Fair Value Measurements (Tables)

12 Months Ended

Mar. 31, 2020

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 2020:

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 securities45		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

March 31, 2020


	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	¥	90,893		¥	0	¥	90,893	¥	0
Trading debt securities		7,431			0		7,431		0
Available-for-sale debt securities:		1,631,185			21,490		1,521,342		88,353
Japanese and foreign government bond securities*2		653,945			3,301		650,644		0
Japanese prefectural and foreign municipal bond securities		250,355			0		247,523		2,832
Corporate debt securities*3		596,477			18,189		574,294		3,994
CMBS and RMBS in the Americas		48,672			0		48,672		0
Other asset-backed securities and debt securities		81,736			0		209		81,527
Equity securities45		375,174			58,400		232,873		83,901
Derivative assets:		39,690			202		20,258		19,230
Options held/written and other		21,346			0		2,116		19,230
Futures, foreign exchange contracts		13,265			202		13,063		0
Foreign currency swap agreements		5,079			0		5,079		0
Netting*6		(9,152	)		0		0		0
Net derivative assets		30,538			0		0		0
Other assets:		18,206			0		0		18,206
Reinsurance recoverables*7		18,206			0		0		18,206

Total	¥	2,162,579		¥	80,092	¥	1,872,797	¥	209,690

Liabilities:
Derivative liabilities:	¥	73,649		¥	2,471	¥	71,178	¥	0
Interest rate swap agreements		44,002			0		44,002		0
Options held/written and other		20,004			0		20,004		0
Futures, foreign exchange contracts		9,506			2,471		7,035		0
Foreign currency swap agreements		137			0		137		0
Netting*6		(9,152	)		0		0		0
Net derivative Liabilities		64,497			0		0		0
Policy Liabilities and Policy Account Balances:		300,739			0		0		300,739
Variable annuity and variable life insurance contracts*8		300,739			0		0		300,739

Total	¥	374,388		¥	2,471	¥	71,178	¥	300,739

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

663 million, gains of ¥401 million and ¥5,220

million from the change in the fair value of the loans for fiscal 2018, 2019 and 2020,

respectively. No gains or losses were recognized in earnings during fiscal 2018, 2019 and 2020 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 March 31, 2020, were ¥84,906 million and ¥90,893 million, respectively, and the amount of the aggregate fair value exceeded the amount of aggregate unpaid principal balance by ¥5,987 million. As of March 31, 2019 and 2020, there were no loans that are 90 days or more past due or, in

non-accrual

status.

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 ¥12 million, ¥19 million and ¥8 million from the change in the fair value of those investments for fiscal 2018, 2019 and 2020, respectively. The amounts of aggregate fair value elected the fair value option were ¥420 million and ¥780 million as of March 31, 2019 and 2020, respectively.

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 ¥181 million, gains of ¥784 million and ¥210 million from the change in the fair value of those investments for fiscal 2018, 2019 and 2020, respectively. The amounts of aggregate fair value elected the fair value option were ¥21,136 million and ¥18,189 million as of March 31, 2019 and 2020, respectively.

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 ¥1,456 million, ¥1,141 million and ¥1,225 million from the change in the fair value of those investments for fiscal 2018, 2019 and 2020, respectively. The amounts of aggregate fair value elected the fair value option were ¥5,811 million and ¥6,326 million as of March 31, 2019 and 2020, 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 ¥11,631 million as of March 31, 2019 and 2020, respectively.

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

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 ¥18,206 million as of March 31, 2019 and 2020, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings for fiscal 2018, 2019 and 2020, see Note 26 “Life Insurance Operations.”

Certain subsidiaries elected the fair value option for the entire variable annuity and variable life insurance contracts held

The fair value of the variable annuity and variable life insurance contracts elected for the fair value option in policy liabilities and policy account balances were ¥360,198 million and ¥300,739 million as of March 31, 2019 and 2020, respectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings for fiscal 2018, 2019 and 2020, see Note 26 “Life Insurance Operations.”

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

The following tables present the reconciliation of financial assets and liabilities (net) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in fiscal 2018, 2019 and 2020:

2018


	Millions of yen
	Balance at April 1, 2017		Gains or losses (realized/unrealized)									Purchases*3		Sales			Settlements*4			Transfers in and/ or out of Level 3 (net)		Balance at March 31, 2018		Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, 2018*1
	Balance at April 1, 2017		Included in earnings*1			Included in other comprehensive income*2			Total			Purchases*3		Sales			Settlements*4			Transfers in and/ or out of Level 3 (net)		Balance at March 31, 2018

Available-for-sale securities	¥	124,516	¥	3,690		¥	(5,717	)	¥	(2,027	)	¥	79,925	¥	(37,942	)	¥	(43,555	)	¥	0	¥	120,917	¥	(35	)
Corporate debt securities		1,618		0			2			2			2,050		0			(633	)		0		3,037		0
CMBS and RMBS in the Americas		57,858		1,664			(3,248	)		(1,584	)		1,858		(3,347	)		(18,775	)		0		36,010		(97	)
Other asset-backed securities and debt securities		65,040		2,026			(2,471	)		(445	)		76,017		(34,595	)		(24,147	)		0		81,870		62
Other securities		27,801		4,169			(1,976	)		2,193			26,991		(19,106	)		0			0		37,879		4,274
Investment funds		27,801		4,169			(1,976	)		2,193			26,991		(19,106	)		0			0		37,879		4,274
Derivative assets and liabilities (net)		5,233		(3,356	)		0			(3,356	)		2,024		0			(1,610	)		0		2,291		(3,356	)
Options held/written and other		5,233		(3,356	)		0			(3,356	)		2,024		0			(1,610	)		0		2,291		(3,356	)
Other asset		22,116		(11,191	)		0			(11,191	)		5,385		0			(1,302	)		0		15,008		(11,191	)
Reinsurance recoverables*5		22,116		(11,191	)		0			(11,191	)		5,385		0			(1,302	)		0		15,008		(11,191	)
Policy Liabilities and Policy Account Balances		605,520		(19,265	)		0			(19,265	)		0		0			(180,775	)		0		444,010		(19,265	)
Variable annuity and variable life insurance contracts*6		605,520		(19,265	)		0			(19,265	)		0		0			(180,775	)		0		444,010		(19,265	)

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

Unrealized gains and losses from available-for-sale securities are included in “Net change of unrealized gains (losses) on investment in securities” and “Net change of foreign currency translation adjustments.” Additionally, unrealized gains and losses from other securities are included mainly in “Net change of foreign currency translation adjustments.”

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

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

*5	“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.”

“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.


	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 March 31, 2019		Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, 2019*1
	Balance at April 1, 2018		Included in earnings*1			Included in other comprehensive income*2		Total			Purchases*3		Sales			Settlements*4			Transfers in and/ or out of Level 3 (net)			Balance at March 31, 2019

Available-for-sale debt securities	¥	120,917	¥	1,912		¥	2,020	¥	3,932		¥	44,163	¥	(23,241	)	¥	(27,221	)	¥	(18,103	)	¥	100,447	¥	268
Japanese prefectural and foreign municipal bond securities		0		(553	)		136		(417	)		0		0			0			3,305			2,888		0
Corporate debt securities		3,037		0			4		4			3,100		0			(981	)		1,998			7,158		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		1,431			1,334		2,765			39,759		(16,530	)		(17,463	)		0			90,401		268
Equity securities		37,879		4,443			578		5,021			37,871		(1,080	)		(18,498	)		0			61,193		4,192
Investment funds		37,879		4,443			578		5,021			37,871		(1,080	)		(18,498	)		0			61,193		4,192
Derivative assets and liabilities (net)		2,291		2,981			0		2,981			0		0			0			0			5,272		2,981
Options held/written and other		2,291		2,981			0		2,981			0		0			0			0			5,272		2,981
Other asset		15,008		(5,483	)		0		(5,483	)		3,572		0			(648	)		0			12,449		(5,483	)
Reinsurance recoverables*5		15,008		(5,483	)		0		(5,483	)		3,572		0			(648	)		0			12,449		(5,483	)
Policy Liabilities and Policy Account Balances		444,010		7,874			321		8,195			0		0			(75,617	)		0			360,198		7,874
Variable annuity and variable life insurance contracts*6		444,010		7,874			321		8,195			0		0			(75,617	)		0			360,198		7,874


	Millions of yen
																								Change in unrealized gains or losses included in earnings for assets and liabilities still held at March 31, 2020*1
	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 March 31, 2020
	Balance at April 1, 2019		Included in earnings *1		Included in other comprehensive income*2			Total			Purchases*3		Sales			Settlements*4			Transfers in and/ or out of Level 3 (net)			Balance at March 31, 2020
Available-for-sale debt securities	¥	100,447	¥	1,291	¥	(13,721	)	¥	(12,430	)	¥	41,270	¥	(3,925	)	¥	(34,018	)	¥	(2,991	)	¥	88,353	¥	131
Japanese prefectural and foreign municipal bond securities		2,888		0		(56	)		(56	)		0		0			0			0			2,832		0
Corporate debt securities		7,158		0		(8	)		(8	)		900		0			(1,065	)		(2,991	)		3,994		0
Other asset-backed securities and debt securities		90,401		1,291		(13,657	)		(12,366	)		40,370		(3,925	)		(32,953	)		0			81,527		131
Equity securities		61,193		8,197		(1,641	)		6,556			31,725		(10,108	)		(5,465	)		0			83,901		8,033
Investment funds		61,193		8,197		(1,641	)		6,556			31,725		(10,108	)		(5,465	)		0			83,901		8,033
Derivative assets and liabilities (net)		5,272		10,402		(192	)		10,210			3,748		0			0			0			19,230		10,402
Options held/written and other		5,272		10,402		(192	)		10,210			3,748		0			0			0			19,230		10,402
Other asset		12,449		2,937		0			2,937			3,053		0			(233	)		0			18,206		2,937
Reinsurance recoverables*5		12,449		2,937		0			2,937			3,053		0			(233	)		0			18,206		2,937
Policy Liabilities and Policy Account Balances		360,198		4,802		1,215			6,017			0		0			(53,442	)		0			300,739		4,802
Variable annuity and variable life insurance contracts*6		360,198		4,802		1,215			6,017			0		0			(53,442	)		0			300,739		4,802

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” respectively. Additionally, for

available-for-sale

debt securities, amortization of interest recognized in finance revenues is included in these columns.

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.”

There were no transfers in or out of Level 3 in fiscal 2018.

In fiscal 2019, 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 fiscal 2020, corporate debt securities totaling ¥2,991 million were transferred from Level 3 to Level 2, since the inputs became observable.

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

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

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

2020
	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	¥	4,823	¥	0	¥	0	¥	4,823
Real estate collateral-dependent loans (net of allowance for probable loan losses)		12,557		0		0		12,557
Investment in operating leases and property under facility operations		5,731		0		1,193		4,538
Certain investments in affiliates		11,213		8,741		0		2,472

	¥	34,324	¥	8,741	¥	1,193	¥	24,390

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 2020.

March 31, 2019

Millions of
yen

Valuation technique(s)

Significant

unobservable inputs

Range

(Weighted average)

Fair value

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

March 31, 2020

Millions of
yen

Valuation technique(s)

Significant

unobservable inputs

Range

(Weighted average)

Fair value

Assets:

Available-for-sale

debt securities:

Japanese prefectural and foreign municipal bond securities

2,832

Discounted cash flows

Discount rate

8.5%

(8.5%)

Corporate debt securities

1,995

Discounted cash flows

Discount rate

0.4% – 2.5%

(0.8%)

1,999

Appraisals/Broker quotes

—

Other asset-backed securities and debt securities

20,582

Discounted cash flows

Discount rate

1.0% – 51.2%

(12.1%)

Probability of default

1.9%

(1.9%)

60,945

Appraisals/Broker quotes

—

Equity securities:

Investment funds

5,714

Internal cash flows

Discount rate

0.0%

(0.0%)

54,898

Discounted cash flows

WACC

7.6% – 19.1%

(16.5%)

EV/Terminal EBITDA multiple

7.0x – 11.9x

(

9.3x

)

Market multiples

EV/Last twelve months EBITDA

multiple

7.5x – 11.8x

(

9.4x

)

EV/Forward EBITDA

multiple

6.5x – 10.3x

(8.4x)

EV/Precedent transaction last twelve months EBITDA multiple

7.5x – 12.1x

(9.5x)

23,289

Appraisals/Broker quotes

—

Derivative assets:

Options held/written and other

19,170

Discounted cash flows

Discount rate

12.0% – 33.0%

(14.4%)

Appraisals/Broker quotes

—

Other assets:

Reinsurance recoverables

18,206

Discounted cash flows

Discount rate

(0.2)% – 0.6%

(0.2%)

Mortality rate

0.0% – 100.0%

(1.4%)

Lapse rate

1.5% – 14.0%

(7.1%)

Annuitization rate

(guaranteed minimum annuity benefit)

0.0% – 100.0%

(100.0%)

Total

209,690

Liabilities:

Policy liabilities and Policy Account Balances:

Variable annuity and variable life insurance contracts

300,739

Discounted cash flows

Discount rate

(0.2)% – 0.6%

(0.2%)

Mortality rate

0.0% – 100.0%

(1.3%)

Lapse rate

1.5% – 30.0%

(6.9%)

Annuitization rate

(guaranteed minimum annuity benefit)

0.0% – 100.0%

(80.9%)

Total

¥300,739

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

The following tables provide information about the valuation techniques and significant unobservable inputs used in the valuation of Level 3 assets measured at fair value on a nonrecurring basis during fiscal 2019 and 2020.


	2019
	Millions of yen				Significant unobservable inputs		Range (Weighted average)
	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


	2020
	Millions of yen				Significant unobservable inputs		Range (Weighted average)
	Fair value		Valuation technique(s)		Significant unobservable inputs		Range (Weighted average)
Assets:
Loans held for sale	¥	4,823		Discounted cash flows		Discount rate		5.7% – 7.7%
								(6.8)%
Real estate collateral-dependent loans (net of allowance for probable loan losses)		12,557		Direct capitalization		Capitalization rate		5.6% – 7.0%
								((6.0%)
				Appraisals		—		—
Investment in operating leases and property under facility operations		302		Direct capitalization		Capitalization rate		4.3%
								(4.3)%
				Discounted cash flows		Discount rate		4.1%
								(4.1)%
		4,236		Appraisals		—		—
Certain investments in affiliates		359		Discounted cash flows		WACC		14.0%
								(14.0%)
				Market multiples		EV/Precedent transaction last twelve months EBITDA multiple		7.0x (7.0x)
						EV/Precedent transaction three year average EBITDA multiple		7.0x (7.0x)
		2,113		Appraisals		—		—

	¥	24,390