Fair value measurements (Tables)

12 Months Ended

Mar. 31, 2013

Fair value of financial assets and financial liabilities measured on recurring basis

The following tables present the amounts of Nomura’s financial instruments measured at fair value on a recurring basis as of March 31, 2012 and 2013 within the fair value hierarchy.

	Billions of yen
	March 31, 2012
	Level 1		Level 2		Level 3			Counterparty and Cash Collateral Netting(1)			Balance as of March 31, 2012
Assets:
Trading assets and private equity investments(2)
Equities(3)	¥	745	¥	1,194	¥	125		¥	—		¥	2,064
Private equity investments(3)		—		—		202			—			202
Japanese government securities		2,143		—		—			—			2,143
Japanese agency and municipal securities		—		151		10			—			161
Foreign government, agency and municipal securities		3,072		1,185		37			—			4,294
Bank and corporate debt securities and loans for trading purposes		—		1,276		62			—			1,338
Commercial mortgage-backed securities (“CMBS”)		—		135		8			—			143
Residential mortgage-backed securities (“RMBS”)		—		2,010		5			—			2,015
Real estate-backed securities		—		1		91			—			92
Collateralized debt obligations (“CDO”) and other(4)		—		103		20			—			123
Investment trust funds and other		95		85		9			—			189
Total trading assets and private equity investments		6,055		6,140		569			—			12,764
Derivative assets(5)
Equity contracts		584		937		82			—			1,603
Interest rate contracts		14		18,850		57			—			18,921
Credit contracts		0		1,650		214			—			1,864
Foreign exchange contracts		0		1,229		131			—			1,360
Commodity contracts		1		3		0			—			4
Netting		—		—		—			(22,392	)		(22,392	)
Total derivative assets		599		22,669		484			(22,392	)		1,360
Subtotal	¥	6,654	¥	28,809	¥	1,053		¥	(22,392	)	¥	14,124
Loans and receivables(6)		—		447		11			—			458
Collateralized agreements(7)		—		752		—			—			752
Other assets
Non-trading debt securities		680		177		6			—			863
Other(3)		216		6		72			—			294
Total	¥	7,550	¥	30,191	¥	1,142		¥	(22,392	)	¥	16,491
Liabilities:
Trading liabilities
Equities	¥	579	¥	413	¥	0		¥	—		¥	992
Japanese government securities		2,624		—		—			—			2,624
Foreign government, agency and municipal securities		1,800		490		—			—			2,290
Bank and corporate debt securities		—		233		1			—			234
Commercial mortgage-backed securities (“CMBS”)		—		1		—			—			1
Residential mortgage-backed securities (“RMBS”)		—		0		—			—			0
Collateralized debt obligations (“CDO”) and other(4)		—		0		—			—			0
Investment trust funds and other		43		3		—			—			46
Total trading liabilities		5,046		1,140		1			—			6,187
Derivative liabilities(5)
Equity contracts		617		1,016		68			—			1,701
Interest rate contracts		12		18,708		96			—			18,816
Credit contracts		0		1,727		225			—			1,952
Foreign exchange contracts		0		1,297		113			—			1,410
Commodity contracts		1		4		0			—			5
Netting		—		—		—			(22,576	)		(22,576	)
Total derivative liabilities		630		22,752		502			(22,576	)		1,308
Subtotal	¥	5,676	¥	23,892	¥	503		¥	(22,576	)	¥	7,495
Short-term borrowings(8)		—		153		0			—			153
Payables and deposits(9)		—		0		(0	)		—			(0	)
Collateralized financing(7)		—		307		—			—			307
Long-term borrowings(8)(10)(11)		154		1,549		(13	)		—			1,690
Other liabilities(12)		93		4		—			—			97
Total	¥	5,923	¥	25,905	¥	490		¥	(22,576	)	¥	9,742

	Billions of yen
	March 31, 2013
	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting(1)			Balance as of March 31, 2013
Assets:
Trading assets and private equity investments(2)
Equities(3)	¥	1,008	¥	720	¥	129	¥	—		¥	1,857
Private equity investments(3)		—		—		87		—			87
Japanese government securities		3,331		—		—		—			3,331
Japanese agency and municipal securities		—		72		0		—			72
Foreign government, agency and municipal securities		3,574		1,466		91		—			5,131
Bank and corporate debt securities and loans for trading purposes		—		1,375		69		—			1,444
Commercial mortgage-backed securities (“CMBS”)		—		161		6		—			167
Residential mortgage-backed securities (“RMBS”)		—		2,720		4		—			2,724
Real estate-backed securities		—		—		68		—			68
Collateralized debt obligations (“CDO”) and other(4)		—		138		12		—			150
Investment trust funds and other		144		45		13		—			202
Total trading assets and private equity investments		8,057		6,697		479		—			15,233
Derivative assets(5)
Equity contracts		723		1,058		76		—			1,857
Interest rate contracts		4		21,621		148		—			21,773
Credit contracts		0		1,706		133		—			1,839
Foreign exchange contracts		—		2,094		11		—			2,105
Commodity contracts		1		0		0		—			1
Netting		—		—		—		(25,684	)		(25,684	)
Total derivative assets		728		26,479		368		(25,684	)		1,891
Subtotal	¥	8,785	¥	33,176	¥	847	¥	(25,684	)	¥	17,124
Loans and receivables(6)		—		521		3		—			524
Collateralized agreements(7)		—		998		—		—			998
Other assets
Non-trading debt securities		409		508		4		—			921
Other(3)		172		15		60		—			247
Total	¥	9,366	¥	35,218	¥	914	¥	(25,684	)	¥	19,814
Liabilities:
Trading liabilities
Equities	¥	922	¥	87	¥	0	¥	—		¥	1,009
Japanese government securities		2,151		—		—		—			2,151
Japanese agency and municipal securities		—		0		—		—			0
Foreign government, agency and municipal securities		2,627		477		—		—			3,104
Bank and corporate debt securities		—		288		0		—			288
Commercial mortgage-backed securities (“CMBS”)		—		1		—		—			1
Residential mortgage-backed securities (“RMBS”)		—		1		—		—			1
Investment trust funds and other		40		12		—		—			52
Total trading liabilities		5,740		866		0		—			6,606
Derivative liabilities(5)
Equity contracts		827		1,118		71		—			2,016
Interest rate contracts		2		21,312		202		—			21,516
Credit contracts		0		1,871		108		—			1,979
Foreign exchange contracts		0		1,994		14		—			2,008
Commodity contracts		1		1		0		—			2
Netting		—		—		—		(25,636	)		(25,636	)
Total derivative liabilities		830		26,296		395		(25,636	)		1,885
Subtotal	¥	6,570	¥	27,162	¥	395	¥	(25,636	)	¥	8,491
Short-term borrowings(8)		—		73		4		—			77
Payables and deposits(9)		—		0		1		—			1
Collateralized financing(7)		—		265		—		—			265
Long-term borrowings(8)(10)(11)		114		1,263		222		—			1,599
Other liabilities(12)		39		11		0		—			50
Total	¥	6,723	¥	28,774	¥	622	¥	(25,636	)	¥	10,483

(1) Represents the amount offset under counterparty netting of derivative assets and liabilities as well as cash collateral netting against net derivatives.

(2) Includes investments in certain funds measured at fair value on the basis of NAV per share as a practical expedient.

(3) Includes equity investments that would have been accounted for under the equity method had Nomura not chosen to elect the fair value option.

(4) Includes collateralized loan obligations (“CLO”) and asset-backed securities (“ABS”) such as those secured on credit card loans, auto loans and student loans.

(5) Each derivative classification includes derivatives referencing multiple risk components. For example, interest rate contracts include complex derivatives referencing interest rate risk as well as foreign exchange risk or other factors such as prepayment rates. Credit contracts include credit default swaps as well as derivatives referencing corporate and government debt securities.

(6) Includes loans for which the fair value option is elected.

(7) Includes collateralized agreements or collateralized financing for which the fair value option is elected.

(8) Includes structured notes for which the fair value option is elected.

(9) Includes embedded derivatives bifurcated from deposits received at banks. If unrealized gains are greater than unrealized losses, deposits are reduced by the excess amount.

(10) Includes embedded derivatives bifurcated from issued structured notes. If unrealized gains are greater than unrealized losses, borrowings are reduced by the excess amount.

(11) Includes liabilities recognized from secured financing transactions that are accounted for as financings rather than sales. Nomura elected the fair value option for these liabilities.

(12) Includes loan commitments for which the fair value option is elected.

Schedule of quantitative information regarding significant unobservable inputs and assumptions for certain level 3 financial instruments

The following tables present information about the significant unobservable inputs and assumptions used by Nomura for financial instruments classified as Level 3 as of March 31, 2012 and 2013. These financial instruments will also typically include observable valuation inputs (i.e. Level 1 or Level 2 valuation inputs) which are not included in the table and are also often hedged using financial instruments which are classified in Level 1 or Level 2 of the fair value hierarchy.

	March 31, 2012
Financial Instrument	Fair value in billions  of yen			Valuation technique(s)	Significant unobservable inputs	Range of valuation inputs(1)
Assets:
Trading assets and private equity investments
Equities	¥	125		DCF	Credit spreads Liquidity discounts	6.5 – 7.5 % 20.0 – 30.0 %
				Market multiples	PE ratios Price/Book ratios Liquidity discounts	12.2 x 1.7 x 20.0 %
				DCM	Capitalization rates	5.2 – 6.5 %
Private equity investments		202		DCF	WACC Growth rates Operating margins Liquidity discounts	6.8 – 12.0 % 0.0 – 2.0 % 23.0 % 0.0 – 30.0 %
				Market multiples	EV/EBITDA ratios PE ratios Price/Book ratios Price/Embedded values Liquidity discounts	4.3 – 12.6 x 12.9 x 0.5 – 0.7 x 0.5 x 0.0 – 50.0 %
Japanese agency and municipal securities		10		DCF	Credit spreads	0.1 %
Foreign government, agency and municipal securities		37		DCF	Credit spreads	0.6 – 17.0 %
Bank and corporate debt securities and loans for trading purposes		62		DCF	Credit spreads	0.4 – 25.6 %
Commercial mortgage-backed securities (“CMBS”)		8		DCF	Yields Prepayment rates Default probabilities Loss severities	3.0 – 24.5 % 0.0 – 25.0 % 0.0 – 60.0 % 0.0 – 50.0 %
Residential mortgage-backed securities (“RMBS”)		5		DCF	Yields Prepayment rates Default probabilities Loss severities	1.6 – 30.0 % 1.0 – 5.0 % 2.0 – 4.0 % 20.0 – 40.0 %
Real estate-backed securities		91		DCF	Yields Default probabilities Loss severities	4.0 – 15.0 % 24.0 – 65.0 % 80.0 – 100.0 %
				DCM	Capitalization rates	6.7 – 11.4 %
Collateralized debt obligations (“CDO”) and other		20		DCF	Yields Prepayment rates Default probabilities Loss severities	12.0 – 30.0 % 0.0 – 15.0 % 1.5 – 3.0 % 30.0 – 60.0 %
Investment trust funds and other		9		DCF	Credit spreads Correlations	0.0 – 13.6 % 0.50 – 0.70
Derivatives, net:
Equity contracts		14		Option models	Dividend yield Volatilities Correlations	0.1 – 13.5 % 12.1 – 65.1 % (0.95) – 0.94
Interest rate contracts		(39	)	DCF	Forward FX rates Interest rates Volatilities Correlations	53.2 – 105.4 0.8 – 4.7 % 5.5 – 121.0 % (0.55) – 1.00
Credit contracts		(11	)	DCF	Credit spreads Recovery rates Volatilities Correlations	1.3 – 1,912.4 bps 5.0 – 52.0 % 10.0 – 75.0 % 0.11 – 1.00
Foreign exchange contracts		18		Option models	Volatilities	10.0 – 18.5 %
				DCF	Forward FX rates	2.5 – 11,052.0
Loans and receivables		11		DCF	Credit spreads	3.0 – 15.0 %
Other assets
Non-trading debt securities		6		DCF	Credit spreads	0.6 – 2.0 %
Other(3)		72		DCF	WACC	6.8 – 9.3 %
					Growth rates	0.0 %
				Market multiples	PE ratios Price/Book ratios Liquidity discounts	12.9 x 0.5 x 25.0 %
Liabilities:
Long-term borrowings	¥	(13	)	DCF	Yields Prepayment rates Default probabilities Loss severities Volatilities Correlations	22.0 – 67.0 % 15.0 % 2.0 – 6.0 % 30.0 – 60.0 % 5.5 – 118.5 % (0.76) – 1.00

	March 31, 2013
Financial Instrument	Fair value in billions of yen			Valuation technique(s)	Significant unobservable inputs	Range of valuation inputs(1)	Weighted Average(2)
Assets:
Trading assets and private equity investments
Equities	¥	129		DCF	Yields Liquidity discounts	7.6 % 25.0 – 38.0 %	7.6 % 35.4 %
				DCM	Capitalization rates	5.2 – 6.7 %	6.3 %
Private equity investments		87		DCF	WACC Growth rates Liquidity discounts	6.8 % 0.0 % 25.0 %	6.8 % 0.0 % 25.0 %
				Market multiples	EV/EBITDA ratios PE ratios Price/Book ratios Price/Embedded values Liquidity discounts	3.7 – 11.3 x 7.7 x 0.4 x 0.4 x 0.0 – 33.0 %	11.0 x 7.7 x 0.4 x 0.4 x 25.8 %
Foreign government, agency and municipal securities		91		DCF	Credit spreads	0.0 – 6.5 %	0.7 %
Bank and corporate debt securities and loans for trading purposes		69		DCF	Credit spreads Recovery rates	0.0 – 24.2 % 0.1 – 36.4 %	2.6 % 28.1 %
Commercial mortgage-backed securities (“CMBS”)		6		DCF	Yields Default probabilities Loss severities	0.0 – 25.0 % 100.0 % 0.0 – 80.0 %	8.0 % 100.0 % 0.3 %
Residential mortgage-backed securities (“RMBS”)		4		DCF	Yields Prepayment rates Default probabilities Loss severities	0.0 – 40.0 % 0.0 – 8.2 % 0.3 – 17.0 % 22.0 – 90.0 %	3.3 % 4.5 % 14.7 % 64.2 %
Real estate-backed securities		68		DCF	Yields Default probabilities Loss severities	1.8 – 15.0 % 24.0 – 65.0 % 80.0 – 100.0 %	1.9 % 42.6 % 88.0 %
				DCM	Capitalization rates	6.8 %	6.8 %
Collateralized debt obligations (“CDO”) and other		12		DCF	Yields Prepayment rates Default probabilities Loss severities	0.0 – 58.6 % 0.0 – 15.0 % 2.0 – 5.0 % 30.0 – 75.0 %	17.1 % 13.8 % 2.1 % 45.6 %
Investment trust funds and other		13		DCF	Credit spreads Correlations	0.0 – 6.5 % 0.50 – 0.70	0.6 % 0.60
Derivatives, net:
Equity contracts		5		Option models	Dividend yield Volatilities Correlations	0.0 – 11.0 % 5.7 – 92.4 % (0.77) – 0.99	—   —   —
Interest rate contracts		(54	)	DCF/Option models	Forward FX rates Interest rates	62.9 – 121.7 0.6 – 4.2 %	—   —
				Option models	Volatilities Correlations	13.5 – 118.1 % (0.70) – 0.99	—   —
Credit contracts		25		DCF/Option models	Credit spreads Recovery rates	0.0 –7.5 % 15.0 –40.0 %	—   —
				Option models	Volatilities Correlations	10.0 –70.0 % 0.33 –0.90	—   —
Foreign exchange contracts		(3	)	Option models	Volatilities	1.4 –20.7 %	—
				DCF	Forward FX rates	2.7 –12,484.0	—
Loans and receivables		3		DCF	Credit spreads	3.0 %	3.0 %
Other assets
Non-trading debt securities		4		DCF	Credit spreads	0.2 – 2.5 %	1.7 %
Other(3)		60		DCF	WACC	6.8 – 6.8 %	6.8 %
					Growth rates Yields Liquidity discounts	0.0 – 1.0 % 7.6 % 0.0 – 30.0 %	0.9 % 7.6 % 8.0 %
				Market multiples	EV/EBITDA ratios PE ratios Price/Book ratios Liquidity discounts	6.9 – 12.5 x 7.7 – 44.4 x 0.0 – 5.6 x 25.0 – 30.0 %	9.9 x 25.8 x 1.7 x 29.8 %
Liabilities:
Long-term borrowings	¥	222		DCF	Volatilities Correlations	13.5 – 118.1 % (0.77) – 0.99	—   —

(1) Range information is provided in percentages, coefficients and multiples and represents the highest and lowest level significant unobservable valuation input used to value that type of financial instrument. A wide dispersion in the range does not necessarily reflect increased uncertainty or subjectivity in the valuation input and is typically just a consequence of the different characteristics of the financial instruments themselves.

(2) Weighted average information for non-derivative instruments is calculated by weighting each valuation input by the fair value of the financial instrument.

(3) Valuation technique(s) and unobservable inputs represent those equity securities reported within Other assets.

Increases and decreases of Level 3 assets and liabilities measured at fair value on recurring basis unrealized and realized gain/losses included in revenue

The following tables present gains and losses as well as increases and decreases of financial instruments measured at fair value on a recurring basis which Nomura classified as Level 3 for the years ended March 31, 2012 and 2013. Financial instruments classified as Level 3 are often hedged with instruments within Level 1 or Level 2 of the fair value hierarchy. The gains or losses presented below do not reflect the offsetting gains or losses for these hedging instruments. Level 3 financial instruments are also measured using both observable and unobservable inputs. Fair value changes presented below, therefore, reflect realized and unrealized gains and losses resulting from movements in both observable and unobservable parameters.

For the year ended March 31, 2013, gains and losses related to Level 3 assets did not have a material impact on Nomura’s liquidity and capital resources management.

				Billions of yen
				Year ended March 31, 2012
	Balance as of April 1, 2011			Total gains (losses) recognized in net revenue(1)			Total gains (losses) recognized in other comprehensive income			Purchases / issues(2)			Sales / redemptions(2)			Settlements			Foreign exchange movements			Transfers into Level  3(3)			Transfers out of Level 3(3)			Balance as of March 31, 2012
Assets:
Trading assets and private equity investments
Equities	¥	121		¥	(11	)	¥	—		¥	57		¥	(27	)	¥	—		¥	(1	)	¥	8		¥	(22	)	¥	125
Private equity investments		289			23			—			4			(112	)		—			(2	)		—			—			202
Japanese agency and municipal securities		—			0			—			27			(18	)		—			—			1			(0	)		10
Foreign government, agency and municipal securities		23			11			—			415			(403	)		—			—			4			(13	)		37
Bank and corporate debt securities and loans for trading purposes		51			(0	)		—			159			(154	)		—			(0	)		44			(38	)		62
Commercial mortgage-backed securities (“CMBS”)		28			0			—			8			(33	)		—			0			6			(1	)		8
Residential mortgage-backed securities (“RMBS”)		3			0			—			3			(13	)		—			0			13			(1	)		5
Real estate-backed securities		128			1			—			7			(45	)		—			(0	)		—			—			91
Collateralized debt obligations (“CDO”) and other		34			(1	)		—			21			(24	)		—			0			8			(18	)		20
Investment trust funds and other		10			(1	)		—			2			(2	)		—			(0	)		0			—			9
Total trading assets and private equity investments		687			22			—			703			(831	)		—			(3	)		84			(93	)		569
Derivatives, net(4)
Equity contracts		28			(13	)		—			—			—			6			(2	)		(4	)		(1	)		14
Interest rate contracts		11			(3	)		—			—			—			(24	)		(4	)		12			(31	)		(39	)
Credit contracts		(55	)		(30	)		—			—			—			52			3			25			(6	)		(11	)
Foreign exchange contracts		2			22			—			—			—			(6	)		0			0			(0	)		18
Commodity contracts		(2	)		0			—			—			—			(0	)		(0	)		2			0			(0	)
Total derivatives, net		(16	)		(24	)		—			—			—			28			(3	)		35			(38	)		(18	)
Subtotal	¥	671		¥	(2	)	¥	—		¥	703		¥	(831	)	¥	28		¥	(6	)	¥	119		¥	(131	)	¥	551
Loans and receivables		11			(4	)		—			10			(5	)		—			(0	)		—			(1	)		11
Other assets
Non-trading debt securities		0			0			(0	)		8			(2	)		—			(0	)		—			—			6
Other		25			(1	)		(1	)		66			(17	)		—			0			0			(0	)		72
Total	¥	707		¥	(7	)	¥	(1	)	¥	787		¥	(855	)	¥	28		¥	(6	)	¥	119		¥	(132	)	¥	640
Liabilities:
Trading liabilities
Equities	¥	—		¥	—		¥	—		¥	(0	)	¥	0		¥	—		¥	—		¥	0		¥	—		¥	0
Bank and corporate debt securities		—			(0	)		—			2			(1	)		—			—			—			—			1
Total trading liabilities	¥	—		¥	(0	)	¥	—		¥	2		¥	(1	)	¥	—		¥	—		¥	0		¥	—		¥	1
Short-term borrowings		1			0			—			16			(15	)		—			0			0			(2	)		0
Payables and deposits		1			(0	)		—			(0	)		(1	)		—			—			—			—			(0	)
Long-term borrowings		144			(50	)		—			77			(183	)		—			(10	)		2			(93	)		(13	)
Total	¥	146		¥	(50	)	¥	—		¥	95		¥	(200	)	¥	—		¥	(10	)	¥	2		¥	(95	)	¥	(12	)

				Billions of yen
				Year ended March 31, 2013
	Balance as of April 1, 2012			Total gains (losses) recognized in net revenue(1)			Total gains (losses) recognized in other comprehensive income		Purchases / issues(2)			Sales / redemptions(2)			Settlements			Foreign exchange movements			Transfers into Level  3(3)			Transfers out of Level 3(3)			Balance as of March 31, 2013
Assets:
Trading assets and private equity investments
Equities	¥	125		¥	2		¥	—	¥	38		¥	(22	)	¥	—		¥	5		¥	6		¥	(25	)	¥	129
Private equity investments		202			9			—		4			(137	)		—			9			—			—			87
Japanese agency and municipal securities		10			0			—		1			(11	)		—			—			0			(0	)		0
Foreign government, agency and municipal securities		37			39			—		728			(731	)		—			0			62			(44	)		91
Bank and corporate debt securities and loans for trading purposes		62			7			—		245			(286	)		—			7			69			(35	)		69
Commercial mortgage-backed securities (“CMBS”)		8			3			—		11			(15	)		—			1			4			(6	)		6
Residential mortgage-backed securities (“RMBS”)		5			1			—		19			(20	)		—			0			2			(3	)		4
Real estate-backed securities		91			2			—		1			(26	)		—			0			—			—			68
Collateralized debt obligations (“CDO”) and other		20			(1	)		—		11			(17	)		—			1			3			(5	)		12
Investment trust funds and other		9			2			—		2			(0	)		—			0			0			(0	)		13
Total trading assets and private equity investments		569			64			—		1,060			(1,265	)		—			23			146			(118	)		479
Derivatives, net(4)
Equity contracts		14			(9	)		—		—			—			(11	)		4			(1	)		8			5
Interest rate contracts		(39	)		(15	)		—		—			—			(1	)		(1	)		(0	)		2			(54	)
Credit contracts		(11	)		(16	)		—		—			—			12			6			15			19			25
Foreign exchange contracts		18			(1	)		—		—			—			1			(1	)		(6	)		(14	)		(3	)
Commodity contracts		(0	)		0			—		—			—			(0	)		(0	)		0			(0	)		(0	)
Total derivatives, net		(18	)		(41	)		—		—			—			1			8			8			15			(27	)
Subtotal	¥	551		¥	23		¥	—	¥	1,060		¥	(1,265	)	¥	1		¥	31		¥	154		¥	(103	)	¥	452
Loans and receivables		11			(0	)		—		0			(3	)		—			1			—			(6	)		3
Other assets
Non-trading debt securities		6			0			0		0			(2	)		—			0			—			—			4
Other(5)		72			21			0		1			(32	)		—			0			0			(2	)		60
Total	¥	640		¥	44		¥	0	¥	1,061		¥	(1,302	)	¥	1		¥	32		¥	154		¥	(111	)	¥	519
Liabilities:
Trading liabilities
Equities	¥	0		¥	(0	)	¥	—	¥	0		¥	(0	)	¥	—		¥	0		¥	0		¥	—		¥	0
Bank and corporate debt securities		1			(0	)		—		0			(1	)		—			0			—			(0	)		0
Total trading liabilities	¥	1		¥	(0	)	¥	—	¥	0		¥	(1	)	¥	—		¥	0		¥	0		¥	(0	)	¥	0
Short-term borrowings		0			(0	)		—		6			(1	)		—			—			1			(2	)		4
Payables and deposits		(0	)		(1	)		—		(0	)		(0	)		—			—			—			—			1
Long-term borrowings		(13	)		(155	)		—		108			(82	)		—			3			110			(59	)		222
Other liabilities		—			0			—		0			(0	)		—			0			—			(0	)		0
Total	¥	(12	)	¥	(156	)	¥	—	¥	114		¥	(84	)	¥	—		¥	3		¥	111		¥	(61	)	¥	227

(1) Includes gains and losses reported primarily within Net gain on trading, Gain (loss) on private equity investments, and also within Gain (loss) on investments in equity securities, Revenue—Other and Non-interest expenses—Other, Interest and dividends and Interest expense in the consolidated statements of income.

(2) Amounts reported in Purchases / issues include increases in trading liabilities while Sales / redemptions include decreases in trading liabilities.

(3) If financial instruments move from Level 3 to another Level or move from another Level to Level 3, the amount reported in Transfers into Level 3 and Transfers out of Level 3 are the fair value as of the beginning of the quarter during which the movement occurs. Therefore if financial instruments move from another Level to Level 3, all gains/ (losses) during the quarter are included in the table and if financial instruments move from Level 3 to another Level, all gains/ (losses) during the year are excluded from the table.

(4) Each derivative classification includes derivatives referencing multiple risk components. For example, interest rate contracts include complex derivatives referencing interest rate risk as well as foreign exchange risk or other factors such as prepayments rates. Credit contracts include credit default swaps as well as derivatives referencing corporate and government debt securities.

(5) Includes the impact of the refined fair value measurement of certain investments in unlisted equity securities.

Fair value, level 3 assets and liabilities measured on recurring basis, unrealized gains (losses)

The following table presents the amounts of unrealized gains (losses) for the years ended March 31, 2012 and 2013, relating to those financial instruments which Nomura classified as Level 3 within the fair value hierarchy and that were still held by Nomura at the relevant consolidated balance sheet date.

	Billions of yen
	March 31
	2012			2013
	Unrealized gains /  (losses)(1)
Assets:
Trading assets and private equity investments
Equities	¥	(2	)	¥	1
Private equity investments		(12	)		(10	)
Japanese agency and municipal securities		(0	)		0
Foreign government, agency and municipal securities		2			2
Bank and corporate debt securities and loans for trading purposes		(3	)		(0	)
Commercial mortgage-backed securities (“CMBS”)		3			1
Residential mortgage-backed securities (“RMBS”)		(0	)		0
Real estate-backed securities		1			(0	)
Collateralized debt obligations (“CDO”) and other		(1	)		(0	)
Investment trust funds and other		(0	)		2
Total trading assets and private equity investments		(12	)		(4	)
Derivatives, net(2)
Equity contracts		(6	)		7
Interest rate contracts		(9	)		24
Credit contracts		(45	)		12
Foreign exchange contracts		16			(4	)
Commodity contracts		0			0
Total derivatives, net		(44	)		39
Subtotal	¥	(56	)	¥	35
Loans and receivables		(3	)		(0	)
Other assets
Non-trading debt securities		0			0
Other(3)		(2	)		24
Total	¥	(61	)	¥	59
Liabilities:
Trading liabilities
Equities	¥	—		¥	0
Total trading liabilities	¥	—		¥	0
Short-term borrowings		0			(1	)
Payables and deposits		(0	)		(1	)
Long-term borrowings		(63	)		(162	)
Other liabilities		—			(0	)
Total	¥	(63	)	¥	(164	)

(1) Includes gains and losses reported primarily within Net gain on trading, Gain (loss) on private equity investments, and also within Gain (loss) on investments in equity securities, Revenue—Other and Non-interest expenses—Other, Interest and dividends and Interest expense in the consolidated statements of income.

(2) Each derivative classification includes derivatives referencing multiple risk components. For example, interest rate contracts include complex derivatives referencing interest rate risk as well as foreign exchange risk or other factors such as prepayment rates. Credit contracts include credit default swaps as well as derivatives referencing corporate and government debt securities.

(3) Includes the impact of the refined fair value measurement of certain investments in unlisted equity securities.

Information on investments where net asset value per share is calculated

The following tables present information on these investments where NAV per share is calculated or disclosed as of March 31, 2012 and 2013. Investments are presented by major category relevant to the nature of Nomura’s business and risks.

	Billions of yen
	March 31, 2012
	Fair  value(1)		Unfunded commitments(2)		Redemption frequency (if currently eligible)(3)	Redemption  notice period(4)
Hedge funds	¥	109	¥	0	Monthly	Same day-95 days
Venture capital funds		4		1	—	—
Private equity funds		61		12	Quarterly	30 days
Real estate funds		11		15	—	—
Total	¥	185	¥	28

	Billions of yen
	March 31, 2013
	Fair  value(1)		Unfunded commitments(2)		Redemption frequency (if currently eligible)(3)	Redemption  notice period(4)
Hedge funds	¥	68	¥	16	Monthly	Same day-95 days
Venture capital funds		4		1	—	—
Private equity funds		63		7	Quarterly	30 days
Real estate funds		3		—	—	—
Total	¥	138	¥	24

(1) Fair value generally determined using NAV per share as a practical expedient.

(2) The contractual amount of any unfunded commitments Nomura is required to make to the entities in which the investment is held.

(3) The range in frequency with which Nomura can redeem investments.

(4) The range in notice period required to be provided before redemption is possible.

Gains (losses) due to changes in fair value for financial instruments measured at fair value using fair value option

The following table presents gains (losses) due to changes in fair value for financial instruments measured at fair value using the fair value option for the years ended March 31, 2011, 2012 and 2013.

	Billions of yen
	Year ended March 31
	2011			2012			2013
	Gains/(Losses)(1)
Assets:
Trading assets and private equity investments(2)
Trading assets	¥	(4	)	¥	0		¥	2
Private equity investments		0			(12	)		(10	)
Loans and receivables		8			(6	)		19
Collateralized agreements(3)		6			10			(0	)
Other assets(2)		—			(0	)		1
Total	¥	10		¥	(8	)	¥	12
Liabilities:
Short-term borrowings(4)	¥	(7	)	¥	(14	)	¥	(4	)
Collateralized financing(3)		(0	)		(1	)		(1	)
Long-term borrowings(4)(5)		(37	)		(11	)		(51	)
Other liabilities(6)		—			0			0
Total	¥	(44	)	¥	(26	)	¥	(56	)

(1) Includes gains and losses reported primarily within Net gain on trading and Gain on private equity investments in the consolidated statements of income.

(2) Includes equity investments that would have been accounted for under the equity method had Nomura not chosen to elect the fair value option.

(3) Includes resale and repurchase agreements.

(4) Includes structured notes and other financial liabilities.

(5) Includes secured financing transactions arising from transfers of financial assets which did not meet the criteria for sales accounting.

(6) Includes loan commitments.

Geographic allocations of trading assets related to government, agency, municipal securities

The following tables present geographic allocations of Nomura’s trading assets related to government, agency and municipal securities. See Note 3 “Derivative instruments and hedging activities” for further information regarding the concentration of credit risk for derivatives.

	Billions of yen
	March 31, 2012
	Japan		U.S.		EU		Other		Total(1)
Government, agency and municipal securities	¥	2,304	¥	1,319	¥	2,527	¥	448	¥	6,598
	Billions of yen
	March 31, 2013
	Japan		U.S.		EU		Other		Total(1)
Government, agency and municipal securities	¥	3,403	¥	1,313	¥	3,262	¥	556	¥	8,534

(1) Other than above, there were ¥640 billion and ¥715 billion of government, agency and municipal securities in Other assets—Non-trading debt securities as of March 31, 2012 and 2013, respectively. The vast majority of these securities are Japanese government, agency and municipal securities.

Estimated fair value of financial instruments not carried at fair value

The following tables present carrying values, fair values and classification within the fair value hierarchy for certain classes of financial instrument of which a portion of the ending balance was carried at fair value as of March 31, 2012 and 2013.

	Billions of yen
	March 31, 2012(1)
					Fair value by level
	Carrying value		Fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	1,071	¥	1,071	¥	1,071	¥	—	¥	—
Time deposits		653		653		—		653		—
Deposits with stock exchanges and other segregated cash		230		230		—		230		—
Loans receivable(2)		1,290		1,286		—		1,031		255
Securities purchased under agreements to resell		7,663		7,663		—		7,663		—
Securities borrowed		6,080		6,080		—		6,080		—
Total Assets	¥	16,987	¥	16,983	¥	1,071	¥	15,657	¥	255
Liabilities:
Short-term borrowings	¥	1,186	¥	1,186	¥	—	¥	1,186	¥	0
Deposits received at banks		905		905		—		905		—
Securities sold under agreements to repurchase		9,928		9,928		—		9,928		—
Securities loaned		1,700		1,700		—		1,700		—
Long-term borrowings		8,505		8,242		154		8,084		4
Total Liabilities	¥	22,224	¥	21,961	¥	154	¥	21,803	¥	4

	Billions of yen
	March 31, 2013(1)
					Fair value by level
	Carrying value		Fair value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	¥	805	¥	805	¥	805	¥	—	¥	—
Time deposits		578		578		—		578		—
Deposits with stock exchanges and other segregated cash		270		270		—		270		—
Loans receivable(2)		1,575		1,576		—		1,352		224
Securities purchased under agreements to resell		8,295		8,295		—		8,295		—
Securities borrowed		5,820		5,820		—		5,820		—
Total Assets	¥	17,343	¥	17,344	¥	805	¥	16,315	¥	224
Liabilities:
Short-term borrowings	¥	738	¥	738	¥	—	¥	734	¥	4
Deposits received at banks		1,072		1,072		—		1,071		1
Securities sold under agreements to repurchase		12,444		12,444		—		12,440		4
Securities loaned		2,159		2,159		—		2,159		—
Long-term borrowings		7,592		7,430		114		7,093		223
Total Liabilities	¥	24,005	¥	23,843	¥	114	¥	23,497	¥	232

(1) Includes financial instruments which are carried at fair value on a recurring basis.

(2) Carrying values are shown after deducting allowance for loan losses.