense, net
Interest rate swap agreements	¥	0		¥	5	¥	120
Futures		(3,292	)		0		2,367
Foreign exchange contracts		177			3,635		1,494
Credit derivatives held		0			0		(6	)
Options held/written and other		(180	)		0		1,202

* 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 nine months ended December 31, 2019 (see Note 17 “Life Insurance Operations”).

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the three months ended December 31, 2018 is as follows.

(1) Cash flow hedges

	Gains (losses) recognized in other comprehensive income on derivative (effective portion)			Gains (losses) reclassified from 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	¥	(2,252	)	Finance revenues/Interest expense	¥	4		—	¥	0
Foreign exchange contracts		9		Other (income) and expense, net		(230	)	—		0
Foreign currency swap agreements		1,544		Finance revenues/Interest expense /Other (income) and expense, net		579		—		0

(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		(5,781	)	Finance revenues/Interest expense		5,781		Finance revenues/Interest expense
Foreign exchange contracts		830		Other (income) and expense, net		(953	)	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 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	¥	4,234	—	¥	0	—	¥	0
Borrowings and bonds in foreign currencies		14,711	—		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	¥	(134	)	Other (income) and expense, net
Futures		5,257		Gains on investment securities and dividends Life insurance premiums and related investment income *
Foreign exchange contracts		5,819		Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net
Credit derivatives held		40		Other (income) and expense, net
Options held/written and other		(1,350	)	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 December 31, 2018 (see Note 17 “Life Insurance Operations”).

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the three months ended December 31, 2019 is as follows.

(1) Cash flow hedges

	Millions of yen
	Gains (losses) recognized in other comprehensive         income on derivative			Gains (losses) reclassified from other comprehensive income (loss) into income
				Interest expense			Other (income) and expense, net
Interest rate swap agreements	¥	2,481		¥	218		¥	0
Foreign exchange contracts		(255	)		107			0
Foreign currency swap agreements		235			(25	)		100

(2) Fair value hedges

	Millions of yen
	Gains (losses) recognized in income on derivative and other					Gains (losses) recognized in income on hedged item
	Life insurance premiums and related investment income			Other (income) and expense, net		Life insurance premiums and related investment income			Other (income) and expense, net
Interest rate swap agreements	¥	3,346		¥	0	¥	(3,299	)	¥	0
Foreign exchange contracts		(934	)		127		1,370			(98	)

(3) Hedges of net investment in foreign operations

	Millions of yen
	Gains (losses) recognized in other comprehensive income on derivative and others			Gains (losses) reclassified from other comprehensive income (loss) into income (Millions of yen)
				Gains on sales of subsidiaries and affiliates and liquidation losses, net		Interest expense		Other (income) and expense, net
Foreign exchange contracts	¥	(12,324	)	¥	1,594	¥	1,194	¥	7
Borrowings and bonds in foreign currencies		(10,477	)		0		0		0
(4) Derivatives not designated as hedging instruments

	Millions of yen
	Gains (losses) recognized in income on derivative (Millions of yen)
	Life insurance premiums and related investment income*			Interest expense		Other (income) and    expense, net
Interest rate swap agreements	¥	0		¥	2	¥	(12	)
Futures		(2,284	)		0		1,760
Foreign exchange contracts		(337	)		1,119		6,017
Credit derivatives held		0			0		10
Options held/written and other		(85	)		0		1,328

* 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 December 31, 2019 (see Note 17 “Life Insurance Operations”).

Fair value hedges

	Millions of yen
	Gains (losses) reclassified from other comprehensive income (loss) into income
	Life insurance premiums and related investment income
Foreign exchange contracts	¥	(1,324	)

The effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income, pre-tax, for the three months ended December 31, 2019 is as follows.

Fair value hedges

	Millions of yen
	Gains (losses) reclassified from other comprehensive income (loss) into income
	Life insurance premiums and related investment income
Foreign exchange contracts	¥	(904	)

The carrying amount of hedged assets and liabilities recognized in balance sheets in fair value hedges and the cumulative amount of fair value hedging adjustments included in the carrying amount at December 31, 2019 is as follows.

Assets as hedged items in fair value hedges					Liabilities as hedged items in fair value hedges
	Millions of yen					Millions of yen
Consolidated balance sheets location	Carrying amount		The cumulative amount of fair value hedging adjustments included in the carrying amount		Consolidated balance sheets location	Carrying amount		The cumulative amount of fair value hedging adjustments included in the carrying amount
Investment in Securities *	¥	318,697	¥	13,213	—	¥	0	¥	0

* Accumulated fair value hedge adjustments of ¥(1,921) million are included for hedged items for which hedge accounting has been discontinued.

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, 2019 and December 31, 2019 are as follows.

March 31, 2019

			Derivative assets			Derivative liabilities
	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	¥	498,874	¥	11	Other Assets	¥	17,320	Other Liabilities
Futures, foreign exchange contracts		505,909		1,888	Other Assets		3,177	Other Liabilities
Foreign currency swap agreements		65,575		1,203	Other Assets		364	Other Liabilities
Foreign currency long-term debt		641,127		0	—		0	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	¥	60,657	¥	127	Other Assets	¥	119	Other Liabilities
Options held/written and other *		556,668		11,140	Other Assets		2,809	Other Liabilities
Futures, foreign exchange contracts *		320,710		1,119	Other Assets		2,159	Other Liabilities
Credit derivatives held		262		7	Other Assets		10	Other Liabilities

* The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥34,701 million, futures contracts of ¥37,359 million and foreign exchange contracts of ¥13,171 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥206 million, ¥248 million and ¥30 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥258 million and ¥173 million at March 31, 2019, respectively.

December 31, 2019

			Derivative assets			Derivative liabilities
	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	¥	504,636	¥	158	Other Assets	¥	24,703	Other Liabilities
Options held/written and other		949		5	Other Assets		0	—
Futures, foreign exchange contracts		509,650		25	Other Assets		9,753	Other Liabilities
Foreign currency swap agreements		66,422		1,421	Other Assets		965	Other Liabilities
Foreign currency long-term debt		618,412		0	—		0	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	¥	7,183	¥	9	Other Assets	¥	65	Other Liabilities
Options held/written and other *		490,428		13,687	Other Assets		10,960	Other Liabilities
Futures, foreign exchange contracts *		323,990		378	Other Assets		4,742	Other Liabilities

* The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥25,225 million, futures contracts of ¥30,042 million and foreign exchange contracts of ¥9,716 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at December 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥16 million, ¥0 million and ¥6 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥34 million and ¥114 million at December 31, 2019, respectively.

XML

Variable Interest Entities (Information about Consolidated VIEs) (Detail) - JPY (¥) ¥ in Millions		Dec. 31, 2019	Mar. 31, 2019
Variable Interest Entity [Line Items]
Total assets	[1]	¥ 948,664	¥ 832,524
Total Liabilities	[1]	505,787	450,200
Assets which are pledged as collateral	[2]	749,746	644,001
Commitments	[3]	42,015	54,533
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]	2,485	2,014
Total Liabilities	[1]	1	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]	89,455	94,404
Total Liabilities	[1]	16,597	31,208
Assets which are pledged as collateral	[2]	18,204	49,587
Commitments	[3]	0	0
Corporate Rehabilitation Support Business
Variable Interest Entity [Line Items]
Total assets	[1]	750	564
Total Liabilities	[1]	262	30
Assets which are pledged as collateral	[2]	0	0
Commitments	[3]	0	0
Investment in securities
Variable Interest Entity [Line Items]
Total assets	[1]	64,121	72,347
Total Liabilities	[1]	44	121
Assets which are pledged as collateral	[2]	0	42
Commitments	[3]	0	0
Securitizing Financial Assets
Variable Interest Entity [Line Items]
Total assets	[1]	221,885	228,859
Total Liabilities	[1]	129,068	175,115
Assets which are pledged as collateral	[2]	221,885	228,859
Commitments	[3]	0	0
Securitization Of Loans Receivable Originated By Third Parties
Variable Interest Entity [Line Items]
Total assets	[1]	2,495	2,264
Total Liabilities	[1]	3,193	2,729
Assets which are pledged as collateral	[2]	2,495	2,264
Commitments	[3]	0	0
Power Generation Projects
Variable Interest Entity [Line Items]
Total assets	[1]	397,330	282,739
Total Liabilities	[1]	285,406	195,915
Assets which are pledged as collateral	[2]	356,841	242,937
Commitments	[3]	42,015	54,533
Other VIEs
Variable Interest Entity [Line Items]
Total assets	[1]	170,143	149,333
Total Liabilities	[1]	71,216	45,082
Assets which are pledged as collateral	[2]	150,321	120,312
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.

XML

Revenues from Contracts with Customers - Balances from Contracts with Customers in Fee Business (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Contract with Customer, Asset and Liability [Abstract]
Trade Notes, Accounts and Other Receivable	¥ 166,573	¥ 161,884
Contract assets (Included in Other Assets)	6,573	2,277
Contract liabilities (Included in Other Liabilities)	¥ 31,228	¥ 45,371

XML

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) ¥ in Millions		Dec. 31, 2019 JPY (¥)		Mar. 31, 2019 JPY (¥)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		¥ 1,576,349		¥ 1,264,244
Equity securities	[1]	537,004		549,047
Derivative assets		15,169		13,998
Other assets		9,219		12,449
Policy Liabilities and Policy Account Balances		333,017		360,198
Options held/written and other		50,674		24,461
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		100,966		100,447
Equity securities		66,182	[2]	61,193	[3]
Derivative assets	[4]	0		0
Other assets				12,449
Total		186,811		179,361
Total financial liabilities		333,044		360,198
Options held/written and other	[4]	0		0
Level 3 | Corporate debt securities | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities				2,162
Level 3 | Corporate debt securities | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities				4,996
Level 3 | Corporate debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,216
Level 3 | Corporate debt securities | Discount rate | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		2,000
Level 3 | Other asset-backed securities and debt securities | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities				23,651
Level 3 | Other asset-backed securities and debt securities | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities				66,750
Level 3 | Other asset-backed securities and debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		¥ 19,168
Level 3 | Other asset-backed securities and debt securities | Measurement Input, Default Rate [Member] | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		1.9
Level 3 | Other asset-backed securities and debt securities | Measurement Input, Default Rate [Member] | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		¥ 74,731
Level 3 | Investment funds | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities				32,702
Level 3 | Investment funds | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities				22,479
Level 3 | Investment funds | Fair Value Inputs Level 3 Internal Cash Flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities				6,012
Level 3 | Investment funds | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities		49,972
Level 3 | Investment funds | Discount rate | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities		10,858
Level 3 | Investment funds | Discount rate | Fair Value Inputs Level 3 Internal Cash Flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities		5,352
Level 3 | Options held | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets				5,005
Level 3 | Options held | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets		53		267
Options held/written and other		27
Level 3 | Options held | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets		10,391
Level 3 | Reinsurance Recoverable | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets				12,449
Level 3 | Reinsurance Recoverable | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets		9,219
Level 3 | Variable Annuity and Variable Life Insurance Contracts | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Policy Liabilities and Policy Account Balances				360,198
Level 3 | Variable Annuity and Variable Life Insurance Contracts | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Policy Liabilities and Policy Account Balances		333,017
Level 3 | Japanese prefectural and foreign municipal bond securities | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities				¥ 2,888
Level 3 | Japanese prefectural and foreign municipal bond securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		¥ 2,851
Significant unobservable inputs, Available-for-sale debt securities		8.5		8.5
Minimum | Corporate debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		0.2
Minimum | Investment funds | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities		3.8
Minimum | Options held | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Derivative assets		12.0
Minimum | Reinsurance Recoverable | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		0.1
Minimum | Reinsurance Recoverable | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		0.0
Minimum | Reinsurance Recoverable | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		1.5
Minimum | Reinsurance Recoverable | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		0.0
Minimum | Variable Annuity and Variable Life Insurance Contracts | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		0.1
Minimum | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		1.5
Minimum | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		0.0
Minimum | Level 3 | Corporate debt securities | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities				0.1
Minimum | Level 3 | Other asset-backed securities and debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		1.0		0.2
Minimum | Level 3 | Other asset-backed securities and debt securities | Measurement Input, Default Rate [Member] | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities				0.6
Minimum | Level 3 | Investment funds | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities				3.8
Minimum | Level 3 | Investment funds | Discount rate | Fair Value Inputs Level 3 Internal Cash Flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities		0.0		0.0
Minimum | Level 3 | Options held | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Derivative assets				0.0
Minimum | Level 3 | Reinsurance Recoverable | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				0.1
Minimum | Level 3 | Reinsurance Recoverable | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				0.0
Minimum | Level 3 | Reinsurance Recoverable | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				1.5
Minimum | Level 3 | Reinsurance Recoverable | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				0.0
Minimum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				0.1
Minimum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		0.0		0.0
Minimum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				1.5
Minimum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				0.0
Maximum | Corporate debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		2.5
Maximum | Investment funds | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities		19.1
Maximum | Investment funds | Discount rate | Fair Value Inputs Level 3 Internal Cash Flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities		65.0
Maximum | Options held | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Derivative assets		33.0
Maximum | Reinsurance Recoverable | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		0.5
Maximum | Reinsurance Recoverable | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		100.0
Maximum | Reinsurance Recoverable | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		14.0
Maximum | Reinsurance Recoverable | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		100.0
Maximum | Variable Annuity and Variable Life Insurance Contracts | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		0.5
Maximum | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		30.0
Maximum | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		100.0
Maximum | Level 3 | Corporate debt securities | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities				1.3
Maximum | Level 3 | Other asset-backed securities and debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		51.2		51.2
Maximum | Level 3 | Other asset-backed securities and debt securities | Measurement Input, Default Rate [Member] | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities				1.6
Maximum | Level 3 | Investment funds | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities				17.0
Maximum | Level 3 | Investment funds | Discount rate | Fair Value Inputs Level 3 Internal Cash Flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities				65.0
Maximum | Level 3 | Options held | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Derivative assets				15.0
Maximum | Level 3 | Reinsurance Recoverable | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				0.4
Maximum | Level 3 | Reinsurance Recoverable | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				100.0
Maximum | Level 3 | Reinsurance Recoverable | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				24.0
Maximum | Level 3 | Reinsurance Recoverable | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				100.0
Maximum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				0.4
Maximum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		100.0		100.0
Maximum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				54.0
Maximum | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				100.0
Weighted Average | Corporate debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		0.8
Weighted Average | Investment funds | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities		16.8
Weighted Average | Investment funds | Discount rate | Fair Value Inputs Level 3 Internal Cash Flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities		2.3
Weighted Average | Reinsurance Recoverable | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		0.1
Weighted Average | Reinsurance Recoverable | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		1.4
Weighted Average | Reinsurance Recoverable | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		7.2
Weighted Average | Reinsurance Recoverable | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets		100.0
Weighted Average | Variable Annuity and Variable Life Insurance Contracts | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		0.1
Weighted Average | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		7.2
Weighted Average | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		80.2
Weighted Average | Level 3 | Corporate debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities				0.8
Weighted Average | Level 3 | Other asset-backed securities and debt securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		11.3		8.3
Weighted Average | Level 3 | Other asset-backed securities and debt securities | Measurement Input, Default Rate [Member] | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		1.9		0.8
Weighted Average | Level 3 | Investment funds | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities				14.1
Weighted Average | Level 3 | Investment funds | Discount rate | Fair Value Inputs Level 3 Internal Cash Flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs. Equity securities				11.3
Weighted Average | Level 3 | Options held | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Derivative assets		14.0		8.6
Weighted Average | Level 3 | Reinsurance Recoverable | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				0.1
Weighted Average | Level 3 | Reinsurance Recoverable | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				1.3
Weighted Average | Level 3 | Reinsurance Recoverable | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				16.2
Weighted Average | Level 3 | Reinsurance Recoverable | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Other assets				99.9
Weighted Average | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				0.1
Weighted Average | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Mortality Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances		1.3		1.3
Weighted Average | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Lapse Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				16.0
Weighted Average | Level 3 | Variable Annuity and Variable Life Insurance Contracts | Annuitization Rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Policy liabilities and Policy Account Balances				80.3
Weighted Average | Level 3 | Japanese prefectural and foreign municipal bond securities | Discount rate | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant unobservable inputs, Available-for-sale debt securities		8.5		8.5

[1] The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥324,220 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥75,923 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds elected for the fair value option included in equity securities were ¥5,811 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

[2] The amount of ¥11,878 million of investment funds measured at net asset value per share is not included.

[3] The amount of ¥12,100 million of investment funds measured at net asset value per share is not included.

[4] 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.”

XML

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	Dec. 31, 2019	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Within one year	¥ 3,905	¥ 4,323
More than one year	4,579	3,185
Total	¥ 8,484	¥ 7,508

XML

Investment in Securities (Roll-Forwards of Amount of Accumulated Other-Than-Temporary Impairments Related to Credit Losses) (Detail) - JPY (¥) ¥ in Millions	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investments in Debt Securities [Abstract]
Beginning balance	¥ 2,102	¥ 1,021
Credit loss for which an other-than-temporary impairment was not previously recognized	0	551
For securities sold or redeemed	0	(22)
Ending balance	¥ 2,102	¥ 1,550

XML

Derivative Financial Instruments and Hedging (Derivative instruments and hedging activitites excluded component for determining hedge effectiveness) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Other Income (Expense), Net and Life Insurance Premiums and Related Investment Income (Loss) [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Gains (losses) reclassified from other comprehensive income (loss) into income	¥ (904)	¥ (1,324)

XML

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		Dec. 31, 2019		Mar. 31, 2019		Dec. 31, 2018
Assets:
Cash and cash equivalents		¥ 902,312		¥ 1,161,032		¥ 1,215,907
Restricted Cash		118,297		122,548		¥ 119,292
Equity securities	[1]	537,004		549,047
Trading debt securities		1,371		1,564
Available-for-sale debt securities		1,576,349		1,264,244
Held-to-maturity debt securities		113,880		114,061
Other Assets:
Derivative assets		15,169		13,998
Liabilities:
Short-Term Debt		384,132		309,549
Deposits		2,169,106		1,927,741
Long-term Debt		4,119,179		4,186,222
Other Liabilities:
Derivative liabilities		50,674		24,461
Level 1
Assets:
Cash and cash equivalents		902,312		1,161,032
Restricted Cash		118,297		122,548
Installment loans (net of allowance for probable loan losses)		0		0
Equity securities		73,334	[2]	68,631	[3]
Trading debt securities		0		0
Available-for-sale debt securities		22,381		24,831
Held-to-maturity debt securities		0		0
Other Assets:
Time deposits		0		0
Derivative assets	[4]	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	[4]	0		0
Level 2
Assets:
Cash and cash equivalents		0		0
Restricted Cash		0		0
Installment loans (net of allowance for probable loan losses)		212,528		199,590
Equity securities		277,917	[2]	295,769	[3]
Trading debt securities		1,371		1,564
Available-for-sale debt securities		1,453,002		1,138,966
Held-to-maturity debt securities		120,150		120,714
Other Assets:
Time deposits		4,250		4,754
Derivative assets	[4]	0		0
Reinsurance recoverables (Investment contracts)		0		0
Liabilities:
Short-Term Debt		384,132		309,549
Deposits		2,053,439		1,782,753
Policy liabilities and Policy account balances (Investment contracts)		0		0
Long-term Debt		1,105,707		1,158,287
Other Liabilities:
Derivative liabilities	[4]	0		0
Level 3
Assets:
Cash and cash equivalents		0		0
Restricted Cash		0		0
Installment loans (net of allowance for probable loan losses)		3,362,914		3,029,160
Equity securities		66,182	[2]	61,193	[3]
Trading debt securities		0		0
Available-for-sale debt securities		100,966		100,447
Held-to-maturity debt securities		24,372		23,612
Other Assets:
Time deposits		0		0
Derivative assets	[4]	0		0
Reinsurance recoverables (Investment contracts)		9,272		30,400
Liabilities:
Short-Term Debt		0		0
Deposits		0		0
Policy liabilities and Policy account balances (Investment contracts)		217,734		244,653
Long-term Debt		3,038,304		3,041,054
Other Liabilities:
Derivative liabilities	[4]	0		0
Carrying amount
Assets:
Cash and cash equivalents		902,312		1,161,032
Restricted Cash		118,297		122,548
Installment loans (net of allowance for probable loan losses)		3,571,075		3,231,708
Equity securities		417,433	[2]	425,593	[3]
Trading debt securities		1,371		1,564
Available-for-sale debt securities		1,576,349		1,264,244
Held-to-maturity debt securities		113,880		114,061
Other Assets:
Time deposits		4,250		4,754
Derivative assets	[4]	15,169		13,998
Reinsurance recoverables (Investment contracts)		9,019		29,989
Liabilities:
Short-Term Debt		384,132		309,549
Deposits		2,053,762		1,782,198
Policy liabilities and Policy account balances (Investment contracts)		217,610		244,497
Long-term Debt		4,119,179		4,186,222
Other Liabilities:
Derivative liabilities	[4]	50,674		24,461
Estimated fair value
Assets:
Cash and cash equivalents		902,312		1,161,032
Restricted Cash		118,297		122,548
Installment loans (net of allowance for probable loan losses)		3,575,442		3,228,750
Equity securities		417,433	[2]	425,593	[3]
Trading debt securities		1,371		1,564
Available-for-sale debt securities		1,576,349		1,264,244
Held-to-maturity debt securities		144,522		144,326
Other Assets:
Time deposits		4,250		4,754
Derivative assets	[4]	15,169		13,998
Reinsurance recoverables (Investment contracts)		9,272		30,400
Liabilities:
Short-Term Debt		384,132		309,549
Deposits		2,053,439		1,782,753
Policy liabilities and Policy account balances (Investment contracts)		217,734		244,653
Long-term Debt		4,144,011		4,199,341
Other Liabilities:
Derivative liabilities	[4]	¥ 50,674		¥ 24,461

[1] The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥324,220 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥75,923 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds elected for the fair value option included in equity securities were ¥5,811 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

[2] The amount of ¥11,878 million of investment funds measured at net asset value per share is not included.

[3] The amount of ¥12,100 million of investment funds measured at net asset value per share is not included.

[4] 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.”

XML

Transfer of Financial Assets (Tables)

9 Months Ended

Dec. 31, 2019

Transfers and Servicing [Abstract]

Roll-Forwards of Amount of Servicing Assets

The servicing assets related to those servicing activities are included in other assets in the consolidated balance sheets and roll-forwards of the amount of the servicing assets for the nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019			Three months ended December 31, 2018			Three months ended December 31, 2019
Beginning balance	¥	28,756		¥	31,572		¥	31,068		¥	32,364
Increase mainly from loans sold with servicing retained		4,696			6,354			2,038			2,253
Decrease mainly from amortization		(3,526	)		(3,764	)		(1,193	)		(1,339	)
Increase (Decrease) from the effects of changes in foreign exchange rates		1,270			(388	)		(717	)		496
Ending balance	¥	31,196		¥	33,774		¥	31,196		¥	33,774

Fair Value of Servicing Assets

The fair value of the servicing assets as of March 31, 2019 and December 31, 2019 are as follows:

	Millions of yen
	March 31, 2019		December 31, 2019
Beginning balance	¥	35,681	¥	39,846
Ending balance	¥	39,846	¥	42,028

XML

Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Dec. 31, 2019

Equity [Abstract]

Changes in Components of Accumulated Other Comprehensive Income (Loss)

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the nine months ended December 31, 2018 and 2019, are as follows:

	Nine months ended December 31, 2018
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at March 31, 2018	¥	10,465		¥	0		¥	(20,487	)	¥	(31,806	)	¥	(3,738	)	¥	(45,566	)
Cumulative effect of adopting Accounting Standards Update 2016-01		(3,250	)		351			0			0			0			(2,899	)
Balance at April 1, 2018		7,215			351			(20,487	)		(31,806	)		(3,738	)		(48,465	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(256) million		497															497
Reclassification adjustment included in net income, net of tax of ¥731 million		(2,332	)														(2,332	)
Debt valuation adjustments, net of tax of ¥(127) million					322												322
Reclassification adjustment included in net income, net of tax of ¥8 million					(19	)											(19	)
Defined benefit pension plans, net of tax of ¥(71) million								85									85
Reclassification adjustment included in net income, net of tax of ¥32 million								(80	)								(80	)
Foreign currency translation adjustments, net of tax of ¥155 million											(5,130	)					(5,130	)
Reclassification adjustment included in net income, net of tax of ¥(1) million											1						1
Net unrealized gains (losses) on derivative instruments, net of tax of ¥174 million														(526	)		(526	)
Reclassification adjustment included in net income, net of tax of ¥(132) million														462			462
Total other comprehensive income (loss)		(1,835	)		303			5			(5,129	)		(64	)		(6,720	)
Transaction with noncontrolling interests		0			0			(52	)		12			0			(40	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		0			0			1			(102	)		13			(88	)
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0			0			326			0			326
Balance at December 31, 2018	¥	5,380		¥	654		¥	(20,535	)	¥	(37,147	)	¥	(3,815	)	¥	(55,463	)

	Nine months ended December 31, 2019
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at March 31, 2019	¥	17,389		¥	582		¥	(27,902	)	¥	(43,558	)	¥	(7,854	)	¥	(61,343	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(2,053) million		5,472															5,472
Reclassification adjustment included in net income, net of tax of ¥1,700 million		(4,195	)														(4,195	)
Debt valuation adjustments, net of tax of ¥(65) million					168												168
Reclassification adjustment included in net income, net of tax of ¥12 million					(32	)											(32	)
Defined benefit pension plans, net of tax of ¥(32) million								129									129
Reclassification adjustment included in net income, net of tax of ¥(142) million								363									363
Foreign currency translation adjustments, net of tax of ¥(823) million											(18,801	)					(18,801	)
Reclassification adjustment included in net income, net of tax of ¥(1,058) million											2,216						2,216
Net unrealized gains (losses) on derivative instruments, net of tax of ¥996 million														(4,444	)		(4,444	)
Reclassification adjustment included in net income, net of tax of ¥(323) million														884			884
Total other comprehensive income (loss)		1,277			136			492			(16,585	)		(3,560	)		(18,240	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		(6	)		0			(1	)		(1,541	)		1			(1,547	)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests		0			0			0			(130	)		0			(130	)
Balance at December 31, 2019	¥	18,672		¥	718		¥	(27,409	)	¥	(58,472	)	¥	(11,415	)	¥	(77,906	)

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the three months ended December 31, 2018 and 2019, are as follows:

	Three months ended December 31, 2018
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at September 30, 2018	¥	5,609		¥	270		¥	(20,688	)	¥	(17,802	)	¥	(3,085	)	¥	(35,696	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(114) million		(391	)														(391	)
Reclassification adjustment included in net income, net of tax of ¥(118) million		162															162
Debt valuation adjustments, net of tax of ¥(153) million					391												391
Reclassification adjustment included in net income, net of tax of ¥3 million					(7	)											(7	)
Defined benefit pension plans, net of tax of ¥(94) million								232									232
Reclassification adjustment included in net income, net of tax of ¥11 million								(26	)								(26	)
Foreign currency translation adjustments, net of tax of ¥(8,709) million											(19,918	)					(19,918	)
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 ¥212 million														(487	)		(487	)
Reclassification adjustment included in net income, net of tax of ¥86 million														(267	)		(267	)
Total other comprehensive income (loss)		(229	)		384			206			(19,918	)		(754	)		(20,311	)
Transaction with noncontrolling interests		0			0			(50	)		11			0			(39	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		0			0			3			(386	)		(24	)		(407	)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests		0			0			0			(176	)		0			(176	)
Balance at December 31, 2018	¥	5,380		¥	654		¥	(20,535	)	¥	(37,147	)	¥	(3,815	)	¥	(55,463	)

	Three months ended December 31, 2019
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at September 30, 2019	¥	22,300		¥	786		¥	(27,116	)	¥	(79,587	)	¥	(13,511	)	¥	(97,128	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥1,116 million		(2,838	)														(2,838	)
Reclassification adjustment included in net income, net of tax of ¥313 million		(789	)														(789	)
Debt valuation adjustments, net of tax of ¥21 million					(54	)											(54	)
Reclassification adjustment included in net income, net of tax of ¥5 million					(14	)											(14	)
Defined benefit pension plans, net of tax of ¥151 million								(406	)								(406	)
Reclassification adjustment included in net income, net of tax of ¥(40) million								112									112
Foreign currency translation adjustments, net of tax of ¥6,858 million											20,802						20,802
Reclassification adjustment included in net income, net of tax of ¥(348) million											658						658
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(584) million														1,877			1,877
Reclassification adjustment included in net income, net of tax of ¥(109) million														291			291
Total other comprehensive income (loss)		(3,627	)		(68	)		(294	)		21,460			2,168			19,639
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		1			0			(1	)		200			72			272
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0			0			145			0			145
Balance at December 31, 2019	¥	18,672		¥	718		¥	(27,409	)	¥	(58,472	)	¥	(11,415	)	¥	(77,906	)

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

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the nine months ended December 31, 2018 and 2019 are as follows:

	Nine months ended December 31, 2018
Details about accumulated other comprehensive income components	Reclassification adjustment included in net income
	Millions of yen			Consolidated statements of income caption
Net unrealized gains (losses) on investment in securities
Sales of debt securities	¥	3,211		Gains on investment securities and dividends
Sales of debt securities		1,545		Life insurance premiums and related investment income
Amortization of debt securities		(895	)	Finance revenues
Amortization of debt securities		(128	)	Life insurance premiums and related investment income
Others		(670	)	Write-downs of securities and other
		3,063		Total before income tax
		(731	)	Income tax (expense) or benefit
	¥	2,332		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	27		Life insurance costs
		27		Total before income tax
		(8	)	Income tax (expense) or benefit
	¥	19		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	807		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(692	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(3	)	See Note 16 “Pension Plans”
		112		Total before income tax
		(32	)	Income tax (expense) or benefit
	¥	80		Net of tax
Foreign currency translation adjustments
Sales or liquidation	¥	(2	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(2	)	Total before income tax
		1		Income tax (expense) or benefit
	¥	(1	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	141		Finance revenues/Interest expense
Foreign exchange contracts		(220	)	Other (income) and expense, net
Foreign currency swap agreements		(515	)	Finance revenues/Interest expense/Other (income) and expense, net
		(594	)	Total before income tax
		132		Income tax (expense) or benefit
	¥	(462	)	Net of tax

	Nine months ended December 31, 2019
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 debt securities	¥	2,159		Gains on investment securities and dividends
Sales of debt securities		5,133		Life insurance premiums and related investment income
Amortization of debt securities		(784	)	Finance revenues
Amortization of debt securities		(613	)	Life insurance premiums and related investment income
		5,895		Total before income tax
		(1,700	)	Income tax (expense) or benefit
	¥	4,195		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	44		Life insurance costs
		44		Total before income tax
		(12	)	Income tax (expense) or benefit
	¥	32		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	730		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(1,233	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(2	)	See Note 16 “Pension Plans”
		(505	)	Total before income tax
		142		Income tax (expense) or benefit
	¥	(363	)	Net of tax
Foreign currency translation adjustments
Foreign exchange contracts	¥	(1,875	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense/Other (income) and expense, net
Sales or liquidation		(1,399	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(3,274	)	Total before income tax
		1,058		Income tax (expense) or benefit
	¥	(2,216	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(584	)	Interest expense
Foreign exchange contracts		(255	)	Interest expense
Foreign currency swap agreements		(368	)	Interest expense/Other (income) and expense, net
		(1,207	)	Total before income tax
		323		Income tax (expense) or benefit
	¥	(884	)	Net of tax

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the three months ended December 31, 2018 and 2019 are as follows:

	Three months ended December 31, 2018
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 debt securities	¥	88		Gains on investment securities and dividends
Sales of debt securities		0		Life insurance premiums and related investment income
Amortization of debt securities		(241	)	Finance revenues
Amortization of debt securities		(14	)	Life insurance premiums and related investment income
Others		(113	)	Write-downs of securities and other
		(280	)	Total before income tax
		118		Income tax (expense) or benefit
	¥	(162	)	Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	10		Life insurance costs
		10		Total before income tax
		(3	)	Income tax (expense) or benefit
	¥	7		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	269		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(231	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(1	)	See Note 16 “Pension Plans”
		37		Total before income tax
		(11	)	Income tax (expense) or benefit
	¥	26		Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	4		Finance revenues/Interest expense
Foreign exchange contracts		(230	)	Other (income) and expense, net
Foreign currency swap agreements		579		Finance revenues/Interest expense/Other (income) and expense, net
		353		Total before income tax
		(86	)	Income tax (expense) or benefit
	¥	267		Net of tax

	Three months ended December 31, 2019
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 debt securities	¥	245		Gains on investment securities and dividends
Sales of debt securities		1,578		Life insurance premiums and related investment income
Amortization of debt securities		(405	)	Finance revenues
Amortization of debt securities		(316	)	Life insurance premiums and related investment income
		1,102		Total before income tax
		(313	)	Income tax (expense) or benefit
	¥	789		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	19		Life insurance costs
		19		Total before income tax
		(5	)	Income tax (expense) or benefit
	¥	14		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	249		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(401	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(0	)	See Note 16 “Pension Plans”
		(152	)	Total before income tax
		40		Income tax (expense) or benefit
	¥	(112	)	Net of tax
Foreign currency translation adjustments
Foreign exchange contracts	¥	393		Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense/Other (income) and expense, net
Sales or liquidation		(1,399	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(1,006	)	Total before income tax
		348		Income tax (expense) or benefit
	¥	(658	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(218	)	Interest expense/Other (income) and expense, net
Foreign exchange contracts		(107	)	Interest expense
Foreign currency swap agreements		(75	)	Interest expense/Other (income) and expense, net
		(400	)	Total before income tax
		109		Income tax (expense) or benefit
	¥	(291	)	Net of tax

XML

Pension Plans (Net Pension Cost of Defined Benefit Plans) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Japan
Defined Benefit Plan Disclosure [Line Items]
Service cost	¥ 1,507	¥ 1,382	¥ 4,384	¥ 4,144
Interest cost	151	181	438	542
Expected return on plan assets	(713)	(680)	(2,083)	(2,042)
Amortization of prior service credit	(210)	(225)	(615)	(673)
Amortization of net actuarial loss	288	211	865	633
Amortization of transition obligation	0	0	0	0
Net periodic pension cost	1,023	869	2,989	2,604
Overseas plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	883	802	2,649	2,433
Interest cost	426	491	1,275	1,484
Expected return on plan assets	(1,101)	(1,090)	(3,242)	(3,292)
Amortization of prior service credit	(39)	(44)	(115)	(134)
Amortization of net actuarial loss	113	20	368	59
Amortization of transition obligation	0	1	2	3
Net periodic pension cost	¥ 282	¥ 180	¥ 937	¥ 553

XML

Accumulated Other Comprehensive Income (Loss) (Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (loss)) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gains on sales of subsidiaries and affiliates and liquidation losses, net	¥ 25,200	¥ 1,438	¥ 58,488	¥ 20,470
Life insurance costs	(78,177)	(27,065)	(209,137)	(152,799)
Write-downs of securities and other	0	(113)	(36)	(821)
Income tax (expense) or benefit	(35,684)	8,186	(102,649)	(56,140)
Net Income	86,145	82,409	247,809	239,028
Other Operating Income (Expense), Net	(644)	(745)	131	(242)
Interest Expense	23,763	25,528	74,006	67,376
Other (income) and expense, net	(644)	(745)	131	(242)
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]
Total before income tax	1,102	(280)	5,895	3,063
Income tax (expense) or benefit	(313)	118	(1,700)	(731)
Net Income	789	(162)	4,195	2,332
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]
Gains on investment securities and dividend	245	88	2,159	3,211
Life insurance premiums and related investment income	1,578	0	5,133	1,545
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	(316)	(14)	(613)	(128)
Finance revenues	(405)	(241)	(784)	(895)
Write-downs of securities and other		(113)		(670)
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	249	269	730	807
Amortization of net actuarial loss	(401)	(231)	(1,233)	(692)
Amortization of transition obligation	0	(1)	(2)	(3)
Total before income tax	(152)	37	(505)	112
Income tax (expense) or benefit	40	(11)	142	(32)
Net Income	(112)	26	(363)	80
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	(1,399)		(1,399)	(2)
Total before income tax	(1,006)		(3,274)	(2)
Income tax (expense) or benefit	348		1,058	1
Net Income	(658)		(2,216)	(1)
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other Operating Income (Expense), Net	393		(1,875)
Other (income) and expense, net	393		(1,875)
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 income tax	(400)	353	(1,207)	(594)
Income tax (expense) or benefit	109	(86)	323	132
Net Income	(291)	267	(884)	(462)
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		4		141
Other Operating Income (Expense), Net	(218)		(584)
Other (income) and expense, net	(218)		(584)
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 Operating Income (Expense), Net		(230)		(220)
Interest Expense	(107)		(255)
Other (income) and expense, net		(230)		(220)
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]
Other Operating Income (Expense), Net	(75)
Other (income) and expense, net	(75)
Finance revenues/Interest expense/Other (income) and expense, net		579	(368)	(515)
Reclassification out of Accumulated Other Comprehensive Income | Debt valuation adjustments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Life insurance costs	19	10	44	27
Total before income tax	19	10	44	27
Income tax (expense) or benefit	(5)	(3)	(12)	(8)
Net Income	¥ 14	¥ 7	¥ 32	¥ 19

XML

Life Insurance Operations (Tables)

9 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Life Insurance Premiums and Related Investment Income

Life insurance premiums and related investment income for the nine and three months ended December 31, 2018 and 2019 consist of the following:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Life insurance premiums	¥	233,134		¥	254,683
Life insurance related investment income (loss) *		(5,114	)		35,973
	¥	228,020		¥	290,656

*    Life insurance related investment income for the nine months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥23,189 million and a net unrealized holding gain of ¥24,609 million on equity securities held as of December 31, 2018 and 2019, respectively.

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Life insurance premiums	¥	79,623		¥	87,421
Life insurance related investment income (loss) *		(32,207	)		20,767
	¥	47,416		¥	108,188

*    Life insurance related investment income for the three months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥43,010 million and a net unrealized holding gain of ¥18,043 million on equity securities held as of December 31, 2018 and 2019, respectively.

Reinsurance Benefits and Reinsurance Premiums Included in Life Insurance Premiums

Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For the nine and three months ended December 31, 2018 and 2019, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Reinsurance benefits	¥	1,891		¥	1,949
Reinsurance premiums		(4,142	)		(3,933	)

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Reinsurance benefits	¥	698		¥	774
Reinsurance premiums		(1,293	)		(1,282	)

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 nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Life insurance premiums and related investment income:
Net realized and unrealized gains or losses from investment assets	¥	(21,790	)	¥	25,962
Net gains or losses from derivative contracts:		2,496			(3,477	)
Futures		2,730			(3,292	)
Foreign exchange contracts		(316	)		(5	)
Options held		82			(180	)
Life insurance costs:
Changes in the fair value of the policy liabilities and policy account balances	¥	(81,515	)	¥	(26,992	)
Insurance costs recognized for insurance and annuity payouts as a result of insured events		62,522			39,418
Changes in the fair value of the reinsurance contracts		(2,794	)		3,230
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Life insurance premiums and related investment income:
Net realized and unrealized gains or losses from investment assets	¥	(43,844	)	¥	18,661
Net gains or losses from derivative contracts:		5,956			(2,653	)
Futures		5,051			(2,284	)
Foreign exchange contracts		219			(284	)
Options held		686			(85	)
Life insurance costs:
Changes in the fair value of the policy liabilities and policy account balances	¥	(43,098	)	¥	(3,917	)
Insurance costs recognized for insurance and annuity payouts as a result of insured events		14,851			14,304
Changes in the fair value of the reinsurance contracts		(6,681	)		2,163

XML

Offsetting Assets and Liabilities

9 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Offsetting Assets and Liabilities

21. Offsetting Assets and Liabilities

The gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheets regarding derivative assets and liabilities as of March 31, 2019 and December 31, 2019 are as follows.

March 31, 2019

	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 consolidated balance sheets*						Net amount
								Financial instruments			Collateral received/pledged
Derivative assets	¥	15,495	¥	(1,497	)	¥	13,998	¥	(196	)	¥	0		¥	13,802
Total assets	¥	15,495	¥	(1,497	)	¥	13,998	¥	(196	)	¥	0		¥	13,802
Derivative liabilities	¥	25,958	¥	(1,497	)	¥	24,461	¥	(8,353	)	¥	(79	)	¥	16,029
Total liabilities	¥	25,958	¥	(1,497	)	¥	24,461	¥	(8,353	)	¥	(79	)	¥	16,029
December 31, 2019
	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 consolidated balance sheets*						Net amount
								Financial instruments			Collateral received/pledged
Derivative assets	¥	15,683	¥	(514	)	¥	15,169	¥	(16	)	¥	0		¥	15,153
Total assets	¥	15,683	¥	(514	)	¥	15,169	¥	(16	)	¥	0		¥	15,153
Derivative liabilities	¥	51,188	¥	(514	)	¥	50,674	¥	(14,143	)	¥	(1,313	)	¥	35,218
Total liabilities	¥	51,188	¥	(514	)	¥	50,674	¥	(14,143	)	¥	(1,313	)	¥	35,218

* The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets.

XML

Life Insurance Operations

9 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Life Insurance Operations

17. Life Insurance Operations

Life insurance premiums and related investment income for the nine and three months ended December 31, 2018 and 2019 consist of the following:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Life insurance premiums	¥	233,134		¥	254,683
Life insurance related investment income (loss) *		(5,114	)		35,973
	¥	228,020		¥	290,656

*    Life insurance related investment income for the nine months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥23,189 million and a net unrealized holding gain of ¥24,609 million on equity securities held as of December 31, 2018 and 2019, respectively.

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Life insurance premiums	¥	79,623		¥	87,421
Life insurance related investment income (loss) *		(32,207	)		20,767
	¥	47,416		¥	108,188

*    Life insurance related investment income for the three months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥43,010 million and a net unrealized holding gain of ¥18,043 million on equity securities held as of December 31, 2018 and 2019, respectively.

Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For the nine and three months ended December 31, 2018 and 2019, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Reinsurance benefits	¥	1,891		¥	1,949
Reinsurance premiums		(4,142	)		(3,933	)

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Reinsurance benefits	¥	698		¥	774
Reinsurance premiums		(1,293	)		(1,282	)

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 nine months ended December 31, 2018 and 2019 was ¥13,238 million and ¥13,839 million, respectively. In addition, amortization charged to income for the three months ended December 31, 2018 and 2019 was ¥4,580 million and ¥4,707 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 portion of the total change in the fair value of variable annuity and variable life insurance contracts that results from a change in the instrument-specific credit risk is recognized in other comprehensive income (loss), net of applicable income taxes.

The above mentioned gains or losses relating to variable annuity and variable life insurance contracts for the nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Life insurance premiums and related investment income:
Net realized and unrealized gains or losses from investment assets	¥	(21,790	)	¥	25,962
Net gains or losses from derivative contracts:		2,496			(3,477	)
Futures		2,730			(3,292	)
Foreign exchange contracts		(316	)		(5	)
Options held		82			(180	)
Life insurance costs:
Changes in the fair value of the policy liabilities and policy account balances	¥	(81,515	)	¥	(26,992	)
Insurance costs recognized for insurance and annuity payouts as a result of insured events		62,522			39,418
Changes in the fair value of the reinsurance contracts		(2,794	)		3,230
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Life insurance premiums and related investment income:
Net realized and unrealized gains or losses from investment assets	¥	(43,844	)	¥	18,661
Net gains or losses from derivative contracts:		5,956			(2,653	)
Futures		5,051			(2,284	)
Foreign exchange contracts		219			(284	)
Options held		686			(85	)
Life insurance costs:
Changes in the fair value of the policy liabilities and policy account balances	¥	(43,098	)	¥	(3,917	)
Insurance costs recognized for insurance and annuity payouts as a result of insured events		14,851			14,304
Changes in the fair value of the reinsurance contracts		(6,681	)		2,163

XML

Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Dec. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

13. Accumulated Other Comprehensive Income (Loss)

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the nine months ended December 31, 2018 and 2019, are as follows:

	Nine months ended December 31, 2018
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at March 31, 2018	¥	10,465		¥	0		¥	(20,487	)	¥	(31,806	)	¥	(3,738	)	¥	(45,566	)
Cumulative effect of adopting Accounting Standards Update 2016-01		(3,250	)		351			0			0			0			(2,899	)
Balance at April 1, 2018		7,215			351			(20,487	)		(31,806	)		(3,738	)		(48,465	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(256) million		497															497
Reclassification adjustment included in net income, net of tax of ¥731 million		(2,332	)														(2,332	)
Debt valuation adjustments, net of tax of ¥(127) million					322												322
Reclassification adjustment included in net income, net of tax of ¥8 million					(19	)											(19	)
Defined benefit pension plans, net of tax of ¥(71) million								85									85
Reclassification adjustment included in net income, net of tax of ¥32 million								(80	)								(80	)
Foreign currency translation adjustments, net of tax of ¥155 million											(5,130	)					(5,130	)
Reclassification adjustment included in net income, net of tax of ¥(1) million											1						1
Net unrealized gains (losses) on derivative instruments, net of tax of ¥174 million														(526	)		(526	)
Reclassification adjustment included in net income, net of tax of ¥(132) million														462			462
Total other comprehensive income (loss)		(1,835	)		303			5			(5,129	)		(64	)		(6,720	)
Transaction with noncontrolling interests		0			0			(52	)		12			0			(40	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		0			0			1			(102	)		13			(88	)
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0			0			326			0			326
Balance at December 31, 2018	¥	5,380		¥	654		¥	(20,535	)	¥	(37,147	)	¥	(3,815	)	¥	(55,463	)

	Nine months ended December 31, 2019
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at March 31, 2019	¥	17,389		¥	582		¥	(27,902	)	¥	(43,558	)	¥	(7,854	)	¥	(61,343	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(2,053) million		5,472															5,472
Reclassification adjustment included in net income, net of tax of ¥1,700 million		(4,195	)														(4,195	)
Debt valuation adjustments, net of tax of ¥(65) million					168												168
Reclassification adjustment included in net income, net of tax of ¥12 million					(32	)											(32	)
Defined benefit pension plans, net of tax of ¥(32) million								129									129
Reclassification adjustment included in net income, net of tax of ¥(142) million								363									363
Foreign currency translation adjustments, net of tax of ¥(823) million											(18,801	)					(18,801	)
Reclassification adjustment included in net income, net of tax of ¥(1,058) million											2,216						2,216
Net unrealized gains (losses) on derivative instruments, net of tax of ¥996 million														(4,444	)		(4,444	)
Reclassification adjustment included in net income, net of tax of ¥(323) million														884			884
Total other comprehensive income (loss)		1,277			136			492			(16,585	)		(3,560	)		(18,240	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		(6	)		0			(1	)		(1,541	)		1			(1,547	)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests		0			0			0			(130	)		0			(130	)
Balance at December 31, 2019	¥	18,672		¥	718		¥	(27,409	)	¥	(58,472	)	¥	(11,415	)	¥	(77,906	)

Changes in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders for the three months ended December 31, 2018 and 2019, are as follows:

	Three months ended December 31, 2018
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at September 30, 2018	¥	5,609		¥	270		¥	(20,688	)	¥	(17,802	)	¥	(3,085	)	¥	(35,696	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥(114) million		(391	)														(391	)
Reclassification adjustment included in net income, net of tax of ¥(118) million		162															162
Debt valuation adjustments, net of tax of ¥(153) million					391												391
Reclassification adjustment included in net income, net of tax of ¥3 million					(7	)											(7	)
Defined benefit pension plans, net of tax of ¥(94) million								232									232
Reclassification adjustment included in net income, net of tax of ¥11 million								(26	)								(26	)
Foreign currency translation adjustments, net of tax of ¥(8,709) million											(19,918	)					(19,918	)
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 ¥212 million														(487	)		(487	)
Reclassification adjustment included in net income, net of tax of ¥86 million														(267	)		(267	)
Total other comprehensive income (loss)		(229	)		384			206			(19,918	)		(754	)		(20,311	)
Transaction with noncontrolling interests		0			0			(50	)		11			0			(39	)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		0			0			3			(386	)		(24	)		(407	)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests		0			0			0			(176	)		0			(176	)
Balance at December 31, 2018	¥	5,380		¥	654		¥	(20,535	)	¥	(37,147	)	¥	(3,815	)	¥	(55,463	)

	Three months ended December 31, 2019
	Millions of yen
	Net unrealized gains (losses) on investment in securities			Debt valuation adjustments			Defined benefit pension plans			Foreign currency translation adjustments			Net unrealized gains (losses) on derivative instruments			Accumulated other comprehensive income (loss)
Balance at September 30, 2019	¥	22,300		¥	786		¥	(27,116	)	¥	(79,587	)	¥	(13,511	)	¥	(97,128	)
Net unrealized gains (losses) on investment in securities, net of tax of ¥1,116 million		(2,838	)														(2,838	)
Reclassification adjustment included in net income, net of tax of ¥313 million		(789	)														(789	)
Debt valuation adjustments, net of tax of ¥21 million					(54	)											(54	)
Reclassification adjustment included in net income, net of tax of ¥5 million					(14	)											(14	)
Defined benefit pension plans, net of tax of ¥151 million								(406	)								(406	)
Reclassification adjustment included in net income, net of tax of ¥(40) million								112									112
Foreign currency translation adjustments, net of tax of ¥6,858 million											20,802						20,802
Reclassification adjustment included in net income, net of tax of ¥(348) million											658						658
Net unrealized gains (losses) on derivative instruments, net of tax of ¥(584) million														1,877			1,877
Reclassification adjustment included in net income, net of tax of ¥(109) million														291			291
Total other comprehensive income (loss)		(3,627	)		(68	)		(294	)		21,460			2,168			19,639
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests		1			0			(1	)		200			72			272
Less: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests		0			0			0			145			0			145
Balance at December 31, 2019	¥	18,672		¥	718		¥	(27,409	)	¥	(58,472	)	¥	(11,415	)	¥	(77,906	)

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the nine months ended December 31, 2018 and 2019 are as follows:

	Nine months ended December 31, 2018
Details about accumulated other comprehensive income components	Reclassification adjustment included in net income
	Millions of yen			Consolidated statements of income caption
Net unrealized gains (losses) on investment in securities
Sales of debt securities	¥	3,211		Gains on investment securities and dividends
Sales of debt securities		1,545		Life insurance premiums and related investment income
Amortization of debt securities		(895	)	Finance revenues
Amortization of debt securities		(128	)	Life insurance premiums and related investment income
Others		(670	)	Write-downs of securities and other
		3,063		Total before income tax
		(731	)	Income tax (expense) or benefit
	¥	2,332		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	27		Life insurance costs
		27		Total before income tax
		(8	)	Income tax (expense) or benefit
	¥	19		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	807		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(692	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(3	)	See Note 16 “Pension Plans”
		112		Total before income tax
		(32	)	Income tax (expense) or benefit
	¥	80		Net of tax
Foreign currency translation adjustments
Sales or liquidation	¥	(2	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(2	)	Total before income tax
		1		Income tax (expense) or benefit
	¥	(1	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	141		Finance revenues/Interest expense
Foreign exchange contracts		(220	)	Other (income) and expense, net
Foreign currency swap agreements		(515	)	Finance revenues/Interest expense/Other (income) and expense, net
		(594	)	Total before income tax
		132		Income tax (expense) or benefit
	¥	(462	)	Net of tax

	Nine months ended December 31, 2019
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 debt securities	¥	2,159		Gains on investment securities and dividends
Sales of debt securities		5,133		Life insurance premiums and related investment income
Amortization of debt securities		(784	)	Finance revenues
Amortization of debt securities		(613	)	Life insurance premiums and related investment income
		5,895		Total before income tax
		(1,700	)	Income tax (expense) or benefit
	¥	4,195		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	44		Life insurance costs
		44		Total before income tax
		(12	)	Income tax (expense) or benefit
	¥	32		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	730		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(1,233	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(2	)	See Note 16 “Pension Plans”
		(505	)	Total before income tax
		142		Income tax (expense) or benefit
	¥	(363	)	Net of tax
Foreign currency translation adjustments
Foreign exchange contracts	¥	(1,875	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense/Other (income) and expense, net
Sales or liquidation		(1,399	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(3,274	)	Total before income tax
		1,058		Income tax (expense) or benefit
	¥	(2,216	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(584	)	Interest expense
Foreign exchange contracts		(255	)	Interest expense
Foreign currency swap agreements		(368	)	Interest expense/Other (income) and expense, net
		(1,207	)	Total before income tax
		323		Income tax (expense) or benefit
	¥	(884	)	Net of tax

Amounts reclassified to net income from accumulated other comprehensive income (loss) in the three months ended December 31, 2018 and 2019 are as follows:

	Three months ended December 31, 2018
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 debt securities	¥	88		Gains on investment securities and dividends
Sales of debt securities		0		Life insurance premiums and related investment income
Amortization of debt securities		(241	)	Finance revenues
Amortization of debt securities		(14	)	Life insurance premiums and related investment income
Others		(113	)	Write-downs of securities and other
		(280	)	Total before income tax
		118		Income tax (expense) or benefit
	¥	(162	)	Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	10		Life insurance costs
		10		Total before income tax
		(3	)	Income tax (expense) or benefit
	¥	7		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	269		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(231	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(1	)	See Note 16 “Pension Plans”
		37		Total before income tax
		(11	)	Income tax (expense) or benefit
	¥	26		Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	4		Finance revenues/Interest expense
Foreign exchange contracts		(230	)	Other (income) and expense, net
Foreign currency swap agreements		579		Finance revenues/Interest expense/Other (income) and expense, net
		353		Total before income tax
		(86	)	Income tax (expense) or benefit
	¥	267		Net of tax

	Three months ended December 31, 2019
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 debt securities	¥	245		Gains on investment securities and dividends
Sales of debt securities		1,578		Life insurance premiums and related investment income
Amortization of debt securities		(405	)	Finance revenues
Amortization of debt securities		(316	)	Life insurance premiums and related investment income
		1,102		Total before income tax
		(313	)	Income tax (expense) or benefit
	¥	789		Net of tax
Debt valuation adjustments
Fulfillment of policy liabilities and amortization of policy account balances	¥	19		Life insurance costs
		19		Total before income tax
		(5	)	Income tax (expense) or benefit
	¥	14		Net of tax
Defined benefit pension plans
Amortization of prior service credit	¥	249		See Note 16 “Pension Plans”
Amortization of net actuarial loss		(401	)	See Note 16 “Pension Plans”
Amortization of transition obligation		(0	)	See Note 16 “Pension Plans”
		(152	)	Total before income tax
		40		Income tax (expense) or benefit
	¥	(112	)	Net of tax
Foreign currency translation adjustments
Foreign exchange contracts	¥	393		Gains on sales of subsidiaries and affiliates and liquidation losses, net/Interest expense/Other (income) and expense, net
Sales or liquidation		(1,399	)	Gains on sales of subsidiaries and affiliates and liquidation losses, net
		(1,006	)	Total before income tax
		348		Income tax (expense) or benefit
	¥	(658	)	Net of tax
Net unrealized gains (losses) on derivative instruments
Interest rate swap agreements	¥	(218	)	Interest expense/Other (income) and expense, net
Foreign exchange contracts		(107	)	Interest expense
Foreign currency swap agreements		(75	)	Interest expense/Other (income) and expense, net
		(400	)	Total before income tax
		109		Income tax (expense) or benefit
	¥	(291	)	Net of tax

XML

Derivative Financial Instruments and Hedging (Derivative instruments fair value hedge assets and liabilities) (Detail) ¥ in Millions	Dec. 31, 2019 JPY (¥)	[1]
Carrying amount	¥ 318,697
The cumulative amount of fair value hedging adjustments included in the carrying amount	13,213
Carrying amount	0
The cumulative amount of fair value hedging adjustments included in the carrying amount	¥ 0

[1] Accumulated fair value hedge adjustments of ¥(1,923) million are included for hedged items for which hedge accounting has been discontinued.

XML

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) - Estimated fair value - Investment in securities - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Not practicable to estimate fair value	¥ 11,878
Investment funds		¥ 12,100

XML

Transfer of Financial Assets - Fair Value of Servicing Assets (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Transfers and Servicing [Abstract]
Beginning balance	¥ 39,846	¥ 35,681
Ending balance	¥ 42,028	¥ 39,846

XML

Revenues from Contracts with Customers - Summary of Revenues from Contracts with Customers, and Other Sources of Revenue (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue From Contract With Customers [Line Items]
Revenues from contracts with customers	¥ 289,145	¥ 325,457	¥ 866,201	¥ 1,052,813
Other revenues	282,556	208,684	818,178	743,342
Total revenues	¥ 571,701	¥ 534,141	¥ 1,684,379	¥ 1,796,155

XML

Fair Value Measurements (Recorded Amounts of Major Assets Measured at Fair Value on Nonrecurring Basis) (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	¥ 186,811	¥ 179,361
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	10,517	26,267
Fair Value, Measurements, Nonrecurring | Loans Held-for-Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis		3,839
Fair Value, Measurements, Nonrecurring | 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	4,494	6,630
Fair Value, Measurements, Nonrecurring | 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	4,462	12,901
Fair Value, Measurements, Nonrecurring | 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	1,561	2,897
Fair Value, Measurements, Nonrecurring | 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
Fair Value, Measurements, Nonrecurring | Level 1 | Loans Held-for-Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis		0
Fair Value, Measurements, Nonrecurring | 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
Fair Value, Measurements, Nonrecurring | 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
Fair Value, Measurements, Nonrecurring | 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	0
Fair Value, Measurements, Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	712	3,839
Fair Value, Measurements, Nonrecurring | Level 2 | Loans Held-for-Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis		3,839
Fair Value, Measurements, Nonrecurring | 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
Fair Value, Measurements, Nonrecurring | 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	712	0
Fair Value, Measurements, Nonrecurring | 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	0
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	9,805	22,428
Fair Value, Measurements, Nonrecurring | Level 3 | Loans Held-for-Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis		0
Fair Value, Measurements, Nonrecurring | 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	4,494	6,630
Fair Value, Measurements, Nonrecurring | 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	3,750	12,901
Fair Value, Measurements, Nonrecurring | 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	¥ 1,561	¥ 2,897

XML

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	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2019
Guarantor Obligations [Line Items]
Potential future payment	¥ 1,047,216	¥ 1,059,899
Book value of guarantee liabilities	54,373	55,245
Transferred Loans
Guarantor Obligations [Line Items]
Potential future payment	195,190	175,623
Book value of guarantee liabilities	¥ 1,408	¥ 1,436
Maturity of the longest contract (Years)	2060	2059
Consumer Loans
Guarantor Obligations [Line Items]
Potential future payment	¥ 342,156	¥ 343,119
Book value of guarantee liabilities	¥ 42,406	¥ 42,400
Maturity of the longest contract (Years)	2030	2030
Housing Loans
Guarantor Obligations [Line Items]
Potential future payment	¥ 11,143	¥ 40,395
Book value of guarantee liabilities	¥ 4,513	¥ 4,701
Maturity of the longest contract (Years)	2048	2048
Other Guarantees
Guarantor Obligations [Line Items]
Potential future payment	¥ 186	¥ 263
Book value of guarantee liabilities	¥ 1	¥ 1
Maturity of the longest contract (Years)	2024	2024
Corporate Loans
Guarantor Obligations [Line Items]
Potential future payment	¥ 498,541	¥ 500,499
Book value of guarantee liabilities	¥ 6,045	¥ 6,707
Maturity of the longest contract (Years)	2027	2026

XML

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		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Total other-than-temporary impairment losses	¥ 0	¥ 113	¥ 0	¥ 806
Portion of loss recognized in other comprehensive income (before taxes)	0	0	0	(136)
Net impairment losses recognized in earnings	¥ 0	¥ 113	¥ 0	¥ 670

XML

Selling, General and Administrative Expenses (Summary of Selling, General and Administrative Expenses) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Selling, General and Administrative Expense [Abstract]
Personnel expenses	¥ 66,736	¥ 61,434	¥ 192,526	¥ 183,872
Selling expenses	18,578	20,009	53,759	56,892
Administrative expenses	29,361	26,674	86,033	75,783
Depreciation of office facilities	1,888	1,321	5,436	3,537
Total	¥ 116,563	¥ 109,438	¥ 337,754	¥ 320,084

XML

Accumulated Other Comprehensive Income (Loss) (Changes in Components of Accumulated Other Comprehensive Income (Loss)) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Net unrealized gains (losses) on derivative instruments
Net unrealized gains (losses), tax	¥ (584)	¥ 212	¥ 996	¥ 174
Reclassification adjustment included in net income, tax	(109)	86	(323)	(132)
Foreign currency translation adjustments
Net unrealized gains (losses), tax	6,858	(8,709)	(823)	155
Reclassification adjustment included in net income, tax	(348)	0	(1,058)	(1)
Defined benefit pension plans
Net unrealized gains (losses), tax	151	(94)	(32)	(71)
Reclassification adjustment included in net income, tax	(40)	11	(142)	32
Net unrealized gains (losses) on investment in securities
Net unrealized gains (losses), tax	1,116	(114)	(2,053)	(256)
Reclassification adjustment included in net income, tax	313	(118)	1,700	731
Debt valuation adjustments
Net unrealized gains (losses), tax	21	(153)	(65)	(127)
Reclassification adjustment included in net income, tax	¥ 5	¥ 3	¥ 12	¥ 8

XML

Write-Downs of Long-Lived Assets (Tables)

9 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Long-Lived Assets Classified as Held for Sale

As of March 31, 2019 and December 31, 2019, the long-lived assets and liabilities associated with those assets classified as held for sale in the accompanying consolidated balance sheets are as follows.

	Millions of yen
	As of March 31, 2019		As of December 31, 2019
Investment in operating leases	¥	24,956	¥	37,875
Property under facility operations		44,473		0
Other assets		19		812

Breakdowns of Recognized Impairment Losses for Difference between Carrying Amounts and Fair Values Reflected as Write-Downs of Long-Lived Assets

For the nine months ended December 31, 2018 and 2019, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥26 million and ¥554 million, respectively, which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.

	Nine months ended December 31, 2018				Nine months ended December 31, 2019
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Write-downs due to decline in estimated future cash flows:
Commercial facilities other than office buildings	¥	16		1	¥	529		2
Others *		10		—		25		—
Total	¥	26		—	¥	554		—

* For the “Others,” the number of properties is omitted.

For the three months ended December 31, 2018, there were no impairment losses. For the three months ended December 31, 2019, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥518 million which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.

	Three months ended December 31, 2018				Three months ended December 31, 2019
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Write-downs due to decline in estimated future cash flows:
Commercial facilities other than office buildings	¥	0		—	¥	509		1
Others *		0		—		9		—
Total	¥	0		—	¥	518		—

* For the “Others,” the number of properties is omitted.

XML

Variable Interest Entities (Tables)

9 Months Ended

Dec. 31, 2019

Variable Interest Entity, Primary Beneficiary

Information about Variable Interest Entities (Consolidated and Non-consolidated)

Information about VIEs (consolidated and non-consolidated) for the Company and its subsidiaries are as follows:

1. Consolidated VIEs

March 31, 2019

	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		2,014		0		0		0
(c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business		94,404		31,208		49,587		0
(d) VIEs for corporate rehabilitation support business		564		30		0		0
(e) VIEs for investment in securities		72,347		121		42		0
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		228,859		175,115		228,859		0
(g) VIEs for securitization of loan receivable originated by third parties		2,264		2,729		2,264		0
(h) VIEs for power generation projects		282,739		195,915		242,937		54,533
(i) Other VIEs		149,333		45,082		120,312		0
Total	¥	832,524	¥	450,200	¥	644,001	¥	54,533
December 31, 2019
	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		2,485		1		0		0
(c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business		89,455		16,597		18,204		0
(d) VIEs for corporate rehabilitation support business		750		262		0		0
(e) VIEs for investment in securities		64,121		44		0		0
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		221,885		129,068		221,885		0
(g) VIEs for securitization of loan receivable originated by third parties		2,495		3,193		2,495		0
(h) VIEs for power generation projects		397,330		285,406		356,841		42,015
(i) Other VIEs		170,143		71,216		150,321		0
Total	¥	948,664	¥	505,787	¥	749,746	¥	42,015

*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 VIEs

March 31, 2019

	Millions of yen
			Carrying amount of the variable interests in the VIEs held by the  Company and its subsidiaries				Maximum exposure to loss *
Types of VIEs	Total assets		Non-recourse loans		Investments
(a) VIEs for liquidating customer assets	¥	8,524	¥	0	¥	991	¥	991
(b) VIEs for acquisition of real estate and real estate development projects for customers		34,872		0		3,426		3,426
(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		3,493,461		0		60,329		81,337
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		0		0		0		0
(g) VIEs for securitization of loan receivable originated by third parties		982,353		0		21,768		21,776
(h) VIEs for power generation projects		26,495		0		1,783		1,783
(i) Other VIEs		391,602		3,200		32,569		37,947
Total	¥	4,937,307	¥	3,200	¥	120,866	¥	147,260
December 31, 2019
	Millions of yen
			Carrying amount of the variable interests in the VIEs held by the Company and its subsidiaries				Maximum exposure to loss *
Types of VIEs	Total assets		Non-recourse loans		Investments
(a) VIEs for liquidating customer assets	¥	8,452	¥	0	¥	991	¥	991
(b) VIEs for acquisition of real estate and real estate development projects for customers		36,619		0		2,527		2,527
(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		3,723,534		0		56,979		74,001
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		0		0		0		0
(g) VIEs for securitization of loan receivable originated by third parties		1,128,788		0		17,227		17,233
(h) VIEs for power generation projects		25,264		0		1,709		1,709
(i) Other VIEs		195,637		2,929		11,449		14,495
Total	¥	5,118,294	¥	2,929	¥	90,882	¥	110,956

* 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.

XML

ORIX Corporation Shareholders' Equity (Tables)

9 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Changes in Number of Shares Issued

Information about ORIX Corporation Shareholders’ Equity for the nine months ended December 31, 2018 and 2019 are as follows:

(1) Dividend payments

	Nine months ended December 31, 2018	Nine months ended December 31, 2019
Resolution	The board of directors on May 21, 2018	The board of directors on May 22, 2019
Type of shares	Common stock	Common stock
Total dividends paid	¥49,984 million	¥58,962 million
Dividend per share	¥39.00	¥46.00
Date of record for dividend	March 31, 2018	March 31, 2019
Effective date for dividend	June 5, 2018	June 3, 2019
Dividend resource	Retained earnings	Retained earnings

Resolution	The board of directors on October 26, 2018	The board of directors on October 28, 2019
Type of shares	Common stock	Common stock
Total dividends paid	¥38,453 million	¥44,862 million
Dividend per share	¥30.00	¥35.00
Date of record for dividend	September 30, 2018	September 30, 2019
Effective date for dividend	December 4, 2018	December 3, 2019
Dividend resource	Retained earnings	Retained earnings

XML

Pension Plans

9 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Pension Plans

16. Pension Plans

The Company and certain subsidiaries have contributory and non-contributory pension plans covering substantially all of their employees. Those contributory funded pension plans include defined benefit pension plans and defined contribution pension plans. Under the plans, employees are entitled to lump-sum payments at the time of termination of their employment or pension payments. Defined benefit pension plans consist of a plan of which the amounts of such payments are determined on the basis of length of service and remuneration at the time of termination and a cash balance plan.

The Company and its subsidiaries’ funding policy is to contribute annually the amounts actuarially determined. Assets of the plans are invested primarily in debt securities and marketable equity securities.

Net periodic pension cost for the nine months ended December 31, 2018 and 2019 consists of the following:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Japanese plans:
Service cost	¥	4,144		¥	4,384
Interest cost		542			438
Expected return on plan assets		(2,042	)		(2,083	)
Amortization of prior service credit		(673	)		(615	)
Amortization of net actuarial loss		633			865
Amortization of transition obligation		0			0
Net periodic pension cost	¥	2,604		¥	2,989
	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Overseas plans:
Service cost	¥	2,433		¥	2,649
Interest cost		1,484			1,275
Expected return on plan assets		(3,292	)		(3,242	)
Amortization of prior service credit		(134	)		(115	)
Amortization of net actuarial loss		59			368
Amortization of transition obligation		3			2
Net periodic pension cost	¥	553		¥	937

Note: The components of net periodic pension cost other than the service cost component are included in personnel expenses, which is included in selling, general and administrative expenses in the consolidated statements of income.

Net pension cost of the plans for the three months ended December 31, 2018 and 2019 consists of the following:

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Japanese plans:
Service cost	¥	1,382		¥	1,507
Interest cost		181			151
Expected return on plan assets		(680	)		(713	)
Amortization of prior service credit		(225	)		(210	)
Amortization of net actuarial loss		211			288
Amortization of transition obligation		0			0
Net periodic pension cost	¥	869		¥	1,023
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Overseas plans:
Service cost	¥	802		¥	883
Interest cost		491			426
Expected return on plan assets		(1,090	)		(1,101	)
Amortization of prior service credit		(44	)		(39	)
Amortization of net actuarial loss		20			113
Amortization of transition obligation		1			0
Net periodic pension cost	¥	180		¥	282

Note: The components of net periodic pension cost other than the service cost component are included in personnel expenses, which is included in selling, general and administrative expenses in the consolidated statements of income.

XML

Redeemable Noncontrolling Interests

9 Months Ended

Dec. 31, 2019

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interests

12.  Redeemable Noncontrolling Interests

Changes in redeemable noncontrolling interests for the nine months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Beginning balance	¥	7,420		¥	9,780
Comprehensive income
Net income		434			359
Other comprehensive income (loss)
Net change of foreign currency translation adjustments		326			(130	)
Total other comprehensive income (loss)		326			(130	)
Comprehensive income		760			229
Dividends		(501	)		(289	)
Ending balance	¥	7,679		¥	9,720

XML

Derivative Financial Instruments and Hedging

9 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging

20. 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, 2019 and December 31, 2019.

(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 exchange contracts to minimize foreign currency exposures on bonds in foreign currencies. The Company and certain overseas subsidiaries use interest rate swap agreements to hedge interest rate exposure of the fair values of National government bonds in foreign currencies.

(c) Hedges of net investment in foreign operations

The Company uses foreign exchange contracts and borrowings and bonds denominated in foreign 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, for the nine months ended December 31, 2018 is as follows.

(1) Cash flow hedges

	Gains (losses) recognized in other comprehensive income on derivative (effective portion)			Gains (losses) reclassified from 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	¥	(1,529	)	Finance revenues/Interest expense	¥	141		—	¥	0
Foreign exchange contracts		252		Other (income) and expense, net		(220	)	—		0
Foreign currency swap agreements		577		Finance revenues/Interest expense/Other (income) and expense, net		(515	)	—		0

(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	¥	(4,553	)	Finance revenues/Interest expense	¥	4,553	Finance revenues/Interest expense
Foreign exchange contracts		(3,834	)	Other (income) and expense, net		3,711	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 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	¥	2,500		Gains on sales of subsidiaries and affiliates and liquidation losses, net	¥	(115	)	—	¥	0
Borrowings and bonds in foreign currencies		(7,377	)	—		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	¥	1,013		Other (income) and expense, net
Futures		2,573		Gains on investment securities and dividends Life insurance premiums and related investment income *
Foreign exchange contracts		(2,037	)	Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net
Credit derivatives held		59		Other (income) and expense, net
Options held/written and other		(1,077	)	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 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 nine months ended December 31, 2018 (see Note 17 “Life Insurance Operations”).

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the nine months ended December 31, 2019 is as follows.

(1) Cash flow hedges

	Millions of yen
	Gains (losses)  recognized in other comprehensive     income on derivative			Gains (losses) reclassified  from other comprehensive income (loss) into income
				Interest expense		Other (income) and expense, net
Interest rate swap agreements	¥	(4,610	)	¥	584	¥	0
Foreign exchange contracts		(369	)		255		0
Foreign currency swap agreements		(461	)		260		108

(2) Fair value hedges

	Millions of yen
	Gains (losses) recognized in income on derivative and other					Gains (losses) recognized in income on hedged item
	Life insurance premiums  and related investment income			Other (income) and      expense, net		Life insurance premiums   and related investment income			Other (income) and     expense, net
Interest rate swap agreements	¥	(5,794	)	¥	0	¥	5,431		¥	0
Foreign exchange contracts		1,172			153		(910	)		(128	)

(3) Hedges of net investment in foreign operations

	Millions of yen
	Gains (losses) recognized in other comprehensive income on derivative and others		Gains (losses) reclassified  from other comprehensive income (loss) into income (Millions of yen)
			Gains on sales of subsidiaries and affiliates and liquidation  losses, net		Interest expense		Other (income) and expense, net
Foreign exchange contracts	¥	4,380	¥	1,594	¥	3,448	¥	21
Borrowings and bonds in foreign currencies		8,342		0		0		0
(4) Derivatives not designated as hedging instruments

	Millions of yen
	Gains (losses) recognized in income on derivative (Millions of  yen)
	Life insurance premiums and related investment income *			Interest expense		Other (income) and    expense, net
Interest rate swap agreements	¥	0		¥	5	¥	120
Futures		(3,292	)		0		2,367
Foreign exchange contracts		177			3,635		1,494
Credit derivatives held		0			0		(6	)
Options held/written and other		(180	)		0		1,202

* 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 nine months ended December 31, 2019 (see Note 17 “Life Insurance Operations”).

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the three months ended December 31, 2018 is as follows.

(1) Cash flow hedges

	Gains (losses) recognized in other comprehensive income on derivative (effective portion)			Gains (losses) reclassified from 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	¥	(2,252	)	Finance revenues/Interest expense	¥	4		—	¥	0
Foreign exchange contracts		9		Other (income) and expense, net		(230	)	—		0
Foreign currency swap agreements		1,544		Finance revenues/Interest expense /Other (income) and expense, net		579		—		0

(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		(5,781	)	Finance revenues/Interest expense		5,781		Finance revenues/Interest expense
Foreign exchange contracts		830		Other (income) and expense, net		(953	)	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 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	¥	4,234	—	¥	0	—	¥	0
Borrowings and bonds in foreign currencies		14,711	—		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	¥	(134	)	Other (income) and expense, net
Futures		5,257		Gains on investment securities and dividends Life insurance premiums and related investment income *
Foreign exchange contracts		5,819		Gains on investment securities and dividends Life insurance premiums and related investment income * Other (income) and expense, net
Credit derivatives held		40		Other (income) and expense, net
Options held/written and other		(1,350	)	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 December 31, 2018 (see Note 17 “Life Insurance Operations”).

The effect of derivative instruments on the consolidated statements of income, pre-tax, for the three months ended December 31, 2019 is as follows.

(1) Cash flow hedges

	Millions of yen
	Gains (losses) recognized in other comprehensive         income on derivative			Gains (losses) reclassified from other comprehensive income (loss) into income
				Interest expense			Other (income) and expense, net
Interest rate swap agreements	¥	2,481		¥	218		¥	0
Foreign exchange contracts		(255	)		107			0
Foreign currency swap agreements		235			(25	)		100

(2) Fair value hedges

	Millions of yen
	Gains (losses) recognized in income on derivative and other					Gains (losses) recognized in income on hedged item
	Life insurance premiums and related investment income			Other (income) and expense, net		Life insurance premiums and related investment income			Other (income) and expense, net
Interest rate swap agreements	¥	3,346		¥	0	¥	(3,299	)	¥	0
Foreign exchange contracts		(934	)		127		1,370			(98	)

(3) Hedges of net investment in foreign operations

	Millions of yen
	Gains (losses) recognized in other comprehensive income on derivative and others			Gains (losses) reclassified from other comprehensive income (loss) into income (Millions of yen)
				Gains on sales of subsidiaries and affiliates and liquidation losses, net		Interest expense		Other (income) and expense, net
Foreign exchange contracts	¥	(12,324	)	¥	1,594	¥	1,194	¥	7
Borrowings and bonds in foreign currencies		(10,477	)		0		0		0
(4) Derivatives not designated as hedging instruments

	Millions of yen
	Gains (losses) recognized in income on derivative (Millions of yen)
	Life insurance premiums and related investment income*			Interest expense		Other (income) and    expense, net
Interest rate swap agreements	¥	0		¥	2	¥	(12	)
Futures		(2,284	)		0		1,760
Foreign exchange contracts		(337	)		1,119		6,017
Credit derivatives held		0			0		10
Options held/written and other		(85	)		0		1,328

* 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 December 31, 2019 (see Note 17 “Life Insurance Operations”).

The effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income, pre-tax, for the nine months ended December 31, 2019 is as follows.

Fair value hedges

	Millions of yen
	Gains (losses) reclassified from other comprehensive income (loss) into income
	Life insurance premiums and related investment income
Foreign exchange contracts	¥	(1,324	)

The effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income, pre-tax, for the three months ended December 31, 2019 is as follows.

Fair value hedges

	Millions of yen
	Gains (losses) reclassified from other comprehensive income (loss) into income
	Life insurance premiums and related investment income
Foreign exchange contracts	¥	(904	)

The carrying amount of hedged assets and liabilities recognized in balance sheets in fair value hedges and the cumulative amount of fair value hedging adjustments included in the carrying amount at December 31, 2019 is as follows.

Assets as hedged items in fair value hedges					Liabilities as hedged items in fair value hedges
	Millions of yen					Millions of yen
Consolidated balance sheets location	Carrying amount		The cumulative amount of fair value hedging adjustments included in the carrying amount		Consolidated balance sheets location	Carrying amount		The cumulative amount of fair value hedging adjustments included in the carrying amount
Investment in Securities *	¥	318,697	¥	13,213	—	¥	0	¥	0

* Accumulated fair value hedge adjustments of ¥(1,921) million are included for hedged items for which hedge accounting has been discontinued.

Notional amounts of derivative instruments and other, fair values of derivative instruments and other before offsetting at March 31, 2019 and December 31, 2019 are as follows.

March 31, 2019

			Derivative assets			Derivative liabilities
	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	¥	498,874	¥	11	Other Assets	¥	17,320	Other Liabilities
Futures, foreign exchange contracts		505,909		1,888	Other Assets		3,177	Other Liabilities
Foreign currency swap agreements		65,575		1,203	Other Assets		364	Other Liabilities
Foreign currency long-term debt		641,127		0	—		0	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	¥	60,657	¥	127	Other Assets	¥	119	Other Liabilities
Options held/written and other *		556,668		11,140	Other Assets		2,809	Other Liabilities
Futures, foreign exchange contracts *		320,710		1,119	Other Assets		2,159	Other Liabilities
Credit derivatives held		262		7	Other Assets		10	Other Liabilities

* The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥34,701 million, futures contracts of ¥37,359 million and foreign exchange contracts of ¥13,171 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥206 million, ¥248 million and ¥30 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥258 million and ¥173 million at March 31, 2019, respectively.

December 31, 2019

			Derivative assets			Derivative liabilities
	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	¥	504,636	¥	158	Other Assets	¥	24,703	Other Liabilities
Options held/written and other		949		5	Other Assets		0	—
Futures, foreign exchange contracts		509,650		25	Other Assets		9,753	Other Liabilities
Foreign currency swap agreements		66,422		1,421	Other Assets		965	Other Liabilities
Foreign currency long-term debt		618,412		0	—		0	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	¥	7,183	¥	9	Other Assets	¥	65	Other Liabilities
Options held/written and other *		490,428		13,687	Other Assets		10,960	Other Liabilities
Futures, foreign exchange contracts *		323,990		378	Other Assets		4,742	Other Liabilities

* The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥25,225 million, futures contracts of ¥30,042 million and foreign exchange contracts of ¥9,716 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at December 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥16 million, ¥0 million and ¥6 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥34 million and ¥114 million at December 31, 2019, respectively.

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Statement of Financial Position [Abstract]
Installment Loans, fair value	¥ 43,238	¥ 38,671
Investment in securities, measured at fair value	25,583	27,367
Other assets, measured at fair value	9,219	12,449
Policy Liabilities and Policy Account Balances	¥ 333,017	¥ 360,198

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - JPY (¥) ¥ in Millions	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash Flows from Operating Activities:
Net income	¥ 247,809	¥ 239,028
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	223,844	217,993
Principal payments received under net investment in leases	342,961	0
Provision for doubtful receivables and probable loan losses	15,724	14,075
Equity in net income of affiliates (excluding interest on loans)	(52,685)	(13,793)
Gains on sales of subsidiaries and affiliates and liquidation losses, net	(58,488)	(20,470)
Bargain purchase gain	(1,022)	0
Gains on sales of securities other than trading	(16,961)	(6,685)
Gains on sales of operating lease assets	(37,278)	(50,445)
Write-downs of long-lived assets	554	26
Write-downs of securities	36	821
Decrease in trading securities	18,489	61,607
Increase in inventories	(9,546)	(24,011)
Decrease (Increase) in trade notes, accounts and other receivable	(676)	2,486
Decrease in trade notes, accounts and other payable	(41,358)	(28,794)
Increase (Decrease) in policy liabilities and policy account balances	52,805	(21,596)
Other, net	36,481	11,368
Net cash provided by operating activities	720,689	381,610
Cash Flows from Investing Activities:
Purchases of lease equipment	(733,861)	(759,080)
Principal payments received under direct financing leases	0	351,947
Installment loans made to customers	(1,152,489)	(1,075,480)
Principal collected on installment loans	824,870	953,742
Proceeds from sales of operating lease assets	221,689	358,586
Investment in affiliates, net	(25,467)	(287,822)
Proceeds from sales of investment in affiliates	67,865	44,705
Purchases of available-for-sale debt securities	(582,552)	(412,247)
Proceeds from sales of available-for-sale debt securities	210,817	190,698
Proceeds from redemption of available-for-sale debt securities	67,905	59,943
Purchases of equity securities other than trading	(29,753)	(56,741)
Proceeds from sales of equity securities other than trading	27,279	68,030
Purchases of property under facility operations	(24,915)	(51,139)
Acquisitions of subsidiaries, net of cash acquired	(11,390)	(116,545)
Sales of subsidiaries, net of cash disposed	72,710	(39)
Other, net	(20,363)	34,181
Net cash used in investing activities	(1,087,655)	(697,261)
Cash Flows from Financing Activities:
Net increase in debt with maturities of three months or less	60,958	187,445
Proceeds from debt with maturities longer than three months	518,207	758,286
Repayment of debt with maturities longer than three months	(612,954)	(677,665)
Net increase in deposits due to customers	241,520	126,669
Cash dividends paid to ORIX Corporation shareholders	(103,824)	(88,438)
Acquisition of treasury stock	(13,285)	(706)
Contribution from noncontrolling interests	19,355	14,104
Purchases of shares of subsidiaries from noncontrolling interests	(3,506)	(69,508)
Net increase in call money	5,000	5,000
Other, net	(2,965)	(8,448)
Net cash provided by financing activities	108,506	246,739
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(4,511)	(1,006)
Net decrease in Cash, Cash Equivalents and Restricted Cash	(262,971)	(69,918)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	1,283,580	1,405,117
Cash, Cash Equivalents and Restricted Cash at End of Period	¥ 1,020,609	¥ 1,335,199

XML

Investment in Securities (Tables)

9 Months Ended

Dec. 31, 2019

Investments Schedule [Abstract]

Summary of Investment in Securities

Investment in securities as of March 31, 2019 and December 31, 2019 consists of the following:

	Millions of yen
	March 31, 2019		December 31, 2019
Equity securities *	¥	549,047	¥	537,004
Trading debt securities		1,564		1,371
Available-for-sale debt securities		1,264,244		1,576,349
Held-to-maturity debt securities		114,061		113,880
Total	¥	1,928,916	¥	2,228,604

* The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥324,220 million and ¥306,524 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥75,923 million and ¥70,556 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds elected for the fair value option included in equity securities were ¥5,811 million and ¥5,997 million as of March 31, 2019 and December 31, 2019, respectively.

Summary of Impairment and Downward or Upward Adjustment Due to Changes of Observable Price

The following tables provide information about impairment and upward or downward adjustments resulting from observable price changes as of March 31, 2019 and December 31, 2019, and for the nine and three months ended December 31, 2018 and 2019.

	Millions of yen
	March 31, 2019							Nine months ended December 31, 2018					Three months ended December 31, 2018
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments		Upward adjustments
Equity securities measured using the measurement alternative	¥	35,431	¥	(1,688	)	¥	18	¥	(151	)	¥	0	¥	0	¥	0
	Millions of yen
	December 31, 2019							Nine months ended December 31, 2019					Three months ended December 31, 2019
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments		Upward adjustments
Equity securities measured using the measurement alternative	¥	37,137	¥	(1,495	)	¥	61	¥	(38	)	¥	43	¥	0	¥	5

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 debt securities and held-to-maturity debt securities in each major security type as of March 31, 2019 and December 31, 2019 are as follows:

March 31, 2019

	Millions of yen
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	416,218	¥	20,133	¥	(5,500	)	¥	430,851
Japanese prefectural and foreign municipal bond securities		189,792		3,749		(236	)		193,305
Corporate debt securities		485,156		5,205		(2,364	)		487,997
CMBS and RMBS in the Americas		59,954		2,566		(1,041	)		61,479
Other asset-backed securities and debt securities		88,620		3,381		(1,389	)		90,612
		1,239,740		35,034		(10,530	)		1,264,244
Held-to-maturity debt securities:
Japanese government bond securities and other		114,061		30,265		0			144,326
	¥	1,353,801	¥	65,299	¥	(10,530	)	¥	1,408,570

December 31, 2019

	Millions of yen
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	578,705	¥	21,685	¥	(9,155	)	¥	591,235
Japanese prefectural and foreign municipal bond securities		234,273		4,639		(624	)		238,288
Corporate debt securities		588,853		9,187		(3,285	)		594,755
CMBS and RMBS in the Americas		56,764		2,538		(1,340	)		57,962
Other asset-backed securities and debt securities		92,338		3,369		(1,598	)		94,109
		1,550,933		41,418		(16,002	)		1,576,349
Held-to-maturity debt securities:
Japanese government bond securities and other		113,880		30,642		0			144,522
	¥	1,664,813	¥	72,060	¥	(16,002	)	¥	1,720,871

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 debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2019 and December 31, 2019, respectively:

March 31, 2019

	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 debt securities:
Japanese and foreign government bond securities	¥	51,551	¥	(1,119	)	¥	98,830	¥	(4,381	)	¥	150,381	¥	(5,500	)
Japanese prefectural and foreign municipal bond securities		1,329		(35	)		4,510		(201	)		5,839		(236	)
Corporate debt securities		9,156		(18	)		68,924		(2,346	)		78,080		(2,364	)
CMBS and RMBS in the Americas		10,194		(362	)		7,147		(679	)		17,341		(1,041	)
Other asset-backed securities and debt securities		10,253		(411	)		28,748		(978	)		39,001		(1,389	)
	¥	82,483	¥	(1,945	)	¥	208,159	¥	(8,585	)	¥	290,642	¥	(10,530	)
December 31, 2019
	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 debt securities:
Japanese and foreign government bond securities	¥	86,920	¥	(2,228	)	¥	153,775	¥	(6,927	)	¥	240,695	¥	(9,155	)
Japanese prefectural and foreign municipal bond securities		71,088		(623	)		220		(1	)		71,308		(624	)
Corporate debt securities		152,919		(1,351	)		23,731		(1,934	)		176,650		(3,285	)
CMBS and RMBS in the Americas		8,700		(273	)		8,715		(1,067	)		17,415		(1,340	)
Other asset-backed securities and debt securities		13,573		(254	)		26,723		(1,344	)		40,296		(1,598	)
	¥	333,200	¥	(4,729	)	¥	213,164	¥	(11,273	)	¥	546,364	¥	(16,002	)

Total Other-Than-Temporary Impairment with Offset for Amount of Total Other-Than-Temporary Impairment Recognized in Other Comprehensive Income

The other-than-temporary impairment losses recognized in other comprehensive income (loss) and earnings for the nine and three months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Total other-than-temporary impairment losses	¥	806		¥	0
Portion of loss recognized in other comprehensive income (before taxes)		(136	)		0
Net impairment losses recognized in earnings	¥	670		¥	0
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Total other-than-temporary impairment losses	¥	113		¥	0
Portion of loss recognized in other comprehensive income (before taxes)		0			0
Net impairment losses recognized in earnings	¥	113		¥	0

Roll-Forwards of Amount of Accumulated Other-Than-Temporary Impairments Related to Credit Losses

For debt securities held as of December 31, 2018 and 2019, roll-forwards of the amount of accumulated other-than-temporary impairments related to credit losses for the nine and three months ended December 31, 2018 and 2019 are as follows. The amount mainly consists of CMBS and RMBS in the Americas and foreign municipal bond securities:
	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Beginning	¥	1,021		¥	2,102
Addition during the period:
Credit loss for which an other-than-temporary impairment was not previously recognized		551			0
Reduction during the period:
For securities sold or redeemed		(22	)		0
Ending	¥	1,550		¥	2,102
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Beginning	¥	1,550		¥	2,102
Ending	¥	1,550		¥	2,102

XML

Commitments, Guarantees and Contingent Liabilities

9 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments, Guarantees and Contingent Liabilities

23. Commitments, Guarantees and Contingent Liabilities

Commitments—The Company and certain subsidiaries have commitments for the purchase of equipment to be leased, having a cost of ¥210 million and ¥30 million as of March 31, 2019 and December 31, 2019, respectively.

The minimum future rentals on non-cancelable operating leases as of March 31, 2019 are as follows:

Years ending March 31,	Millions of yen
2020	¥	7,694
2021		6,647
2022		5,923
2023		5,434
2024		4,802
Thereafter		34,485
Total	¥	64,985

The Company and certain subsidiaries lease lands under fixed-term land lease agreements, which are cancelable when certain conditions are met. The future maximum lease commitment under such arrangements at March 31, 2019 totals ¥57,388 million through March 31, 2024 and ¥64,222 million thereafter.

The Company and certain subsidiaries lease office space under operating lease agreements, which are primarily cancelable, and made rental payments totaling ¥17,564 million in fiscal 2019.

Certain computer systems of the Company and certain subsidiaries have been operated and maintained under non-cancelable contracts with third-party service providers. For such services, the Company and certain subsidiaries made payments totaling ¥4,266 million and ¥5,301 million for the nine months ended December 31, 2018 and 2019, respectively, and ¥1,673 million and ¥1,787 million for the three months ended December 31, 2018 and 2019, respectively. As of March 31, 2019 and December 31, 2019, the amounts due are as follows:

	Millions of yen
	March 31, 2019		December 31, 2019
Within one year	¥	4,323	¥	3,905
More than one year		3,185		4,579
Total	¥	7,508	¥	8,484

The Company and certain subsidiaries have commitments to fund estimated construction costs and so forth to complete ongoing real estate development projects and other commitments, totaling ¥121,647 million and ¥81,982 million as of March 31, 2019 and December 31, 2019, 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 ¥375,238 million and ¥398,065 million as of March 31, 2019 and December 31, 2019, respectively.

Guarantees—At the inception of a guarantee, the Company and its subsidiaries recognize a liability in the consolidated balance sheets at fair value for the guarantee within the scope of ASC460 (“Guarantees”). 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, 2019 and December 31, 2019:

	March 31, 2019						December 31, 2019
	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	¥	500,499	¥	6,707		2026	¥	498,541	¥	6,045		2027
Transferred loans		175,623		1,436		2059		195,190		1,408		2060
Consumer loans		343,119		42,400		2030		342,156		42,406		2030
Housing loans		40,395		4,701		2048		11,143		4,513		2048
Other		263		1		2024		186		1		2024
Total	¥	1,059,899	¥	55,245		—	¥	1,047,216	¥	54,373		—

Guarantee of corporate loans: The Company and certain subsidiaries mainly guarantee corporate loans issued by financial institutions for customers. The Company and the subsidiaries are obliged to pay the outstanding loans when the guaranteed customers fail to pay principal and/or interest in accordance with the contract terms. In some cases, the corporate loans are secured by the guaranteed customers’ assets. Once the Company and the subsidiaries assume the guaranteed customers’ obligation, the Company and the subsidiaries obtain a right to claim the collateral assets. In other cases, certain contracts that guarantee corporate loans issued by financial institutions for customers include contracts that the amounts of performance guarantee are limited to a certain range of guarantee commissions. As of March 31, 2019 and December 31, 2019, total notional amount of the loans subject to such guarantees are ¥1,089,000 million and ¥1,099,000 million, respectively, and book value of guarantee liabilities are ¥2,559 million and ¥2,518 million, respectively. The potential future payment amounts for these guarantees are limited to a certain range of the guarantee commissions, which are less than the total notional amounts of the loans subject to these guarantees. The potential future payment amounts for the contract period are calculated from the guarantee limit which is arranged by financial institutions in advance as to contracts that the amounts of performance guarantee are unlimited to a certain range of guarantee commissions. For this reason, the potential future payment amounts for these guarantees include the amount of the guarantee which may occur in the future, which is larger than the balance of guarantee executed as of the end of fiscal year or the end of interim period. The executed guarantee balance includes defrayment by financial institutions which we bear temporarily at the time of execution, and credit risk for financial institutions until liquidation of this guarantee. Our substantial amounts of performance guarantee except credit risk for financial institutions are limited to our defrayment which is arranged by financial institutions in advance.

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 nine months ended December 31, 2019.

Guarantee of transferred loans: A subsidiary in the United States is authorized to underwrite, originate, fund, and service multi-family and seniors housing loans without prior approval from Fannie Mae under Fannie Mae’s Delegated Underwriting and Servicing program. As part of this program, Fannie Mae provides a commitment to purchase the 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 nine months ended December 31, 2019.

As of March 31, 2019 and December 31, 2019, the total outstanding principal amount of loans transferred under the Delegated Underwriting and Servicing program, for which the subsidiary guarantees to absorb some of the losses, were ¥593,062 million and ¥620,718 million, respectively.

Guarantee of consumer loans: A certain subsidiary guarantees consumer loans, typically card loans, issued by Japanese financial institutions. The subsidiary is obligated to pay the outstanding obligations when these loans become delinquent generally a month or more.

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 nine months ended December 31, 2019.

Guarantee of housing loans: The Company and certain subsidiaries guarantee housing loans issued by Japanese financial institutions to third party individuals. The Company and the subsidiaries are typically obliged to pay the outstanding loans when these loans become delinquent three months or more. The housing loans are usually secured by the real properties. Once the Company and the subsidiaries assume the guaranteed parties’ obligation, the Company and the subsidiaries obtain a right to claim the collateral assets.

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 nine months ended December 31, 2019.

Other guarantees: Other guarantees include the guarantees to financial institutions and the guarantees derived from collection agency agreements. Pursuant to the contracts of the guarantees to financial institutions, a certain subsidiary pays to the financial institutions when customers of the financial institutions become debtors and default on the debts. Pursuant to the agreements of the guarantees derived from collection agency agreements, the Company and certain subsidiaries collect third parties’ debt and pay the uncovered amounts.

Litigation—The Company and certain subsidiaries are involved in legal proceedings and claims in the ordinary course of business. In the opinion of management, none of such proceedings and claims will have a significant impact on the Company’s financial position or results of operations.

Collateral—Other than the assets of the consolidated VIEs pledged as collateral for financing described in Note 10 “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, 2019 and December 31, 2019:

	Millions of yen
	March 31, 2019		December 31, 2019
Lease payments, loans and investment in operating leases	¥	109,210	¥	130,832
Investment in securities		160,408		162,317
Property under facility operations		31,264		28,250
Other assets and other		28,895		22,168
Total	¥	329,777	¥	343,567

As of March 31, 2019 and December 31, 2019, debt liabilities were secured by shares of subsidiaries, which were eliminated through consolidation adjustment, of ¥33,280 million and ¥80,267 million, respectively, and debt liabilities of affiliates were secured by investment in affiliates of ¥49,125 million and ¥56,320 million, respectively. As of December 31, 2019, debt liabilities were secured by loans to subsidiaries, which were eliminated through consolidation adjustment, of ¥10,794 million. In addition, ¥46,029 million and ¥51,308 million, respectively, were pledged primarily by investment in securities for collateral deposits and deposit for real estate transaction as of March 31, 2019 and December 31, 2019.

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 any time if requested by the lenders. The Company and the subsidiaries did not receive any such requests from the lenders as of December 31, 2019.

XML

Fair Value Measurements (Tables)

9 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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

The following tables present recorded amounts of major financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2019:

March 31, 2019

	Millions of yen
	Total Carrying Value in Consolidated Balance Sheets			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1	¥	38,671		¥	0	¥	38,671	¥	0
Trading debt securities		1,564			0		1,564		0
Available-for-sale debt securities:		1,264,244			24,831		1,138,966		100,447
Japanese and foreign government bond securities*2		430,851			3,227		427,624		0
Japanese prefectural and foreign municipal bond securities		193,305			0		190,417		2,888
Corporate debt securities*3		487,997			21,604		459,235		7,158
CMBS and RMBS in the Americas		61,479			0		61,479		0
Other asset-backed securities and debt securities		90,612			0		211		90,401
Equity securities*4*5		425,593			68,631		295,769		61,193
Derivative assets:		15,495			299		9,924		5,272
Interest rate swap agreements		138			0		138		0
Options held/written and other		11,140			0		5,868		5,272
Futures, foreign exchange contracts		3,007			299		2,708		0
Foreign currency swap agreements		1,203			0		1,203		0
Credit derivatives written		7			0		7		0
Netting*6		(1,497	)		0		0		0
Net derivative assets		13,998			0		0		0
Other assets:		12,449			0		0		12,449
Reinsurance recoverables*7		12,449			0		0		12,449
Total	¥	1,758,016		¥	93,761	¥	1,484,894	¥	179,361
Liabilities:
Derivative liabilities:	¥	25,958		¥	522	¥	25,436	¥	0
Interest rate swap agreements		17,439			0		17,439		0
Options held/written and other		2,809			0		2,809		0
Futures, foreign exchange contracts		5,336			522		4,814		0
Foreign currency swap agreements		364			0		364		0
Credit derivatives held		10			0		10		0
Netting*6		(1,497	)		0		0		0
Net derivative Liabilities		24,461			0		0		0
Policy Liabilities and Policy Account Balances:		360,198			0		0		360,198
Variable annuity and variable life insurance contracts*8		360,198			0		0		360,198
Total	¥	386,156		¥	522	¥	25,436	¥	360,198

December 31, 2019

	Millions of yen
	Total Carrying Value in Consolidated Balance Sheets			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1	¥	43,238		¥	0	¥	43,238	¥	0
Trading debt securities		1,371			0		1,371		0
Available-for-sale debt securities:		1,576,349			22,381		1,453,002		100,966
Japanese and foreign government bond securities*2		591,235			3,585		587,650		0
Japanese prefectural and foreign municipal bond securities		238,288			0		235,437		2,851
Corporate debt securities*3		594,755			18,796		571,743		4,216
CMBS and RMBS in the Americas		57,962			0		57,962		0
Other asset-backed securities and debt securities		94,109			0		210		93,899
Equity securities*4*5		417,433			73,334		277,917		66,182
Derivative assets:		15,683			29		5,210		10,444
Interest rate swap agreements		167			0		167		0
Options held/written and other		13,692			0		3,248		10,444
Futures, foreign exchange contracts		403			29		374		0
Foreign currency swap agreements		1,421			0		1,421		0
Netting*6		(514	)		0		0		0
Net derivative assets		15,169			0		0		0
Other assets:		9,219			0		0		9,219
Reinsurance recoverables*7		9,219			0		0		9,219
Total	¥	2,063,293		¥	95,744	¥	1,780,738	¥	186,811
Liabilities:
Derivative liabilities:	¥	51,188		¥	157	¥	51,004	¥	27
Interest rate swap agreements		24,768			0		24,768		0
Options held/written and other		10,960			0		10,933		27
Futures, foreign exchange contracts		14,495			157		14,338		0
Foreign currency swap agreements		965			0		965		0
Netting*6		(514	)		0		0		0
Net derivative Liabilities		50,674			0		0		0
Policy Liabilities and Policy Account Balances:		333,017			0		0		333,017
Variable annuity and variable life insurance contracts*8		333,017			0		0		333,017
Total	¥	384,205		¥	157	¥	51,004	¥	333,044

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 nine months ended December 31, 2018 and 2019:

Nine months ended December 31, 2018

	Millions of yen
	Balance at April 1, 2018		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2018		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2018 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	120,917	¥	2,032		¥	288		¥	2,320		¥	36,231	¥	(22,186	)	¥	(24,476	)	¥	(20,101	)	¥	92,705	¥	304
Japanese prefectural and foreign municipal bond securities		0		0			(7	)		(7	)		0		0			0			3,305			3,298		0
Corporate debt securities		3,037		0			5			5			0		0			(685	)		0			2,357		0
CMBS and RMBS in the Americas		36,010		1,034			546			1,580			1,304		(6,711	)		(8,777	)		(23,406	)		0		0
Other asset-backed securities and debt securities		81,870		998			(256	)		742			34,927		(15,475	)		(15,014	)		0			87,050		304
Equity securities		37,879		1,957			523			2,480			34,613		(18,352	)		0			0			56,620		1,685
Investment funds		37,879		1,957			523			2,480			34,613		(18,352	)		0			0			56,620		1,685
Derivative assets and liabilities (net)		2,291		(1,377	)		0			(1,377	)		1,673		0			(1,198	)		0			1,389		(1,377	)
Options held/written and other		2,291		(1,377	)		0			(1,377	)		1,673		0			(1,198	)		0			1,389		(1,377	)
Other asset		15,008		480			0			480			2,800		0			(486	)		0			17,802		480
Reinsurance recoverables *5		15,008		480			0			480			2,800		0			(486	)		0			17,802		480
Policy Liabilities and Policy Account Balances		444,010		18,993			422			19,415			0		0			(62,522	)		0			362,073		18,993
Variable annuity and variable life insurance contracts *6		444,010		18,993			422			19,415			0		0			(62,522	)		0			362,073		18,993

Nine months ended December 31, 2019

	Millions of yen
	Balance at April 1, 2019		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2019		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2019 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	100,447	¥	1,339		¥	(1,023	)	¥	316		¥	33,606	¥	(3,425	)	¥	(26,987	)	¥	(2,991	)	¥	100,966	¥	213
Japanese prefectural and foreign municipal bond securities		2,888		0			(37	)		(37	)		0		0			0			0			2,851		0
Corporate debt securities		7,158		0			(9	)		(9	)		900		0			(842	)		(2,991	)		4,216		0
Other asset-backed securities and debt securities		90,401		1,339			(977	)		362			32,706		(3,425	)		(26,145	)		0			93,899		213
Equity securities		61,193		5,594			(131	)		5,463			10,075		(5,760	)		(4,789	)		0			66,182		5,532
Investment funds		61,193		5,594			(131	)		5,463			10,075		(5,760	)		(4,789	)		0			66,182		5,532
Derivative assets and liabilities (net)		5,272		5,238			(93	)		5,145			0		0			0			0			10,417		5,238
Options held/written and other		5,272		5,238			(93	)		5,145			0		0			0			0			10,417		5,238
Other asset		12,449		(5,355	)		0			(5,355	)		2,303		0			(178	)		0			9,219		(5,355	)
Reinsurance recoverables *5		12,449		(5,355	)		0			(5,355	)		2,303		0			(178	)		0			9,219		(5,355	)
Policy Liabilities and Policy Account Balances		360,198		(12,426	)		189			(12,237	)		0		0			(39,418	)		0			333,017		(12,426	)
Variable annuity and variable life insurance contracts *6		360,198		(12,426	)		189			(12,237	)		0		0			(39,418	)		0			333,017		(12,426	)

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

The following tables present recorded amounts of assets measured at fair value on a nonrecurring basis during year ended March 31, 2019 and the nine months ended December 31, 2019. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment:

Year ended March 31, 2019

	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	¥	3,839	¥	0	¥	3,839	¥	0
Real estate collateral-dependent loans (net of allowance for probable loan losses)		6,630		0		0		6,630
Investment in operating leases and property under facility operations		12,901		0		0		12,901
Certain investments in affiliates		2,897		0		0		2,897
	¥	26,267	¥	0	¥	3,839	¥	22,428
Nine months ended December 31, 2019
	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)	¥	4,494	¥	0	¥	0	¥	4,494
Investment in operating leases and property under facility operations		4,462		0		712		3,750
Certain investments in affiliates		1,561		0		0		1,561
	¥	10,517	¥	0	¥	712	¥	9,805

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, 2019 and December 31, 2019.

	March 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Available-for-sale debt securities:
Japanese prefectural and foreign municipal bond securities	¥	2,888	Discounted cash flows	Discount rate	8.5%
					(8.5%)
Corporate debt securities		2,162	Discounted cash flows	Discount rate	0.1% – 1.3%
					(0.8%)
		4,996	Appraisals/Broker quotes	—	—
Other asset-backed securities and debt securities		23,651	Discounted cash flows	Discount rate	0.2% – 51.2%
					(8.3%)
				Probability of default	0.6% – 1.6%
					(0.8%)
		66,750	Appraisals/Broker quotes	—	—
Equity securities:
Investment funds		6,012	Internal cash flows	Discount rate	0.0% – 65.0%
					(11.3%)
		32,702	Discounted cash flows	Discount rate	3.8% – 17.0%
					(14.1%)
		22,479	Appraisals/Broker quotes	—	—
Derivative assets:
Options held/written and other		5,005	Discounted cash flows	Discount rate	0.0% – 15.0%
					(8.6%)
		267	Appraisals/Broker quotes	—	—
Other assets:
Reinsurance recoverables		12,449	Discounted cash flows	Discount rate	(0.1)% – 0.4%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 24.0%
					(16.2%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (99.9%)
Total	¥	179,361
Liabilities:
Policy liabilities and Policy Account Balances:
Variable annuity and variable life insurance contracts	¥	360,198	Discounted cash flows	Discount rate	(0.1)% – 0.4%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 54.0%
					(16.0%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (80.3%)
Total	¥	360,198

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

The following tables provide information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets measured at fair value on a nonrecurring basis during year ended March 31, 2019 and the nine months ended December 31, 2019.

	Year ended March 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Real estate collateral-dependent loans (net of allowance for probable loan losses)	¥	6,630	Direct capitalization	Capitalization rate	5.8% – 8.2%
					(6.3%)
			Appraisals	—	—
Investment in operating leases and property under facility operations		2,345	Discounted cash flows	Discount rate	7.3%
					(7.3%)
		10,556	Appraisals	—	—
Certain investments in affiliates		334	Business enterprise value multiples	—	—
			Discounted cash flows	Discount rate	14.0%
					(14.0%)
		2,563	Appraisals	—	—
	¥	22,428
	Nine months ended December 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Real estate collateral-dependent loans (net of allowance for probable loan losses)	¥	4,494	Direct capitalization	Capitalization rate	5.6% – 6.6%
					(6.1%)
			Appraisals	—	—
Investment in operating leases and property under facility operations		3,750	Appraisals	—	—
Certain investments in affiliates		1,561	Appraisals	—	—
	¥	9,805

XML

Investment in Securities

9 Months Ended

Dec. 31, 2019

Investments Schedule [Abstract]

Investment in Securities

8. Investment in Securities

Investment in securities as of March 31, 2019 and December 31, 2019 consists of the following:

	Millions of yen
	March 31, 2019		December 31, 2019
Equity securities *	¥	549,047	¥	537,004
Trading debt securities		1,564		1,371
Available-for-sale debt securities		1,264,244		1,576,349
Held-to-maturity debt securities		114,061		113,880
Total	¥	1,928,916	¥	2,228,604

* The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥324,220 million and ¥306,524 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥75,923 million and ¥70,556 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds elected for the fair value option included in equity securities were ¥5,811 million and ¥5,997 million as of March 31, 2019 and December 31, 2019, respectively.

Gains and losses realized from the sale of equity securities and net unrealized holding gains (losses) on equity securities are included in gains on investment securities and dividends, life insurance premiums and related investment income, and write-downs of securities. For further information, see Note 17 “Life Insurance Operations.” Net unrealized holding gains (losses) on equity securities held as of December 31, 2018 were losses of ¥4,944 million and ¥7,547 million, respectively, for the nine and three months ended December 31, 2018. Net unrealized holding gains (losses) on equity securities held as of December 31, 2019 were gains of ¥34,529 million and ¥22,522 million, respectively, for the nine and three months ended December 31, 2019, which did not include net unrealized holding gains (losses) on the both investment funds above mentioned.

Equity securities include non-marketable equity securities and preferred equity securities, etc. elected for the measurement alternative. Upward or downward adjustments resulting from observable price changes are included in gains on investment securities and dividends and life insurance premiums and related investment income. Impairments are included in write-downs of securities. The following tables provide information about impairment and upward or downward adjustments resulting from observable price changes as of March 31, 2019 and December 31, 2019, and for the nine and three months ended December 31, 2018 and 2019.

	Millions of yen
	March 31, 2019							Nine months ended December 31, 2018					Three months ended December 31, 2018
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments		Upward adjustments
Equity securities measured using the measurement alternative	¥	35,431	¥	(1,688	)	¥	18	¥	(151	)	¥	0	¥	0	¥	0
	Millions of yen
	December 31, 2019							Nine months ended December 31, 2019					Three months ended December 31, 2019
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments		Upward adjustments
Equity securities measured using the measurement alternative	¥	37,137	¥	(1,495	)	¥	61	¥	(38	)	¥	43	¥	0	¥	5

Gains and losses realized from the sale of trading debt securities and net unrealized holding gains (losses) on trading debt securities are included in gains on investment securities and dividends. Net unrealized holding gains (losses) on trading debt securities held as of December 31, 2018 were gains of ¥102 million and ¥123 million, respectively, for the nine and three months ended December 31, 2018. Net unrealized holding gains (losses) on trading debt securities held as of December 31, 2019 were losses of ¥7 million and ¥74 million, respectively, for the nine and three months ended December 31, 2019.

Certain subsidiaries elected the fair value option for certain investments in investment funds included in equity 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, 2019 and December 31, 2019, these investments were fair valued at ¥5,811 million and ¥5,997 million, respectively.

A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale debt securities to mitigate volatility in the consolidated statements of income caused by the difference in recognition of gain or loss that would otherwise exist between the foreign government bond securities and the derivatives used to reduce the risks of fluctuations in market interest rates and exchange rates on these foreign government bond securities. As of March 31, 2019 and December 31, 2019, these investments were fair valued at ¥420 million and ¥790 million, respectively.

A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale debt securities to mitigate volatility in the consolidated statements of income caused by the difference in recognition of gain or loss that would otherwise exist between the foreign corporate debt securities and the derivatives used to reduce the risks of fluctuations in market interest rates and exchange rates on these foreign corporate debt securities. As of March 31, 2019 and December 31, 2019, these investments were fair valued at ¥21,136 million and ¥18,796 million, respectively.

The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale debt securities and held-to-maturity debt securities in each major security type as of March 31, 2019 and December 31, 2019 are as follows:

March 31, 2019

	Millions of yen
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	416,218	¥	20,133	¥	(5,500	)	¥	430,851
Japanese prefectural and foreign municipal bond securities		189,792		3,749		(236	)		193,305
Corporate debt securities		485,156		5,205		(2,364	)		487,997
CMBS and RMBS in the Americas		59,954		2,566		(1,041	)		61,479
Other asset-backed securities and debt securities		88,620		3,381		(1,389	)		90,612
		1,239,740		35,034		(10,530	)		1,264,244
Held-to-maturity debt securities:
Japanese government bond securities and other		114,061		30,265		0			144,326
	¥	1,353,801	¥	65,299	¥	(10,530	)	¥	1,408,570

December 31, 2019

	Millions of yen
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	578,705	¥	21,685	¥	(9,155	)	¥	591,235
Japanese prefectural and foreign municipal bond securities		234,273		4,639		(624	)		238,288
Corporate debt securities		588,853		9,187		(3,285	)		594,755
CMBS and RMBS in the Americas		56,764		2,538		(1,340	)		57,962
Other asset-backed securities and debt securities		92,338		3,369		(1,598	)		94,109
		1,550,933		41,418		(16,002	)		1,576,349
Held-to-maturity debt securities:
Japanese government bond securities and other		113,880		30,642		0			144,522
	¥	1,664,813	¥	72,060	¥	(16,002	)	¥	1,720,871

The following tables provide information about available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2019 and December 31, 2019, respectively:

March 31, 2019

	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 debt securities:
Japanese and foreign government bond securities	¥	51,551	¥	(1,119	)	¥	98,830	¥	(4,381	)	¥	150,381	¥	(5,500	)
Japanese prefectural and foreign municipal bond securities		1,329		(35	)		4,510		(201	)		5,839		(236	)
Corporate debt securities		9,156		(18	)		68,924		(2,346	)		78,080		(2,364	)
CMBS and RMBS in the Americas		10,194		(362	)		7,147		(679	)		17,341		(1,041	)
Other asset-backed securities and debt securities		10,253		(411	)		28,748		(978	)		39,001		(1,389	)
	¥	82,483	¥	(1,945	)	¥	208,159	¥	(8,585	)	¥	290,642	¥	(10,530	)
December 31, 2019
	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 debt securities:
Japanese and foreign government bond securities	¥	86,920	¥	(2,228	)	¥	153,775	¥	(6,927	)	¥	240,695	¥	(9,155	)
Japanese prefectural and foreign municipal bond securities		71,088		(623	)		220		(1	)		71,308		(624	)
Corporate debt securities		152,919		(1,351	)		23,731		(1,934	)		176,650		(3,285	)
CMBS and RMBS in the Americas		8,700		(273	)		8,715		(1,067	)		17,415		(1,340	)
Other asset-backed securities and debt securities		13,573		(254	)		26,723		(1,344	)		40,296		(1,598	)
	¥	333,200	¥	(4,729	)	¥	213,164	¥	(11,273	)	¥	546,364	¥	(16,002	)

XML

Acquisitions and Divestitures

9 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisitions and Divestitures

4. Acquisitions and Divestitures

(1) Acquisitions

There were no material acquisitions during the nine months ended December 31, 2018 and 2019.

As a result of the reassessment of the provisional purchase price allocation during the three months ended June 30, 2019, the Company recognized bargain purchase gains of ¥1,022 million associated with two of its acquisitions executed in the three months ended March 31, 2019. The bargain purchase gains could possibly be adjusted because the purchase price allocations for these acquisitions have not been completed yet with respect to the final valuation of acquired intangible assets among others.

(2) Divestitures

Gains on sales of subsidiaries and affiliates and liquidation losses, net for the nine months ended December 31, 2018 and 2019 were ¥20,470 million and ¥58,488 million, respectively. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the nine months ended December 31, 2018 mainly consisted of ¥18,688 million in Overseas Business segment, ¥1,220 million in Maintenance Leasing segment, ¥556 million in Investment and Operation segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the nine months ended December 31, 2019 mainly consisted of ¥24,202 million in Overseas Business segment, ¥18,007 million in Investment and Operation segment and ¥16,216 million in Real Estate segment.

Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended December 31, 2018 and 2019 were ¥1,438 million and ¥25,200 million, respectively. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended December 31, 2018 mainly consisted of ¥1,220 million in Maintenance Leasing segment, ¥218 million in Overseas Business segment. Gains on sales of subsidiaries and affiliates and liquidation losses, net for the three months ended December 31, 2019 mainly consisted of ¥16,072 million in Investment and Operation segment, ¥8,954 million in Overseas Business segment.

During the three months ended September 30, 2019, the Company sold ORIX Living Corporation (hereinafter, “ORIX Living”, which was a consolidated subsidiary of the Company and has changed its name to GOOD TIME LIVING Corporation on August 30, 2019). Gains on the sale of the subsidiary were included in Real Estate segment. Because the Company has determined to sell the subsidiary during fiscal 2019, the assets or debts of the subsidiary were mainly recognized as property under facility operations of ¥42,595 million and other liabilities of ¥23,078 million, which were classified as held for sale, in the Company’s consolidated balance sheets as of March 31, 2019. Neither gain nor loss was recognized as the related assets and liabilities were classified as held for sale. These related assets and liabilities were included in Real Estate segment.

XML

Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Nonaccrual and Past Due Financing Receivables) (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	¥ 75,042	¥ 62,131
Total Financing Receivables	4,662,829	4,362,575
Non-Accrual	68,821	58,433
Non-recourse Loans | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	0
Total Financing Receivables	72,597
Non-Accrual	0
Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	2,658
Total Financing Receivables	70,506
Non-Accrual	2,516
Direct Financing Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	21,908	21,988
Total Financing Receivables	1,142,339	1,155,632
Non-Accrual	15,495	14,807
Direct Financing Leases | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	6,784	6,837
Total Financing Receivables	771,697	793,239
Non-Accrual	6,084	6,158
Direct Financing Leases | Overseas
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	15,124	15,151
Total Financing Receivables	370,642	362,393
Non-Accrual	9,411	8,649
Consumer borrowers
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	21,230	21,430
Total Financing Receivables	2,126,058	1,906,022
Non-Accrual	15,413	15,647
Consumer borrowers | Consumer - Housing loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	4,483	4,375
Total Financing Receivables	1,840,644	1,598,827
Non-Accrual	2,657	2,654
Consumer borrowers | Consumer-Card loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	2,461	2,675
Total Financing Receivables	226,221	245,139
Non-Accrual	1,946	2,127
Consumer borrowers | Consumer - Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	14,286	14,380
Total Financing Receivables	59,193	62,056
Non-Accrual	10,810	10,866
Corporate borrowers
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	31,904	18,713
Total Financing Receivables	1,394,432	1,300,921
Non-Accrual	37,913	27,979
Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables		0
Total Financing Receivables		49,113
Non-Accrual		0
Corporate borrowers | Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables		5,382
Total Financing Receivables		49,915
Non-Accrual		3,818
Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	14,337	554
Total Financing Receivables	386,716	355,049
Non-Accrual	14,368	1,392
Corporate borrowers | Other-Entertainment industry
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	24	663
Total Financing Receivables	62,954	66,047
Non-Accrual	24	663
Corporate borrowers | Other Corporate Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	14,885	12,114
Total Financing Receivables	801,659	780,797
Non-Accrual	21,005	22,106
30 To 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	16,096	17,924
30 To 89 Days Past Due | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	0
30 To 89 Days Past Due | Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	142
30 To 89 Days Past Due | Direct Financing Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	6,413	7,181
30 To 89 Days Past Due | Direct Financing Leases | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	700	679
30 To 89 Days Past Due | Direct Financing Leases | Overseas
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	5,713	6,502
30 To 89 Days Past Due | Consumer borrowers
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	5,817	5,783
30 To 89 Days Past Due | Consumer borrowers | Consumer - Housing loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	1,826	1,721
30 To 89 Days Past Due | Consumer borrowers | Consumer-Card loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	515	548
30 To 89 Days Past Due | Consumer borrowers | Consumer - Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	3,476	3,514
30 To 89 Days Past Due | Corporate borrowers
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	3,866	4,960
30 To 89 Days Past Due | Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables		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		2,925
30 To 89 Days Past Due | Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	74	2
30 To 89 Days Past Due | Corporate borrowers | Other-Entertainment industry
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	0	0
30 To 89 Days Past Due | Corporate borrowers | Other Corporate Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	3,650	2,033
90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	58,946	44,207
90 Days or More Past Due | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	0
90 Days or More Past Due | Non-recourse Loans | The Americas
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	2,516
90 Days or More Past Due | Direct Financing Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	15,495	14,807
90 Days or More Past Due | Direct Financing Leases | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	6,084	6,158
90 Days or More Past Due | Direct Financing Leases | Overseas
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	9,411	8,649
90 Days or More Past Due | Consumer borrowers
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	15,413	15,647
90 Days or More Past Due | Consumer borrowers | Consumer - Housing loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	2,657	2,654
90 Days or More Past Due | Consumer borrowers | Consumer-Card loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	1,946	2,127
90 Days or More Past Due | Consumer borrowers | Consumer - Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	10,810	10,866
90 Days or More Past Due | Corporate borrowers
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	28,038	13,753
90 Days or More Past Due | Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables		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		2,457
90 Days or More Past Due | Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	14,263	552
90 Days or More Past Due | Corporate borrowers | Other-Entertainment industry
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	24	663
90 Days or More Past Due | Corporate borrowers | Other Corporate Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Due Financing Receivables	¥ 11,235	¥ 10,081

XML

Leases - Lessor: Depreciation and Various Expenses Included in Costs of Operating Leases (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Depreciation expenses	¥ 52,714		¥ 155,668
Various expenses	13,674		41,641
Costs of operating leases	¥ 66,388	¥ 64,127	¥ 197,309	¥ 191,493

XML

Leases - Lessee: Supplemental Balance Sheet Information (Detail) ¥ in Millions	Dec. 31, 2019 JPY (¥)
Operating And Finance Lease Supplemental Balance Sheet Information Line Items [Line Items]
Right-of-use asset (operating leases)	¥ 274,486
Operating lease, Total lease liabilities	271,093
Operating lease, Other Liabilities	¥ 271,093
Operating lease, Weighted average remaining lease term	14 years
Operating lease, Weighted average discount rate	1.15%
Right-of-use asset (finance leases)	¥ 2,308
Finance leases, Total lease liabilities	2,914
Finance leases, Other Liability	¥ 2,914
Finance leases, Weighted average remaining lease term	9 years
Finance leases, Weighted average discount rate	3.02%
Investment in Operating Leases
Operating And Finance Lease Supplemental Balance Sheet Information Line Items [Line Items]
Right-of-use asset (operating leases)	¥ 128,951
Right-of-use asset (finance leases)	0
Property under Facility Operations
Operating And Finance Lease Supplemental Balance Sheet Information Line Items [Line Items]
Right-of-use asset (operating leases)	69,719
Right-of-use asset (finance leases)	2,299
Office Facilities
Operating And Finance Lease Supplemental Balance Sheet Information Line Items [Line Items]
Right-of-use asset (operating leases)	75,816
Right-of-use asset (finance leases)	¥ 9

XML

Investment in Securities (Summary of Investment in Securities) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions		Dec. 31, 2019	Mar. 31, 2019
Schedule of Investments [Line Items]
Equity securities	[1]	¥ 537,004	¥ 549,047
Investment Funds Elected for Fair Value Option
Schedule of Investments [Line Items]
Equity securities		5,997	5,811
Variable Annuity and Variable Life Insurance Contracts
Schedule of Investments [Line Items]
Equity securities		306,524	324,220
Investment Funds Accounted for under Equity Method
Schedule of Investments [Line Items]
Equity securities		¥ 70,556	¥ 75,923

[1] The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥324,220 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥75,923 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. The amount of investment funds elected for the fair value option included in equity securities were ¥5,811 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

XML

Segment Information (Disaggregation of Revenues for Revenues From Contracts With Customers, by Goods and Services Category and Geographical Location) (Detail) - JPY (¥) ¥ in Millions		3 Months Ended		9 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues from contracts with customers		¥ 289,145	¥ 325,457	¥ 866,201	¥ 1,052,813
Segment revenues /Total revenues		571,701	534,141	1,684,379	1,796,155
Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		75,435	102,043	214,858	389,954
Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		20,198	20,394	65,269	63,244
Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		49,538	50,100	139,280	148,751
Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		20,677	20,447	58,956	58,646
Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		16,355	27,837	58,170	82,568
Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		32,220	31,756	108,347	99,091
Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		26,392	26,066	77,858	77,152
Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		22,657	21,006	65,338	53,046
Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		25,673	25,808	78,125	80,361
Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		289,145	325,457	866,201	1,052,813
Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	282,556	208,684	818,178	743,342
Japan
Segment Reporting Information [Line Items]
Revenues from contracts with customers		234,100	263,567	707,423	877,032
The Americas
Segment Reporting Information [Line Items]
Revenues from contracts with customers		27,374	30,716	76,367	89,901
Other Countries
Segment Reporting Information [Line Items]
Revenues from contracts with customers		27,671	31,174	82,411	85,880
Operating Segment
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		574,653	537,262	1,691,739	1,802,142
Operating Segment | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		75,296	101,891	213,642	388,787
Operating Segment | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		20,198	20,394	65,269	63,244
Operating Segment | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		49,576	50,111	139,360	148,817
Operating Segment | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		20,774	20,543	59,252	58,917
Operating Segment | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		16,355	27,837	58,170	82,568
Operating Segment | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		32,407	31,959	108,895	99,710
Operating Segment | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		26,782	26,350	79,648	78,466
Operating Segment | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		22,657	21,015	65,338	53,055
Operating Segment | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		26,577	27,338	79,316	81,872
Operating Segment | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		290,622	327,438	868,890	1,055,436
Operating Segment | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	284,031	209,824	822,849	746,706
Operating Segment | Corporate Financial Services
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		24,031	20,650	69,721	71,717
Operating Segment | Corporate Financial Services | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		1,506	1,180	4,323	3,184
Operating Segment | Corporate Financial Services | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Corporate Financial Services | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Corporate Financial Services | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		121	122	372	367
Operating Segment | Corporate Financial Services | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Corporate Financial Services | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		610	551	2,298	2,242
Operating Segment | Corporate Financial Services | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Corporate Financial Services | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Corporate Financial Services | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		9,312	8,028	26,003	26,545
Operating Segment | Corporate Financial Services | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		11,549	9,881	32,996	32,338
Operating Segment | Corporate Financial Services | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	12,482	10,769	36,725	39,379
Operating Segment | Maintenance Leasing
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		76,801	72,662	224,017	214,304
Operating Segment | Maintenance Leasing | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		1,528	1,142	4,734	3,539
Operating Segment | Maintenance Leasing | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Maintenance Leasing | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Maintenance Leasing | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		16,254	16,027	45,727	45,659
Operating Segment | Maintenance Leasing | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Maintenance Leasing | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Maintenance Leasing | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Maintenance Leasing | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Maintenance Leasing | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		2,551	2,235	7,389	6,750
Operating Segment | Maintenance Leasing | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		20,333	19,404	57,850	55,948
Operating Segment | Maintenance Leasing | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	56,468	53,258	166,167	158,356
Operating Segment | Real Estate
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		102,851	113,383	332,039	357,381
Operating Segment | Real Estate | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		346	1,544	3,257	4,876
Operating Segment | Real Estate | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		19,948	20,148	64,518	62,842
Operating Segment | Real Estate | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		2,060	1,579	5,962	4,458
Operating Segment | Real Estate | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Real Estate | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		16,248	26,860	57,807	79,624
Operating Segment | Real Estate | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	43	0	165
Operating Segment | Real Estate | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		26,782	26,350	79,648	78,466
Operating Segment | Real Estate | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		22,657	21,015	65,338	53,055
Operating Segment | Real Estate | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		967	1,098	3,046	3,334
Operating Segment | Real Estate | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		89,008	98,637	279,576	286,820
Operating Segment | Real Estate | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	13,843	14,746	52,463	70,561
Operating Segment | Investment and Operation
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		116,245	136,357	341,302	504,032
Operating Segment | Investment and Operation | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		71,352	94,144	197,472	371,192
Operating Segment | Investment and Operation | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Investment and Operation | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		85	93	264	328
Operating Segment | Investment and Operation | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		48	46	172	139
Operating Segment | Investment and Operation | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Investment and Operation | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		31,591	31,158	105,810	96,520
Operating Segment | Investment and Operation | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Investment and Operation | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Investment and Operation | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		9,138	9,184	28,747	27,975
Operating Segment | Investment and Operation | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		112,214	134,625	332,465	496,154
Operating Segment | Investment and Operation | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	4,031	1,732	8,837	7,878
Operating Segment | Retail
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		129,888	67,553	355,468	289,288
Operating Segment | Retail | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Retail | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Retail | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		42	37	122	121
Operating Segment | Retail | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Retail | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Retail | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Retail | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Retail | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Retail | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		1,087	843	3,052	2,319
Operating Segment | Retail | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		1,129	880	3,174	2,440
Operating Segment | Retail | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	128,759	66,673	352,294	286,848
Operating Segment | Overseas Business
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		124,837	126,657	369,192	365,420
Operating Segment | Overseas Business | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		564	3,881	3,856	5,996
Operating Segment | Overseas Business | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		250	246	751	402
Operating Segment | Overseas Business | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		47,389	48,402	133,012	143,910
Operating Segment | Overseas Business | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		4,351	4,348	12,981	12,752
Operating Segment | Overseas Business | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		107	977	363	2,944
Operating Segment | Overseas Business | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		206	207	787	783
Operating Segment | Overseas Business | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Overseas Business | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Overseas Business | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		3,522	5,950	11,079	14,949
Operating Segment | Overseas Business | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		56,389	64,011	162,829	181,736
Operating Segment | Overseas Business | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	68,448	62,646	206,363	183,684
Operating Segment | Japan
Segment Reporting Information [Line Items]
Revenues from contracts with customers		234,779	264,908	707,581	877,512
Operating Segment | Japan | Corporate Financial Services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		11,549	9,881	32,996	32,338
Operating Segment | Japan | Maintenance Leasing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		20,142	19,331	57,285	55,675
Operating Segment | Japan | Real Estate
Segment Reporting Information [Line Items]
Revenues from contracts with customers		89,008	98,637	279,576	286,820
Operating Segment | Japan | Investment and Operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		111,971	134,420	331,404	495,602
Operating Segment | Japan | Retail
Segment Reporting Information [Line Items]
Revenues from contracts with customers		1,129	880	3,174	2,440
Operating Segment | Japan | Overseas Business
Segment Reporting Information [Line Items]
Revenues from contracts with customers		980	1,759	3,146	4,637
Operating Segment | The Americas
Segment Reporting Information [Line Items]
Revenues from contracts with customers		27,374	30,716	76,367	89,901
Operating Segment | The Americas | Corporate Financial Services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | The Americas | Maintenance Leasing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | The Americas | Real Estate
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | The Americas | Investment and Operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | The Americas | Retail
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | The Americas | Overseas Business
Segment Reporting Information [Line Items]
Revenues from contracts with customers		27,374	30,716	76,367	89,901
Operating Segment | Other Countries
Segment Reporting Information [Line Items]
Revenues from contracts with customers		28,469	31,814	84,942	88,023
Operating Segment | Other Countries | Corporate Financial Services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Other Countries | Maintenance Leasing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		191	73	565	273
Operating Segment | Other Countries | Real Estate
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Other Countries | Investment and Operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		243	205	1,061	552
Operating Segment | Other Countries | Retail
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Operating Segment | Other Countries | Overseas Business
Segment Reporting Information [Line Items]
Revenues from contracts with customers		28,035	31,536	83,316	87,198
Corporate And Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Segment revenues /Total revenues		(2,952)	(3,121)	(7,360)	(5,987)
Corporate And Intersegment Eliminations [Member] | Sales of Goods
Segment Reporting Information [Line Items]
Revenues from contracts with customers		139	152	1,216	1,167
Corporate And Intersegment Eliminations [Member] | Real Estate Sales
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Corporate And Intersegment Eliminations [Member] | Asset Management and Servicing
Segment Reporting Information [Line Items]
Revenues from contracts with customers		(38)	(11)	(80)	(66)
Corporate And Intersegment Eliminations [Member] | Automobile related services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		(97)	(96)	(296)	(271)
Corporate And Intersegment Eliminations [Member] | Facilities operation
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Corporate And Intersegment Eliminations [Member] | Environment and energy services
Segment Reporting Information [Line Items]
Revenues from contracts with customers		(187)	(203)	(548)	(619)
Corporate And Intersegment Eliminations [Member] | Real estate management and brokerage
Segment Reporting Information [Line Items]
Revenues from contracts with customers		(390)	(284)	(1,790)	(1,314)
Corporate And Intersegment Eliminations [Member] | Real estate contract work
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	(9)	0	(9)
Corporate And Intersegment Eliminations [Member] | Other
Segment Reporting Information [Line Items]
Revenues from contracts with customers		(904)	(1,530)	(1,191)	(1,511)
Corporate And Intersegment Eliminations [Member] | Sales of Goods and Real Estate and Service [Member]
Segment Reporting Information [Line Items]
Revenues from contracts with customers		(1,477)	(1,981)	(2,689)	(2,623)
Corporate And Intersegment Eliminations [Member] | Other Revenue
Segment Reporting Information [Line Items]
Revenues from contracts with customers	[1]	(1,475)	(1,140)	(4,671)	(3,364)
Corporate And Intersegment Eliminations [Member] | Japan
Segment Reporting Information [Line Items]
Revenues from contracts with customers		(679)	(1,341)	(158)	(480)
Corporate And Intersegment Eliminations [Member] | The Americas
Segment Reporting Information [Line Items]
Revenues from contracts with customers		0	0	0	0
Corporate And Intersegment Eliminations [Member] | Other Countries
Segment Reporting Information [Line Items]
Revenues from contracts with customers		¥ (798)	¥ (640)	¥ (2,531)	¥ (2,143)

[1] Other revenues include revenues that are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.

XML

Commitments, Guarantees, and Contingent Liabilities (Assets Provided as Collateral for Short-Term and Long-Term Debt Payables to Financial Institutions) (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Debt Disclosure [Abstract]
Lease payments, loans and investment in operating leases	¥ 130,832	¥ 109,210
Investment in securities	162,317	160,408
Property under facility operations	28,250	31,264
Other assets and other	22,168	28,895
Total	¥ 343,567	¥ 329,777

XML

Commitments, Guarantees and Contingent Liabilities (Tables)

9 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Minimum Future Rentals on Non-Cancelable Operating Leases

The minimum future rentals on non-cancelable operating leases as of March 31, 2019 are as follows:

Years ending March 31,	Millions of yen
2020	¥	7,694
2021		6,647
2022		5,923
2023		5,434
2024		4,802
Thereafter		34,485
Total	¥	64,985

Amounts Due of Certain Computer Systems Operated and Maintained under Non-cancelable Contracts with Third-party Service Providers

As of March 31, 2019 and December 31, 2019, the amounts due are as follows:

	Millions of yen
	March 31, 2019		December 31, 2019
Within one year	¥	4,323	¥	3,905
More than one year		3,185		4,579
Total	¥	7,508	¥	8,484

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, 2019 and December 31, 2019:

	March 31, 2019						December 31, 2019
	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	¥	500,499	¥	6,707		2026	¥	498,541	¥	6,045		2027
Transferred loans		175,623		1,436		2059		195,190		1,408		2060
Consumer loans		343,119		42,400		2030		342,156		42,406		2030
Housing loans		40,395		4,701		2048		11,143		4,513		2048
Other		263		1		2024		186		1		2024
Total	¥	1,059,899	¥	55,245		—	¥	1,047,216	¥	54,373		—

Assets Provided as Collateral for Short-Term and Long-Term Debt Payables to Financial Institutions

Collateral—Other than the assets of the consolidated VIEs pledged as collateral for financing described in Note 10 “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, 2019 and December 31, 2019:

	Millions of yen
	March 31, 2019		December 31, 2019
Lease payments, loans and investment in operating leases	¥	109,210	¥	130,832
Investment in securities		160,408		162,317
Property under facility operations		31,264		28,250
Other assets and other		28,895		22,168
Total	¥	329,777	¥	343,567

XML

Per Share Data (Tables)

9 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Reconciliation of Differences Between Basic and Diluted Earnings Per Share (EPS)

During the nine and three months ended December 31, 2018 and 2019, there were no stock compensation which were antidilutive.

	Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Net Income attributable to ORIX Corporation shareholders	¥	236,207	¥	244,319
	Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Net Income attributable to ORIX Corporation shareholders	¥	81,157	¥	85,169
	Thousands of Shares
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Weighted-average shares		1,280,038		1,279,196
Effect of dilutive securities—
Stock compensation		1,083		1,138
Weighted-average shares for diluted EPS computation		1,281,121		1,280,334
	Thousands of Shares
	Three months ended December 31, 2018		Three months ended December 31, 2019
Weighted-average shares		1,279,962		1,278,048
Effect of dilutive securities—
Stock compensation		1,040		1,245
Weighted-average shares for diluted EPS computation		1,281,002		1,279,293
	Yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Earnings per share for net income attributable to ORIX Corporation shareholders:
Basic	¥	184.53	¥	190.99
Diluted	¥	184.38	¥	190.82
	Yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Earnings per share for net income attributable to ORIX Corporation shareholders:
Basic	¥	63.41	¥	66.64
Diluted	¥	63.35	¥	66.58

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. (1,715,210 and 1,813,193 shares for the nine months ended December 31, 2018 and 2019, 1,823,993 and 1,796,993 shares for the three months ended December 31, 2018 and 2019)

XML

Fair Value Measurements (Recorded Amounts of Major Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) - JPY (¥) ¥ in Millions		Dec. 31, 2019	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		¥ 25,583	¥ 27,367
Derivative assets, gross amounts recognized		15,683	15,495
Derivative assets, gross amounts offset in the consolidated balance sheets, assets		(514)	(1,497)
Derivative assets, net amounts presented in the consolidated balance sheets, assets		15,169	13,998
Other assets		9,219	12,449
Derivative liabilities, gross amounts recognized		51,188	25,958
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities		(514)	(1,497)
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities		50,674	24,461
Policy Liabilities and Policy Account Balances		333,017	360,198
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		15,683	15,495
Derivative assets, gross amounts offset in the consolidated balance sheets, assets	[1]	(514)	(1,497)
Derivative assets, net amounts presented in the consolidated balance sheets, assets		15,169	13,998
Other assets		9,219	12,449
Total financial assets		2,063,293	1,758,016
Derivative liabilities, gross amounts recognized		51,188	25,958
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities	[1]	(514)	(1,497)
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities		50,674	24,461
Policy Liabilities and Policy Account Balances		333,017	360,198
Total financial liabilities		384,205	386,156
Interest rate swap agreements | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		167	138
Derivative liabilities, gross amounts recognized		24,768	17,439
Futures, foreign exchange contracts | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		403	3,007
Derivative liabilities, gross amounts recognized		14,495	5,336
Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]	594,755
Equity securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[3],[4]	417,433	425,593
Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]	591,235
CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		57,962
Options held/written and other | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		13,692	11,140
Derivative liabilities, gross amounts recognized		10,960	2,809
Reinsurance Recoverable
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets		9,219	12,449	[6]
Reinsurance Recoverable | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[6]	9,219
Credit derivatives held/written | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized			7
Derivative liabilities, gross amounts recognized			10
Variable Annuity and Variable Life Insurance Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Policy Liabilities and Policy Account Balances		333,017	360,198
Variable Annuity and Variable Life Insurance Contracts | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Policy Liabilities and Policy Account Balances	[7]	333,017	360,198
Loans Held-for-Sale | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[8]	43,238	38,671
Trading securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			1,564
Available-for-sale securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			1,264,244
Available-for-sale securities | Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]		487,997
Available-for-sale securities | Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]		430,851
Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		238,288	193,305
Available-for-sale securities | CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			61,479
Available-for-sale securities | Other asset-backed securities and debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			90,612
Other securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		94,109
Trading Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		1,371
Available-for-sale Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		1,576,349
Foreign currency swap agreements | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		1,421	1,203
Derivative liabilities, gross amounts recognized		965	364
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, net amounts presented in the consolidated balance sheets, assets	[9]	0	0
Other assets			0
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities	[9]	0	0
Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		29	299
Derivative assets, gross amounts offset in the consolidated balance sheets, assets	[1]	0	0
Derivative assets, net amounts presented in the consolidated balance sheets, assets		0
Other assets		0
Total financial assets		95,744	93,761
Derivative liabilities, gross amounts recognized		157	522
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities	[1]	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		157	522
Level 1 | Interest rate swap agreements | Fair Value, Measurements, Recurring
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
Level 1 | Futures, foreign exchange contracts | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		29	299
Derivative liabilities, gross amounts recognized		157	522
Level 1 | Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]	18,796
Level 1 | Equity securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[3],[4]	73,334	68,631
Level 1 | Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]	3,585
Level 1 | Japanese prefectural and foreign municipal bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		0
Level 1 | CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		0
Level 1 | Options held/written and other | Fair Value, Measurements, Recurring
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
Level 1 | Reinsurance Recoverable
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[6]		0
Level 1 | Reinsurance Recoverable | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[6]	0
Level 1 | Credit derivatives held/written | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized			0
Derivative liabilities, gross amounts recognized			0
Level 1 | Variable Annuity and Variable Life Insurance Contracts | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Policy Liabilities and Policy Account Balances	[7]	0	0
Level 1 | Loans Held-for-Sale | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[8]	0	0
Level 1 | Trading securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			0
Level 1 | Available-for-sale securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			24,831
Level 1 | Available-for-sale securities | Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]		21,604
Level 1 | Available-for-sale securities | Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]		3,227
Level 1 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			0
Level 1 | Available-for-sale securities | CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			0
Level 1 | Available-for-sale securities | Other asset-backed securities and debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			0
Level 1 | Other securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		0
Level 1 | Trading Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		0
Level 1 | Available-for-sale Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		22,381
Level 1 | Foreign currency swap agreements | Fair Value, Measurements, Recurring
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
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, net amounts presented in the consolidated balance sheets, assets	[9]	0	0
Other assets			0
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities	[9]	0	0
Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		5,210	9,924
Derivative assets, gross amounts offset in the consolidated balance sheets, assets	[1]	0	0
Derivative assets, net amounts presented in the consolidated balance sheets, assets		0
Other assets		0
Total financial assets		1,780,738	1,484,894
Derivative liabilities, gross amounts recognized		51,004	25,436
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities	[1]	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		51,004	25,436
Level 2 | Interest rate swap agreements | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		167	138
Derivative liabilities, gross amounts recognized		24,768	17,439
Level 2 | Futures, foreign exchange contracts | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		374	2,708
Derivative liabilities, gross amounts recognized		14,338	4,814
Level 2 | Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]	571,743
Level 2 | Equity securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[3],[4]	277,917	295,769
Level 2 | Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]	587,650
Level 2 | Japanese prefectural and foreign municipal bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		235,437
Level 2 | CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		57,962
Level 2 | Options held/written and other | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		3,248	5,868
Derivative liabilities, gross amounts recognized		10,933	2,809
Level 2 | Reinsurance Recoverable
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[6]		0
Level 2 | Reinsurance Recoverable | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[6]	0
Level 2 | Credit derivatives held/written | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized			7
Derivative liabilities, gross amounts recognized			10
Level 2 | Variable Annuity and Variable Life Insurance Contracts | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Policy Liabilities and Policy Account Balances	[7]	0	0
Level 2 | Loans Held-for-Sale | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[8]	43,238	38,671
Level 2 | Trading securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			1,564
Level 2 | Available-for-sale securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			1,138,966
Level 2 | Available-for-sale securities | Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]		459,235
Level 2 | Available-for-sale securities | Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]		427,624
Level 2 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			190,417
Level 2 | Available-for-sale securities | CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			61,479
Level 2 | Available-for-sale securities | Other asset-backed securities and debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			211
Level 2 | Other securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		210
Level 2 | Trading Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		1,371
Level 2 | Available-for-sale Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		1,453,002
Level 2 | Foreign currency swap agreements | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		1,421	1,203
Derivative liabilities, gross amounts recognized		965	364
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, net amounts presented in the consolidated balance sheets, assets	[9]	0	0
Other assets			12,449
Total financial assets		186,811	179,361
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities	[9]	0	0
Total financial liabilities		333,044	360,198
Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		10,444	5,272
Derivative assets, gross amounts offset in the consolidated balance sheets, assets	[1]	0	0
Derivative assets, net amounts presented in the consolidated balance sheets, assets		0
Other assets		9,219
Total financial assets		186,811	179,361
Derivative liabilities, gross amounts recognized		27	0
Derivative liabilities, gross amounts offset in the consolidated balance sheets, liabilities	[1]	0	0
Derivative liabilities, net amounts presented in the consolidated balance sheets, liabilities		0	0
Policy Liabilities and Policy Account Balances		333,017	360,198
Total financial liabilities		333,044	360,198
Level 3 | Interest rate swap agreements | Fair Value, Measurements, Recurring
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
Level 3 | Futures, foreign exchange contracts | Fair Value, Measurements, Recurring
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
Level 3 | Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]	4,216
Level 3 | Equity securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[3],[4]	66,182	61,193
Level 3 | Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]	0
Level 3 | Japanese prefectural and foreign municipal bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		2,851
Level 3 | CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		0
Level 3 | Options held/written and other | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized		10,444	5,272
Derivative liabilities, gross amounts recognized		27	0
Level 3 | Reinsurance Recoverable
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[6]		12,449
Level 3 | Reinsurance Recoverable | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	[6]	9,219
Level 3 | Credit derivatives held/written | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative assets, gross amounts recognized			0
Derivative liabilities, gross amounts recognized			0
Level 3 | Variable Annuity and Variable Life Insurance Contracts | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Policy Liabilities and Policy Account Balances	[7]	333,017	360,198
Level 3 | Loans Held-for-Sale | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[8]	0	0
Level 3 | Trading securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			0
Level 3 | Available-for-sale securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			100,447
Level 3 | Available-for-sale securities | Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[2]		7,158
Level 3 | Available-for-sale securities | Japanese and foreign government bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments	[5]		0
Level 3 | Available-for-sale securities | Japanese prefectural and foreign municipal bond securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			2,888
Level 3 | Available-for-sale securities | CMBS and RMBS in the Americas | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			0
Level 3 | Available-for-sale securities | Other asset-backed securities and debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments			90,401
Level 3 | Other securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		93,899
Level 3 | Trading Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		0
Level 3 | Available-for-sale Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value measured on recurring basis investments		100,966
Level 3 | Foreign currency swap agreements | Fair Value, Measurements, Recurring
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 offset under counterparty netting of derivative assets and liabilities.

[2] A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥136 million and ¥0 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥393 million and ¥0 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥21,136 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

[3] Certain subsidiaries elected the fair value option for certain investments in investment funds included in equity securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥906 million and ¥0 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥265 million and ¥0 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥5,811 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

[4] The amounts of investment funds measured at net asset value per share which are not included in the above tables were ¥12,100 million and ¥0 as of March 31, 2019 and December 31, 2019, respectively.

[5] A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥21 million and ¥0 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥12 million and ¥0 from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥420 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively.

[6] 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 ¥12,449 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “Life Insurance Operations.”

[7] 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 ¥360,198 million and ¥0 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “Life Insurance Operations.”

[8] A certain subsidiary elected the fair value option on certain loans held for sale. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥495 million and ¥0 million from the change in the fair value of the loans for the nine months ended December 31, 2018 and 2019, respectively. Included in “Other (income) and expense, net” in the consolidated statements of income were a gain of ¥294 million and a loss of ¥0 million from the change in the fair value of the loans for the three months ended December 31, 2018 and 2019, respectively. No gains or losses were recognized in earnings during the nine months ended December 31, 2018 and 2019 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, 2019, were ¥37,865 million and ¥38,671 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥806 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of December 31, 2019, were ¥0 million and ¥0 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥0 million. As of March 31, 2019 and December 31, 2019, there were no loans that are 90 days or more past due or, in non-accrual status.

[9] 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.”

XML

Write-Downs of Long-Lived Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Write-downs of long-lived assets	¥ 518	¥ 0	¥ 554	¥ 26
Real Estate
Property, Plant and Equipment [Abstract]
Write-downs of long-lived assets			20	16
Overseas Business Segment
Property, Plant and Equipment [Abstract]
Write-downs of long-lived assets	¥ 518		¥ 534	¥ 10

XML

Derivative Financial Instruments and Hedging (Effect of Derivative Instruments on Consolidated Statements of Income, Pre-tax) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended				9 Months Ended
	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018
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	¥ 2,481				¥ (4,610)
Gains (losses) recognized in other comprehensive income on derivative, (effective portion)			¥ (2,252)				¥ (1,529)
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)			0				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 other comprehensive income (loss) into income, (effective portion)			4				141
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swap agreements | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	0				0
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swap agreements | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	218				584
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	(255)				(369)
Gains (losses) recognized in other comprehensive income on derivative, (effective portion)			9				252
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)			0				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 other comprehensive income (loss) into income	0				0
Gains (losses) reclassified from other comprehensive income (loss) into income, (effective portion)			(230)				(220)
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	107				255
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	235				(461)
Gains (losses) recognized in other comprehensive income on derivative, (effective portion)			1,544				577
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 currency swap agreements | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	100				108
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 currency swap agreements | Finance revenues/Interest expense/Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income, (effective portion)			579				(515)
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency swap agreements | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	(25)				260
Derivatives designated as hedging instruments | Fair value hedges | Interest rate swap agreements
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative			(5,781)				(4,553)
Gains (losses) recognized in income on hedged item			5,781				4,553
Derivatives designated as hedging instruments | Fair value hedges | Interest rate swap agreements | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	0				0
Gains (losses) recognized in income on hedged item	0				0
Derivatives designated as hedging instruments | Fair value hedges | Interest rate swap agreements | 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	3,346				(5,794)
Gains (losses) recognized in income on hedged item	(3,299)				5,431
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	127		830		153		(3,834)
Gains (losses) recognized in income on hedged item	(98)		(953)		(128)		3,711
Derivatives designated as hedging instruments | Fair value hedges | Foreign exchange contracts | 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	(934)				1,172
Gains (losses) recognized in income on hedged item	1,370				(910)
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	(12,324)				4,380
Gains (losses) recognized in other comprehensive income on derivative, (effective portion)			4,234				2,500
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)			0				0
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Foreign exchange contracts | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	7				21
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 other comprehensive income (loss) into income	1,594				1,594
Gains (losses) reclassified from other comprehensive income (loss) into income, (effective portion)			0				(115)
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Foreign exchange contracts | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	1,194				3,448
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Debt Loans and Bonds in Foreign Currencies [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income on derivative	(10,477)				8,342
Gains (losses) recognized in other comprehensive income on derivative, (effective portion)			14,711				(7,377)
Gains (losses) reclassified from other comprehensive income (loss) into income, (effective portion)			0				0
Gains (losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)			0				0
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Debt Loans and Bonds in Foreign Currencies [Member] | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	0				0
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Debt Loans and Bonds in Foreign Currencies [Member] | Gains on sales of subsidiaries and affiliates and liquidation losses, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	0				0
Derivatives designated as hedging instruments | Hedges of net investment in foreign operations | Debt Loans and Bonds in Foreign Currencies [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from other comprehensive income (loss) into income	0				0
Nondesignated | Other (income) and expense, net | Futures
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	1,760				2,367
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			5,257	[1]			2,573	[2]
Nondesignated | Other Income (Expense), Net and Life Insurance Premiums and Related Investment Income (Loss) | Futures
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	(2,284)	[3]			(3,292)	[4]
Nondesignated | Interest Expense [Member] | Futures
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	0				0
Nondesignated | Interest rate swap agreements | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	(12)		(134)		120		1,013
Nondesignated | Interest rate swap agreements | 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	0	[3]			0	[4]
Nondesignated | Interest rate swap agreements | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	2				5
Nondesignated | Foreign exchange contracts | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	6,017				1,494
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			5,819	[1]			(2,037)	[2]
Nondesignated | Foreign exchange contracts | 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	(337)	[3]			177	[4]
Nondesignated | Foreign exchange contracts | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	1,119				3,635
Nondesignated | Credit derivatives held/written | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	10		40		(6)		59
Nondesignated | Credit derivatives held/written | 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	0	[3]			0	[4]
Nondesignated | Credit derivatives held/written | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	0				0
Nondesignated | Options held/written and other | Other (income) and expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	1,328				1,202
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	(85)	[3]	¥ (1,350)	[1]	(180)	[4]	¥ (1,077)	[2]
Nondesignated | Options held/written and other | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	¥ 0				¥ 0

[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 December 31, 2018 (see Note 17 “Life Insurance Operations”).

[2] Futures, foreign exchange contracts and options held/written and other in the above table include 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 nine months ended December 31, 2018 (see Note 17 “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 three months ended December 31, 2019 (see Note 17 “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 nine months ended December 31, 2019 (see Note 17 “Life Insurance Operations”).

XML

ORIX Corporation Shareholders' Equity (Information about Dividend Payments and Applicable Dividends) (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Dividends Payable [Line Items]
Resolution	The board of directors on May 21, 2018 and May 22, 2019
Type of shares	Common stock
Total dividends paid	¥ 58,962	¥ 49,984
Dividend per share	¥ 46.00	¥ 39.00
Date of record for dividend	Mar. 31, 2019	Mar. 31, 2018
Effective date for dividend	Jun. 03, 2019	Jun. 05, 2018
Dividend resource	Retained earnings
Effective Date [Member]
Dividends Payable [Line Items]
Resolution	The board of directors on October 26, 2018 and October 28, 2019
Type of shares	Common stock
Total dividends paid	¥ 44,862	¥ 38,453
Dividend per share	¥ 35.00	¥ 30.00
Date of record for dividend	Sep. 30, 2019	Sep. 30, 2018
Effective date for dividend	Dec. 03, 2019	Dec. 04, 2018

XML

Redeemable Noncontrolling Interests (Changes in Redeemable Noncontrolling Interests) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Beginning balance			¥ 9,780	¥ 7,420
Comprehensive income
Net income			359	434
Other comprehensive income (loss)
Net change of foreign currency translation adjustments			(130)	326
Total other comprehensive income (loss)			(130)	326
Comprehensive income	¥ 182	¥ 173	229	760
Dividends			(289)	(501)
Ending balance	¥ 9,720	¥ 7,679	¥ 9,720	¥ 7,679

XML

Life Insurance Operations (Life Insurance Premiums and Related Investment Income) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended				9 Months Ended
	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018
Net Investment Income [Line Items]
Total revenue	¥ 289,145		¥ 325,457		¥ 866,201		¥ 1,052,813
Life insurance premiums
Net Investment Income [Line Items]
Total revenue	87,421		79,623		254,683		233,134
Life insurance related investment income(loss)
Net Investment Income [Line Items]
Total revenue	20,767	[1]	(32,207)	[1]	35,973	[2]	(5,114)	[2]
Life Insurance Premiums And Related Investment Income
Net Investment Income [Line Items]
Total revenue	¥ 108,188		¥ 47,416		¥ 290,656		¥ 228,020

[1] Life insurance related investment income for the three months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥43,010 million and a net unrealized holding gain of ¥0 million on equity securities held as of December 31, 2018 and 2019, respectively.

[2] Life insurance related investment income for the nine months ended December 31, 2018 and 2019 include a net unrealized holding loss of ¥23,189 million and a net unrealized holding gain of ¥0 million on equity securities held as of December 31, 2018 and 2019, respectively.

XML

Redeemable Noncontrolling Interests (Tables)

9 Months Ended

Dec. 31, 2019

Noncontrolling Interest [Abstract]

Changes in Redeemable Noncontrolling Interests

Changes in redeemable noncontrolling interests for the nine months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Beginning balance	¥	7,420		¥	9,780
Comprehensive income
Net income		434			359
Other comprehensive income (loss)
Net change of foreign currency translation adjustments		326			(130	)
Total other comprehensive income (loss)		326			(130	)
Comprehensive income		760			229
Dividends		(501	)		(289	)
Ending balance	¥	7,679		¥	9,720

XML

Pension Plans (Tables)

9 Months Ended

Dec. 31, 2019

Net Pension Cost of Defined Benefit Plans

Net periodic pension cost for the nine months ended December 31, 2018 and 2019 consists of the following:

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Japanese plans:
Service cost	¥	4,144		¥	4,384
Interest cost		542			438
Expected return on plan assets		(2,042	)		(2,083	)
Amortization of prior service credit		(673	)		(615	)
Amortization of net actuarial loss		633			865
Amortization of transition obligation		0			0
Net periodic pension cost	¥	2,604		¥	2,989
	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Overseas plans:
Service cost	¥	2,433		¥	2,649
Interest cost		1,484			1,275
Expected return on plan assets		(3,292	)		(3,242	)
Amortization of prior service credit		(134	)		(115	)
Amortization of net actuarial loss		59			368
Amortization of transition obligation		3			2
Net periodic pension cost	¥	553		¥	937

Net pension cost of the plans for the three months ended December 31, 2018 and 2019 consists of the following:

	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Japanese plans:
Service cost	¥	1,382		¥	1,507
Interest cost		181			151
Expected return on plan assets		(680	)		(713	)
Amortization of prior service credit		(225	)		(210	)
Amortization of net actuarial loss		211			288
Amortization of transition obligation		0			0
Net periodic pension cost	¥	869		¥	1,023
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Overseas plans:
Service cost	¥	802		¥	883
Interest cost		491			426
Expected return on plan assets		(1,090	)		(1,101	)
Amortization of prior service credit		(44	)		(39	)
Amortization of net actuarial loss		20			113
Amortization of transition obligation		1			0
Net periodic pension cost	¥	180		¥	282

Note: The components of net periodic pension cost other than the service cost component are included in personnel expenses, which is included in selling, general and administrative expenses in the consolidated statements of income.

XML

Revenues from Contracts with Customers - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue From Contract With Customers [Line Items]
Contract liabilities decrease due to deconsolidation of contract liabilities			¥ 14,342
Revenue included in contract liabilities	¥ 5,262	¥ 5,328	28,209	¥ 34,564
Revenue remaining performance obligation	¥ 142,028		¥ 142,028
Automobile Services [Member]
Revenue From Contract With Customers [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years		10 years
Maximum
Revenue From Contract With Customers [Line Items]
Revenue remaining performance obligation expected timing of satisfaction, period			Remaining term for the obligations ranges up to 15 years

XML

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		Dec. 31, 2019	Mar. 31, 2019
Offsetting Asset and Liabilities [Line Items]
Gross amounts recognized, assets		¥ 15,683	¥ 15,495
Gross amounts offset in the consolidated balance sheets, assets		(514)	(1,497)
Net amounts presented in the consolidated balance sheets, assets		15,169	13,998
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets	[1]	(16)	(196)
Gross amounts not offset in the consolidated balance sheets, collateral, assets	[1]	0	0
Net amount, assets		15,153	13,802
Gross amounts recognized, liabilities		51,188	25,958
Gross amounts offset in the consolidated balance sheets, liabilities		(514)	(1,497)
Net amounts presented in the consolidated balance sheets, liabilities		50,674	24,461
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities	[1]	(14,143)	(8,353)
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities	[1]	(1,313)	(79)
Net amount, liabilities		35,218	16,029
Derivative liabilities
Offsetting Asset and Liabilities [Line Items]
Gross amounts recognized, liabilities		51,188	25,958
Gross amounts offset in the consolidated balance sheets, liabilities		(514)	(1,497)
Net amounts presented in the consolidated balance sheets, liabilities		50,674	24,461
Gross amounts not offset in the consolidated balance sheets, financial instruments, liabilities	[1]	(14,143)	(8,353)
Gross amounts not offset in the consolidated balance sheets, collateral, liabilities	[1]	(1,313)	(79)
Net amount, liabilities		35,218	16,029
Derivative assets
Offsetting Asset and Liabilities [Line Items]
Gross amounts recognized, assets		15,683	15,495
Gross amounts offset in the consolidated balance sheets, assets		(514)	(1,497)
Net amounts presented in the consolidated balance sheets, assets		15,169	13,998
Gross amounts not offset in the consolidated balance sheets, financial instruments, assets	[1]	(16)	(196)
Gross amounts not offset in the consolidated balance sheets, collateral, assets	[1]	0	0
Net amount, assets		¥ 15,153	¥ 13,802

[1] The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets.

XML

Variable Interest Entities (Information about Non-consolidated VIEs) (Detail) - JPY (¥) ¥ in Millions		Dec. 31, 2019	Mar. 31, 2019
Variable Interest Entity [Line Items]
Total assets		¥ 5,118,294	¥ 4,937,307
Non-recourse loans		2,929	3,200
Investments		90,882	120,866
Maximum exposure to loss	[1]	110,956	147,260
Liquidating Customer Assets
Variable Interest Entity [Line Items]
Total assets		8,452	8,524
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		36,619	34,872
Non-recourse loans		0	0
Investments		2,527	3,426
Maximum exposure to loss	[1]	2,527	3,426
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		3,723,534	3,493,461
Non-recourse loans		0	0
Investments		56,979	60,329
Maximum exposure to loss	[1]	74,001	81,337
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		1,128,788	982,353
Non-recourse loans		0	0
Investments		17,227	21,768
Maximum exposure to loss	[1]	17,233	21,776
Power Generation Projects
Variable Interest Entity [Line Items]
Total assets		25,264	26,495
Non-recourse loans		0	0
Investments		1,709	1,783
Maximum exposure to loss	[1]	1,709	1,783
Other VIEs
Variable Interest Entity [Line Items]
Total assets		195,637	391,602
Non-recourse loans		2,929	3,200
Investments		11,449	32,569
Maximum exposure to loss	[1]	¥ 14,495	¥ 37,947

[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.

XML

Commitments, Guarantees and Contingent Liabilities - Minimum Future Rentals on Non-Cancelable Operating Leases (Detail) ¥ in Millions	Mar. 31, 2019 JPY (¥)
Commitments and Contingencies Disclosure [Abstract]
2020	¥ 7,694
2021	6,647
2022	5,923
2023	5,434
2024	4,802
Thereafter	34,485
Total	¥ 64,985

XML

Transfer of Financial Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Transfer of Financial Assets Accounted for as Sales [Line Items]
Gain (losses) on sale from securitization and loan sales	¥ 3,675	¥ 4,110	¥ 13,378	¥ 12,122
Installment Loans
Transfer of Financial Assets Accounted for as Sales [Line Items]
Installment loans	¥ 154,890	¥ 152,310	¥ 431,379	¥ 370,946

XML

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 (¥)	9 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	¥ 9,805,000,000	¥ 22,428,000,000
Real Estate Collateral Dependent Loans | Direct Capitalization Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	¥ 4,494,000,000	¥ 6,630
Valuation Technique(s)	Direct capitalization	Direct capitalization
Significant Unobservable Inputs	Capitalization rate	Capitalization rate
Real Estate Collateral Dependent Loans | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Technique(s)	Appraisals	Appraisals
Real Estate Collateral Dependent Loans | Minimum | Direct Capitalization Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range Discount Rate	5.60%	5.80%
Real Estate Collateral Dependent Loans | Maximum | Direct Capitalization Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range Discount Rate	6.60%	8.20%
Real Estate Collateral Dependent Loans | Weighted Average | Direct Capitalization Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range Discount Rate		6.30%
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		¥ 2,345,000,000
Valuation Technique(s)		Discounted cash flows
Significant Unobservable Inputs		Discount rate
Range Discount Rate		7.30%
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	¥ 3,750,000,000	¥ 10,556,000,000
Valuation Technique(s)	Appraisals	Appraisals
Investment in operating leases and property under facility operations | Weighted Average | Discounted Cash Flows Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range Discount Rate		7.30%
Investment in operating leases and property under facility operations | Weighted Average | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range Discount Rate	6.10%
Certain Investment in Affiliates | Discounted Cash Flows Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Technique(s)		Discounted cash flows
Significant Unobservable Inputs		Discount rate
Range Discount Rate		14.00%
Certain Investment in Affiliates | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	¥ 1,561,000,000	¥ 2,563,000,000
Valuation Technique(s)	Appraisals	Appraisals
Certain Investment in Affiliates | Business enterprise value multiples
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		¥ 334,000,000
Valuation Technique(s)		Business enterprise value multiples
Certain Investment in Affiliates | Weighted Average | Discounted Cash Flows Valuation Technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range Discount Rate		14.00%

XML

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		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	¥ 65,854	¥ 44,559	¥ 61,193
Gains or losses (realized/ unrealized), included in earnings	929	241	5,594
Gains or losses (realized/ unrealized), included in other comprehensive income	1,283	(1,056)	(131)
Gains or losses (realized/ unrealized), total	2,212	(815)	5,463
Purchases	4,639	17,535	10,075
Sales	(3,368)	(4,659)	(5,760)
Settlements	(3,155)	0	(4,789)
Transfers in and/or out of Level 3 (net)	0	0	0
Ending Balance	66,182	56,620	66,182	¥ 56,620
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	1,137	140	5,532
Investment funds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	65,854	44,559
Gains or losses (realized/ unrealized), included in earnings	929	241
Gains or losses (realized/ unrealized), included in other comprehensive income	1,283	(1,056)
Gains or losses (realized/ unrealized), total	2,212	(815)
Purchases	4,639	17,535
Sales	(3,368)	(4,659)
Settlements	(3,155)	0
Transfers in and/or out of Level 3 (net)	0	0
Ending Balance	66,182	56,620	66,182	56,620
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	1,137	140
Investment funds | Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance			61,193
Gains or losses (realized/ unrealized), included in earnings			5,594
Gains or losses (realized/ unrealized), included in other comprehensive income			(131)
Gains or losses (realized/ unrealized), total			5,463
Purchases			10,075
Sales			(5,760)
Settlements			(4,789)
Transfers in and/or out of Level 3 (net)			0
Ending Balance	66,182		66,182
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period			5,532
Options held/written and other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	16,275	743	5,272
Gains or losses (realized/ unrealized), included in earnings	(6,123)	1,021	5,238
Gains or losses (realized/ unrealized), included in other comprehensive income	265	0	(93)
Gains or losses (realized/ unrealized), total	(5,858)	1,021	5,145
Purchases	0	0	0
Sales	0	0	0
Settlements	0	(375)	0
Transfers in and/or out of Level 3 (net)	0	0	0
Ending Balance	10,417	1,389	10,417	1,389
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	(6,123)	1,021	5,238
Other assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	11,382	11,121	12,449	15,008
Gains or losses (realized/ unrealized), included in earnings	(2,874)	6,073	(5,355)	480
Gains or losses (realized/ unrealized), included in other comprehensive income	0	0	0	0
Gains or losses (realized/ unrealized), total	(2,874)	6,073	(5,355)	480
Purchases	750	847	2,303	2,800
Sales	0	0	0	0
Settlements	(39)	(239)	(178)	(486)
Transfers in and/or out of Level 3 (net)	0	0	0	0
Ending Balance	9,219	17,802	9,219	17,802
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	(2,874)	6,073	(5,355)	480
Variable Annuity and Variable Life Insurance Contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance			360,198	444,010
Gains or losses (realized/ unrealized), included in earnings			(12,426)	18,993
Gains or losses (realized/ unrealized), included in other comprehensive income			189	422
Gains or losses (realized/ unrealized), total			(12,237)	19,415
Purchases			0	0
Sales			0	0
Settlements			(39,418)	(62,522)
Transfers in and/or out of Level 3 (net)			0	0
Ending Balance	333,017	362,073	333,017	362,073
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period			(12,426)	18,993
Reinsurance Recoverable | Other assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	11,382	11,121	12,449	15,008
Gains or losses (realized/ unrealized), included in earnings	(2,874)	6,073	(5,355)	480
Gains or losses (realized/ unrealized), included in other comprehensive income	0	0	0	0
Gains or losses (realized/ unrealized), total	(2,874)	6,073	(5,355)	480
Purchases	750	847	2,303	2,800
Sales	0	0	0	0
Settlements	(39)	(239)	(178)	(486)
Transfers in and/or out of Level 3 (net)	0	0	0	0
Ending Balance	9,219	17,802	9,219	17,802
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	(2,874)	6,073	(5,355)	480
Insurance Contract, Rights and Obligations
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	336,840	405,705	360,198	444,010
Gains or losses (realized/ unrealized), included in earnings	(10,387)	28,247	(12,426)	18,993
Gains or losses (realized/ unrealized), included in other comprehensive income	(94)	534	189	422
Gains or losses (realized/ unrealized), total	(10,481)	28,781	(12,237)	19,415
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	(14,304)	(14,851)	(39,418)	(62,522)
Transfers in and/or out of Level 3 (net)	0	0	0	0
Ending Balance	333,017	362,073	333,017	362,073
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	(10,387)	28,247	(12,426)	18,993
Insurance Contract, Rights and Obligations | Variable Annuity and Variable Life Insurance Contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	336,840	405,705
Gains or losses (realized/ unrealized), included in earnings	(10,387)	28,247
Gains or losses (realized/ unrealized), included in other comprehensive income	(94)	534
Gains or losses (realized/ unrealized), total	(10,481)	28,781
Purchases	0	0
Sales	0	0
Settlements	(14,304)	(14,851)
Transfers in and/or out of Level 3 (net)	0	0
Ending Balance	333,017	362,073	333,017	362,073
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	(10,387)	28,247
Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance				120,917
Gains or losses (realized/ unrealized), included in earnings				2,032
Gains or losses (realized/ unrealized), included in other comprehensive income				288
Gains or losses (realized/ unrealized), total				2,320
Purchases				36,231
Sales				(22,186)
Settlements				(24,476)
Transfers in and/or out of Level 3 (net)				(20,101)
Ending Balance		92,705		92,705
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				304
Available-for-sale securities | Corporate debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance				3,037
Gains or losses (realized/ unrealized), included in earnings				0
Gains or losses (realized/ unrealized), included in other comprehensive income				5
Gains or losses (realized/ unrealized), total				5
Purchases				0
Sales				0
Settlements				(685)
Transfers in and/or out of Level 3 (net)				0
Ending Balance		2,357		2,357
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				0
Available-for-sale securities | CMBS and RMBS in the Americas
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance				36,010
Gains or losses (realized/ unrealized), included in earnings				1,034
Gains or losses (realized/ unrealized), included in other comprehensive income				546
Gains or losses (realized/ unrealized), total				1,580
Purchases				1,304
Sales				(6,711)
Settlements				(8,777)
Transfers in and/or out of Level 3 (net)				(23,406)
Ending Balance		0		0
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				0
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				81,870
Gains or losses (realized/ unrealized), included in earnings				998
Gains or losses (realized/ unrealized), included in other comprehensive income				(256)
Gains or losses (realized/ unrealized), total				742
Purchases				34,927
Sales				(15,475)
Settlements				(15,014)
Transfers in and/or out of Level 3 (net)				0
Ending Balance		87,050		87,050
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				304
Available-for-sale securities | Japanese prefectural and foreign municipal bond securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance				0
Gains or losses (realized/ unrealized), included in earnings				0
Gains or losses (realized/ unrealized), included in other comprehensive income				(7)
Gains or losses (realized/ unrealized), total				(7)
Purchases				0
Sales				0
Settlements				0
Transfers in and/or out of Level 3 (net)				3,305
Ending Balance		3,298		3,298
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				0
Other securities | Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance				37,879
Gains or losses (realized/ unrealized), included in earnings				1,957
Gains or losses (realized/ unrealized), included in other comprehensive income				523
Gains or losses (realized/ unrealized), total				2,480
Purchases				34,613
Sales				(18,352)
Settlements				0
Transfers in and/or out of Level 3 (net)				0
Ending Balance		56,620		56,620
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				1,685
Other securities | Investment funds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance				37,879
Gains or losses (realized/ unrealized), included in earnings				1,957
Gains or losses (realized/ unrealized), included in other comprehensive income				523
Gains or losses (realized/ unrealized), total				2,480
Purchases				34,613
Sales				(18,352)
Settlements				0
Transfers in and/or out of Level 3 (net)				0
Ending Balance		56,620		56,620
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				1,685
Derivative Financial Instruments, Assets and Liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	16,275	743	5,272	2,291
Gains or losses (realized/ unrealized), included in earnings	(6,123)	1,021	5,238	(1,377)
Gains or losses (realized/ unrealized), included in other comprehensive income	265	0	(93)	0
Gains or losses (realized/ unrealized), total	(5,858)	1,021	5,145	(1,377)
Purchases	0	0	0	1,673
Sales	0	0	0	0
Settlements	0	(375)	0	(1,198)
Transfers in and/or out of Level 3 (net)	0	0	0	0
Ending Balance	10,417	1,389	10,417	1,389
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	(6,123)	1,021	5,238	(1,377)
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				2,291
Gains or losses (realized/ unrealized), included in earnings				(1,377)
Gains or losses (realized/ unrealized), included in other comprehensive income				0
Gains or losses (realized/ unrealized), total				(1,377)
Purchases				1,673
Sales				0
Settlements				(1,198)
Transfers in and/or out of Level 3 (net)				0
Ending Balance		1,389		1,389
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period				(1,377)
Available-for-sale Debt Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	87,265	122,548	100,447
Gains or losses (realized/ unrealized), included in earnings	244	882	1,339
Gains or losses (realized/ unrealized), included in other comprehensive income	1,122	(4,450)	(1,023)
Gains or losses (realized/ unrealized), total	1,366	(3,568)	316
Purchases	17,532	3,259	33,606
Sales	(3,293)	(6,188)	(3,425)
Settlements	(1,904)	(3,245)	(26,987)
Transfers in and/or out of Level 3 (net)	0	(20,101)	(2,991)
Ending Balance	100,966	92,705	100,966	92,705
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	141	214	213
Available-for-sale Debt Securities | Corporate debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	3,638	2,547	7,158
Gains or losses (realized/ unrealized), included in earnings	0	0	0
Gains or losses (realized/ unrealized), included in other comprehensive income	(15)	5	(9)
Gains or losses (realized/ unrealized), total	(15)	5	(9)
Purchases	900	0	900
Sales	0	0	0
Settlements	(307)	(195)	(842)
Transfers in and/or out of Level 3 (net)	0	0	(2,991)
Ending Balance	4,216	2,357	4,216	2,357
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	0	0	0
Available-for-sale Debt Securities | CMBS and RMBS in the Americas
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		23,996
Gains or losses (realized/ unrealized), included in earnings		0
Gains or losses (realized/ unrealized), included in other comprehensive income		(590)
Gains or losses (realized/ unrealized), total		(590)
Purchases		0
Sales		0
Settlements		0
Transfers in and/or out of Level 3 (net)		(23,406)
Ending Balance		0		0
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period		0
Available-for-sale Debt Securities | Other asset-backed securities and debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	80,819	96,005	90,401
Gains or losses (realized/ unrealized), included in earnings	244	882	1,339
Gains or losses (realized/ unrealized), included in other comprehensive income	1,094	(3,858)	(977)
Gains or losses (realized/ unrealized), total	1,338	(2,976)	362
Purchases	16,632	3,259	32,706
Sales	(3,293)	(6,188)	(3,425)
Settlements	(1,597)	(3,050)	(26,145)
Transfers in and/or out of Level 3 (net)	0	0	0
Ending Balance	93,899	87,050	93,899	87,050
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	141	214	213
Available-for-sale Debt Securities | Japanese prefectural and foreign municipal bond securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	2,808	0	2,888
Gains or losses (realized/ unrealized), included in earnings	0	0	0
Gains or losses (realized/ unrealized), included in other comprehensive income	43	(7)	(37)
Gains or losses (realized/ unrealized), total	43	(7)	(37)
Purchases	0	0	0
Sales	0	0	0
Settlements	0	0	0
Transfers in and/or out of Level 3 (net)	0	3,305	0
Ending Balance	2,851	3,298	2,851	¥ 3,298
Change in unrealized gains or losses included in earnings for assets and liabilities still held at the end of period	¥ 0	¥ 0	¥ 0

XML

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	Dec. 31, 2019	Mar. 31, 2019
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	¥ 1,664,813	¥ 1,353,801
Available-for-sale securities, Gross unrealized gains	72,060	65,299
Available-for-sale securities, Gross unrealized losses	(16,002)	(10,530)
Available-for-sale securities, Fair value	1,720,871	1,408,570
Japanese Government Bond Securities
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	113,880	114,061
Available-for-sale securities, Gross unrealized gains	30,642	30,265
Available-for-sale securities, Gross unrealized losses	0	0
Available-for-sale securities, Fair value	144,522	144,326
Japanese and foreign government bond securities
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	578,705	416,218
Available-for-sale securities, Gross unrealized gains	21,685	20,133
Available-for-sale securities, Gross unrealized losses	(9,155)	(5,500)
Available-for-sale securities, Fair value	591,235	430,851
Japanese prefectural and foreign municipal bond securities
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	234,273	189,792
Available-for-sale securities, Gross unrealized gains	4,639	3,749
Available-for-sale securities, Gross unrealized losses	(624)	(236)
Available-for-sale securities, Fair value	238,288	193,305
Corporate debt securities
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	588,853	485,156
Available-for-sale securities, Gross unrealized gains	9,187	5,205
Available-for-sale securities, Gross unrealized losses	(3,285)	(2,364)
Available-for-sale securities, Fair value	594,755	487,997
CMBS and RMBS in the Americas
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	56,764	59,954
Available-for-sale securities, Gross unrealized gains	2,538	2,566
Available-for-sale securities, Gross unrealized losses	(1,340)	(1,041)
Available-for-sale securities, Fair value	57,962	61,479
Other asset-backed securities and debt securities
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	92,338	88,620
Available-for-sale securities, Gross unrealized gains	3,369	3,381
Available-for-sale securities, Gross unrealized losses	(1,598)	(1,389)
Available-for-sale securities, Fair value	94,109	90,612
Equity securities
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized cost	1,550,933	1,239,740
Available-for-sale securities, Gross unrealized gains	41,418	35,034
Available-for-sale securities, Gross unrealized losses	(16,002)	(10,530)
Available-for-sale securities, Fair value	¥ 1,576,349	¥ 1,264,244

XML

Write-Downs of Long-Lived Assets

9 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Write-Downs of Long-Lived Assets

18. 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, 2019 and December 31, 2019, the long-lived assets and liabilities associated with those assets classified as held for sale in the accompanying consolidated balance sheets are as follows.

	Millions of yen
	As of March 31, 2019		As of December 31, 2019
Investment in operating leases	¥	24,956	¥	37,875
Property under facility operations		44,473		0
Other assets		19		812

The long-lived assets classified as held for sale as of March 31, 2019 are included in Corporate Financial Services segment, Real Estate segment, Investment and Operation segment and Overseas Business segment. The long-lived assets classified as held for sale as of December 31, 2019 are included in Corporate Financial Services segment, Real Estate 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 nine months ended December 31, 2018 and 2019, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥26 million and ¥554 million, respectively, which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.

	Nine months ended December 31, 2018				Nine months ended December 31, 2019
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Write-downs due to decline in estimated future cash flows:
Commercial facilities other than office buildings	¥	16		1	¥	529		2
Others *		10		—		25		—
Total	¥	26		—	¥	554		—

* For the “Others,” the number of properties is omitted.

Losses of ¥16 million in Real Estate segment and ¥10 million in Overseas Business segment were recorded for the nine months ended December 31, 2018. Losses of ¥534 million in Overseas Business segment and ¥20 million in Real Estate segment were recorded for the nine months ended December 31, 2019.

For the three months ended December 31, 2018, there were no impairment losses. For the three months ended December 31, 2019, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥518 million which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.

	Three months ended December 31, 2018				Three months ended December 31, 2019
	Amount (Millions of yen)		The number of properties		Amount (Millions of yen)		The number of properties
Write-downs due to decline in estimated future cash flows:
Commercial facilities other than office buildings	¥	0		—	¥	509		1
Others *		0		—		9		—
Total	¥	0		—	¥	518		—

* For the “Others,” the number of properties is omitted.

Losses of ¥518 million in Overseas Business segment were recorded for the three months ended December 31, 2019.

XML

ORIX Corporation Shareholders' Equity

9 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

ORIX Corporation Shareholders' Equity

14. ORIX Corporation Shareholders’ Equity

Information about ORIX Corporation Shareholders’ Equity for the nine months ended December 31, 2018 and 2019 are as follows:

(1) Dividend payments

	Nine months ended December 31, 2018	Nine months ended December 31, 2019
Resolution	The board of directors on May 21, 2018	The board of directors on May 22, 2019
Type of shares	Common stock	Common stock
Total dividends paid	¥49,984 million	¥58,962 million
Dividend per share	¥39.00	¥46.00
Date of record for dividend	March 31, 2018	March 31, 2019
Effective date for dividend	June 5, 2018	June 3, 2019
Dividend resource	Retained earnings	Retained earnings

Resolution	The board of directors on October 26, 2018	The board of directors on October 28, 2019
Type of shares	Common stock	Common stock
Total dividends paid	¥38,453 million	¥44,862 million
Dividend per share	¥30.00	¥35.00
Date of record for dividend	September 30, 2018	September 30, 2019
Effective date for dividend	December 4, 2018	December 3, 2019
Dividend resource	Retained earnings	Retained earnings

Total dividends paid by resolution of the board of directors on May 21, 2018 include ¥64 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2018. Total dividends paid by resolution of the board of directors on May 22, 2019 include ¥83 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2019.

Total dividends paid by resolution of the board of directors on October 26, 2018 include ¥55 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2018. Total dividends paid by resolution of the board of directors on October 28, 2019 include ¥62 million of dividends paid to the Board Incentive Plan Trust for the nine months ended December 31, 2019.

(2) There were no applicable dividends for which the date of record was in the nine months ended December 31, 2018 and 2019, and for which the effective date was after December 31, 2018 and 2019.

XML

Variable Interest Entities

9 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

10. Variable Interest Entities

The Company and its subsidiaries use 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, “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; and

• 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 factors 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; and

• 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; and

• providing liquidity and other financial support.

The Company and its subsidiaries do not have the power to direct activities of a VIE that most significantly impact the VIE’s economic performance if that power is shared among multiple unrelated parties, and accordingly do not consolidate such VIE.

Information about VIEs (consolidated and non-consolidated) for the Company and its subsidiaries are as follows:

1. Consolidated VIEs

March 31, 2019

	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		2,014		0		0		0
(c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business		94,404		31,208		49,587		0
(d) VIEs for corporate rehabilitation support business		564		30		0		0
(e) VIEs for investment in securities		72,347		121		42		0
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		228,859		175,115		228,859		0
(g) VIEs for securitization of loan receivable originated by third parties		2,264		2,729		2,264		0
(h) VIEs for power generation projects		282,739		195,915		242,937		54,533
(i) Other VIEs		149,333		45,082		120,312		0
Total	¥	832,524	¥	450,200	¥	644,001	¥	54,533
December 31, 2019
	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		2,485		1		0		0
(c) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business		89,455		16,597		18,204		0
(d) VIEs for corporate rehabilitation support business		750		262		0		0
(e) VIEs for investment in securities		64,121		44		0		0
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		221,885		129,068		221,885		0
(g) VIEs for securitization of loan receivable originated by third parties		2,495		3,193		2,495		0
(h) VIEs for power generation projects		397,330		285,406		356,841		42,015
(i) Other VIEs		170,143		71,216		150,321		0
Total	¥	948,664	¥	505,787	¥	749,746	¥	42,015

*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 VIEs

March 31, 2019

	Millions of yen
			Carrying amount of the variable interests in the VIEs held by the  Company and its subsidiaries				Maximum exposure to loss *
Types of VIEs	Total assets		Non-recourse loans		Investments
(a) VIEs for liquidating customer assets	¥	8,524	¥	0	¥	991	¥	991
(b) VIEs for acquisition of real estate and real estate development projects for customers		34,872		0		3,426		3,426
(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		3,493,461		0		60,329		81,337
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		0		0		0		0
(g) VIEs for securitization of loan receivable originated by third parties		982,353		0		21,768		21,776
(h) VIEs for power generation projects		26,495		0		1,783		1,783
(i) Other VIEs		391,602		3,200		32,569		37,947
Total	¥	4,937,307	¥	3,200	¥	120,866	¥	147,260
December 31, 2019
	Millions of yen
			Carrying amount of the variable interests in the VIEs held by the Company and its subsidiaries				Maximum exposure to loss *
Types of VIEs	Total assets		Non-recourse loans		Investments
(a) VIEs for liquidating customer assets	¥	8,452	¥	0	¥	991	¥	991
(b) VIEs for acquisition of real estate and real estate development projects for customers		36,619		0		2,527		2,527
(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		3,723,534		0		56,979		74,001
(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable		0		0		0		0
(g) VIEs for securitization of loan receivable originated by third parties		1,128,788		0		17,227		17,233
(h) VIEs for power generation projects		25,264		0		1,709		1,709
(i) Other VIEs		195,637		2,929		11,449		14,495
Total	¥	5,118,294	¥	2,929	¥	90,882	¥	110,956

* 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 loans from financial institutions and have an equity investment made by the customer. By using cash flows from the liquidated assets, these VIEs repay the loan and pay dividends to equity investors if sufficient funds exist.

Variable interests of non-consolidated VIEs, which the Company has, are mainly included in other assets in the Company’s consolidated balance sheets.

(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 loans to such VIEs and hold specified bonds issued by them and/or make investments in them. The Company and its subsidiaries have consolidated certain VIEs because the Company or its subsidiary effectively controls the VIEs by acting as the asset manager of the VIEs.

In the Company’s consolidated balance sheets, assets of consolidated VIEs are mainly included in cash and cash equivalents and investment in affiliates.

Variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, are mainly included in investment in securities, investment in affiliates and other assets in the Company’s consolidated balance sheets. The Company and its subsidiaries concluded that the VIEs are not consolidated because the power to direct these VIEs is held by unrelated parties. In some cases, the Company and its subsidiaries concluded that the VIEs are not consolidated because the power to direct these VIEs is shared among multiple unrelated parties.

(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 loans from financial institutions and simplify the administration activities necessary for the real estate.

The Company and its subsidiaries consolidate such VIEs even though the Company and its subsidiaries may not have voting rights if substantially all of such VIEs’ subordinated interests are issued to the Company and its subsidiaries, and therefore the VIEs are controlled by and for the benefit of the Company and its subsidiaries.

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, investment in securities, property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in long-term debt and other liabilities.

(d) VIEs for corporate rehabilitation support business

Financial institutions, the Company and its subsidiaries 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 subsidiaries consolidated such VIEs since the Company and its subsidiaries 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 other liabilities.

Variable interests of non-consolidated VIEs, which the Company and its subsidiaries have, are included in investment in securities in the Company’s consolidated balance sheets. The Company and its subsidiaries have commitment agreements by which the Company and its subsidiaries may be required to make additional investment in certain such non-consolidated VIEs.

(f) VIEs for securitizing financial assets such as finance lease receivable and loan receivable

The Company and its subsidiaries use VIEs to securitize financial assets such as finance lease 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 mainly included in restricted cash, net investment in leases and installment loans, and liabilities of those consolidated VIEs are mainly 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 VIEs, which the Company and its subsidiaries have, are included in investment in securities in the Company’s consolidated balance sheets. The Company has a commitment agreement by which the Company may be required to make additional investment in certain such non-consolidated VIEs.

(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, construct solar power stations, thermal power stations and wind power stations 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 cash and cash equivalents, restricted cash, property under facility operations and other assets, and liabilities of those consolidated VIEs are mainly included in trade notes, accounts and other payable, long-term debt, and other liabilities. The Company and certain subsidiaries have commitment agreements by which the Company and the subsidiaries may be required to make additional investment or execute loans in certain such consolidated VIEs.

Variable interests of non-consolidated VIEs, which the Company has, are included in investment in affiliates in the Company’s consolidated balance sheets.

(i) Other VIEs

The Company and its subsidiaries are involved with other types of VIEs for various purposes. Consolidated and non-consolidated VIEs of this category are mainly kumiai structures. In addition, certain subsidiaries have consolidated VIEs that are not included in the categories (a) through (h) above, because the subsidiaries hold the subordinated portion of the VIEs and the VIEs are effectively controlled by the subsidiaries.

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 loan from one or more financial institutions. The kumiai investors (and any lenders to the kumiai structure) retain all of the economic risks and rewards in connection with purchasing and leasing activities of the kumiai structure, and all related gains or losses are recorded on the financial statements of the investors in the kumiai. The Company and its subsidiaries are responsible for the arrangement and marketing of these products and may act as servicer or administrator in kumiai transactions. The fee income for the arrangement and administration of these transactions is recognized in the Company’s consolidated statements of income. In some cases, the Company and its subsidiaries make investments in the kumiai or its related SPE, and these VIEs are consolidated because the Company and its subsidiaries have a responsibility to absorb any significant potential loss through the investments and have the power to direct the activities that most significantly impact their economic performance. In other cases, the Company and its subsidiaries are not considered to be the primary beneficiary of the VIEs or kumiais because the Company and its subsidiaries did not make significant investments or guarantee or otherwise undertake any significant financial commitments or exposure with respect to the kumiai or its related SPE.

The Company may use VIEs for financing. The Company transfers its own held assets to SPEs, which borrow non-recourse loan from financial institutions and effectively pledge such assets as collateral. The Company continually holds subordinated interests in the SPEs and performs administrative work of such assets. The Company consolidates such SPEs because the Company has a right to direct the activities of them that most significantly impact their economic performance by setting up the scheme and performing administrative work of the assets and has the obligation to absorb expected losses of them by holding the subordinated interests.

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 and other liabilities.

Variable interests in non-consolidated VIEs, which the Company and its subsidiaries have, non-recourse loans are included in installment loans, and investments are mainly included in investment in securities and investment in affiliates in the Company’s consolidated balance sheets. Certain subsidiaries have commitment agreements by which the Company and its subsidiaries may be required to make additional investment in certain such non-consolidated VIEs.

XML

Leases

9 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

6. Leases

(1) Lessor

Lessor leases consist of leases for various equipment types, including office equipment, industrial machinery, transportation equipment and real estate. Net investment in leases includes sales-type leases and direct-financing leases. Interest income on net investment in leases is recognized over the life of each respective lease using the interest method. Sales-type leases and direct financing leases are full-payout leases. Leases not qualifying as sales-type leases or direct financing leases are accounted for as operating leases and related revenue is recognized on an equality over the lease term. In providing leasing services, the Company and its subsidiaries execute supplemental businesses, such as paying insurance and handling taxes on leased assets on behalf of lessees.

Some of the contracts include options to extend or to terminate the lease. The Company and its subsidiaries determine the lease term while taking such periods covered by options into account when determined the lease term when it is reasonably certain that it will exercise these options. The majority of the lease contracts do not contain bargain purchase options for customers.

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 determined 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. The Company and its subsidiaries may incur losses if the estimated residual amounts are unable to collect or need to recognize valuation losses when the estimates differ from actual trends in equipment valuation and the secondhand market. The risk of loss on leased assets relating to the estimated unguaranteed residual value of the leased assets is monitored through projections of the estimated unguaranteed residual value at lease origination and periodic review of estimated unguaranteed residual value.

Initial direct costs of sales-type leases and direct financing leases are mainly 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 of sales-type leases and direct financing leases is reflected as net investment in leases. Initial direct costs of operating leases are being deferred and amortized as a straight-line basis over the life of the related lease. The unamortized balance of initial direct costs is reflected as investment in operating leases.

When auto leases are bundled with maintenance contracts, considerations on contracts are allocated based upon the estimated standalone selling prices of the lease and non-lease components. Lease components generally include product and financing cost, and non-lease components generally consist of maintenance contracts.

Certain subsidiary is providing automobile related services, and applying practical expedients, to not separate non-lease components from the associated lease components. In this service, ASC 606 is applied to the entire contract because the consideration related to non-lease components accounts for the majority of contract consideration. Revenues from these operations are recognized over the customers’ usage period of the services, since customers simultaneously receive and consume the benefits when the performance obligations are satisfied. The value transferred to customers is directly measured based on the usage period.

Lease income for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Lease income—net investment in leases
Interest income	¥	41,028
Other		1,601
Lease income—operating leases *		303,148
Total lease income	¥	345,777

* Gains from the disposition of real estate under operating leases included in operating lease revenues are ¥23,044 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues are ¥14,234 million for the nine months ended December 31, 2019.

	Millions of yen
	Three months ended December 31, 2019
Lease income—net investment in leases
Interest income	¥	14,020
Other		511
Lease income—operating leases *		100,743
Total lease income	¥	115,274

* Gains from the disposition of real estate under operating leases included in operating lease revenues are ¥4,636 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues are ¥6,047 million for the three months ended December 31, 2019.

Lease income from net investment in leases is included in finance revenues in the consolidated statements of income.

Net investment in leases at December 31, 2019 consists of the following:

	Millions of yen
	December 31, 2019
Lease receivables	¥	1,108,611
Unguaranteed residual value		29,325
Initial direct costs		4,403
Total	¥	1,142,339

Investment in operating leases at December 31, 2019 consists of the following:

	Millions of yen
	December 31, 2019
Transportation equipment	¥	1,386,422
Measuring and information-related equipment		278,294
Real estate		305,842
Other		31,593
		2,002,151
Accumulated depreciation		(659,318	)
Net		1,342,833
Right-of-use assets (operating leases)		128,951
Accrued rental receivables		33,469
Total	¥	1,505,253

Costs of operating leases include depreciation and various expenses (insurance, property tax and other). Depreciation and various expenses for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Depreciation expenses	¥	155,668
Various expenses		41,641
Total	¥	197,309

	Millions of yen
	Three months ended December 31, 2019
Depreciation expenses	¥	52,714
Various expenses		13,674
Total	¥	66,388

Remaining lease receivables of net investment in leases (including residual value guarantees) range up to 30 years at December 31, 2019. Remaining lease receivables of the operating lease contracts range up to 61 years at December 31, 2019. At December 31, 2019, the amounts due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending December 31,	Net investment in leases			Operating leases
2020	¥	455,576		¥	289,678
2021		307,960			200,061
2022		205,011			138,467
2023		121,870			91,911
2024		68,358			55,608
Thereafter		86,125			149,596
Total lease payments		1,244,900		¥	925,321
Less imputed interest		(136,289	)
Total lease receivables	¥	1,108,611

(2) Lessee

The Company and its subsidiaries determine if an arrangement is a lease at inception of each contract. The Company and its subsidiaries have operating and finance leases for various assets including lands, office buildings, employees’ accommodations, and vehicles. Some of the lease arrangements include options to extend or terminate lease term. The Company and its subsidiaries determine the lease term while taking such options into account when determined the lease term when it is reasonably certain that it will exercise these options. The Company and its subsidiaries’ lease arrangements do not contain material residual value guarantees or material restrictive covenants. As a rate implicit in the most of the leases cannot be readily determinable, the Company and its subsidiaries use incremental borrowing rate based on the information available at commencement to determine the present values of lease payments.

The component of lease expense for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Finance lease cost
Depreciation expenses of right-of-use assets	¥	667
Interest expenses of lease liabilities		267
		934
Operating lease cost		31,791
Short-term lease cost		2,019
Variable lease cost		920
Sublease income		(2,828	)
Total	¥	32,836
	Millions of yen
	Three months ended December 31, 2019
Finance lease cost
Depreciation expenses of right-of-use assets	¥	212
Interest expenses of lease liabilities		36
		248
Operating lease cost		10,473
Short-term lease cost		717
Variable lease cost		375
Sublease income		(708	)
Total	¥	11,105

Supplemental cash flow information related to leases for the nine months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	267	¥	33,685
Cash flows from financing activities		409		0
Right-of-use assets obtained in exchange for lease liabilities:	¥	531	¥	29,800

Supplemental balance sheet information related to lessee leases at December 31, 2019 are as follows:

	Millions of yen, except lease term and discount rate
	December 31, 2019
	Finance leases			Operating leases
Investment in Operating Leases	¥	0		¥	128,951
Property under Facility Operations		2,299			69,719
Office Facilities		9			75,816
Total right-of-use assets		2,308			274,486
Other Liabilities		2,914			271,093
Total lease liabilities	¥	2,914		¥	271,093
Weighted average remaining lease term		9years			14years
Weighted average discount rate		3.02	%		1.15	%

At December 31, 2019, the amounts of lease liabilities related to lessee leases due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending December 31,	Finance leases			Operating leases
2020	¥	487		¥	45,643
2021		484			32,221
2022		482			28,155
2023		477			25,500
2024		473			21,481
Thereafter		963			138,354
Total lease payments		3,366			291,354
Less imputed interest		(452	)		(20,261	)
Total lease liabilities	¥	2,914		¥	271,093

XML

Significant Accounting and Reporting Policies

9 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

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 include VIEs 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 finance 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 finance 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 indefinite-lived intangible assets.

(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. Monetary assets and liabilities in foreign currencies are recorded in the entity’s functional currency based on the prevailing exchange rates at the end of each fiscal year.

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), net of applicable income taxes, arise from the translation of foreign currency financial statements into Japanese yen.

(d) Revenue recognition

The Company and its subsidiaries recognize revenues from only contracts with customers, such as sales of goods and real estate, and services income, based on the following five steps;

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

In accordance with these steps, revenues are recognized to depict the transfer of promised goods or services to customers in the amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenues are recognized net of discount, incentives and estimated sales returns. In case that the Company and its subsidiaries receive payment from customers before satisfying performance obligations, the amounts are recognized as contract liabilities. In transactions that involve third parties, if the Company and its subsidiaries control the goods or services before they are transferred to the customers, revenue is recognized on gross amount as the principal.

Excluding the aforementioned policy, the policies as specifically described hereinafter are applied for each of revenue items.

Finance Revenues—Finance revenues mainly include revenues from finance leases, installment loans, and financial guarantees.

(1) Revenues from finance leases

Lessor leases consist of leases for various equipment types, including office equipment, industrial machinery, transportation equipment and real estates. Net investment in leases includes sales-type leases and direct financing leases which are full-payout leases. Leases not qualifying as sales-type leases or direct financing leases are accounted for as operating leases. Interest income on net investment in leases is recognized over the life of each respective lease using the interest method. In providing leasing services, the Company and its subsidiaries execute supplemental businesses, such as paying insurance and handling taxes on leased assets on behalf of lessees. The estimated unguaranteed residual value represents estimated proceeds from the disposition of equipment at the time the lease is terminated. Estimates of residual values are determined 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. Initial direct costs of sales-type leases and direct financing leases 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 of sales-type leases and direct financing leases is reflected as a component of net investment in 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) Revenues from financial guarantees

At the inception of a guarantee, fair value for the guarantee is recognized as a liability in the consolidated balance sheets. The Company and its subsidiaries recognize revenue mainly over the term of guarantee by a systematic and rational amortization method as the Company and the subsidiaries are released from the risk of the obligation.

(4) Non-accrual policy

In common with all classes, past-due financing receivables are receivables for which principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms. The Company and its subsidiaries suspend accruing revenues on past-due installment loans and finance leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Accrued but uncollected interest is reclassified to net investment in leases or installment loans in the accompanying consolidated balance sheets and becomes subject to the allowance for doubtful receivables and probable loan losses process. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return non-accrual loans and lease receivables to accrual status when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtors’ creditworthiness, such as the debtors’ business characteristics and financial conditions as well as relevant economic conditions and trends.

Gains on investment securities and dividends—Gains on investment securities are recorded on a trade date basis. Dividends are recorded when right to receive dividends is established.

Operating leases—Revenues from operating leases are recognized on a straight-line basis over the contract terms. Investment in operating leases is recorded at cost less accumulated depreciation, which was ¥634,478 million and ¥659,318 million as of March 31, 2019 and December 31, 2019, respectively. Operating lease assets are depreciated over their estimated useful lives mainly on a straight-line basis. Depreciation expenses are included in costs of operating leases. Gains or losses arising from dispositions of operating lease assets are included in operating lease revenues.

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. Initial direct costs of operating leases are being deferred and amortized as a straight-line basis over the life of the related lease. The unamortized balance of initial direct costs is reflected as investment in operating leases.

(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 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 investment 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 are 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 the 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 agent commissions, except for recurring policy maintenance costs and certain variable costs and expenses for underwriting policies.

(f) Allowance for doubtful receivables on finance leases and probable loan losses

The allowance for doubtful receivables on finance 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 finance 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 experience, current delinquencies and delinquency trends, future cash flows expected to be received from the finance leases and loans and value of underlying collateral and guarantees.

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-impaired loans, including loans that are not individually evaluated for impairment, and finance leases, the Company and its subsidiaries evaluate prior charge-off experience segmented by the debtors’ industries and the purpose of the loans, and then develop the allowance for doubtful receivables on finance leases and probable loan losses considering the prior charge-off experience and current economic conditions.

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, mega solar 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

Equity securities are generally reported at fair value with unrealized gains and losses included in income. Equity securities without readily determinable fair values are recorded at its cost minus impairment, if any, plus or minus changes resulting from observable price changes under the election of the measurement alternative, except for investments which are valued at net asset value per share.

Equity securities elected to apply the measurement alternative are written down to its fair value with losses included in income if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value.

In addition, investments included in equity securities that are accounted for under the equity method are recorded at fair value with unrealized gains and losses included in income if certain subsidiaries elect the fair value option.

Trading debt securities are reported at fair value with unrealized gains and losses included in income.

Available-for-sale debt securities are reported at fair value, and unrealized gains or losses are recorded in accumulated other comprehensive income (loss), net of applicable income taxes, except for investments which are recorded at fair value with unrealized gains and losses included in income by electing the fair value option.

Held-to-maturity debt securities are recorded at amortized cost.

For debt securities other than trading, 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 security 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 security into the credit loss component and the non-credit loss component. The credit loss component is recognized in earnings, and the non-credit loss component is recognized in other comprehensive income (loss), net of applicable 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 income before income taxes. The estimated effective tax rate is determined by dividing the estimated provision for income taxes for the full fiscal year by the estimated income before income taxes for the full fiscal year.

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 for tax loss 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. The Company and its subsidiaries release to earnings stranded income tax effects in accumulated other comprehensive income (loss) resulting from changes in tax laws or rates or changes in judgment about realization of a valuation allowance on a specific identification basis when the individual items are completely sold or terminated. 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 nine months ended December 31, 2018 and 2019 were 19.0% and 29.3%, respectively. These rates are (11.0)% and 29.3% for the three months ended December 31, 2018 and 2019, respectively. For the nine and three months ended December 31, 2018 and 2019, 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 31.5%. The effective income tax rate is different from the statutory tax rate primarily because of certain nondeductible expenses for tax purposes, non-taxable income for tax purposes, changes in valuation allowance, the effect of lower tax rates on certain subsidiaries and the effect of investor taxes on earnings of subsidiaries.

On October 26, 2018, the Company decided to acquire common shares of its domestic subsidiary, DAIKYO through a tender offer (hereinafter, “the Tender Offer”), and with the establishment of the Tender Offer, the Company decided to change the method of collecting undistributed earnings of DAIKYO from collection through a taxable transaction to collection through a tax free transaction. On December 10, 2018, the Tender Offer was concluded. Along with the establishment of the event, the Company completely reversed the deferred tax liabilities previously recorded for undistributed earnings of DAIKYO. As a result of this reversal of deferred tax liabilities, income taxes decreased by ¥27,376 million for the nine and three months ended December 31, 2018.

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 SPEs that issue asset-backed beneficial interests and securities to the investors.

SPEs used in securitization transactions are consolidated if the Company and its subsidiaries are the primary beneficiary of the SPEs, and the transfers of the financial assets to those consolidated SPEs are not accounted for as sales. Assets held by 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.

The Company and certain subsidiaries originate and sell loans into the secondary market, while retaining the obligation to service those loans. In addition, a certain subsidiary 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 changes in the fair value of hedged assets or liabilities through the consolidated statements of income, or recorded in other comprehensive income (loss), net of applicable income taxes.

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), net of applicable income taxes, 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), net of applicable income taxes, depending on whether the hedging activity 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 are recorded in the foreign currency translation adjustments account within other comprehensive income (loss), net of applicable income taxes.

Starting from this fiscal year, the Company and its subsidiaries select either the amortization approach or the fair value approach, depending on the type of hedging activity, for the initial value of the component excluded from the assessment of effectiveness, and recognize it through the consolidated statements of income. When the amortization approach is adopted, the change in fair value is recognized in earnings using a systematic and rational method over the life of the hedging instrument and then any difference between the change in fair value and the amount recognized in earnings is recognized in other comprehensive income (loss), net of applicable income taxes. When the fair value approach is adopted, the change in the fair value is immediately recognized through the consolidated statements of income. In the past fiscal year, the change in fair value of the component excluded from the assessment of effectiveness and the ineffective portion of qualified hedges were immediately recognized through the consolidated statements of income.

For all hedging relationships that are designated and qualified for hedge accounting, at inception the Company and its subsidiaries formally document the details of the hedging relationship and the hedging activity. The Company and its subsidiaries 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 pension plans covering substantially all of their employees. The costs of pension plans are accrued based on amounts determined using actuarial methods, with assumptions of discount rate, rate of increase in compensation level, expected long-term rate of return on plan assets and others.

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

In principle, the Company and its subsidiaries measure stock-based compensation expense as consideration for services provided by employees based on the fair value on 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 capital to common stock as required by the Japanese Commercial Code (the “Code”) before amendment. However, no such reclassification was made for stock splits when common stock already included a portion of the proceeds from shares issued at a price in excess of par value. This method of accounting was in conformity with accounting principles generally accepted in Japan.

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 capital amounts equal to the fair market value of the shares issued. Common stock is increased by the par value of the shares and additional paid-in capital is increased by the excess of the market value over par value of the shares issued.

Had such stock splits made prior to October 1, 2001 been accounted for in this manner, additional paid-in capital as of December 31, 2019 would have increased by approximately ¥24,674 million, with a corresponding decrease in retained earnings. Total ORIX Corporation shareholders’ equity would remain unchanged. Stock splits on May 19, 2000 were excluded from the above amounts because the stock splits were not considered to be stock dividends under U.S. GAAP.

(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 loans, deposits held on behalf of third parties in the aircraft-related business and others.

(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 fair value determined on an individual basis, except loans held for sale for which the fair value option was elected. A certain subsidiary elected the fair value option on certain loans held for sale. 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, 2019 and December 31, 2019 were ¥54,311 million and ¥80,234 million, respectively. There were ¥38,671 million and ¥43,238 million of loans held for sale as of March 31, 2019 and December 31, 2019, 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 hotels and training facilities) and environmental assets (including mega solar and thermal power stations), 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 ¥102,185 million and ¥99,748 million as of March 31, 2019 and December 31, 2019, 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 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 merchandise 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, 2019 and December 31, 2019, residential condominiums under development were ¥55,860 million and ¥74,843 million, respectively, and completed residential condominiums and merchandise for sale were ¥59,835 million and ¥57,115 million, respectively.

The Company and its subsidiaries recorded ¥269 million and ¥277 million of write-downs principally on completed residential condominiums and merchandise for sale for the nine months ended December 31, 2018 and 2019, respectively, primarily resulting from a decrease in expected sales price. The amounts of such write-downs for the three months ended December 31, 2018 and 2019 were ¥159 million and ¥123 million, respectively. These write-downs were recorded in costs of goods and real estate sold and included in Real Estate segment, Investment and Operation segment and Corporate Financial Services 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 ¥54,499 million and ¥63,823 million as of March 31, 2019 and December 31, 2019, respectively.

(v) Right-of-use assets

The Company and its subsidiaries record the ROU assets recognized from the lessee’s lease transaction as investment in operating leases, property under facility operations and office facilities. Lease liabilities are included in other liabilities.

ROU assets are stated at cost less accumulated amortization. ROU assets of finance leases are amortized mainly on a straight-line basis over the lease term. ROU assets of operating leases are amortized over the lease term by the fixed term operating cost minus the interest cost. Amortization of ROU assets of finance leases and operating leases expenses are included in costs of operating leases, services expense and selling, general and administrative expenses.

(w) Other assets

Other assets consist primarily of goodwill and other intangible assets in acquisitions, 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 construction of real estate under operating leases and property under facility operations, prepaid benefit cost, servicing assets, derivative assets, contract assets related to real estate contract works and deferred tax assets.

(x) 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 indefinite-lived intangible assets 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 goodwill impairment test. The Company and its subsidiaries perform the qualitative assessment for some goodwill but bypass the qualitative assessment and proceed directly to the first step of the two-step impairment test for other goodwill. For the goodwill for which the qualitative assessment is performed, if, after assessing the totality of events or circumstances, the Company and/or subsidiaries determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company and/or subsidiaries do not perform the two-step impairment test. However, if the Company and/or subsidiaries conclude otherwise or determine to bypass the qualitative assessment, the Company and/or subsidiaries proceed to perform the first step of the two-step impairment test. The first step of goodwill impairment test, used to identify potential impairment, calculates the fair value of the reporting unit and compares the fair value with the carrying amount of the reporting unit. If the fair value of the reporting unit falls below its carrying amount, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares implied fair value of goodwill with its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The Company and its subsidiaries test the goodwill either at the operating segment level or one level below the operating segments.

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 intangible 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 intangible 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 ¥430,679 million and ¥426,111 million as of March 31, 2019 and December 31, 2019, respectively.

The amount of other intangible assets was ¥427,098 million and ¥398,701 million as of March 31, 2019 and December 31, 2019, respectively.

(y) 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.

(z) Other Liabilities

Other liabilities include primarily lease liabilities recognized from the lessee’s lease transaction, accrued expenses related to interest and bonus, accrued benefit liability, advances received from lessees in relation to lease contracts, deposits received from real estate transaction, contract liabilities mainly related to automobile maintenance services and software services, and derivative liabilities.

(aa) Capitalization of interest costs

The Company and its subsidiaries capitalized interest costs primarily related to assets under construction such as specific environmental assets, long-term real estate development and ship projects.

(ab) Advertising

The costs of advertising are expensed as incurred.

(ac) 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.

(ad) 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.

(ae) 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.

(af) 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 the gain or loss in the consolidated statements of income in the year in which the change in ownership interest occurs.

(ag) New accounting pronouncements

In February 2016, Accounting Standards Update 2016-02 (ASC 842 (“Leases”)) was issued, and related amendments were issued thereafter. These updates require a lessee to recognize most leases on the balance sheet. Lessor accounting remains substantially similar to current U.S. GAAP but with some changes. These updates require an entity to disclose more information about leases than under the current disclosure requirements. The Company and its subsidiaries adopted these updates, including Accounting Standards Update 2019-01, on April 1, 2019 and used the beginning of the fiscal year of adoption as the date of initial adoption. Consequently, financial information of comparative periods has not been updated and the disclosures required under the New Lease Standard are not provided for periods before April 1, 2019.

The New Lease Standard provides a number of optional practical expedients in transition. The Company and its subsidiaries have elected the “package of practical expedients”, which permits the Company and its subsidiaries to not reassess under the New Lease Standard the prior conclusions about lease identification, lease classification and initial direct costs. The Company and its subsidiaries have elected other New Lease Standard’s available transitional practical expedients. The New Lease Standard also provides practical expedients for an entity’s ongoing accounting. The Company and its subsidiaries have elected the short-term lease recognition exemption mainly for vehicle and office equipment leases. Consequently, for those leases that meet the requirements, the Company and its subsidiaries have not recognized ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company and its subsidiaries also have elected the practical expedient to not separate lease and non-lease components for part of leases as lessors. The Company and its subsidiaries have expanded their disclosures regarding lessee and lessor.

The impact of the adoption of these updates has resulted in a gross up of ROU assets and corresponding lease liabilities principally for operating leases, such as land leases and office and equipment leases where it is the lessee. The effect of the adoption of these updates on the Company and its subsidiaries’ financial position at the adoption date was increases of ROU assets of ¥ 134,345 million in investment in operating leases, ¥ 77,989 million in property under facility operations, ¥ 75,805 million in office facilities and lease liabilities of ¥ 284,867 million in other liabilities in the consolidated balance sheet as of April 1, 2019. ROU assets in investment in operating leases, property under facility operations and office facilities were ¥ 128,951 million, ¥ 69,719 million and ¥ 75,816 million, respectively, and lease liabilities in other liabilities were ¥ 271,093 million as of December 31, 2019. The adoption had no material effect on the Company and its subsidiaries’ results of operations for the nine and three months ended December 31, 2019. In the consolidated statements of cash flows, cash receipts from lessor’s finance leases have been reclassified from principal payments received under direct financing leases of cash flows from investing activities to principal payments received under net investment in leases of cash flows from operating activities.

In June 2016, Accounting Standards Update 2016-13 (“Measurement of Credit Losses on Financial Instruments”—ASC 326 (“Financial Instruments—Credit Losses”)) was issued, and related amendments were issued thereafter. These updates significantly change how companies measure and recognize credit impairment for many financial assets. The new current expected credit loss model requires companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets that are within the scope of these updates. These updates also make targeted amendments to the current impairment model for available-for-sale debt securities. These updates are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in these updates should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Early application is permitted for fiscal year beginning after December 15, 2018, including interim periods within the fiscal year. The Company and its subsidiaries will adopt these updates on April 1, 2020. The Company and its subsidiaries have substantially completed the development of the current expected credit loss models and continue to validate and refine the models, and establish the policies, systems and internal controls. Based on the Company and its subsidiaries’ assessment and best estimates to date, the allowance for credit losses for financial assets such as installment loans, net investment in leases and off-balance-sheet credit exposures such as financial guarantees and loan commitments are expected to increase due to the changes of the measurement of the allowance for credit losses. The Company and its subsidiaries continue to evaluate the effect that the adoption of these updates will have on the Company and its subsidiaries’ results of operations or financial position. The Company and its subsidiaries will expand their disclosures that are required by these updates, primarily regarding credit quality information and estimates of the allowance for credit losses.

In January 2017, Accounting Standards Update 2017-04 (“Simplifying the Test for Goodwill Impairment”—ASC 350 (“Intangible—Goodwill and Other”)) was issued. This update eliminates Step 2 from the current goodwill impairment test. Instead, goodwill impairments would be measured by the amount by which the carrying amount exceeds the reporting unit’s fair value. This update also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it is more likely than not that the goodwill is impaired, to perform Step 2 of the goodwill impairment test. This update is effective for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates on or after January 1, 2017. The Company and its subsidiaries will adopt this update on April 1, 2020. Generally, the effect of adopting this update on the Company and its subsidiaries’ results of operation or financial position will depend on the outcomes of future goodwill impairment tests.

In August 2017, Accounting Standards Update 2017-12 (“Targeted Improvements to Accounting for Hedging Activities”—ASC 815 (“Derivatives and Hedging”)) was issued, and related amendments were issued thereafter. These updates change the recognition and presentation requirements of hedge accounting including eliminating the requirements to separately measure and report hedge ineffectiveness and presenting the entire change in the fair value of the hedging instrument that affects earnings in the same income statement line as the hedged item. The Company and its subsidiaries adopted these updates on April 1, 2019. The adoption of these updates had no material effect on the Company and its subsidiaries’ results of operations or financial position.

In August 2018, Accounting Standards Update 2018-12 (“Targeted Improvements to the Accounting for Long-Duration Contracts”—ASC 944 (“Financial Services—Insurance”)) was issued, and related amendments which defer the effective date by one year were issued thereafter. These updates change the recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. These updates require an insurance entity to review and, if there is a change, update cash flow assumptions at least annually and to update discount rate used for liability for future policy benefits at each reporting date for nonparticipating traditional long-duration and limited-payment contracts. The effect of updating the discount rate is recognized in other comprehensive income (loss). These updates also require market risk benefits to be measured at fair value, and simplify amortization of deferred acquisition costs. Furthermore, these updates require additional disclosures for long-duration contracts. These updates are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early application is permitted. For the liability for future policy benefits and deferred acquisition costs, these updates are applied to contracts in force as of beginning of the earliest period presented (hereinafter, “the transition date” of these updates) on a modified retrospective basis, and an insurance entity may elect to apply retrospectively. For the market risk benefits, these updates are applied retrospectively at the transition date, and the difference between fair value and carrying value requires an adjustment to retained earnings at the transition date. The cumulative effect of changes in the instrument-specific credit risk between contract inception date and the transition date should be recognized in accumulated other comprehensive income at the transition date. The Company and its subsidiaries will adopt these updates on April 1, 2022. The Company and its subsidiaries are currently evaluating the effect that the adoption of these updates will have on the Company and its subsidiaries’ results of operations or financial position, as well as changes in disclosures required by these updates.

In August 2018, Accounting Standards Update 2018-13 (“Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”—ASC 820 (“Fair Value Measurement”)) was issued. This update modifies and adds the disclosure requirements for Fair Value Measurements. This update also removes disclosure requirements of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted. An entity is also permitted to early adopt any removed or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. Removals and modifications of disclosure requirements should be mainly applied retrospectively to all periods presented upon their effective date, while the additional disclosure requirements should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The Company and its subsidiaries early adopted the removals of disclosure requirements from the three months ended September 30, 2018. The Company and its subsidiaries will adopt the modifications and additions of disclosure requirements from fiscal 2021. Since this update relates to disclosure requirements, the adoption will not have an effect on the Company and its subsidiaries’ results of operations or financial position.

In August 2018, Accounting Standards Update 2018-14 (“Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans”—ASC 715-20 (“Compensation—Retirement Benefits—Defined Benefit Plans—General”)) was issued. This update adds and clarifies the disclosure requirements for Pension Plans, and removes certain disclosure requirements such as the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. This update is effective for fiscal years ending after December 15, 2020. The amendments in this update should be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company and its subsidiaries will adopt this update from fiscal 2021. Since this update relates to disclosure requirements, the adoption will not have an effect on the Company and its subsidiaries’ results of operations or financial position.

In December 2019, Accounting Standards Update 2019-12 (“Simplifying the Accounting for Income Taxes”—ASC 740 (“Income Taxes”)) was issued. This update removes the exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, the exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and other exceptions. This update also simplifies the certain accounting for the income taxes. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 and early adoption is permitted. The income tax simplifications related to changes in ownership of foreign equity method investments and foreign subsidiaries shall be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The other amendments in this update shall be applied on a retrospective basis to all periods presented, on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, or on a prospective basis. The Company and its subsidiaries will adopt this update on April 1, 2021. The Company and its subsidiaries are currently evaluating the effect that the adoption of this update will have on the Company and its subsidiaries’ results of operations or financial position, as well as changes in disclosures required by this update.

XML

Cover Page	9 Months Ended
	Dec. 31, 2019
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Entity Registrant Name	ORIX CORP
Entity Central Index Key	0001070304
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q3

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net Income	¥ 86,145	¥ 82,409	¥ 247,809	¥ 239,028
Other comprehensive income (loss), net of tax:
Net change of unrealized gains (losses) on investment in securities	(3,627)	(229)	1,277	(1,835)
Net change of debt valuation adjustments	(68)	384	136	303
Net change of defined benefit pension plans	(294)	206	492	5
Net change of foreign currency translation adjustments	21,460	(19,918)	(16,585)	(5,129)
Net change of unrealized gains (losses) on derivative instruments	2,168	(754)	(3,560)	(64)
Total other comprehensive income (loss)	19,639	(20,311)	(18,240)	(6,720)
Comprehensive Income	105,784	62,098	229,569	232,308
Comprehensive Income Attributable to the Noncontrolling Interests	1,211	496	1,584	2,299
Comprehensive Income Attributable to the Redeemable Noncontrolling Interests	182	173	229	760
Comprehensive Income Attributable to ORIX Corporation Shareholders	¥ 104,391	¥ 61,429	¥ 227,756	¥ 229,249

XML

Subsequent Events

9 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

25. Subsequent Events

There are no material subsequent events.

XML

Leases (Table)

9 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease Income

Lease income for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Lease income—net investment in leases
Interest income	¥	41,028
Other		1,601
Lease income—operating leases *		303,148
Total lease income	¥	345,777

* Gains from the disposition of real estate under operating leases included in operating lease revenues are ¥23,044 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues are ¥14,234 million for the nine months ended December 31, 2019.

	Millions of yen
	Three months ended December 31, 2019
Lease income—net investment in leases
Interest income	¥	14,020
Other		511
Lease income—operating leases *		100,743
Total lease income	¥	115,274

* Gains from the disposition of real estate under operating leases included in operating lease revenues are ¥4,636 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues are ¥6,047 million for the three months ended December 31, 2019.

Net investment in lease direct financing and sales type

Net investment in leases at December 31, 2019 consists of the following:

	Millions of yen
	December 31, 2019
Lease receivables	¥	1,108,611
Unguaranteed residual value		29,325
Initial direct costs		4,403
Total	¥	1,142,339

Investment in Operating Leases

Investment in operating leases at December 31, 2019 consists of the following:

	Millions of yen
	December 31, 2019
Transportation equipment	¥	1,386,422
Measuring and information-related equipment		278,294
Real estate		305,842
Other		31,593
		2,002,151
Accumulated depreciation		(659,318	)
Net		1,342,833
Right-of-use assets (operating leases)		128,951
Accrued rental receivables		33,469
Total	¥	1,505,253

Depreciation and Various Expenses (Insurance, Property Tax and Other) of Operating Lease

Costs of operating leases include depreciation and various expenses (insurance, property tax and other). Depreciation and various expenses for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Depreciation expenses	¥	155,668
Various expenses		41,641
Total	¥	197,309

	Millions of yen
	Three months ended December 31, 2019
Depreciation expenses	¥	52,714
Various expenses		13,674
Total	¥	66,388

Lease Receivables of the Operating Lease Contracts

Remaining lease receivables of the operating lease contracts range up to 61 years at December 31, 2019. At December 31, 2019, the amounts due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending December 31,	Net investment in leases			Operating leases
2020	¥	455,576		¥	289,678
2021		307,960			200,061
2022		205,011			138,467
2023		121,870			91,911
2024		68,358			55,608
Thereafter		86,125			149,596
Total lease payments		1,244,900		¥	925,321
Less imputed interest		(136,289	)
Total lease receivables	¥	1,108,611

Component of Lease Expense

The component of lease expense for the nine and three months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
Finance lease cost
Depreciation expenses of right-of-use assets	¥	667
Interest expenses of lease liabilities		267
		934
Operating lease cost		31,791
Short-term lease cost		2,019
Variable lease cost		920
Sublease income		(2,828	)
Total	¥	32,836

	Millions of yen
	Three months ended December 31, 2019
Finance lease cost
Depreciation expenses of right-of-use assets	¥	212
Interest expenses of lease liabilities		36
		248
Operating lease cost		10,473
Short-term lease cost		717
Variable lease cost		375
Sublease income		(708	)
Total	¥	11,105

Cash Flow Information Related To Lease

Supplemental cash flow information related to leases for the nine months ended December 31, 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2019
	Finance leases		Operating leases
Cash paid for amounts included in the measurements of lease liabilities:
Cash flows from operating activities	¥	267	¥	33,685
Cash flows from financing activities		409		0
Right-of-use assets obtained in exchange for lease liabilities:	¥	531	¥	29,800

Balance Sheet Information Related to Lessee Leases

Supplemental balance sheet information related to lessee leases at December 31, 2019 are as follows:

	Millions of yen, except lease term and discount rate
	December 31, 2019
	Finance leases			Operating leases
Investment in Operating Leases	¥	0		¥	128,951
Property under Facility Operations		2,299			69,719
Office Facilities		9			75,816
Total right-of-use assets		2,308			274,486
Other Liabilities		2,914			271,093
Total lease liabilities	¥	2,914		¥	271,093
Weighted average remaining lease term		9years			14years
Weighted average discount rate		3.02	%		1.15	%

Operating And Finance Lease Liability Maturity

At December 31, 2019, the amounts of lease liabilities related to lessee leases due in each of the next five years and thereafter are as follows:

	Millions of yen
Years ending December 31,	Finance leases			Operating leases
2020	¥	487		¥	45,643
2021		484			32,221
2022		482			28,155
2023		477			25,500
2024		473			21,481
Thereafter		963			138,354
Total lease payments		3,366			291,354
Less imputed interest		(452	)		(20,261	)
Total lease liabilities	¥	2,914		¥	271,093

XML

Overview of Accounting Principles Utilized

9 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Overview of Accounting Principles Utilized

Notes to Consolidated Financial Statements

1. Overview of Accounting Principles Utilized

In preparing the accompanying consolidated financial statements, ORIX Corporation (the “Company”) and its subsidiaries have complied with generally accepted accounting principles in the United States (“U.S. GAAP”), except for the accounting for stock splits.

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, 2019 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) including the consolidated financial statements with the Securities and Exchange Commission.

Significant differences between U.S. GAAP and generally accepted accounting principles in Japan (“Japanese GAAP”) are as follows:

(a) Revenue recognition for revenue from contracts with customers

Under U.S. GAAP, revenues from contracts with customers such as sales of goods and real estate, and services income are recognized to depict the transfer of promised goods or services to customers in the amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services.

Under Japanese GAAP, revenues are generally recognized when cash or monetary assets are received as a consideration by sales of goods or rendering of services in accordance with realization principle.

(b) Initial direct costs

Under U.S. GAAP, initial direct costs of sales-type leases and direct financing leases are mainly being deferred and amortized as a yield adjustment over the life of the related lease by using interest method. Initial direct costs of operating leases are being deferred and amortized as a straight-line basis over the life of the related lease.

Under Japanese GAAP, those initial direct costs are recognized as expenses when they are incurred.

(c) 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.

(d) 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, 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.

(e) Accounting for goodwill and other intangible assets in business combinations

Under U.S. GAAP, goodwill and indefinite-lived intangible assets 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.

(f) Accounting for pension plans

Under U.S. GAAP, the net actuarial gain (loss) is amortized using the corridor approach.

Under Japanese GAAP, the net actuarial gain (loss) is fully amortized over a certain term within the average remaining service period of employees.

(g) Partial 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.

(h) Consolidated statements of cash flows

Classification in the statements of cash flows under U.S. GAAP differs from that under Japanese GAAP. As significant differences, purchase of lease equipment, 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.

Under U.S. GAAP, in addition, restricted cash is required to be added to the balance of cash and cash equivalents.

(i) Transfer of financial assets

Under U.S. GAAP, an entity is required to perform analysis to determine whether or not to consolidate trusts or special-purpose companies, collectively 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.

In addition, if the transferor transfers a portion of financial assets, the transaction is not accounted for as a sale but accounted for as a secured borrowing unless each interest held by the transferor and transferee meets the definition of a participating interest and the transfer of a portion of financial assets meets criteria for derecognition of transferred financial assets.

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.

In addition, if the transferor transfers a portion of financial assets, the enterprise accounts for the transaction as a sale and recognizes a gain or loss on the sale into earnings when the transfer of a portion of financial assets meets criteria for derecognition of transferred financial assets.

(j) Investment in securities

Under U.S. GAAP, unrealized gains and losses from all of equity securities are generally recognized in income.

Under Japanese GAAP, such unrealized gains and losses from equity securities other than trading are to be recognized in other comprehensive income (loss), net of applicable income taxes.

(k) 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. The portion of the total change in the fair value of the financial liability that results from a change in the instrument-specific credit risk is to be recognized in other comprehensive income (loss), net of applicable income taxes.

Under Japanese GAAP, there is no accounting standard for fair value option.

(l) Lessee’s lease

Under U.S. GAAP, right-of-use (hereinafter, “ROU”) assets and lease liabilities from the lessee’s lease transaction are generally recognized on the balance sheet.

Under Japanese GAAP, operating leases from the lessee’s lease transaction are off-balance sheet.

XML

Overview of Accounting Principles Utilized - Additional Information (Detail)	9 Months Ended
	Dec. 31, 2019
Goodwill | Maximum
Significant Accounting Policies [Line Items]
Goodwill amortization period	20 years

XML

Offsetting Assets and Liabilities (Tables)

9 Months Ended

Dec. 31, 2019

Text Block [Abstract]

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 derivative assets and liabilities as of March 31, 2019 and December 31, 2019 are as follows.

March 31, 2019

	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 consolidated balance sheets*						Net amount
								Financial instruments			Collateral received/pledged
Derivative assets	¥	15,495	¥	(1,497	)	¥	13,998	¥	(196	)	¥	0		¥	13,802
Total assets	¥	15,495	¥	(1,497	)	¥	13,998	¥	(196	)	¥	0		¥	13,802
Derivative liabilities	¥	25,958	¥	(1,497	)	¥	24,461	¥	(8,353	)	¥	(79	)	¥	16,029
Total liabilities	¥	25,958	¥	(1,497	)	¥	24,461	¥	(8,353	)	¥	(79	)	¥	16,029
December 31, 2019
	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 consolidated balance sheets*						Net amount
								Financial instruments			Collateral received/pledged
Derivative assets	¥	15,683	¥	(514	)	¥	15,169	¥	(16	)	¥	0		¥	15,153
Total assets	¥	15,683	¥	(514	)	¥	15,169	¥	(16	)	¥	0		¥	15,153
Derivative liabilities	¥	51,188	¥	(514	)	¥	50,674	¥	(14,143	)	¥	(1,313	)	¥	35,218
Total liabilities	¥	51,188	¥	(514	)	¥	50,674	¥	(14,143	)	¥	(1,313	)	¥	35,218

* The balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets.

XML

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	Dec. 31, 2019	Mar. 31, 2019
Derivatives, Fair Value [Line Items]
Derivative assets Fair value	¥ 15,683	¥ 15,495
Derivative liabilities Fair value	51,188	25,958
Options held
Derivatives, Fair Value [Line Items]
Derivative assets Fair value	16	206
Derivative liabilities Fair value	114
Options held | Variable Annuity and Variable Life Insurance Contracts
Derivatives, Fair Value [Line Items]
Notional amount	25,225	34,701
Futures
Derivatives, Fair Value [Line Items]
Derivative assets Fair value	0	248
Derivative liabilities Fair value	43	258
Futures | Variable Annuity and Variable Life Insurance Contracts
Derivatives, Fair Value [Line Items]
Notional amount	30,042	37,359
Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivative assets Fair value	6	30
Derivative liabilities Fair value	34	173
Foreign exchange contracts | Variable Annuity and Variable Life Insurance Contracts
Derivatives, Fair Value [Line Items]
Notional amount	¥ 9,716	¥ 13,171

XML

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		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Life insurance premiums and related investment income
Net realized and unrealized gains or losses from investment assets	¥ 18,661	¥ (43,844)	¥ 25,962	¥ (21,790)
Net gains or losses from derivative contracts	(2,653)	5,956	(3,477)	2,496
Life insurance costs
Changes in the fair value of the policy liabilities and policy account balances	(3,917)	(43,098)	(26,992)	(81,515)
Insurance costs recognized for insurance and annuity payouts as a result of insured events	14,304	14,851	39,418	62,522
Changes in the fair value of the reinsurance contracts	2,163	(6,681)	3,230	(2,794)
Foreign exchange contracts
Life insurance premiums and related investment income
Net gains or losses from derivative contracts	(284)	219	(5)	(316)
Futures
Life insurance premiums and related investment income
Net gains or losses from derivative contracts	(2,284)	5,051	(3,292)	2,730
Options held
Life insurance premiums and related investment income
Net gains or losses from derivative contracts	¥ (85)	¥ 686	¥ (180)	¥ 82

XML

Per Share Data - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
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	1,796,993	1,823,993	1,813,193	1,715,210
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of diluted EPS	0	0	0	0

XML

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 Thousands		3 Months Ended		9 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	¥ 62,509,000	¥ 54,439,000	¥ 59,714,000	¥ 49,780
Interest income on impaired loans		213,000	114,000	586,000	589
Interest on impaired loans collected in cash		207,000	114,000	543,000	548
Consumer - Housing loans
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]				4,121
Interest income on impaired loans					105
Interest on impaired loans collected in cash					103
Consumer-Card loans
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]				4,029
Interest income on impaired loans					46
Interest on impaired loans collected in cash					40
Consumer - Other
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]				12,376
Interest income on impaired loans					148
Interest on impaired loans collected in cash					127
Consumer borrowers
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	25,781,000	22,433,000	24,268,000	20,526
Interest income on impaired loans		106,000	78,000	341,000	299
Interest on impaired loans collected in cash		100,000	78,000	300,000	270
Consumer borrowers | Consumer - Housing loans
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	5,840,000	4,561,000	4,906,000
Interest income on impaired loans		34,000	16,000	109,000
Interest on impaired loans collected in cash		32,000	16,000	105,000
Consumer borrowers | Consumer-Card loans
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	3,908,000	4,003,000	3,924,000
Interest income on impaired loans		13,000	14,000	44,000
Interest on impaired loans collected in cash		13,000	14,000	38,000
Consumer borrowers | Consumer - Other
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	16,033,000	13,869,000	15,438,000
Interest income on impaired loans		59,000	48,000	188,000
Interest on impaired loans collected in cash		55,000	48,000	157,000
Corporate borrowers
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	33,618,000	27,695,000	31,962,000	24,493
Interest income on impaired loans		54,000	26,000	106,000	248
Interest on impaired loans collected in cash		54,000	26,000	104,000	237
Corporate borrowers | Non-recourse Loans | Japan
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	111,000	242,000	172,000	249
Interest income on impaired loans		0	0	2,000	4
Interest on impaired loans collected in cash		0	0	2,000	4
Corporate borrowers | Non-recourse Loans | The Americas
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	2,495,000	2,173,000	3,077,000	2,607
Interest income on impaired loans		0	0	0	0
Interest on impaired loans collected in cash		0	0	0	0
Corporate borrowers | Corporate Real Estate Companies Loans
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	8,312,000	2,417,000	5,260,000	2,490
Interest income on impaired loans		6,000	8,000	25,000	26
Interest on impaired loans collected in cash		6,000	8,000	25,000	26
Corporate borrowers | Other-Entertainment industry
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	499,000	1,472,000	940,000	1,536
Interest income on impaired loans		4,000	5,000	18,000	29
Interest on impaired loans collected in cash		4,000	5,000	18,000	23
Corporate borrowers | Other Corporate Loan
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	22,201,000	21,391,000	22,513,000	17,611
Interest income on impaired loans		44,000	13,000	61,000	189
Interest on impaired loans collected in cash		44,000	13,000	59,000	184
Purchased loans
Financing Receivable, Impaired [Line Items]
Average recorded investments in impaired loans	[1]	3,110,000	4,311,000	3,484,000	4,761
Interest income on impaired loans		53,000	10,000	139,000	42
Interest on impaired loans collected in cash		¥ 53,000	¥ 10,000	¥ 139,000	¥ 41

[1] Average balances are calculated on the basis of fiscal beginning and quarter-end balances.

XML

Leases - Lessor: Net Investment in Leases (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Schedule Of Net Investment In Direct Financing And Sales Type Lease [Abstract]
Lease receivables	¥ 1,108,611
Unguaranteed residual value	29,325
Initial direct costs	4,403
Total	¥ 1,142,339	¥ 0

XML

Leases - Lessee: Component of Lease Expense (Detail) - JPY (¥) ¥ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Finance Leases Cost [Abstract]
Depreciation expenses of right-of-use assets	¥ 212	¥ 667
Interest expenses of lease liabilities	36	267
Finance lease cost total	248	934
Operating Lease, Cost	10,473	31,791
Short-term Lease, Cost	717	2,019
Variable Lease, Cost	375	920
Sublease Income	(708)	(2,828)
Total	¥ 11,105	¥ 32,836

XML

Credit Quality of Financing Receivables and the Allowance for Credit Losses - Additional Information (Detail) ¥ in Millions	Dec. 31, 2019 JPY (¥) Property	Mar. 31, 2019 JPY (¥) Property
Receivables [Abstract]
Number of foreclosed residential real estate properties | Property	0	0
Residential mortgage loans in process of foreclosure | ¥	¥ 323	¥ 251

XML

Investment in Securities (Information About Impairment and Upward or Downward Adjustments Resulting From Observable Price Changes) (Detail) - Equity securities - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Schedule Of Gain Loss On Investments Held At Cost Balance Sheet and Income Statement Reported Amounts Summary [Line Items]
Carrying value	¥ 37,137		¥ 37,137		¥ 35,431
Accumulated impairments and downward adjustments	(1,495)		(1,495)		(1,688)
Accumulated upward adjustments	61		61		¥ 18
Impairments and downward adjustments	0	¥ 0	(38)	¥ (151)
Upward adjustments	¥ 5	¥ 0	¥ 43	¥ 0

XML

Segment Information (Reconciliation of Segment Totals to Consolidated Financial Statement Amounts) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018
Segment revenues:
Revenues	¥ 571,701	¥ 534,141	¥ 1,684,379	¥ 1,796,155
Segment profits:
Total profits for segments	75,020	63,090	236,722	258,184
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests			(359)	(434)
Income before Income Taxes	121,829	74,223	350,458	295,168
Segment assets:
Allowance for doubtful receivables on finance leases and probable loan losses	(56,922)	(57,343)	(56,922)	(57,343)	¥ (55,173)	¥ (58,011)	¥ (55,840)	¥ (54,672)
Trade Notes, Accounts and Other Receivable	276,405		276,405			280,590
Other corporate assets	1,434,080		1,434,080			1,462,104
Assets	12,842,958		12,842,958			12,174,917
Operating Segment
Segment revenues:
Revenues	574,653	537,262	1,691,739	1,802,142
Segment profits:
Total profits for segments	122,538	74,501	352,927	297,817
Segment assets:
Assets	10,859,154		10,859,154			9,997,698
Corporate, Non-Segment
Segment revenues:
Revenues	1,805	1,162	8,035	7,894
Segment profits:
Corporate profits (losses)	(2,439)	(1,027)	(6,875)	(5,190)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests	1,730	749	4,406	2,541
Segment assets:
Cash and cash equivalents, restricted cash	1,020,609		1,020,609			1,283,580
Allowance for doubtful receivables on finance leases and probable loan losses	(56,922)		(56,922)			(58,011)
Trade Notes, Accounts and Other Receivable	276,405		276,405			280,590
Other corporate assets	743,712		743,712			¥ 671,060
Intersegment Eliminations
Segment revenues:
Revenues	¥ (4,757)	¥ (4,283)	¥ (15,395)	¥ (13,881)

XML

Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Allowance for Credit Losses) (Detail) - JPY (¥) ¥ in Millions		3 Months Ended				9 Months Ended
		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018		Mar. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance		¥ 55,173		¥ 55,840		¥ 58,011		¥ 54,672
Provision (Reversal)		5,151		5,865		15,724		14,075
Charge-offs		(4,133)		(4,208)		(16,814)		(12,588)
Recoveries		232		253		632		904
Other		499	[1]	(407)	[1]	(631)	[2]	280	[1]
Ending balance		56,922		57,343		56,922		57,343
Allowance for credit losses, Individually Evaluated for Impairment		11,254		12,787		11,254		12,787		¥ 13,731
Allowance for credit losses, Not Individually Evaluated for Impairment		45,668		44,556		45,668		44,556		44,280
Financing receivables, Ending balance		4,677,635		4,294,287		4,677,635		4,294,287		4,378,991
Financing receivables, Individually evaluated for impairment		69,780		54,416		69,780		54,416		58,827
Financing receivables, Not individually evaluated for impairment		4,607,855		4,239,871		4,607,855		4,239,871		4,320,164
Consumer borrowers
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance		21,789		22,060		21,195		21,196
Provision (Reversal)		2,956		3,390		9,931		9,129
Charge-offs		(2,740)		(2,727)		(9,360)		(7,867)
Recoveries		146		178		419		465
Other		8	[1]	6	[1]	(26)	[2]	(16)	[1]
Ending balance		22,159		22,907		22,159		22,907
Allowance for credit losses, Individually Evaluated for Impairment		3,528		3,349		3,528		3,349		3,372
Allowance for credit losses, Not Individually Evaluated for Impairment		18,631		19,558		18,631		19,558		17,823
Financing receivables, Ending balance		2,126,058		1,856,623		2,126,058		1,856,623		1,906,022
Financing receivables, Individually evaluated for impairment		26,147		22,793		26,147		22,793		23,163
Financing receivables, Not individually evaluated for impairment		2,099,911		1,833,830		2,099,911		1,833,830		1,882,859
Corporate borrowers
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses, Individually Evaluated for Impairment		6,238				6,238				8,442
Financing receivables, Ending balance		1,394,432				1,394,432				1,300,921
Financing receivables, Individually evaluated for impairment		40,635				40,635				31,900
Purchased loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	[3]	2,760		3,905		3,186		4,292
Provision (Reversal)	[3]	(55)		(55)		(133)		(241)
Charge-offs	[3]	(107)		(54)		(470)		(358)
Recoveries	[3]	28		6		48		102
Other	[3]	16	[1]	(5)	[1]	11	[2]	2	[1]
Ending balance	[3]	2,642	[2]	3,797		2,642	[2]	3,797
Allowance for credit losses, Individually Evaluated for Impairment	[3]	1,488		2,406		1,488		2,406		1,917
Allowance for credit losses, Not Individually Evaluated for Impairment	[3]	1,154		1,391		1,154		1,391		1,269
Financing receivables, Ending balance	[3]	14,806		16,756		14,806		16,756		16,416
Financing receivables, Individually evaluated for impairment	[3]	2,998		4,176		2,998		4,176		3,764
Financing receivables, Not individually evaluated for impairment	[3]	11,808		12,580		11,808		12,580		12,652
Non-recourse Loans | Corporate borrowers
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance		1,055		627		919		688
Provision (Reversal)		192		74		353		(13)
Charge-offs		0		0		(1)		0
Recoveries		0		0		0		0
Other		18	[1]	(8)	[1]	(6)	[2]	18	[1]
Ending balance		1,265		693		1,265		693
Allowance for credit losses, Individually Evaluated for Impairment		229		47		229		47		166
Allowance for credit losses, Not Individually Evaluated for Impairment		1,036		646		1,036		646		753
Financing receivables, Ending balance		143,103		89,084		143,103		89,084		99,028
Financing receivables, Individually evaluated for impairment		2,516		3,232		2,516		3,232		4,448
Financing receivables, Not individually evaluated for impairment		140,587		85,852		140,587		85,852		94,580
Other loans | Corporate borrowers
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance		17,333		18,409		20,662		18,407
Provision (Reversal)		1,499		1,426		3,240		2,418
Charge-offs		(687)		(931)		(5,046)		(2,692)
Recoveries		45		48		142		196
Other		199	[1]	(277)	[1]	(609)	[2]	346	[1]
Ending balance		18,389		18,675		18,389		18,675
Allowance for credit losses, Individually Evaluated for Impairment		6,009		6,985		6,009		6,985		8,276
Allowance for credit losses, Not Individually Evaluated for Impairment		12,380		11,690		12,380		11,690		12,386
Financing receivables, Ending balance		1,251,329		1,166,032		1,251,329		1,166,032		1,201,893
Financing receivables, Individually evaluated for impairment		38,119		24,215		38,119		24,215		27,452
Financing receivables, Not individually evaluated for impairment		1,213,210		1,141,817		1,213,210		1,141,817		1,174,441
Direct Financing Leases
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance		12,236		10,839		12,049		10,089
Provision (Reversal)		559		1,030		2,333		2,782
Charge-offs		(599)		(496)		(1,937)		(1,671)
Recoveries		13		21		23		141
Other		258	[1]	(123)	[1]	(1)	[2]	(70)	[1]
Ending balance		12,467		11,271		12,467		11,271
Allowance for credit losses, Individually Evaluated for Impairment		0		0		0		0		0
Allowance for credit losses, Not Individually Evaluated for Impairment		12,467		11,271		12,467		11,271		12,049
Financing receivables, Ending balance		1,142,339		1,165,792		1,142,339		1,165,792		1,155,632
Financing receivables, Individually evaluated for impairment		0		0		0		0		0
Financing receivables, Not individually evaluated for impairment		¥ 1,142,339		¥ 1,165,792		¥ 1,142,339		¥ 1,165,792		¥ 1,155,632

[1] Other mainly includes foreign currency translation adjustments.

[2] Other mainly includes foreign currency translation adjustments and a decrease in allowance related to a sale of a subsidiary.

[3] 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.

XML

Credit Quality of Financing Receivables and the Allowance for Credit Losses

9 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Credit Quality of Financing Receivables and the Allowance for Credit Losses

7. 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 and past-due financing receivables

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 finance 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, 2019, for the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,196		¥	688		¥	18,407		¥	4,292		¥	10,089		¥	54,672
Provision (Reversal)		9,129			(13	)		2,418			(241	)		2,782			14,075
Charge-offs		(7,867	)		0			(2,692	)		(358	)		(1,671	)		(12,588	)
Recoveries		465			0			196			102			141			904
Other *2		(16	)		18			346			2			(70	)		280
Ending balance	¥	22,907		¥	693		¥	18,675		¥	3,797		¥	11,271		¥	57,343
Individually evaluated for impairment		3,349			47			6,985			2,406			0			12,787
Not individually evaluated for impairment		19,558			646			11,690			1,391			11,271			44,556
Financing receivables :
Ending balance	¥	1,856,623		¥	89,084		¥	1,166,032		¥	16,756		¥	1,165,792		¥	4,294,287
Individually evaluated for impairment		22,793			3,232			24,215			4,176			0			54,416
Not individually evaluated for impairment		1,833,830			85,852			1,141,817			12,580			1,165,792			4,239,871
	Three months ended December 31, 2018
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	22,060		¥	627		¥	18,409		¥	3,905		¥	10,839		¥	55,840
Provision (Reversal)		3,390			74			1,426			(55	)		1,030			5,865
Charge-offs		(2,727	)		0			(931	)		(54	)		(496	)		(4,208	)
Recoveries		178			0			48			6			21			253
Other *2		6			(8	)		(277	)		(5	)		(123	)		(407	)
Ending balance	¥	22,907		¥	693		¥	18,675		¥	3,797		¥	11,271		¥	57,343
	March 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Ending balance	¥	21,195		¥	919		¥	20,662		¥	3,186		¥	12,049		¥	58,011
Individually evaluated for impairment		3,372			166			8,276			1,917			0			13,731
Not individually evaluated for impairment		17,823			753			12,386			1,269			12,049			44,280
Financing receivables :
Ending balance	¥	1,906,022		¥	99,028		¥	1,201,893		¥	16,416		¥	1,155,632		¥	4,378,991
Individually evaluated for impairment		23,163			4,448			27,452			3,764			0			58,827
Not individually evaluated for impairment		1,882,859			94,580			1,174,441			12,652			1,155,632			4,320,164
	Nine months ended December 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,195		¥	919		¥	20,662		¥	3,186		¥	12,049		¥	58,011
Provision (Reversal)		9,931			353			3,240			(133	)		2,333			15,724
Charge-offs		(9,360	)		(1	)		(5,046	)		(470	)		(1,937	)		(16,814	)
Recoveries		419			0			142			48			23			632
Other *3		(26	)		(6	)		(609	)		11			(1	)		(631	)
Ending balance	¥	22,159		¥	1,265		¥	18,389		¥	2,642		¥	12,467		¥	56,922
Individually evaluated for impairment		3,528			229			6,009			1,488			0			11,254
Not individually evaluated for impairment		18,631			1,036			12,380			1,154			12,467			45,668
Financing receivables :
Ending balance	¥	2,126,058		¥	143,103		¥	1,251,329		¥	14,806		¥	1,142,339		¥	4,677,635
Individually evaluated for impairment		26,147			2,516			38,119			2,998			0			69,780
Not individually evaluated for impairment		2,099,911			140,587			1,213,210			11,808			1,142,339			4,607,855
	Three months ended December 31, 2019
	Millions of yen
	Loans												Finance leases			Total
	Consumer			Corporate						Purchased loans *1
				Non-recourse loans			Other
Allowance for credit losses :
Beginning balance	¥	21,789		¥	1,055		¥	17,333		¥	2,760		¥	12,236		¥	55,173
Provision (Reversal)		2,956			192			1,499			(55	)		559			5,151
Charge-offs		(2,740	)		0			(687	)		(107	)		(599	)		(4,133	)
Recoveries		146			0			45			28			13			232
Other *3		8			18			199			16			258			499
Ending balance	¥	22,159		¥	1,265		¥	18,389		¥	2,642		¥	12,467		¥	56,922

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.

*3 Other mainly includes foreign currency translation adjustments and a decrease in allowance related to a sale of a subsidiary.

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 experience;

• 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 loans, including loans that are not individually evaluated for impairment, and finance leases, the Company and its subsidiaries evaluate prior charge-off experience as segmented by debtor’s industry and the purpose of the loans and develop the allowance for credit losses based on such prior charge-off experience as well as current economic conditions.

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 experience. For loans to corporate other borrowers and finance leases, the amount of the allowance for credit losses is changed by current economic conditions and trends, the value of underlying collateral and guarantees, and the prior charge-off experience in addition to the debtors’ creditworthiness.

The decline of the value of underlying collateral and guarantees may increase the risk of inability to collect from the loans and finance leases. Particularly for non-recourse loans for which cash flow from real estate is the source of repayment, their collection depends on the real estate collateral value, which may decline as a result of decrease in liquidity of the real estate market, rise in vacancy rate of rental properties, fall in rents and other factors. These risks may change the amount of the allowance for credit losses. For purchased loans, their collection may decrease due to a decline in the real estate collateral value and debtors’ creditworthiness. Thus, these risks may change the amount of the allowance for credit losses.

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, 2019 and December 31, 2019:

	March 31, 2019
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	17,593	¥	17,521	¥	0
Consumer borrowers			1,158		1,111		0
	Housing loans		589		542		0
	Card loans		0		0		0
	Other		569		569		0
Corporate borrowers			16,329		16,304		0
Non-recourse loans	Japan		232		232		0
	The Americas		3,404		3,404		0
Other	Real estate companies		887		887		0
	Entertainment companies		0		0		0
	Other		11,806		11,781		0
Purchased loans			106		106		0
With an allowance recorded *2			41,234		40,234		13,731
Consumer borrowers			22,005		21,401		3,372
	Housing loans		3,845		3,639		835
	Card loans		3,945		3,937		633
	Other		14,215		13,825		1,904
Corporate borrowers			15,571		15,175		8,442
Non-recourse loans	Japan		0		0		0
	The Americas		812		812		166
Other	Real estate companies		1,493		1,480		419
	Entertainment companies		1,382		1,374		490
	Other		11,884		11,509		7,367
Purchased loans			3,658		3,658		1,917
Total		¥	58,827	¥	57,755	¥	13,731
Consumer borrowers			23,163		22,512		3,372
	Housing loans		4,434		4,181		835
	Card loans		3,945		3,937		633
	Other		14,784		14,394		1,904
Corporate borrowers			31,900		31,479		8,442
Non-recourse loans	Japan		232		232		0
	The Americas		4,216		4,216		166
Other	Real estate companies		2,380		2,367		419
	Entertainment companies		1,382		1,374		490
	Other		23,690		23,290		7,367
Purchased loans			3,764		3,764		1,917

	December 31, 2019
		Millions of yen
Portfolio segment	Class	Loans individually evaluated for impairment		Unpaid principal balance		Related allowance
With no related allowance recorded *1		¥	30,813	¥	30,811	¥	0
Consumer borrowers			1,088		1,086		0
	Housing loans		682		680		0
	Card loans		0		0		0
	Other		406		406		0
Corporate borrowers			29,616		29,616		0
Non-recourse loans	The Americas		1,751		1,751		0
Other	Real estate companies		14,009		14,009		0
	Entertainment companies		31		31		0
	Other		13,825		13,825		0
Purchased loans			109		109		0
With an allowance recorded *2			38,967		38,507		11,254
Consumer borrowers			25,059		24,740		3,528
	Housing loans		5,301		5,285		802
	Card loans		3,914		3,906		625
	Other		15,844		15,549		2,101
Corporate borrowers			11,019		10,878		6,238
Non-recourse loans	The Americas		765		765		229
Other	Real estate companies		1,173		1,160		373
	Entertainment companies		453		452		109
	Other		8,628		8,501		5,527
Purchased loans			2,889		2,889		1,488
Total		¥	69,780	¥	69,318	¥	11,254
Consumer borrowers			26,147		25,826		3,528
	Housing loans		5,983		5,965		802
	Card loans		3,914		3,906		625
	Other		16,250		15,955		2,101
Corporate borrowers			40,635		40,494		6,238
Non-recourse loans	The Americas		2,516		2,516		229
Other	Real estate companies		15,182		15,169		373
	Entertainment companies		484		483		109
	Other		22,453		22,326		5,527
Purchased loans			2,998		2,998		1,488

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 90 days or more, or it is probable that the Company and its subsidiaries will be unable to collect all amounts due according to the contractual terms of the loan agreements due to various debtor conditions, including insolvency filings, suspension of bank transactions, dishonored bills and deterioration of businesses. For non-recourse loans, in addition to these conditions, the Company and its subsidiaries perform an impairment review using financial covenants, acceleration clauses, loan-to-value ratios, and other relevant available information.

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 loans, in principle, the estimated collectible amount is determined based on the fair value of the collateral securing the loans as they are collateral-dependent. Further for certain non-recourse loans, the estimated collectible amount is determined based on the present value of expected future cash flows. The fair value of the real estate collateral securing the loans is determined 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. We generally obtain a new appraisal once a fiscal year. In addition, we 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 its fair value. For impaired purchased loans, the Company and its subsidiaries develop the allowance for credit losses based on the difference between the book value and the estimated collectible amount of such loans.

The following table provides information about the average recorded investments in impaired loans and interest income on impaired loans for the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
		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		¥	20,526	¥	299	¥	270
	Housing loans		4,121		105		103
	Card loans		4,029		46		40
	Other		12,376		148		127
Corporate borrowers			24,493		248		237
Non-recourse loans	Japan		249		4		4
	The Americas		2,607		0		0
Other	Real estate companies		2,490		26		26
	Entertainment companies		1,536		29		23
	Other		17,611		189		184
Purchased loans			4,761		42		41
Total		¥	49,780	¥	589	¥	548
	Nine months ended December 31, 2019
		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		¥	24,268	¥	341	¥	300
	Housing loans		4,906		109		105
	Card loans		3,924		44		38
	Other		15,438		188		157
Corporate borrowers			31,962		106		104
Non-recourse loans	Japan		172		2		2
	The Americas		3,077		0		0
Other	Real estate companies		5,260		25		25
	Entertainment companies		940		18		18
	Other		22,513		61		59
Purchased loans			3,484		139		139
Total		¥	59,714	¥	586	¥	543
	Three months ended December 31, 2018
			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		¥	22,433	¥	78	¥	78
	Housing loans		4,561		16		16
	Card loans		4,003		14		14
	Other		13,869		48		48
Corporate borrowers			27,695		26		26
Non-recourse loans	Japan		242		0		0
	The Americas		2,173		0		0
Other	Real estate companies		2,417		8		8
	Entertainment companies		1,472		5		5
	Other		21,391		13		13
Purchased loans			4,311		10		10
Total		¥	54,439	¥	114	¥	114
	Three months ended December 31, 2019
		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		¥	25,781	¥	106	¥	100
	Housing loans		5,840		34		32
	Card loans		3,908		13		13
	Other		16,033		59		55
Corporate borrowers			33,618		54		54
Non-recourse loans	Japan		111		0		0
	The Americas		2,495		0		0
Other	Real estate companies		8,312		6		6
	Entertainment companies		499		4		4
	Other		22,201		44		44
Purchased loans			3,110		53		53
Total		¥	62,509	¥	213	¥	207

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 balances.

The following table provides information about the credit quality indicators as of March 31, 2019 and December 31, 2019:

	March 31, 2019
		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		¥	1,870,447	¥	23,163	¥	12,412	¥	35,575	¥	1,906,022
	Housing loans		1,593,005		4,434		1,388		5,822		1,598,827
	Card loans		239,523		3,945		1,671		5,616		245,139
	Other		37,919		14,784		9,353		24,137		62,056
Corporate borrowers			1,269,021		31,900		0		31,900		1,300,921
Non-recourse loans	Japan		48,881		232		0		232		49,113
	The Americas		45,699		4,216		0		4,216		49,915
Other	Real estate companies		352,669		2,380		0		2,380		355,049
	Entertainment companies		64,665		1,382		0		1,382		66,047
	Other		757,107		23,690		0		23,690		780,797
Purchased loans			12,652		3,764		0		3,764		16,416
Finance leases			1,140,825		0		14,807		14,807		1,155,632
	Japan		787,081		0		6,158		6,158		793,239
	Overseas		353,744		0		8,649		8,649		362,393
Total		¥	4,292,945	¥	58,827	¥	27,219	¥	86,046	¥	4,378,991
	December 31, 2019
		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		¥	2,087,663	¥	26,147	¥	12,248	¥	38,395	¥	2,126,058
	Housing loans		1,832,996		5,983		1,665		7,648		1,840,644
	Card loans		220,801		3,914		1,506		5,420		226,221
	Other		33,866		16,250		9,077		25,327		59,193
Corporate borrowers			1,353,797		40,635		0		40,635		1,394,432
Non-recourse loans	Japan		72,597		0		0		0		72,597
	The Americas		67,990		2,516		0		2,516		70,506
Other	Real estate companies		371,534		15,182		0		15,182		386,716
	Entertainment companies		62,470		484		0		484		62,954
	Other		779,206		22,453		0		22,453		801,659
Purchased loans			11,808		2,998		0		2,998		14,806
Finance leases			1,126,844		0		15,495		15,495		1,142,339
	Japan		765,613		0		6,084		6,084		771,697
	Overseas		361,231		0		9,411		9,411		370,642
Total		¥	4,580,112	¥	69,780	¥	27,743	¥	97,523	¥	4,677,635

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 assets. The category of non-performing assets includes financing receivables for debtors who have filed for insolvency proceedings, whose bank transactions are suspended, whose bills are dishonored, whose businesses have deteriorated, whose repayment is past-due 90 days or more, financing receivables modified as troubled debt restructurings, and performing assets include all other financing receivables. Regarding purchased loans, they are classified as non-performing assets when considered impaired, while all the other loans are included in the category of performing assets.

Out of non-performing assets, the Company and its subsidiaries consider smaller balance homogeneous loans, including housing loans, card loans and other, which are not restructured and finance leases, as 90 days or more past-due financing receivables not individually evaluated for impairment, and consider the others as loans individually evaluated for impairment. After the Company and its subsidiaries have set aside provision for those non-performing assets, the Company and its subsidiaries continue to monitor at least on a quarterly basis the quality of any underlying collateral, the status of management of the debtors and other important factors in order to report to management and develop additional provision as necessary.

The following table provides information about the non-accrual and past-due financing receivables as of March 31, 2019 and December 31, 2019:

	March 31, 2019
			Millions of yen
			Past-due financing receivables
Portfolio segment	Class		30-89 days past-due		90 days or more past-due		Total past-due		Total financing receivables		Non-accrual
Consumer borrowers			¥	5,783	¥	15,647	¥	21,430	¥	1,906,022	¥	15,647
		Housing loans		1,721		2,654		4,375		1,598,827		2,654
		Card loans		548		2,127		2,675		245,139		2,127
		Other		3,514		10,866		14,380		62,056		10,866
Corporate borrowers				4,960		13,753		18,713		1,300,921		27,979
Non-recourse loans		Japan		0		0		0		49,113		0
		The Americas		2,925		2,457		5,382		49,915		3,818
Other		Real estate companies		2		552		554		355,049		1,392
		Entertainment companies		0		663		663		66,047		663
		Other		2,033		10,081		12,114		780,797		22,106
Finance leases				7,181		14,807		21,988		1,155,632		14,807
		Japan		679		6,158		6,837		793,239		6,158
		Overseas		6,502		8,649		15,151		362,393		8,649
Total			¥	17,924	¥	44,207	¥	62,131	¥	4,362,575	¥	58,433
	December 31, 2019
			Millions of yen
			Past-due financing receivables
Portfolio segment	Class		30-89 days past-due		90 days      or more past-due		Total        past-due		Total financing receivables		Non-accrual
Consumer borrowers			¥	5,817	¥	15,413	¥	21,230	¥	2,126,058	¥	15,413
		Housing loans		1,826		2,657		4,483		1,840,644		2,657
		Card loans		515		1,946		2,461		226,221		1,946
		Other		3,476		10,810		14,286		59,193		10,810
Corporate borrowers				3,866		28,038		31,904		1,394,432		37,913
Non-recourse loans		Japan		0		0		0		72,597		0
		The Americas		142		2,516		2,658		70,506		2,516
Other		Real estate companies		74		14,263		14,337		386,716		14,368
		Entertainment companies		0		24		24		62,954		24
		Other		3,650		11,235		14,885		801,659		21,005
Finance leases				6,413		15,495		21,908		1,142,339		15,495
		Japan		700		6,084		6,784		771,697		6,084
		Overseas		5,713		9,411		15,124		370,642		9,411
Total			¥	16,096	¥	58,946	¥	75,042	¥	4,662,829	¥	68,821

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 financing receivables when principal or interest is past-due 30 days or more. Loans whose terms have been modified are not classified as past-due financing receivables if the principals and interests are not past-due 30 days or more in accordance with the modified terms.

The Company and its subsidiaries suspend accruing revenues on past-due installment loans and finance leases when principal or interest is past-due 90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. Cash repayments received on non-accrual loans are applied first against past due interest and then any surpluses are applied to principal in view of the conditions of the contract and obligors. The Company and its subsidiaries return to accrual status non-accrual loans and lease receivables when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and lease receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that we consider are relevant in assessing the debtor’s creditworthiness, such as the debtor’s business characteristics and financial conditions as well as relevant economic conditions and trends.

The following table provides information about troubled debt restructurings of financing receivables that occurred during the nine and three months ended December 31, 2018 and 2019:

	Nine months ended December 31, 2018
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	9,873	¥	6,876
	Housing loans		61		30
	Card loans		1,624		1,055
	Other		8,188		5,791
Corporate borrowers			6,002		6,001
Other	Other		6,002		6,001
Total		¥	15,875	¥	12,877
	Nine months ended December 31, 2019
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	9,187	¥	6,935
	Housing loans		16		14
	Card loans		1,422		1,052
	Other		7,749		5,869
Corporate borrowers			4,196		4,196
Non-recourse loans	The Americas		340		340
Other	Other		3,856		3,856
Total		¥	13,383	¥	11,131

	Three months ended December 31, 2018
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	3,961	¥	2,832
	Housing loans		10		5
	Card loans		552		363
	Other		3,399		2,464
Corporate borrowers			2,141		2,141
Other	Other		2,141		2,141
Total		¥	6,102	¥	4,973
	Three months ended December 31, 2019
		Millions of yen
Portfolio segment	Class	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Consumer borrowers		¥	3,079	¥	2,301
	Card loans		477		364
	Other		2,602		1,937
Corporate borrowers			1,749		1,749
Non-recourse loans	The Americas		340		340
Other	Other		1,409		1,409
Total		¥	4,828	¥	4,050

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 loans, the Company and its subsidiaries offer concessions including an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. For the debtors of all financing receivables other than non-recourse loans, the Company and its subsidiaries offer concessions such as a reduction of the loan principal, a temporary reduction in the interest payments, or an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. In addition, the Company and its subsidiaries may acquire collateral assets from the debtors in troubled debt restructurings to satisfy fully or partially the loan principal or past due interest.

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 December 31, 2018 and for which there was a payment default during the nine and three months ended December 31, 2018:

	Nine months ended December 31, 2018
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	1,380
		Card loans		23
		Other		1,357
Total			¥	1,380
	Three months ended December 31, 2018
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	933
		Card loans		20
		Other		913
Total			¥	933

The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from December 31, 2019 and for which there was a payment default during the nine and three months ended December 31, 2019:

	Nine months ended December 31, 2019
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	1,497
		Card loans		7
		Other		1,490
Consumer borrowers				127
Other		Other		127
Total			¥	1,624
	Three months ended December 31, 2019
			Millions of yen
Portfolio segment	Class		Recorded investment
Consumer borrowers			¥	444
		Card loans		4
		Other		440
Corporate borrowers				127
Other		Other		127
Total			¥	571

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 90 days or more in accordance with the modified terms.

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, 2019 and December 31, 2019, 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 ¥251 million and ¥323 million as of March 31, 2019 and December 31, 2019, respectively.

XML

Fair Value Measurements

9 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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 debt securities, available-for-sale debt securities, certain equity securities, derivatives, certain reinsurance recoverables, and variable annuity and variable life insurance contracts at fair value on a 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, 2019 and December 31, 2019:

March 31, 2019

	Millions of yen
	Total Carrying Value in Consolidated Balance Sheets			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1	¥	38,671		¥	0	¥	38,671	¥	0
Trading debt securities		1,564			0		1,564		0
Available-for-sale debt securities:		1,264,244			24,831		1,138,966		100,447
Japanese and foreign government bond securities*2		430,851			3,227		427,624		0
Japanese prefectural and foreign municipal bond securities		193,305			0		190,417		2,888
Corporate debt securities*3		487,997			21,604		459,235		7,158
CMBS and RMBS in the Americas		61,479			0		61,479		0
Other asset-backed securities and debt securities		90,612			0		211		90,401
Equity securities*4*5		425,593			68,631		295,769		61,193
Derivative assets:		15,495			299		9,924		5,272
Interest rate swap agreements		138			0		138		0
Options held/written and other		11,140			0		5,868		5,272
Futures, foreign exchange contracts		3,007			299		2,708		0
Foreign currency swap agreements		1,203			0		1,203		0
Credit derivatives written		7			0		7		0
Netting*6		(1,497	)		0		0		0
Net derivative assets		13,998			0		0		0
Other assets:		12,449			0		0		12,449
Reinsurance recoverables*7		12,449			0		0		12,449
Total	¥	1,758,016		¥	93,761	¥	1,484,894	¥	179,361
Liabilities:
Derivative liabilities:	¥	25,958		¥	522	¥	25,436	¥	0
Interest rate swap agreements		17,439			0		17,439		0
Options held/written and other		2,809			0		2,809		0
Futures, foreign exchange contracts		5,336			522		4,814		0
Foreign currency swap agreements		364			0		364		0
Credit derivatives held		10			0		10		0
Netting*6		(1,497	)		0		0		0
Net derivative Liabilities		24,461			0		0		0
Policy Liabilities and Policy Account Balances:		360,198			0		0		360,198
Variable annuity and variable life insurance contracts*8		360,198			0		0		360,198
Total	¥	386,156		¥	522	¥	25,436	¥	360,198

December 31, 2019

	Millions of yen
	Total Carrying Value in Consolidated Balance Sheets			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale*1	¥	43,238		¥	0	¥	43,238	¥	0
Trading debt securities		1,371			0		1,371		0
Available-for-sale debt securities:		1,576,349			22,381		1,453,002		100,966
Japanese and foreign government bond securities*2		591,235			3,585		587,650		0
Japanese prefectural and foreign municipal bond securities		238,288			0		235,437		2,851
Corporate debt securities*3		594,755			18,796		571,743		4,216
CMBS and RMBS in the Americas		57,962			0		57,962		0
Other asset-backed securities and debt securities		94,109			0		210		93,899
Equity securities*4*5		417,433			73,334		277,917		66,182
Derivative assets:		15,683			29		5,210		10,444
Interest rate swap agreements		167			0		167		0
Options held/written and other		13,692			0		3,248		10,444
Futures, foreign exchange contracts		403			29		374		0
Foreign currency swap agreements		1,421			0		1,421		0
Netting*6		(514	)		0		0		0
Net derivative assets		15,169			0		0		0
Other assets:		9,219			0		0		9,219
Reinsurance recoverables*7		9,219			0		0		9,219
Total	¥	2,063,293		¥	95,744	¥	1,780,738	¥	186,811
Liabilities:
Derivative liabilities:	¥	51,188		¥	157	¥	51,004	¥	27
Interest rate swap agreements		24,768			0		24,768		0
Options held/written and other		10,960			0		10,933		27
Futures, foreign exchange contracts		14,495			157		14,338		0
Foreign currency swap agreements		965			0		965		0
Netting*6		(514	)		0		0		0
Net derivative Liabilities		50,674			0		0		0
Policy Liabilities and Policy Account Balances:		333,017			0		0		333,017
Variable annuity and variable life insurance contracts*8		333,017			0		0		333,017
Total	¥	384,205		¥	157	¥	51,004	¥	333,044

*1 A certain subsidiary elected the fair value option on certain loans held for sale. These loans are multi-family and seniors housing loans and are sold to Federal National Mortgage Association (“Fannie Mae”) or institutional investors. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥495 million and ¥971 million from the change in the fair value of the loans for the nine months ended December 31, 2018 and 2019, respectively. Included in “Other (income) and expense, net” in the consolidated statements of income were gains of ¥294 million and ¥622 million from the change in the fair value of the loans for the three months ended December 31, 2018 and 2019, respectively. No gains or losses were recognized in earnings during the nine months ended December 31, 2018 and 2019 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, 2019, were ¥37,865 million and ¥38,671 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥806 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of December 31, 2019, were ¥41,473 million and ¥43,238 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥1,765 million. As of March 31, 2019 and December 31, 2019, there were no loans that are 90 days or more past due or, in non-accrual status.

*2 A certain subsidiary elected the fair value option for investments in foreign government bond securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥21 million and ¥7 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥12 million and ¥7 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥420 million and ¥790 million as of March 31, 2019 and December 31, 2019, respectively.

*3 A certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in available-for-sale debt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were a loss of ¥136 million and a gain of ¥1,048 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were a loss of ¥393 million and a gain of ¥231 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥21,136 million and ¥18,796 million as of March 31, 2019 and December 31, 2019, respectively.

*4 Certain subsidiaries elected the fair value option for certain investments in investment funds included in equity securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥906 million and ¥533 million from the change in the fair value of those investments for the nine months ended December 31, 2018 and 2019, respectively. Included in “Gains on investment securities and dividends” in the consolidated statements of income were gains of ¥265 million and ¥121 million from the change in the fair value of those investments for the three months ended December 31, 2018 and 2019, respectively. The amounts of aggregate fair value elected the fair value option were ¥5,811 million and ¥5,997 million as of March 31, 2019 and December 31, 2019, respectively.

*5 The amounts of investment funds measured at net asset value per share which are not included in the above tables were ¥12,100 million and ¥11,878 million as of March 31, 2019 and December 31, 2019, 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 ¥12,449 million and ¥9,219 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “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 ¥360,198 million and ¥333,017 million as of March 31, 2019 and December 31, 2019, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings during the nine and three months ended December 31, 2018 and 2019, see Note 17 “Life Insurance Operations.”

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 nine months ended December 31, 2018 and 2019:

Nine months ended December 31, 2018

	Millions of yen
	Balance at April 1, 2018		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2018		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2018 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	120,917	¥	2,032		¥	288		¥	2,320		¥	36,231	¥	(22,186	)	¥	(24,476	)	¥	(20,101	)	¥	92,705	¥	304
Japanese prefectural and foreign municipal bond securities		0		0			(7	)		(7	)		0		0			0			3,305			3,298		0
Corporate debt securities		3,037		0			5			5			0		0			(685	)		0			2,357		0
CMBS and RMBS in the Americas		36,010		1,034			546			1,580			1,304		(6,711	)		(8,777	)		(23,406	)		0		0
Other asset-backed securities and debt securities		81,870		998			(256	)		742			34,927		(15,475	)		(15,014	)		0			87,050		304
Equity securities		37,879		1,957			523			2,480			34,613		(18,352	)		0			0			56,620		1,685
Investment funds		37,879		1,957			523			2,480			34,613		(18,352	)		0			0			56,620		1,685
Derivative assets and liabilities (net)		2,291		(1,377	)		0			(1,377	)		1,673		0			(1,198	)		0			1,389		(1,377	)
Options held/written and other		2,291		(1,377	)		0			(1,377	)		1,673		0			(1,198	)		0			1,389		(1,377	)
Other asset		15,008		480			0			480			2,800		0			(486	)		0			17,802		480
Reinsurance recoverables *5		15,008		480			0			480			2,800		0			(486	)		0			17,802		480
Policy Liabilities and Policy Account Balances		444,010		18,993			422			19,415			0		0			(62,522	)		0			362,073		18,993
Variable annuity and variable life insurance contracts *6		444,010		18,993			422			19,415			0		0			(62,522	)		0			362,073		18,993

Nine months ended December 31, 2019

	Millions of yen
	Balance at April 1, 2019		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2019		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2019 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	100,447	¥	1,339		¥	(1,023	)	¥	316		¥	33,606	¥	(3,425	)	¥	(26,987	)	¥	(2,991	)	¥	100,966	¥	213
Japanese prefectural and foreign municipal bond securities		2,888		0			(37	)		(37	)		0		0			0			0			2,851		0
Corporate debt securities		7,158		0			(9	)		(9	)		900		0			(842	)		(2,991	)		4,216		0
Other asset-backed securities and debt securities		90,401		1,339			(977	)		362			32,706		(3,425	)		(26,145	)		0			93,899		213
Equity securities		61,193		5,594			(131	)		5,463			10,075		(5,760	)		(4,789	)		0			66,182		5,532
Investment funds		61,193		5,594			(131	)		5,463			10,075		(5,760	)		(4,789	)		0			66,182		5,532
Derivative assets and liabilities (net)		5,272		5,238			(93	)		5,145			0		0			0			0			10,417		5,238
Options held/written and other		5,272		5,238			(93	)		5,145			0		0			0			0			10,417		5,238
Other asset		12,449		(5,355	)		0			(5,355	)		2,303		0			(178	)		0			9,219		(5,355	)
Reinsurance recoverables *5		12,449		(5,355	)		0			(5,355	)		2,303		0			(178	)		0			9,219		(5,355	)
Policy Liabilities and Policy Account Balances		360,198		(12,426	)		189			(12,237	)		0		0			(39,418	)		0			333,017		(12,426	)
Variable annuity and variable life insurance contracts *6		360,198		(12,426	)		189			(12,237	)		0		0			(39,418	)		0			333,017		(12,426	)

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

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

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

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

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

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

In the nine months ended December 31, 2018, Japanese prefectural and foreign municipal bond securities totaling ¥3,305 million were transferred from Level 2 to Level 3, since the valuation techniques to measure fair value of a certain foreign municipal bond security has been changed to discounted cash flows methodologies using unobservable inputs. The change of the valuation techniques is due to judgement that the Company and its subsidiaries cannot rely on price quotations from independent pricing service vendors and brokers considering deterioration of estimated cash flows from the security. In addition, CMBS and RMBS in Americas totaling ¥23,406 million were transferred from Level 3 to Level 2, since the inputs such as trading price and/or bid price became observable due to the market returning to active.

In the nine months ended December 31, 2019, corporate debt securities totaling ¥2,991 million were transferred from Level 3 to Level 2, since the inputs became observable.

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 three months ended December 31, 2018 and 2019:

Three months ended December 31, 2018

	Millions of yen
	Balance at September 30, 2018		Gains or losses (realized/unrealized)								Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)			Balance at December 31, 2018		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2018 *1
			Included in earnings *1		Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	122,548	¥	882	¥	(4,450	)	¥	(3,568	)	¥	3,259	¥	(6,188	)	¥	(3,245	)	¥	(20,101	)	¥	92,705	¥	214
Japanese prefectural and foreign municipal bond securities		0		0		(7	)		(7	)		0		0			0			3,305			3,298		0
Corporate debt securities		2,547		0		5			5			0		0			(195	)		0			2,357		0
CMBS and RMBS in the Americas		23,996		0		(590	)		(590	)		0		0			0			(23,406	)		0		0
Other asset-backed securities and debt securities		96,005		882		(3,858	)		(2,976	)		3,259		(6,188	)		(3,050	)		0			87,050		214
Equity securities		44,559		241		(1,056	)		(815	)		17,535		(4,659	)		0			0			56,620		140
Investment funds		44,559		241		(1,056	)		(815	)		17,535		(4,659	)		0			0			56,620		140
Derivative assets and liabilities (net)		743		1,021		0			1,021			0		0			(375	)		0			1,389		1,021
Options held/written and other		743		1,021		0			1,021			0		0			(375	)		0			1,389		1,021
Other asset		11,121		6,073		0			6,073			847		0			(239	)		0			17,802		6,073
Reinsurance recoverables *5		11,121		6,073		0			6,073			847		0			(239	)		0			17,802		6,073
Policy Liabilities and Policy Account Balances		405,705		28,247		534			28,781			0		0			(14,851	)		0			362,073		28,247
Variable annuity and variable life insurance contracts *6		405,705		28,247		534			28,781			0		0			(14,851	)		0			362,073		28,247

Three months ended December 31, 2019

	Millions of yen
	Balance at September 30, 2019		Gains or losses (realized/unrealized)									Purchases *3		Sales			Settlements *4			Transfers in and/ or out of Level 3 (net)		Balance at December 31, 2019		Change in unrealized gains or losses included in earnings for assets and liabilities still held at December 31, 2019 *1
			Included in earnings *1			Included in other comprehensive income *2			Total
Available-for-sale debt securities	¥	87,265	¥	244		¥	1,122		¥	1,366		¥	17,532	¥	(3,293	)	¥	(1,904	)	¥	0	¥	100,966	¥	141
Japanese prefectural and foreign municipal bond securities		2,808		0			43			43			0		0			0			0		2,851		0
Corporate debt securities		3,638		0			(15	)		(15	)		900		0			(307	)		0		4,216		0
Other asset-backed securities and debt securities		80,819		244			1,094			1,338			16,632		(3,293	)		(1,597	)		0		93,899		141
Equity securities		65,854		929			1,283			2,212			4,639		(3,368	)		(3,155	)		0		66,182		1,137
Investment funds		65,854		929			1,283			2,212			4,639		(3,368	)		(3,155	)		0		66,182		1,137
Derivative assets and liabilities (net)		16,275		(6,123	)		265			(5,858	)		0		0			0			0		10,417		(6,123	)
Options held/written and other		16,275		(6,123	)		265			(5,858	)		0		0			0			0		10,417		(6,123	)
Other asset		11,382		(2,874	)		0			(2,874	)		750		0			(39	)		0		9,219		(2,874	)
Reinsurance recoverables *5		11,382		(2,874	)		0			(2,874	)		750		0			(39	)		0		9,219		(2,874	)
Policy Liabilities and Policy Account Balances		336,840		(10,387	)		(94	)		(10,481	)		0		0			(14,304	)		0		333,017		(10,387	)
Variable annuity and variable life insurance contracts *6		336,840		(10,387	)		(94	)		(10,481	)		0		0			(14,304	)		0		333,017		(10,387	)

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

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

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

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

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

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

In the three months ended December 31, 2018, Japanese prefectural and foreign municipal bond securities totaling ¥3,305 million were transferred from Level 2 to Level 3, since the valuation techniques to measure fair value of a certain foreign municipal bond security has been changed to discounted cash flows methodologies using unobservable inputs. The change of the valuation techniques is due to judgement that the Company and its subsidiaries cannot rely on price quotations from independent pricing service vendors and brokers considering deterioration of estimated cash flows from the security. In addition, CMBS and RMBS in Americas totaling ¥23,406 million were transferred from Level 3 to Level 2, since the inputs such as trading price and/or bid price became observable due to the market returning to active. There were no transfers in or out of Level 3 in the three months ended December 31, 2019.

The following tables present recorded amounts of assets measured at fair value on a nonrecurring basis during year ended March 31, 2019 and the nine months ended December 31, 2019. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment:

Year ended March 31, 2019

	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	¥	3,839	¥	0	¥	3,839	¥	0
Real estate collateral-dependent loans (net of allowance for probable loan losses)		6,630		0		0		6,630
Investment in operating leases and property under facility operations		12,901		0		0		12,901
Certain investments in affiliates		2,897		0		0		2,897
	¥	26,267	¥	0	¥	3,839	¥	22,428
Nine months ended December 31, 2019
	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)	¥	4,494	¥	0	¥	0	¥	4,494
Investment in operating leases and property under facility operations		4,462		0		712		3,750
Certain investments in affiliates		1,561		0		0		1,561
	¥	10,517	¥	0	¥	712	¥	9,805

The following is a description of the main valuation methodologies used for assets and liabilities measured at fair value.

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. The loans held for sale in the Americas are classified as Level 2, because the Company and its subsidiaries measure their fair value based on a market approach using inputs other than quoted prices that are observable for the assets such as treasury rate, swap rate and market spread.

Real estate collateral-dependent loans

The valuation allowance for large balance non-homogeneous loans is individually evaluated 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. According to ASC 820 (“Fair Value Measurement”), measurement for impaired loans determined using a present value technique is not considered a fair value measurement. However, measurement for impaired loans determined using the loan’s observable market price or the fair value of the collateral securing the collateral-dependent loans are fair value measurements and are subject to the disclosure requirements for nonrecurring fair value measurements.

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 debt securities and available-for-sale debt securities

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 such as 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 benchmark 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 spread, significant decline in new issuances, little or no public information (e.g. a principal-to-principal market) and other factors. With respect to certain CMBS and RMBS in the Americas and other asset-backed securities, the Company and its subsidiaries judged that there has been increased overall trading activity, and the Company and its subsidiaries classified these securities as Level 2 for those securities that were measured at fair value based on the observable inputs such as trading price and/or bit price. But for those securities that lacked observable trades because they are older vintage or below investment grade securities, the Company and its subsidiaries limit the reliance on independent pricing service vendors and brokers. As a result, the Company and its subsidiaries established internally developed pricing models using valuation techniques such as discounted cash flow model using Level 3 inputs in order to estimate fair value of these debt securities and classified them as Level 3. Under the models, the Company and its subsidiaries use anticipated cash flows of the security discounted at a risk-adjusted discount rate that incorporates our estimate of credit risk and liquidity risk that a market participant would consider. The cash flows are estimated based on a number of assumptions such as default rate and prepayment speed, as well as seniority of the security. An increase (decrease) in the discount rate or default rate would result in a decrease (increase) in the fair value of CMBS and RMBS in the Americas and other asset-backed securities.

Equity securities and investment in affiliates

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. Certain subsidiaries elected the fair value option for investments in some funds. In addition, a certain subsidiary measures its investment held by the investment company which is owned by the subsidiary at fair value. These investment funds are classified as Level 3, because the subsidiaries measure their fair value based on discounted cash flow methodologies using inputs that are unobservable in the market and broker quotes.

Derivatives

For exchange-traded derivatives, fair value is based on quoted market prices, and accordingly, classified as Level 1. For non-exchange traded derivatives, fair value is based on commonly used models and discounted cash flow methodologies. If the inputs used for these measurements including yield curves and volatilities, are observable, the Company and its subsidiaries classify it as Level 2. If the inputs are not observable, the Company and its subsidiaries classify it as Level 3. These unobservable inputs contain discount rates. An increase (decrease) in the discount rate would result in a decrease (increase) in the fair value of derivatives.

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. 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, 2019 and December 31, 2019.

	March 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Available-for-sale debt securities:
Japanese prefectural and foreign municipal bond securities	¥	2,888	Discounted cash flows	Discount rate	8.5%
					(8.5%)
Corporate debt securities		2,162	Discounted cash flows	Discount rate	0.1% – 1.3%
					(0.8%)
		4,996	Appraisals/Broker quotes	—	—
Other asset-backed securities and debt securities		23,651	Discounted cash flows	Discount rate	0.2% – 51.2%
					(8.3%)
				Probability of default	0.6% – 1.6%
					(0.8%)
		66,750	Appraisals/Broker quotes	—	—
Equity securities:
Investment funds		6,012	Internal cash flows	Discount rate	0.0% – 65.0%
					(11.3%)
		32,702	Discounted cash flows	Discount rate	3.8% – 17.0%
					(14.1%)
		22,479	Appraisals/Broker quotes	—	—
Derivative assets:
Options held/written and other		5,005	Discounted cash flows	Discount rate	0.0% – 15.0%
					(8.6%)
		267	Appraisals/Broker quotes	—	—
Other assets:
Reinsurance recoverables		12,449	Discounted cash flows	Discount rate	(0.1)% – 0.4%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 24.0%
					(16.2%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (99.9%)
Total	¥	179,361
Liabilities:
Policy liabilities and Policy Account Balances:
Variable annuity and variable life insurance contracts	¥	360,198	Discounted cash flows	Discount rate	(0.1)% – 0.4%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 54.0%
					(16.0%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (80.3%)
Total	¥	360,198

	December 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Available-for-sale debt securities:
Japanese prefectural and foreign municipal bond securities	¥	2,851	Discounted cash flows	Discount rate	8.5%
					(8.5%)
Corporate debt securities		2,216	Discounted cash flows	Discount rate	0.2% – 2.5%
					(0.8%)
		2,000	Appraisals/Broker quotes	—	—
Other asset-backed securities and debt securities		19,168	Discounted cash flows	Discount rate	1.0% – 51.2%
					(11.3%)
				Probability of default	1.9%
					(1.9%)
		74,731	Appraisals/Broker quotes	—	—
Equity securities:
Investment funds		5,352	Internal cash flows	Discount rate	0.0% – 65.0%
					(2.3%)
		49,972	Discounted cash flows	Discount rate	3.8% – 19.1%
					(16.8%)
		10,858	Appraisals/Broker quotes	—	—
Derivative assets:
Options held/written and other		10,391	Discounted cash flows	Discount rate	12.0% – 33.0%
					(14.0%)
		53	Appraisals/Broker quotes	—	—
Other assets:
Reinsurance recoverables		9,219	Discounted cash flows	Discount rate	(0.1)% – 0.5%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.4%)
				Lapse rate	1.5% – 14.0%
					(7.2%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (100.0%)
Total	¥	186,811
Liabilities:
Derivative liabilities:
Options held/written and other		27	Appraisals/Broker quotes	—	—
Policy liabilities and Policy Account Balances:
Variable annuity and variable life insurance contracts	¥	333,017	Discounted cash flows	Discount rate	(0.1)% – 0.5%
					(0.1%)
				Mortality rate	0.0% – 100.0%
					(1.3%)
				Lapse rate	1.5% – 30.0%
					(7.2%)
				Annuitization rate (guaranteed minimum annuity benefit)	0.0% – 100.0% (80.2%)
Total	¥	333,044

The following tables provide information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets measured at fair value on a nonrecurring basis during year ended March 31, 2019 and the nine months ended December 31, 2019.

	Year ended March 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Real estate collateral-dependent loans (net of allowance for probable loan losses)	¥	6,630	Direct capitalization	Capitalization rate	5.8% – 8.2%
					(6.3%)
			Appraisals	—	—
Investment in operating leases and property under facility operations		2,345	Discounted cash flows	Discount rate	7.3%
					(7.3%)
		10,556	Appraisals	—	—
Certain investments in affiliates		334	Business enterprise value multiples	—	—
			Discounted cash flows	Discount rate	14.0%
					(14.0%)
		2,563	Appraisals	—	—
	¥	22,428
	Nine months ended December 31, 2019
	Millions of yen
	Fair value		Valuation technique(s)	Significant unobservable inputs	Range (Weighted average)
Assets:
Real estate collateral-dependent loans (net of allowance for probable loan losses)	¥	4,494	Direct capitalization	Capitalization rate	5.6% – 6.6%
					(6.1%)
			Appraisals	—	—
Investment in operating leases and property under facility operations		3,750	Appraisals	—	—
Certain investments in affiliates		1,561	Appraisals	—	—
	¥	9,805

The Company and its subsidiaries generally use discounted cash flow methodologies or similar internally developed models to determine the fair value of Level 3 assets and liabilities. Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding table. Accordingly, changes in these unobservable inputs may have a significant impact on the fair value.

Certain of these unobservable inputs will have a directionally consistent impact on the fair value of the asset or liability for a given change in that input. Alternatively, the fair value of the asset or liability may move in an opposite direction for a given change in another input. Where multiple inputs are used within the valuation technique of an asset or liability, a change in one input in a certain direction may be offset by an opposite change in another input having a potentially muted impact to the overall fair value of that particular asset or liability. Additionally, a change in one unobservable input may result in a change to another unobservable input (that is, changes in certain inputs are interrelated to one another), which may counteract or magnify the fair value impact.

For more analysis of the sensitivity of each input, see the description of the main valuation methodologies used for assets and liabilities measured at fair value.

XML

Investment in Affiliates

9 Months Ended

Dec. 31, 2019

Investments in and Advances to Affiliates [Abstract]

Investment in Affiliates

11. Investment in Affiliates

Investment in affiliates at March 31, 2019 and December 31, 2019 consists of the following:

	Millions of yen
	March 31, 2019		December 31, 2019
Shares	¥	789,638	¥	770,274
Loans and others		53,122		51,709
	¥	842,760	¥	821,983

XML

Segment Information

9 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

24. Segment Information

Based on the nature of major products and services, customer base, and management organizations, our business are organized into six operating segments: Corporate Financial Services, Maintenance Leasing, Real Estate, Investment and Operation, Retail and Overseas Business.

The financial information by the operating segments as reported below is that which is available by the segments, and regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

Types of products and services of the six segments are as follows.

Corporate Financial Services	:	Finance and fee business
Maintenance Leasing	:	Automobile leasing and rentals, car-sharing; test and measurement instruments, and IT-related equipment rentals and leasing
Real Estate	:	Real estate development, rental and management; facility operation; real estate investment management
Investment and Operation	:	Environment and energy, private equity and concession
Retail	:	Life insurance, banking and card loan
Overseas Business	:	Asset management, aircraft- and ship-related operations, private equity and finance

In fiscal 2019, the Company had made DAIKYO a wholly-owned subsidiary, to complement their respective real estate business and to jointly aim for medium- and long-term growth as a comprehensive real estate group. Accordingly, the segment classification of DAIKYO had been shifted from Investment and Operation segment to Real Estate segment since the previous fiscal year. As a result of this change, the segment data of the previous fiscal year has been retrospectively restated.

The Company and its subsidiaries adopted the New Lease Standard on April 1, 2019. This adoption has resulted in a gross up of ROU assets of investment in operating leases and property under facility operations principally for operating leases, where the Company is the lessee, such as land leases and office and equipment leases in all of our segments except for Retail segment. For further information, see Note 2 “Significant Accounting and Reporting Policies (ag) New accounting pronouncements.”

The following table represents the financial data for segments for the nine months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142
Segment profits		19,760		30,387		54,721		31,091		66,237		95,621		297,817
The following table represents the financial data for segments for the nine months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739
Segment profits		13,159		25,767		56,070		55,590		70,447		131,894		352,927

The following table represents the financial data for segments for the three months ended December 31, 2018:

	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262
Segment profits		2,972		9,804		10,557		6,201		17,062		27,905		74,501
The following table represents the financial data for segments for the three months ended December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Segment revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653
Segment profits		4,008		9,142		9,892		27,203		27,262		45,031		122,538
The following table presents the financial data on segment assets for segments as of March 31, 2019 and December 31, 2019:
	Millions of yen
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
March 31, 2019	¥	959,725	¥	873,775	¥	720,221	¥	733,612	¥	3,571,437	¥	3,138,928	¥	9,997,698
December 31, 2019		1,000,148		900,943		756,092		808,466		4,110,336		3,283,169		10,859,154

The accounting policies for segment financial data is generally the same as described in Note 2 “Significant Accounting and Reporting Policies”, except for the treatments on tax expenses, net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests. Besides, net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests are not included in segment profits or losses because the segment information is based on profits or losses (pre-tax) attributable to ORIX Corporation Shareholders. Tax expenses are not included in segment profit or loss because the segment performance is assessed based on net income before taxes. The net income attributable to non-controlling interests and net income attributable to the redeemable non-controlling interests, which are recognized after-tax in the consolidated financial statements, are adjusted to the pre-tax basis. Most of the selling, general and administrative expenses, including personnel expenses that are directly related to the operating activities, are aggregated and recorded in each segment. Gains and losses which are not considered for the evaluation of segment performance, such as the write-down of certain long-lived assets and foreign exchange profits or losses (other profit or loss (net) included ), are treated as corporate profits or losses.

Assets attributed to each segment are net investment in leases, installment loans, investment in operating leases, investment in securities, property under facility operations, investment in affiliates, inventories, advances for finance lease and operating lease (included in other assets), advances for property under facility operations (included in other assets), goodwill, intangible assets acquired in business combinations (included in other assets) and servicing assets (included in other assets). It should be noted that the depreciation expenses of office facilities are included in each segment profit and loss while the corresponding assets are not allocated to each segment’s assets. However, the amount is not significant.

The reconciliation of segment totals to consolidated financial statement amounts is as follows:

Significant items to be reconciled are segment revenues, segment profits and segment assets. Other items do not have a significant difference between segment amounts and consolidated amounts.

	Millions of yen
	Nine months ended December 31, 2018			Nine months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	1,802,142		¥	1,691,739
Revenues related to corporate assets		7,894			8,035
Revenues from inter-segment transactions		(13,881	)		(15,395	)
Total consolidated revenues	¥	1,796,155		¥	1,684,379
Segment profits:
Total profits for segments	¥	297,817		¥	352,927
Corporate profits (losses)		(5,190	)		(6,875	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		2,541			4,406
Total consolidated income before income taxes	¥	295,168		¥	350,458
	Millions of yen
	Three months ended December 31, 2018			Three months ended December 31, 2019
Segment revenues:
Total revenues for segments	¥	537,262		¥	574,653
Revenues related to corporate assets		1,162			1,805
Revenues from inter-segment transactions		(4,283	)		(4,757	)
Total consolidated revenues	¥	534,141		¥	571,701
Segment profits:
Total profits for segments	¥	74,501		¥	122,538
Corporate profits (losses)		(1,027	)		(2,439	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		749			1,730
Total consolidated income before income taxes	¥	74,223		¥	121,829
	Millions of yen
	March 31, 2019			December 31, 2019
Segment assets:
Total assets for segments	¥	9,997,698		¥	10,859,154
Cash and cash equivalents, restricted cash		1,283,580			1,020,609
Allowance for doubtful receivables on finance leases and probable loan losses		(58,011	)		(56,922	)
Trade notes, accounts and other receivable		280,590			276,405
Other corporate assets		671,060			743,712
Total consolidated assets	¥	12,174,917		¥	12,842,958

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the nine months ended December 31, 2018, and for the nine months ended December 31, 2019:

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,433,808	¥	149,509	¥	212,838	¥	1,796,155
Income before Income Taxes		201,496		55,590		38,082		295,168
For the nine months ended December 31, 2019
	Millions of yen
	Nine months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	1,314,414	¥	154,143	¥	215,822	¥	1,684,379
Income before Income Taxes		219,836		64,739		65,883		350,458

The following tables represent the consolidated financial data of the Company and its subsidiaries by geographic areas for the three months ended December 31, 2018, and for the three months ended December 31, 2019:

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	408,515	¥	50,509	¥	75,117	¥	534,141
Income before Income Taxes		47,354		11,626		15,243		74,223
For the three months ended December 31, 2019
	Millions of yen
	Three months ended December 31, 2019
	Japan		The Americas *1		Other *2		Total
Total Revenues	¥	446,798	¥	52,623	¥	72,280	¥	571,701
Income before Income Taxes		78,153		19,307		24,369		121,829

*1	Mainly the United States
*2	Mainly Asia, Europe, Australasia and the Middle East

The following tables represent the breakdown of revenue by types of contract with customers, products and services, and geographic areas for the nine months ended December 31, 2018, for the nine months ended December 31, 2019:​​​​​​​

For the nine months ended December 31, 2018

	Millions of yen
	Nine months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	3,184	¥	3,539	¥	4,876	¥	371,192	¥	0	¥	5,996	¥	388,787	¥	1,167		¥	389,954
Real estate sales		0		0		62,842		0		0		402		63,244		0			63,244
Asset management and servicing		0		0		4,458		328		121		143,910		148,817		(66	)		148,751
Automobile related services		367		45,659		0		139		0		12,752		58,917		(271	)		58,646
Facilities operation		0		0		79,624		0		0		2,944		82,568		0			82,568
Environment and energy services		2,242		0		165		96,520		0		783		99,710		(619	)		99,091
Real estate management and brokerage		0		0		78,466		0		0		0		78,466		(1,314	)		77,152
Real estate contract work		0		0		53,055		0		0		0		53,055		(9	)		53,046
Other		26,545		6,750		3,334		27,975		2,319		14,949		81,872		(1,511	)		80,361
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Geographical location
Japan		32,338		55,675		286,820		495,602		2,440		4,637		877,512		(480	)		877,032
The Americas		0		0		0		0		0		89,901		89,901		0			89,901
Other		0		273		0		552		0		87,198		88,023		(2,143	)		85,880
Total revenues from contracts with customers		32,338		55,948		286,820		496,154		2,440		181,736		1,055,436		(2,623	)		1,052,813
Other revenues *		39,379		158,356		70,561		7,878		286,848		183,684		746,706		(3,364	)		743,342
Segment revenues /Total revenues	¥	71,717	¥	214,304	¥	357,381	¥	504,032	¥	289,288	¥	365,420	¥	1,802,142	¥	(5,987	)	¥	1,796,155

For the nine months ended December 31, 2019

	Millions of yen
	Nine months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	4,323	¥	4,734	¥	3,257	¥	197,472	¥	0	¥	3,856	¥	213,642	¥	1,216		¥	214,858
Real estate sales		0		0		64,518		0		0		751		65,269		0			65,269
Asset management and servicing		0		0		5,962		264		122		133,012		139,360		(80	)		139,280
Automobile related services		372		45,727		0		172		0		12,981		59,252		(296	)		58,956
Facilities operation		0		0		57,807		0		0		363		58,170		(0	)		58,170
Environment and energy services		2,298		0		0		105,810		0		787		108,895		(548	)		108,347
Real estate management and brokerage		0		0		79,648		0		0		0		79,648		(1,790	)		77,858
Real estate contract work		0		0		65,338		0		0		0		65,338		0			65,338
Other		26,003		7,389		3,046		28,747		3,052		11,079		79,316		(1,191	)		78,125
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Geographical location
Japan		32,996		57,285		279,576		331,404		3,174		3,146		707,581		(158	)		707,423
The Americas		0		0		0		0		0		76,367		76,367		0			76,367
Other		0		565		0		1,061		0		83,316		84,942		(2,531	)		82,411
Total revenues from contracts with customers		32,996		57,850		279,576		332,465		3,174		162,829		868,890		(2,689	)		866,201
Other revenues *		36,725		166,167		52,463		8,837		352,294		206,363		822,849		(4,671	)		818,178
Segment revenues /Total revenues	¥	69,721	¥	224,017	¥	332,039	¥	341,302	¥	355,468	¥	369,192	¥	1,691,739	¥	(7,360	)	¥	1,684,379

The following tables represent the breakdown of revenue by types of contract with customers, products and services, and geographic areas for the three months ended December 31, 2018, and for the three months ended December 31, 2019:

For the three months ended December 31, 2018

	Millions of yen
	Three months ended December 31, 2018
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,180	¥	1,142	¥	1,544	¥	94,144	¥	0	¥	3,881	¥	101,891	¥	152		¥	102,043
Real estate sales		0		0		20,148		0		0		246		20,394		0			20,394
Asset management and servicing		0		0		1,579		93		37		48,402		50,111		(11	)		50,100
Automobile related services		122		16,027		0		46		0		4,348		20,543		(96	)		20,447
Facilities operation		0		0		26,860		0		0		977		27,837		(0	)		27,837
Environment and energy services		551		0		43		31,158		0		207		31,959		(203	)		31,756
Real estate management and brokerage		0		0		26,350		0		0		0		26,350		(284	)		26,066
Real estate contract work		0		0		21,015		0		0		0		21,015		(9	)		21,006
Other		8,028		2,235		1,098		9,184		843		5,950		27,338		(1,530	)		25,808
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Geographical location
Japan		9,881		19,331		98,637		134,420		880		1,759		264,908		(1,341	)		263,567
The Americas		0		0		0		0		0		30,716		30,716		0			30,716
Other		0		73		0		205		0		31,536		31,814		(640	)		31,174
Total revenues from contracts with customers		9,881		19,404		98,637		134,625		880		64,011		327,438		(1,981	)		325,457
Other revenues *		10,769		53,258		14,746		1,732		66,673		62,646		209,824		(1,140	)		208,684
Segment revenues /Total revenues	¥	20,650	¥	72,662	¥	113,383	¥	136,357	¥	67,553	¥	126,657	¥	537,262	¥	(3,121	)	¥	534,141

For the three months ended December 31, 2019

	Millions of yen
	Three months ended December 31, 2019
	Reportable segments														Corporate revenue and intersegment transactions			Total revenues
	Corporate Financial Services		Maintenance Leasing		Real Estate		Investment and Operation		Retail		Overseas Business		Total
Goods or services category
Sales of goods	¥	1,506	¥	1,528	¥	346	¥	71,352	¥	0	¥	564	¥	75,296	¥	139		¥	75,435
Real estate sales		0		0		19,948		0		0		250		20,198		0			20,198
Asset management and servicing		0		0		2,060		85		42		47,389		49,576		(38	)		49,538
Automobile related services		121		16,254		0		48		0		4,351		20,774		(97	)		20,677
Facilities operation		0		0		16,248		0		0		107		16,355		0			16,355
Environment and energy services		610		0		0		31,591		0		206		32,407		(187	)		32,220
Real estate management and brokerage		0		0		26,782		0		0		0		26,782		(390	)		26,392
Real estate contract work		0		0		22,657		0		0		0		22,657		0			22,657
Other		9,312		2,551		967		9,138		1,087		3,522		26,577		(904	)		25,673
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Geographical location
Japan		11,549		20,142		89,008		111,971		1,129		980		234,779		(679	)		234,100
The Americas		0		0		0		0		0		27,374		27,374		0			27,374
Other		0		191		0		243		0		28,035		28,469		(798	)		27,671
Total revenues from contracts with customers		11,549		20,333		89,008		112,214		1,129		56,389		290,622		(1,477	)		289,145
Other revenues *		12,482		56,468		13,843		4,031		128,759		68,448		284,031		(1,475	)		282,556
Segment revenues /Total revenues	¥	24,031	¥	76,801	¥	102,851	¥	116,245	¥	129,888	¥	124,837	¥	574,653	¥	(2,952	)	¥	571,701

* Other revenues include revenues that are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Statement of Cash Flows [Abstract]
Cash and Cash Equivalents	¥ 902,312	¥ 1,161,032	¥ 1,215,907
Restricted Cash	118,297	122,548	119,292
Cash, Cash Equivalents and Restricted Cash	¥ 1,020,609	¥ 1,283,580	¥ 1,335,199	¥ 1,405,117

XML

Revenues from Contracts with Customers (Tables)

9 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Summary of Revenue from Contract with Customers and Other Sources of Revenue

The following table provides information about revenues from contracts with customers, and other sources of revenue for the nine and three months ended December 31, 2018 and 2019 are as follows;

	Millions of yen		Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Revenues from contracts with customers	¥	1,052,813	¥	866,201
Other revenues *		743,342		818,178
Total revenues	¥	1,796,155	¥	1,684,379
	Millions of yen		Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Revenues from contracts with customers	¥	325,457	¥	289,145
Other revenues *		208,684		282,556
Total revenues	¥	534,141	¥	571,701

* Other revenues are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.

Summary of Balances from Contracts with Customers

The following table provides information about balances from contracts with customers as of March 31, 2019 and December 31, 2019.

	Millions of yen
	March 31, 2019		December 31, 2019
Trade Notes, Accounts and Other Receivable	¥	161,884	¥	166,573
Contract assets (Included in Other Assets)		2,277		6,573
Contract liabilities (Included in Other Liabilities)		45,371		31,228

XML

CONSOLIDATED STATEMENTS OF INCOME - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Total revenues	¥ 571,701	¥ 534,141	¥ 1,684,379	¥ 1,796,155
Expenses:
Interest expense	23,763	25,528	74,006	67,376
Costs of operating leases	66,388	64,127	197,309	191,493
Life insurance costs	78,177	27,065	209,137	152,799
Costs of goods and real estate sold	85,705	110,497	245,747	415,810
Services expense	119,772	127,673	367,521	375,245
Other (income) and expense, net	644	745	(131)	242
Selling, general and administrative expenses	116,563	109,438	337,754	320,084
Provision for doubtful receivables and probable loan losses	5,151	5,865	15,724	14,075
Write-downs of long-lived assets	518	0	554	26
Write-downs of securities	0	113	36	821
Total expenses	496,681	471,051	1,447,657	1,537,971
Operating Income	75,020	63,090	236,722	258,184
Equity in Net Income of Affiliates	21,609	9,695	54,226	16,514
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net	25,200	1,438	58,488	20,470
Bargain Purchase Gain			1,022	0
Income before Income Taxes	121,829	74,223	350,458	295,168
Provision for Income Taxes	35,684	(8,186)	102,649	56,140
Net Income	86,145	82,409	247,809	239,028
Net Income Attributable to the Noncontrolling Interests	939	903	3,131	2,387
Net Income Attributable to the Redeemable Noncontrolling Interests	37	349	359	434
Net Income Attributable to ORIX Corporation Shareholders	¥ 85,169	¥ 81,157	¥ 244,319	¥ 236,207
Basic:
Net Income Attributable to ORIX Corporation Shareholders	¥ 66.64	¥ 63.41	¥ 190.99	¥ 184.53
Diluted:
Net Income Attributable to ORIX Corporation Shareholders	¥ 66.58	¥ 63.35	¥ 190.82	¥ 184.38
Finance Revenues
Revenues:
Total revenues	¥ 64,380	¥ 62,599	¥ 190,504	¥ 179,951
Gains (losses) on investment securities and dividends
Revenues:
Total revenues	7,285	(6,968)	27,666	4,767
Operating Leases
Revenues:
Total revenues	100,743	104,346	303,148	313,321
Life Insurance Premiums And Related Investment Income
Revenues:
Total revenues	108,188	47,416	290,656	228,020
Sales of Goods and Real Estate
Revenues:
Total revenues	95,633	122,438	280,127	453,199
Services Income
Revenues:
Total revenues	¥ 195,472	¥ 204,310	¥ 592,278	¥ 616,897

XML

Life Insurance Operations (Reinsurance Benefits and Reinsurance Premiums Included in Life Insurance Premiums) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Policyholders Account In Life Insurance Business [Abstract]
Reinsurance benefits	¥ 774	¥ 698	¥ 1,949	¥ 1,891
Reinsurance premiums	¥ (1,282)	¥ (1,293)	¥ (3,933)	¥ (4,142)

XML

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		9 Months Ended
	Dec. 31, 2019 JPY (¥) Property	Dec. 31, 2018 JPY (¥) Property	Dec. 31, 2019 JPY (¥) Property		Dec. 31, 2018 JPY (¥) Property
Impaired Long-Lived Assets Held and Used [Line Items]
Write-downs due to decline estimated future cash flows, amount	¥ 518	¥ 0	¥ 554		¥ 26
Write-downs due to decline estimated future cash flows, number of properties | Property	1
Commercial Facilities Other Than Office Buildings
Impaired Long-Lived Assets Held and Used [Line Items]
Write-downs due to decline estimated future cash flows, amount	¥ 509	¥ 0	¥ 529		¥ 16
Write-downs due to decline estimated future cash flows, number of properties | Property		0	2		1
Property, Plant and Equipment, Other Types
Impaired Long-Lived Assets Held and Used [Line Items]
Write-downs due to decline estimated future cash flows, amount	¥ 9	¥ 0	¥ 25	[1]	¥ 10	[1]

[1] For the “Others,” the number of properties is omitted.

XML

Significant Accounting and Reporting Policies - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Significant Accounting Policies [Line Items]
A maximum lag period of recognizing the results of subsidiaries and affiliates			3 months
Increase in additional paid-in capital had such stock splits made prior to October 1, 2001			¥ 24,674
Residential condominiums under development	¥ 74,843		74,843		¥ 55,860
Finished goods	57,115		57,115		59,835
Write-down on residential condominiums under development	¥ 123	¥ 159	¥ 277	¥ 269
Effective tax rate	29.30%	(11.00%)	29.30%	19.00%
NationalCorporateTaxRate	24.00%	24.00%	24.00%	24.00%
Inhabitant tax	4.00%	4.00%	4.00%	4.00%
Statutory income tax rate	31.50%	31.50%	31.50%	31.50%
Deductible enterprise tax	4.00%	4.00%	4.00%	4.00%
Goodwill acquired	¥ 426,111		¥ 426,111		430,679
Other intangible assets	398,701		398,701		427,098
Operating Lease, Liability	271,093		271,093
Loans held for sale in installment loans	80,234		80,234		54,311
Aggregate loan fair value	43,238		43,238		38,671
Decrease in provision for income taxes		¥ 27,376	27,376
Accounting Standards Update 2016-02
Significant Accounting Policies [Line Items]
Increase in lease liabilities					284,867
Investment in operating leases
Significant Accounting Policies [Line Items]
Right of use assets in investment in operating leases	128,951		128,951
Increase in right of use assets					134,345
Accumulated depreciation of Investment in operating leases			659,318		634,478
Office facilities subject to operating lease
Significant Accounting Policies [Line Items]
Right of Use Assets in Office Facilities	75,816		75,816
Office facilities subject to operating lease | Accounting Standards Update 2016-02
Significant Accounting Policies [Line Items]
Increase (decrease) In right of use assets in office facilities					75,805
Property under Facility Operations
Significant Accounting Policies [Line Items]
Accumulated depreciation	99,748		99,748		102,185
Right of use assets in property under facility operations	69,719		69,719
Property under Facility Operations | Accounting Standards Update 2016-02
Significant Accounting Policies [Line Items]
Increase (decrease) in right of use assets in property under facility operations					77,989
Office Facilities
Significant Accounting Policies [Line Items]
Accumulated depreciation	¥ 63,823		¥ 63,823		¥ 54,499
Minimum
Significant Accounting Policies [Line Items]
Income tax settlement by tax authority			50.00%

XML

Estimated Fair Value of Financial Instruments (Tables)

9 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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. The disclosures do not include net investment in leases, investment in affiliates, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts.

March 31, 2019

	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	1,161,032	¥	1,161,032	¥	1,161,032	¥	0	¥	0
Restricted cash		122,548		122,548		122,548		0		0
Installment loans (net of allowance for probable loan losses)		3,231,708		3,228,750		0		199,590		3,029,160
Equity securities *1		425,593		425,593		68,631		295,769		61,193
Trading debt securities		1,564		1,564		0		1,564		0
Available-for-sale debt securities		1,264,244		1,264,244		24,831		1,138,966		100,447
Held-to-maturity debt securities		114,061		144,326		0		120,714		23,612
Other Assets:
Time deposits		4,754		4,754		0		4,754		0
Derivative assets *2		13,998		13,998		0		0		0
Reinsurance recoverables (Investment contracts)		29,989		30,400		0		0		30,400
Liabilities:
Short-term debt	¥	309,549	¥	309,549	¥	0	¥	309,549	¥	0
Deposits		1,782,198		1,782,753		0		1,782,753		0
Policy liabilities and Policy account balances (Investment contracts)		244,497		244,653		0		0		244,653
Long-term debt		4,186,222		4,199,341		0		1,158,287		3,041,054
Other Liabilities:
Derivative liabilities *2		24,461		24,461		0		0		0

*1 The amount of ¥12,100 million of investment funds measured at net asset value per share is not included.

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

December 31, 2019

	Millions of yen
	Carrying amount		Estimated fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	902,312	¥	902,312	¥	902,312	¥	0	¥	0
Restricted cash		118,297		118,297		118,297		0		0
Installment loans (net of allowance for probable loan losses)		3,571,075		3,575,442		0		212,528		3,362,914
Equity securities *1		417,433		417,433		73,334		277,917		66,182
Trading debt securities		1,371		1,371		0		1,371		0
Available-for-sale debt securities		1,576,349		1,576,349		22,381		1,453,002		100,966
Held-to-maturity debt securities		113,880		144,522		0		120,150		24,372
Other Assets:
Time deposits		4,250		4,250		0		4,250		0
Derivative assets *2		15,169		15,169		0		0		0
Reinsurance recoverables (Investment contracts)		9,019		9,272		0		0		9,272
Liabilities:
Short-term debt	¥	384,132	¥	384,132	¥	0	¥	384,132	¥	0
Deposits		2,053,762		2,053,439		0		2,053,439		0
Policy liabilities and Policy account balances (Investment contracts)		217,610		217,734		0		0		217,734
Long-term debt		4,119,179		4,144,011		0		1,105,707		3,038,304
Other Liabilities:
Derivative liabilities *2		50,674		50,674		0		0		0

*1 The amount of ¥11,878 million of investment funds measured at net asset value per share is not included.

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

XML

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	Dec. 31, 2019		Mar. 31, 2019
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	¥ 15,683		¥ 15,495
Derivative liabilities, Fair value	51,188		25,958
Interest rate swap agreements | Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Notional amount	504,636		498,874
Interest rate swap agreements | Derivatives designated as hedging instruments | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	158		11
Interest rate swap agreements | Derivatives designated as hedging instruments | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	24,703		17,320
Interest rate swap agreements | Nondesignated
Derivatives, Fair Value [Line Items]
Notional amount	7,183		60,657
Interest rate swap agreements | Nondesignated | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	9		127
Interest rate swap agreements | Nondesignated | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	65		119
Futures, foreign exchange contracts | Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Notional amount	509,650		505,909
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	25		1,888
Futures, foreign exchange contracts | Derivatives designated as hedging instruments | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	9,753		3,177
Futures, foreign exchange contracts | Nondesignated
Derivatives, Fair Value [Line Items]
Notional amount	323,990	[1]	320,710	[2]
Futures, foreign exchange contracts | Nondesignated | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	378	[1]	1,119	[2]
Futures, foreign exchange contracts | Nondesignated | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	4,742	[1]	2,159	[2]
Foreign currency swap agreements | Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Notional amount	66,422		65,575
Foreign currency swap agreements | Derivatives designated as hedging instruments | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	1,421		1,203
Foreign currency swap agreements | Derivatives designated as hedging instruments | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	965		364
Foreign currency long- term-debt | Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Notional amount	618,412		641,127
Foreign currency long- term-debt | Derivatives designated as hedging instruments | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	0		0
Foreign currency long- term-debt | Derivatives designated as hedging instruments | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	0		0
Options held/written and other | Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Notional amount	949
Options held/written and other | Derivatives designated as hedging instruments | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	5
Options held/written and other | Derivatives designated as hedging instruments | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	0
Options held/written and other | Nondesignated
Derivatives, Fair Value [Line Items]
Notional amount	490,428	[1]	556,668	[2]
Options held/written and other | Nondesignated | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value	13,687	[1]	11,140	[2]
Options held/written and other | Nondesignated | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value	¥ 10,960	[1]	2,809	[2]
Credit derivatives held/written | Nondesignated
Derivatives, Fair Value [Line Items]
Notional amount			262
Credit derivatives held/written | Nondesignated | Other assets
Derivatives, Fair Value [Line Items]
Derivative assets, Fair value			7
Credit derivatives held/written | Nondesignated | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, Fair value			¥ 10

[1] The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥0 million, futures contracts of ¥0 million and foreign exchange contracts of ¥0 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at December 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥0 million, ¥0 million and ¥0 million and derivative liabilities include fair value of the options written, the futures and foreign exchange contracts before offsetting of ¥0 million, ¥0 million and ¥0 million at December 31, 2019, respectively.

[2] The notional amounts of options held/written and other and futures, foreign exchange contracts in the above table include options held of ¥34,701 million, futures contracts of ¥37,359 million and foreign exchange contracts of ¥13,171 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2019, respectively. Derivative assets in the above table include fair value of the options held, futures contracts and foreign exchange contracts before offsetting of ¥206 million, ¥248 million and ¥30 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥258 million and ¥173 million at March 31, 2019, respectively.

XML

Investment in Securities - Additional Information (Detail) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019 JPY (¥) Investment	Dec. 31, 2018 JPY (¥)	Dec. 31, 2019 JPY (¥) Investment	Dec. 31, 2018 JPY (¥)	Mar. 31, 2019 JPY (¥) Investment
Schedule of Investments [Line Items]
Net unrealized holding gains (losses) on trading securities	¥ 22,522	¥ (7,547)	¥ 34,529	¥ (4,944)
Investment funds fair value	¥ 25,583		¥ 25,583		¥ 27,367
Number of investment securities in an unrealized loss position | Investment	390		390		199
Equity securities
Schedule of Investments [Line Items]
Investment funds fair value	¥ 5,997		¥ 5,997		¥ 5,811
Trading Debt Securities
Schedule of Investments [Line Items]
Net unrealized holding gains (losses) on trading debt securities	74	¥ (123)	7	¥ (102)
Available-for-sale securities | Foreign Government Bond Securities
Schedule of Investments [Line Items]
Investment funds fair value	790		790		420
Available-for-sale securities | Foreign Corporate Debt Securities
Schedule of Investments [Line Items]
Investment funds fair value	¥ 18,796		¥ 18,796		¥ 21,136

XML

Segment Information (Geographical Revenues and Income before Income Taxes) (Detail) - JPY (¥) ¥ in Millions		3 Months Ended		9 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total Revenues		¥ 571,701	¥ 534,141	¥ 1,684,379	¥ 1,796,155
Income before Income Taxes		121,829	74,223	350,458	295,168
Japan | Reportable Geographical Components
Segment Reporting Information [Line Items]
Total Revenues		446,798	408,515	1,314,414	1,433,808
Income before Income Taxes		78,153	47,354	219,836	201,496
The Americas | Reportable Geographical Components
Segment Reporting Information [Line Items]
Total Revenues	[1]	52,623	50,509	154,143	149,509
Income before Income Taxes	[1]	19,307	11,626	64,739	55,590
Other Countries | Reportable Geographical Components
Segment Reporting Information [Line Items]
Total Revenues	[2]	72,280	75,117	215,822	212,838
Income before Income Taxes	[2]	¥ 24,369	¥ 15,243	¥ 65,883	¥ 38,082

[1] Mainly the United States

[2] Mainly Asia, Europe, Australasia and the Middle East

XML

Leases - Lessee: Amounts of Lease Liabilities Due in Each of Next Five Years and Thereafter (Detail) ¥ in Millions	Dec. 31, 2019 JPY (¥)
Operating And Finance Lease Payments Due Abstract [Abstract]
Finance leases, 2020	¥ 487
Finance leases, 2021	484
Finance leases, 2022	482
Finance leases, 2023	477
Finance leases, 2024	473
Thereafter	963
Total lease payments	3,366
Less imputed interest	(452)
Total Lease Liability	2,914
Operating leases, 2020	45,643
Operating leases, 2021	32,221
Operating leases, 2022	28,155
Operating leases, 2023	25,500
Operating leases, 2024	21,481
Thereafter	138,354
Total lease payments	291,354
Less imputed interest	(20,261)
Total lease liabilities	¥ 271,093

XML

Credit Quality of Financing Receivables and the Allowance for Credit Losses (Information about Impaired Loans) (Detail) - JPY (¥) ¥ in Millions		Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		¥ 69,780	¥ 58,827	¥ 54,416
Unpaid Principal Balance		69,318	57,755
Related Allowance		11,254	13,731	12,787
Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		26,147	23,163	22,793
Unpaid Principal Balance		25,826	22,512
Related Allowance		3,528	3,372	3,349
Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		40,635	31,900
Unpaid Principal Balance		40,494	31,479
Related Allowance		6,238	8,442
Purchased loans
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment	[1]	2,998	3,764	4,176
Unpaid Principal Balance		2,998	3,764
Related Allowance	[1]	1,488	1,917	2,406
Consumer - Housing loans | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		5,983	4,434
Unpaid Principal Balance		5,965	4,181
Related Allowance		802	835
Consumer-Card loans | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		3,914	3,945
Unpaid Principal Balance		3,906	3,937
Related Allowance		625	633
Consumer - Other | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		16,250	14,784
Unpaid Principal Balance		15,955	14,394
Related Allowance		2,101	1,904
Non-recourse Loans | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		2,516	4,448	3,232
Related Allowance		229	166	¥ 47
Non-recourse Loans | Corporate borrowers | Japan
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment			232
Unpaid Principal Balance			232
Related Allowance			0
Non-recourse Loans | Corporate borrowers | The Americas
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		2,516	4,216
Unpaid Principal Balance		2,516	4,216
Related Allowance		229	166
Corporate Real Estate Companies Loans | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		15,182	2,380
Unpaid Principal Balance		15,169	2,367
Related Allowance		373	419
Other-Entertainment industry | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		484	1,382
Unpaid Principal Balance		483	1,374
Related Allowance		109	490
Other Corporate Loan | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		22,453	23,690
Unpaid Principal Balance		22,326	23,290
Related Allowance		5,527	7,367
Impaired Financing Receivables with No Related Allowance
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		30,813	17,593
Unpaid Principal Balance		30,811	17,521
Related Allowance		0	0
Impaired Financing Receivables with No Related Allowance | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		1,088	1,158
Unpaid Principal Balance		1,086	1,111
Related Allowance		0	0
Impaired Financing Receivables with No Related Allowance | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		29,616	16,329
Unpaid Principal Balance		29,616	16,304
Related Allowance		0	0
Impaired Financing Receivables with No Related Allowance | Purchased loans
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		109	106
Unpaid Principal Balance		109	106
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		682	589
Unpaid Principal Balance		680	542
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		406	569
Unpaid Principal Balance		406	569
Related Allowance		0	0
Impaired Financing Receivables with No Related Allowance | Non-recourse Loans | Consumer borrowers | The Americas
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		1,751
Unpaid Principal Balance		1,751
Related Allowance		0
Impaired Financing Receivables with No Related Allowance | Non-recourse Loans | Corporate borrowers | Japan
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment			232
Unpaid Principal Balance			232
Related Allowance			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		14,009	3,404
Unpaid Principal Balance		14,009	3,404
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		31	887
Unpaid Principal Balance		31	887
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		13,825	0
Unpaid Principal Balance		13,825	0
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			11,806
Unpaid Principal Balance			11,781
Related Allowance			0
Impaired Financing Receivables with Related Allowance
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		38,967	41,234
Unpaid Principal Balance		38,507	40,234
Related Allowance		11,254	13,731
Impaired Financing Receivables with Related Allowance | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		25,059	22,005
Unpaid Principal Balance		24,740	21,401
Related Allowance		3,528	3,372
Impaired Financing Receivables with Related Allowance | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		11,019	15,571
Unpaid Principal Balance		10,878	15,175
Related Allowance		6,238	8,442
Impaired Financing Receivables with Related Allowance | Purchased loans
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		2,889	3,658
Unpaid Principal Balance		2,889	3,658
Related Allowance		1,488	1,917
Impaired Financing Receivables with Related Allowance | Consumer - Housing loans | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		5,301	3,845
Unpaid Principal Balance		5,285	3,639
Related Allowance		802	835
Impaired Financing Receivables with Related Allowance | Consumer-Card loans | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		3,914	3,945
Unpaid Principal Balance		3,906	3,937
Related Allowance		625	633
Impaired Financing Receivables with Related Allowance | Consumer - Other | Consumer borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		15,844	14,215
Unpaid Principal Balance		15,549	13,825
Related Allowance		2,101	1,904
Impaired Financing Receivables with Related Allowance | Non-recourse Loans | Corporate borrowers | Japan
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment			0
Unpaid Principal Balance			0
Related Allowance			0
Impaired Financing Receivables with Related Allowance | Non-recourse Loans | Corporate borrowers | The Americas
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		765	812
Unpaid Principal Balance		765	812
Related Allowance		229	166
Impaired Financing Receivables with Related Allowance | Corporate Real Estate Companies Loans | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		453	1,493
Unpaid Principal Balance		452	1,480
Related Allowance		109	419
Impaired Financing Receivables with Related Allowance | Other-Entertainment industry | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		8,628	1,382
Unpaid Principal Balance		8,501	1,374
Related Allowance		5,527	490
Impaired Financing Receivables with Related Allowance | Other Corporate Loan | Corporate borrowers
Financing Receivable, Impaired [Line Items]
Loans Individually Evaluated for Impairment		1,173	11,884
Unpaid Principal Balance		1,160	11,509
Related Allowance		¥ 373	¥ 7,367

[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.

XML

Leases - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Schedule of Operating Leases [Line Items]
Gains on sales of operating lease assets		¥ 37,278	¥ 50,445
Operating lease contracts, non- cancelable lease terms		30 years
Operating Lease Assets Other than Real Estate
Schedule of Operating Leases [Line Items]
Gains on sales of operating lease assets	¥ 6,047	¥ 14,234
Real Estate Asset
Schedule of Operating Leases [Line Items]
Gains on sales of operating lease assets	¥ 4,636	¥ 23,044

XML

Leases - Lessor: Amounts of Remaining Lease Receivables of Net Investment in Leases and Opearting Lease Contracts Due in Each of Next Five Years and Thereafter (Detail) ¥ in Millions	Dec. 31, 2019 JPY (¥)
Operating leases
2020	¥ 289,678
2021	200,061
2022	138,467
2023	91,911
2024	55,608
Thereafter	149,596
Total lease payments	925,321
Net investment in leases
2020	455,576
2021	307,960
2022	205,011
2023	121,870
2024	68,358
Thereafter	86,125
Total lease payments	1,244,900
Less imputed interest	(136,289)
Total lease receivables	¥ 1,108,611

XML

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		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment	¥ 4,828	¥ 6,102	¥ 13,383	¥ 15,875
Post-modification outstanding recorded investment	4,050	4,973	11,131	12,877
Financing Receivables Modification, Subsequently Defaulted Recorded Investment	571	933	1,624	1,380
Consumer borrowers
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment	3,079	3,961	9,187	9,873
Post-modification outstanding recorded investment	2,301	2,832	6,935	6,876
Financing Receivables Modification, Subsequently Defaulted Recorded Investment	444	933	1,497	1,380
Consumer borrowers | Consumer - Housing loans
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment		10	16	61
Post-modification outstanding recorded investment		5	14	30
Consumer borrowers | Consumer-Card loans
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment	477	552	1,422	1,624
Post-modification outstanding recorded investment	364	363	1,052	1,055
Financing Receivables Modification, Subsequently Defaulted Recorded Investment	4	20	7	23
Consumer borrowers | Consumer - Other
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment	2,602	3,399	7,749	8,188
Post-modification outstanding recorded investment	1,937	2,464	5,869	5,791
Financing Receivables Modification, Subsequently Defaulted Recorded Investment	440	913	1,490	1,357
Corporate borrowers
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment	1,749	2,141	4,196	6,002
Post-modification outstanding recorded investment	1,749	2,141	4,196	6,001
Financing Receivables Modification, Subsequently Defaulted Recorded Investment	127		127
Corporate borrowers | Consumer - Other
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment	1,409
Post-modification outstanding recorded investment	1,409
Corporate borrowers | Other Corporate Loan
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment		2,141	3,856	6,002
Post-modification outstanding recorded investment		¥ 2,141	3,856	¥ 6,001
Financing Receivables Modification, Subsequently Defaulted Recorded Investment	127		¥ 127
Corporate borrowers | Non-recourse Loans | The Americas
Financing Receivable, Modifications [Line Items]
Pre-modification outstanding recorded investment	340				¥ 340
Post-modification outstanding recorded investment	¥ 340				¥ 340

XML

Life Insurance Operations - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Net Investment Income [Line Items]
Amortization of policy acquisition costs charged to income	¥ 4,707	¥ 4,580	¥ 13,839	¥ 13,238
Life insurance related investment income(loss)
Net Investment Income [Line Items]
Net unrealized holding losses on equity securities		¥ 43,010		¥ 23,189
Net unrealised holding gains on equity securitites	¥ 18,043		¥ 24,609

XML

Investment in Affiliates (Tables)

9 Months Ended

Dec. 31, 2019

Investments in and Advances to Affiliates [Abstract]

Summary of Investment in Affiliates

Investment in affiliates at March 31, 2019 and December 31, 2019 consists of the following:

	Millions of yen
	March 31, 2019		December 31, 2019
Shares	¥	789,638	¥	770,274
Loans and others		53,122		51,709
	¥	842,760	¥	821,983

XML

Selling, General and Administrative Expenses (Tables)

9 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Summary of Selling, General and Administrative Expenses

Selling, general and administrative expenses for the nine months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Personnel expenses	¥	183,872	¥	192,526
Selling expenses		56,892		53,759
Administrative expenses		75,783		86,033
Depreciation of office facilities		3,537		5,436
Total	¥	320,084	¥	337,754
Selling, general and administrative expenses for the three months ended December 31, 2018 and 2019 are as follows:
	Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Personnel expenses	¥	61,434	¥	66,736
Selling expenses		20,009		18,578
Administrative expenses		26,674		29,361
Depreciation of office facilities		1,321		1,888
Total	¥	109,438	¥	116,563

XML

ORIX Corporation Shareholders' Equity - Additional Information (Detail) - JPY (¥) ¥ in Millions	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Total dividends paid	¥ 58,962	¥ 49,984
Officer's Compensation Board Incentive Plan
Class of Stock [Line Items]
Total dividends paid	83	64
Effective Date [Member] | Officer's Compensation Board Incentive Plan
Class of Stock [Line Items]
Total dividends paid	¥ 62	¥ 55

XML

Accumulated Other Comprehensive Income (Loss) (Changes in Components of Accumulated Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Beginning Balance	¥ 3,027,716	¥ 2,929,899	¥ 2,953,201	¥ 2,798,874
Adjusted balance				2,803,405
Total other comprehensive income (loss)	19,639	(20,311)	(18,240)	(6,720)
Ending Balance	3,079,707	2,883,350	3,079,707	2,883,350
Accounting Standards Update 2016-01
Cumulative effect of adopting Accounting Standards Update				0
AOCI Attributable to Parent
Beginning Balance	(97,128)	(35,696)	(61,343)	(45,566)
Adjusted balance				(48,465)
Total other comprehensive income (loss)	19,639	(20,311)	(18,240)	(6,720)
Transaction with noncontrolling interests		(39)		(40)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests	272	(407)	(1,547)	(88)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests	145	(176)	(130)	326
Ending Balance	(77,906)	(55,463)	(77,906)	(55,463)
AOCI Attributable to Parent | Accounting Standards Update 2016-01
Cumulative effect of adopting Accounting Standards Update				(2,899)
Net unrealized gains (losses) on investment in securities
Beginning Balance	22,300	5,609	17,389	10,465
Adjusted balance				7,215
Net unrealized gains (losses)	(2,838)	(391)	5,472	497
Reclassification adjustment included in net income, net of tax	(789)	162	(4,195)	(2,332)
Total other comprehensive income (loss)	(3,627)	(229)	1,277	(1,835)
Transaction with noncontrolling interests		0		0
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests	1	0	(6)	0
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests	0	0	0	0
Ending Balance	18,672	5,380	18,672	5,380
Net unrealized gains (losses) on investment in securities | Accounting Standards Update 2016-01
Cumulative effect of adopting Accounting Standards Update				(3,250)
Debt Valuation Adjustments
Beginning Balance	786	270	582	0
Adjusted balance				351
Net unrealized gains (losses)	(54)	391	168	322
Reclassification adjustment included in net income, net of tax	(14)	(7)	(32)	(19)
Total other comprehensive income (loss)	(68)	384	136	303
Transaction with noncontrolling interests		0		0
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests	0	0	0	0
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests	0	0	0	0
Ending Balance	718	654	718	654
Debt Valuation Adjustments | Accounting Standards Update 2016-01
Cumulative effect of adopting Accounting Standards Update				351
Defined benefit pension plans
Beginning Balance	(27,116)	(20,688)	(27,902)	(20,487)
Adjusted balance				(20,487)
Net unrealized gains (losses)	(406)	232	129	85
Reclassification adjustment included in net income, net of tax	112	(26)	363	(80)
Total other comprehensive income (loss)	(294)	206	492	5
Transaction with noncontrolling interests		(50)		(52)
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests	(1)	3	(1)	1
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests	0	0	0	0
Ending Balance	(27,409)	(20,535)	(27,409)	(20,535)
Defined benefit pension plans | Accounting Standards Update 2016-01
Cumulative effect of adopting Accounting Standards Update				0
Foreign currency translation adjustments
Beginning Balance	(79,587)	(17,802)	(43,558)	(31,806)
Adjusted balance				(31,806)
Net unrealized gains (losses)	20,802	(19,918)	(18,801)	(5,130)
Reclassification adjustment included in net income, net of tax	658	0	2,216	1
Total other comprehensive income (loss)	21,460	(19,918)	(16,585)	(5,129)
Transaction with noncontrolling interests		11		12
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests	200	(386)	(1,541)	(102)
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests	145	(176)	(130)	326
Ending Balance	(58,472)	(37,147)	(58,472)	(37,147)
Foreign currency translation adjustments | Accounting Standards Update 2016-01
Cumulative effect of adopting Accounting Standards Update				0
Net unrealized gains (losses) on derivative instruments
Beginning Balance	(13,511)	(3,085)	(7,854)	(3,738)
Adjusted balance				(3,738)
Net unrealized gains (losses)	1,877	(487)	(4,444)	(526)
Reclassification adjustment included in net income, net of tax	291	(267)	884	462
Total other comprehensive income (loss)	2,168	(754)	(3,560)	(64)
Transaction with noncontrolling interests		0		0
Less: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests	72	(24)	1	13
Less: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests	0	0	0	0
Ending Balance	¥ (11,415)	¥ (3,815)	¥ (11,415)	(3,815)
Net unrealized gains (losses) on derivative instruments | Accounting Standards Update 2016-01
Cumulative effect of adopting Accounting Standards Update				¥ 0

XML

Transfer of Financial Assets - Roll-Forwards of Amount of Servicing Assets (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Transfers and Servicing [Abstract]
Beginning balance	¥ 32,364	¥ 31,068	¥ 31,572	¥ 28,756
Increase mainly from loans sold with servicing retained	2,253	2,038	6,354	4,696
Decrease mainly from amortization	(1,339)	(1,193)	(3,764)	(3,526)
Increase (Decrease) from the effects of changes in foreign exchange rates	496	(717)	(388)	1,270
Ending balance	¥ 33,774	¥ 31,196	¥ 33,774	¥ 31,196

XML

Acquisitions and Divestitures - Additional Information (Detail) - JPY (¥)	3 Months Ended			9 Months Ended
	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Business Acquisition [Line Items]
Acquisitions consideration, cost of acquired entity paid in cash				¥ 0	¥ 0
Bargain Purchase Gain		¥ 1,022,000,000		1,022,000,000	0
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net	¥ 25,200,000,000		¥ 1,438,000,000	58,488,000,000	20,470,000,000
Property under Facility Operations	524,692,000,000			524,692,000,000		¥ 441,632,000,000
Other Liabilities	909,212,000,000			909,212,000,000		¥ 617,746,000,000
Divestiture
Business Acquisition [Line Items]
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net	25,200,000,000		1,438,000,000	58,488,000,000	20,470,000,000
Divestiture | Overseas Business Segment
Business Acquisition [Line Items]
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net	8,954,000,000		218,000,000	24,202,000,000	18,688,000,000
Divestiture | Investment and Operation Segment
Business Acquisition [Line Items]
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net	16,072,000,000			18,007,000,000	556,000,000
Divestiture | Real Estate Segment
Business Acquisition [Line Items]
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net				16,216,000,000
Property under Facility Operations	42,595,000,000			42,595,000,000
Other Liabilities	¥ 23,078,000,000			¥ 23,078,000,000
Divestiture | Maintenance Leasing Segment
Business Acquisition [Line Items]
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net			¥ 1,220,000,000		¥ 1,220,000,000

XML

Fair Value Measurements - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items]
Transferred from level 2 to level 3	¥ 0
Transferred from level 3 to level 2	¥ 0
Japanese prefectural and foreign municipal bond securities
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items]
Transferred from level 2 to level 3				¥ 3,305
Japanese prefectural and foreign municipal bond securities | Available-for-sale securities
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items]
Transferred from level 2 to level 3		¥ 3,305
Corporate debt securities
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items]
Transferred from level 3 to level 2			¥ 2,991
CMBS and RMBS in the Americas
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items]
Transferred from level 3 to level 2				¥ 23,406
CMBS and RMBS in the Americas | Available-for-sale securities
Fair Value Asset And Liabilities Measured On Recurring Basis [Line Items]
Transferred from level 3 to level 2		¥ 23,406

XML

Investment in Securities (Information about Available-for-Sale and Held-to-Maturity Securities with Gross Unrealized Losses and Length of Time that Individual Securities Have Been in Continuous Unrealized Loss Position) (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Japanese and foreign government bond securities
Investments, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Less than 12 months Fair value		¥ 51,551
Available-for-sale Securities, Less than 12 months Gross unrealized losses		(1,119)
Available-for-sale Securities, 12 months or more Fair value		98,830
Available-for-sale Securities, 12 months or more Gross unrealized losses		(4,381)
Available-for-sale Securities, Total Fair value		150,381
Available-for-sale Securities, Total Gross unrealized losses		(5,500)
Available-for-sale debt Securities, Less than 12 months Fair value	¥ 86,920
Available-for-sale debt Securities, Less than 12 months Gross unrealized losses	(2,228)
Available-for-sale debt Securities, 12 months or more Fair value	153,775
Available-for-sale debt Securities, 12 months or more Gross unrealized losses	(6,927)
Available-for-sale debt Securities, Total Fair value	240,695
Available-for-sale debt Securities, Total Gross unrealized losses	(9,155)
Japanese prefectural and foreign municipal bond securities
Investments, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Less than 12 months Fair value		1,329
Available-for-sale Securities, Less than 12 months Gross unrealized losses		(35)
Available-for-sale Securities, 12 months or more Fair value		4,510
Available-for-sale Securities, 12 months or more Gross unrealized losses		(201)
Available-for-sale Securities, Total Fair value		5,839
Available-for-sale Securities, Total Gross unrealized losses		(236)
Available-for-sale debt Securities, Less than 12 months Fair value	71,088
Available-for-sale debt Securities, Less than 12 months Gross unrealized losses	(623)
Available-for-sale debt Securities, 12 months or more Fair value	220
Available-for-sale debt Securities, 12 months or more Gross unrealized losses	(1)
Available-for-sale debt Securities, Total Fair value	71,308
Available-for-sale debt Securities, Total Gross unrealized losses	(624)
Corporate debt securities
Investments, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Less than 12 months Fair value		9,156
Available-for-sale Securities, Less than 12 months Gross unrealized losses		(18)
Available-for-sale Securities, 12 months or more Fair value		68,924
Available-for-sale Securities, 12 months or more Gross unrealized losses		(2,346)
Available-for-sale Securities, Total Fair value		78,080
Available-for-sale Securities, Total Gross unrealized losses		(2,364)
Available-for-sale debt Securities, Less than 12 months Fair value	152,919
Available-for-sale debt Securities, Less than 12 months Gross unrealized losses	(1,351)
Available-for-sale debt Securities, 12 months or more Fair value	23,731
Available-for-sale debt Securities, 12 months or more Gross unrealized losses	(1,934)
Available-for-sale debt Securities, Total Fair value	176,650
Available-for-sale debt Securities, Total Gross unrealized losses	(3,285)
CMBS and RMBS in the Americas
Investments, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Less than 12 months Fair value		10,194
Available-for-sale Securities, Less than 12 months Gross unrealized losses		(362)
Available-for-sale Securities, 12 months or more Fair value		7,147
Available-for-sale Securities, 12 months or more Gross unrealized losses		(679)
Available-for-sale Securities, Total Fair value		17,341
Available-for-sale Securities, Total Gross unrealized losses		(1,041)
Available-for-sale debt Securities, Less than 12 months Fair value	8,700
Available-for-sale debt Securities, Less than 12 months Gross unrealized losses	(273)
Available-for-sale debt Securities, 12 months or more Fair value	8,715
Available-for-sale debt Securities, 12 months or more Gross unrealized losses	(1,067)
Available-for-sale debt Securities, Total Fair value	17,415
Available-for-sale debt Securities, Total Gross unrealized losses	(1,340)
Other asset-backed securities and debt securities
Investments, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Less than 12 months Fair value		10,253
Available-for-sale Securities, Less than 12 months Gross unrealized losses		(411)
Available-for-sale Securities, 12 months or more Fair value		28,748
Available-for-sale Securities, 12 months or more Gross unrealized losses		(978)
Available-for-sale Securities, Total Fair value		39,001
Available-for-sale Securities, Total Gross unrealized losses		(1,389)
Available-for-sale debt Securities, Less than 12 months Fair value	13,573
Available-for-sale debt Securities, Less than 12 months Gross unrealized losses	(254)
Available-for-sale debt Securities, 12 months or more Fair value	26,723
Available-for-sale debt Securities, 12 months or more Gross unrealized losses	(1,344)
Available-for-sale debt Securities, Total Fair value	40,296
Available-for-sale debt Securities, Total Gross unrealized losses	(1,598)
Equity securities
Investments, Unrealized Loss Position [Line Items]
Available-for-sale Securities, Less than 12 months Fair value		82,483
Available-for-sale Securities, Less than 12 months Gross unrealized losses		(1,945)
Available-for-sale Securities, 12 months or more Fair value		208,159
Available-for-sale Securities, 12 months or more Gross unrealized losses		(8,585)
Available-for-sale Securities, Total Fair value		290,642
Available-for-sale Securities, Total Gross unrealized losses		¥ (10,530)
Available-for-sale debt Securities, Less than 12 months Fair value	333,200
Available-for-sale debt Securities, Less than 12 months Gross unrealized losses	(4,729)
Available-for-sale debt Securities, 12 months or more Fair value	213,164
Available-for-sale debt Securities, 12 months or more Gross unrealized losses	(11,273)
Available-for-sale debt Securities, Total Fair value	546,364
Available-for-sale debt Securities, Total Gross unrealized losses	¥ (16,002)

XML

Leases - Lessor: Lease Income (Detail) - JPY (¥) ¥ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Lease income—net investment in leases
Interest Income	¥ 14,020	¥ 41,028
Other	511	1,601
Lease Income--Operating Leases	100,743	303,148
Total lease income	¥ 115,274	¥ 345,777

XML

Derivative Financial Instruments and Hedging (Derivative instruments fair value hedge assets and liabilities) (Parenthetical) (Detail) ¥ in Millions	Dec. 31, 2019 JPY (¥)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Accumulated fair value hedge adjustments assets	¥ 1,921

XML

Investment in Affiliates (Summary of Investment in Affiliates) (Detail) - JPY (¥) ¥ in Millions	Dec. 31, 2019	Mar. 31, 2019
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Shares	¥ 770,274	¥ 789,638
Loans and others	51,709	53,122
Investment in Affiliates	¥ 821,983	¥ 842,760

XML

Commitments, Guarantees, and Contingent Liabilities - Additional Information (Detail) - JPY (¥) ¥ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Commitments and Contingencies Disclosure [Line Items]
Commitments for purchase of equipment to be leased at cost			¥ 30		¥ 210
Cancelable fixed term maximum lease commitment due, through 2024					57,388
Cancelable fixed term maximum lease commitment due, thereafter					64,222
Rental payments made under cancelable operating lease agreements					17,564
Payments for computer systems under non-cancelable contracts	¥ 1,787	¥ 1,673	5,301	¥ 4,266
Estimated construction costs	81,982		81,982		121,647
Total unused credit and capital amount available	398,065		398,065		375,238
Guarantee Obligations Maximum Exposure	1,047,216		1,047,216		1,059,899
Guarantee Obligations Current Carrying Value	54,373		54,373		55,245
Outstanding principal amount of loans transferred under Delegated Underwriting and Servicing program	620,718		620,718		593,062
Investment in securities pledged for primarily collateral deposits	80,267		80,267		33,280
Secured debt	56,320		56,320		49,125
Investments In Subsidaries Pledged	10,794		10,794
Secured By Share
Commitments and Contingencies Disclosure [Line Items]
Secured debt	51,308		51,308		46,029
Corporate Loans
Commitments and Contingencies Disclosure [Line Items]
Guarantee Obligations Maximum Exposure	498,541		498,541		500,499
Guarantee Obligations Current Carrying Value	6,045		6,045		6,707
Performance Guarantee | Corporate Loans
Commitments and Contingencies Disclosure [Line Items]
Guarantee Obligations Maximum Exposure	1,099,000		1,099,000		1,089,000
Guarantee Obligations Current Carrying Value	¥ 2,518		¥ 2,518		¥ 2,559

XML

Per Share Data

9 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Per Share Data

19. Per Share Data

Reconciliation of the differences between basic and diluted earnings per share (EPS) in the nine and three months ended December 31, 2018 and 2019 is as follows:

During the nine and three months ended December 31, 2018 and 2019, there were no stock compensation which were antidilutive.

	Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Net Income attributable to ORIX Corporation shareholders	¥	236,207	¥	244,319
	Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Net Income attributable to ORIX Corporation shareholders	¥	81,157	¥	85,169
	Thousands of Shares
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Weighted-average shares		1,280,038		1,279,196
Effect of dilutive securities—
Stock compensation		1,083		1,138
Weighted-average shares for diluted EPS computation		1,281,121		1,280,334
	Thousands of Shares
	Three months ended December 31, 2018		Three months ended December 31, 2019
Weighted-average shares		1,279,962		1,278,048
Effect of dilutive securities—
Stock compensation		1,040		1,245
Weighted-average shares for diluted EPS computation		1,281,002		1,279,293
	Yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Earnings per share for net income attributable to ORIX Corporation shareholders:
Basic	¥	184.53	¥	190.99
Diluted	¥	184.38	¥	190.82
	Yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Earnings per share for net income attributable to ORIX Corporation shareholders:
Basic	¥	63.41	¥	66.64
Diluted	¥	63.35	¥	66.58

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. (1,715,210 and 1,813,193 shares for the nine months ended December 31, 2018 and 2019, 1,823,993 and 1,796,993 shares for the three months ended December 31, 2018 and 2019)

XML

Selling, General and Administrative Expenses

9 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Selling, General and Administrative Expenses

15. Selling, General and Administrative Expenses

Selling, general and administrative expenses for the nine months ended December 31, 2018 and 2019 are as follows:

	Millions of yen
	Nine months ended December 31, 2018		Nine months ended December 31, 2019
Personnel expenses	¥	183,872	¥	192,526
Selling expenses		56,892		53,759
Administrative expenses		75,783		86,033
Depreciation of office facilities		3,537		5,436
Total	¥	320,084	¥	337,754
Selling, general and administrative expenses for the three months ended December 31, 2018 and 2019 are as follows:
	Millions of yen
	Three months ended December 31, 2018		Three months ended December 31, 2019
Personnel expenses	¥	61,434	¥	66,736
Selling expenses		20,009		18,578
Administrative expenses		26,674		29,361
Depreciation of office facilities		1,321		1,888
Total	¥	109,438	¥	116,563