Amount recognized in accumulated other comprehensive income (loss),

pre-tax,

at March 31, 2021 and 2022 consisted of:


	Millions of yen
	Japanese plans						Overseas plans
	2021			2022			2021			2022
Net prior service credit	¥	(35	)	¥	266		¥	1,277		¥	746
Net actuarial loss		(17,119	)		(12,912	)		(15,344	)		(1,432	)
Net transition obligation		0			0			1			3

Total recognized in accumulated other comprehensive loss, pre-tax	¥	(17,154	)	¥	(12,646	)	¥	(14,066	)	¥	(683	)

The accumulated benefit obligations for all Japanese defined benefit pension plans were ¥102,148 million and ¥99,161 million, respectively, at March 31, 2021 and 2022. The accumulated benefit obligations for all overseas defined benefit pension plans were ¥121,459 million and ¥114,930 million, respectively, at March 31, 2021 and 2022.

The accumulated benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets at March 31, 2021 and 2022 are as follows:


	Millions of yen
	Japanese plans				Overseas plans
	2021		2022		2021		2022
Accumulated benefit obligations	¥	14,396	¥	13,386	¥	115,518	¥	7,407
Fair value of plan assets		0		0		113,748		5,842

The projected benefit obligations and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets at March 31, 2021 and 2022 are as follows:


Millions of yen
Japanese plans		Overseas plans
2021	2022	2021	2022


Projected benefit obligations	¥	15,104	¥	13,811	¥	123,155	¥	8,484
Fair value of plan assets		0		0		114,412		6,834

Net pension cost of the plans for fiscal 2020, 2021 and 2022 consists of the following:


	Millions of yen
	2020			2021			2022
Japanese plans:
Service cost	¥	5,879		¥	5,831		¥	6,058
Interest cost		585			698			791
Expected return on plan assets		(2,806	)		(2,427	)		(2,663	)
Amortization of prior service credit		(820	)		(178	)		(66	)
Amortization of net actuarial loss		1,156			1,320			412

Net periodic pension cost	¥	3,994		¥	5,244		¥	4,532

Overseas plans:
Service cost	¥	3,566		¥	3,288		¥	3,947
Interest cost		1,634			1,711			1,329
Expected return on plan assets		(4,262	)		(3,618	)		(4,192	)
Amortization of prior service credit		(208	)		(269	)		(320	)
Amortization of net actuarial loss		739			313			500
Amortization of transition obligation		1			1			1

Net periodic pension cost	¥	1,470		¥	1,426		¥	1,265


Note:		Net periodic pension cost is charged in personnel expenses, which is included in selling, general and administrative expenses in the consolidated statements of income.

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for fiscal 2020, 2021 and 2022 are summarized as follows:


	Millions of yen
	2020			2021			2022
Japanese plans:
Current year actuarial gain (loss)	¥	(1,629	)	¥	10,424		¥	3,795
Amortization of net actuarial loss		1,156			1,320			412
Prior service credit due to amendments		0			(402	)		367
Amortization of prior service credit		(820	)		(178	)		(66	)

Total recognized in other comprehensive income (loss), pre-tax	¥	(1,293	)	¥	11,164		¥	4,508

Overseas plans:
Current year actuarial gain (loss)	¥	1,117		¥	(2,308	)	¥	13,672
Amortization of net actuarial loss		739			313			500
Prior service credit due to amendments		1,097			(10	)		(255	)
Amortization of prior service credit		(208	)		(269	)		(320	)
Amortization of transition obligation		1			1			1
Foreign currency exchange rate change		524			(946	)		(215	)

Total recognized in other comprehensive income (loss), pre-tax	¥	3,270		¥	(3,219	)	¥	13,383

The Company and certain subsidiaries use March 31 as a measurement date for all of our material plans.

Significant assumptions of Japanese pension plans and overseas pension plans used to determine these amounts are as follows:


Japanese plans	2020			2021			2022
Weighted-average assumptions used to determine benefit obligations at March 31:
Discount rate		0.6	%		0.7	%		0.6	%
Rate of increase in compensation levels		4.0	%		4.0	%		4.0	%
Interest crediting rate for cash balance plans		1.5	%		1.5	%		1.5	%
Weighted-average assumptions used to determine net periodic pension cost for years ended March 31:
Discount rate		0.5	%		0.6	%		0.7	%
Rate of increase in compensation levels		4.4	%		4.0	%		4.0	%
Expected long-term rate of return on plan assets		2.2	%		2.0	%		2.0	%
Interest crediting rate for cash balance plans		1.5	%		1.5	%		1.5	%

Overseas plans	2020			2021			2022
Weighted-average assumptions used to determine benefit obligations at March 31:
Discount rate		1.7	%		1.0	%		1.7	%
Rate of increase in compensation levels		2.2	%		2.2	%		2.2	%
Interest crediting rate for cash balance plans		—			—			—
Weighted-average assumptions used to determine net periodic pension cost for years ended March 31:
Discount rate		1.7	%		1.7	%		1.0	%
Rate of increase in compensation levels		2.4	%		2.2	%		2.2	%
Expected long-term rate of return on plan assets		3.7	%		3.3	%		3.5	%
Interest crediting rate for cash balance plans		—			—			—

The Company and certain subsidiaries determine the expected long-term rate of return on plan assets annually based on the composition of the pension asset portfolios and the expected long-term rate of return on these portfolios. The expected long-term rate of return is designed to approximate the long-term rate of return actually earned on the plans’ assets over time to ensure that funds are available to meet the pension obligations that result from the services provided by employees. The Company and certain subsidiaries use a number of factors to determine the expected rate of return, including actual historical returns on the asset classes of the plans’ portfolios and independent projections of returns of the various asset classes.

The Company and certain subsidiaries’ investment policies are designed to ensure adequate plan assets are available to provide future payments of pension benefits to eligible participants. The Company and certain subsidiaries formulate a policy portfolio appropriate to produce the expected long-term rate of return on plan assets and to ensure that plan assets are allocated under this policy portfolio. The Company and certain subsidiaries periodically have an external consulting firm monitor the results of actual return and revise the policy portfolio if necessary.

The fair value of Japanese pension plan assets at March 31, 2021 and 2022, by asset category, are as follows. The three levels of input used to measure fair value are described in Note 2 “Fair Value Measurements.”


	Millions of yen
	March 31, 2021
	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)
Equity securities:
Japan
Pooled funds*1	¥	17,823	¥	0	¥	0	¥	0
Other than Japan
Pooled funds*2		22,231		0		0		0
Debt securities:
Japan
Pooled funds*3		24,127		0		0		0
Other than Japan
Pooled funds*4		36,386		0		0		0
Other assets:
Life insurance company general accounts*5		28,977		0		28,977		0
Others*6		4,848		0		4,848		0

	¥	134,392	¥	0	¥	33,825	¥	0

*1	These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥22 million at March 31, 2021.

*2	These funds invest in listed shares.

*3	These funds invest approximately 70% in Japanese government bonds, approximately 10% in Japanese municipal bonds, and approximately 20% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥51 million at March 31, 2021.

*4	These funds invest approximately 90% in foreign government bonds and approximately 10% in foreign corporate bonds.

*5	Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.

*6	Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments.

At March 31, 2021, our policy for the portfolio of plans consists of three major components: approximately 30% is invested in equity securities, approximately 50% is invested in debt securities and approximately 20% is invested in other assets, primarily consisting of investments in life insurance company general accounts.

Level 2 assets are comprised principally of investments in life insurance company general accounts. Investments in life insurance company general accounts are valued at conversion value. Pooled funds are valued at the net asset value per share at the measurement date and they have not been classified in the fair value hierarchy.


	Millions of yen
	March 31, 2022
	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)
Equity securities:
Japan
Pooled funds*1	¥	16,002	¥	0	¥	0	¥	0
Other than Japan
Pooled funds*2		21,366		0		0		0
Debt securities:
Japan
Pooled funds*3		27,845		0		0		0
Other than Japan
Pooled funds*4		38,070		0		0		0
Other assets:
Life insurance company general accounts*5		29,462		0		29,462		0
Others*6		4,572		0		4,572		0

	¥	137,317	¥	0	¥	34,034	¥	0

*1	These funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥22 million at March 31, 2022.

*2	These funds invest in listed shares.

*3	These funds invest approximately 70% in Japanese government bonds, and approximately 30% in Japanese corporate bonds. These funds include corporate bonds of ORIX Corporation in the amounts of ¥37 million at March 31, 2022.

*4	These funds invest approximately 90% in foreign government bonds and approximately 10% in foreign corporate bonds.

*5	Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.

*6	Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments.

At March 31, 2022, our policy for the portfolio of plans consists of three major components: approximately 30% is invested in equity securities, approximately 50% is invested in debt securities and approximately 20% is invested in other assets, primarily consisting of investments in life insurance company general accounts.

The fair value of overseas pension plan assets at March 31, 2021 and 2022, by asset category, are as follows. The three levels of input used to measure fair value are described in Note 2 “Fair Value Measurements.”


	Millions of yen
	March 31, 2021
	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)
Equity securities:
Other than Japan
Shares	¥	58,483	¥	58,483	¥	0	¥	0
Pooled funds*1		617		0		0		0
Debt securities:
Other than Japan
Government bonds		52,245		52,245		0		0
Municipal bonds		4,589		0		4,589		0
Other assets:
Life insurance company general accounts*2		325		0		325		0
Others*3		3,599		0		3,599		0

	¥	119,858	¥	110,728	¥	8,513	¥	0

*1	These funds invest in listed shares.

*2	Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.

*3	Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments.

At March 31, 2021, our policy for the portfolio of plans consists of two major components: approximately 50% is invested in equity securities and approximately 50% is invested in debt securities.

Each level into which assets are categorized is based on inputs used to measure the fair value of the assets. Level 1 assets are comprised principally of equity securities and debt securities, which are valued using unadjusted quoted market prices in active markets with sufficient volume and frequency of transactions. Level 2 assets are comprised principally of debt securities and investments in life insurance company general accounts. Investments in life insurance company general accounts are valued at conversion value. Pooled funds are valued at the net asset value per share at the measurement date and they have not been classified in the fair value hierarchy.


	Millions of yen
	March 31, 2022
	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)
Equity securities:
Other than Japan
Shares	¥	59,932	¥	59,932	¥	0	¥	0
Pooled funds*1		1,031		0		0		0
Debt securities:
Other than Japan
Government bonds		55,999		55,999		0		0
Municipal bonds		4,411		0		4,411		0
Other assets:
Life insurance company general accounts*2		351		0		351		0
Others*3		5,527		0		5,527		0

	¥	127,251	¥	115,931	¥	10,289	¥	0

*1	These funds invest in listed shares.

*2	Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.

*3	Others include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments.

At March 31, 2022, our policy for the portfolio of plans consists of two major components: approximately 50%

is invested in equity securities and approximately 50% is invested in debt securities.

The Company and certain subsidiaries expect to contribute ¥3,897 million to its Japanese pension plans and ¥2,663 million to its overseas pension plans during the year ending March 31, 202

At March 31, 2022, the benefits expected to be paid in each of the next five fiscal years, and in the aggregate for the five years thereafter are as follows:


	Millions of yen
Years ending March 31,	Japanese plans		Overseas plans
2023	¥	5,468	¥	1,989
2024		5,375		2,104
2025		5,853		2,051
2026		6,048		2,137
2027		5,738		2,268
2028-2032		30,942		13,326

Total	¥	59,424	¥	23,875

The cost recognized for Japanese defined contribution pension plans of the Company and certain of its subsidiaries for fiscal 2020, 2021 and 2022 were ¥1,779 million, ¥1,873 million and ¥1,997 million, respectively. The cost recognized for overseas defined contribution pension plans of the Company and certain of its subsidiaries for fiscal 2020, 2021 and 2022 were ¥2,320 million, ¥2,446 million and ¥2,892 million, respectively.