Investments (Tables)

12 Months Ended

Mar. 31, 2020

Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Available-for-Sale and Held-to-Maturity Securities

The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity securities at March 31, 2019 and 2020 are as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(in millions of yen)
2019
Available-for-sale securities:
Debt securities:
Japanese government bonds		11,888,510		11,259		2,998		11,896,771
Japanese local government bonds		208,308		1,671		87		209,892
U.S. Treasury bonds and federal agency securities		1,008,903		644		231		1,009,316
Other foreign government bonds		1,341,564		758		455		1,341,867
Agency mortgage-backed securities(1)		530,540		14,524		593		544,471
Residential mortgage-backed securities		99,904		1,420		191		101,133
Commercial mortgage-backed securities		495,313		4,914		104		500,123
Japanese corporate bonds and other debt securities		1,743,309		7,686		1,561		1,749,434
Foreign corporate bonds and other debt securities(2)		778,088		3,047		226		780,909
Total		18,094,439		45,923		6,446		18,133,916
Held-to-maturity securities:
Debt securities:
Japanese government bonds		1,119,899		19,907		—		1,139,806
Agency mortgage-backed securities(3)		484,205		—		14,423		469,782
Total		1,604,104		19,907		14,423		1,609,588
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(in millions of yen)
2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		12,651,677		1,319		50,224		12,602,772
Japanese local government bonds		272,412		649		494		272,567
U.S. Treasury bonds and federal agency securities		927,172		7,733		—		934,905
Other foreign government bonds		1,408,009		3,273		202		1,411,080
Agency mortgage-backed securities(1)		494,958		10,490		434		505,014
Residential mortgage-backed securities		83,077		1,405		151		84,331
Commercial mortgage-backed securities		609,559		5,551		106		615,004
Japanese corporate bonds and other debt securities		1,836,540		7,489		8,772		1,835,257
Foreign corporate bonds and other debt securities(2)		849,595		2,595		168		852,022
Total		19,132,999		40,504		60,551		19,112,952
Held-to-maturity securities:
Debt securities:
Japanese government bonds		479,936		13,357		—		493,293
Agency mortgage-backed securities(3)		382,095		1,245		1,303		382,037
Total		862,031		14,602		1,303		875,330

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥517,330 million and ¥27,141 million, respectively, at March 31, 2019, and ¥504,953 million and ¥61 million, respectively, at March 31, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government.

(2) Other debt securities presented in this line primarily consist of Foreign negotiable certificates of deposit (“NCDs”) and asset-backed securities (“ABS”), of which the total fair values were ¥246,503 million at March 31, 2019, and ¥271,387 million at March 31, 2020.

(3) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities by Contractual Maturity

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2020 are shown in the table below based on their contractual maturities. Expected maturities may differ from contractual maturities because some securities are not due at a single maturity date, and some securities, such as mortgage-backed securities, contain embedded call or prepayment options.

Amortized cost	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		5,872,058		4,980,539		1,753,300		45,780		12,651,677
Japanese local government bonds		11,530		171,825		84,528		4,529		272,412
U.S. Treasury bonds and federal agency securities		883,432		43,740		—		—		927,172
Other foreign government bonds		1,029,641		378,368		—		—		1,408,009
Agency mortgage-backed securities		—		—		—		494,958		494,958
Residential mortgage-backed securities		—		—		—		83,077		83,077
Commercial mortgage-backed securities		16,372		202,044		390,343		800		609,559
Japanese corporate bonds and other debt securities		98,532		868,704		545,320		323,984		1,836,540
Foreign corporate bonds and other debt securities		377,642		327,312		141,755		2,886		849,595
Total		8,289,207		6,972,532		2,915,246		956,014		19,132,999
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		479,936		—		—		479,936
Agency mortgage-backed securities		—		—		—		382,095		382,095
Total		—		479,936		—		382,095		862,031
Fair value	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		5,872,485		4,963,282		1,722,090		44,915		12,602,772
Japanese local government bonds		11,537		172,052		84,443		4,535		272,567
U.S. Treasury bonds and federal agency securities		890,367		44,538		—		—		934,905
Other foreign government bonds		1,031,189		379,891		—		—		1,411,080
Agency mortgage-backed securities		—		—		—		505,014		505,014
Residential mortgage-backed securities		—		—		—		84,331		84,331
Commercial mortgage-backed securities		16,396		203,233		394,561		814		615,004
Japanese corporate bonds and other debt securities		98,589		868,675		544,559		323,434		1,835,257
Foreign corporate bonds and other debt securities		378,464		328,918		141,754		2,886		852,022
Total		8,299,027		6,960,589		2,887,407		965,929		19,112,952
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		493,293		—		—		493,293
Agency mortgage-backed securities		—		—		—		382,037		382,037
Total		—		493,293		—		382,037		875,330

Gross Unrealized Losses and Fair Value of Available-for-Sale and Held-to-Maturity Securities, Aggregated by Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position

The following table shows the gross unrealized losses and fair value of available-for-sale and held-to-maturity securities, aggregated by the length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 and 2020:

	Less than 12 months				12 months or more				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in millions of yen)
2019
Available-for-sale securities:
Debt securities:
Japanese government bonds		2,296,536		1,441		1,332,688		1,557		3,629,224		2,998
Japanese local government bonds		9,752		32		38,873		55		48,625		87
U.S. Treasury bonds and federal agency securities		506,176		231		—		—		506,176		231
Other foreign government bonds		438,771		321		26,782		134		465,553		455
Agency mortgage-backed securities(1)		466		2		37,706		591		38,172		593
Residential mortgage-backed securities		—		—		16,729		191		16,729		191
Commercial mortgage-backed securities		11,256		44		36,760		60		48,016		104
Japanese corporate bonds and other debt securities		417,825		924		440,937		637		858,762		1,561
Foreign corporate bonds and other debt securities		129,164		142		79,716		84		208,880		226
Total		3,809,946		3,137		2,010,191		3,309		5,820,137		6,446
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities(2)		—		—		469,782		14,423		469,782		14,423
Total		—		—		469,782		14,423		469,782		14,423
2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		10,339,320		43,204		283,561		7,020		10,622,881		50,224
Japanese local government bonds		162,665		418		34,114		76		196,779		494
U.S. Treasury bonds and federal agency securities		—		—		—		—		—		—
Other foreign government bonds		196,990		202		—		—		196,990		202
Agency mortgage-backed securities(1)		30,913		227		9,504		207		40,417		434
Residential mortgage-backed securities		9,524		62		5,450		89		14,974		151
Commercial mortgage-backed securities		15,115		85		7,478		21		22,593		106
Japanese corporate bonds and other debt securities		669,572		5,507		608,361		3,265		1,277,933		8,772
Foreign corporate bonds and other debt securities		152,058		165		5,564		3		157,622		168
Total		11,576,157		49,870		954,032		10,681		12,530,189		60,551
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities(2)		—		—		191,244		1,303		191,244		1,303
Total		—		—		191,244		1,303		191,244		1,303

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥11,107 million and ¥27,065 million, respectively, at March 31, 2019, and ¥40,417 million and ¥0 million, respectively, at March 31, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Ginnie Mae securities, which are guaranteed by the United States government.

(2) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

Realized Gains and Losses on Sales of Available-for-Sale Securities

The following table shows the realized gains and losses on sales of available-for-sale securities for the fiscal years ended March 31, 2018, 2019 and 2020. See “Consolidated Statements of Cash Flows for the fiscal years ended March 31, 2018, 2019 and 2020” for the proceeds from sales of investments.

	2018			2019(Note)			2020(Note)
	(in millions of yen)
Gross realized gains		314,948			23,777			41,903
Gross realized losses		(41,044	)		(26,299	)		(13,398	)
Net realized gains (losses) on sales of available-for-sale securities		273,904			(2,522	)		28,505

Note: Effective April 1, 2018, the available-for-sale category was eliminated for equity securities, and gains and losses on these securities are not included for the fiscal years ended March 31, 2019 and 2020 columns in this table. See Note 2 “Issued accounting pronouncements” for further details.

Summary of Details of Net Gains and Losses on Equity Securities

The following table shows the details of the net gains and losses on Equity securities for the fiscal years ended March 31, 2019 and 2020:

	2019			2020
	(in millions of yen)
Net gains (losses) recognized during the period on equity securities		(155,947	)		(557,391	)
Less: Net gains (losses) recognized during the period on equity securities sold during the period		34,034			1,710
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting period		(189,981	)		(559,101	)

Summary of Downward Adjustments and Impairments and Upward Adjustments

The following table shows carrying amounts of equity securities without readily determinable fair values, for which the measurement alternative is used, and cumulative amounts due to downward adjustments and impairments and upward adjustments, at March 31, 2019 and 2020:

	2019		2020
	(in millions of yen)
Carrying amounts at the end of the period		212,270		419,775
Downward adjustments and impairments		1,413		2,435
Upward adjustments		2,373		9,128

Summary of Composition of Other Investments

The following table summarizes the composition of Other investments at March 31, 2019 and 2020:

	2019		2020
	(in millions of yen)
Equity method investments		354,268		404,513
Investments held by consolidated investment companies		35,472		39,438
Total		389,740		443,951

Summary of Equity Securities Without Readily Determinable Fair Values

The following table shows amounts recognized in earnings during the period due to downward adjustments and impairments and upward adjustments for equity securities without readily determinable fair values.

	2019		2020
	(in millions of yen)
Downward adjustments and impairments		1,413		1,272
Upward adjustments		2,373		6,928