{"url_path":"/sec/ix/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 Exhibits","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-22","source_url":"https://www.sec.gov/Archives/edgar/data/1070304/0001193125-26-276640-index.html","accession_number":"0001193125-26-276640","cik":"0001070304","ticker":"IX","issuer_name":"ORIX CORP","edgar_url":"https://www.sec.gov/Archives/edgar/data/1070304/0001193125-26-276640-index.html","primary_entity_key":"0001070304","primary_entity_name":"ORIX CORP"},"word_count":69778,"has_tables":true,"body_markdown":"Item 19. Exhibits\n\nWe have filed the following documents as exhibits to this document.\n\n \n\nExhibit Number\n\n \n  \n\nDescription\n\n  \n\n \nExhibit 1.1\n \n  \n[Articles of Incorporation of ORIX Corporation, as amended on June 24, 2022, and effective on September 1, 2022 (Incorporated by reference to the Annual Report on Form 20-F filed on June 29, 2022 (File No. 001-14856)).](http://www.sec.gov/Archives/edgar/data/1070304/000119312522184321/d309438dex11.htm)\n\n \nExhibit 1.2\n \n  \n[Regulations of the Board of Directors of ORIX Corporation, as amended on July 21, 2017 (Incorporated by reference to the Annual Report on Form 20-F filed on June 28, 2018 (File No. 001-14856)).](http://www.sec.gov/Archives/edgar/data/1070304/000119312518206495/d454692dex12.htm)\n\n \nExhibit 1.3\n \n  \n[Share Handling Regulations of ORIX Corporation, as amended on January 6, 2025.](http://www.sec.gov/Archives/edgar/data/1070304/000119312525145217/d925000dex13.htm)\n\n \nExhibit 2.1\n \n  \n[Description of American Depositary Shares of ORIX Corporation (Incorporated by reference to the Registration Statement on Form F-3 ASR filed on July 2, 2009 (File No. 333-160410)).](http://www.sec.gov/Archives/edgar/data/1070304/000119312509143147/df3asr.htm#rom92941_7)\n\n \nExhibit 2.2\n \n  \n[Deposit Agreement, dated September 14, 1998, by and among ORIX Corporation, Citibank, N.A., as Depositary, and the Holders and Beneficial Owners of American Depositary Shares Evidenced by American Depositary Receipts (Incorporated by reference to the Registration Statement on Form F-3 ASR filed on July 2, 2009 (File No. 333-160410)).](http://www.sec.gov/Archives/edgar/data/1070304/000119312509143147/dex44.htm)\n\n \nExhibit 2.3\n \n  \n[Form of Amendment No. 1 to Deposit Agreement, by and among ORIX Corporation, Citibank, N.A. as Depositary, and all Holders and Beneficial Owners of American Depositary Shares issued thereunder (Incorporated by reference to the Registration Statement on Form F-6 filed on January 10, 2025 (File No. 333-09384)).](http://www.sec.gov/Archives/edgar/data/1070304/000119380525000027/e664111_ex99-ai.htm)\n\n \nExhibit 8.1\n \n  \n[List of subsidiaries and affiliates.](d29000dex81.htm)\n\n \nExhibit 11.1\n \n  \n[Code of Ethics, as amended on April 18, 2014 (Incorporated by reference to the Annual Report on Form 20-F filed on June 25, 2019 (File No. 001-14856).](http://www.sec.gov/Archives/edgar/data/1070304/000119312519180632/d642823dex111.htm)\n\n \nExhibit 11.2\n \n  \n[Insider Trading Policies (Incorporated by reference to the Annual Report on Form 20-F filed on June 27, 2024 (File No. 001-14856)).](http://www.sec.gov/Archives/edgar/data/1070304/000119312524169594/d793971dex112.htm)\n\n \nExhibit 12.1\n \n  \n[Certifications required by Rule 13a-14 (a) (17 CFR 240.13a-14 (a)) or Rule 15d-14 (a) (17 CFR 240.15d 14(a)).](d29000dex121.htm)\n\n \nExhibit 13.1\n \n  \n[Certifications required by Rule 13a-14 (b) (17 CFR 240.13a-14 (b)) or Rule 15d-14 (b) (17 CFR 240.15d 14 (b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350).](d29000dex131.htm)\n\n \nExhibit 15.1\n \n  \n[Consent of independent registered public accounting firm.](d29000dex151.htm)\n\n \nExhibit 97\n \n  \n[Compensation Clawback Policy (Incorporated by reference to the Annual Report on Form 20-F filed on June 27, 2024 (File No. 001-14856)).](http://www.sec.gov/Archives/edgar/data/1070304/000119312524169594/d793971dex97.htm)\n\n \nExhibit 101 INS\n \n  \nInline XBRL Instance Document—the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document.\n\n \nExhibit 101 SCH\n \n  \nInline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents.\n\n \nExhibit 104\n \n  \nCover Page formatted as Inline XBRL and contained in Exhibit 101\n\nWe have not included as exhibits certain instruments with relation to our long-term debt or the long-term debt of our subsidiaries. The total amount of securities of us or our subsidiaries authorized under any such instrument does not exceed 10% of our consolidated total assets. We hereby agree to furnish to the SEC, upon its request, a copy of any and all such instruments.\n\n \n\n191\n\n##### Table of Contents\n\nSIGNATURES\n\nThe company hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.\n\n \n\nORIX KABUSHIKI KAISHA\n\n \n\nBy:\n\n \n\n/s/ MASATAKA YAMADA\n\nName:\n\n \nMasataka Yamada\n\nTitle:\n\n \n\nSenior Managing Executive Officer\n\nChief Financial Officer and Chief Strategy Officer Responsible for Corporate Strategy and Management Unit\n\nDate: June 22, 2026\n\n \n\n192\n\n##### Table of Contents\n\nhttp://fasb.org/us-gaap/2025#Assetshttp://fasb.org/us-gaap/2025#Assetshttp://fasb.org/us-gaap/2025#OtherAssetsfalsehttp://fasb.org/us-gaap/2025#OtherAssetshttp://fasb.org/us-gaap/2025#OtherAssetshttp://fasb.org/us-gaap/2025#Liabilitieshttp://fasb.org/us-gaap/2025#LiabilitiesFY0001070304http://fasb.org/us-gaap/2025#NetInvestmentInLeasehttp://fasb.org/us-gaap/2025#NetInvestmentInLeasehttp://fasb.org/us-gaap/2025#OtherLiabilitieshttp://fasb.org/us-gaap/2025#OtherLiabilitieshttp://fasb.org/us-gaap/2025#Revenueshttp://orixcorp.com/20260331#UnrealizedGainsLossOnDerivativeInstrumentshttp://orixcorp.com/20260331#UnrealizedGainsLossOnDerivativeInstrumentshttp://orixcorp.com/20260331#UnrealizedGainsLossOnDerivativeInstrumentshttp://fasb.org/us-gaap/2025#Revenueshttp://fasb.org/us-gaap/2025#Revenueshttp://fasb.org/us-gaap/2025#Revenueshttp://fasb.org/us-gaap/2025#Revenueshttp://fasb.org/us-gaap/2025#OtherComprehensiveIncomeLossNetOfTaxhttp://orixcorp.com/20260331#InvestmentInSecuritieshttp://orixcorp.com/20260331#InvestmentInSecuritieshttp://orixcorp.com/20260331#InvestmentInSecuritieshttp://fasb.org/us-gaap/2025#LongTermDebthttp://fasb.org/us-gaap/2025#LongTermDebthttp://fasb.org/us-gaap/2025#OtherComprehensiveIncomeLossNetOfTaxhttp://fasb.org/us-gaap/2025#SellingGeneralAndAdministrativeExpensehttp://fasb.org/us-gaap/2025#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2025#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2025#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2025#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2025#OtherOperatingIncomeExpenseNethttp://fasb.org/us-gaap/2025#OtherOperatingIncomeExpenseNethttp://fasb.org/us-gaap/2025#OtherOperatingIncomeExpenseNethttp://fasb.org/us-gaap/2025#Liabilitieshttp://fasb.org/srt/2025#ChiefExecutiveOfficerMember\n\nINDEX TO CONSOLIDATED\nFINANCIAL\nSTATEMENTS\n\n \n\n \n  \n\nPage\n\n \n\n[Reports of Independent Registered Public Accounting Firm (KPMG AZSA LLC, Tokyo, Japan, Auditor Firm ID: 1009)](#fin29000_1)\n\n  \n \nF-2\n \n\n[Consolidated Balance Sheets as of March 31, 2025 and 2026](#fin29000_2)\n\n  \n \nF-6\n \n\n[Consolidated Statements of Income For the Years Ended March 31, 2024, 2025 and 2026](#fin29000_3)\n\n  \n \nF-8\n \n\n[Consolidated Statements of Comprehensive Income For the Years Ended March 31, 2024, 2025 and 2026](#fin29000_4)\n\n  \n \nF-10\n \n\n[Consolidated Statements of Changes in Equity For the Years Ended March 31, 2024, 2025 and 2026](#fin29000_5)\n\n  \n \nF-11\n \n\n[Consolidated Statements of Cash Flows For the Years Ended March 31, 2024, 2025 and 2026](#fin29000_6)\n\n  \n \nF-13\n \n\n[Notes to Consolidated Financial Statements](#fin29000_7)\n\n  \n \nF-14\n \n\n[Schedule II.—Valuation and Qualifying Accounts and Reserves](#fin29000_8)\n\n  \n \nF-173\n \n\n \n\nF-1\n\n[Table of Contents](#toc)\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Shareholders and the Board of Directors\n\nORIX Corporation\n\nOpinion on the Consolidated Financial Statements\n\nWe have audited the accompanying consolidated balance sheets of ORIX Corporation (a Japanese corporation) and its subsidiaries (the Group) as of March 31, 2026 and 2025, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the years in the\nthree-year\nperiod ended March 31, 2026, and the related notes and financial statement schedule II (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the\nthree-year\nperiod ended March 31, 2026, in conformity with U.S. generally accepted accounting principles.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Group’s internal control over financial reporting as of March 31, 2026, based on criteria established in\n\nInternal Control – Integrated Framework (2013)\n\n issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated June 22, 2026 expressed an unqualified opinion on the effectiveness of the Group’s internal control over financial reporting.\n\nBasis for Opinion\n\nThese consolidated financial statements are the responsibility of the Group’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical Audit Matters\n\nThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.\n\nAssessment of the fair value measurement of the convertible bond issued by AM Green (Luxembourg) S.à.r.l\n\nAs discussed in Note 2 to the consolidated financial statements, the Group’s financial assets measured at fair value on a recurring basis under Level 3 of the fair value hierarchy as of March 31, 2026, amounted to ¥551,431 million, which included a ¥115,931 million convertible bond. The convertible bond was issued by AM Green (Luxembourg) S.à.r.l and received in conjunction with the partial sale of shares in Greenko Energy Holdings (the Convertible Bond). The Convertible Bond is measured at fair value using discounted cash flow methodology to estimate the equity value as of the transaction date, then using a pricing model based on the Monte Carlo simulation to estimate the bond’s future conversion value and discounting it to the present value. The significant assumptions used in the discounted cash flow methodology include discount rates and future green ammonia sales prices and sales volumes for projected cash flows. The significant assumptions for the pricing model based on the Monte Carlo simulation include a discount rate and equity volatility.\n\n \n\nF-2\n\n[Table of Contents](#toc)\n\nWe identified the assessment of the fair value measurement of the Convertible Bond as a critical audit matter. A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment of the fair value measurement due to significant measurement uncertainty and subjectivity. Specifically, the assessment of the fair value measurement involved an evaluation of the discounted cash flow methodology and Monte Carlo model and certain significant assumptions. Such assumptions included discount rates, future green ammonia sales prices and sales volumes, and equity volatility. Additionally, minor changes in these key assumptions used for the valuation could have a significant effect on the fair value of the Convertible Bond.\n\nThe primary procedures we performed to address this critical audit matter were as follows. We evaluated the design and tested the operating effectiveness of certain internal controls related to the fair value measurement of the Convertible Bond specific to the discount rates, future green ammonia sales prices and sales volumes forming the basis of expected future cash flows, and equity volatility.\n\nIn addition, we involved valuation professionals with specialized skills and knowledge, who assisted in:\n\n \n\n \n•\n \n\nevaluating the Group’ discounted cash flow methodology and Monte Carlo model for compliance with U.S. generally accepted accounting principles\n\n \n\n \n•\n \n\nevaluating the discount rates by comparing to discount rate ranges that were developed using publicly available market data\n\n \n\n \n•\n \n\nevaluating the future green ammonia sales prices by comparing them with publicly available market data and assessing the price competitiveness in the market as a result of such comparison\n\n \n\n \n•\n \n\nevaluating the future green ammonia sales volumes developed by potential market share by analyzing government policies of the market in each related country and its price competitiveness\n\n \n\n \n•\n \n\nevaluating the equity volatility by comparing it to an equity volatility range that was independently developed using publicly available market data and\n\n \n\n \n•\n \n\nevaluating the fair value measured by management by comparing management’s fair value to a fair value that was independently developed using market assumptions and an independent pricing model based on the Monte Carlo simulation model.\n\nAssessment of the fair value measurement of the investment funds categorized as Level 3 financial\ninstruments\nin the fair value hierarchy\n\nAs discussed in Notes 1 and 2 to the consolidated financial statements, the Group’s financial assets measured at fair value on a recurring basis under Level 3 of the fair value hierarchy as of March 31, 2026 amounted to ¥551,431 million, which included ¥230,596 million of investment funds. Certain overseas subsidiaries are determined as investment companies under ASC 946 (“Financial Services—Investment Companies”) and hold investment funds measured at fair value with changes in fair value recognized in earnings on a recurring basis. These investment funds are classified as Level 3 in the fair value hierarchy, because the Group measures their fair value using valuation techniques with key inputs that are unobservable. The fair value of the Level 3 investment funds held by a certain investment company in the ORIX USA segment is estimated based on the fair value of the underlying equity investments measured using the market approach technique utilizing market multiples. Key assumptions used for the valuation include selection of comparable companies and relevant market data and determination of earnings before interest, taxes, depreciation and amortization (EBITDA) multiples.\n\nWe identified the assessment of the fair value measurement of the Level 3 investment funds held by the investment company in the ORIX USA segment as a critical audit matter. Due to the significant measurement uncertainty associated with the fair value of such investment funds, a high degree of subjectivity was involved in determining the valuation technique and the key assumptions, including selection of comparable companies and relevant market data and determination of EBITDA multiples. Minor changes in these key assumptions used for the valuation could have a significant effect on the Group’s net income. Therefore, a high degree of auditor judgment was required. Additionally, the audit effort associated with this estimate required specialized skills and knowledge.\n\nThe following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the fair value measurement process for the Level 3 investment funds, including controls over (1) the determination of the valuation technique and (2) the determination of the key assumptions used for the valuation. We involved valuation professionals with specialized skills and knowledge to assist in evaluating the reasonableness of management’s estimated fair value by comparing it with fair value estimates developed using independently determined valuation techniques, inputs and assumptions.\n\n \n\nF-3\n\n[Table of Contents](#toc)\n\nKPMG AZSA LLC\n\nWe have served as the Group’s auditor since 1985.\n\nTokyo, Japan\n\nJune 22, 2026\n\n \n\nF-\n4\n\n[Table of Contents](#toc)\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Shareholders and the Board of Directors\n\nORIX Corporation\n\nOpinion on Internal Control Over Financial Reporting\n\nWe have audited ORIX Corporation (a Japanese corporation) and subsidiaries’ (the Group) internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Group as of March 31, 2026 and 2025, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the years in the three-year period ended March 31, 2026, and the related notes and financial statement schedule II (collectively, the consolidated financial statements), and our report dated June 22, 2026 expressed an unqualified opinion on those consolidated financial statements.\n\nBasis for Opinion\n\nThe Group’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Group’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.\n\nDefinition and Limitations of Internal Control Over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nKPMG AZSA LLC\n\nTokyo, Japan\n\nJune 22, 2026\n\n \n\nF-\n5\n\n[Table of Contents](#toc)\n\nCONSOLIDATED BALANCE SHEETS\n\nAS OF MARCH 31, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nASSETS\n\n  \n\n \n\nCash and Cash Equivalents\n\n  \n¥\n1,206,573\n \n \n¥\n1,334,945\n \n\nRestricted Cash\n\n  \n \n115,410\n \n \n \n116,154\n \n\nNet investment in Leases\n\n  \n \n1,167,380\n \n \n \n1,247,491\n \n\nInstallment Loans\n\n  \n \n4,081,019\n \n \n \n4,173,582\n \n\nThe amounts which are measured at fair value by electing the fair value option are as follows:\n\n \n\nMarch 31, 2025\n\n  \n\n¥97,694 million\n\n  \n\n \n\nMarch 31, 2026\n\n  \n\n¥78,020 million\n\n  \n\n \n\nAllowance for Credit Losses\n\n  \n \n(56,769\n) \n \n \n(80,194\n)\n \n\nInvestment in Operating Leases\n\n  \n \n1,967,178\n \n \n \n2,152,820\n \n\nInvestment in Securities\n\n  \n \n3,234,547\n \n \n \n3,308,829\n \n\nThe amounts which are measured at fair value by electing the fair value option are as follows:\n\n \n\nMarch 31, 2025\n\n  \n\n¥41,018 million\n\n  \n\n \n\nMarch 31, 2026\n\n  \n\n¥39,796 million\n\n  \n\n \n\nThe amounts which are associated to\n\navailable-for-sale\n\ndebt securities are as follows:\n\n \n\nAs of March 31, 2025\n\n \n\nAmortized Cost\n\n  \n\n¥3,174,036 million\n\n  \n\n \n\nAllowance for Credit Losses\n\n  \n\n¥(670) million\n\n  \n\n \n\nAs of March 31, 2026\n\n \n\nAmortized Cost\n\n  \n\n¥3,403,138 million\n\n  \n\n \n\nAllowance for Credit Losses\n\n  \n\n¥(3,505) million\n\n  \n\n \n\nProperty under Facility Operations\n\n  \n \n771,851\n \n \n \n779,075\n \n\nEquity method investments\n\n  \n \n1,320,015\n \n \n \n1,306,312\n \n\nTrade Notes, Accounts and Other Receivable\n\n  \n \n411,012\n \n \n \n495,905\n \n\nInventories\n\n  \n \n229,229\n \n \n \n269,187\n \n\nOffice Facilities\n\n  \n \n191,957\n \n \n \n203,169\n \n\nOther Assets\n\n  \n \n2,226,849\n \n \n \n2,695,501\n \n\nThe amounts which are measured at fair value by electing the fair value option are as follows:\n\n \n\nMarch 31, 2025\n\n  \n\n¥2,586 million\n\n  \n\n \n\nMarch 31, 2026\n\n  \n\n¥1,163 million\n\n  \n\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Assets\n\n  \n¥\n16,866,251\n \n \n¥\n18,002,776\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNote:\n\n \nThe assets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of those VIEs are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n  2025  \n\n \n\n  \n\n  2026  \n\n \n\nCash and Cash Equivalents\n\n  \n¥\n1,333\n \n  \n¥\n   568\n \n\nNet Investment in Leases (Net of Allowance for Credit Losses)\n\n  \n \n6,482\n \n  \n \n16,322\n \n\nInstallment Loans (Net of Allowance for Credit Losses)\n\n  \n \n71,668\n \n  \n \n29,696\n \n\nInvestment in Operating Leases\n\n  \n \n77,480\n \n  \n \n82,491\n \n\nProperty under Facility Operations\n\n  \n \n91,323\n \n  \n \n72,350\n \n\nEquity method Investments\n\n  \n \n49,409\n \n  \n \n0\n \n\nOther\n\n  \n \n45,402\n \n  \n \n34,319\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n   343,097\n \n  \n¥\n235,746\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-\n6\n\n[Table of Contents](#toc)\n\nCONSOLIDATED BALANCE SHEETS—(Continued)\n\nAS OF MARCH 31, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nLIABILITIES AND EQUITY\n\n  \n\n \n\nLiabilities:\n\n  \n\n \n\nShort-term Debt\n\n  \n¥\n549,680\n \n \n¥\n572,235\n \n\nDeposits\n\n  \n \n2,449,812\n \n \n \n2,625,556\n \n\nTrade Notes, Accounts and Other Payable\n\n  \n \n339,787\n \n \n \n356,008\n \n\nPolicy Liabilities and Policy Account Balances\n\n  \n \n1,948,047\n \n \n \n1,943,710\n \n\nThe amounts which are measured at fair value by electing the fair value option are as follows:\n\n \n\n \n\nMarch 31, 2025\n\n  \n\n¥136,257 million\n\n  \n\n \n\nMarch 31, 2026\n\n  \n\n¥138,027 million\n\n  \n\n \n\nIncome Taxes:\n\n  \n\n \n\nCurrent\n\n  \n \n53,149\n \n \n \n76,733\n \n\nDeferred\n\n  \n \n525,632\n \n \n \n611,051\n \n\nLong-term Debt\n\n  \n \n5,733,118\n \n \n \n5,965,759\n \n\nOther Liabilities\n\n  \n \n1,091,811\n \n \n \n1,227,913\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Liabilities\n\n  \n \n12,691,036\n \n \n \n13,378,965\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRedeemable Noncontrolling Interests\n\n  \n \n3,432\n \n \n \n50,743\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCommitments and Contingent Liabilities\n\n  \n\n \n\nEquity:\n\n  \n\n \n\nCommon stock:\n\n  \n \n221,111\n \n \n \n221,111\n \n\nAuthorized:\n\n  \n\n2,590,000,000 shares\n\n  \n\n \n\nIssued:\n\n  \n\n \n\nMarch 31, 2025\n\n  \n\n1,162,962,244 shares\n\n  \n\n \n\nMarch 31, 2026\n\n  \n\n1,124,106,624 shares\n\n  \n\n \n\nAdditional\nPaid-in\nCapital\n\n  \n \n234,193\n \n \n \n235,239\n \n\nRetained Earnings\n\n  \n \n3,354,911\n \n \n \n3,502,509\n \n\nAccumulated Other Comprehensive Income\n\n  \n \n341,298\n \n \n \n605,110\n \n\nTreasury Stock, at Cost:\n\n  \n \n(61,731\n) \n \n \n(81,469\n)\n \n\nMarch 31, 2025\n\n  \n\n26,672,695 shares\n\n  \n\n \n\nMarch 31, 2026\n\n  \n\n25,519,804 shares\n\n  \n\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nORIX Corporation Shareholders’ Equity\n\n  \n \n4,089,782\n \n \n \n4,482,500\n \n\nNoncontrolling Interests\n\n  \n \n82,001\n \n \n \n90,568\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Equity\n\n  \n \n4,171,783\n \n \n \n4,573,068\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Liabilities and Equity\n\n  \n¥\n16,866,251\n \n \n¥\n18,002,776\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNotes:\n \n\n1.  The Company’s shares held through the Board Incentive Plan Trust (3,413,000 shares as of March 31, 2025 and 3,035,102 shares as of March 31, 2026) are included in the number of treasury stock as of March 31, 2025 and 2026.\n\n \n\n2.  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 as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nTrade Notes, Accounts and Other Payable\n\n  \n \n525\n \n \n \n688\n \n\nLong-Term Debt\n\n  \n \n199,360\n \n \n \n142,028\n \n\nOther\n\n  \n \n16,749\n \n \n \n12,490\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n   216,634\n  \n \n¥\n155,206\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes to consolidated financial statements are an integral part of these statements.\n\n \n\nF-\n7\n\n[Table of Contents](#toc)\n\nCONSOLIDATED STATEMENTS OF INCOME\n\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\n  2024  \n\n \n\n \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nRevenues:\n\n \n\n \n\n \n\nFinance revenues\n\n \n¥\n348,001\n  \n \n¥\n328,356\n   \n \n¥\n365,570\n \n\nGains on investment securities and dividends\n\n \n \n33,023\n \n \n \n14,324\n \n \n \n128,948\n \n\nOperating leases\n\n \n \n535,490\n \n \n \n624,444\n \n \n \n641,185\n \n\nLife insurance premiums and related investment income\n\n \n \n558,923\n \n \n \n515,259\n \n \n \n640,159\n \n\nSales of goods and real estate\n\n \n \n373,914\n \n \n \n373,155\n \n \n \n442,586\n \n\nServices income\n\n \n \n965,010\n \n \n \n1,019,283\n \n \n \n1,112,383\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues\n\n \n \n2,814,361\n \n \n \n2,874,821\n \n \n \n3,330,831\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nExpenses:\n\n \n\n \n\n \n\nInterest expense\n\n \n \n188,328\n \n \n \n169,051\n \n \n \n193,889\n \n\nCosts of operating leases\n\n \n \n356,760\n \n \n \n394,821\n \n \n \n411,939\n \n\nLife insurance costs\n\n \n \n433,863\n \n \n \n384,753\n \n \n \n479,937\n \n\nCosts of goods and real estate sold\n\n \n \n268,627\n \n \n \n271,833\n \n \n \n331,988\n \n\nServices expense\n\n \n \n560,101\n \n \n \n604,145\n \n \n \n634,329\n \n\nOther (income) and expense\n\n \n \n(4,671\n) \n \n \n27,128\n \n \n \n58,803\n \n\nSelling, general and administrative expenses\n\n \n \n627,633\n \n \n \n646,054\n \n \n \n711,775\n \n\nProvision for credit losses\n\n \n \n20,968\n \n \n \n18,723\n \n \n \n34,017\n \n\nWrite-downs of long-lived assets\n\n \n \n1,724\n \n \n \n25,933\n \n \n \n16,242\n \n\nWrite-downs of securities\n\n \n \n315\n \n \n \n554\n \n \n \n1,664\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal expenses\n\n \n \n2,453,648\n \n \n \n2,542,995\n \n \n \n2,874,583\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOperating Income\n\n \n \n360,713\n \n \n \n331,826\n \n \n \n456,248\n \n\nEquity in Net Income of Equity method investments\n\n \n \n36,774\n \n \n \n57,182\n \n \n \n123,872\n \n\nGains on Sales of Subsidiaries and Equity method investments and Liquidation Losses, net\n\n \n \n72,488\n \n \n \n87,705\n \n \n \n111,311\n \n\nBargain Purchase Gain\n\n \n \n0\n \n \n \n3,750\n \n \n \n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIncome before Income Taxes\n\n \n \n469,975\n \n \n \n480,463\n \n \n \n691,431\n \n\nProvision for Income Taxes\n\n \n \n131,388\n \n \n \n128,828\n \n \n \n233,103\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet Income\n\n \n \n338,587\n \n \n \n351,635\n \n \n \n458,328\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet Income (Loss) Attributable to the Noncontrolling Interests\n\n \n \n(7,682\n) \n \n \n(389\n) \n \n \n11,821\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet Income (Loss) Attributable to the Redeemable Noncontrolling Interests\n\n \n \n137\n \n \n \n394\n \n \n \n(758\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet Income Attributable to ORIX Corporation Shareholders\n\n \n¥\n346,132\n \n \n¥\n351,630\n \n \n¥\n447,265\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n8\n\n[Table of Contents](#toc)\n\nCONSOLIDATED STATEMENTS OF INCOME—(Continued)\n\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\n \n\nYen\n\n \n\n \n\n \n\n  2024  \n\n \n\n \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nAmounts per Share of Common Stock for Income Attributable to ORIX Corporation Shareholders:\n\n \n\n \n\n \n\nBasic:\n\n \n\n \n\n \n\nNet Income Attributable to ORIX Corporation Shareholders\n\n \n¥\n 298.55\n  \n \n¥\n 307.74\n  \n \n¥\n 400.27\n \n\nDiluted:\n\n \n\n \n\n \n\nNet Income Attributable to ORIX Corporation Shareholders\n\n \n¥\n298.05\n \n \n¥\n307.16\n \n \n¥\n399.40\n \n\nCash Dividends\n\n \n \n85.60\n \n \n \n117.97\n \n \n \n151.60\n \n\nThe accompanying notes to consolidated financial statements are an integral part of these statements.\n\n \n\nF-\n9\n\n[Table of Contents](#toc)\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\nNet Income\n\n  \n¥\n 338,587\n \n \n¥\n351,635\n \n \n¥\n458,328\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther comprehensive income (loss), net of tax:\n\n  \n\n \n\n \n\nNet change of unrealized gains (losses) on investment in securities\n\n  \n \n(67,762\n) \n \n \n(153,108\n) \n \n \n(214,449\n)\n\nImpact of changes in policy liability discount rate\n\n  \n \n93,269\n \n \n \n158,339\n \n \n \n299,258\n \n\nNet change of debt valuation adjustments\n\n  \n \n(191\n) \n \n \n(35\n) \n \n \n193\n \n\nNet change of defined benefit pension plans\n\n  \n \n13,293\n \n \n \n5,128\n \n \n \n17,167\n \n\nNet change of foreign currency translation adjustments\n\n  \n \n173,304\n \n \n \n(20,060\n) \n \n \n171,936\n \n\nNet change of unrealized gains (losses) on derivative instruments\n\n  \n \n(5,875\n) \n \n \n(6,403\n) \n \n \n(2,840\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income (loss)\n\n  \n \n206,038\n \n \n \n(16,139\n) \n \n \n271,265\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive Income\n\n  \n \n544,625\n \n \n \n335,496\n \n \n \n729,593\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive Income (loss) Attributable to the Noncontrolling Interests\n\n  \n \n(3,035\n) \n \n \n(492\n) \n \n \n15,771\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive Income Attributable to the Redeemable Noncontrolling Interests\n\n  \n \n350\n \n \n \n344\n \n \n \n2,773\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive Income Attributable to ORIX Corporation Shareholders\n\n  \n¥\n547,310\n \n \n¥\n 335,644\n \n \n¥\n 711,049\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes to consolidated financial statements are an integral part of these statements.\n\n \n\nF-\n10\n\n[Table of Contents](#toc)\n\nCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY\n\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nORIX Corporation Shareholders’ Equity\n\n \n\n \n\nTotal ORIX\n\nCorporation\n\nShareholders’\n\nEquity\n\n \n\n \n\nNoncontrolling\n\nInterests\n\n \n\n \n\nTotal\n\nEquity\n\n \n\n \n\n \n\nCommon\n\nStock\n\n \n\n \n\nAdditional\n\nPaid-in\n\nCapital\n\n \n\n \n\nRetained\n\nEarnings\n\n \n\n \n\nAccumulated\nOther\n\nComprehensive\n\nIncome (Loss)\n\n \n\n \n\nTreasury\n\nStock\n\n \n\nBalance at March 31, 2023\n\n \n¥\n221,111\n \n \n¥\n233,169\n \n \n¥\n3,054,448\n \n \n¥\n156,135\n \n \n¥\n(121,256\n) \n \n¥\n3,543,607\n \n \n¥\n70,715\n \n \n¥\n3,614,322\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nContribution to subsidiaries\n\n \n\n \n\n \n\n \n\n \n\n \n \n0\n \n \n \n18,357\n \n \n \n18,357\n \n\nTransaction with noncontrolling interests\n\n \n\n \n \n86\n \n \n\n \n \n(165\n) \n \n\n \n \n(79\n) \n \n \n(3,470\n) \n \n \n(3,549\n) \n\nComprehensive income (loss), net of tax:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss)\n\n \n\n \n\n \n \n346,132\n \n \n\n \n\n \n \n346,132\n \n \n \n(7,682\n) \n \n \n338,450\n \n\nOther comprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet change of unrealized gains (losses) on investment in securities\n\n \n\n \n\n \n\n \n \n(67,772\n) \n \n\n \n \n(67,772\n) \n \n \n0\n \n \n \n(67,772\n) \n\nImpact of changes in policy liability discount rate\n\n \n\n \n\n \n\n \n \n93,269\n \n \n\n \n \n93,269\n \n \n \n0\n \n \n \n93,269\n \n\nNet change of debt valuation adjustments\n\n \n\n \n\n \n\n \n \n(191\n) \n \n\n \n \n(191\n) \n \n \n0\n \n \n \n(191\n) \n\nNet change of defined benefit pension plans\n\n \n\n \n\n \n\n \n \n13,287\n \n \n\n \n \n13,287\n \n \n \n6\n \n \n \n13,293\n \n\nNet change of foreign currency translation adjustments\n\n \n\n \n\n \n\n \n \n168,285\n \n \n\n \n \n168,285\n \n \n \n4,816\n \n \n \n173,101\n \n\nNet change of unrealized gains (losses) on derivative instruments\n\n \n\n \n\n \n\n \n \n(5,700\n) \n \n\n \n \n(5,700\n) \n \n \n(175\n) \n \n \n(5,875\n) \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n \n201,178\n \n \n \n4,647\n \n \n \n205,825\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal comprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n \n547,310\n \n \n \n(3,035\n) \n \n \n544,275\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash dividends\n\n \n\n \n\n \n \n(99,900\n) \n \n\n \n\n \n \n(99,900\n) \n \n \n(2,068\n) \n \n \n(101,968\n) \n\nAcquisition of treasury stock\n\n \n\n \n\n \n\n \n\n \n \n(50,001\n) \n \n \n(50,001\n) \n \n \n0\n \n \n \n(50,001\n) \n\nDisposal of treasury stock\n\n \n\n \n \n(227\n) \n \n\n \n\n \n \n277\n \n \n \n50\n \n \n \n0\n \n \n \n50\n \n\nCancellation of treasury stock\n\n \n\n \n \n(49\n) \n \n \n(40,951\n) \n \n\n \n \n41,000\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther, net\n\n \n\n \n \n478\n \n \n \n1\n \n \n\n \n\n \n \n479\n \n \n \n0\n \n \n \n479\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2024\n\n \n¥\n221,111\n \n \n¥\n233,457\n \n \n¥\n3,259,730\n \n \n¥\n357,148\n \n \n¥\n(129,980\n) \n \n¥\n3,941,466\n \n \n¥\n80,499\n \n \n¥\n4,021,965\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCumulative effect of adopting Accounting Standards Update 2023-02\n\n \n\n \n\n \n¥\n(157\n) \n \n\n \n\n \n¥\n(157\n) \n \n \n0\n \n \n¥\n(157\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at April 1, 2024\n\n \n¥\n221,111\n \n \n¥\n233,457\n \n \n¥\n3,259,573\n \n \n¥\n357,148\n \n \n¥\n(129,980\n) \n \n¥\n3,941,309\n \n \n¥\n80,499\n \n \n¥\n4,021,808\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nContribution to subsidiaries\n\n \n\n \n\n \n\n \n\n \n\n \n \n—\n \n \n \n10,736\n \n \n \n10,736\n \n\nTransaction with noncontrolling interests\n\n \n\n \n \n83\n \n \n\n \n \n136\n \n \n\n \n \n219\n \n \n \n(7,451\n) \n \n \n(7,232\n) \n\nComprehensive income (loss), net of tax:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss)\n\n \n\n \n\n \n \n351,630\n \n \n\n \n\n \n \n351,630\n \n \n \n(389\n) \n \n \n351,241\n \n\nOther comprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet change of unrealized gains (losses) on investment in securities\n\n \n\n \n\n \n\n \n \n(153,108\n) \n \n\n \n \n(153,108\n) \n \n \n0\n \n \n \n(153,108\n) \n\nImpact of changes in policy liability discount rate\n\n \n\n \n\n \n\n \n \n158,339\n \n \n\n \n \n158,339\n \n \n \n0\n \n \n \n158,339\n \n\nNet change of debt valuation adjustments\n\n \n\n \n\n \n\n \n \n(35\n) \n \n\n \n \n(35\n) \n \n \n0\n \n \n \n(35\n) \n\nNet change of defined benefit pension plans\n\n \n\n \n\n \n\n \n \n5,121\n \n \n\n \n \n5,121\n \n \n \n7\n \n \n \n5,128\n \n\nNet change of foreign currency translation adjustments\n\n \n\n \n\n \n\n \n \n(19,687\n) \n \n\n \n \n(19,687\n) \n \n \n(323\n) \n \n \n(20,010\n) \n\nNet change of unrealized gains (losses) on derivative instruments\n\n \n\n \n\n \n\n \n \n(6,616\n) \n \n\n \n \n(6,616\n) \n \n \n213\n \n \n \n(6,403\n) \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n \n(15,986\n) \n \n \n(103\n) \n \n \n(16,089\n) \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal comprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n \n335,644\n \n \n \n(492\n) \n \n \n335,152\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash dividends\n\n \n\n \n\n \n \n(135,590\n) \n \n\n \n\n \n \n(135,590\n) \n \n \n(1,291\n) \n \n \n(136,881\n) \n\nAcquisition of treasury stock\n\n \n\n \n\n \n\n \n\n \n \n(53,518\n) \n \n \n(53,518\n) \n \n \n0\n \n \n \n(53,518\n) \n\nDisposal of treasury stock\n\n \n\n \n \n(654\n) \n \n\n \n\n \n \n917\n \n \n \n263\n \n \n \n0\n \n \n \n263\n \n\nCancellation of treasury stock\n\n \n\n \n \n(149\n) \n \n \n(120,702\n) \n \n\n \n \n120,851\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther, net\n\n \n\n \n \n1,456\n \n \n\n \n\n \n \n(1\n) \n \n \n1,455\n \n \n \n0\n \n \n \n1,455\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2025\n\n \n¥\n221,111\n \n \n¥\n234,193\n \n \n¥\n3,354,911\n \n \n¥\n341,298\n \n \n¥\n(61,731\n) \n \n¥\n4,089,782\n \n \n¥\n82,001\n \n \n¥\n4,171,783\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-1\n1\n\n[Table of Contents](#toc)\n\nCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)\n\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nORIX Corporation Shareholders’ Equity\n\n \n\n \n\nTotal ORIX\n\nCorporation\n\nShareholders’\n\nEquity\n\n \n\n \n\nNoncontrolling\n\nInterests\n\n \n\n \n\nTotal\n\nEquity\n\n \n\n \n\n \n\nCommon\n\nStock\n\n \n\n \n\nAdditional\n\nPaid-in\n\nCapital\n\n \n\n \n\nRetained\n\nEarnings\n\n \n\n \n\nAccumulated\n\nOther\n\nComprehensive\n\nIncome (Loss)\n\n \n\n \n\nTreasury\n\nStock\n\n \n\nBalance at March 31, 2025\n\n \n¥\n221,111\n \n \n¥\n234,193\n \n \n¥\n3,354,911\n \n \n¥\n341,298\n \n \n¥\n(61,731\n) \n \n¥\n4,089,782\n \n \n¥\n82,001\n \n \n¥\n4,171,783\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nContribution to subsidiaries\n\n \n\n \n\n \n\n \n\n \n\n \n \n0\n \n \n \n14,457\n \n \n \n14,457\n \n\nTransaction with noncontrolling interests\n\n \n\n \n \n344\n \n \n\n \n \n28\n \n \n\n \n \n372\n \n \n \n(13,291\n) \n \n \n(12,919\n) \n\nComprehensive income, net of tax:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n\n \n \n447,265\n \n \n\n \n\n \n \n447,265\n \n \n \n11,821\n \n \n \n459,086\n \n\nOther comprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet change of unrealized gains (losses) on investment in securities\n\n \n\n \n\n \n\n \n \n(214,437\n) \n \n\n \n \n(214,437\n) \n \n \n0\n \n \n \n(214,437\n)\n\nImpact of changes in policy liability discount rate\n\n \n\n \n\n \n\n \n \n299,258\n \n \n\n \n \n299,258\n \n \n \n0\n \n \n \n299,258\n \n\nNet change of debt valuation adjustments\n\n \n\n \n\n \n\n \n \n193\n \n \n\n \n \n193\n \n \n \n0\n \n \n \n193\n \n\nNet change of defined benefit pension plans\n\n \n\n \n\n \n\n \n \n17,162\n \n \n\n \n \n17,162\n \n \n \n5\n \n \n \n17,167\n \n\nNet change of foreign currency translation adjustments\n\n \n\n \n\n \n\n \n \n164,577\n \n \n\n \n \n164,577\n \n \n \n3,816\n \n \n \n168,393\n \n\nNet change of unrealized gains (losses) on derivative instruments\n\n \n\n \n\n \n\n \n \n(2,969\n)\n \n\n \n \n(2,969\n)\n \n \n129\n \n \n \n(2,840\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n \n263,784\n \n \n \n3,950\n \n \n \n267,734\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal comprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n \n711,049\n \n \n \n15,771\n \n \n \n726,820\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash dividends\n\n \n\n \n\n \n \n(170,803\n)\n \n\n \n\n \n \n(170,803\n)\n \n \n(8,370\n)\n \n \n(179,173\n)\n\nAcquisition of treasury stock\n\n \n\n \n\n \n\n \n\n \n \n(150,002\n)\n \n \n(150,002\n)\n \n \n0\n \n \n \n(150,002\n)\n\nDisposal of treasury stock\n\n \n\n \n \n(906\n)\n \n\n \n\n \n \n1,264\n \n \n \n358\n \n \n \n0\n \n \n \n358\n \n\nCancellation of treasury stock\n\n \n\n \n \n(137\n) \n \n \n(128,864\n) \n \n\n \n \n129,001\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther, net\n\n \n\n \n \n1,745\n \n \n\n \n\n \n \n(1\n)\n \n \n1,744\n \n \n \n0\n \n \n \n1,744\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2026\n\n \n¥\n221,111\n \n \n¥\n235,239\n \n \n¥\n3,502,509\n \n \n¥\n605,110\n \n \n¥\n(81,469\n)\n \n¥\n4,482,500\n \n \n¥\n90,568\n \n \n¥\n4,573,068\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNote:\n\n \nChanges in the redeemable noncontrolling interests are not included in this table. For further information, see Note 18 “Redeemable Noncontrolling Interests.”\n\nThe accompanying notes to consolidated financial statements are an integral part of these statements.\n\n \n\nF-1\n2\n\n[Table of Contents](#toc)\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\nCash Flows from Operating Activities:\n\n  \n\n \n\n \n\nNet income\n\n  \n¥\n338,587\n \n \n¥\n351,635\n \n \n¥\n458,328\n \n\nAdjustments to reconcile net income to net cash provided by operating activities:\n\n  \n\n \n\n \n\nDepreciation and amortization\n\n  \n \n364,242\n \n \n \n399,527\n \n \n \n404,791\n \n\nPrincipal payments received under net investment in leases\n\n  \n \n475,730\n \n \n \n495,717\n \n \n \n505,410\n \n\nProvision for credit losses\n\n  \n \n20,968\n \n \n \n18,723\n \n \n \n34,017\n \n\nEquity in net income of equity method investments\n\n  \n \n(36,774\n) \n \n \n(57,182\n) \n \n \n(123,872\n)\n\nGains on sales of subsidiaries and equity method investments and liquidation losses, net\n\n  \n \n(72,488\n) \n \n \n(87,705\n) \n \n \n(111,311\n)\n\nBargain purchase gain\n\n  \n \n0\n \n \n \n(3,750\n) \n \n \n0\n \n\n(Gains) Losses on sales of securities other than trading\n\n  \n \n(3,943\n) \n \n \n6,772\n \n \n \n(679\n)\n\nGains on sales of operating lease assets\n\n  \n \n(53,441\n) \n \n \n(76,633\n) \n \n \n(70,115\n)\n\nWrite-downs of long-lived assets\n\n  \n \n1,724\n \n \n \n25,933\n \n \n \n16,242\n \n\nWrite-downs of securities\n\n  \n \n315\n \n \n \n554\n \n \n \n1,664\n \n\nDeferred tax provision\n\n  \n \n20,000\n \n \n \n23,346\n \n \n \n90,387\n \n\n(Increase) Decrease in trading securities\n\n  \n \n(8,041\n) \n \n \n28,487\n \n \n \n(6,564\n)\n\nIncrease in inventories\n\n  \n \n(58,126\n) \n \n \n(9,839\n) \n \n \n(39,823\n)\n\n(Increase) Decrease in trade notes, accounts and other receivable\n\n  \n \n5,235\n \n \n \n(2,641\n) \n \n \n4,556\n \n\nIncrease (Decrease) in trade notes, accounts and other payable\n\n  \n \n(4,427\n) \n \n \n(3,910\n) \n \n \n1,065\n \n\nIncrease in policy liabilities and policy account balances\n\n  \n \n186,193\n \n \n \n268,258\n \n \n \n395,623\n \n\nIncrease (Decrease) in income taxes payable\n\n  \n \n107,881\n \n \n \n(9,232\n) \n \n \n25,872\n \n\nOther, net\n\n  \n \n(40,233\n) \n \n \n(67,867\n) \n \n \n(216,024\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash provided by operating activities\n\n  \n \n1,243,402\n \n \n \n1,300,193\n \n \n \n1,369,567\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash Flows from Investing Activities:\n\n  \n\n \n\n \n\nPurchases of lease equipment\n\n  \n \n(1,124,207\n) \n \n \n(1,288,608\n) \n \n \n(1,257,360\n)\n\nOriginations of installment loans\n\n  \n \n(1,429,738\n) \n \n \n(1,506,006\n) \n \n \n(1,639,829\n)\n\nPrincipal collected on installment loans\n\n  \n \n1,356,586\n \n \n \n1,302,302\n \n \n \n1,498,876\n \n\nProceeds from sales of operating lease assets\n\n  \n \n262,724\n \n \n \n373,804\n \n \n \n352,491\n \n\nInvestments in equity method investees, net\n\n  \n \n(166,640\n) \n \n \n(64,985\n) \n \n \n(30,922\n)\n\nProceeds from sales of equity method investments\n\n  \n \n23,967\n \n \n \n95,789\n \n \n \n131,813\n \n\nPurchases of\n\navailable-for-sale\n\ndebt securities\n\n  \n \n(570,241\n) \n \n \n(700,403\n) \n \n \n(539,889\n)\n\nProceeds from sales of\n\navailable-for-sale\n\ndebt securities\n\n  \n \n197,640\n \n \n \n289,170\n \n \n \n341,633\n \n\nProceeds from redemption of\n\navailable-for-sale\n\ndebt securities\n\n  \n \n47,280\n \n \n \n257,338\n \n \n \n161,241\n \n\nPurchases of equity securities other than trading\n\n  \n \n(57,819\n) \n \n \n(76,767\n) \n \n \n(98,026\n)\n\nProceeds from sales of equity securities other than trading\n\n  \n \n54,728\n \n \n \n31,594\n \n \n \n141,753\n \n\nPurchases of property under facility operations\n\n  \n \n(76,667\n) \n \n \n(69,064\n) \n \n \n(75,075\n)\n\nAcquisitions of subsidiaries, net of cash acquired\n\n  \n \n(42,486\n) \n \n \n(89,871\n) \n \n \n(129,036\n)\n\nSales of subsidiaries, net of cash disposed\n\n  \n \n139,525\n \n \n \n111,043\n \n \n \n39,696\n \n\nOther, net\n\n  \n \n12,545\n \n \n \n24,969\n \n \n \n(12,037\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash used in investing activities\n\n  \n \n(1,372,803\n) \n \n \n(1,309,695\n) \n \n \n(1,114,671\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash Flows from Financing Activities:\n\n  \n\n \n\n \n\nNet increase (decrease) in debt with maturities of three months or less\n\n  \n \n10,751\n \n \n \n(98,621\n) \n \n \n55,427\n \n\nProceeds from debt with maturities longer than three months\n\n  \n \n1,218,867\n \n \n \n1,549,750\n \n \n \n1,210,761\n \n\nRepayment of debt with maturities longer than three months\n\n  \n \n(1,177,803\n) \n \n \n(1,368,479\n) \n \n \n(1,217,574\n)\n\nNet increase (decrease) in deposits due to customers\n\n  \n \n(1,572\n) \n \n \n204,034\n \n \n \n175,554\n \n\nCash dividends paid to ORIX Corporation Shareholders\n\n  \n \n(99,900\n) \n \n \n(135,590\n) \n \n \n(170,803\n)\n\nAcquisition of treasury stock\n\n  \n \n(50,001\n) \n \n \n(53,518\n) \n \n \n(150,002\n)\n\nContribution from noncontrolling interests\n\n  \n \n15,621\n \n \n \n3,577\n \n \n \n1,350\n \n\nPurchases of shares of subsidiaries from noncontrolling interests\n\n  \n \n(108\n) \n \n \n(521\n) \n \n \n(585\n)\n\nNet increase (decrease) in call money\n\n  \n \n0\n \n \n \n50,000\n \n \n \n(55,000\n)\n\nOther, net\n\n  \n \n(1,332\n) \n \n \n(1,310\n) \n \n \n(9,663\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash provided by (used in) financing activities\n\n  \n \n(85,477\n) \n \n \n149,322\n \n \n \n(160,535\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash\n\n  \n \n33,277\n \n \n \n(3,144\n) \n \n \n34,755\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet increase (decrease) in Cash, Cash Equivalents and Restricted Cash\n\n  \n \n(181,601\n) \n \n \n136,676\n \n \n \n129,116\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash, Cash Equivalents and Restricted Cash at Beginning of Year\n\n  \n \n1,366,908\n \n \n \n1,185,307\n \n \n \n1,321,983\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash, Cash Equivalents and Restricted Cash at End of Year\n\n  \n¥\n1,185,307\n \n \n¥\n1,321,983\n \n \n¥\n1,451,099\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nThe accompanying notes to consolidated financial statements are an integral part of these statements.\n\n \n\nF-1\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nORIX Corporation and Subsidiaries\n\n1. Significant Accounting and Reporting Policies\n\nIn 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”). Significant accounting and reporting policies are summarized as follows:\n\n(a) Basis of presenting financial statements\n\nThe Company and its subsidiaries in Japan maintain their books in conformity with Japanese accounting practices, which differ in certain respects from U.S. GAAP.\n\nThe accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP and, therefore, reflect certain adjustments to the books and records of the Company and its subsidiaries. The principal adjustments relate to initial direct costs to originate leases, loan origination fees and related direct loan origination costs, accounting for allowance for credit losses, use of a straight-line basis of depreciation for operating lease assets, deferral of life insurance policy acquisition costs, calculation of insurance policy liabilities, accounting for goodwill and other intangible assets in business combinations, accounting for pension plans, accounting for sales of the parent’s ownership interest in subsidiaries, classification in the statements of cash flows, accounting for transfer of financial assets, accounting for investment in securities, accounting for fair value option, accounting for lessee’s lease and reflection of the income tax effect on such adjustments.\n\n(b) Principles of consolidation\n\nConsolidated subsidiaries\n\nThe consolidated financial statements include the accounts of the Company and all of its subsidiaries. VIEs, for which the Company and its subsidiaries are the primary beneficiaries, are also included in the consolidated financial statements.\n\nIn 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. On the other hand, 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.\n\nA certain overseas subsidiary consolidates subsidiaries determined as investment companies under ASC 946 (“Financial Services—Investment Companies”). Investments held by the investment company subsidiaries are carried at fair value with changes in fair value recognized in earnings.\n\nAll significant intercompany accounts and transactions have been eliminated in preparing our consolidated financial statements.\n\nEquity method investees\n\n(1) Investment in corporate entities\n\nInvestments in corporate entities, in which the Company and its subsidiaries have 20% – 50% ownership or has the ability to exercise significant influence, are accounted for by using the equity method except for those for which the fair value option has been elected. When the Company holds majority voting interests of an entity but noncontrolling shareholders hold substantive participating rights to make decisions on activities that occur over the ordinary course of the business, an equity method investee is recognized.\n\n \n\nF-1\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n(2) Investment in real estate joint ventures\n\nInvestments in real estate joint ventures, which includes contracts for the development and operation of real estate, are accounted for by using the equity method.\n\n(3) Investment in partnerships and other investments\n\nInvestments in partnerships and other investments, in which the Company and its subsidiaries have more than 3% to 5% ownership or over which the Company and its subsidiaries can exercise significant influence, are accounted for by using the equity method except for those for which the fair value option has been elected.\n\nEquity method investments are recorded at cost plus/minus the Company and its subsidiaries’ portion of equity in undistributed earnings. If the value of an investment has declined and is judged to be other-than-temporary, the investment is written down to its fair value.\n\nWhen an equity method investee issues stocks, which price per share is more or less than the Company and its subsidiaries’ average carrying amount per share, to unrelated third parties, the Company and its subsidiaries adjust the carrying amount of its equity method investee and recognize the gain or loss in the consolidated statements of income in the year in which the change in ownership interest occurs.\n\nA lag period of up to three months is used on a consistent basis for recognizing the results of certain consolidated subsidiaries and equity method investees.\n\n(c) Use of estimates\n\nThe 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 eleven areas where it believes estimates are particularly significant 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, fair value measurement of assets acquired and liabilities assumed in a business combination, 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 credit losses (including the allowance for\noff-balance\nsheet credit exposures), 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 other intangible assets.\n\n(d) Foreign currencies translation\n\nThe 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 reporting period.\n\nThe financial statements of overseas subsidiaries and equity method investees are translated into Japanese yen by applying the exchange rates in effect at the end of each reporting period to all assets and liabilities.\n\n \n\nF-1\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nIncome 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 equity method investees 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.\n\n(e) Revenue recognition\n\nThe Company and its subsidiaries recognize revenues from only contracts with customers, such as sales of goods and real estate, and services income, 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 the gross amount as the principal.\n\nExcluding the aforementioned policy, the policies as specifically described hereinafter are applied for each revenue item.\n\nFinance Revenues\n\n—Finance revenues mainly include revenues from finance leases, installment loans, and financial guarantees.\n\n(1) Revenues from finance leases\n\nLessor 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 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. When lease payment is variable, it is accounted for as income in profit or loss in the period when the changes in facts and circumstances on which the variable payment is based occur. When providing leasing services, the Company and its subsidiaries simultaneously conduct supplementary businesses, such as handling taxes and paying insurance on leased assets on behalf of lessees. The repayment of lessor costs received from lessees are recognized in revenues from finance leases and those underlying costs are recognized in other (income) and expense. 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.\n\n(2) Revenues from installment loans\n\nInterest income on installment loans is recognized on an accrual basis. Certain related direct loan origination costs, net of loan 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 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\n\n \n\nF-1\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nassets 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.\n\n(3) Revenues from financial guarantees\n\nAt 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 its subsidiaries are released from the risk of the obligation.\n\n(4)\nNon-accrual\npolicy\n\nFor net investment in leases and installment loans,\npast-due\nfinancing receivables are receivables for which principal or interest is\npast-due\n30 days or more. Loans whose terms have been modified are not classified as\npast-due\nfinancing receivables if the principal and interest are not\npast-due\n30 days or more in accordance with the modified terms. The Company and its subsidiaries suspend accruing revenues on\npast-due\ninstallment loans and net investment in leases when principal or interest is\npast-due\n90 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. However, delinquencies during the relevant period of\npast-due\nfinancing receivables are out of the scope of the suspension of revenue recognition unless their collections are doubtful when the government issues a request for grace of repayment within a maximum of 6 months due to reasons that cannot be attributed to the obligor, such as a disaster, or when similar requests are made by public bodies. 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 credit losses process. The Company and its subsidiaries return\nnon-accrual\nloans and net investment in leases 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.\n\nOperating leases\n\n—\n\nRevenues from operating leases are recognized on a straight-line basis over the lease term. When lease payment is variable, it is accounted for as income in profit or loss in the period when the changes in facts and circumstances on which the variable payment is based occur. In principle, any conditions changed from original lease agreement should be accounted for as a lease modification.\n\nIn providing leasing services, the Company and its subsidiaries simultaneously conduct supplementary businesses, such as handling taxes and paying insurance on leased assets on behalf of lessees. The compensation for those lessor costs received from lessees are recognized in operating lease revenues and those costs are recognized in costs of operating leases. Investment in operating leases is recorded at cost less accumulated depreciation. In addition, operating lease assets are depreciated over their estimated useful lives mainly on a straight-line basis. The estimated average useful lives of principal operating lease assets classified as transportation equipment is 7 years, measuring and information-related equipment is 4 years, real estate (other than land) is 28 years and other is 8 years. 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.\n\n \n\nF-1\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nEstimates 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 lease term. The unamortized balance of initial direct costs is reflected as investment in operating leases.\n\n(f) Insurance and reinsurance transactions\n\nThe policies are classified as long-duration contracts and mainly consist of whole life, term life, endowments, medical insurance and individual annuity insurance contracts. Income from insurance policies other than single-payment whole life insurance and individual annuities is recognized as income when due, net of reinsurance premiums paid. Life insurance benefits are recorded as expenses when they are incurred. The calculation of liabilities for future policy benefits other than single-payment whole life insurance and individual annuities is computed using the same contract groupings (also referred to as cohorts) by policy year, currency, payment method (full term payment or limited payment) and product category and the liabilities for future policy benefits are computed using the net level premium method based on expected future policy benefit payments. A liability is recorded for the present value of expected future policy insurance benefits to be paid and certain related costs, less the present value of expected future net premium to be earned, at the time the premium revenue recognized. For limited payment contracts, the excess of gross premiums received over net premium is recorded as a deferred profit liability.\n\nThe liabilities for future policy benefits are measured using assumptions such as mortality, morbidity, lapse, expense and discount rates. These assumptions are determined based on historical experience, industry data and other factors. Certain subsidiaries review and update future cash flow assumptions at least annually except for expense assumptions. Certain subsidiaries elected to lock in and not to update expense assumptions after expense assumptions are determined based on the most recent actual results at the time of contract issuance. The net premium ratios for calculating the liabilities for future policy benefits are also updated quarterly by cohort, reflecting actual cash flows. Certain subsidiaries remeasure the liabilities for future policy benefits using the updated net premium ratios as of the beginning of the reporting period in which the assumptions are updated and record the change from the remeasurement as gains or losses in life insurance costs in the consolidated statements of income. For periods subsequent to the remeasurement, certain subsidiaries calculate the liabilities for future policy benefits using updated net premium ratios. If net premiums exceed gross premiums, the liabilities for future policy benefits are increased and the excess is recognized immediately in earnings through life insurance costs in the consolidated statement of income.\n\nCertain subsidiaries use a yield curve based on the yields on\nsingle-A\nrated fixed-income instruments as upper-medium grade fixed-income instrument yields with durations similar to the liabilities for future policy benefits to determine discount rate assumptions. The yields on\nsingle-A\nrated fixed-income instruments are referenced in the index provided by a third-party pricing vendor. The discount rate assumptions are updated quarterly and are used for remeasurement of the liability at the reporting date. Changes in the liabilities for future policy benefits resulting from updates of discount rate assumptions are recognized in other comprehensive income (loss), net of applicable income tax. For periods beyond the observable period of the referenced index, the discount rate yield curve beyond the observable period of the referenced index is interpolated to the ultimate forward rate using the Smith-Wilson method.\n\nThe insurance contracts sold by certain subsidiaries include variable annuity, variable life, single-payment whole life insurance and fixed annuity insurance contracts. Certain subsidiaries manage 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\n\n \n\nF-1\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nwith realized and unrealized gains or losses recognized in life insurance premiums and related investment income in the consolidated statements of income. Certain subsidiaries 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.\n\nCertain subsidiaries provide 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 guaranteed 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 certain subsidiaries 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 certain subsidiaries. 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.\n\nPolicy liabilities and policy account balances for single-payment whole life insurance and fixed annuity insurance contracts are measured based on the single-premiums plus interest based on expected rate, less withdrawals, expenses and other charges. The credited interest is recorded in life insurance costs in the consolidated statements of income.\n\nCertain costs related directly to the successful acquisition of new or renewal insurance contracts are deferred. Deferred policy acquisition costs consist primarily of agent commissions, except for policy maintenance costs, and underwriting expenses. For amortization of deferred policy acquisition costs, insurance contracts are grouped by contract year, currency, payment method (full term payment or limited payment) and product category, using the same contract groupings for the calculation of the liabilities for future policy benefits. Insurance contracts for which the liabilities for future policy benefits are not calculated are grouped by policy year, currency, and product category.\n\nDeferred policy acquisition costs are amortized at constant-level basis for each cohort over the expected term of the policies, and the amortization is recorded in life insurance costs in the consolidated statements of income.\n\nFor all cohorts, the number of policies in force for the amortization of deferred policy acquisition costs is projected using mortality and lapse rates estimated based on historical experience, industry data and other factors, which are consistent with those assumptions used for calculating the liabilities for future policy benefits. When mortality and lapse rates are updated, the effects on the amortization of deferred policy acquisition costs are derived by updating the projected number of policies in force and recognized prospectively over the expected term of the policies.\n\nCertain reinsurance commissions (income) corresponding to expenses directly to the successful acquisition of new or renewal of insurance contracts are similarly deferred and amortized in accordance with the above. These amounts are deducted from the unamortized balance of deferred acquisition costs related to the contracts subject to the reinsurance contract.\n\n(g) Allowance for credit losses\n\nThe allowance for credit losses estimates credit losses expected to occur in the future over the remaining life of net investment in leases, financial assets measured at amortized cost, such as installment loans and other\n\n \n\nF-1\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nreceivables, and is recognized based on management judgement. Expected prepayments are reflected in the remaining life. The allowance for credit losses is increased by provision charged to income and is decreased by charge-offs, net of recoveries mainly.\n\nDeveloping the allowance for credit 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, prior\ncharge-off\nexperience, current delinquencies and delinquency trends, value of underlying collateral and guarantees, current economic and business conditions and expected outlook in the future.\n\nThe Company and its subsidiaries estimate the allowance for credit losses by using various methods according to these estimates and judgments. When certain financial assets have similar risk characteristics to other financial assets, these financial assets are collectively evaluated as a pool. On the contrary, when financial assets do not have similar risk characteristics to other financial assets, the financial assets are evaluated individually. The Company and its subsidiaries select the most appropriate calculation method based on available information, such as the nature and related risk characteristics on financial assets, the prior\ncharge-off\nexperience and future forecast scenario with correlated economic indicators.\n\nThe 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, etc.\n\nIn addition, if the entity has a present contractual obligation to extend credit and the obligation is not unconditionally cancelable by the entity, credit losses related to the loan commitments of installment loans and financial guarantees are in the scope of the allowance for credit losses. For the loan commitments of installment loans and credit losses are recognized on the loan commitments for the portion expected to be drawn. For financial guarantees, the allowance is recognized for the contingent obligation which generates credit risk exposures. The allowance for\noff-balance\nsheet credit exposures is measured using the same measurement objectives as the allowance for loans and net investment leases, considering quantitative and qualitative factors including historical loss experience, current economic and business conditions and reasonable and supportable forecasts. The allowance for\noff-balance\nsheet credit exposure is accounted for in other liabilities on the consolidated balance sheets.\n\n(h) Impairment of long-lived assets\n\nThe 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 depreciated or amortized, consisting primarily of office buildings, condominiums, aircraft, ships, mega solar facilities and other properties under facility operations, whenever events or changes in circumstances indicate 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, and others 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.\n\n \n\nF-\n20\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n(i) Investment in securities\n\nEquity 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 fair value 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.\n\nEquity 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.\n\nIn addition, investments are recorded at fair value with unrealized gains and losses included in income if certain subsidiaries elect the fair value option.\n\nTrading debt securities are reported at fair value with unrealized gains and losses included in income.\n\nAvailable-for-sale\n\ndebt securities are reported at fair value, and unrealized gains or losses are recorded in 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.\n\nFor\n\navailable-for-sale\n\ndebt securities, if the fair value is less than the amortized cost, the debt securities are impaired. The Company and its subsidiaries identify per each impaired security whether the decline of fair value is due to credit losses component or\nnon-credit\nlosses component. Impairment related to credit losses is recognized in earnings through an allowance for credit losses. Impairment related to other factors than credit losses is recognized in other comprehensive income (loss), net of applicable income taxes. In estimating an allowance for credit losses, the Company and its subsidiaries consider that credit losses exist when the present value of estimated cash flows is less than the amortized cost basis. When the Company and its subsidiaries intend to sell the debt securities for which an allowance for credit losses is previously established or it is more likely than not that the Company and its subsidiaries will be required to sell the debt securities before recovery of the amortized cost basis, the allowance for credit losses is fully written off and the amortized cost is reduced to the fair value after recognizing additional impairment in earnings. In addition, the Company and its subsidiaries recognize in earnings the full difference between the amortized cost and the fair value of the debt securities by direct write-down, without any allowance for credit losses, if the debt securities are expected to be sold and the fair value is less than the amortized cost.\n\n(j) Income taxes\n\nIncome 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 operating 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, or on a portfolio basis, under which the remaining tax effects are allocated across the entire portfolio of similar items and recognized when the entire portfolio is liquidated. A valuation allowance is recognized, based on the weight of available evidence, to reduce deferred tax assets to the amount that is “more likely than not” to be realized.\n\n \n\nF-2\n1\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe 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 as the largest amount of tax benefit that is greater than\n\n50 \n\npercent likely to be realized upon settlement with the taxing authority. The Company and its subsidiaries present an unrecognized tax benefit either as a reduction of a deferred tax asset or as 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 tax expense in the consolidated statements of income.\n\nThe Company and certain subsidiaries have applied the Japanese Group Relief System for national corporation tax purposes.\n\n(k) Securitized assets\n\nThe 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.\n\nSPEs 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.\n\nThe 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, prepayment rates and servicing costs. The internal valuation model is validated at least semiannually through third-party valuations.\n\n(l) Derivative financial instruments\n\nThe 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 trading or economic hedges that have not qualified for hedge accounting are adjusted to fair value through the consolidated statements of income. If derivatives have qualified for hedge accounting, 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.\n\n \n\nF-2\n2\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nIf 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.\n\nIf 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.\n\nIf a derivative is held as a hedge of a net investment in a foreign operation, changes in the fair value of the derivative are recorded in the foreign currency translation adjustments account within other comprehensive income (loss), net of applicable income taxes.\n\nThe 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.\n\nFor all hedging relationships that are designated and qualified for hedge accounting, at the inception of the hedge, 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.\n\n(m) Pension plans\n\nThe Company and certain subsidiaries have contributory and\nnon-contributory\npension plans covering substantially all of their employees. Among the plans, the costs of defined benefit 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.\n\nThe 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.\n\n(n) Stock-based compensation\n\nIn 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\n(o) Cash and cash equivalents\n\nCash 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.\n\n \n\nF-2\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n(p) Property under facility operations\n\nProperty under facility operations consist primarily of operating facilities (including hotels) and environmental assets (including mega solar and wind power plants), 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. Depreciation expenses in fiscal 2024, 2025 and 2026 were ¥\n\n35,615 million, ¥41,671 million and ¥42,755 million, respectively. Accumulated depreciation was ¥238,185 million and ¥245,328 million as of March 31, 2025 and 2026, respectively. Estimated useful lives range up to 50 years for buildings, up to 60 years for structures and up to 44 years for others.\n\n(q) Inventories\n\nInventories 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, 2025 and 2026, residential condominiums under development were ¥116,416 million and ¥140,800 million, respectively, and completed residential condominiums and merchandise for sale were ¥112,813 million and ¥128,387 million, respectively.\n\n(r) Office facilities\n\nOffice 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. Depreciation expenses in fiscal 2024, 2025 and 2026 were ¥9,256 million, ¥9,842 million and ¥8,223 million, respectively. Accumulated depreciations were ¥65,155 million and ¥71,412 million as of March 31, 2025 and 2026, respectively. Estimated useful lives range up to 62 years for buildings and structures and up to 44 years for machinery and equipment.\n\n(s)\n\nRight-of-use\n\nassets\n\nThe 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.\n\nROU assets are consisted of the amount of the initial measurement of the lease liability and any lease payments made to the lessor at or before the commencement date and stated at cost less accumulated amortization. The initial measurement of the lease liability is at the present value of the lease payments not yet paid, discounted using the lessee’s incremental borrowing rate at lease commencement. 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.\n\n(t) Other assets\n\nOther 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\n\n \n\nF-2\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nover 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, prepaid expenses for property tax, maintenance fees and insurance premiums in relation to lease contracts, servicing assets, derivative assets, contract assets related to real estate contract works and deferred tax assets.\n\n(u) Business combinations\n\nThe Company and its subsidiaries account for business combinations using the acquisition method. Under this method, the Company and its subsidiaries recognize and measure the identifiable assets acquired and liabilities assumed at their fair values as of the acquisition date, which is the date on which control is obtained. Intangible assets acquired in a business combination are recognized separately from goodwill if they meet either the contractual legal criterion or the separability criterion. Goodwill is measured as the excess of the sum of the consideration transferred and the fair value of any noncontrolling interests over the net fair value of the identifiable assets acquired and liabilities assumed. A bargain purchase gain is recognized when the net fair value of the identifiable assets acquired and liabilities assumed exceeds the consideration transferred and the fair value of any 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.\n\nThe determination of the fair values of identifiable assets acquired and liabilities assumed requires management to make significant judgments, estimates, and assumptions. When observable market prices for intangible assets are not available, the Company and its subsidiaries use valuation techniques such as the excess earnings method and the relief from royalty method, which use future sales growth rates, operating margins, discount rates, etc.\n\n(v) Goodwill and other intangible assets\n\nThe 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 whenever such events or changes occur.\n\nThe Company and its subsidiaries have the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before we perform a quantitative 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 quantitative 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 quantitative goodwill 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 quantitative goodwill impairment test. The quantitative goodwill impairment test 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, an impairment loss is recognized in an amount equal to the difference. The Company and its subsidiaries test the goodwill at the reporting unit level which is either the same level as an operating segment level or one level below an operating segment.\n\nThe 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 before we perform a quantitative\n\n \n\nF-2\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nimpairment test. The Company and its subsidiaries perform the qualitative assessment for some indefinite-lived intangible assets but bypass the qualitative assessment and perform the quantitative impairment test 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. We compare the fair value with the carrying amount of the indefinite-lived intangible asset. 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.\n\nIntangible 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 and an impairment loss is recognized in an amount equal to the difference.\n\n(w) Other Liabilities\n\nOther 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 maintenance services of software, measurement equipment and other, and derivative liabilities and allowance for credit losses on\noff-balance\nsheet credit exposures.\n\n(x) Earnings per share\n\nBasic 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.\n\n(y) Redeemable noncontrolling interests\n\nNoncontrolling interests in a certain subsidiary are redeemable interests which are subject to call and put rights upon certain equity holder 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.\n\n(z) New accounting pronouncements\n\nIn December 2023, Accounting Standards Update 2023-08 (“Accounting for and Disclosure of Crypto Assets”—Subtopic 350-60 (“Intangibles—Goodwill and Other—Crypto Assets”)) was issued. This update requires that crypto assets within the scope of this Subtopic generally be remeasured at fair value at the end of the reporting period and that changes in carrying amount due to remeasurement be recognized in the income statement. It also requires new disclosures about crypto assets within the scope of this Subtopic.\n\n \n\nF-\n26\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe Company and its subsidiaries adopted this update on April 1, 2025. The adoption of this update had no material effect on the Company and its subsidiaries’ results of operations or financial position.\n\nIn December 2023, Accounting Standards Update 2023-09 (“Improvements to Income Tax Disclosures”—ASC 740 (“Income Taxes”)) was issued. This update requires annual disclosure of income taxes. It requires disclosure of specific categories in the rate reconciliation and separate disclosure and additional information for reconciliation items that are equal to or greater than 5% of the amount computed by multiplying income (or loss) before income taxes by the applicable national statutory income tax rate. It also requires disclosure of the amount of income taxes paid disaggregated by national, local and foreign. Additionally, it requires separate disclosure of the amount of income taxes paid disaggregated by each tax jurisdiction in which income taxes paid is equal to or greater than 5% of the total income taxes paid. This update is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company and its subsidiaries adopted this update prospectively on April 1, 2025. Since this update relates to disclosure requirements, the adoption did not have an effect on the Company and its subsidiaries’ results of operations or financial position.\n\nIn March 2024, Accounting Standards Update\n2024-01\n(“Scope Application of Profits Interest and Similar Awards”—ASC 718 (“Compensation—Stock Compensation”)) was issued. This update clarifies how an entity should apply the scope guidance to determine whether profits interest and similar awards (“profits interests awards” from hereafter) should be accounted for in accordance with ASC 718 (“Compensation—Stock Compensation”). This update is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted. This update will either be applied retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments. The Company and its subsidiaries adopted this update on April 1, 2025 choosing the option to apply the update prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments. The adoption of this update had no material impact on the Company and its subsidiaries’ results of operations or financial position, as well as disclosures.\n\nIn November 2024, Accounting Standards Update\n2024-03\n(“Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures”—(Subtopic\n220-40))\nwas issued, and related update clarifying effective date was issued thereafter. This update requires that entities disclose purchases of inventory, employee compensation, depreciation, intangible asset amortization and depletion for each income statement line item that contains those expenses. It also requires specified expenses, gains or losses that are already disclosed under existing US GAAP to be included in the disclosure of the relevant expense captions, and any remaining amounts to be described qualitatively. Additionally, separate disclosures of total selling expenses and its definition are also required. This update is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, and early adoption is permitted. This update will either be applied prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. The Company and its subsidiaries will adopt this update on April 1, 2027 for annual disclosure and on April 1, 2028 for interim disclosure. The Company and its subsidiaries are currently evaluating the effect that the adoption of this update will have on the Company and its subsidiaries’ disclosures.\n\nIn November 2024, Accounting Standards Update\n2024-04\n(“Induced Conversions of Convertible Debt Instruments”—Subtopic\n470-20\n(“Debt—Debt with Conversion and Other Options”)) was issued. This update clarifies the application requirements for accounting treatment when conversions are induced by incentives. The update is effective for fiscal years and interim periods beginning after December 15, 2025, with early adoption permitted. Entities may elect either to apply the update retrospectively to all prior periods presented or\n\n \n\nF-27\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nprospectively from the date of adoption. The Company and its subsidiaries plan to adopt this update prospectively on April 1, 2026. The Company does not expect the adoption of this update to have a material impact on its results of operations, financial position, or disclosures.\n\nIn May 2025, Accounting Standards Update\n2025-03\n(“Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity”—ASC 805 (“Business Combinations”), ASC 810 (“Consolidation”)) was issued. This update requires an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business to consider the factors in the guidance of Subtopic\n805-10\n(“Business Combinations—Overall”) to determine which entity is the accounting acquirer. This update is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. This update requires that an entity apply the new guidance prospectively to any acquisition transaction that occurs after the initial application date. The Company and its subsidiaries will adopt this update on April 1, 2027. 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.\n\nIn May 2025, Accounting Standards Update\n2025-04\n(“Clarifications to Share-Based Consideration Payable to a Customer”—ASC 718 (“Compensation—Stock Compensation”), ASC 606 (“Revenue from Contracts with Customers”)) was issued. This update revised the definition of the term performance conditions for share-based consideration payable to a customer, including conditions based on the volume or monetary amount of a customer’s purchase of goods or services. When share-based consideration payable to a customer included service conditions, it eliminated the policy election permitting the entity to account for forfeitures as they occur, and the entity is required to estimate the number of forfeitures expected to occur. Additionally, it clarifies that share-based consideration payable to a customer is not subject to the constraint on estimates of variable consideration in ASC 606. This update is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. This update will either be applied using a modified retrospective approach, with a cumulative-effect adjustment to retained earnings as of the fiscal year of adoption, or retrospectively to all prior periods presented in the financial statements. The Company and its subsidiaries will adopt this update on April 1, 2027. 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 disclosures.\n\nIn July 2025, Accounting Standards Update\n2025-05\n(“Measurement of Credit Losses for Accounts Receivable and Contract Assets”—ASC 326 (“Financial Instruments—Credit Losses”)) was issued. This update revised the guidance for estimating expected credit losses on trade receivables and contract assets arising from transactions within the scope of ASC 606, Revenue from Contracts with Customers. The amendments allow all entities to apply a practical expedient when developing reasonable and supportable forecasts for credit loss estimates. Under this expedient, entities may assume that the economic conditions existing as of the reporting date will remain unchanged over the remaining life of the financial asset. Nevertheless, entities are required to adjust historical loss information to reflect current conditions if those conditions differ from those in the historical data. This update is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted. This update requires that an entity apply the new guidance prospectively. The Company and its subsidiaries will adopt this update on April 1, 2026. The Company and its subsidiaries expect that the adoption of this update will have no material impact on the Company and its subsidiaries’ results of operations or financial position, as well as disclosures.\n\nIn September 2025, Accounting Standards Update\n2025-06\n(“Targeted Improvements to the Accounting for\nInternal-Use\nSoftware”—Subtopic\n350-40\n(“Intangibles—Goodwill and\nOther—Internal-Use\nSoftware”)) was\n\n \n\nF-28\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nissued. This update eliminates accounting consideration of software project stages and requires capitalization to begin when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. This update also requires that capitalized\ninternal-use\nsoftware costs are subject to the disclosure requirements under Subtopic\n360-10\n(“Property, Plant, and Equipment”), regardless of how such those costs are presented in the financial statements. Furthermore, it also modifies the website development costs guidance by eliminating Subtopic\n350-50\nand relocating any remaining relevant guidance into Subtopic\n350-40.\nThis update is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted. This update will either be applied to a prospective transition approach, a modified transition approach, under which a cumulative-effect adjustment is recognized in retained earnings as of the beginning of the adoption period, or retrospectively to all prior periods presented in the financial statements. The Company and its subsidiaries will adopt this update on April 1, 2028. 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, financial position, and disclosures.\n\nIn October 2025, Accounting Standards Update 2025-08 (“Purchased Loans: Financial Instruments—Credit Losses”—ASC 326 (“Financial Instruments—Credit Losses”)) was issued. This update broadens the population of financial assets that are within the scope of the gross-up approach under ASC 326 to include purchased seasoned loans that are not considered purchased credit-deteriorated assets. This update is effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. This update requires that an entity apply prospectively to loans that are acquired on or after the initial application date. The Company and its subsidiaries will adopt this update on April 1, 2027. 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 disclosures.\n\nIn November 2025, Accounting Standards Update 2025-09 (“Hedge Accounting Improvements”—ASC 815 (“Derivatives and Hedging”)) was issued. This update expands the scope of hedge accounting in the following five areas. (1) This update expands the hedged risks permitted to be aggregated in a group of individual forecasted transactions in a cash flow hedge. (2) This update provides a model to facilitate the application of cash flow hedge accounting to forecasted interest payments on choose-your-rate debt instruments. (3) This update permits an entity to designate the variability in cash flows attributable to changes in a variable price component of a forecasted purchase or sale of a nonfinancial asset as the hedged risk, provided that the component is clearly and closely related to the nonfinancial asset being purchased or sold. (4) This update eliminates the requirement to apply the net written option test to a compound derivative comprising a swap and a written option designated as the hedging instrument of interest rate risk. (5) The amendments require that an entity exclude the debt instrument’s fair value hedge basis adjustment from the net investment hedge effectiveness assessment and recognize in earnings the gains and losses from the remeasurement of the debt instrument’s fair value hedge basis adjustment at the spot exchange rate. This update is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. This update requires that an entity apply the new guidance prospectively for all hedging relationships and permits an entity to elect to apply it to hedging relationships that exist as of the date of adoption. The Company and its subsidiaries will adopt this update on April 1, 2027. 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 disclosures.\n\nIn December 2025, Accounting Standards Update 2025-10 (“Accounting for Government Grants Received by Business Entities”— ASC 832 (“Government Assistance”)) was issued. This update establishes authoritative\n\n \n\nF-29\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nguidance on the recognition, measurement, presentation and disclosure of government grants received by business entities. This update requires an entity to recognize a government grant only when it is probable that the entity will both comply with the conditions attached to the grant and the grant will be received, and when the related expenses or costs have been incurred. This update provides specific accounting models for grants related to assets and grants related to income. For grants related to assets, it permits an entity to either recognize government grants as deferred income or as an adjustment to the carrying amount of the asset. For grants related to income, it requires an entity to recognize the grant in earnings over the periods in which the entity recognizes the related costs as expenses, which the grant is intended to compensate. It also requires additional disclosures regarding the nature of government grants, significant terms and conditions, accounting policies applied, and amounts recognized in the financial statements. This update is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years. Early adoption is permitted. This update will be applied using either a modified prospective approach for government grants entered into on or after the effective date, a modified retrospective approach for government grants entered into on or after the beginning of the earliest period presented, or a retrospective approach for all government grants. The Company and its subsidiaries will adopt this update on April 1, 2029. 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, financial position, as well as disclosures.\n\nIn April 2026, Accounting Standards Update 2026-01 (“Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock”—ASC 505(“Equity”)) was issued. This update requires an entity that paid-in-kind dividends on equity-classified preferred stock be initially measured on the basis of the paid-in-kind dividend rate stated in the preferred stock agreement. This update is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. This update will either be applied prospectively to paid-in-kind dividends recognized on preferred stock on or after the initial application date, or retrospectively to paid-in-kind dividends recognized on preferred stock outstanding as of the initial application date for all prior periods presented in the financial statements. The Company and its subsidiaries will adopt this update from April 1, 2027. 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 disclosures.\n\nIn May 2026, Accounting Standards Update 2026-02 (“Environmental Credits and Environmental Credit Obligations” — ASC 818 ) was issued. This update establishes new accounting guidance on the recognition, measurement, presentation, and disclosure of environmental credits generated, purchased, or received by an entity, as well as environmental credit obligations arising from regulatory compliance requirements related to the prevention, control, reduction, or removal of emissions or other pollution. This update requires that environmental credits that are probable of being used to settle environmental credit obligations, or of transfer in exchange transactions or of use in a nonreciprocal transfer, be recognized as assets at cost, while costs to obtain all other environmental credits be recognized as an expense when incurred. In addition, among the environmental credits recognized as assets, those expected to be used to settle such obligations are subsequently measured at cost, whereas other environmental credits are subject to impairment testing at the end of each reporting period, with impairment losses recognized to the extent that the carrying amount exceeds fair value. This update requires the recognition of liabilities for environmental credit obligations arising from regulatory compliance requirements existing at the reporting date. Such obligations are measured based on the carrying amount of environmental credits held and expected to be used for settlement, or, if such credits are not held, based on the fair value of the environmental credits required to settle the obligation. This update is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted. This update requires a modified retrospective approach, with a cumulative-effect adjustment to retained earnings as of the fiscal year of adoption. The Company and its subsidiaries will adopt this update on\n\n \n\nF-30\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nApril 1, 2028. 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 disclosures.\n\n2. Fair Value Measurements\n\nThe Company and its subsidiaries classify and prioritize inputs used in valuation techniques to measure fair value into the following three levels:\n\n \n\nLevel 1\n \n—\n \nInputs 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.\n\nLevel 2\n \n—\n \nInputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.\n\nLevel 3\n \n—\n \nUnobservable inputs for the assets or liabilities.\n\nThe 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,\n\navailable-for-sale\n\ndebt securities, certain equity securities, derivatives, certain reinsurance recoverables, variable annuity and variable life insurance contracts, and certain accounts payable at fair value on a recurring basis.\n\n \n\nF-\n31\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following tables present recorded amounts of major financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and 2026:\n\nMarch 31, 2025\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance Sheets\n\n \n \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical Assets\nor Liabilities\n\n(Level 1)\n\n \n \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n \n\nSignificant\n\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\nLoans held for sale*1\n\n \n¥\n97,694\n \n \n¥\n0\n \n \n¥\n29,900\n \n \n¥\n67,794\n \n\nAvailable-for-sale debt securities:\n\n \n \n2,607,637\n \n \n \n12,243\n \n \n \n2,377,740\n \n \n \n217,654\n \n\nJapanese and foreign government bond securities*2\n\n \n \n1,092,526\n \n \n \n7,510\n \n \n \n1,085,016\n \n \n \n0\n \n\nJapanese prefectural and foreign municipal bond securities\n\n \n \n406,830\n \n \n \n0\n \n \n \n395,952\n \n \n \n10,878\n \n\nCorporate debt securities*3\n\n \n \n802,545\n \n \n \n4,733\n \n \n \n793,560\n \n \n \n4,252\n \n\nCMBS and RMBS in the Americas\n\n \n \n106,751\n \n \n \n0\n \n \n \n99,669\n \n \n \n7,082\n \n\nOther asset-backed securities and debt securities\n\n \n \n198,985\n \n \n \n0\n \n \n \n3,543\n \n \n \n195,442\n \n\nEquity securities*4*5\n\n \n \n418,690\n \n \n \n137,014\n \n \n \n119,466\n \n \n \n162,210\n \n\nDerivative assets:\n\n \n \n64,170\n \n \n \n361\n \n \n \n54,992\n \n \n \n8,817\n \n\nInterest rate swap agreements\n\n \n \n17,869\n \n \n \n0\n \n \n \n17,869\n \n \n \n0\n \n\nOptions held/written and other\n\n \n \n15,767\n \n \n \n0\n \n \n \n6,950\n \n \n \n8,817\n \n\nFutures, foreign exchange contracts\n\n \n \n20,964\n \n \n \n361\n \n \n \n20,603\n \n \n \n0\n \n\nForeign currency swap agreements\n\n \n \n9,570\n \n \n \n0\n \n \n \n9,570\n \n \n \n0\n \n\nNetting*6\n\n \n \n(20,495\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nNet derivative assets\n\n \n \n43,675\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nOther assets:\n\n \n \n2,586\n \n \n \n0\n \n \n \n0\n \n \n \n2,586\n \n\nReinsurance recoverables*7\n\n \n \n2,586\n \n \n \n0\n \n \n \n0\n \n \n \n2,586\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n3,190,777\n \n \n¥\n149,618\n \n \n¥\n2,582,098\n \n \n¥\n459,061\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLiabilities:\n\n \n\n \n\n \n\n \n\nDerivative liabilities:\n\n \n¥\n56,038\n \n \n¥\n129\n \n \n¥\n55,257\n \n \n¥\n652\n \n\nInterest rate swap agreements\n\n \n \n2,774\n \n \n \n0\n \n \n \n2,774\n \n \n \n0\n \n\nOptions held/written and other\n\n \n \n13,715\n \n \n \n0\n \n \n \n13,063\n \n \n \n652\n \n\nFutures, foreign exchange contracts\n\n \n \n39,387\n \n \n \n129\n \n \n \n39,258\n \n \n \n0\n \n\nForeign currency swap agreements\n\n \n \n159\n \n \n \n0\n \n \n \n159\n \n \n \n0\n \n\nCredit derivatives written\n\n \n \n3\n \n \n \n0\n \n \n \n3\n \n \n \n0\n \n\nNetting*6\n\n \n \n(20,495\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nNet derivative Liabilities\n\n \n \n35,543\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nPolicy Liabilities and Policy Account Balances:\n\n \n \n136,257\n \n \n \n0\n \n \n \n0\n \n \n \n136,257\n \n\nVariable annuity and variable life insurance contracts*8\n\n \n \n136,257\n \n \n \n0\n \n \n \n0\n \n \n \n136,257\n \n\nAccounts Payable\n\n \n \n15,259\n \n \n \n0\n \n \n \n0\n \n \n \n15,259\n \n\nContingent Consideration\n\n \n \n15,259\n \n \n \n0\n \n \n \n0\n \n \n \n15,259\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n207,554\n \n \n¥\n129\n \n \n¥\n55,257\n \n \n¥\n152,168\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n3\n2\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance Sheets\n\n \n\n \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical Assets\nor Liabilities\n\n(Level 1)\n\n \n\n \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n\n \n\nSignificant\n\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\nLoans held for sale*1\n\n \n¥\n78,020\n \n \n¥\n   0\n \n \n¥\n42,336\n \n \n¥\n35,684\n \n\nAvailable-for-sale\n\ndebt securities:\n\n \n \n2,526,416\n \n \n \n7,278\n \n \n \n2,243,137\n \n \n \n276,001\n \n\nJapanese and foreign government bond securities*2\n\n \n \n973,885\n \n \n \n2,150\n \n \n \n971,735\n \n \n \n0\n \n\nJapanese prefectural and foreign municipal bond securities\n\n \n \n315,766\n \n \n \n0\n \n \n \n305,184\n \n \n \n10,582\n \n\nCorporate debt securities*3\n\n \n \n957,449\n \n \n \n5,128\n \n \n \n834,130\n \n \n \n118,191\n \n\nCMBS and RMBS in the Americas\n\n \n \n105,432\n \n \n \n0\n \n \n \n105,432\n \n \n \n0\n \n\nOther asset-backed securities and debt securities\n\n \n \n173,884\n \n \n \n0\n \n \n \n26,656\n \n \n \n147,228\n \n\nEquity securities*4*5\n\n \n \n501,246\n \n \n \n150,194\n \n \n \n120,456\n \n \n \n230,596\n \n\nDerivative assets:\n\n \n \n154,513\n \n \n \n676\n \n \n \n145,850\n \n \n \n7,987\n \n\nInterest rate swap agreements\n\n \n \n26,358\n \n \n \n0\n \n \n \n26,358\n \n \n \n0\n \n\nOptions held/written and other\n\n \n \n17,402\n \n \n \n16\n \n \n \n9,399\n \n \n \n7,987\n \n\nFutures, foreign exchange contracts\n\n \n \n69,663\n \n \n \n660\n \n \n \n69,003\n \n \n \n0\n \n\nForeign currency swap agreements\n\n \n \n41,090\n \n \n \n0\n \n \n \n41,090\n \n \n \n0\n \n\nNetting*6\n\n \n \n(80,880\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nNet derivative assets\n\n \n \n73,633\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nOther assets:\n\n \n \n1,163\n \n \n \n0\n \n \n \n0\n \n \n \n1,163\n \n\nReinsurance recoverables*7\n\n \n \n1,163\n \n \n \n0\n \n \n \n0\n \n \n \n1,163\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n3,261,358\n \n \n¥\n158,148\n \n \n¥\n2,551,779\n \n \n¥\n551,431\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLiabilities:\n\n \n\n \n\n \n\n \n\nDerivative liabilities:\n\n \n¥\n118,061\n \n \n¥\n148\n \n \n¥\n117,356\n \n \n¥\n557\n \n\nInterest rate swap agreements\n\n \n \n2,289\n \n \n \n0\n \n \n \n2,289\n \n \n \n0\n \n\nOptions held/written and other\n\n \n \n21,543\n \n \n \n16\n \n \n \n20,970\n \n \n \n557\n \n\nFutures, foreign exchange contracts\n\n \n \n94,194\n \n \n \n132\n \n \n \n94,062\n \n \n \n0\n \n\nForeign currency swap agreements\n\n \n \n12\n \n \n \n0\n \n \n \n12\n \n \n \n0\n \n\nCredit derivatives written\n\n \n \n23\n \n \n \n0\n \n \n \n23\n \n \n \n0\n \n\nNetting*6\n\n \n \n(51,256\n)\n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nNet derivative Liabilities\n\n \n \n66,805\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nPolicy Liabilities and Policy Account Balances:\n\n \n \n138,027\n \n \n \n0\n \n \n \n0\n \n \n \n138,027\n \n\nVariable annuity and variable life insurance contracts*8\n\n \n \n138,027\n \n \n \n0\n \n \n \n0\n \n \n \n138,027\n \n\nAccounts Payable\n\n \n \n15,683\n \n \n \n0\n \n \n \n0\n \n \n \n15,683\n \n\nContingent Consideration\n\n \n \n15,683\n \n \n \n0\n \n \n \n0\n \n \n \n15,683\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n271,771\n \n \n¥\n148\n \n \n¥\n117,356\n \n \n¥\n154,267\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*1\n\nA 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)\n\n \n\nF-3\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\nand expense” in the consolidated statements of income were a\ngain\n of ¥428 million,\nloss\nes\n\n of ¥1,052 million and ¥4,142 million from the change in the fair value of the loans for fiscal 2024, 2025 and 2026, respectively. No gains or losses were recognized in earnings during fiscal 2024, 2025 and 2026 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, 2025, were ¥98,135 million and ¥97,694 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥441 million. The amounts of aggregate unpaid principal balance and aggregate fair value of the loans held for sale as of March 31, 2026, were ¥79,364 million and ¥78,020 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥1,344 million. The amounts of aggregate unpaid principal balance and aggregate fair value of loans that are 90 days or more past due or, in\nnon-accrual\nstatus as of March 31, 2025, were ¥17,098 million and ¥16,346 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥752 million. The amounts of aggregate unpaid principal balance and aggregate fair value of loans that are 90 days or more past due or, in\nnon-accrual\nstatus as of March 31, 2026, were ¥9,858 million and ¥8,657 million, respectively, and the amount of the aggregate fair value was less than the amount of aggregate unpaid principal balance by ¥1,201 million.\n\n*2\n\nA certain subsidiary elected the fair value option for investments in foreign government bond securities included in\n\navailable-for-sale\n\ndebt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were losses of ¥6 \nmillion,\n ¥59 million\n an\nd\n\n a gain of ¥137\n million from the change in the fair value of those investments for fiscal 2024, 2025 and 2026, respectively. The amount of aggregate fair value elected the fair value option were ¥5,379 million and ¥3,024 million as of March 31, 2025 and 2026, respectively.\n\n*3\n\nA certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in\n\navailable-for-sale\n\ndebt securities. Included in “Gains on investment securities and dividends” in the consolidated statements of income were\n \n\ngains\n of ¥399 million, ¥441 million and ¥362 million from the change in the fair value of those investments for fiscal 2024, 2025 and 2026, respectively. The amounts of aggregate fair value elected the fair value option were ¥10,679 million and ¥11,927 million as of March 31, 2025 and 2026, respectively.\n\n*4\n\nCertain subsidiaries elected the fair value option for certain investments in investment funds included in equity securities. Included in “Gains on investment securities and dividends” and “Life insurance premiums and related investment income” in the consolidated statements of income were gains of ¥3,269 million, ¥1,954 million and ¥1,038 million from the change in the fair value of those investments for fiscal 2024, 2025 and 2026, respectively. The amounts of aggregate fair value elected the fair value option were ¥24,960 million and ¥24,845 million as of March 31, 2025 and 2026, respectively.\n\n*5\n\nThe amounts of investment funds measured at net asset value per share which are not included in the above tables were ¥118,666 million and ¥168,854 million as of March 31, 2025 and 2026, respectively.\n\n*6\n\nIt represents the amount offset under counterparty netting of derivative assets and liabilities.\n\n*7\n\nCertain 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 ¥2,586 million and ¥1,163 million as of March 31, 2025 and 2026, respectively. For the effect of changes in the fair value of those reinsurance contracts on earnings for fiscal 2024, 2025 and 2026, see Note 23 “Income and Expenses Relating to Life Insurance Operations.”\n\n*8\n\nCertain 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 ¥136,257 million and ¥138,027 million as of March 31, 2025 and 2026\n,\nrespectively. For the effect of changes in the fair value of the variable annuity and variable life insurance contracts on earnings for fiscal 2024, 2025 and 2026, see Note 23 “Income and Expenses Relating to Life Insurance Operations.”\n\n \n\nF-3\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe 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 2024, 2025 and 2026:\n\n2024\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nBalance at\n\nApril 1,\n\n2023\n\n \n \n\nGains or losses\n\n(realized/unrealized)\n\n \n \n\nPurchases*3\n\n \n \n\nSales\n\n \n \n\nSettlements*4\n\n \n \n\nTransfers\n\nin and/\n\nor out of\n\nLevel 3\n\n(net)\n\n \n \n\nBalance at\n\nMarch 31,\n\n2024\n\n \n \n\nChange in\n\nunrealized\n\ngains or losses\n\nincluded in\n\nearnings for\n\nassets and\n\nliabilities still\n\nheld at\n\nMarch 31,\n\n2024*1\n\n \n \n\nChange in\n\nunrealized\n\ngains or losses\n\nincluded in\n\nother\ncomprehensive\nincome for\n\nassets and\n\nliabilities still\n\nheld at\n\nMarch 31,\n\n2024*2\n\n \n\n \n\nIncluded in\n\nearnings*1\n\n \n \n\nIncluded in\n\nother\n\ncomprehensive\n\nincome*2\n\n \n \n\nTotal\n\n \n\nLoans held for sale\n\n \n¥\n173,849\n \n \n¥\n566\n \n \n¥\n18,937\n \n \n¥\n19,503\n \n \n¥\n4,467\n \n \n¥\n(66,078)\n \n \n¥\n(35,175\n) \n \n¥\n0\n \n \n¥\n96,566\n \n \n¥\n0\n \n \n¥\n18,937\n \n\nAvailable-for-sale\n\ndebt securities\n\n \n \n243,602\n \n \n \n13,906\n \n \n \n17,117\n \n \n \n31,023\n \n \n \n68,295\n \n \n \n(15,041\n) \n \n \n(15,400\n) \n \n \n6,818\n \n \n \n319,297\n \n \n \n12,918\n \n \n \n18,018\n \n\nJapanese prefectural and foreign municipal bond securities\n\n \n \n3,331\n \n \n \n(75\n) \n \n \n866\n \n \n \n791\n \n \n \n0\n \n \n \n0\n \n \n \n(18\n) \n \n \n6,818\n \n \n \n10,922\n \n \n \n(75\n) \n \n \n809\n \n\nCorporate debt securities\n\n \n \n4,737\n \n \n \n974\n \n \n \n1\n \n \n \n975\n \n \n \n14\n \n \n \n0\n \n \n \n(140\n) \n \n \n0\n \n \n \n5,586\n \n \n \n608\n \n \n \n1\n \n\nCMBS and RMBS in the Americas\n\n \n \n0\n \n \n \n0\n \n \n \n286\n \n \n \n286\n \n \n \n6,879\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7,165\n \n \n \n0\n \n \n \n282\n \n\nOther asset-backed securities and debt securities\n\n \n \n235,534\n \n \n \n13,007\n \n \n \n15,964\n \n \n \n28,971\n \n \n \n61,402\n \n \n \n(15,041\n) \n \n \n(15,242\n) \n \n \n0\n \n \n \n295,624\n \n \n \n12,385\n \n \n \n16,926\n \n\nEquity securities\n\n \n \n143,074\n \n \n \n(841\n) \n \n \n18,617\n \n \n \n17,776\n \n \n \n4,675\n \n \n \n(495\n) \n \n \n(2,173\n) \n \n \n0\n \n \n \n162,857\n \n \n \n(1,097\n) \n \n \n18,617\n \n\nInvestment funds\n\n \n \n143,074\n \n \n \n(841\n) \n \n \n18,617\n \n \n \n17,776\n \n \n \n4,675\n \n \n \n(495\n) \n \n \n(2,173\n) \n \n \n0\n \n \n \n162,857\n \n \n \n(1,097\n) \n \n \n18,617\n \n\nDerivative assets and liabilities (net)\n\n \n \n(7,824\n) \n \n \n10,595\n \n \n \n(487\n) \n \n \n10,108\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n2,284\n \n \n \n10,595\n \n \n \n(487\n) \n\nOptions held/written and other\n\n \n \n(7,824\n) \n \n \n10,595\n \n \n \n(487\n) \n \n \n10,108\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n2,284\n \n \n \n10,595\n \n \n \n(487\n) \n\nOther asset\n\n \n \n4,676\n \n \n \n(2,711\n) \n \n \n0\n \n \n \n(2,711\n) \n \n \n971\n \n \n \n0\n \n \n \n(150\n) \n \n \n0\n \n \n \n2,786\n \n \n \n(2,711\n) \n \n \n0\n \n\nReinsurance recoverables*5\n\n \n \n4,676\n \n \n \n(2,711\n) \n \n \n0\n \n \n \n(2,711\n) \n \n \n971\n \n \n \n0\n \n \n \n(150\n) \n \n \n0\n \n \n \n2,786\n \n \n \n(2,711\n) \n \n \n0\n \n\nPolicy Liabilities and Policy Account Balances\n\n \n \n163,734\n \n \n \n(30,205\n) \n \n \n(265\n) \n \n \n(30,470\n) \n \n \n0\n \n \n \n0\n \n \n \n(26,997\n) \n \n \n0\n \n \n \n167,207\n \n \n \n(30,205\n) \n \n \n(265\n) \n\nVariable annuity and variable life insurance contracts*6\n\n \n \n163,734\n \n \n \n(30,205\n) \n \n \n(265\n) \n \n \n(30,470\n) \n \n \n0\n \n \n \n0\n \n \n \n(26,997\n) \n \n \n0\n \n \n \n167,207\n \n \n \n(30,205\n) \n \n \n(265\n) \n\nAccounts Payable:\n\n \n \n12,576\n \n \n \n(47\n) \n \n \n(1,513\n) \n \n \n(1,560\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n14,136\n \n \n \n(47\n) \n \n \n(1,513\n) \n\nContingent Consideration\n\n \n \n12,576\n \n \n \n(47\n) \n \n \n(1,513\n) \n \n \n(1,560\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n14,136\n \n \n \n(47\n) \n \n \n(1,513\n) \n\n \n\nF-3\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n2025\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nBalance at\n\nApril 1,\n\n2024\n\n \n \n\nGains or losses\n\n(realized/unrealized)\n\n \n \n\nPurchases*3\n\n \n \n\nSales\n\n \n \n\nSettlements*4\n\n \n \n\nTransfers\n\nin and/\n\nor out of\n\nLevel 3\n\n(net)\n\n \n \n\nBalance at\n\nMarch 31,\n\n2025\n\n \n \n\nChange in\n\nunrealized\n\ngains or losses\n\nincluded in\n\nearnings for\n\nassets and\n\nliabilities still\n\nheld at\n\nMarch 31,\n\n2025*1\n\n \n \n\nChange in\n\nunrealized\n\ngains or losses\n\nincluded in\n\nother\ncomprehensive\nincome for\n\nassets and\n\nliabilities still\n\nheld at\n\nMarch 31,\n\n2025*2\n\n \n\n \n\nIncluded in\n\nearnings*1\n\n \n \n\nIncluded in\n\nother\n\ncomprehensive\n\nincome*2\n\n \n \n\nTotal\n\n \n\nLoans held for sale\n\n \n¥\n96,566\n \n \n¥\n(1,778\n) \n \n¥\n(543\n) \n \n¥\n(2,321\n) \n \n¥\n633\n \n \n¥\n0\n \n \n¥\n(27,084\n) \n \n¥\n0\n \n \n¥\n67,794\n \n \n¥\n(708\n) \n \n¥\n(543\n) \n\nAvailable-for-sale\n\ndebt securities\n\n \n \n319,297\n \n \n \n1,336\n \n \n \n(1,437\n) \n \n \n(101\n) \n \n \n99,785\n \n \n \n(56,749\n) \n \n \n(144,578\n) \n \n \n0\n \n \n \n217,654\n \n \n \n370\n \n \n \n(463\n) \n\nJapanese prefectural and foreign municipal bond securities\n\n \n \n10,922\n \n \n \n(107\n) \n \n \n82\n \n \n \n(25\n) \n \n \n0\n \n \n \n0\n \n \n \n(19\n) \n \n \n0\n \n \n \n10,878\n \n \n \n(107\n) \n \n \n82\n \n\nCorporate debt securities\n\n \n \n5,586\n \n \n \n235\n \n \n \n(17\n) \n \n \n218\n \n \n \n300\n \n \n \n(1,712\n) \n \n \n(140\n) \n \n \n0\n \n \n \n4,252\n \n \n \n(73\n) \n \n \n(17\n) \n\nCMBS and RMBS in the Americas\n\n \n \n7,165\n \n \n \n0\n \n \n \n(83\n) \n \n \n(83\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7,082\n \n \n \n0\n \n \n \n(83\n) \n\nOther asset-backed securities and debt securities\n\n \n \n295,624\n \n \n \n1,208\n \n \n \n(1,419\n) \n \n \n(211\n) \n \n \n99,485\n \n \n \n(55,037\n) \n \n \n(144,419\n) \n \n \n0\n \n \n \n195,442\n \n \n \n550\n \n \n \n(445\n) \n\nEquity securities\n\n \n \n162,857\n \n \n \n(8,129\n) \n \n \n(2,089\n) \n \n \n(10,218\n) \n \n \n20,113\n \n \n \n(656\n) \n \n \n(9,886\n) \n \n \n0\n \n \n \n162,210\n \n \n \n(8,163\n) \n \n \n(2,099\n) \n\nInvestment funds and other\n\n \n \n162,857\n \n \n \n(8,129\n) \n \n \n(2,089\n) \n \n \n(10,218\n) \n \n \n20,113\n \n \n \n(656\n) \n \n \n(9,886\n) \n \n \n0\n \n \n \n162,210\n \n \n \n(8,163\n) \n \n \n(2,099\n) \n\nDerivative assets and liabilities (net)\n\n \n \n2,284\n \n \n \n5,480\n \n \n \n401\n \n \n \n5,881\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n8,165\n \n \n \n5,480\n \n \n \n401\n \n\nOptions held/written and other\n\n \n \n2,284\n \n \n \n5,480\n \n \n \n401\n \n \n \n5,881\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n8,165\n \n \n \n5,480\n \n \n \n401\n \n\nOther asset\n\n \n \n2,786\n \n \n \n(1,027\n) \n \n \n0\n \n \n \n(1,027\n) \n \n \n916\n \n \n \n0\n \n \n \n(89\n) \n \n \n0\n \n \n \n2,586\n \n \n \n(1,027\n) \n \n \n0\n \n\nReinsurance recoverables*5\n\n \n \n2,786\n \n \n \n(1,027\n) \n \n \n0\n \n \n \n(1,027\n) \n \n \n916\n \n \n \n0\n \n \n \n(89\n) \n \n \n0\n \n \n \n2,586\n \n \n \n(1,027\n) \n \n \n0\n \n\nPolicy Liabilities and Policy Account Balances\n\n \n \n167,207\n \n \n \n7,292\n \n \n \n(48\n) \n \n \n7,244\n \n \n \n0\n \n \n \n0\n \n \n \n(23,706\n) \n \n \n0\n \n \n \n136,257\n \n \n \n7,292\n \n \n \n(48\n) \n\nVariable annuity and variable life insurance contracts*6\n\n \n \n167,207\n \n \n \n7,292\n \n \n \n(48\n) \n \n \n7,244\n \n \n \n0\n \n \n \n0\n \n \n \n(23,706\n) \n \n \n0\n \n \n \n136,257\n \n \n \n7,292\n \n \n \n(48\n) \n\nAccounts Payable:\n\n \n \n14,136\n \n \n \n(1,235\n) \n \n \n112\n \n \n \n(1,123\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n15,259\n \n \n \n(1,235\n) \n \n \n112\n \n\nContingent Consideration\n\n \n \n14,136\n \n \n \n(1,235\n) \n \n \n112\n \n \n \n(1,123\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n15,259\n \n \n \n(1,235\n) \n \n \n112\n \n\n2026\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n\nBalance at\n\nApril 1,\n\n2025\n\n \n \n\nGains or losses\n\n(realized/unrealized)\n\n \n \n\nPurchases*3\n\n \n \n\nSales\n\n \n \n\nSettlements*4\n\n \n \n\nTransfers\n\nin and/\n\nor out of\n\nLevel 3\n\n(net)\n\n \n \n\nBalance at\n\nMarch 31,\n\n2026\n\n \n \n\nChange in\n\nunrealized\n\ngains or losses\n\nincluded in\n\nearnings for\n\nassets and\n\nliabilities still\n\nheld at\n\nMarch 31,\n\n2026*1\n\n \n \n\nChange in\n\nunrealized\n\ngains or losses\n\nincluded in\n\nother\ncomprehensive\nincome for\n\nassets and\n\nliabilities still\n\nheld at\n\nMarch 31,\n\n2026*2\n\n \n\n \n\nIncluded \nin\n\nearnings\n*1\n\n \n \n\nIncluded in\n\nother\n\ncomprehensive\n\nincome*2\n\n \n \n\nTotal\n\n \n\nLoans held for sale\n\n \n¥\n67,794\n \n \n¥\n(3,453\n)\n \n¥\n2,679\n \n \n¥\n(774\n)\n \n¥\n77\n \n \n¥\n(714\n)\n \n¥\n(30,699\n)\n \n¥\n0\n \n \n¥\n35,684\n \n \n¥\n(1,221\n)\n \n¥\n2,679\n \n\nAvailable-for-sale\n\ndebt securities\n\n \n \n217,654\n \n \n \n22,401\n \n \n \n(10,253\n)\n \n \n12,148\n \n \n \n138,155\n \n \n \n(1,335\n)\n \n \n(90,621\n)\n \n \n0\n \n \n \n276,001\n \n \n \n21,907\n \n \n \n(8,224\n) \n\nJapanese prefectural and foreign municipal bond securities\n\n \n \n10,878\n \n \n \n(198\n) \n \n \n618\n \n \n \n420\n \n \n \n0\n \n \n \n0\n \n \n \n(716\n)\n \n \n0\n \n \n \n10,582\n \n \n \n6\n \n \n \n618\n \n\nCorporate debt securities\n\n \n \n4,252\n \n \n \n20,968\n \n \n \n(12,004\n) \n \n \n8,964\n \n \n \n107,208\n \n \n \n0\n \n \n \n(2,233\n)\n \n \n0\n \n \n \n118,191\n \n \n \n20,968\n \n \n \n(12,004\n)\n\nCMBS and RMBS in the Americas\n\n \n \n7,082\n \n \n \n0\n \n \n \n59\n \n \n \n59\n \n \n \n0\n \n \n \n0\n \n \n \n(7,141\n)\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther asset-backed securities and debt securities\n\n \n \n195,442\n \n \n \n1,631\n \n \n \n1,074\n \n \n \n2,705\n \n \n \n30,947\n \n \n \n(1,335\n)\n \n \n(80,531\n)\n \n \n0\n \n \n \n147,228\n \n \n \n933\n \n \n \n3,162\n \n\nEquity securities\n\n \n \n162,210\n \n \n \n85,324\n \n \n \n12,598\n \n \n \n97,922\n \n \n \n19,731\n \n \n \n(44,110\n)\n \n \n(5,157\n)\n \n \n0\n \n \n \n230,596\n \n \n \n85,082\n \n \n \n12,579\n \n\nInvestment funds\n\n \n \n162,210\n \n \n \n85,324\n \n \n \n12,598\n \n \n \n97,922\n \n \n \n19,731\n \n \n \n(44,110\n)\n \n \n(5,157\n)\n \n \n0\n \n \n \n230,596\n \n \n \n85,082\n \n \n \n12,579\n \n\nDerivative assets and liabilities (net)\n\n \n \n8,165\n \n \n \n(1,223\n)\n \n \n488\n \n \n \n(735\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7,430\n \n \n \n(1,223\n)\n \n \n488\n \n\nOptions held/written and other\n\n \n \n8,165\n \n \n \n(1,223\n)\n \n \n488\n \n \n \n(735\n)\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7,430\n \n \n \n(1,223\n) \n \n \n488\n \n\nOther asset\n\n \n \n2,586\n \n \n \n(2,167\n)\n \n \n0\n \n \n \n(2,167\n)\n \n \n836\n \n \n \n0\n \n \n \n(92\n)\n \n \n0\n \n \n \n1,163\n \n \n \n(2,167\n)\n \n \n0\n \n\nReinsurance recoverables*5\n\n \n \n2,586\n \n \n \n(2,167\n)\n \n \n0\n \n \n \n(2,167\n)\n \n \n836\n \n \n \n0\n \n \n \n(92\n) \n \n \n0\n \n \n \n1,163\n \n \n \n(2,167\n)\n \n \n0\n \n\nPolicy Liabilities and Policy Account Balances\n\n \n \n136,257\n \n \n \n(25,594\n)\n \n \n271\n \n \n \n(25,323\n)\n \n \n0\n \n \n \n0\n \n \n \n(23,553\n)\n \n \n0\n \n \n \n138,027\n \n \n \n(25,594\n)\n \n \n271\n \n\nVariable annuity and variable life insurance contracts*6\n\n \n \n136,257\n \n \n \n(25,594\n)\n \n \n271\n \n \n \n(25,323\n)\n \n \n0\n \n \n \n0\n \n \n \n(23,553\n)\n \n \n0\n \n \n \n138,027\n \n \n \n(25,594\n)\n \n \n271\n \n\nAccounts Payable:\n\n \n \n15,259\n \n \n \n3,029\n \n \n \n(1,978\n)\n \n \n1,051\n \n \n \n1,475\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n15,683\n \n \n \n3,029\n \n \n \n(1,978\n)\n\nContingent Consideration\n\n \n \n15,259\n \n \n \n3,029\n \n \n \n(1,978\n)\n \n \n1,051\n \n \n \n1,475\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n15,683\n \n \n \n3,029\n \n \n \n(1,978\n)\n\n \n\nF-3\n\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n*1\n\nPrincipally, gains and losses from\n\navailable-for-sale\n\ndebt securities are included in “Finance revenues (including interest under the amortized cost method and principal plus interest)”, “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 “Life insurance premiums and related investment income” and loans held for sale, derivative assets and liabilities (net), and accounts payable are included in “Other (income) and expense” respectively.\n\n*2\n\nUnrealized gains and losses from loans held for sale are included in “Net change of foreign currency translation adjustments”, unrealized gains and losses from\n\navailable-for-sale\n\ndebt 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.”, unrealized gains and losses from accounts payable are included in “Net change of foreign currency translation adjustments”.\n\n*3\n\nIncreases resulting from an acquisition of a subsidiary and insurance contracts ceded to reinsurance companies are included.\n\n*4\n\nDecreases 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.\n\n*5\n\n“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.”\n\n*6\n\n“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. For the information about policy account balances for variable annuity and variable life insurance contracts and market risk benefits as of and for the fiscal year ended March 31, 2025 and 2026, see Note 24 “Long-Duration Insurance Contracts Relating to Life Insurance Operations.”\n\nIn fiscal 2024, foreign municipal bond securities totaling ¥6,818 million were transferred from Level 2 to Level 3, since the inputs became unobservable.\n\nIn fiscal 2025 and 2026, there were no transfers in or out of Level 3.\n\nThe following tables present recorded amounts of assets measured at fair value on a nonrecurring basis during fiscal 2025 and 2026. These assets are measured at fair value on a nonrecurring basis mainly to recognize impairment:\n\n2025\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance\nSheets\n\n \n  \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical\nAssets\n\n(Level 1)\n\n \n  \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n  \n\nSignificant\n\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\nReal estate collateral-dependent loans (net of allowance for credit losses)\n\n  \n¥\n5,881\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n5,881\n \n\nInvestment in operating leases, property under facility operations and office facilities\n\n  \n \n8,105\n \n  \n \n0\n \n  \n \n0\n \n  \n \n8,105\n \n\nEquity securities\n\n  \n \n15,193\n \n  \n \n0\n \n  \n \n15,193\n \n  \n \n0\n \n\nEquity method investments\n\n  \n \n20,619\n \n  \n \n0\n \n  \n \n0\n \n  \n \n20,619\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n49,798\n \n  \n¥\n    0\n \n  \n¥\n15,193\n \n  \n¥\n34,605\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-3\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n2026\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance\nSheets\n\n \n\n  \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical\nAssets\n\n(Level 1)\n\n \n\n  \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n\n  \n\nSignificant\n\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\nLoans held for sale\n\n  \n¥\n838\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n838\n \n\nReal estate collateral-dependent loans (net of allowance for credit losses)\n\n  \n \n12,646\n \n  \n \n0\n \n  \n \n0\n \n  \n \n12,646\n \n\nInvestment in operating leases, property under facility operations and office facilities\n\n  \n \n11,907\n \n  \n \n0\n \n  \n \n66\n \n  \n \n11,841\n \n\nLand and buildings undeveloped or under construction\n\n  \n \n2,203\n \n  \n \n0\n \n  \n \n0\n \n  \n \n2,203\n \n\nEquity securities\n\n  \n \n42,417\n \n  \n \n0\n \n  \n \n42,417\n \n  \n \n0\n \n\nEquity method investments\n\n  \n \n5,140\n \n  \n \n0\n \n  \n \n0\n \n  \n \n5,140\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n75,151\n \n  \n¥\n    0\n \n  \n¥\n42,483\n \n  \n¥\n32,668\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe following is a description of the main valuation methodologies used for assets and liabilities measured at fair value.\n\nLoans held for sale\n\nCertain loans, which the Company and its subsidiaries have the intent and ability to sell to outside parties in the foreseeable future, are considered\n\nheld-for-sale.\n\nThe loans held for sale in the Americas are classified as Level 2, if 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. The loans held for sale in the Americas are classified as Level 3, if the Company and its subsidiaries measure their fair value based on discounted cash flow methodologies using inputs that are unobservable in the market.\n\nReal estate collateral-dependent loans\n\nThe allowance for credit losses for large balance\nnon-homogeneous\nloans 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 loans with deterioration in credit quality determined using a present value technique is not considered a fair value measurement. However, measurement for loans with deterioration in credit quality 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.\n\nThe 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\n\n \n\nF-3\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nsignificant 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.\n\nReal estate collateral-dependent loans owned by a certain subsidiary are classified as Level 2, because fair value measurement is based on observable market prices.\n\nInvestment in operating leases, property under facility operations, office facilities and other assets, and land and buildings undeveloped or under construction\n\nInvestment 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, property under facility operations, office facilities and other assets, 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, and others 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 these 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.\n\nMovable properties owned by a certain subsidiary are classified as Level 2, because fair value measurement is based on observable inputs other than quoted prices included within Level 1, such as prices for similar assets.\n\nTrading debt securities and\n\navailable-for-sale\n\ndebt securities\n\nIf 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, appraisals, or broker quotes. Such securities are classified as Level 3, as the valuation models, appraisals, or 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.\n\nThe Company and its subsidiaries classified corporate debt securities, CMBS and RMBS in the Americas and other asset-backed securities and debt 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 and debt 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\n\n \n\nF-39\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\ncurrent information or vary substantially over time or among market makers, a significant increase in implied risk premium, a wide\nbid-ask\nspread, significant decline in new issuances, little or no public information (e.g. a\n\nprincipal-to-principal\n\nmarket) and other factors.\n\nThe corporate debt securities include a foreign convertible bond issued by AM Green (Luxembourg) S.à.r.l and received in conjunction with the partial sale of shares in Greenko Energy Holdings. It is measured at fair value using discounted cash flow methodology to estimate the equity value as of the transaction date, then, using a pricing model based on the Monte Carlo simulation to estimate the bond’s future conversion value and discounting it to the present value, which is classified as Level 3 because such appraisals involve unobservable inputs in the market. The fair value measurement uses discount rates and projected cash flows based on the business plan including future sales prices and sales volumes of green ammonia for the discounted cash flow methodology, and uses discount rate and equity volatility for the pricing model based on the Monte Carlo simulation. Discount rates, equity volatility, and projected cash flows based on the business plan are unobservable inputs. An increase (decrease) in the discount rate and equity volatility and a decrease (increase) in projected cash flows based on the business plan would result in a decrease (increase) in the fair value of corporate debt securities.\n\nWith respect to certain CMBS and RMBS in the Americas and other asset-backed securities and debt securities, the Company and its subsidiaries classified these securities that were measured at fair value based on the observable inputs such as trading price and/or bid price as Level 2. 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 and debt securities.\n\nEquity securities and equity method investments\n\nIf 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. In addition, a certain Americas subsidiary measures its investments held by investment companies which are owned by the subsidiary at fair value. These investment funds, certain equity securities and certain equity method investments are classified as Level 3, because fair value measurement is based on discounted cash flow methodologies, market multiple valuation methods, appraisals, or broker quotes. Discounted cash flow methodologies use future cash flows to be generated from investees, weighted average cost of capital (WACC) and others. Market multiple valuation methods use earnings before interest, taxes, depreciation and amortization (EBITDA) multiples based on actual and projected cash flows, comparable peer companies, and comparable precedent transactions and others. Furthermore, certain subsidiaries elected the fair value option for investments in some funds. These investment funds 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, discounting to net asset value based on inputs that are unobservable in the market, appraisals, or broker quotes.\n\n \n\nF-40\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nDerivatives\n\nFor exchange-traded derivatives, fair value is based on quoted market prices and is accordingly classified as Level 1. For\nnon-exchange\ntraded 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.\n\nReinsurance recoverables\n\nCertain 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.\n\nVariable annuity and variable life insurance contracts\n\nA 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.\n\nAccounts payable (Contingent consideration)\n\nA certain subsidiary records a part of consideration for acquiring noncontrolling interests of its subsidiary as accounts payable (contingent consideration), and it is classified as Level 3 because fair value measurement is based on discounted cash flow methodologies.\n\n \n\nF-\n41\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nInformation about Level 3 Fair Value Measurements\n\nThe 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, 2025 and 2026.\n\n \n\n \n\n  \n\nMarch 31, 2025\n\n \n\n \n\n  \n\nMillions of\nyen\n\n \n\n  \n\nValuation technique(s)\n\n  \n\nSignificant\n\nunobservable inputs\n\n  \n\nRange\n\n(Weighted average)\n\n \n\n \n\n  \n\nFair value\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\nLoans held for sale\n\n  \n¥\n67,794\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n\n7.0\n% – \n12.1\n%\n \n\n  \n\n  \n\n  \n\n  \n \n(\n9.4\n%)\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n\n  \n\n  \n\n  \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n \n6,319\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n\n5.8\n% – \n9.8\n%\n \n\n  \n\n  \n\n  \n\n  \n \n(\n8.0\n%)\n \n\n  \n \n\n4,559\n\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n \n— \n \n\nCorporate debt securities\n\n  \n \n302\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n\n1.5\n%\n \n\n  \n\n  \n\n  \n\n  \n \n(\n1.5\n%)\n \n\n  \n \n3,950\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n \n— \n \n\nCMBS and RMBS in the Americas\n\n  \n \n7,082\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n \n— \n \n\nOther asset-backed securities and debt securities\n\n  \n \n34,670\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n0.4% – 51.2%\n \n\n  \n\n  \n\n  \n\n  \n \n(5.5%)\n \n\n  \n\n  \n\n  \nProbability of default\n  \n \n0.2%\n \n\n  \n\n  \n\n  \n\n  \n \n(0.2%)\n \n\n  \n \n160,772\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n \n— \n \n\nEquity securities:\n\n  \n\n  \n\n  \n\n  \n\nInvestment funds and other\n\n  \n \n133,585\n \n  \nDiscounted cash flows\n  \nWACC\n  \n \n13.3% – 23.7%\n \n\n  \n\n  \n\n  \n\n  \n \n(\n16.8\n%)\n \n\n  \n\n  \n\n  \nEV/Terminal EBITDA multiple\n  \n \n\n4.2x\n-\n12.0\nx\n\n \n\n  \n\n  \n\n  \n\n  \n \n(\n8.8x\n)\n \n\n  \n\n  \nMarket multiples\n  \nEV/Last twelve months EBITDA multiple\n  \n \n4.3x-\n9.5x\n\n \n\n  \n\n  \n\n  \n\n  \n \n(7.8x)\n \n\n  \n\n  \n\n  \nEV/Forward EBITDA multiple\n  \n \n\n4.2x-9.0x\n\n \n\n  \n\n  \n\n  \n\n  \n \n\n(7.7\nx)\n \n\n  \n\n  \n\n  \nEV/Precedent transaction last twelve months EBITDA multiple\n  \n \n\n4.3x-11.9x\n\n \n\n  \n\n  \n\n  \n\n  \n \n(8.7x)\n \n\n  \n \n22,859\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n \n— \n \n\n  \n \n5,766\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n11.5% – 12.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(11.7%)\n \n\nDerivative assets:\n\n  \n\n  \n\n  \n\n  \n\nOptions held/written and other\n\n  \n \n8,297\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n12.0% – 33.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(14.7%)\n \n\n  \n \n520\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n \n— \n \n\nOther assets:\n\n  \n\n  \n\n  \n\n  \n\nReinsurance recoverables\n\n  \n \n2,586\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n0.5% – 2.4%\n \n\n  \n\n  \n\n  \n\n  \n \n(1.3%)\n \n\n  \n\n  \n\n  \nMortality rate\n  \n \n0.0% – 100.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(2.9%)\n \n\n  \n\n  \n\n  \nLapse rate\n  \n \n1.5% – 14.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(4.7%)\n \n\n  \n\n  \n\n  \n\nAnnuitization rate\n\n(guaranteed minimum annuity benefit)\n\n  \n \n100.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(100.0%)\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\nTotal\n\n  \n¥\n459,061\n \n  \n\n  \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\nLiabilities:\n\n  \n\n  \n\n  \n\n  \n\nDerivative liabilities:\n\n  \n\n  \n\n  \n\n  \n\nOptions held/written and other\n\n  \n¥\n652\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n12.0% – 33.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(14.7%)\n \n\nPolicy liabilities and Policy Account Balances:\n\n  \n\n  \n\n  \n\n  \n\nVariable annuity and variable life insurance contracts\n\n  \n \n136,257\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n \n0.5% – 2.4%\n \n\n  \n\n  \n\n  \n\n  \n \n(1.3%)\n \n\n  \n\n  \n\n  \nMortality rate\n  \n \n0.0% – 100.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(2.3%)\n \n\n  \n\n  \n\n  \nLapse rate\n  \n \n1.5% – 30.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(5.7%)\n \n\n  \n\n  \n\n  \n\nAnnuitization rate\n\n(guaranteed minimum annuity benefit)\n\n  \n \n0.0% – 100.0%\n \n\n  \n\n  \n\n  \n\n  \n \n(67.1%)\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\nAccounts Payable:\n\n  \n\n  \n\n  \n\n  \n\nContingent Consideration\n\n  \n \n15,259\n \n  \nDiscounted cash flows\n  \nEV/Terminal EBITDA multiple\n  \n \n15.0x\n \n\n  \n\n  \n\n  \n\n  \n \n(15.0x)\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\nTotal\n\n  \n¥\n152,168\n \n  \n\n  \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\n \n\nF-\n4\n2\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMarch 31, 2026\n\n \n\n \n\n  \n\nMillions of\nyen\n\n \n\n  \n\nValuation technique(s)\n\n  \n\nSignificant\n\nunobservable inputs\n\n  \n\nRange\n\n(Weighted average)\n\n \n\n \n\n  \n\nFair value\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\nLoans held for sale\n\n  \n\n¥\n\n35,684\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n6.1% – 9.9%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(7.9%)\n\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n\n  \n\n  \n\n  \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n\n \n\n6,381\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n3.6% – 9.8%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(8.0%)\n\n \n\n  \n\n \n\n4,201\n\n \n\n  \n\nAppraisals/Broker quotes\n\n  \n\n— \n\n  \n\n \n\n— \n\n \n\nCorporate debt securities\n\n  \n\n \n\n115,931\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n7.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(7.0%)\n\n \n\n  \n\n  \n\n  \n\nEquity Volatility\n\n  \n\n \n\n50.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(50.0%)\n\n \n\n  \n\n \n\n1,944\n\n \n\n  \n\nAppraisals/Broker quotes\n\n  \n\n— \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n316\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n2.4%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(2.4%)\n\n \n\nOther asset-backed securities and debt securities\n\n  \n\n \n\n42,120\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n0.4% – 51.2%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(5.4%)\n\n \n\n  \n\n  \n\n  \n\nProbability of default\n\n  \n\n \n\n0.2%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(0.2%)\n\n \n\n  \n\n \n\n105,108\n\n \n\n  \n\nAppraisals/Broker quotes\n\n  \n\n— \n\n  \n\n \n\n— \n\n \n\nEquity securities:\n\n  \n\n  \n\n  \n\n  \n\nInvestment funds\n\n  \n\n \n\n203,796\n\n \n\n  \n\nMarket multiples\n\n  \n\nEV/Last twelve months EBITDA multiple\n\n  \n\n \n\n3.4x-9.0x\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(7.7x)\n\n \n\n  \n\n  \n\n  \n\nEV/Next twelve months EBITDA multiple\n\n  \n\n \n\n3.2x-8.0x\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(5.1x)\n\n \n\n  \n\n \n\n22,000\n\n \n\n  \n\nAppraisals/Broker quotes\n\n  \n\n— \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n4,800\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n11.0% – 11.5%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(11.2%)\n\n \n\nDerivative assets:\n\n  \n\n  \n\n  \n\n  \n\nOptions held/written and other\n\n  \n\n \n\n7,611\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n12.0% – 33.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(14.9%)\n\n \n\n  \n\n \n\n376\n\n \n\n  \n\nAppraisals/Broker quotes\n\n  \n\n— \n\n  \n\n \n\n— \n\n \n\nOther assets:\n\n  \n\n  \n\n  \n\n  \n\nReinsurance recoverables\n\n  \n\n \n\n1,163\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n1.1% – 3.5%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(2.0%)\n\n \n\n  \n\n  \n\n  \n\nMortality rate\n\n  \n\n \n\n0.0% – 100.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(2.8%)\n\n \n\n  \n\n  \n\n  \n\nLapse rate\n\n  \n\n \n\n1.5% – 14.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(4.5%)\n\n \n\n  \n\n  \n\n  \n\nAnnuitization rate\n\n(guaranteed minimum annuity benefit)\n\n  \n\n \n\n100.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(100.0%)\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n  \n\n  \n\nTotal\n\n  \n\n¥\n\n551,431\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n \n\n \n\n  \n\n  \n\n  \n\nLiabilities:\n\n  \n\n  \n\n  \n\n  \n\nDerivative liabilities:\n\n  \n\n  \n\n  \n\n  \n\nOptions held/written and other\n\n  \n\n¥\n\n557\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount\nrate\n\n  \n\n \n\n12.0% – 33.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(14.9%)\n\n \n\nPolicy liabilities and Policy Account Balances:\n\n  \n\n  \n\n  \n\n  \n\nVariable annuity and variable life insurance contracts\n\n  \n\n \n\n138,027\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n1.1% – 3.5%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(2.0%)\n\n \n\n  \n\n  \n\n  \n\nMortality rate\n\n  \n\n \n\n0.0% – 100.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(2.3%)\n\n \n\n  \n\n  \n\n  \n\nLapse rate\n\n  \n\n \n\n1.5% – 30.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(5.6%)\n\n \n\n  \n\n  \n\n  \n\nAnnuitization rate\n\n(guaranteed minimum annuity benefit)\n\n  \n\n \n\n0.0% – 100.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(64.4%)\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n  \n\n  \n\nAccounts Payable:\n\n  \n\n  \n\n  \n\n  \n\nContingent Consideration\n\n  \n\n \n\n14,084\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nEV/Terminal EBITDA multiple\n\n  \n\n \n\n15.0x\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(15.0x)\n\n \n\n  \n\n \n\n1,599\n\n \n\n  \n\nDiscounted cash flows\n\n  \n\nDiscount rate\n\n  \n\n \n\n4.8% – 5.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(4.9%)\n\n \n\n  \n\n  \n\n  \n\nEBTDA Volatility\n\n  \n\n \n\n35.0%\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n(35.0%)\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n  \n\n  \n\nTotal\n\n  \n\n¥\n\n154,267\n\n \n\n  \n\n  \n\n  \n\n  \n\n \n\n \n\n \n\n  \n\n  \n\n  \n\n \n\nF-4\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe 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 2025 and 2026.\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\nMillions of\nyen\n\n \n\n  \n\nValuation technique(s)\n\n  \n\nSignificant\n\nunobservable inputs\n\n  \n\nRange\n\n(Weighted average)\n\n \n\n  \n\nFair value\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\nReal estate collateral-dependent loans (net of allowance for credit losses)\n\n  \n¥\n1,064\n \n  \nDirect capitalization\n  \nCapitalization rate\n  \n4.4% – 5.2%\n\n  \n\n  \n\n  \n\n  \n(4.7%)\n\n  \n \n4,817\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n— \n\nInvestment in operating leases, property under facility operations and office facilities\n\n  \n \n3,314\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n6.1%\n\n  \n\n  \n\n  \n\n  \n(6.1%)\n\n  \n \n4,791\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n— \n\nEquity method investments\n\n  \n \n20,619\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n— \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\n  \n¥\n34,605\n \n  \n\n  \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\n \n  \n\n2026\n\n \n  \n\nMillions of\nyen\n\n \n  \n\nValuation technique(s)\n\n  \n\nSignificant\n\nunobservable inputs\n\n  \n\nRange\n\n(Weighted average)\n\n \n  \n\nFair value\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\nLoans held for sale\n\n  \n¥\n838\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n— \n\nReal estate collateral-dependent loans (net of allowance for credit losses)\n\n  \n \n1,093\n \n  \nDirect capitalization\n  \nCapitalization rate\n  \n4.8% – 6.2%\n\n  \n\n  \n\n  \n\n  \n(5.2%)\n\n  \n \n11,553\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n— \n\nInvestment in operating leases, property under facility operations and office facilities\n\n  \n \n6,283\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n0.0% – 5.3%\n\n  \n\n  \n\n  \n\n  \n(5.2%)\n\n  \n \n5,558\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n— \n\nLand and buildings undeveloped or under construction\n\n  \n \n2,203\n \n  \nDiscounted cash flows\n  \nDiscount rate\n  \n3.9%\n\n  \n\n  \n\n  \n\n  \n(3.9%)\n\nEquity method investments\n\n  \n \n844\n \n  \nDirect capitalization\n  \nCapitalization rate\n  \n7.5%\n\n  \n\n  \n\n  \n\n  \n(7.5%)\n\n  \n \n2,681\n \n  \nMarket multiples\n  \nEV/EBITDA multiple\n  \n6.8x – 7.8x\n\n  \n\n  \n\n  \n\n  \n(6.9x)\n\n  \n \n1,615\n \n  \nAppraisals/Broker quotes\n  \n— \n  \n— \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\n  \n¥\n32,668\n \n  \n\n  \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n\nThe 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.\n\nCertain 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.\n\n \n\nF-4\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAdditionally, 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.\n\nUnobservable inputs are weighted by the relative fair value of the asset or liability.\n\nFor more analysis of the uncertainty of each input, see the description of the main valuation methodologies used for assets and liabilities measured at fair value.\n\n3. Acquisitions and Divestitures\n\n(1) Acquisitions\n\nDuring fiscal\n2024\n, the Company and its subsidiaries acquired entities for a total cost of the acquisition consideration of ¥\n11,894\n million, which was paid mainly in cash. Goodwill initially recognized in these transactions amounted to ¥\n4,241\n million and the goodwill is not deductible for income tax purposes. The amount of acquired intangible assets other than goodwill recognized in these transactions was ¥\n7,049\n million. The acquisitions were mainly included in PE Investment and Concession segment.\n\nDuring fiscal 2025, the Company and its subsidiaries acquired entities for a total cost of the acquisition consideration of ¥33,041 million, which was paid mainly in cash. Goodwill initially recognized in these transactions amounted to ¥9,081 million and the goodwill is not deductible for income tax purposes. The amount of acquired intangible assets other than goodwill recognized in these transactions was ¥21,684 \n\nmillion. The acquisitions were mainly included in PE Investment and Concession segment.\n\nDuring fiscal 2026, the Company and its subsidiaries acquired entities for a total cost of the acquisition consideration of ¥\n\n165,859 \n\nmillion, which was paid mainly in cash. Goodwill initially recognized in these transactions amounted to ¥150,974 million and the goodwill is not deductible for income tax purposes. The amount of acquired intangible assets other than goodwill recogniz\ned in these transactions was ¥\n\n35,014\n\n \n\nmillion.\n\n The Company reflected certain preliminary estimates with respect to the fair value of certain components of the underlying net assets of these entities in determining amounts of the goodwill. The acquisitions were mainly included in ORIX USA segment. The amount of the goodwill and intangible assets could possibly be adjusted because for certain of these acquisitions, the purchase price allocations have not been completed yet with respect to the final valuation of acquired intangible assets among others.\n\nThe Company did not recognize any bargain purchase gain during fiscal 2024 and 2026.\n\n \n\nAs\na result of the assessment of the purchase price allocation, the Company recognized a bargain purchase gain of ¥\n3,750\n million during fiscal 2025 associated with one of its acquisitions during fiscal 2025, due to the fair value of the net assets, which is the difference between the assets acquired and the liabilities assumed, exceeding the fair value of consideration transferred. The bargain purchase gain was included in Asia and Australia segment. \n\nThe segment in which goodwill is allocated is disclosed in Note 13 “Goodwill and Other Intangible Assets.”\n\n(2) Divestitures\n\nGains on sales of subsidiaries and equity method investments and liquidation losses, net for fiscal 2024, 2025 and 2026 amounted to\n\n¥72,488 million, ¥87,705 million and ¥111,311 million, respectively. Gains (losses) on sales of subsidiaries and equity method investments and liquidation losses, net for fiscal 2024 mainly\n\n \n\nF-4\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nconsisted of ¥19,822 million in PE Investment and Concession segment, ¥(5,557) million in Environment and Energy segment, ¥57,470 million in Banking and Credit segment, ¥(1,978) million in ORIX USA segment and ¥2,502 million in ORIX Europe segment. Gains (losses) on sales of subsidiaries and equity method investments and liquidation losses, net for fiscal 2025\n \n\nmainly\n\nconsisted of ¥7,294 million in Corporate Financial Services and Maintenance Leasing segment, ¥350 million in Real Estate segment, ¥44,503 million in PE Investment and Concession segment, ¥6,365 million in Environment and Energy segment, ¥478 million in Aircraft and Ships segment, ¥29,224 million in ORIX USA segment, ¥(624) million in ORIX Europe segment and ¥115 million in Asia and Australia segment. Gains (losses) on sales of subsidiaries and equity method investments and liquidation losses, net for fiscal 2026\nmainly\n \n\nconsisted of ¥6,918 million in Corporate Financial Services and Maintenance Leasing segment, ¥86,645 million in Environment and Energy segment, ¥408 million in Aircraft and Ships segment, ¥3,164 million in ORIX USA segment, ¥8,762 million in ORIX Europe segment and ¥5,412 million in Asia and Australia segment.\n\nDuring fiscal 2024, the Company sold 66% of the common shares of a consolidated subsidiary, ORIX Credit Corporation (hereinafter, “ORIX Credit”, which changed its name to DOCOMO Finance, Inc on April 1, 2025) to a third-party. The Company retains a 34% interest in ORIX Credit, which became an equity method investment from fiscal 2024. The sale of the controlling interest resulted in a gain\no\nf\n \n¥37,930 million, and the remeasurement of the retained interest\na\nt its fair value resulted in a gain of ¥19,540 \n\nmillion, both of which were included in earnings as gains on sales of subsidiaries and equity method investment and liquidation losses, net during fiscal 2024. The fair value of the retained interest was remeasured using the stock value based on the sale proceeds. During fiscal 2025 and 2026, the Company did not have any significant business divestitures.\n\n4. Revenues from Contracts with Customers\n\nThe following table provides information about revenues from contracts with customers, and other sources of revenue in fiscal 2024, 2025 and 2026.\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nGoods or services category\n\n  \n\n  \n\n  \n\nSales of goods\n\n  \n¥\n266,390\n \n  \n¥\n269,050\n \n  \n¥\n320,653\n \n\nReal estate sales\n\n  \n \n107,524\n \n  \n \n104,105\n \n  \n \n121,933\n \n\nAsset management and servicing\n\n  \n \n244,508\n \n  \n \n275,929\n \n  \n \n297,626\n \n\nAutomobile related services\n\n  \n \n88,325\n \n  \n \n87,173\n \n  \n \n93,011\n \n\nFacilities operation\n\n  \n \n76,087\n \n  \n \n83,559\n \n  \n \n102,956\n \n\nEnvironment and energy services\n\n  \n \n158,075\n \n  \n \n175,651\n \n  \n \n169,047\n \n\nReal estate management and brokerage\n\n  \n \n99,843\n \n  \n \n102,369\n \n  \n \n107,010\n \n\nReal estate contract work\n\n  \n \n152,022\n \n  \n \n162,921\n \n  \n \n164,262\n \n\nOther\n\n  \n \n107,191\n \n  \n \n91,506\n \n  \n \n127,531\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal revenues from contracts with customers\n\n  \n \n1,299,965\n \n  \n \n1,352,263\n \n  \n \n1,504,029\n \n\nOther revenues *\n\n  \n \n38,959\n \n  \n \n40,175\n \n  \n \n50,940\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal sales of goods and real estate and services income\n\n  \n¥\n1,338,924\n \n  \n¥\n1,392,438\n \n  \n¥\n1,554,969\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nOther revenues are not in the scope of revenue from contracts with customers.\n\n \n\nF-4\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table provides information about costs of goods sold and real estate sold and services expense in fiscal 2024, 2025 and 2026.\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nGoods or services category\n\n  \n\n  \n\n  \n\nCosts of goods sold\n\n  \n¥\n  179,799\n \n  \n¥\n  184,674\n \n  \n¥\n  226,368\n \n\nCosts of real estate sold\n\n  \n \n88,828\n \n  \n \n87,159\n \n  \n \n105,620\n \n\nAsset management and servicing\n\n  \n \n58,376\n \n  \n \n69,377\n \n  \n \n74,079\n \n\nAutomobile related services\n\n  \n \n56,880\n \n  \n \n56,832\n \n  \n \n63,957\n \n\nFacilities operation\n\n  \n \n65,979\n \n  \n \n69,926\n \n  \n \n88,275\n \n\nEnvironment and energy services\n\n  \n \n109,923\n \n  \n \n136,426\n \n  \n \n131,409\n \n\nReal estate management and brokerage\n\n  \n \n88,973\n \n  \n \n93,296\n \n  \n \n96,104\n \n\nReal estate contract work\n\n  \n \n132,656\n \n  \n \n139,430\n \n  \n \n137,337\n \n\nOther\n\n  \n \n47,314\n \n  \n \n38,858\n \n  \n \n43,168\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal expenses of costs of goods and real estate sold and services expenses\n\n  \n¥\n828,728\n \n  \n¥\n875,978\n \n  \n¥\n966,317\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe 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. When a revenue transaction involves a third party, 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.\n\nFor further information about breakdowns of revenues disaggregated by goods or services category and geographical location by segment, see Note 32 “Segment Information.”\n\nRevenue recognition criteria on each goods or services category are mainly as follows:\n\nSales of goods\n\nThe Company and its subsidiaries sell various goods such as cosmetics, health foods, medical equipment 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.\n\nReal estate sales\n\nCertain subsidiaries are involved in condominium business. Revenues from sales of detached houses and residential condominiums are recognized when the real estate is delivered to customers.\n\n \n\nF-4\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAsset management and servicing\n\nCertain 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 all of the benefits provided by the subsidiaries 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 as 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.\n\nAutomobile related services\n\nCertain subsidiaries mainly provide automobile maintenance services to customers, as automobile related services. In the service, since customers simultaneously receive and consume all of the benefits provided by the subsidiaries 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.\n\nFacilities operation\n\nThe Company and its subsidiaries are running hotels, Japanese inns, 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 all of the benefits provided by the Company and its subsidiaries as the Company and its subsidiaries perform. The value transferred to customers is directly measured based on the usage period. With respect to the operation of a multipurpose dome, a certain subsidiary receives 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 within the scope of revenue from contracts with customers because these gains refer to transfers of\nnon-financial\nassets to counterparties that are not considered to be our customers.\n\nEnvironment and energy services\n\nThe Company and its subsidiaries offer services that provide electric power to 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 all of the benefits provided by the Company and its subsidiaries as the\n\n \n\nF-48\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nCompany 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 all of the benefits provided by the subsidiaries as the subsidiaries perform. The value transferred to customers is directly measured based on the amount of resources and waste to be processed.\n\nReal estate management and brokerage\n\nThe Company and its subsidiaries mainly offer management of condominiums, office buildings, facilities, and others, to customers, as real estate management and brokerage business. For these services, customers simultaneously receive and consume all of the benefits provided by the Company and its subsidiaries as the Company and its subsidiaries perform. Therefore, based on progress measured over the contract period with customers, revenues are recognized by directly measuring the value of the services transferred to customers. 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.\n\nReal estate contract work\n\nCertain subsidiaries offer repair and contract work for condominiums, office buildings, facilities, and others, 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 a part of its performance obligations that it performs as contract assets, and the amounts are reported under other assets on the consolidated balance sheet. 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.\n\nOther\n\nThe Company and its subsidiaries have been developing a variety of businesses. Main revenue streams are as follows:\n\nMaintenance services of software, measurement equipment and other:\n\nCertain subsidiaries offer information systems hardware, software maintenance services and support, and maintenance of measurement equipment to customers. For these services, customers simultaneously receive and consume all of the benefits provided by the subsidiaries as the subsidiaries perform. Therefore, based on progress measured over the contract period with customers, revenues are recognized by directly measuring the value of the services transferred 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.\n\nFee business:\n\nThe Company and its subsidiaries are involved in insurance policy referrals and other agency business. Furthermore, certain subsidiaries engage in asset securitization businesses. Commission revenues from insurance\n\n \n\nF-49\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\npolicy referrals and other agency businesses are primarily recognized when the contract between our customers and their client is signed. Revenues from the asset securitization businesses consist primarily of advisory\nfees\nand performance fees. For advisory fee revenues, customers simultaneously receive and consume the benefits of the services as the performance obligations are fulfilled. Therefore, based on progress measured over the contract period with customers, revenues are recognized by directly measuring the value of the services transferred to customers. Performance fees are recognized when the performance obligations are satisfied, either upon the completion of the asset sale or upon the delivery of the final report to the customer, 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 fees are estimated by using the most likely amount method, in accordance with the contract terms. The subsidiaries receive payments from customers before satisfying performance obligations, and the amounts are reported in other liabilities on the consolidated balance sheet as contract liabilities.\n\nThe following table provides information about balances from contracts with customers as of March 31, 2025 and 2026.\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nMarch 31, 2025\n\n \n\n  \n\nMarch 31, 2026\n\n \n\nTrade Notes, Accounts and Other Receivable\n\n  \n¥\n  208,642\n \n  \n¥\n246,881\n \n\nContract assets (Included in Other Assets)\n\n  \n \n14,154\n \n  \n \n15,815\n \n\nContract liabilities (Included in Other Liabilities)\n\n  \n \n40,441\n \n  \n \n46,164\n \n\nFor fiscal 2025 and 2026, there were no significant changes in contract assets and contract liabilities.\n\nFor fiscal 2025 and 2026, revenue amounting to ¥25,338 million and ¥32,402 million were included in contract liabilities as of the beginning of each fiscal year, respectively.\n\nAs of March 31, 2026, transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) is mainly related to automobile related services and real estate sales and amounted to ¥219,893 million. Remaining term for the obligations ranges up to 20 years. Furthermore, automobile related services primarily constitute the performance obligations that are unsatisfied (or partially unsatisfied) and 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, 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, sales- or usage-based royalty and directly allocable variable consideration to wholly unsatisfied performance obligation are not included. The transaction price allocated to unsatisfied performance obligations does not include the estimate of material variable consideration.\n\nVariable consideration not included in the transaction price is mainly related to performance fees of asset management business.\n\nAs of March 31, 2025 and 2026, assets recognized from the costs to obtain or fulfill contracts with customers were not material.\n\n \n\nF-\n50\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n5. Cash Flow Information\n\nThe following table provides information about Cash, Cash Equivalents and Restricted Cash which are included in the Company’s consolidated balance sheets as of March 31, 2025 and 2026, respectively.\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nCash and Cash Equivalents\n\n  \n¥\n1,206,573\n \n  \n¥\n1,334,945\n \n\nRestricted Cash\n\n  \n \n115,410\n \n  \n \n116,154\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCash, Cash Equivalents and Restricted Cash\n\n  \n¥\n1,321,983\n \n  \n¥\n1,451,099\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCash payments during fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nCash payments:\n\n  \n\n  \n\n  \n\nInterest\n\n  \n¥\n  182,633\n \n  \n¥\n   168,101\n \n  \n¥\n188,625\n \n\nIncome taxes, net *\n\n  \n \n3,507\n \n  \n \n113,122\n \n  \n \n—\n \n\n \n\n*\n\nFrom fiscal 2026, cash payments for “income taxes, net” are disclosed in Note 16 of “Income Taxes”, due to the adoption of Accounting Standards Update 2023-09.\n\nThe main\nnon-cash\nactivities in fiscal 2024, 2025 and 2026 are as follows.\n\nIn fiscal 2024, 2025 and 2026, real estate under operating leases of ¥9,442 million, ¥12,494 million and ¥16,903 million, respectively, were recognized with the corresponding amounts of installment loans being derecognized as a result of acquiring real estate collateral. In fiscal 2024 and 202\n5\n, other assets of ¥29 \n\nmillion and\n \n\n¥\n2\n \n\nmillion, respectively, were recognized with the corresponding amounts of installment loans being derecognized as a result of acquiring real estate collateral. In fiscal 2026, no other assets were recognized with the corresponding amounts of installment loans being derecognized as a result of acquiring real estate collateral. In fiscal 2024, 2025 and 2026, investment in securities of\n\n¥\n\n3,452 million, ¥\n311\n million and ¥\n1,129\n million, were recognized with the corresponding amounts of installment loans being derecognized as a result of restructuring.\n\nIn fiscal 2024, assets and liabilities decreased by ¥1,777 million and ¥0 million in the Company’s consolidated balance sheet due to deconsolidation of a subsidiary and certain VIEs which had been consolidated by certain subsidiaries. The derecognized assets mainly consist of investment in securities, and the derecognized liabilities mainly consist of other liabilities. In fiscal 2025, assets and liabilities decreased by ¥3,201 million and ¥1,051 \n\nmillion in the Company’s consolidated balance sheet due to deconsolidation of a subsidiary and certain VIEs which had been consolidated by certain subsidiaries. The derecognized assets mainly consist of investment in securities, and the derecognized liabilities mainly consist of long-term debt. In fiscal 2026, assets and liabilities decreased by ¥1,255 million and ¥296\n\nmillion in the Company’s consolidated balance sheet due to deconsolidation of a subsidiary and certain VIEs which had been consolidated by certain subsidiaries. The derecognized assets mainly consist of investment in securities, and the derecognized liabilities mainly consist of other liabilities. In fiscal 2026, real estate under operating leases of ¥15,619 million were recognized with the corresponding amounts of installment loans being derecognized as a result of consolidation of certain VIEs at some subsidiaries. Recognition and derecognition of these assets and liabilities were not included in cash flows from investing activities or financing activities in the consolidated statements of cash flows because they did not involve cash transactions.\n\n \n\nF-\n51\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nROU assets obtained in exchange for lease liabilities were not included in cash flows from investing activities or financing activities because they did not involve cash transactions. For further information, see Note 6 “Leases.”\n\nIn fiscal 2026, the convertible bonds with a carrying amount of\n\n ¥\n107,208\n\nmillion received in conjunction with the partial sale of shares in equity method investments were not included in cash flows from investing activities in the consolidated statements of cash flows because they did not involve cash transactions.\n\n \n\n6. Leases\n\n(1) Lessor\n\nSome 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.\n\nThe 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.\n\nWhen auto leases are bundled with maintenance contracts, considerations on contracts are allocated based upon the estimated standalone selling prices of the lease and\nnon-lease\ncomponents. Lease components generally include product and financing cost, and\nnon-lease\ncomponents generally consist of maintenance contracts.\n\nA certain subsidiary is providing automobile related services, and applying practical expedients, to not separate\nnon-lease\ncomponents from the associated lease components. In this service, ASC 606 is applied to the entire contract because the consideration related to\nnon-lease\ncomponents 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.\n\nLease income for fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nFiscal Year ended\nMarch 31, 2024\n\n \n\n  \n\nFiscal Year ended\n\nMarch 31, 2025\n\n \n\n  \n\nFiscal Year ended\n\nMarch 31, 2026\n\n \n\nLease income – net investment in leases\n\n  \n\n  \n\n  \n\nInterest income\n\n  \n¥\n87,189\n \n  \n¥\n92,327\n \n  \n¥\n96,118\n \n\nOther\n\n  \n \n2,500\n \n  \n \n3,849\n \n  \n \n4,207\n \n\nLease income – operating leases\n\n*\n\n  \n \n535,490\n \n  \n \n624,444\n \n  \n \n641,185\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal lease income\n\n  \n¥\n625,179\n \n  \n¥\n720,620\n \n  \n¥\n741,510\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nF-52\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n*\n\nGains from the disposition of real estate under operating leases included in operating lease revenues were ¥20,960 million, ¥31,965 million and ¥20,689 million, and gains from the disposition of operating lease assets other than real estate included in operating lease revenues were ¥32,481 million, ¥44,668 million and ¥49,426 million for fiscal 2024, 2025 and 2026, respectively.\n\nLease income from net investment in leases is included in finance revenues in the consolidated statements of income. Gains and losses from the disposition of net investment in leases were not material for fiscal 2024, 2025 and 2026.\n\n \n\n \n\nNet investment in leases at March 31, 2025 and 2026 consists of the following:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nMarch 31, 2025\n\n \n\n  \n\nMarch 31, 2026\n\n \n\nLease receivables*\n\n  \n¥\n1,132,186\n \n  \n¥\n1,209,630\n \n\nUnguaranteed residual value\n\n  \n \n33,908\n \n  \n \n36,581\n \n\nInitial direct costs\n\n  \n \n1,286\n \n  \n \n1,280\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n1,167,380\n \n  \n¥\n1,247,491\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nSome lease contracts are subject to government assistance for the customers’ acquisition of leased assets, mainly for the purpose of environmental measures. This government assistance is accounted for as a reduction of lease receivables of lease contracts when the Company and its subsidiaries confirm receipt of cash. The amount of a reduction of lease receivables were ¥32,357 million and ¥31,482 million as of March 31, 2025 and 2026, respectively. Benefits of the government assistance are attributed to the customers by the reduced lease payments. Furthermore, remaining term of government assistance contracts ranges up to 13 years and 15 years as of March 31, 2025 and 2026, respectively. And when receiving the government assistance, restrictions mainly on disposal of property and duty of keeping documents occur for a certain period of time.\n\nInvestment in operating leases at March 31, 2025 and 2026 consists of the following:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nMarch 31, 2025\n\n \n\n \n\nMarch 31, 2026\n\n \n\nTransportation equipment\n\n  \n¥\n1,912,604\n \n \n¥\n1,987,797\n \n\nMeasuring and information-related equipment\n\n  \n \n436,122\n \n \n \n523,388\n \n\nReal estate\n\n  \n \n364,004\n \n \n \n461,203\n \n\nOther\n\n  \n \n82,516\n \n \n \n101,678\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n2,795,246\n \n \n \n3,074,066\n \n\nAccumulated depreciation\n\n  \n \n(946,341\n) \n \n \n(1,033,293\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet\n\n  \n \n1,848,905\n \n \n \n2,040,773\n \n\nRight-of-use\n\nassets\n\n  \n \n73,518\n \n \n \n69,030\n \n\nAccrued rental receivables\n\n  \n \n46,248\n \n \n \n44,415\n \n\nAllowance for doubtful receivables on operating leases\n\n  \n \n(1,493\n) \n \n \n(1,398\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n1,967,178\n \n \n¥\n2,152,820\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-53\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nCosts of operating leases include depreciation and various expenses (insurance, property tax and other). Depreciation and various expenses for fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nDepreciation expenses\n\n  \n¥\n261,723\n \n  \n¥\n283,219\n \n  \n¥\n297,448\n \n\nVarious expenses\n\n  \n \n95,037\n \n  \n \n111,602\n \n  \n \n114,491\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n  356,760\n \n  \n¥\n  394,821\n \n  \n¥\n  411,939\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nRemaining lease receivables of net investment in leases (including residual value guarantees) range up to 23 years at March 31, 2026. Remaining lease receivables of the operating lease contracts range up to 55 years at March 31, 2026. At March 31, 2026, the amounts due in each of the next five years and thereafter are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\nYears ending March 31,\n\n  \n\nNet investment in leases\n\n \n\n  \n\nOperating leases\n\n \n\n2027\n\n  \n¥\n520,199\n \n  \n¥\n429,844\n \n\n2028\n\n  \n \n345,808\n \n  \n \n272,626\n \n\n2029\n\n  \n \n232,063\n \n  \n \n185,794\n \n\n2030\n\n  \n \n137,127\n \n  \n \n115,082\n \n\n2031\n\n  \n \n75,980\n \n  \n \n66,122\n \n\nThereafter\n\n  \n \n59,430\n \n  \n \n130,839\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal lease payments\n\n  \n \n1,370,607\n \n  \n¥\n1,200,307\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nLess imputed interest\n\n  \n \n(160,977)\n \n  \n\n  \n\n \n\n \n\n \n  \n\nTotal lease receivables\n\n  \n¥\n1,209,630\n \n  \n\n  \n\n \n\n \n\n \n  \n\n(2) Lessee\n\nThe 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.\n\nSome 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 determining 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 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.\n\n \n\nF-54\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\nThe component of lease expense for fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\nMillions of yen\n\n \n\n \n\nMillions of yen\n\n \n\n \n\n  \n\nYear ended\nMarch 31, 2024\n\n \n\n \n\nYear ended\nMarch 31, 2025\n\n \n\n \n\nYear ended\nMarch 31, 2026\n\n \n\nFinance lease cost\n\n  \n\n \n\n \n\nDepreciation expenses of\n\nright-of-use\n\nassets\n\n  \n¥\n580\n \n \n¥\n574\n \n \n¥\n406\n \n\nInterest expenses of lease liabilities\n\n  \n \n84\n \n \n \n67\n \n \n \n101\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n664\n \n \n \n641\n \n \n \n507\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOperating lease cost\n\n  \n \n53,405\n \n \n \n53,013\n \n \n \n56,020\n \n\nShort-term lease cost\n\n  \n \n3,048\n \n \n \n2,997\n \n \n \n2,543\n \n\nVariable lease cost\n\n  \n \n2,721\n \n \n \n4,339\n \n \n \n6,963\n \n\nSublease income\n\n  \n \n(9,512\n) \n \n \n(9,971\n) \n \n \n(21,019\n)\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n 50,326\n \n \n¥\n 51,019\n \n \n¥\n45,014\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nThe\nCompany\nand its subsidiaries recorded net gains on sale and leaseback transactions of ¥2,661 million for fiscal 2024.\n\nSupplemental cash flow information related to leases for fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nYear Ended March 31, 2024\n\n \n\n \n\n  \n\n Finance leases \n\n \n\n \n\n Operating leases \n\n \n\nCash paid for amounts included in the measurements of lease liabilities:\n\n  \n\n \n\nCash flows from operating activities\n\n  \n¥\n84\n \n \n¥\n52,729\n \n\nCash flows from financing activities\n\n  \n \n664\n \n \n \n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRight-of-use\n\nassets obtained in exchange for lease liabilities:\n\n  \n¥\n    1,481\n    \n \n¥\n  27,427\n   \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nYear Ended March 31, 2025\n\n \n\n \n\n  \n\n Finance leases \n\n \n\n \n\n Operating leases \n\n \n\nCash paid for amounts included in the measurements of lease liabilities:\n\n  \n\n \n\nCash flows from operating activities\n\n  \n¥\n67\n \n \n¥\n52,277\n \n\nCash flows from financing activities\n\n  \n \n725\n \n \n \n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRight-of-use\n\nassets obtained in exchange for lease liabilities:\n\n  \n¥\n     407\n    \n \n¥\n  54,161\n   \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nF-55\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nYear Ended March 31, 2026\n\n \n\n \n  \n\nFinance leases\n\n \n \n\nOperating leases\n\n \n\nCash paid for amounts included in the measurements of lease liabilities:\n\n  \n\n \n\nCash flows from operating activities\n\n  \n¥\n101\n \n \n¥\n53,584\n \n\nCash flows from financing activities\n\n  \n \n481\n \n \n \n0\n \n\nRight-of-use\n\nassets obtained in exchange for lease liabilities:\n\n  \n¥\n454\n \n \n¥\n49,111\n \n\nSupplemental balance sheet information related to lessee leases at March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen,\n\nexcept lease term and discount rate\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\n Finance leases \n\n \n \n\n Operating leases \n\n \n\nInvestment in Operating Leases\n\n  \n¥\n4,634\n \n \n¥\n68,883\n \n\nProperty under Facility Operations\n\n  \n \n1,863\n \n \n \n99,201\n \n\nOffice Facilities\n\n  \n \n537\n \n \n \n81,396\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\nright-of-use\n\nassets\n\n  \n \n7,034\n \n \n \n249,480\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther Liabilities\n\n  \n \n7,479\n \n \n \n251,860\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\nlease liabilities\n\n  \n¥\n   7,479\n \n \n¥\n 251,860\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nWeighted average remaining lease term\n\n  \n \n35 years\n \n \n \n12 years\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nWeighted average discount rate\n\n  \n \n2.0\n% \n \n \n1.7\n% \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n\n  \n\nMillions of yen,\n\nexcept lease term and discount rate\n\n \n\n \n\n  \n\nMarch 31, 2026\n\n \n\n \n\n  \n\nFinance leases\n\n \n\n \n\nOperating leases\n\n \n\nInvestment in Operating Leases\n\n  \n¥\n87\n \n \n¥\n68,943\n \n\nProperty under Facility Operations\n\n  \n \n2,376\n \n \n \n105,299\n \n\nOffice Facilities\n\n  \n \n617\n \n \n \n91,192\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\nright-of-use\n\nassets\n\n  \n \n3,080\n \n \n \n265,434\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther Liabilities\n\n  \n \n3,400\n \n \n \n268,286\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\nlease liabilities\n\n  \n¥\n3,400\n \n \n¥\n268,286\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nWeighted average remaining lease term\n\n  \n \n\n11 years\n\n \n \n \n11 years\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nWeighted average discount rate\n\n  \n \n2.0\n% \n \n \n2.1\n% \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nF-56\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAt March 31, 2026, the amounts of lease liabilities related to lessee leases due in each of the next five years and thereafter are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\nYears ending March 31,\n\n  \n\n Finance leases \n\n \n\n \n\n Operating leases \n\n \n\n2027\n\n  \n¥\n735\n \n \n¥\n56,037\n \n\n2028\n\n  \n \n641\n \n \n \n40,032\n \n\n2029\n\n  \n \n565\n \n \n \n32,508\n \n\n2030\n\n  \n \n339\n \n \n \n28,052\n \n\n2031\n\n  \n \n260\n \n \n \n24,266\n \n\nThereafter\n\n  \n \n1,384\n \n \n \n123,813\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal lease payments\n\n  \n \n3,924\n \n \n \n304,708\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess imputed interest\n\n  \n \n(524\n) \n \n \n(36,422\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal lease liabilities\n\n  \n¥\n3,400\n \n \n¥\n268,286\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n7. Installment Loans\n\nThe composition of installment loans by domicile and type of borrower at March 31, 2025 and 2026 is as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nBorrowers in Japan:\n\n  \n\n  \n\nConsumer—\n\n  \n\n  \n\nReal estate loans\n\n  \n¥\n1,901,794\n \n  \n¥\n1,989,371\n \n\nCard loans\n\n  \n \n67,874\n \n  \n \n64,600\n \n\nOther\n\n  \n \n7,259\n \n  \n \n5,631\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n \n1,976,927\n \n  \n \n2,059,602\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCorporate—\n\n  \n\n  \n\nReal estate companies\n\n  \n \n415,666\n \n  \n \n461,006\n \n\nNon-recourse\nloans\n\n  \n \n301,477\n \n  \n \n343,121\n \n\nCommercial, industrial and other companies\n\n  \n \n233,270\n \n  \n \n229,097\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n \n950,413\n \n  \n \n1,033,224\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBorrowers in overseas:\n\n  \n\n  \n\nConsumer—\n\n  \n\n  \n\nReal estate loans\n\n  \n \n55,022\n \n  \n \n38,122\n \n\nOther\n\n  \n \n39,172\n \n  \n \n39,302\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n \n94,194\n \n  \n \n77,424\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCorporate—\n\n  \n\n  \n\nReal estate companies*1\n\n  \n \n228,793\n \n  \n \n216,272\n \n\nNon-recourse\nloans\n\n  \n \n86,724\n \n  \n \n200,308\n \n\nCommercial, industrial and other companies\n\n  \n \n591,103\n \n  \n \n549,995\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n \n906,620\n \n  \n \n966,575\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nEquity method investees\n\n  \n \n131,476\n \n  \n \n20,543\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nPurchased loans*2\n\n  \n \n21,389\n \n  \n \n16,214\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n4,081,019\n \n  \n¥\n4,173,582\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nF-57\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n*1\n\nIncludes the outstanding balance of loans that were previously sold with a repurchase option and are recorded as assets for accounting purposes in accordance with ASC 860 (“Transfers and Servicing”.)\n\n*2\n\nPurchased 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.\n\nGenerally, installment loans are made under agreements that require the borrower to provide collateral or guarantors.\n\n \n\nAt March 31, 2026, the contractual maturities of installment loans (except purchased loans) for each of the next five years and thereafter are as follows:\n\nYears ending March 31,\n\n  \n\nMillions of yen\n\n \n\n2027\n\n  \n¥\n646,672\n \n\n2028\n\n  \n \n418,347\n \n\n2029\n\n  \n \n377,563\n \n\n2030\n\n  \n \n268,642\n \n\n2031\n\n  \n \n274,552\n \n\nThereafter\n\n  \n \n2,171,592\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n4,157,368\n \n\n  \n\n \n\n \n\n \n\nRevenues from installment loans which are included in finance revenues in the consolidated statements of income are ¥205,734 million, ¥188,294 million and ¥211,379 million for fiscal 2024, 2025 and 2026, respectively.\n\nCertain 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 market value determined on an individual basis, except loans held for sale for which the fair value option was elected. A subsidiary elected the fair value option on its 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, 2025 and 2026 were ¥111,527 million and ¥105,720 million, respectively. There were ¥97,694 million and ¥78,020 million of loans held for sale as of March 31, 2025 and 2026, respectively, measured at fair value by electing the fair value option.\n\nPurchased loans acquired by the Company and its subsidiaries are generally 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 and characterized by extended period of\nnon-performance\nby the borrower, and it is difficult to reliably estimate the amount, timing, or nature of collections. Because such loans are commonly collateralized by real estate, the Company and its subsidiaries may pursue various approaches to maximizing the return from the collateral, including arrangement of borrower’s negotiated transaction of such collateral before foreclosure, the renovation, refurbishment or the sale of such loans to third parties. Accordingly, 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,\n\ntiming, or\n\n \n\nF-58\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nnature\n \n\nof collections. Accordingly, the Company and its subsidiaries use the cost recovery method of income recognition for such purchased loans. The total carrying amounts of these purchased loans were ¥\n21,389\n million and ¥\n16,214\n million as of March \n31\n,\n2025\nand\n2026\n, respectively, and the fair value at the acquisition date of purchased loans acquired during fiscal\n2025\nand\n2026\nwere ¥\n5,264\n million and ¥\n10,818\n million, respectively.\n\n \n\n \n\n8. Credit Quality of Financial Assets and the Allowance for Credit Losses\n\nThe Company and its subsidiaries provide the following information disaggregated by portfolio segment and class of financial assets.\n\n \n\n \n•\n \n\nAllowance for credit losses\n\n \n\n \n•\n \n\nCredit quality of financial assets\n\nCredit quality indicators\n\nPast-due\nfinancing receivables\n\nNon-accrual\n\n \n\n \n•\n \n\nInformation about modifications of financing receivables made to debtors experiencing financial difficulty\n\nA 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, net investment in leases and other financial assets measured at amortized cost. Classes of financial assets 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 financial assets. Classes of financial assets 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.\n\n \n\nF-5\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table provides information about the allowance for credit losses for installment loans, net investment in leases and other financial assets measured at amortized cost for fiscal 2024, 2025 and 2026:\n\n \n\n \n\n \n\nFiscal Year ended March 31, 2024\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nBeginning\nbalance\n\n \n\n \n\nProvision\n(Reversal)*3\n\n \n\n \n\nAllowance for\ncredit losses\non acquired\n\nfinancial\nassets at\nacquisition\n\n \n\n \n\nCharge-\noffs*4\n\n \n\n \n\nRecoveries\n\n \n\n \n\nOther*5\n\n \n\n \n\nEnding\nbalance\n\n \n\n \n\nCollective\n(pool)\nassessment\n\n \n\n \n\nIndividual\nassessment\n\n \n\nAllowance for credit losses:\n\n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n\nInstallment loans to consumer borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n¥\n4,092\n \n \n¥\n(712\n) \n \n¥\n0\n \n \n¥\n(218\n) \n \n¥\n151\n \n \n¥\n(110\n) \n \n¥\n3,203\n \n \n¥\n2,893\n \n \n¥\n310\n \n\nOverseas\n\n \n \n446\n \n \n \n94\n \n \n \n0\n \n \n \n(6\n) \n \n \n1\n \n \n \n46\n \n \n \n581\n \n \n \n526\n \n \n \n55\n \n\nCard loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n9,022\n \n \n \n101\n \n \n \n0\n \n \n \n(918\n) \n \n \n10\n \n \n \n(8,203\n) \n \n \n12\n \n \n \n12\n \n \n \n0\n \n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n7,759\n \n \n \n5,313\n \n \n \n0\n \n \n \n(3,856\n) \n \n \n7\n \n \n \n(9,132\n) \n \n \n91\n \n \n \n6\n \n \n \n85\n \n\nOverseas\n\n \n \n1,889\n \n \n \n3,166\n \n \n \n0\n \n \n \n(2,736\n) \n \n \n476\n \n \n \n265\n \n \n \n3,060\n \n \n \n1,762\n \n \n \n1,298\n \n\nInstallment loans to corporate borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n253\n \n \n \n176\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n429\n \n \n \n429\n \n \n \n0\n \n\nThe Americas\n\n \n \n1,494\n \n \n \n74\n \n \n \n0\n \n \n \n(55\n) \n \n \n0\n \n \n \n205\n \n \n \n1,718\n \n \n \n660\n \n \n \n1,058\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate companies\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n777\n \n \n \n176\n \n \n \n0\n \n \n \n(4\n) \n \n \n26\n \n \n \n0\n \n \n \n975\n \n \n \n889\n \n \n \n86\n \n\nOverseas\n\n \n \n1,007\n \n \n \n430\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n112\n \n \n \n1,549\n \n \n \n1,045\n \n \n \n504\n \n\nCommercial, industrial and other companies\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n1,152\n \n \n \n(44\n) \n \n \n0\n \n \n \n(281\n) \n \n \n9\n \n \n \n21\n \n \n \n857\n \n \n \n722\n \n \n \n135\n \n\nOverseas\n\n \n \n19,132\n \n \n \n8,702\n \n \n \n0\n \n \n \n(4,762\n) \n \n \n176\n \n \n \n2,576\n \n \n \n25,824\n \n \n \n16,061\n \n \n \n9,763\n \n\nLoans to Equity method investees\n\n \n \n650\n \n \n \n99\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n129\n \n \n \n878\n \n \n \n422\n \n \n \n456\n \n\nPurchased loans *1\n\n \n \n1,148\n \n \n \n13\n \n \n \n47,676\n \n \n \n(47,722\n) \n \n \n2\n \n \n \n16\n \n \n \n1,133\n \n \n \n548\n \n \n \n585\n \n\nNet investment in leases:\n\n \n \n15,719\n \n \n \n3,064\n \n \n \n0\n \n \n \n(2,635\n) \n \n \n26\n \n \n \n606\n \n \n \n16,780\n \n \n \n10,866\n \n \n \n5,914\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSubtotal\n\n \n \n64,540\n \n \n \n20,652\n \n \n \n47,676\n \n \n \n(63,193\n) \n \n \n884\n \n \n \n(13,469\n) \n \n \n57,090\n \n \n \n36,841\n \n \n \n20,249\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther financial assets measured at amortized cost *2\n\n \n \n833\n \n \n \n311\n \n \n \n0\n \n \n \n(280\n) \n \n \n9\n \n \n \n147\n \n \n \n1,020\n \n \n \n321\n \n \n \n699\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n65,373\n \n \n¥\n20,963\n \n \n¥\n47,676\n \n \n¥\n(63,473\n) \n \n¥\n893\n \n \n¥\n(13,322\n) \n \n¥\n58,110\n \n \n¥\n37,162\n \n \n¥\n20,948\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n60\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nFiscal Year ended March 31, 2025\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nBeginning\nbalance\n\n \n\n \n\nProvision\n(Reversal)*3\n\n \n\n \n\nAllowance for\ncredit losses\non acquired\nfinancial\nassets at\nacquisition\n\n \n\n \n\nCharge-\noffs*4\n\n \n\n \n\nRecoveries\n\n \n\n \n\nOther*5\n\n \n\n \n\nEnding\nbalance\n\n \n\n \n\nCollective\n(pool)\nassessment\n\n \n\n \n\nIndividual\nassessment\n\n \n\nAllowance for credit losses:\n\n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n\nInstallment loans to consumer borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n¥\n3,203\n \n \n¥\n(317\n) \n \n¥\n0\n \n \n¥\n(62\n) \n \n¥\n66\n \n \n¥\n1\n \n \n¥\n2,891\n \n \n¥\n2,609\n \n \n¥\n282\n \n\nOverseas\n\n \n \n581\n \n \n \n1,202\n \n \n \n0\n \n \n \n0\n \n \n \n1\n \n \n \n(105\n) \n \n \n1,679\n \n \n \n505\n \n \n \n1,174\n \n\nCard loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n12\n \n \n \n13\n \n \n \n0\n \n \n \n0\n \n \n \n11\n \n \n \n0\n \n \n \n36\n \n \n \n36\n \n \n \n0\n \n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n91\n \n \n \n(8\n) \n \n \n0\n \n \n \n0\n \n \n \n7\n \n \n \n0\n \n \n \n90\n \n \n \n6\n \n \n \n84\n \n\nOverseas\n\n \n \n3,060\n \n \n \n2,996\n \n \n \n0\n \n \n \n(3,237\n) \n \n \n453\n \n \n \n(224\n) \n \n \n3,048\n \n \n \n1,355\n \n \n \n1,693\n \n\nInstallment loans to corporate borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n429\n \n \n \n33\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n462\n \n \n \n462\n \n \n \n0\n \n\nThe Americas\n\n \n \n1,718\n \n \n \n1,066\n \n \n \n0\n \n \n \n(150\n) \n \n \n0\n \n \n \n(41\n) \n \n \n2,593\n \n \n \n1,548\n \n \n \n1,045\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate companies\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n975\n \n \n \n(14\n) \n \n \n0\n \n \n \n(78\n) \n \n \n26\n \n \n \n(1\n) \n \n \n908\n \n \n \n877\n \n \n \n31\n \n\nOverseas\n\n \n \n1,549\n \n \n \n682\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n(185\n) \n \n \n2,046\n \n \n \n764\n \n \n \n1,282\n \n\nCommercial, industrial and other companies\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n857\n \n \n \n359\n \n \n \n0\n \n \n \n(146\n) \n \n \n7\n \n \n \n1\n \n \n \n1,078\n \n \n \n586\n \n \n \n492\n \n\nOverseas\n\n \n \n25,824\n \n \n \n1,094\n \n \n \n0\n \n \n \n(4,048\n) \n \n \n34\n \n \n \n(2,841\n) \n \n \n20,063\n \n \n \n11,919\n \n \n \n8,144\n \n\nLoans to Equity method investees\n\n \n \n878\n \n \n \n954\n \n \n \n0\n \n \n \n(255\n) \n \n \n0\n \n \n \n(65\n) \n \n \n1,512\n \n \n \n167\n \n \n \n1,345\n \n\nPurchased loans *1\n\n \n \n1,133\n \n \n \n80\n \n \n \n7,507\n \n \n \n(7,547\n) \n \n \n2\n \n \n \n167\n \n \n \n1,342\n \n \n \n521\n \n \n \n821\n \n\nNet investment in leases:\n\n \n \n16,780\n \n \n \n4,934\n \n \n \n0\n \n \n \n(3,505\n) \n \n \n91\n \n \n \n(178\n) \n \n \n18,122\n \n \n \n11,236\n \n \n \n6,886\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSubtotal\n\n \n \n57,090\n \n \n \n13,074\n \n \n \n7,507\n \n \n \n(19,028\n) \n \n \n698\n \n \n \n(3,471\n) \n \n \n55,870\n \n \n \n32,591\n \n \n \n23,279\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther financial assets measured at amortized cost *2\n\n \n \n1,020\n \n \n \n179\n \n \n \n0\n \n \n \n(276\n) \n \n \n14\n \n \n \n(38\n) \n \n \n899\n \n \n \n299\n \n \n \n600\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n58,110\n \n \n¥\n13,253\n \n \n¥\n7,507\n \n \n¥\n(19,304\n) \n \n¥\n712\n \n \n¥\n(3,509\n) \n \n¥\n56,769\n \n \n¥\n32,890\n \n \n¥\n23,879\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n61\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nFiscal Year ended March 31, 2026\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nBeginning\nbalance\n\n \n\n \n\nProvision\n(Reversal)*3\n\n \n\n \n\nAllowance for\ncredit losses\non acquired\nfinancial\nassets at\nacquisition\n\n \n\n \n\nCharge-\noffs*4\n\n \n\n \n\nRecoveries\n\n \n\n \n\nOther*5\n\n \n\n \n\nEnding\nbalance\n\n \n\n \n\nCollective\n(pool)\nassessment\n\n \n\n \n\nIndividual\nassessment\n\n \n\nAllowance for credit losses:\n\n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n \n \n      \n \n\nInstallment loans to consumer borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n¥\n2,891\n \n \n¥\n180\n \n \n¥\n0\n \n \n¥\n(130\n) \n \n¥\n36\n \n \n¥\n(153\n) \n \n¥\n2,824\n \n \n¥\n2,615\n \n \n¥\n209\n \n\nOverseas\n\n \n \n1,679\n \n \n \n262\n \n \n \n0\n \n \n \n(202\n)\n \n \n0\n \n \n \n80\n \n \n \n1,819\n \n \n \n367\n \n \n \n1,452\n \n\nCard loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n36\n \n \n \n(7\n) \n \n \n0\n \n \n \n0\n \n \n \n6\n \n \n \n0\n \n \n \n35\n \n \n \n35\n \n \n \n0\n \n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n90\n \n \n \n(5\n)\n \n \n0\n \n \n \n0\n \n \n \n2\n \n \n \n(84\n)\n \n \n3\n \n \n \n3\n \n \n \n0\n \n\nOverseas\n\n \n \n3,048\n \n \n \n2,203\n \n \n \n0\n \n \n \n(3,720\n)\n \n \n337\n \n \n \n224\n \n \n \n2,092\n \n \n \n1,449\n \n \n \n643\n \n\nInstallment loans to corporate borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n462\n \n \n \n126\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n(6\n)\n \n \n582\n \n \n \n582\n \n \n \n0\n \n\nOverseas\n\n \n \n2,593\n \n \n \n2,969\n \n \n \n0\n \n \n \n(1,264\n)\n \n \n0\n \n \n \n1,337\n \n \n \n5,635\n \n \n \n2,224\n \n \n \n3,411\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate companies\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n908\n \n \n \n192\n \n \n \n0\n \n \n \n(18\n)\n \n \n25\n \n \n \n(84\n)\n \n \n1,023\n \n \n \n1,021\n \n \n \n2\n \n\nOverseas\n\n \n \n2,046\n \n \n \n320\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n(876\n)\n \n \n1,490\n \n \n \n519\n \n \n \n971\n \n\nCommercial, industrial and other companies\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n1,078\n \n \n \n167\n \n \n \n0\n \n \n \n(24\n)\n \n \n43\n \n \n \n(75\n)\n \n \n1,189\n \n \n \n691\n \n \n \n498\n \n\nOverseas\n\n \n \n20,063\n \n \n \n11,799\n \n \n \n0\n \n \n \n(3,067\n)\n \n \n197\n \n \n \n1,633\n \n \n \n30,625\n \n \n \n11,946\n \n \n \n18,679\n \n\nLoans to Equity method investees\n\n \n \n1,512\n \n \n \n(169\n)\n \n \n0\n \n \n \n(1,439\n)\n \n \n2\n \n \n \n94\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nPurchased loans *1\n\n \n \n1,342\n \n \n \n322\n \n \n \n3,633\n \n \n \n(3,763\n)\n \n \n11\n \n \n \n5,943\n \n \n \n7,488\n \n \n \n133\n \n \n \n7,355\n \n\nNet investment in leases:\n\n \n \n18,122\n \n \n \n4,933\n \n \n \n0\n \n \n \n(4,938\n)\n \n \n365\n \n \n \n1,425\n \n \n \n19,907\n \n \n \n13,218\n \n \n \n6,689\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSubtotal\n\n \n \n55,870\n \n \n \n23,292\n \n \n \n3,633\n \n \n \n(18,565\n)\n \n \n1,024\n \n \n \n9,458\n \n \n \n74,712\n \n \n \n34,803\n \n \n \n39,909\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther financial assets measured at amortized cost *2\n\n \n \n899\n \n \n \n1,482\n \n \n \n4,491\n \n \n \n(1,336\n)\n \n \n2\n \n \n \n(56\n)\n \n \n5,482\n \n \n \n659\n \n \n \n4,823\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n56,769\n \n \n¥\n24,774\n \n \n¥\n8,124\n \n \n¥\n(19,901\n)\n \n¥\n1,026\n \n \n¥\n9,402\n \n \n¥\n80,194\n \n \n¥\n35,462\n \n \n¥\n44,732\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNotes: 1\n \nLoans held for sale and policy loan receivables of an insurance entity are not in the scope of allowance for credit losses.\n\n    2\n \nSince April 1, 2025, the geographic classification of\nNon-recourse\nloans within Installment loans to corporate borrowers has been changed from “The Americas” to “Overseas,” reflecting the occurrence of transactions outside The Americas, although the principal assets remain located in The Americas.\n\n \n\nF-6\n2\n\n[Table of Contents](#toc)\n\nNOTES TO\nCONSOLIDATED\nFINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n*1\n\nPurchased 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.\n\n*2\n\nThe allowance for other financial assets measured at amortized cost includes the allowance for credit losses on financing receivables, such as accounts receivable, which include purchased trade receivables. Other financial assets measured at amortized cost are mainly “Trade notes, accounts and other receivables” on the consolidated balance sheets.\n\n*3\n\n“Provision for credit losses” in the consolidated statements of income amounted to provisions of ¥20,968 million, ¥18,723 million and ¥34,017 million for fiscal 2024, 2025 and 2026 respectively. The reconciliation between the above table and the amounts reported on the consolidated statements of income in fiscal\n2024, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nFiscal Year\nended March 31,\n2024\n\n \n\n \n\nFiscal Year\nended March 31,\n2025\n\n \n\n  \n\nFiscal Year\nended March 31,\n2026\n\n \n\n \n\n  \n\nProvision for\ncredit losses\n\n \n\n \n\nProvision for\ncredit losses\n\n \n\n  \n\nProvision for\ncredit losses\n\n \n\nNet investment in leases\n\n  \n¥\n3,064\n \n \n¥\n4,934\n \n  \n¥\n4,933\n \n\nInstallment loans\n\n  \n \n17,588\n \n \n \n8,140\n \n  \n \n18,359\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSubtotal in the above table\n\n  \n \n20,652\n \n \n \n13,074\n \n  \n \n23,292\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nOther financial assets measured at amortized cost\n\n  \n \n311\n \n \n \n179\n \n  \n \n1,482\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal in the above table\n\n  \n \n20,963\n \n \n \n13,253\n \n  \n \n24,774\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nOff-balance\nsheet credit exposures *3(a)\n\n  \n \n(440\n) \n \n \n5,297\n \n  \n \n7,211\n \n\nAvailable-for-sale\n\ndebt securities *3(b)\n\n  \n \n445\n \n \n \n173\n \n  \n \n2,032\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nAmount reported on the consolidated financial statements\n\n  \n¥\n20,968\n \n \n¥\n18,723\n \n  \n¥\n34,017\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n*3(a)\n\nThe allowance for\noff-balance\nsheet credit exposure were ¥5,116 million, ¥9,766 million and ¥17,676 million as of March 31, 2024, 2025 and 2026, respectively, and the amounts are recorded in “Other liabilities” on the consolidated balance sheets. For further information, see Note 31 “Commitments, Guarantees and Contingent Liabilities.”\n\n \n*3(b)\n\nThe allowance for\n\navailable-for-sale\n\ndebt securities were ¥634 million ¥670 million and ¥3,505 million as of March 31, 2024, 2025 and 2026, respectively, and the amounts are recorded as a reduction in “Investments in securities” on the consolidated balance sheets. For further information, see Note 9 “Investment in Securities.”\n\n*4\n\nIncluded in Charge-offs of purchased loans were write-offs of purchased loans at the acquisition date of ¥\n47,676 million, ¥7,507 million and ¥3,633 million during fiscal 2024, 2025 and 2026.\n\n*5\n\n“Other” mainly includes foreign currency translation adjustments and increases or decreases in allowance due to consolidation or deconsolidation of subsidiaries.\n\n \n\nF-6\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and\nSubsidiaries\n\n \n\nThe following table provides information about purchased loans and about purchased trade receivables acquired in fiscal 2024, 2025 and 2026, for which it is probable at acquisition that collection of all contractually required payments is unlikely. Such receivables include those acquired in connection with the consolidation of subsidiaries:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nFiscal Year\nended March 31,\n2024\n\n \n\n  \n\nFiscal Year\nended March 31,\n2025\n\n \n\n  \n\nFiscal Year\nended March 31,\n2026\n\n \n\nPurchase price\n\n  \n¥\n12,271\n \n  \n¥\n5,264\n \n  \n¥\n18,162\n \n\nAllowance for credit losses at acquisition date\n\n  \n \n47,676\n \n  \n \n7,507\n \n  \n \n15,079\n \n\nDiscount or premium attributable to other factors\n\n  \n \n1,188\n \n  \n \n1,332\n \n  \n \n2,368\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nPar value\n\n  \n¥\n61,135\n \n  \n¥\n14,103\n \n  \n¥\n35,609\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nT\nhe Company and its subsidiaries estimate an allowance for credit losses for all credit losses expected to occur in future over the remaining life of financial assets, and recognize the allowance adequately based on management judgement. In developing the allowance for credit losses, the Company and its subsidiaries consider, among other things, the following factors in collective assessment and individual assessment by each portfolio:\n\n \n\n \n•\n \n\nbusiness characteristics and financial conditions of obligors;\n\n \n\n \n•\n \n\nprior\ncharge-off\nexperience;\n\n \n\n \n•\n \n\ncurrent delinquencies and delinquency trends;\n\n \n\n \n•\n \n\nvalue of underlying collateral and guarantees; and\n\n \n\n \n•\n \n\ncurrent economic and business conditions and expected outlook in future.\n\nThe Company and its subsidiaries manage credit risk using various indicators specific to the region, industry, and types of assets, in accordance with the group risk management policy. For credit transactions, the basic group policy is to obtain sufficient collateral and guarantees, and to diversify industries and borrowers, and the Company and its subsidiaries comprehensively evaluate and monitor the financial condition and cash flows of borrowers, underlying collateral and guarantees, and profitability. The Company and its subsidiaries also manage exposure to potentially high-risk markets by establishing appropriate credit limits through portfolio analysis.\n\nDue to the diversity of assets and risk indicators held by the Company and its subsidiaries, the Company and its subsidiaries monitor the credit quality indicators as performing and\nnon-performing\nassets as indicators that are common across all classes. The category of\nnon-performing\nassets 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\npast-due\n90 days or more, financing receivables modified to debtors experiencing financial difficulty, and performing assets include all other financing receivables. Regarding purchased loans, they are classified as\nnon-performing\nassets when it is probable that the acquisition cost of purchased loans cannot be collected, while all the other purchased loans are included in the category of performing assets.\n\nCertain subsidiaries, in the normal course of their business operations, sell mortgage loans to the Government National Mortgage Association (“Ginnie Mae” or “GNMA”) and the Federal National Mortgage Association (“Fannie Mae”) and retain the servicing rights. The GNMA and Fannie Mae programs under which\n\n \n\nF-64\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nthese loans are sold allow such subsidiaries, at their option and without prior authorization from GNMA or Fannie Mae, to repurchase individual delinquent loans that meet certain criteria for an amount equal to 100% of the remaining principal balance of the loan.\n\nUnder ASC 860 (“Transfers and Servicing”), once a subsidiary has the unconditional ability to repurchase a delinquent loan, the subsidiary is deemed to have regained effective control over the loan. Accordingly, the subsidiary is required to recognize the loan as an asset on the balance sheet and record a corresponding liability, regardless of whether the subsidiary intends to exercise the repurchase option.\n\nDuring the prior fiscal year and the current fiscal year, the subsidiaries did not exercise the option to repurchase any delinquent loans. The loans meeting the criteria for repurchase totaled ¥\n\n14,362\n\nmillion, ¥\n\n48,855\n\nmillion and ¥\n76,395\nmillion as of March 31, 2024, 2025 and 2026, respectively.\n\nThese loans are included in installment loans on the consolidated balance sheets, with a corresponding liability recorded in other liabilities.\n\n \n\nThe loans that have been recognized on the consolidated balance sheets as described above continue to be administered under the framework of the programs provided by GNMA and other government-related agencies. Credit losses associated with these loans are addressed through the guarantee and insurance mechanisms or loss sharing agreements applicable under such programs. The recognition of these loans as assets pursuant to accounting standards does not indicate that the subsidiaries bear any additional credit risk or risk of non-recovery associated with the loans. In addition, as of the end of the previous and current fiscal year, the subsidiaries have not made any decisions nor commenced any procedures to exercise the repurchase option with respect to delinquent loans. Accordingly, these loans are not included within non-performing loans.\n\nWhen certain performing financial assets mainly have similar risk characteristics to other financial assets, the performing financial assets are collectively evaluated as a pool. On the contrary, when financial assets do not have similar risk characteristics to other financial assets, the financial assets are evaluated individually.\n\nLoans to consumer borrowers\n\nLoans to consumer borrowers mainly consist of real estate loans and card loans.\n\nThe credit quality of real estate loans is affected by the cash flows derived from the property and its collateral value.\n\nThe credit quality of card loans is affected by the repayment ability of customers such as customer credit standing or payment history.\n\nThe Company and its subsidiaries use these factors to estimate the allowance for credit losses because they are reflected in the probability of default and loss given default in each portfolio.\n\nLoans to corporate borrowers\n\nLoans to corporate borrowers are classified into\nnon-recourse\nloans and loans other than\nnon-recourse\nloans.\n\nThe credit quality of\nnon-recourse\nloans for which cash flows from real estate are the source of repayment depends mainly on the real estate collateral value.\n\nLoans other than\nnon-recourse\nloans are classified into either real estate companies or commercial, industrial and other companies, each of which are further divided into Japan and overseas.\n\n \n\nF-65\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe credit quality of real estate companies is affected by mainly Japanese and Americas real estate markets and trends.\n\nThe credit quality of commercial, industrial and other companies, which consist of various industries, is affected mainly by broader financial and economic conditions and trends in Japan, the Americas and Asian countries.\n\nThe allowance for credit losses for loans to corporate borrowers is estimated by considering, among others, debtors’ situation, as well as economic conditions and trends in its industries, the value of underlying collateral and guarantees, and probability of default and loss given default.\n\n \n\nLoans to equity method investees\n\nEquity method investees are diversified in various industries and countries. The credit quality of loans to equity method investees is affected mainly by broader financial and economic conditions and trends in Japan, the Americas and Asian countries.\n\nThe allowance for credit losses for loans to equity method investees is estimated by considering, among others, debtors’ situation, as well as economic conditions and trends in its industries, the value of underlying collateral and guarantees, and probability of default and loss given default.\n\nNet investment in leases\n\nNet investment in leases consists of leases of various equipment types, including office equipment, industrial machinery, transportation equipment and real estate properties. The allowance for credit losses for net investment in leases is estimated based on the value of the underlying leased assets, debtors’ situation, economic conditions and trends in its industries, and probability of default and loss given default.\n\nIn common with portfolio segments, the forecasted future economic indicators correlated with the prior\ncharge-off\nexperience are reflected to the estimate of the allowance for credit losses. Economic indicators correlated with prior\ncharge-off\nexperience are determined over the reasonable and supportable forecasted period. Economic indicators include GDP growth rates, consumer price indices, unemployment rates, and government bond interest rates. It also considers forward-looking scenarios of how the selected economic indicators will change in the future. The Company and its subsidiaries use the latest economic forecasts available from the economic reports published by governments and central banks, as well as from third-party information providers as economic indicators.\n\nOn the other hand, for periods beyond which the Company and its subsidiaries are able to make or obtain reasonable and supportable forecasts of future economic indicators of the entire life of the financial asset, expected credit losses are estimated for the remaining life mainly using an appropriate reversion approach, mainly immediate reversion to historical credit loss information.\n\nThere have been no significant changes during fiscal 2026 to methodologies and economic indicators used to estimate the allowance for credit losses.\n\nWhen\nnon-performing\nfinancial assets with deteriorated credit quality have similar risk characteristics to other financial assets, the allowance for credit losses is collectively evaluated based on mainly loss given default. On the other hand, if the\nnon-performing\nfinancial assets do not have similar risk characteristics to other financial assets, the allowance for credit losses is individually evaluated.\n\n \n\nF-66\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nIn the individual assessment the allowance for credit losses is estimated individually based on the present value of expected future cash flows, the observable market price or the fair value of the collateral securing the financing receivables if the financing receivables are collateral-dependent.\n\nThe collateral-dependent financing receivables are defined as the finance receivables, which a debtor would be in financial difficulty and the collection significantly depend on the collateral. These financing receivables are mainly\nnon-recourse\nloans and purchased loans for which cash flows from underlying real estate is the source of repayment.\n\nFor\nnon-recourse\nloans, their collection depends on the real estate collateral value, which may decline as a result of a decrease in liquidity of the real estate market, a rise in vacancy rate of rental properties, a fall in rents and other factors.\n\n \n\n \n\nFor purchased loans, their collection may decrease due to a decline in the real estate collateral value and debtors’ creditworthiness. Thus, the changes in these risks affect the amount of the allowance for credit losses.\n\nIn 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.\n\nThe following table provides information about the origination years of financial assets as of March 31, 2025 and 2026 and the gross write-offs, corresponding to each class of financial assets by origination year, recorded during fiscal 2025 and 2026. Card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year are excluded from the table.\n\n \n\n \n\n \n\n \n\n \n\nMarch 31, 2025\n\n \n\n \n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\n \n\n \n\nOrigination year (years ended March 31)\n\n \n\n \n\n \n\n \n\nClass\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit Quality\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2022\n\n \n\n \n\n2021\n\n \n\n \n\nPrior\n\n \n\n \n\nTotal\n\n \n\nConsumer borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n¥\n  358,952\n \n \n¥\n  154,694\n \n \n¥\n159,847\n \n \n¥\n143,281\n \n \n¥\n227,594\n \n \n¥\n936,220\n \n \n¥\n1,980,588\n \n\n \n\nNon-Performing\n\n \n \n586\n \n \n \n1,421\n \n \n \n3,101\n \n \n \n2,086\n \n \n \n668\n \n \n \n11,576\n \n \n¥\n19,438\n \n\n \nGross write-offs\n \n \n206\n \n \n \n1,773\n \n \n \n1,136\n \n \n \n106\n \n \n \n8\n \n \n \n70\n \n \n¥\n3,299\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nReal estate loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n339,308\n \n \n \n142,337\n \n \n \n152,451\n \n \n \n142,224\n \n \n \n227,484\n \n \n \n935,996\n \n \n¥\n1,939,800\n \n\n \n\nNon-Performing\n\n \n \n224\n \n \n \n472\n \n \n \n2,110\n \n \n \n2,057\n \n \n \n666\n \n \n \n11,487\n \n \n¥\n17,016\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n62\n \n \n¥\n62\n \n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n19,644\n \n \n \n12,357\n \n \n \n7,396\n \n \n \n1,057\n \n \n \n110\n \n \n \n224\n \n \n¥\n40,788\n \n\n \n\nNon-Performing\n\n \n \n362\n \n \n \n949\n \n \n \n991\n \n \n \n29\n \n \n \n2\n \n \n \n89\n \n \n¥\n2,422\n \n\n \nGross write-offs\n \n \n206\n \n \n \n1,773\n \n \n \n1,136\n \n \n \n106\n \n \n \n8\n \n \n \n8\n \n \n¥\n3,237\n \n\nCorporate borrowers:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n865,495\n \n \n \n246,134\n \n \n \n133,623\n \n \n \n154,928\n \n \n \n42,744\n \n \n \n175,757\n \n \n¥\n1,618,681\n \n\n \n\nNon-Performing\n\n \n \n2,389\n \n \n \n8,970\n \n \n \n4,353\n \n \n \n33,020\n \n \n \n7,593\n \n \n \n14,275\n \n \n¥\n70,600\n \n\n \nGross write-offs\n \n \n65\n \n \n \n181\n \n \n \n73\n \n \n \n2,485\n \n \n \n24\n \n \n \n1,594\n \n \n¥\n4,422\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-67\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\n \n\n \n\nMarch 31, 2025\n\n \n\n \n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\n \n\n \n\nOrigination year (years ended March 31)\n\n \n\n \n\n \n\n \n\nClass\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit Quality\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2022\n\n \n\n \n\n2021\n\n \n\n \n\nPrior\n\n \n\n \n\nTotal\n\n \n\nNon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n225,394\n \n \n \n52,292\n \n \n \n10,487\n \n \n \n6,932\n \n \n \n0\n \n \n \n6,372\n \n \n¥\n301,477\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n¥\n0\n \n\nThe Americas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n44,762\n \n \n \n20,079\n \n \n \n7,540\n \n \n \n886\n \n \n \n135\n \n \n \n9,491\n \n \n¥\n82,893\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n0\n \n \n \n67\n \n \n \n0\n \n \n \n0\n \n \n \n3,764\n \n \n¥\n3,831\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n150\n \n \n¥\n150\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate companies in Japan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n  205,004\n \n \n \n  67,092\n \n \n \n  33,558\n \n \n \n  23,295\n \n \n \n  19,072\n \n \n \n  67,088\n \n \n¥\n  415,109\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n8\n \n \n \n549\n \n \n¥\n557\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n78\n \n \n¥\n78\n \n\nReal estate companies in overseas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n57,678\n \n \n \n2,458\n \n \n \n8,833\n \n \n \n2,828\n \n \n \n504\n \n \n \n6,469\n \n \n¥\n78,770\n \n\n \n\nNon-Performing\n\n \n \n104\n \n \n \n680\n \n \n \n1,283\n \n \n \n1,188\n \n \n \n0\n \n \n \n162\n \n \n¥\n3,417\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n¥\n0\n \n\nCommercial, industrial and other companies in Japan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n131,439\n \n \n \n38,390\n \n \n \n20,382\n \n \n \n10,761\n \n \n \n6,412\n \n \n \n17,740\n \n \n¥\n225,124\n \n\n \n\nNon-Performing\n\n \n \n415\n \n \n \n58\n \n \n \n130\n \n \n \n11\n \n \n \n76\n \n \n \n86\n \n \n¥\n776\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n6\n \n \n \n140\n \n \n¥\n146\n \n\nCommercial, industrial and other companies in overseas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n  201,218\n \n \n \n  65,823\n \n \n \n  52,823\n \n \n \n  110,226\n \n \n \n  16,621\n \n \n \n  68,597\n \n \n¥\n  515,308\n \n\n \n\nNon-Performing\n\n \n \n1,870\n \n \n \n8,232\n \n \n \n2,873\n \n \n \n31,821\n \n \n \n7,509\n \n \n \n9,714\n \n \n¥\n62,019\n \n\n \nGross write-offs\n \n \n65\n \n \n \n181\n \n \n \n73\n \n \n \n2,485\n \n \n \n18\n \n \n \n1,226\n \n \n¥\n4,048\n \n\nLoans to Equity method investees:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n515\n \n \n \n111,724\n \n \n \n2,028\n \n \n \n0\n \n \n \n1,583\n \n \n \n14,858\n \n \n¥\n130,708\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n1,345\n \n \n¥\n1,345\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n55\n \n \n \n39\n \n \n \n0\n \n \n \n161\n \n \n¥\n255\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-6\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\n \n\n \n\nMarch 31, 2025\n\n \n\n \n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\n \n\n \n\nOrigination year (years ended March 31)\n\n \n\n \n\n \n\n \n\nClass\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit Quality\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2022\n\n \n\n \n\n2021\n\n \n\n \n\nPrior\n\n \n\n \n\nTotal\n\n \n\nPurchased loans:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n0\n \n \n \n52\n \n \n \n14\n \n \n \n476\n \n \n \n86\n \n \n \n19,497\n \n \n¥\n20,125\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n31\n \n \n \n0\n \n \n \n1,233\n \n \n¥\n1,264\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n57\n \n \n \n255\n \n \n \n7,235\n \n \n¥\n7,547\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet investment in leases:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n448,045\n \n \n \n316,681\n \n \n \n179,111\n \n \n \n89,639\n \n \n \n47,256\n \n \n \n64,828\n \n \n¥\n1,145,560\n \n\n \n\nNon-Performing\n\n \n \n2,381\n \n \n \n5,398\n \n \n \n4,893\n \n \n \n1,879\n \n \n \n836\n \n \n \n6,433\n \n \n¥\n21,820\n \n\n \nGross write-offs\n \n \n0\n \n \n \n456\n \n \n \n1,029\n \n \n \n538\n \n \n \n353\n \n \n \n1,129\n \n \n¥\n3,505\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nJapan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n199,069\n \n \n \n145,491\n \n \n \n101,351\n \n \n \n67,720\n \n \n \n40,680\n \n \n \n60,287\n \n \n¥\n614,598\n \n\n \n\nNon-Performing\n\n \n \n160\n \n \n \n628\n \n \n \n763\n \n \n \n808\n \n \n \n500\n \n \n \n1,506\n \n \n¥\n4,365\n \n\n \nGross write-offs\n \n \n0\n \n \n \n34\n \n \n \n135\n \n \n \n254\n \n \n \n256\n \n \n \n627\n \n \n¥\n1,306\n \n\nOverseas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n248,976\n \n \n \n171,190\n \n \n \n77,760\n \n \n \n21,919\n \n \n \n6,576\n \n \n \n4,541\n \n \n¥\n530,962\n \n\n \n\nNon-Performing\n\n \n \n2,221\n \n \n \n4,770\n \n \n \n4,130\n \n \n \n1,071\n \n \n \n336\n \n \n \n4,927\n \n \n¥\n17,455\n \n\n \nGross write-offs\n \n \n0\n \n \n \n422\n \n \n \n894\n \n \n \n284\n \n \n \n97\n \n \n \n502\n \n \n¥\n2,199\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n(excluding revolving repayment card loans)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n¥\n1,673,007\n \n \n¥\n829,285\n \n \n¥\n474,623\n \n \n¥\n388,324\n \n \n¥\n319,263\n \n \n¥\n1,211,160\n \n \n¥\n4,895,662\n \n\n \n\nNon-Performing\n\n \n \n5,356\n \n \n \n15,789\n \n \n \n12,347\n \n \n \n37,016\n \n \n \n9,097\n \n \n \n34,862\n \n \n¥\n114,467\n \n\n \nGross write-offs\n \n \n271\n \n \n \n2,410\n \n \n \n2,293\n \n \n \n3,225\n \n \n \n640\n \n \n \n10,189\n \n \n¥\n19,028\n \n\n \n\n \n\n \n\n \n\n \n\nMarch \n31, 2026\n\n \n\n \n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\n \n\n \n\nOrigination year (years ended March 31)\n\n \n\n \n\n \n\n \n\nClass\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit Quality\n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2022\n\n \n\n \n\nPrior\n\n \n\n \n\nTotal\n\n \n\nConsumer borrowers:\n\n \n \n        \n \n \n \n        \n \n \n \n        \n \n \n \n        \n \n \n \n         \n \n \n \n        \n \n \n \n        \n \n\n \nPerforming\n \n¥\n392,074\n \n \n¥\n290,820\n \n \n¥\n136,404\n \n \n¥\n137,394\n \n \n¥\n130,105\n \n \n¥\n958,672\n \n \n¥\n2,045,469\n \n\n \n\nNon-Performing\n\n \n \n451\n \n \n \n3,465\n \n \n \n2,184\n \n \n \n5,041\n \n \n \n1,405\n \n \n \n10,452\n \n \n¥\n22,998\n \n\n \nGross write-offs\n \n \n137\n \n \n \n1,046\n \n \n \n1,390\n \n \n \n1,156\n \n \n \n128\n \n \n \n195\n \n \n¥\n4,052\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nReal estate loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n371,586\n \n \n \n279,725\n \n \n \n130,960\n \n \n \n134,882\n \n \n \n129,906\n \n \n \n958,622\n \n \n¥\n2,005,681\n \n\n \n\nNon-Performing\n\n \n \n195\n \n \n \n3,063\n \n \n \n1,888\n \n \n \n4,817\n \n \n \n1,401\n \n \n \n10,448\n \n \n¥\n21,812\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n34\n \n \n \n105\n \n \n \n193\n \n \n¥\n332\n \n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n20,488\n \n \n \n11,095\n \n \n \n5,444\n \n \n \n2,512\n \n \n \n199\n \n \n \n50\n \n \n¥\n39,788\n \n\n \n\nNon-Performing\n\n \n \n256\n \n \n \n402\n \n \n \n296\n \n \n \n224\n \n \n \n4\n \n \n \n4\n \n \n¥\n1,186\n \n\n \nGross write-offs\n \n \n137\n \n \n \n1,046\n \n \n \n1,390\n \n \n \n1,122\n \n \n \n23\n \n \n \n2\n \n \n¥\n3,720\n \n\nCorporate\nborrowers\n:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n813,938\n \n \n \n449,888\n \n \n \n164,930\n \n \n \n78,714\n \n \n \n107,095\n \n \n \n133,575\n \n \n¥\n1,748,140\n \n\n \n\nNon-Performing\n\n \n \n1,276\n \n \n \n3,184\n \n \n \n9,835\n \n \n \n7,692\n \n \n \n13,814\n \n \n \n26,748\n \n \n¥\n62,549\n \n\n \nGross write-offs\n \n \n305\n \n \n \n76\n \n \n \n471\n \n \n \n74\n \n \n \n143\n \n \n \n3,304\n \n \n¥\n4,373\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-6\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\n \n\n \n\nOrigination year (years ended March 31)\n\n \n\n \n\n \n\n \n\nClass\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit Quality\n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2022\n\n \n\n \n\nPrior\n\n \n\n \n\nTotal\n\n \n\nNon-recourse\nloans\n\n \n \n        \n \n \n \n        \n \n \n \n        \n \n \n \n        \n \n \n \n         \n \n \n \n        \n \n \n \n        \n \n\nJapan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n181,856\n \n \n \n113,115\n \n \n \n30,906\n \n \n \n7,633\n \n \n \n6,753\n \n \n \n2,858\n \n \n¥\n343,121\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n¥\n0\n \n\nOverseas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n89,661\n \n \n \n61,545\n \n \n \n23,222\n \n \n \n7,398\n \n \n \n2,037\n \n \n \n4,439\n \n \n¥\n188,302\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n79\n \n \n \n4,656\n \n \n \n855\n \n \n \n1,065\n \n \n \n5,351\n \n \n¥\n12,006\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n1,264\n \n \n¥\n1,264\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate companies in Japan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n211,938\n \n \n \n96,971\n \n \n \n40,453\n \n \n \n22,320\n \n \n \n19,139\n \n \n \n69,631\n \n \n¥\n460,452\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n19\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n535\n \n \n¥\n554\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n5\n \n \n \n0\n \n \n \n13\n \n \n¥\n18\n \n\nReal estate companies in overseas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n46,394\n \n \n \n5,163\n \n \n \n1,147\n \n \n \n1,120\n \n \n \n0\n \n \n \n5,848\n \n \n¥\n59,672\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n0\n \n \n \n440\n \n \n \n1,586\n \n \n \n63\n \n \n \n92\n \n \n¥\n2,181\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n¥\n0\n \n\nCommercial, industrial and other companies in Japan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n111,912\n \n \n \n52,689\n \n \n \n28,678\n \n \n \n8,018\n \n \n \n8,374\n \n \n \n8,501\n \n \n¥\n218,172\n \n\n \n\nNon-Performing\n\n \n \n14\n \n \n \n411\n \n \n \n47\n \n \n \n116\n \n \n \n11\n \n \n \n139\n \n \n¥\n738\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n8\n \n \n \n7\n \n \n \n0\n \n \n \n9\n \n \n¥\n24\n \n\nCommercial, industrial and other companies in overseas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n172,177\n \n \n \n120,405\n \n \n \n40,524\n \n \n \n32,225\n \n \n \n70,792\n \n \n \n42,298\n \n \n¥\n478,421\n \n\n \n\nNon-Performing\n\n \n \n1,262\n \n \n \n2,675\n \n \n \n4,692\n \n \n \n5,135\n \n \n \n12,675\n \n \n \n20,631\n \n \n¥\n47,070\n \n\n \nGross write-offs\n \n \n305\n \n \n \n76\n \n \n \n463\n \n \n \n62\n \n \n \n143\n \n \n \n2,018\n \n \n¥\n3,067\n \n\nLoans to Equity method investees:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n3,032\n \n \n \n573\n \n \n \n585\n \n \n \n2,005\n \n \n \n21\n \n \n \n15,020\n \n \n¥\n21,236\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n¥\n0\n \n\n \nGross write-offs\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n1,439\n \n \n¥\n1,439\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nPurchased\nloans\n:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n0\n \n \n \n792\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n13,019\n \n \n¥\n13,811\n \n\n \n\nNon-Performing\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n228\n \n \n¥\n228\n \n\n \nGross write-offs\n \n \n0\n \n \n \n10\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n3,753\n \n \n¥\n3,763\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n70\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio\nsegment\n\n \n\n \n\n \n\nOrigination year (years ended March 31)\n\n \n\n \n\n \n\n \n\nClass\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit Quality\n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2022\n\n \n\n \n\nPrior\n\n \n\n \n\nTotal\n\n \n\nNet investment in leases:\n\n \n \n        \n \n \n \n        \n \n \n \n        \n \n \n \n        \n \n \n \n         \n \n \n \n        \n \n \n \n        \n \n\n \nPerforming\n \n \n490,025\n \n \n \n327,849\n \n \n \n202,407\n \n \n \n96,189\n \n \n \n47,874\n \n \n \n56,070\n \n \n¥\n1,220,414\n \n\n \n\nNon-Performing\n\n \n \n3,616\n \n \n \n5,892\n \n \n \n6,810\n \n \n \n3,699\n \n \n \n1,456\n \n \n \n5,604\n \n \n¥\n27,077\n \n\n \nGross write-offs\n \n \n57\n \n \n \n396\n \n \n \n1,337\n \n \n \n1,559\n \n \n \n416\n \n \n \n1,173\n \n \n¥\n4,938\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nJapan\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n197,362\n \n \n \n152,845\n \n \n \n105,743\n \n \n \n66,152\n \n \n \n40,753\n \n \n \n52,159\n \n \n¥\n615,014\n \n\n \n\nNon-Performing\n\n \n \n146\n \n \n \n517\n \n \n \n865\n \n \n \n778\n \n \n \n668\n \n \n \n1,345\n \n \n¥\n4,319\n \n\n \nGross write-offs\n \n \n0\n \n \n \n16\n \n \n \n120\n \n \n \n223\n \n \n \n189\n \n \n \n586\n \n \n¥\n1,134\n \n\nOverseas\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n \n292,663\n \n \n \n175,004\n \n \n \n96,664\n \n \n \n30,037\n \n \n \n7,121\n \n \n \n3,911\n \n \n¥\n605,400\n \n\n \n\nNon-Performing\n\n \n \n3,470\n \n \n \n5,375\n \n \n \n5,945\n \n \n \n2,921\n \n \n \n788\n \n \n \n4,259\n \n \n¥\n22,758\n \n\n \nGross write-offs\n \n \n57\n \n \n \n380\n \n \n \n1,217\n \n \n \n1,336\n \n \n \n227\n \n \n \n587\n \n \n¥\n3,804\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n(excluding revolving repayment card loans)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \nPerforming\n \n¥\n1,699,069\n \n \n¥\n1,069,922\n \n \n¥\n504,326\n \n \n¥\n314,302\n \n \n¥\n285,095\n \n \n¥\n1,176,356\n \n \n¥\n5,049,070\n \n\n \n\nNon-Performing\n\n \n \n5,343\n \n \n \n12,541\n \n \n \n18,829\n \n \n \n16,432\n \n \n \n16,675\n \n \n \n43,032\n \n \n¥\n112,852\n \n\n \nGross write-offs\n \n \n499\n \n \n \n1,528\n \n \n \n3,198\n \n \n \n2,789\n \n \n \n687\n \n \n \n9,864\n \n \n¥\n18,565\n \n\n \n\n \n\nNotes:\n\n  \n\n1\n\n  \n\nLoans held for sale, policy loan receivables of an insurance entity and financing receivables, such as accounts receivable are not included in the table above.\n\n  \n\n  \n\n2\n\n  \n\nSince April 1, 2025, the geographic classification of Non-recourse loans within Installment loans to corporate borrowers has been changed from “The Americas” to “Overseas,” reflecting the occurrence of transactions outside The Americas, although the principal assets remain located in The Americas.\n\nThe\ninformation\nabout card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year as of March 31, 2025 and 2026 and the gross write-offs, corresponding to card loans, recorded during fiscal 2025 and 2026 is as follows:\n\n \n\n \n\n  \n\nMarch 31, 2025\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\nPortfolio\nsegment\n\n  \n\nRevolving\nrepayment\ncard loans\n\n \n\n  \n\nTotal—\n\norigination year\n\n(excluding revolving\n\nrepayment card\nloans)\n\n \n\n  \n\nTotal—\n\nfinancial assets\nmeasured at amortized\ncost\n\n \n\nCredit quality\n\nConsumer borrowers:\n\n  \n\n  \n\n  \n\nPerforming\n\n  \n\n¥\n\n67,874\n\n \n\n  \n\n¥\n\n4,895,662\n\n \n\n  \n\n¥\n\n4,963,536\n\n \n\n  \n\n  \n\n  \n\n \n\n \n\n \n\nNon-Performing\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n114,467\n\n \n\n  \n\n¥\n\n114,467\n\n \n\n  \n\n  \n\n  \n\n \n\n \n\n \n\nGross write-offs\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n19,028\n\n \n\n  \n\n¥\n\n19,028\n\n \n\n  \n\n  \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\nF-\n71\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMarch 31, 2026\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\nPortfolio segment\n\n  \n\nRevolving\nrepayment\ncard loans\n\n \n\n  \n\nTotal—\n\norigination year\n\n(excluding revolving\n\nrepayment card\nloans)\n\n \n\n  \n\nTotal—\n\nfinancial assets\nmeasured at amortized\ncost\n\n \n\nCredit quality\n\nConsumer borrowers:\n\n  \n\n  \n\n  \n\nPerforming\n\n  \n\n¥\n\n64,600\n\n \n\n  \n\n¥\n\n5,049,070\n\n \n\n  \n\n¥\n\n5,113,670\n\n \n\n  \n\n  \n\n  \n\n \n\n \n\n \n\nNon-Performing\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n112,852\n\n \n\n  \n\n¥\n\n112,852\n\n \n\n  \n\n  \n\n  \n\n \n\n \n\n \n\nGross write-offs\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n18,565\n\n \n\n  \n\n¥\n\n18,565\n\n \n\n  \n\n  \n\n  \n\n \n\n \n\nOf\n\nnon\n-performing\nassets, the Company and its subsidiaries consider smaller balance homogeneous loans (including real estate loans and card loans, among others, which are not restructured) and net investment in leases as the 90 days or more\npast-due\nfinancing receivables not individually evaluated, and consider all others as the loans individually evaluated. After the Company and its subsidiaries have set aside a provision for those\nnon-performing\nassets, the Company and its subsidiaries continue to monitor at least on a quarterly basis the quality of any underlying collateral, the business conditions of the debtors and other important factors in order to report to management and develop additional provision for credit losses as necessary.\n\nThe following table provides information about the\npast-due\nfinancial assets as of March 31, 2025 and 2026:\n\n \n\n \n \n\nMarch 31, 2025\n\n \n\n \n \n \n \n\nMillions of yen\n\n \n\n \n \n \n \n\nPast-due\nfinancial assets\n\n \n \n \n \n\nPortfolio segment\n\n \n\nClass\n\n \n\n30-89 days\n\npast-due\n\n \n \n\n90 days\n\nor more\n\npast-due\n\n \n \n\nTotal\n\npast-due\n\n \n \n\nTotal\n\nfinancing\n\nreceivables\n\n \n\nConsumer borrowers\n\n \n\n \n¥\n4,481\n \n \n¥\n7,645\n \n \n¥\n12,126\n \n \n¥\n2,067,900\n \n\n \nReal estate loans\n \n \n2,536\n \n \n \n5,423\n \n \n \n7,959\n \n \n \n1,956,816\n \n\n \nCard loans\n \n \n355\n \n \n \n0\n \n \n \n355\n \n \n \n67,874\n \n\n \nOther\n \n \n1,590\n \n \n \n2,222\n \n \n \n3,812\n \n \n \n43,210\n \n\nCorporate borrowers\n\n \n\n \n \n9,896\n \n \n \n35,085\n \n \n \n44,981\n \n \n \n1,689,281\n \n\nNon-recourse\nloans\n\n \nJapan\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n301,477\n \n\n \n\nThe Americas\n\n \n \n2,141\n \n \n \n3,696\n \n \n \n5,837\n \n \n \n86,724\n \n\nOther than\nnon-recourse\nloans\n\n \nReal estate companies in Japan\n \n \n200\n \n \n \n29\n \n \n \n229\n \n \n \n415,666\n \n\n \nReal estate companies in overseas\n \n \n36\n \n \n \n2,419\n \n \n \n2,455\n \n \n \n82,187\n \n\n \n\nCommercial, industrial and\n\nother companies in Japan\n\n \n \n1,992\n \n \n \n520\n \n \n \n2,512\n \n \n \n225,900\n \n\n \n\nCommercial, industrial and\n\nother companies in overseas\n\n \n \n5,527\n \n \n \n28,421\n \n \n \n33,948\n \n \n \n577,327\n \n\nLoans to Equity method investees\n\n \n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n132,053\n \n\nNet investment in leases\n\n \n\n \n \n20,113\n \n \n \n20,577\n \n \n \n40,690\n \n \n \n1,167,380\n \n\n \nJapan\n \n \n3,851\n \n \n \n3,915\n \n \n \n7,766\n \n \n \n618,963\n \n\n \nOverseas\n \n \n16,262\n \n \n \n16,662\n \n \n \n32,924\n \n \n \n548,417\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n\n \n¥\n34,490\n \n \n¥\n63,307\n \n \n¥\n97,797\n \n \n¥\n5,056,614\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-7\n2\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\n \n\n \n\nPast-due\nfinancial assets\n\n \n\n \n\n \n\n \n\nPortfolio segment\n\n \n\nClass\n\n \n\n30-89 days\n\npast-due\n\n \n\n \n\n90 days\n\nor more\n\npast-due\n\n \n\n \n\nTotal\n\npast-due\n\n \n\n \n\nTotal\n\nfinancing\n\nreceivables\n\n \n\nConsumer borrowers\n\n \n\n \n¥\n4,742\n \n \n¥\n10,817\n \n \n¥\n15,559\n \n \n¥\n2,133,067\n \n\n \nReal estate loans\n \n \n2,703\n \n \n \n9,944\n \n \n \n12,647\n \n \n \n2,027,493\n \n\n \nCard loans\n \n \n350\n \n \n \n0\n \n \n \n350\n \n \n \n64,600\n \n\n \nOther\n \n \n1,689\n \n \n \n873\n \n \n \n2,562\n \n \n \n40,974\n \n\nCorporate borrowers\n\n \n\n \n \n16,246\n \n \n \n20,742\n \n \n \n36,988\n \n \n \n1,810,689\n \n\nNon-recourse\nloans\n\n \nJapan\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n343,121\n \n\n \n\nOverseas\n\n \n \n6,022\n \n \n \n5,456\n \n \n \n11,478\n \n \n \n200,308\n \n\nOther than\nnon-recourse\nloans\n\n \nReal estate companies in Japan\n \n \n292\n \n \n \n0\n \n \n \n292\n \n \n \n461,006\n \n\n \nReal estate companies in overseas\n \n \n363\n \n \n \n2,181\n \n \n \n2,544\n \n \n \n61,853\n \n\n \n\nCommercial, industrial and\n\nother companies in Japan\n\n \n \n2,442\n \n \n \n541\n \n \n \n2,983\n \n \n \n218,910\n \n\n \n\nCommercial, industrial and\n\nother companies in overseas\n\n \n \n7,127\n \n \n \n12,564\n \n \n \n19,691\n \n \n \n525,491\n \n\nLoans to Equity method investees\n\n \n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n21,236\n \n\nNet investment in leases\n\n \n\n \n \n32,063\n \n \n \n26,397\n \n \n \n58,460\n \n \n \n1,247,491\n \n\n \n\nJapan\n\n \n \n2,234\n \n \n \n3,920\n \n \n \n6,154\n \n \n \n619,333\n \n\n \n\nOverseas\n\n \n \n29,829\n \n \n \n22,477\n \n \n \n52,306\n \n \n \n628,158\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n\n \n¥\n53,051\n \n \n¥\n57,956\n \n \n¥\n111,007\n \n \n¥\n5,212,483\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNotes: 1\n\nLoans held for sale, policy loans receivable of an insurance entity and purchased loans are not included in the table above.\n\n    2\n\nSince April 1, 2025, the geographic classification of\nNon-recourse\nloans within Installment loans to corporate borrowers has been changed from “The Americas” to “Overseas,” reflecting the occurrence of transactions outside The Americas, although the principal assets remain located in The\nAmericas\n.\n\nIn common with all classes, the Company and its subsidiaries consider financial assets as\npast-due\nfinancial assets when principal or interest is\npast-due\n30 days or more. Loans whose terms have been modified are not classified as\npast-due\nfinancial assets if the principal and interest are not\npast-due\n30 days or more in accordance with the modified terms.\n\n \n\nF-7\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table provides information about\nnon-accrual\nof financial assets as of March 31, 2025 and 2026:\n\n \n\n \n \n\nMarch 31, 2025\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nBeginning\nbalance\n\n \n \n\nEnding\nbalance\n\n \n \n\nInterest income\nrecognized during\nthe reporting period\n\n \n \n\nBalance not\nassociated\nallowance for credit\nlosses among\nfinancial assets\nmeasured at\namortized cost,\nwhich is suspending\nrecognition of\nincome\n\n \n\nNon-accrual\nof financial assets:\n\n \n\n \n\n \n\n \n\nInstallment loans to consumer borrowers:\n\n \n\n \n\n \n\n \n\nReal estate loans\n\n \n\n \n\n \n\n \n\nJapan\n\n \n¥\n1,095\n \n \n¥\n1,235\n \n \n¥\n260\n \n \n¥\n128\n \n\nOverseas\n\n \n \n1,107\n \n \n \n4,976\n \n \n \n0\n \n \n \n0\n \n\nOther\n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n96\n \n \n \n86\n \n \n \n1\n \n \n \n0\n \n\nOverseas\n\n \n \n2,574\n \n \n \n2,373\n \n \n \n0\n \n \n \n4\n \n\nInstallment loans to corporate borrowers:\n\n \n\n \n\n \n\n \n\nNon-recourse\nloans\n\n \n\n \n\n \n\n \n\nThe Americas\n\n \n \n3,116\n \n \n \n3,831\n \n \n \n0\n \n \n \n603\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\nReal estate companies\n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n115\n \n \n \n29\n \n \n \n30\n \n \n \n0\n \n\nOverseas\n\n \n \n1,731\n \n \n \n3,417\n \n \n \n0\n \n \n \n0\n \n\nCommercial, industrial and\n\nother companies\n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n355\n \n \n \n520\n \n \n \n54\n \n \n \n37\n \n\nOverseas\n\n \n \n27,636\n \n \n \n60,629\n \n \n \n0\n \n \n \n2,203\n \n\nLoans to Equity method investees\n\n \n \n1,929\n \n \n \n1,345\n \n \n \n0\n \n \n \n0\n \n\nNet investment in leases\n\n \n \n19,002\n \n \n \n20,597\n \n \n \n0\n \n \n \n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n58,756\n \n \n¥\n99,038\n \n \n¥\n345\n \n \n¥\n2,975\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-7\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nBeginning\nbalance\n\n \n\n \n\nEnding\nbalance\n\n \n\n \n\nInterest income\nrecognized during\nthe reporting period\n\n \n\n \n\nBalance not\nassociated\nallowance for credit\nlosses among\nfinancial assets\nmeasured at\namortized cost,\nwhich is suspending\nrecognition of\nincome\n\n \n\nNon-accrual\nof financial assets:\n\n \n\n \n\n \n\n \n\nInstallment loans to consumer borrowers:\n\n \n\n \n\n \n\n \n\nReal estate loans\n\n \n\n \n\n \n\n \n\nJapan\n\n \n¥\n1,235\n \n \n¥\n1,050\n \n \n¥\n281\n \n \n¥\n322\n \n\nOverseas\n\n \n \n4,976\n \n \n \n8,895\n \n \n \n0\n \n \n \n137\n \n\nOther\n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n86\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOverseas\n\n \n \n2,373\n \n \n \n982\n \n \n \n0\n \n \n \n3\n \n\nInstallment loans to corporate borrowers:\n\n \n\n \n\n \n\n \n\nNon-recourse\nloans\n\n \n\n \n\n \n\n \n\nOverseas\n\n \n \n3,831\n \n \n \n11,477\n \n \n \n0\n \n \n \n0\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\nReal estate companies\n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n29\n \n \n \n0\n \n \n \n22\n \n \n \n0\n \n\nOverseas\n\n \n \n3,417\n \n \n \n2,181\n \n \n \n0\n \n \n \n0\n \n\nCommercial, industrial and\n\nother companies\n\n \n\n \n\n \n\n \n\nJapan\n\n \n \n520\n \n \n \n541\n \n \n \n3\n \n \n \n0\n \n\nOverseas\n\n \n \n60,629\n \n \n \n46,642\n \n \n \n0\n \n \n \n2,399\n \n\nLoans to Equity method investees\n\n \n \n1,345\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nNet investment in leases\n\n \n \n20,597\n \n \n \n26,420\n \n \n \n0\n \n \n \n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n99,038\n \n \n¥\n98,188\n \n \n¥\n306\n \n \n¥\n2,861\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNote:\n\nSince April 1, 2025, the\ngeographic\nclassification of\nNon-recourse\nloans within Installment loans to corporate borrowers has been changed from “The Americas” to “Overseas,” reflecting the occurrence of transactions outside The Americas, although the principal assets remain located in The Americas.\n\nF-7\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table provides information about modifications of financing receivables made to debtors experiencing financial difficulty that occurred during fiscal 2024, 2025 and 2026:\n\n \n\nFiscal Year ended March 31, 2024\n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n  \n\nInterest rate reduction\n\n \n\n  \n\nTerm extension\n\n \n\n  \n\nPrincipal forgiveness\n\n \n\nClass\n\n  \n\nAmortized\ncost basis\n\n \n\n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\n  \n\nAmortized\ncost basis\n\n \n\n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\n  \n\nAmortized\ncost basis\n\n \n\n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\nConsumer borrowers\n\n  \n\n¥\n\n1,266\n\n \n\n  \n\n \n\n0.1\n\n \n\n  \n\n¥\n\n4,652\n\n \n\n  \n\n \n\n0.2\n\n \n\n  \n\n¥\n\n42\n\n \n\n  \n\n \n\n0.0\n\n \n\nReal estate loans\n\n  \n\n \n\n5\n\n \n\n  \n\n \n\n0.0\n\n \n\n  \n\n \n\n1\n\n \n\n  \n\n \n\n0.0\n\n \n\n  \n\n \n\n1\n\n \n\n  \n\n \n\n0.0\n\n \n\nCard loans\n\n  \n\n \n\n1,176\n\n \n\n  \n\n \n\n1.6\n\n \n\n  \n\n \n\n6\n\n \n\n  \n\n \n\n0.0\n\n \n\n  \n\n \n\n40\n\n \n\n  \n\n \n\n0.1\n\n \n\nOther\n\n  \n\n \n\n85\n\n \n\n  \n\n \n\n0.2\n\n \n\n  \n\n \n\n4,645\n\n \n\n  \n\n \n\n9.2\n\n \n\n  \n\n \n\n1\n\n \n\n  \n\n \n\n0.0\n\n \n\nCorporate borrowers\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n4,499\n\n \n\n  \n\n \n\n0.3\n\n \n\n  \n\n \n\n932\n\n \n\n  \n\n \n\n0.1\n\n \n\nNon-recourse\nloans\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n1,277\n\n \n\n  \n\n \n\n0.7\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nThe Americas\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n1,277\n\n \n\n  \n\n \n\n2.5\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nOther than\nnon-recourse\nloans\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n3,222\n\n \n\n  \n\n \n\n0.3\n\n \n\n  \n\n \n\n932\n\n \n\n  \n\n \n\n0.1\n\n \n\nReal estate companies in Japan\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n69\n\n \n\n  \n\n \n\n0.0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nCommercial, industrial and other companies in Japan\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n711\n\n \n\n  \n\n \n\n0.4\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nCommercial, industrial and other companies in overseas\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n2,442\n\n \n\n  \n\n \n\n0.3\n\n \n\n  \n\n \n\n932\n\n \n\n  \n\n \n\n0.1\n\n \n\nLoans to Equity method investees\n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n955\n\n \n\n  \n\n \n\n0.4\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n¥\n\n1,266\n\n \n\n  \n\n \n\n 0.0\n\n \n\n  \n\n¥\n\n10,106\n\n \n\n  \n\n \n\n 0.2\n\n \n\n  \n\n¥\n\n974\n\n \n\n  \n\n \n\n 0.0\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\nFiscal Year ended March 31, 2025\n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n  \n\nInterest rate reduction\n\n \n  \n\nTerm extension\n\n \n  \n\nPrincipal forgiveness\n\n \n\nClass\n\n  \n\nAmortized\ncost basis\n\n \n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n  \n\nAmortized\ncost basis\n\n \n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n  \n\nAmortized\ncost basis\n\n \n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\nConsumer borrowers\n\n  \n¥\n2\n \n \n \n0.0\n \n  \n¥\n50\n \n  \n \n0.0\n \n  \n¥\n  0\n \n  \n \n0\n \n\nOther\n\n  \n \n2\n \n  \n \n0.0\n \n  \n \n50\n \n  \n \n0.1\n \n  \n \n0\n \n  \n \n0\n \n\nCorporate borrowers\n\n  \n \n0\n \n  \n \n0\n \n  \n \n11,318\n \n  \n \n0.7\n \n  \n \n16\n \n  \n \n0.0\n \n\nNon-recourse\nloans\n\n  \n \n0\n \n  \n \n0\n \n  \n \n2,141\n \n  \n \n0.6\n \n  \n \n0\n \n  \n \n0\n \n\nThe Americas\n\n  \n \n0\n \n  \n \n0\n \n  \n \n2,141\n \n  \n \n2.5\n \n  \n \n0\n \n  \n \n0\n \n\nOther than\nnon-recourse\nloans\n\n  \n \n0\n \n  \n \n0\n \n  \n \n9,177\n \n  \n \n0.7\n \n  \n \n16\n \n  \n \n0.0\n \n\nReal estate companies in Japan\n\n  \n \n0\n \n  \n \n0\n \n  \n \n1,272\n \n  \n \n0.3\n \n  \n \n0\n \n  \n \n0\n \n\nReal estate companies in overseas\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in Japan\n\n  \n \n0\n \n  \n \n0\n \n  \n \n623\n \n  \n \n0.2\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in overseas\n\n  \n \n0\n \n  \n \n0\n \n  \n \n7,282\n \n  \n \n1.3\n \n  \n \n16\n \n  \n \n0.0\n \n\nLoans to Equity method investees\n\n  \n \n0\n \n  \n \n0\n \n  \n \n933\n \n  \n \n0.7\n \n  \n \n0\n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n 2\n \n  \n \n 0.0\n \n  \n¥\n12,301\n \n  \n \n 0.2\n \n  \n¥\n16\n \n  \n \n0.0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-7\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nPortfolio segment\n\n \n\nCombination - interest rate\n\nreduction and term\nextension\n\n \n\nClass\n\n \n\nAmortized\ncost basis\n\n \n\n \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\nConsumer borrowers\n\n \n¥\n138\n \n \n \n0.0\n \n\nOther\n\n \n \n138\n \n \n \n0.3\n \n\nCorporate borrowers\n\n \n \n14,407\n \n \n \n0.8\n \n\nNon-recourse\nloans\n\n \n \n0\n \n \n \n0\n \n\nThe Americas\n\n \n \n0\n \n \n \n0\n \n\nOther than\nnon-recourse\nloans\n\n \n \n14,407\n \n \n \n1.1\n \n\nReal estate companies in Japan\n\n \n \n0\n \n \n \n0\n \n\nReal estate companies in overseas\n\n \n \n1,701\n \n \n \n1.3\n \n\nCommercial, industrial and other companies in Japan\n\n \n \n0\n \n \n \n0\n \n\nCommercial, industrial and other companies in overseas\n\n \n \n12,706\n \n \n \n2.2\n \n\nLoans to Equity method investees\n\n \n \n0\n \n \n \n0\n \n\nTotal\n\n \n¥ \n14,545\n \n \n \n   0.3\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nFiscal\nYear ended March 31, 2026\n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n  \n\nInterest rate reduction\n\n \n\n  \n\nTerm extension\n\n \n\n  \n\nPrincipal forgiveness\n\n \n\nClass\n\n  \n\nAmortized\ncost basis\n\n \n\n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\n  \n\nAmortized\ncost basis\n\n \n\n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\n  \n\nAmortized\ncost basis\n\n \n\n  \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\nConsumer borrowers\n\n  \n¥\n7\n \n  \n \n0.0\n \n  \n¥\n15\n \n  \n \n0.0\n \n  \n¥\n5\n \n  \n \n0.0\n \n\nOther\n\n  \n \n7\n \n  \n \n0.0\n \n  \n \n15\n \n  \n \n0.0\n \n  \n \n0\n \n  \n \n0\n \n\nCorporate borrowers\n\n  \n \n0\n \n  \n \n0\n \n  \n \n8,859\n \n  \n \n0.5\n \n  \n \n12\n \n  \n \n0.0\n \n\nOther than\nnon-recourse\nloans\n\n  \n \n0\n \n  \n \n0\n \n  \n \n8,859\n \n  \n \n0.7\n \n  \n \n12\n \n  \n \n0.0\n \n\nReal estate companies in Japan\n\n  \n \n0\n \n  \n \n0\n \n  \n \n313\n \n  \n \n0.1\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in Japan\n\n  \n \n0\n \n  \n \n0\n \n  \n \n404\n \n  \n \n0.2\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in\n \noverseas\n\n  \n \n0\n \n  \n \n0\n \n  \n \n8,142\n \n  \n \n1.5\n \n  \n \n12\n \n  \n \n0.0\n \n\nNet investment in leases\n\n  \n \n0\n \n  \n \n0\n \n  \n \n91\n \n  \n \n0.0\n \n  \n \n12\n \n  \n \n0.0\n \n\nJapan\n\n  \n \n0\n \n  \n \n0\n \n  \n \n91\n \n  \n \n0.0\n \n  \n \n0\n \n  \n \n0\n \n\nOverseas\n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n12\n\n \n\n \n\n \n\n0.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n   7\n \n  \n \n  0.0\n \n  \n¥\n  8,965\n \n  \n \n  0.2\n \n  \n¥\n  29\n \n  \n \n  0.0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-77\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nPortfolio segment\n\n \n\nCombination - interest rate\n\nreduction and term\nextension\n\n \n\n \n\nCombination - interest rate\n\nreduction, term extension\nand principal forgiveness\n\n \n\nClass\n\n \n\nAmortized\ncost basis\n\n \n\n \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\n \n\nAmortized\ncost basis\n\n \n\n \n\n% of total\nclass of\nfinancing\nreceivable\n\n \n\nConsumer borrowers\n\n \n\n¥\n\n83\n\n \n\n \n\n \n\n0.0\n\n \n\n \n\n¥\n\n0\n\n \n\n \n\n \n\n0\n\n \n\nOther\n\n \n\n \n\n83\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\nCorporate borrowers\n\n \n\n \n\n1,495\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n2,620\n\n \n\n \n\n \n\n0.1\n\n \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n1,495\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n2,620\n\n \n\n \n\n \n\n0.2\n\n \n\nReal estate companies in Japan\n\n \n\n \n\n130\n\n \n\n \n\n \n\n0.0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\nCommercial, industrial and other companies in Japan\n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\nCommercial, industrial and other companies in overseas\n\n \n\n \n\n1,365\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n2,620\n\n \n\n \n\n \n\n0.5\n\n \n\nNet investment in leases\n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\nJapan\n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\nOverseas\n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n¥\n\n1,578\n\n \n\n \n\n \n\n  0.0\n\n \n\n \n\n¥\n\n2,620\n\n \n\n \n\n \n\n  0.1\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe Company and its subsidiaries offer various types of concessions to the debtors to protect as much of the investment as possible in modifications of financing receivables made to debtors experiencing financial difficulty. For the debtors of all financing receivables, the Company and its subsidiaries offer concessions including an interest rate reduction and a term extension. In addition, for the debtors of all financing receivables other than\nnon-recourse\nloans, the Company and its subsidiaries also offer concessions such as a principal forgiveness or a reduction in the interest payments. Furthermore, the Company and its subsidiaries may acquire collateral assets from the debtors in modifications of financing receivables made to debtors experiencing financial difficulty to satisfy fully or partially the loan principal or past due interest.\n\nIn common with all portfolio segments, financing receivables modified to debtors experiencing financial difficulty are recognized as impaired and are individually evaluated for allowance for credit losses, taking into account payment default and repayment status after modifications. In most cases, these financing receivables have already been considered impaired and individually evaluated for allowance for credit losses prior to the modifications. However, as a result of the modification, the Company and its subsidiaries may recognize additional allowance for credit losses for the modified receivables.\n\n \n\nF-78\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\nThe following table provides information about the financial effect of the modifications of financing receivables made to debtors experiencing financial difficulty that occurred during fiscal 2024, 2025 and 2026:\n\n \n\n  \n\nFiscal Year ended March 31, 2024\n\n \n\n  \n\nMillions of yen\n\nPortfolio segment\n\n  \n\nFinancial effect\n\nClass\n\n  \n\nInterest rate reduction\n\n  \n\nTerm extension\n\n  \n\nPrincipal forgiveness\n\nConsumer borrowers\n\n  \n\n  \n\n  \n\nReal estate loans\n\n  \nReduced weighted-average contractual interest rate from 5.3% to 0.0%.\n  \nAdded a weighted-average 1.0 years to the life of loans.\n  \nReduced the amortized cost basis of the loans by ¥8 million.\n\nCard loans\n\n  \nReduced weighted-average contractual interest rate from 12.7% to 0.7%.\n  \nAdded a weighted-average 0.9 years to the life of loans.\n  \nReduced the amortized cost basis of the loans by ¥185 million.\n\nOther\n\n  \nReduced weighted-average contractual interest rate from 14.6% to 5.3%.\n  \nAdded a weighted-average 4.9 years to the life of loans.\n  \nReduced the amortized cost basis of the loans by ¥785 million.\n\nCorporate borrowers\n\n  \n\n  \n\n  \n\nNon-recourse\nloans\n\n  \n \n \n \n \n \n\nThe Americas\n\n  \n— \n  \nAdded a weighted-average 1.0 years to the life of loans.\n  \n— \n\nOther than\nnon-recourse\nloans\n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate companies in Japan\n\n  \n— \n  \nAdded a weighted-average 0.5 years to the life of loans.\n  \n— \n\nCommercial, industrial and other companies in Japan\n\n  \n— \n  \nAdded a weighted-average 1.0 years to the life of loans.\n  \n— \n\nCommercial, industrial and other companies in overseas\n\n  \n\nReduced weighted-average contractual interest rate from\n8.8% to 6.4%.\n  \nAdded a weighted-average 3.1 years to the life of loans.\n  \nReduced the amortized cost basis of the loans by ¥1,487 million.\n\nLoans to Equity method investees\n\n  \n— \n  \nAdded a weighted-average 0.6 years to the life of loans.\n  \nReduced the amortized cost basis of the loans by ¥624 million.\n\nNet investment in leases\n\n \n\n \n\n \n\n \n\n \n\n \n\nOverseas\n\n  \n\n— \n\n  \n\n— \n\n  \n\nReduced the amortized cost basis of the loans by ¥0 million.\n\n \n\n \n\nF-79\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nFiscal Year ended March 31, 2025\n\n \n\n  \n\nMillions of yen\n\nPortfolio segment\n\n  \n\nFinancial effect\n\nClass\n\n  \n\nInterest rate reduction\n\n  \n\nTerm extension\n\n  \n\nPrincipal forgiveness\n\nConsumer borrowers\n\n  \n\n  \n\n  \n\nOther\n\n  \n\nReduced weighted-average contractual interest rate from 16.5% to 11.8%.\n\n  \n\nAdded a weighted-average 2.4 years to the life of loans.\n\n  \n\n— \n\nCorporate borrowers\n\n  \n\n  \n\n  \n\nNon-recourse\nloans\n\n  \n\n  \n\n  \n\nThe Americas\n\n  \n\n— \n\n  \n\nAdded a weighted-average 0.2 years to the life of loans.\n\n  \n\n— \n\nOther than\nnon-recourse\nloans\n\n  \n\n  \n\n  \n\nReal estate companies in Japan\n\n  \n\n— \n\n  \n\nAdded a weighted-average 2.6 years to the life of loans.\n\n  \n\n— \n\nReal estate companies in overseas\n\n  \n\nReduced weighted-average contractual interest rate from 7.9% to 6.5%.\n\n  \n\nAdded a weighted-average 2.5 years to the life of loans.\n\n  \n\n— \n\nCommercial, industrial and other companies in Japan\n\n  \n\n— \n\n  \n\nAdded a weighted-average 0.9 years to the life of loans.\n\n  \n\n— \n\nCommercial, industrial and other companies in overseas\n\n  \n\nReduced weighted-average contractual interest rate from 15.2% to 11.8%.\n\n  \n\nAdded a weighted-average 1.1 years to the life of loans.\n\n  \n\nReduced the amortized cost basis of the loans by ¥11 million.\n\nLoans to Equity method investees\n\n  \n\n— \n\n  \n\nAdded a weighted-average 0.5 years to the life of loans.\n\n  \n\n— \n\n \n\nF-80\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL\nSTATEMENTS\n—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nFiscal Year ended March 31, 2026\n\n \n\n  \n\nMillions of yen\n\nPortfolio segment\n\n  \n\nFinancial effect\n\nClass\n\n  \n\nInterest rate reduction\n\n  \n\nTerm extension\n\n  \n\nPrincipal forgiveness\n\nConsumer borrowers\n\n  \n\n  \n\n  \n\nReal estate loans\n\n  \n\n— \n\n  \n\n— \n\n  \n\nReduced the amortized cost basis of the loans by ¥54 million.\n\nOther\n\n  \n\nReduced weighted-average contractual interest rate from 16.4% to 11.6%.\n\n  \n\nAdded a weighted-average 2.5 years to the life of loans.\n\n  \n\n— \n\nCorporate borrowers\n\n  \n\n  \n\n  \n\nOther than non-recourse loans\n\n  \n\n  \n\n  \n\nReal estate companies in Japan\n\n  \n\nReduced weighted-average contractual interest rate from 2.7% to 2.4%.\n\n  \n\nAdded a weighted-average 0.5 years to the life of loans.\n\n  \n\n— \n\nCommercial, industrial and other companies in Japan\n\n  \n\n— \n\n  \n\nAdded a weighted-average 0.9 years to the life of loans.\n\n  \n\n— \n\nCommercial, industrial and other companies in overseas\n\n  \n\nReduced weighted-average contractual interest rate from 12.1% to 6.0%.\n\n  \n\nAdded a weighted-average 1.6 years to the life of loans.\n\n  \n\nReduced the amortized cost basis of the loans by ¥1,405 million.\n\nNet investment in leases\n\n  \n\n  \n\n  \n\nJapan\n\n  \n\n— \n\n  \n\nAdded a weighted-average 0.5 years to the life of loans.\n\n  \n\n— \n\nOverseas\n\n  \n\n— \n\n  \n\n— \n\n  \n\nReduced the amortized cost basis of the loans by ¥35 million.\n\nF-81\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table provides information\nabout\nfinancing receivable that had a payment default and had been modified, when the debtor was experiencing financial difficulty, within the previous 12 months preceding the payment default date during fiscal 2024, 2025 and 2026.\n\n \n\n \n\n \n\nFiscal Year ended March 31, 2024\n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\nInterest rate\nreduction\n\n \n\n \n\nTerm extension\n\n \n\n \n\nPrincipal\nforgiveness\n\n \n\n \n\nCombination\n- interest rate\nreduction and\nterm\nextension\n\n \n\n \n\nCombination\n\n- interest rate\n\nreduction and\nprincipal\nforgiveness\n\n \n\n \n\nCombination\n\n- term extension\n\nand principal\nforgiveness\n\n \n\nClass\n\nConsumer borrowers\n\n \n\n¥\n\n  25\n\n \n\n \n\n¥\n\n 212\n\n \n\n \n\n¥\n\n  1\n\n \n\n \n\n¥\n\n  0\n\n \n\n \n\n¥\n\n  33\n\n \n\n \n\n¥\n\n  9\n\n \n\nReal estate loans\n\n \n\n \n\n3\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\nCard loans\n\n \n\n \n\n18\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n28\n\n \n\n \n\n \n\n0\n\n \n\nOther\n\n \n\n \n\n4\n\n \n\n \n\n \n\n212\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n5\n\n \n\n \n\n \n\n9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n¥\n\n25\n\n \n\n \n\n¥\n\n212\n\n \n\n \n\n¥\n\n1\n\n \n\n \n\n¥\n\n0\n\n \n\n \n\n¥\n\n33\n\n \n\n \n\n¥\n\n9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n\nFiscal Year ended March 31, 2025\n\n \n\n \n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\nInterest rate\nreduction\n\n \n \n\nTerm extension\n\n \n \n\nPrincipal\nforgiveness\n\n \n \n\nCombination\n- interest rate\nreduction and\nterm\nextension\n\n \n \n\nCombination\n\n- interest rate\n\nreduction and\nprincipal\nforgiveness\n\n \n \n\nCombination\n\n- term extension\n\nand principal\nforgiveness\n\n \n\nClass\n\nConsumer borrowers\n\n \n¥\n  0\n \n \n¥\n  0\n \n \n¥\n  0\n \n \n¥\n17\n \n \n¥\n  0\n \n \n¥\n  0\n \n\nOther\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n17\n \n \n \n0\n \n \n \n0\n \n\nCorporate borrowers\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7,620\n \n \n \n0\n \n \n \n0\n \n\nOther than\nnon-recourse\nloans\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7,620\n \n \n \n0\n \n \n \n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCommercial, industrial and other companies in overseas\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7,620\n \n \n \n0\n \n \n \n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n0\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n7,637\n \n \n¥\n0\n \n \n¥\n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFiscal Year ended March 31, 2026\n\n \n\n \n\n \n\nMillions of yen\n\n \n\nPortfolio segment\n\n \n\nInterest rate\nreduction\n\n \n\n \n\nTerm extension\n\n \n\n \n\nPrincipal\nforgiveness\n\n \n\n \n\nCombination\n- interest rate\nreduction and\nterm\nextension\n\n \n\n \n\nCombination\n\n- interest rate\n\nreduction and\nprincipal\nforgiveness\n\n \n\n \n\nCombination\n\n- term extension\n\nand principal\nforgiveness\n\n \n\nClass\n\nCorporate borrowers\n\n \n¥\n  0\n \n \n¥\n8,142\n \n \n¥\n  0\n \n \n¥\n  0\n \n \n¥\n  0\n \n \n¥\n  0\n \n\nOther than\nnon-recourse\nloans\n\n \n \n0\n \n \n \n8,142\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nCommercial, industrial and other companies in overseas\n\n \n \n0\n \n \n \n8,142\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n0\n \n \n¥\n8,142\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n\n82\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe Company and its subsidiaries consider financing receivables whose terms have been modified to debtors experiencing financial difficulty as defaulted receivables when principal or interest is\npast-due\n90 days or more in accordance with the modified terms.\n\nIn common with all portfolio segments, the Company and its subsidiaries suspend accruing interest and may recognize additional allowance for credit losses as necessary for the defaulted receivables.\n\nThe following table provides information about the\npast-due\nfinancial assets modified to debtors experiencing financial difficulty within the previous 12 months from March 31, 2024, 2025 and 2026:\n\n \n\n \n\n  \n\nMarch 31, 2024\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\nPortfolio segment\n\n  \n\nCurrent\n\n \n\n  \n\n30-89 days\n\npast-due\n\n \n\n  \n\n90 days\n\nor more\npast-due\n\n \n\nClass\n\nConsumer borrowers\n\n  \n\n¥\n\n35\n\n \n\n  \n\n¥\n\n91\n\n \n\n  \n\n¥\n\n    7\n\n \n\nReal estate loans\n\n  \n\n \n\n1\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nOther\n\n  \n\n \n\n34\n\n \n\n  \n\n \n\n91\n\n \n\n  \n\n \n\n7\n\n \n\nCorporate borrowers\n\n  \n\n \n\n6,140\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n284\n\n \n\nNon-recourse loans\n\n  \n\n \n\n1,277\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nThe Americas\n\n  \n\n \n\n1,277\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nOther than non-recourse loans\n\n  \n\n \n\n4,863\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n284\n\n \n\nReal estate companies in Japan\n\n  \n\n \n\n37\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n32\n\n \n\nCommercial, industrial and other companies in Japan\n\n  \n\n \n\n481\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n230\n\n \n\nCommercial, industrial and other companies in overseas\n\n  \n\n \n\n4,345\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n22\n\n \n\nLoans to Equity method investees\n\n  \n\n \n\n4,347\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n¥\n\n10,522\n\n \n\n  \n\n¥\n\n   91\n\n \n\n  \n\n¥\n\n291\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n  \n\nMarch 31, 2025\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\nPortfolio segment\n\n  \n\nCurrent\n\n \n\n  \n\n30-89 days\n\npast-due\n\n \n\n  \n\n90 days\n\nor more\n\npast-due\n\n \n\nClass\n\nConsumer borrowers\n\n  \n¥\n173\n \n  \n¥\n1\n \n  \n¥\n   17\n \n\nOther\n\n  \n \n173\n \n  \n \n1\n \n  \n \n17\n \n\nCorporate borrowers\n\n  \n \n23,857\n \n  \n \n2,141\n \n  \n \n45\n \n\nNon-recourse\nloans\n\n  \n \n0\n \n  \n \n2,141\n \n  \n \n0\n \n\nThe Americas\n\n  \n \n0\n \n  \n \n2,141\n \n  \n \n0\n \n\nOther than\nnon-recourse\nloans\n\n  \n \n23,857\n \n  \n \n0\n \n  \n \n45\n \n\nReal estate companies in Japan\n\n  \n \n1,243\n \n  \n \n0\n \n  \n \n29\n \n\nReal estate companies in overseas\n\n  \n \n1,701\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in Japan\n\n  \n \n623\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in overseas\n\n  \n \n20,290\n \n  \n \n0\n \n  \n \n16\n \n\nLoans to Equity method investees\n\n  \n \n933\n \n  \n \n0\n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n24,963\n \n  \n¥\n2,142\n \n  \n¥\n62\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-8\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMarch 31, 2026\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\nPortfolio segment\n\n  \n\nCurrent\n\n \n\n  \n\n30-89\n\ndays\n\npast-due\n\n \n\n  \n\n90 days\n\nor more\n\npast-due\n\n \n\nClass\n\nConsumer borrowers\n\n  \n¥\n   105\n \n  \n¥\n   0\n \n  \n¥\n   5\n \n\nReal estate loans\n\n  \n \n0\n \n  \n \n0\n \n  \n \n5\n \n\nOther\n\n  \n \n105\n \n  \n \n0\n \n  \n \n0\n \n\nCorporate borrowers\n\n  \n \n12,973\n \n  \n \n0\n \n  \n \n12\n \n\nOther than\nnon-recourse\nloans\n\n  \n \n12,973\n \n  \n \n0\n \n  \n \n12\n \n\nReal estate companies in Japan\n\n  \n \n443\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in Japan\n\n  \n \n404\n \n  \n \n0\n \n  \n \n0\n \n\nCommercial, industrial and other companies in overseas\n\n  \n \n12,126\n \n  \n \n0\n \n  \n \n12\n \n\nNet investment in leases\n\n  \n \n91\n \n  \n \n0\n \n  \n \n12\n \n\nJapan\n\n  \n \n91\n \n  \n \n0\n \n  \n \n0\n \n\nOverseas\n\n  \n \n0\n \n  \n \n0\n \n  \n \n12\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n13,169\n \n  \n¥\n0\n \n  \n¥\n29\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nAs of March 31, 2025 and 2026, 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 ¥79 million and ¥107 million as of March 31, 2025 and 2026, respectively.\n\n \n\n9. Investment in Securities\n\nInvestment in securities as of March 31, 2025 and 2026 consists of the following:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nEquity securities *\n\n  \n¥\n626,910\n \n  \n¥\n782,413\n \n\nAvailable-for-sale\n\ndebt securities\n\n  \n \n2,607,637\n \n  \n \n2,526,416\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n3,234,547\n \n  \n¥\n3,308,829\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nThe amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥132,313 million and ¥137,933 million as of March 31, 2025 and 2026, respectively. The amount of investment funds and others elected the fair value option included in equity securities were ¥24,960 million and ¥24,845 million as of March 31, 2025 and 2026, respectively.\n\nGains 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 22 “Gains on Investment Securities and Dividends” and Note 23 “Income and Expenses Relating to Life Insurance Operations.” Net unrealized holding gains (losses) on equity securities held as of March 31, 2024, 2025 and 2026 were gains of ¥53,318 million, ¥4,422 million and ¥170,073 million for fiscal 2024, 2025 and 2026, respectively, which did not include net unrealized holding gains (losses) on both investment funds and others above mentioned.\n\nEquity securities include\nnon-marketable\nequity 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.\n\nThe following tables provide information about\n\n \n\nF-84\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nimpairment and upward or downward adjustments resulting from observable price changes as of March 31, 2025 and 2026, and for fiscal 2025 and 2026.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n  \n\nFiscal Year ended March 31, 2025\n\n \n\n \n  \n\nCarrying\nvalue\n\n \n  \n\nAccumulated\nimpairments\nand downward\nadjustments\n\n \n \n\nAccumulated\nupward\nadjustments\n\n \n  \n\nImpairments\nand downward\nadjustments\n\n \n \n\nUpward\nadjustments\n\n \n\nEquity securities measured using the measurement alternative\n\n  \n¥\n89,554\n \n  \n¥\n(16,955\n) \n \n¥\n3,643\n \n  \n¥\n(1,438\n) \n \n¥\n1,485\n \n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n  \n\nFiscal Year ended March 31, 2026\n\n \n\n \n  \n\nCarrying\nvalue\n\n \n  \n\nAccumulated\nimpairments\nand downward\nadjustments\n\n \n \n\nAccumulated\nupward\nadjustments\n\n \n  \n\nImpairments\nand downward\nadjustments\n\n \n  \n\nUpward\nadjustments\n\n \n\nEquity securities measured using the measurement alternative\n\n  \n¥\n112,313\n \n  \n¥\n(17,028\n) \n \n¥\n16,071\n \n  \n¥\n(1,789)\n \n  \n¥\n13,276\n \n\nGains 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 were\n\nlosses of ¥96 million during fiscal 2024, respectively. There were no gains or losses recognized on trading debt securities\n\nduring fiscal 2025 and 2026.\n\nDuring fiscal 2024, 2025 and 2026, the Company and its subsidiaries sold\n\navailable-for-sale\n\ndebt securities for aggregate proceeds of ¥215,674 million, ¥299,890 million and ¥\n\n341,135\n\n million, respectively, resulting in gross realized gains of ¥4,137 million, ¥8,499 million and ¥\n\n3,732\n\n million, respectively, and gross realized losses of ¥11,090 million, ¥16,517 million and ¥\n\n7,709 \n\nmillion, respectively. The cost of the\n\navailable-for-sale\n\nsecurities or the debt securities sold was based on the average cost of each issue of securities held at the time of the sale.\n\nCertain subsidiaries elected the fair value option for certain investments in investment funds and others 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, 2025 and 2026, these investments were fair valued at ¥24,960 million and ¥\n\n24,845\n\n million, respectively.\n\nA certain subsidiary elected the fair value option for investments in foreign government bond securities included in\n\navailable-for-sale\n\ndebt 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, 2025 and 2026, these investments were fair valued at ¥5,379 million and ¥\n\n3,024\n\n million, respectively.\n\nA certain subsidiary elected the fair value option for investments in foreign corporate debt securities included in\n\navailable-for-sale\n\ndebt 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, 2025 and 2026, these investments were fair valued at ¥10,679 million and ¥\n\n11,927\n\n million, respectively.\n\n \n\nF-8\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of\n\navailable-for-sale\n\ndebt securities in each major security type as of March 31, 2025 and 2026 are as follows:\n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nAmortized\n\ncost\n\n \n  \n\nAllowance\nfor credit\nlosses\n\n \n \n\nGross\n\nunrealized\n\ngains\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair value\n\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n\n  \n\n \n\n  \n\n \n\nJapanese and foreign government bond securities\n\n  \n¥\n1,520,672\n \n  \n¥\n0\n \n \n¥\n1,325\n \n  \n¥\n(429,471\n) \n \n¥\n1,092,526\n \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n \n439,565\n \n  \n \n(245\n) \n \n \n2,408\n \n  \n \n(34,898\n) \n \n \n406,830\n \n\nCorporate debt securities\n\n  \n \n906,297\n \n  \n \n(34\n) \n \n \n15,246\n \n  \n \n(118,964\n) \n \n \n802,545\n \n\nCMBS and RMBS in the Americas\n\n  \n \n106,578\n \n  \n \n0\n \n \n \n1,053\n \n  \n \n(880\n) \n \n \n106,751\n \n\nOther asset-backed securities and debt securities\n\n  \n \n200,924\n \n  \n \n(391\n) \n \n \n5,438\n \n  \n \n(6,986\n) \n \n \n198,985\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n3,174,036\n \n  \n¥\n(670\n) \n \n¥\n25,470\n \n  \n¥\n(591,199\n) \n \n¥\n2,607,637\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n  \n\n  \n\n \n\n  \n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nAmortized\n\ncost\n\n \n  \n\nAllowance\nfor credit\nlosses\n\n \n \n\nGross\n\nunrealized\n\ngains\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair value\n\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n\n  \n\n \n\n  \n\n \n\nJapanese and foreign government bond securities\n\n  \n¥\n1,651,782\n \n  \n¥\n0\n \n \n¥\n194\n \n  \n¥\n(678,091\n)\n \n¥\n973,885\n \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n \n352,338\n \n  \n \n(798\n)\n \n \n6,025\n \n  \n \n(41,799\n)\n \n \n315,766\n \n\nCorporate debt securities\n\n  \n \n1,110,521\n \n  \n \n(64\n)\n \n \n24,946\n \n  \n \n(177,954\n)\n \n \n957,449\n \n\nCMBS and RMBS in the Americas\n\n  \n \n107,361\n \n  \n \n(1,927\n)\n \n \n555\n \n  \n \n(557\n)\n \n \n105,432\n \n\nOther asset-backed securities and debt securities\n\n  \n \n181,136\n \n  \n \n(716\n)\n \n \n5,534\n \n  \n \n(12,070\n)\n \n \n173,884\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n3,403,138\n \n  \n¥\n(3,505\n)\n \n¥\n37,254\n \n  \n¥\n(910,471\n)\n \n¥\n2,526,416\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-8\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table presents roll-forwards of the allowance for credit losses for fiscal 2024, 2025 and 2026, respectively.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nFiscal Year ended\nMarch 31, 2024\n\n \n\n \n  \n\nForeign municipal bond\nsecurities\n\n \n  \n\nForeign other asset-\nbacked securities and\ndebt securities\n\n \n  \n\nTotal\n\n \n\nBeginning\n\n  \n¥\n144\n \n  \n¥\n   0\n \n  \n¥\n144\n \n\nAdditions to the allowance for credit losses on available-for-sale debt securities for which credit losses were not previously recorded\n\n  \n \n80\n \n  \n \n365\n \n  \n \n445\n \n\nIncrease (Decrease) from the effects of changes in foreign exchange rates\n\n  \n \n24\n \n  \n \n21\n \n  \n \n45\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nEnding\n\n  \n¥\n248\n \n  \n¥\n386\n \n  \n¥\n634\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nFiscal Year ended\nMarch 31, 202\n5\n\n \n\n \n  \n\nForeign municipal bond\nsecurities\n\n \n \n\nForeign corporate\ndebt securities\n\n \n  \n\nForeign other asset-\nbacked securities and\ndebt securities\n\n \n \n\nTotal\n\n \n\nBeginning\n\n  \n¥\n248\n \n \n¥\n0\n \n  \n¥\n386\n \n \n¥\n634\n \n\nAdditions to the allowance for credit losses on\n\navailable-for-sale\n\ndebt securities for which credit losses were not previously recorded\n\n  \n \n0\n \n \n \n34\n \n  \n \n107\n \n \n \n141\n \n\nAdditional increases to the allowance for credit losses on\n\navailable-for-sale\n\ndebt securities that had an allowance recorded in a previous period\n\n  \n \n0\n \n \n \n0\n \n  \n \n32\n \n \n \n32\n \n\nIncrease (Decrease) from the effects of changes in foreign exchange rates\n\n  \n \n(3\n) \n \n \n0\n \n  \n \n(134\n) \n \n \n(137\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding\n\n  \n¥\n245\n \n \n¥\n34\n \n  \n¥\n391\n \n \n¥\n670\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-8\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nFiscal Year ended\nMarch 31, 2026\n\n \n\n \n  \n\nForeign municipal bond\nsecurities\n\n \n  \n\nForeign corporate\ndebt securities\n\n \n \n\nCMBS and\nRMBS in the\nAmericas\n\n \n  \n\nForeign other asset-\nbacked securities and\ndebt securities\n\n \n \n\nTotal\n\n \n\nBeginning\n\n  \n¥\n245\n \n  \n¥\n34\n \n \n¥\n0\n \n  \n¥\n391\n \n \n¥\n670\n \n\nAdditions to the allowance for credit losses on\n\navailable-for-sale\n\ndebt securities for which credit losses were not previously recorded\n\n  \n \n528\n \n  \n \n31\n \n \n \n1,902\n \n  \n \n266\n \n \n \n2,727\n \n\nAdditional increases (decreases) to the allowance for credit losses on AFS debt securities that had an allowance recorded in a previous period, net\n\n  \n \n0\n \n  \n \n(1\n) \n \n \n0\n \n  \n \n(694\n) \n \n \n(695\n) \n\nWrite-offs charged against the allowance\n\n  \n \n0\n \n  \n \n0\n \n \n \n0\n \n  \n \n(40\n) \n \n \n(40\n) \n\nRecoveries of amounts previously written off\n\n  \n \n0\n \n  \n \n0\n \n \n \n0\n \n  \n \n755\n \n \n \n755\n \n\nIncrease (Decrease) from the effects of changes in foreign exchange rates\n\n  \n \n25\n \n  \n \n0\n \n \n \n25\n \n  \n \n38\n \n \n \n88\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding\n\n  \n¥\n   798\n \n  \n¥\n    64\n \n \n¥\n   1,927\n \n  \n¥\n716\n \n \n¥\n3,505\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe following tables provide information about\n\navailable-for-sale\n\ndebt securities with gross unrealized losses (including allowance for credit losses) and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2025 and 2026, respectively:\n\n \n\nF-8\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nLess than 12 months\n\n \n \n\n12 months or more\n\n \n \n\nTotal\n\n \n\n \n  \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n\n  \n\n \n\n  \n\n \n\n  \n\nJapanese and foreign government bond securities\n\n  \n¥\n132,283\n \n  \n¥\n(9,785\n) \n \n¥\n913,742\n \n  \n¥\n(419,686\n) \n \n¥\n1,046,025\n \n  \n¥\n(429,471\n) \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n \n95,936\n \n  \n \n(3,409\n) \n \n \n224,679\n \n  \n \n(31,734\n) \n \n \n320,615\n \n  \n \n(35,143\n) \n\nCorporate debt securities\n\n  \n \n152,094\n \n  \n \n(5,196\n) \n \n \n427,837\n \n  \n \n(113,802\n) \n \n \n579,931\n \n  \n \n(118,998\n) \n\nCMBS and RMBS in the Americas\n\n  \n \n16,940\n \n  \n \n(103\n) \n \n \n15,817\n \n  \n \n(777\n) \n \n \n32,757\n \n  \n \n(880\n) \n\nOther asset-backed securities and debt securities\n\n  \n \n56,671\n \n  \n \n(411\n) \n \n \n35,183\n \n  \n \n(6,966\n) \n \n \n91,854\n \n  \n \n(7,377\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n453,924\n \n  \n¥\n(18,904\n) \n \n¥\n1,617,258\n \n  \n¥\n(572,965\n) \n \n¥\n2,071,182\n \n  \n¥\n(591,869\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nLess than 12 months\n\n \n \n\n12 months or more\n\n \n \n\nTotal\n\n \n\n \n  \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n\n  \n\n \n\n  \n\n \n\n  \n\nJapanese and foreign government bond securities\n\n  \n¥\n69,055\n \n  \n¥\n(11,720\n) \n \n¥\n897,208\n \n  \n¥\n(666,371\n) \n \n¥\n966,263\n \n  \n¥\n(678,091\n) \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n \n76,347\n \n  \n \n(3,270\n) \n \n \n138,277\n \n  \n \n(39,327\n) \n \n \n214,624\n \n  \n \n(42,597\n) \n\nCorporate debt securities\n\n  \n \n128,382\n \n  \n \n(4,467\n) \n \n \n536,002\n \n  \n \n(173,551\n) \n \n \n664,384\n \n  \n \n(178,018\n) \n\nCMBS and RMBS in the Americas\n\n  \n \n38,338\n \n  \n \n(300\n) \n \n \n10,930\n \n  \n \n(2,184\n) \n \n \n49,268\n \n  \n \n(2,484\n) \n\nOther asset-backed securities and debt securities\n\n  \n \n44,823\n \n  \n \n(1,499\n) \n \n \n35,603\n \n  \n \n(11,287\n) \n \n \n80,426\n \n  \n \n(12,786\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n356,945\n \n  \n¥\n(21,256\n) \n \n¥\n1,618,020\n \n  \n¥\n(892,720\n) \n \n¥\n1,974,965\n \n  \n¥\n(913,976\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nF-8\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table provides information about\n\navailable-for-sale\n\ndebt securities with gross unrealized losses for which allowance for credit losses were not recorded and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2025 and 2026, respectively:\n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nLess than 12 months\n\n \n \n\n12 months or more\n\n \n \n\nTotal\n\n \n\n \n  \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n \n       \n \n  \n \n       \n \n \n \n       \n \n  \n \n       \n \n \n \n       \n \n  \n \n       \n \n\nJapanese and foreign government bond securities\n\n  \n¥\n132,283\n \n  \n¥\n(9,785\n) \n \n¥\n913,742\n \n  \n¥\n(419,686\n) \n \n¥\n1,046,025\n \n  \n¥\n(429,471\n) \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n \n94,691\n \n  \n \n(3,325\n) \n \n \n220,950\n \n  \n \n(31,573\n) \n \n \n315,641\n \n  \n \n(34,898\n) \n\nCorporate debt securities\n\n  \n \n149,367\n \n  \n \n(5,128\n) \n \n \n427,837\n \n  \n \n(113,802\n) \n \n \n577,204\n \n  \n \n(118,930\n) \n\nCMBS and RMBS in the Americas\n\n  \n \n16,940\n \n  \n \n(103\n) \n \n \n15,817\n \n  \n \n(777\n) \n \n \n32,757\n \n  \n \n(880\n) \n\nOther asset-backed securities and debt securities\n\n  \n \n56,671\n \n  \n \n(340\n) \n \n \n34,868\n \n  \n \n(6,553\n) \n \n \n91,539\n \n  \n \n(6,893\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n449,952\n \n  \n¥\n(18,681\n) \n \n¥\n1,613,214\n \n  \n¥\n(572,391\n) \n \n¥\n2,063,166\n \n  \n¥\n(591,072\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nLess than 12 months\n\n \n \n\n12 months or more\n\n \n \n\nTotal\n\n \n\n \n  \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n \n\nFair\n\nvalue\n\n \n  \n\nGross\n\nunrealized\n\nlosses\n\n \n\nAvailable-for-sale\n\ndebt securities:\n\n  \n\n  \n\n \n\n  \n\n \n\n  \n\nJapanese and foreign government bond securities\n\n  \n¥\n69,055\n \n  \n¥\n(11,720\n) \n \n¥\n897,208\n \n  \n¥\n(666,371\n) \n \n¥\n966,263\n \n  \n¥\n(678,091\n) \n\nJapanese prefectural and foreign municipal bond securities\n\n  \n \n75,944\n \n  \n \n(2,735\n) \n \n \n133,042\n \n  \n \n(39,064\n) \n \n \n208,986\n \n  \n \n(41,799\n) \n\nCorporate debt securities\n\n  \n \n122,570\n \n  \n \n(4,347\n) \n \n \n536,002\n \n  \n \n(173,551\n) \n \n \n658,572\n \n  \n \n(177,898\n) \n\nCMBS and RMBS in the Americas\n\n  \n \n38,338\n \n  \n \n(300\n) \n \n \n10,930\n \n  \n \n(257\n) \n \n \n49,268\n \n  \n \n(557\n) \n\nOther asset-backed securities and debt securities\n\n  \n \n44,796\n \n  \n \n(1,319\n) \n \n \n34,484\n \n  \n \n(10,583\n) \n \n \n79,280\n \n  \n \n(11,902\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n350,703\n \n  \n¥\n(20,421\n) \n \n¥\n1,611,666\n \n  \n¥\n(889,826\n) \n \n¥\n1,962,369\n \n  \n¥\n(910,247\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe number of investment securities that were in an unrealized loss position as of March 31, 2025 and 2026 were 1,272 and\n\n1,113\n\n, 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\n\ntrends.\n\n \n\nF-\n90\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAs of March 31, 2025 and 2026, the amount of accrued interest on\n\navailable-for-sale\n\ndebt securities were ¥14,545 million and ¥\n\n14,697\n\n million, respectively, which was included in other assets. The Company and its subsidiaries estimate credit losses and develop an allowance for credit losses for accrued interest receivables. There was no allowance for credit losses for accrued interest receivables as of March 31, 2025 and 2026.\n\nFor\n\navailable-for-sale\n\ndebt securities, if the fair value is less than the amortized cost, the debt securities are impaired. The Company and its subsidiaries identify per each impaired security whether the decline of fair value is due to credit losses component or\nnon-credit\nlosses component. Impairment related to credit losses is recognized in earning through an allowance for credit losses. Impairment related to other factors than credit losses is recognized in other comprehensive income (loss), net of applicable income taxes. In estimating an allowance of credit losses, the Company and its subsidiaries consider the existence of credit losses if the present value of estimated cash flows is less than the amortized cost basis. When the Company and its subsidiaries intend to sell the debt securities for which an allowance for credit losses is previously established or it is more likely than not that the Company and its subsidiaries will be required to sell the debt securities before recovery of the amortized cost basis, the allowance for credit losses is fully\nwritten-off\nand the amortized cost is reduced to the fair value after recognizing additional impairment in earnings. In addition, the Company and its subsidiaries recognize in earnings the full difference between the amortized cost and the fair value of the debt securities by direct write-down, without any allowance for credit losses, if the debt securities are expected to be sold and the fair value is less than the amortized cost.\n\nCredit losses related to\n\navailable-for-sale\n\ndebt securities recognized for fiscal 2024 resulted from the respective deterioration of cash flows relating to foreign municipal bond securities and foreign other asset-backed securities and debt securities, as of March 31, 2024. Credit losses related to\n\navailable-for-sale\n\ndebt securities recognized for fiscal 2025 resulted from the respective deterioration of the issuers’ credit conditions and cash flows relating to foreign corporate debt securities and foreign other asset-backed securities and debt securities, as of March 31, 2025. Credit losses related to available-for-sale debt securities recognized for fiscal 2026 resulted from the respective deterioration of the issuers’ credit conditions and cash flows relating to foreign municipal bond securities, foreign corporate debt securities, CMBS and RMBS in the Americas and foreign other asset-backed securities and debt securities, as of March 31, 2026. The evaluation of credit losses with\n\navailable-for-sale\n\ndebt securities is compared to the amortized cost of debt securities with the present value of cash flows estimated based on a number of overall conditions, including estimated fair value of the underlying receivables and the repayment priority of the securities. Because 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, the Company and its subsidiaries recognized the allowance for credit losses.\n\nUnrealized losses on\n\navailable-for-sale\n\ndebt securities mainly result from changes in market interest rates and foreign exchange rates, and changes in risk premiums. In order to evaluate the recoverability of the\n\navailable-for-sale\n\ndebt securities, the Company and its subsidiaries utilize all available information such as an issuer’s financial condition and business outlook. The fair value of Japanese and foreign government bond securities, Japanese prefectural and foreign municipal bond, and corporate debt securities is mainly estimated based on prices for similar assets. If there are no prices for similar assets available, the fair value of these securities is estimated by using discounted cash flow methodologies and broker quotes. The fair value of CMBS and RMBS in the Americas and other asset-backed securities and debt securities refers to prices from independent pricing service vendors and brokers, such as trading prices and bit prices. If the Company and its subsidiaries cannot rely on such prices, the fair value is calculated by using discounted cash flow methodologies and broker quotes. In discounted cash flow methodologies, future cash flows estimated based on a number of assumptions such as default rate, prepayment rate, and seniority are discounted by discount rate adjusted for credit risk and liquidity risk.\n\n \n\nF-\n91\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following is a summary of the contractual maturities of\n\navailable-for-sale\n\ndebt securities as of March 31,\n2026\n:\n\nAvailable-for-sale\n\ndebt securities held as of March 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nAmortized\n\ncost\n\n \n  \n\nFair value\n\n \n\nDue within one year\n\n  \n¥\n  55,891\n \n  \n¥\n  57,667\n \n\nDue after one to five years\n\n  \n \n418,096\n \n  \n \n402,973\n \n\nDue after five to ten years\n\n  \n \n337,992\n \n  \n \n343,359\n \n\nDue after ten years\n\n  \n \n2,591,159\n \n  \n \n1,722,417\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n3,403,138\n \n  \n¥\n2,526,416\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nDebt securities not due at a single maturity date, such as mortgage-backed securities, are included in the above table based on their final maturities.\n\nCertain borrowers may have the right to call or prepay obligations. This right may cause actual maturities to differ from the contractual maturities summarized above.\n\nIncluded in finance revenues in the consolidated statements of income is interest income on investment securities of ¥26,331 million, ¥29,140 million and ¥\n\n37,814\n\n million for fiscal 2024, 2025 and 2026, respectively.\n\nThere were no\n\navailable-for-sale\n\ndebt securities accounted for as purchased credit deterioration financial assets acquired during fiscal 2025 and 2026.\n\n \n\n10. Transfer of Financial Assets\n\nThe Company and its subsidiaries have securitized and transferred financial assets such as installment loans (commercial mortgage loans, housing loans and other).\n\nIn 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.\n\nThe 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\n\n \n\nF-\n92\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\ndistributed 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.\n\nWhen 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.\n\nDuring fiscal 2024, 2025 and 2026, the amount of installment loans that has been derecognized due to new securitization and transfer of loans were ¥795,328 million, ¥782,613 million and ¥1,048,527 million, respectively. For fiscal 2024, 2025 and 2026, gains (losses) from the securitization and transfer of loans were ¥14,622 million, ¥17,057 million and ¥20,026 million, respectively, which is included in finance revenues in the consolidated statements of income.\n\nA 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 during fiscal 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nBeginning balance\n\n  \n¥\n79,723\n \n \n¥\n76,456\n \n\nIncrease mainly from loans sold with servicing retained\n\n  \n \n8,485\n \n \n \n12,149\n \n\nDecrease mainly from amortization\n\n  \n \n(10,829\n) \n \n \n(11,514\n) \n\nIncrease (Decrease) from the effects of changes in foreign exchange rates\n\n  \n \n(923\n) \n \n \n5,335\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n  \n¥\n76,456\n \n \n¥\n82,426\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nThe fair value of the servicing assets as of March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n  \n\nMarch 31, 2026\n\n \n\nBeginning balance\n\n  \n¥\n122,641\n \n  \n¥\n116,745\n \n\nEnding balance\n\n  \n¥\n116,745\n \n  \n¥\n127,593\n \n\n11. Variable Interest Entities\n\nThe Company and its subsidiaries use SPEs in the ordinary course of business.\n\nThese 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.\n\n \n\nF-9\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe 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:\n\n \n\n \n\n•\n\n \n\nthe power to direct the activities of a VIE that most significantly impact the entity’s economic performance; and\n\n \n\n \n\n•\n\n \n\nthe 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.\n\nAll 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.\n\nThe following are the factors that the Company and its subsidiaries are considering in a qualitative assessment:\n\n \n\n \n\n•\n\n \n\nwhich activities most significantly impact the economic performance of the VIE and who has the power to direct such activities;\n\n \n\n \n\n•\n\n \n\ncharacteristics of the Company and its subsidiaries’ variable interest or interests and other involvements (including involvement of related parties and de facto agents);\n\n \n\n \n\n•\n\n \n\ninvolvement of other variable interest holders; and\n\n \n\n \n\n•\n\n \n\nthe entity’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders.\n\nThe Company and its subsidiaries generally consider the following types of involvement to be significant when determining the primary beneficiary:\n\n \n\n \n\n•\n\n \n\ndesigning the structuring of a transaction;\n\n \n\n \n\n•\n\n \n\nproviding an equity investment and debt financing;\n\n \n\n \n\n•\n\n \n\nbeing the investment manager, asset manager or servicer and receiving variable fees; and\n\n \n\n \n\n•\n\n \n\nproviding liquidity and other financial support.\n\nThe 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.\n\n \n\nF-9\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nInformation about VIEs (consolidated and\nnon-consolidated)\nfor the Company and its subsidiaries are as follows:\n\n \n\n1.\n\nConsolidated VIEs\n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of yen\n\n \n\nTypes of VIEs\n\n  \n\nTotal\n\nassets*1\n\n \n  \n\nTotal\n\nliabilities*1\n\n \n  \n\nAssets which\n\nare pledged as\n\ncollateral*2\n\n \n  \n\nCommitments*3\n\n \n\n(a)   VIEs for acquisition of real estate and real estate development projects for customers\n\n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n0\n \n\n(b)   VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business\n\n  \n \n51,025\n \n  \n \n10,956\n \n  \n \n16,769\n \n  \n \n0\n \n\n(c)   VIEs for corporate rehabilitation support business\n\n  \n \n5,069\n \n  \n \n8\n \n  \n \n0\n \n  \n \n0\n \n\n(d)   VIEs for investment in securities\n\n  \n \n225,040\n \n  \n \n111\n \n  \n \n0\n \n  \n \n85,069\n \n\n(e)   VIEs for securitizing financial assets such as finance lease receivable and loan receivable\n\n  \n \n85,765\n \n  \n \n66,914\n \n  \n \n85,765\n \n  \n \n0\n \n\n(f) VIEs for securitization of loan receivable originated by third parties\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(g)   VIEs for power generation projects\n\n  \n \n112,360\n \n  \n \n76,429\n \n  \n \n105,499\n \n  \n \n56,959\n \n\n(h)   Other VIEs\n\n  \n \n146,801\n \n  \n \n65,311\n \n  \n \n135,064\n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n626,060\n \n  \n¥\n219,729\n \n  \n¥\n343,097\n \n  \n¥\n142,028\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n\nTypes of VIEs\n\n  \n\nTotal\n\nassets*1\n\n \n  \n\nTotal\n\nliabilities*1\n\n \n  \n\nAssets which\n\nare pledged as\n\ncollateral*2\n\n \n  \n\nCommitments*3\n\n \n\n(a)   VIEs for acquisition of real estate and real estate development projects for customers\n\n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n0\n \n\n(b)   VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business\n\n  \n \n33,144\n \n  \n \n3,131\n \n  \n \n0\n \n  \n \n0\n \n\n(c)   VIEs for corporate rehabilitation support business\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(d)   VIEs for investment in securities\n\n  \n \n325,307\n \n  \n \n363\n \n  \n \n0\n \n  \n \n326,644\n \n\n(e)   VIEs for securitizing financial assets such as finance lease receivable and loan receivable\n\n  \n \n46,018\n \n  \n \n33,286\n \n  \n \n46,018\n \n  \n \n0\n \n\n(f) VIEs for securitization of loan receivable originated by third parties\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(g)   VIEs for power generation projects\n\n  \n \n121,050\n \n  \n \n68,964\n \n  \n \n98,895\n \n  \n \n38,020\n \n\n(h)   Other VIEs\n\n  \n \n122,893\n \n  \n \n56,857\n \n  \n \n90,833\n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n648,412\n \n  \n¥\n162,601\n \n  \n¥\n235,746\n \n  \n¥\n364,664\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*1\n\nThe 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.\n\n*2\n\nThe assets are pledged as collateral by VIE for financing of the VIE.\n\n*3\n\nThis item represents remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE.\n\n \n\nF-9\n5\n​​​​​​\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n2.\n\nNon-consolidated\nVIEs\n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n \n \n  \n\nCarrying amount of the\nvariable interests in the\n\nVIEs held by the Company\n\nand its subsidiaries\n\n \n  \n \n \n\nTypes of VIEs\n\n  \n\nTotal assets\n\n \n  \n\nNon-recourse\n\nloans\n\n \n  \n\nInvestments\n\n \n  \n\nMaximum\n\nexposure\n\nto loss *\n\n \n\n(a)   VIEs for acquisition of real estate and real estate development projects for customers\n\n  \n¥\n1,859,420\n \n  \n¥\n132,495\n \n  \n¥\n11,224\n \n  \n¥\n149,602\n \n\n(b)   VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(c)   VIEs for corporate rehabilitation support business\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(d)   VIEs for investment in securities\n\n  \n \n32,105,994\n \n  \n \n0\n \n  \n \n272,927\n \n  \n \n375,942\n \n\n(e)   VIEs for securitizing financial assets such as finance lease receivable and loan receivable\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(f) VIEs for securitization of loan receivable originated by third parties\n\n  \n \n760,293\n \n  \n \n0\n \n  \n \n16,437\n \n  \n \n16,437\n \n\n(g)   VIEs for power generation projects\n\n  \n \n19,499\n \n  \n \n0\n \n  \n \n3,945\n \n  \n \n5,195\n \n\n(h)   Other VIEs\n\n  \n \n2,914,618\n \n  \n \n3,732\n \n  \n \n51,661\n \n  \n \n75,479\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n37,659,824\n \n  \n¥\n136,227\n \n  \n¥\n356,194\n \n  \n¥\n622,655\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n \n \n  \n\nCarrying amount of the\nvariable interests in the\n\nVIEs held by the Company\nand its subsidiaries\n\n \n  \n \n \n\nTypes of VIEs\n\n  \n\nTotal assets\n\n \n  \n\nNon-recourse\n\nloans\n\n \n  \n\nInvestments\n\n \n  \n\nMaximum\n\nexposure\n\nto loss *\n\n \n\n(a)   VIEs for acquisition of real estate and real estate development projects for customers\n\n  \n¥\n2,402,850\n \n  \n¥\n193,594\n \n  \n¥\n13,854\n \n  \n¥\n224,253\n \n\n(b)   VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(c)   VIEs for corporate rehabilitation support business\n\n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\n(d)   VIEs for investment in securities\n\n  \n \n44,644,882\n \n  \n \n0\n \n  \n \n384,074\n \n  \n \n503,326\n \n\n(e)   VIEs for securitizing financial assets such as finance lease receivable and loan receivable\n\n  \n \n5,038\n \n  \n \n0\n \n  \n \n2,859\n \n  \n \n2,859\n \n\n(f) VIEs for securitization of loan receivable originated by third parties\n\n  \n \n651,109\n \n  \n \n0\n \n  \n \n16,876\n \n  \n \n16,876\n \n\n(g)   VIEs for power generation projects\n\n  \n \n24,427\n \n  \n \n0\n \n  \n \n5,076\n \n  \n \n5,076\n \n\n(h)   Other VIEs\n\n  \n \n4,143,697\n \n  \n \n0\n \n  \n \n50,534\n \n  \n \n70,586\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n51,872,003\n \n  \n¥\n193,594\n \n  \n¥\n473,273\n \n  \n¥\n822,976\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nMaximum exposure to loss includes remaining balance of commitments that could require the Company and its subsidiaries to provide investments or loans to the VIE.\n\n \n\nF-9\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n(a) VIEs for acquisition of real estate and real estate development projects for customers\n\nCustomers 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.\n\nWith respect to variable interests of\nnon-consolidated\nVIEs held by the Company and its subsidiaries,\nnon-recourse\nloans are included in installment loans, and investments are mainly included in investment in securities, equity method investments 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. Certain subsidiaries have commitment agreements by which the Company and its subsidiaries may be required to make additional investment in certain such\nnon-consolidated\nVIEs.\n\n(b) VIEs for acquisition of real estate for the Company and its subsidiaries’ real estate-related business\n\nThe Company and its subsidiaries establish VIEs and acquire real estate to borrow\nnon-recourse\nloans from financial institutions and simplify the administration activities necessary for the real estate.\n\nThe 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.\n\nIn 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.\n\n(c) VIEs for corporate rehabilitation support business\n\nFinancial 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.\n\nThe 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.\n\nIn 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.\n\n(d) VIEs for investment in securities\n\nThe 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.\n\n \n\nF-97\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nCertain subsidiaries consolidated certain such VIEs since the subsidiaries have the majority of the investment share of them, and have 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.\n\nIn the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in investment in securities, and liabilities of those consolidated VIEs are mainly included in trade notes, accounts and other payable 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.\n\nVariable interests of\nnon-consolidated\nVIEs, which the Company and its subsidiaries have, are included in investment in securities and equity method investments 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\nnon-consolidated\nVIEs.\n\n(e) VIEs for securitizing financial assets such as finance lease receivable and loan receivable\n\nThe Company and its subsidiaries use VIEs to securitize financial assets such as loan 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.\n\nThe 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.\n\nIn 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.\n\nVariable interests of non-consolidated VIEs, which the Company has, are included in installment loans in the Company’s consolidated balance sheets.\n\n(f) VIEs for securitization of loan receivable originated by third parties\n\nThe 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.\n\nVariable interests of\nnon-consolidated\nVIEs, which the Company and its subsidiaries have, are included in investment in securities in the Company’s consolidated balance sheets.\n\n(g) VIEs for power generation projects\n\nThe 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 on acquired or leased lands, and sell the generated\n\n \n\nF-98\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\npower 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.\n\nIn 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 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.\n\nVariable interests of\nnon-consolidated\nVIEs, which the Company has, are included in equity method investments in the Company’s consolidated balance sheets. The Company has commitment agreements by which the Company may be required to make additional investment in certain such\nnon-consolidated\nVIEs.\n\n(h) Other VIEs\n\nThe Company and its subsidiaries are involved with other types of VIEs for various purposes. Consolidated and\nnon-consolidated\nVIEs of this category are mainly kumiai structures. In addition, certain subsidiaries have consolidated VIEs that are not included in the categories (a) through (g) above, because the subsidiaries hold the subordinated portion of the VIEs and the VIEs are effectively controlled by the subsidiaries.\n\nIn 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 SPEs. As a way 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\nnon-recourse\nloan 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 SPEs, 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 SPEs.\n\nThe Company may use VIEs for financing. The Company transfers its own held assets to SPEs, which borrow\nnon-recourse\nloan 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.\n\nIn the Company’s consolidated balance sheets, assets of the consolidated VIEs are mainly included in investment in operating leases, equity method investments and office facilities, and liabilities of those consolidated VIEs are mainly included in long-term debt and other liabilities.\n\n \n\nF-\n\n99\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nWith respect to variable interests of\nnon-consolidated\nVIEs held by the Company and its subsidiaries,\nnon-recourse\nloans are included in installment loans, and investments are mainly included in investment in securities and equity method investments 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\nnon-consolidated\nVIEs.\n\n12. Equity method investments\n\nEquity method investments at March 31, 2025 and 2026 consists of the following:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nInvestment in corporate entities\n\n  \n¥\n973,795\n \n  \n¥\n868,090\n \n\nInvestment in real estate joint ventures\n\n  \n \n137,274\n \n  \n \n127,528\n \n\nInvestment in partnerships and other investments\n\n  \n \n208,946\n \n  \n \n310,694\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n1,320,015\n \n  \n¥\n1,306,312\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCertain equity method investees are listed on stock exchanges. The aggregate investment in and quoted market value of those equity method investees amounted to ¥107,524 million and ¥107,466 million, respectively, as of March 31, 2025 and ¥\n\n110,714\n\n million and ¥\n\n112,537\n\n million, respectively, as of March 31, 2026.\n\nIn fiscal 2024, 2025 and 2026, the Company and its subsidiaries received dividends from equity method investees of ¥25,820 million, ¥30,151 million and ¥\n\n55,535\n\n million, respectively.\n\nIn the Company’s consolidated balance sheets, the book value of equity method investments over the underlying equity in the net assets of such equity method investees as of date of the most recent available financial statements of the investees were ¥127,779 million and ¥\n\n42,600\n\n million as of March 31, 2025 and 2026, respectively. The basis differences mainly consist of goodwill and fair value adjustments for fixed assets. The basis differences would be amortized and adjusted for impairment, if any, and the changes in the differences are included in equity in net income (loss) of equity method\n\ninvestments.\n\nCompanies comprising a significant portion of investment in corporate entities were Kansai Airports\n\n (40% of equity share), DOCOMO Finance, Inc. (34% of equity share) and Avolon Holdings Limited (30% of equity share) as of March 31, 2025 and 2026.\n\nSummarized financial information relating to the equity method investees for fiscal 2024, 2025 and 2026 is as follows (some operation data for entities reflect only the period since the Company and its subsidiaries made the investment and on a lag basis):\n\nIn fiscal 2026, TB Investment Limited Partnership (the “Partnership”, 20% of equity share) represents a significant portion of the Company’ equity method investments. Accordingly, the Partnership is presented separately from all other equity method investees. The Company applies a three-month reporting lag in recognizing its share of the results of the Partnership. Accordingly, the summarized financial information for fiscal 2026 is presented as of December 31, 2025.\n\n \n\nF-\n100\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nSummarized financial information relating to TB Investment Limited Partnership\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n \n\n2025\n\n \n\n  \n\n2026\n\n \n\nOperations:\n\n  \n\n \n\n  \n\nTotal revenues\n\n  \n\n¥\n\n759,042\n\n \n\n \n\n¥\n\n3,506,193\n\n \n\n  \n\n¥\n\n3,558,900\n\n \n\nIncome before income taxes\n\n  \n\n \n\n(76,343\n\n) \n\n \n\n \n\n174,744\n\n \n\n  \n\n \n\n613,324\n\n \n\nNet income\n\n  \n\n \n\n(70,020\n\n) \n\n \n\n \n\n76,819\n\n \n\n  \n\n \n\n340,103\n\n \n\nFinancial position:\n\n  \n\n \n\n  \n\nTotal assets\n\n  \n\n¥\n\n4,429,618\n\n \n\n \n\n¥\n\n4,694,585\n\n \n\n  \n\n¥\n\n4,839,652\n\n \n\nTotal liabilities\n\n  \n\n \n\n3,157,087\n\n \n\n \n\n \n\n3,652,131\n\n \n\n  \n\n \n\n3,331,150\n\n \n\nTotal equity\n\n  \n\n \n\n1,272,531\n\n \n\n \n\n \n\n1,042,454\n\n \n\n  \n\n \n\n1,508,502\n\n \n\n \n\nSummarized financial information relating to all other equity method investees\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nOperations:\n\n  \n\n  \n\n  \n\nTotal revenues\n\n  \n¥\n2,112,692\n \n  \n¥\n2,293,309\n \n  \n¥\n2,215,250\n \n\nIncome before income taxes\n\n  \n \n343,309\n \n  \n \n432,759\n \n  \n \n743,907\n \n\nNet income\n\n  \n \n268,026\n \n  \n \n343,938\n \n  \n \n674,849\n \n\nFinancial position:\n\n  \n\n  \n\n  \n\nTotal assets\n\n  \n¥\n22,259,744\n \n  \n¥\n23,580,665\n \n  \n¥\n22,236,185\n \n\nTotal liabilities\n\n  \n \n14,021,875\n \n  \n \n15,209,476\n \n  \n \n13,678,221\n \n\nTotal equity\n\n  \n \n8,237,869\n \n  \n \n8,371,189\n \n  \n \n8,557,964\n \n\nFor information about significant transactions between the Company and its subsidiaries, and equity method investees except as described above, see Note 7 “Installment Loans” and Note 31 “Commitments, Guarantees and Contingent Liabilities.”\n\n \n\nF-\n\n101\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n13. Goodwill and Other Intangible Assets\n\nChanges in goodwill by reportable segment for fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nCorporate\n\nFinancial\n\nServices and\n\nMaintenance\n\nLeasing\n\n \n \n\nReal\nEstate\n\n \n \n\nPE\n\nInvestment\n\nand\n\nConcession\n\n \n \n\nEnvironment\n\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking\nand\n\nCredit\n\n \n\nBalance at March 31, 2023\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n¥\n15,954\n \n \n¥\n16,359\n \n \n¥\n206,751\n \n \n¥\n58,207\n \n \n¥\n5,015\n \n \n¥\n10,971\n \n\nAccumulated impairment losses\n\n  \n \n(849\n) \n \n \n(191\n) \n \n \n0\n \n \n \n(39\n) \n \n \n(371\n) \n \n \n0\n \n\n  \n \n15,105\n \n \n \n16,168\n \n \n \n206,751\n \n \n \n58,168\n \n \n \n4,644\n \n \n \n10,971\n \n\nAcquired\n\n  \n \n0\n \n \n \n0\n \n \n \n4,241\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nImpairment\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther (net) *\n\n  \n \n(54\n) \n \n \n0\n \n \n \n(35,556\n) \n \n \n6,840\n \n \n \n(192\n) \n \n \n(10,971\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2024\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n \n15,900\n \n \n \n16,359\n \n \n \n175,436\n \n \n \n65,047\n \n \n \n4,823\n \n \n \n0\n \n\nAccumulated impairment losses\n\n  \n \n(849\n) \n \n \n(191\n) \n \n \n0\n \n \n \n(39\n) \n \n \n(371\n) \n \n \n0\n \n\n  \n \n15,051\n \n \n \n16,168\n \n \n \n175,436\n \n \n \n65,008\n \n \n \n4,452\n \n \n \n0\n \n\nAcquired\n\n  \n \n31\n \n \n \n0\n \n \n \n7,849\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nImpairment\n\n  \n \n0\n \n \n \n0\n \n \n \n(5,520\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther (net) *\n\n  \n \n(1,699\n) \n \n \n0\n \n \n \n(10,623\n) \n \n \n3,220\n \n \n \n0\n \n \n \n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2025\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n \n13,682\n \n \n \n16,359\n \n \n \n172,662\n \n \n \n68,267\n \n \n \n4,452\n \n \n \n0\n \n\nAccumulated impairment losses\n\n  \n \n(299\n) \n \n \n(191\n) \n \n \n(5,520\n) \n \n \n(39\n) \n \n \n0\n \n \n \n0\n \n\n  \n \n13,383\n \n \n \n16,168\n \n \n \n167,142\n \n \n \n68,228\n \n \n \n4,452\n \n \n \n0\n \n\nAcquired\n\n  \n \n0\n \n \n \n0\n \n \n \n15,487\n \n \n \n185\n \n \n \n0\n \n \n \n0\n \n\nImpairment\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther (net) *\n\n  \n \n(168\n) \n \n \n0\n \n \n \n313\n \n \n \n8,014\n \n \n \n0\n \n \n \n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2026\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n \n13,502\n \n \n \n16,359\n \n \n \n188,462\n \n \n \n76,466\n \n \n \n4,452\n \n \n \n0\n \n\nAccumulated impairment losses\n\n  \n \n(287\n) \n \n \n(191\n) \n \n \n(5,520\n) \n \n \n(39\n) \n \n \n0\n \n \n \n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n13,215\n \n \n¥\n16,168\n \n \n¥\n182,942\n \n \n¥\n76,427\n \n \n¥\n4,452\n \n \n¥\n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n\n102\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nAircraft and\n\nShips\n\n \n \n\nORIX USA\n\n \n \n\nORIX Europe\n\n \n \n\nAsia and\n\nAustralia\n\n \n \n\nCorporate\n\n \n \n\nTotal\n\n \n\nBalance at March 31, 2023\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n¥\n587\n \n \n¥\n153,076\n \n \n¥\n158,588\n \n \n¥\n8,213\n \n \n¥\n278\n \n \n¥\n633,999\n \n\nAccumulated impairment losses\n\n  \n \n(587\n) \n \n \n(1,494\n) \n \n \n0\n \n \n \n(2,785\n) \n \n \n0\n \n \n \n(6,316\n) \n\n  \n \n0\n \n \n \n151,582\n \n \n \n158,588\n \n \n \n5,428\n \n \n \n278\n \n \n \n627,683\n \n\nAcquired\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n4,241\n \n\nImpairment\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther (net) *\n\n  \n \n0\n \n \n \n20,298\n \n \n \n18,927\n \n \n \n554\n \n \n \n0\n \n \n \n(154\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2024\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n \n587\n \n \n \n173,374\n \n \n \n177,515\n \n \n \n8,767\n \n \n \n278\n \n \n \n638,086\n \n\nAccumulated impairment losses\n\n  \n \n(587\n) \n \n \n(1,494\n) \n \n \n0\n \n \n \n(2,785\n) \n \n \n0\n \n \n \n(6,316\n) \n\n  \n \n0\n \n \n \n171,880\n \n \n \n177,515\n \n \n \n5,982\n \n \n \n278\n \n \n \n631,770\n \n\nAcquired\n\n  \n \n1,201\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n9,081\n \n\nImpairment\n\n  \n \n0\n \n \n \n(1,175\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n(6,695\n) \n\nOther (net) *\n\n  \n \n0\n \n \n \n(2,146\n) \n \n \n(907\n) \n \n \n(143\n) \n \n \n0\n \n \n \n(12,298\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2025\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n \n1,788\n \n \n \n169,734\n \n \n \n176,608\n \n \n \n8,624\n \n \n \n278\n \n \n \n632,454\n \n\nAccumulated impairment losses\n\n  \n \n(587\n) \n \n \n(1,175\n) \n \n \n0\n \n \n \n(2,785\n) \n \n \n0\n \n \n \n(10,596\n) \n\n  \n \n1,201\n \n \n \n168,559\n \n \n \n176,608\n \n \n \n5,839\n \n \n \n278\n \n \n \n621,858\n \n\nAcquired\n\n  \n \n0\n \n \n \n135,302\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n150,974\n \n\nImpairment\n\n  \n \n0\n \n \n \n(52,738\n) \n \n \n0\n \n \n \n0\n \n \n \n(278\n) \n \n \n(53,016\n) \n\nOther (net) *\n\n  \n \n326\n \n \n \n22,517\n \n \n \n22,499\n \n \n \n275\n \n \n \n0\n \n \n \n53,776\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2026\n\n  \n\n \n\n \n\n \n\n \n\n \n\nGoodwill\n\n  \n \n1,527\n \n \n \n326,378\n \n \n \n199,107\n \n \n \n8,899\n \n \n \n278\n \n \n \n835,430\n \n\nAccumulated impairment losses\n\n  \n \n0\n \n \n \n(52,738\n) \n \n \n0\n \n \n \n(2,785\n) \n \n \n(278\n) \n \n \n(61,838\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n1,527\n \n \n¥\n273,640\n \n \n¥\n199,107\n \n \n¥\n6,114\n \n \n¥\n0\n \n \n¥\n773,592\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*\n\nOther (net) includes foreign currency translation adjustments, decreases due to sale of ownership interest in subsidiaries and certain other reclassifications.\n\nAs a result of the impairment test, the Company and its subsidiaries recognized no impairment losses on goodwill during fiscal 2024. The Company and its subsidiaries recognized impairment losses on goodwill of ¥5,520 million in PE Investment and Concession segment, and ¥1,175 million in ORIX USA segment during fiscal 2025. The Company and its subsidiaries recognized impairment losses on goodwill of \\52,738 million in ORIX USA segment, and \\278 million in Corporate segment during fiscal 2026. These impairment losses are accounted in other (income) and expense. The fair values of these reporting units were measured using mainly discounted cash flow methodologies and business enterprise value multiples methodologies.\n\n \n\nF-10\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nOther intangible assets at March 31, 2025 and 2026 consist of the following:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nIndefinite-lived intangible assets:\n\n  \n\n \n\nTrademarks and trade names\n\n  \n¥\n124,924\n \n \n¥\n127,921\n \n\nAsset management contracts\n\n  \n \n55,740\n \n \n \n62,909\n \n\nOthers\n\n  \n \n11,657\n \n \n \n19,582\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n192,321\n \n \n \n210,412\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIntangible assets subject to amortization:\n\n  \n\n \n\nSoftware\n\n  \n \n150,479\n \n \n \n169,220\n \n\nCustomer relationships\n\n  \n \n186,862\n \n \n \n219,299\n \n\nAsset management contracts\n\n  \n \n119,157\n \n \n \n134,543\n \n\nOthers\n\n  \n \n152,925\n \n \n \n157,533\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n609,423\n \n \n \n680,595\n \n\nAccumulated amortization\n\n  \n \n(276,333\n) \n \n \n(314,941\n)\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet\n\n  \n \n333,090\n \n \n \n365,654\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n525,411\n \n \n¥\n576,066\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe aggregate amortization expenses for intangible assets are ¥39,213 million, ¥41,402 million and ¥\n\n41,402\n\n million in fiscal 2024, 2025 and 2026, respectively.\n\nThe estimated amortization expenses for each of five succeeding fiscal years are ¥45,089 million in fiscal 2027, ¥42,282 million in fiscal 2028, ¥39,024 million in fiscal 2029, ¥34,053 million in fiscal 2030 and ¥29,820 million in fiscal 2031, respectively.\n\nIntangible assets subject to amortization increased during fiscal 2026 are ¥\n\n104,248\n\n million. They mainly consist of ¥\n\n22,397\n\n million of software, ¥\n\n24,031\n\n million of customer relationships and ¥\n\n45,738\n\n million of maintenance intangible assets for acquired aircraft recognized in acquisitions included in others. The weighted average amortization periods for the software, customer relationships and maintenance intangible assets for acquired aircraft recognized in acquisitions are 5 years, 10 years and 6 years, respectively.\n\nAs a result of the impairment test, the Company and its subsidiaries recognized impairment losses of ¥24 million on intangible assets included in PE Investment and Concession segment, ¥87 million on intangible assets included in Environment and Energy segment, and ¥37 million on intangible assets included in Asia and Australia segment during fiscal 2024, and these impairment losses were included in selling, general and administrative expenses in the consolidated statements of income. The Company and its subsidiaries recognized impairment losses of ¥5,629 million on intangible assets included in PE Investment and Concession segment, ¥1,971 million on intangible assets included in ORIX Europe segment during fiscal 2025, and these impairment losses were included in other (income) and expenses in the consolidated statements of income, and recognized impairment losses of ¥148 million on intangible assets included in PE Investment and Concession segment, and ¥84 million on intangible assets included in Banking and Credit segment during fiscal 2025, and these impairment losses were included in\nselling, general and administrative expenses\nin the consolidated statements of income. The Company and its subsidiaries recognized impairment losses of ¥\n\n1,092\n\n million on intangible assets included in PE Investment and Concession segment, ¥\n\n3,614\n\n \n\nmillion on intangible assets included in Environment and Energy segment during fiscal 2026, and these impairment losses were included in other (income) and expenses in the\n\n \n\nF-10\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nconsolidated statements of income. These impairment losses are recognized due to the reduction in the estimated future cash flow, which brought the fair values of the intangible assets below their carrying amount. The fair values of these intangible assets were measured using mainly excess multi-period earnings methodologies.\n\n14. Short-Term and Long-Term Debt\n\nShort-term debt consists of borrowings from financial institutions, commercial paper and others.\n\nThe composition of short-term debt and the weighted average contract interest rate on short-term debt at March 31, 2025 and 2026 are as follows:\n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of yen\n\n \n  \n\nWeighted\n\naverage rate\n\n \n\nShort-term debt in Japan, mainly from banks\n\n  \n¥\n181,835\n \n  \n \n0.7\n% \n\nShort-term debt outside Japan, mainly from banks\n\n  \n \n279,631\n \n  \n \n5.5\n \n\nCommercial paper outside Japan\n\n  \n \n7,588\n \n  \n \n2.9\n \n\nSecured borrowings on securities lending transactions\n\n  \n \n80,626\n \n  \n \n2.3\n \n\n  \n\n \n\n \n\n \n  \n\n  \n¥\n549,680\n \n  \n \n3.4\n \n\n  \n\n \n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n  \n\nWeighted\n\naverage rate\n\n \n\nShort-term debt in Japan, mainly from banks\n\n  \n¥\n 131,655\n \n  \n \n1.3\n% \n\nShort-term debt outside Japan, mainly from banks\n\n  \n \n329,499\n \n  \n \n3.9\n \n\nCommercial paper outside Japan\n\n  \n \n3,986\n \n  \n \n2.0\n \n\nSecured borrowings on securities lending transactions\n\n  \n \n107,095\n \n  \n \n2.6\n \n\n  \n\n \n\n \n\n \n  \n\n  \n¥\n572,235\n \n  \n \n3.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\nF-10\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe composition of long-term debt, the weighted average contract interest rate on long-term debt and the repayment due dates at March 31, 2025 and 2026 are as follows:\n\nMarch 31, 2025\n\n \n\n \n  \n\nDue\n\n (Fiscal Year) \n\n \n  \n\n Millions of yen \n\n \n  \n\nWeighted\n\n average rate \n\n \n\nBanks:\n\n  \n\n  \n\n  \n\nFixed rate\n\n  \n \n2026~2083\n \n  \n¥\n799,933\n \n  \n \n1.7\n% \n\nFloating rate\n\n  \n \n2026~2077\n \n  \n \n2,614,936\n \n  \n \n3.3\n \n\nInsurance companies and others:\n\n  \n\n  \n\n  \n\nFixed rate\n\n  \n \n2026~2083\n \n  \n \n353,890\n \n  \n \n0.9\n \n\nFloating rate\n\n  \n \n2026~2077\n \n  \n \n262,346\n \n  \n \n2.2\n \n\nUnsecured bonds\n\n  \n \n2026~2081\n \n  \n \n1,251,120\n \n  \n \n2.1\n \n\nUnsecured notes under medium-term note program\n\n  \n \n2026~2032\n \n  \n \n387,316\n \n  \n \n3.8\n \n\nPayables under securitized lease receivables\n\n  \n \n2026~2026\n \n  \n \n13,565\n \n  \n \n0.1\n \n\nPayables under securitized loan receivables and investment in securities\n\n  \n \n2026~2044\n \n  \n \n50,012\n \n  \n \n5.0\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n¥\n5,733,118\n \n  \n \n2.7\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nDue\n\n (Fiscal Year) \n\n \n  \n\n Millions of yen \n\n \n  \n\nWeighted\n\n average rate \n\n \n\nBanks:\n\n  \n\n  \n\n  \n\nFixed rate\n\n  \n \n2027~2083\n \n  \n¥\n878,490\n \n  \n \n1.9\n% \n\nFloating rate\n\n  \n \n2027~2050\n \n  \n \n2,627,671\n \n  \n \n3.3\n \n\nInsurance companies and others:\n\n  \n\n  \n\n  \n\nFixed rate\n\n  \n \n2027~2083\n \n  \n \n346,407\n \n  \n \n1.1\n \n\nFloating rate\n\n  \n \n2027~2038\n \n  \n \n265,825\n \n  \n \n2.4\n \n\nUnsecured bonds\n\n  \n \n2027~2081\n \n  \n \n1,358,146\n \n  \n \n2.8\n \n\nUnsecured notes under medium-term note program\n\n  \n \n2027~2032\n \n  \n \n458,255\n \n  \n \n3.9\n \n\nPayables under securitized lease receivables\n\n  \n \n2027~2028\n \n  \n \n12,291\n \n  \n \n0.1\n \n\nPayables under securitized loan receivables and investment in securities\n\n  \n \n2027~2044\n \n  \n \n18,674\n \n  \n \n2.4\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\n  \n¥\n5,965,759\n \n  \n \n2.8\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\nF-10\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe repayment schedule for the next five years and thereafter for long-term debt at March 31,\n2026\nis as follows:\n\n \n\nYears ending March 31,\n\n  \n\nMillions of yen\n\n \n\n2027\n\n  \n¥\n1,032,088\n \n\n2028\n\n  \n \n967,289\n \n\n2029\n\n  \n \n999,338\n \n\n2030\n\n  \n \n808,330\n \n\n2031\n\n  \n \n702,692\n \n\nThereafter\n\n  \n \n1,456,022\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥ \n5,965,759\n \n\n  \n\n \n\n \n\n \n\n \n\nBorrowings\n\n with fixed rate from banks, insurance companies and others include the amount of ¥\n44,000\n million of subordinated syndicated loan (hybrid loan). Out of this amount, ¥\n10,000\n million was executed in fiscal 2022, and will mature in fiscal\n2082\nand may be redeemed after\n5\nyears from the execution. ¥\n34,000\n million was executed in fiscal 2023, and will mature in fiscal\n2083\nand may be redeemed after\n5\nyears from the execution.\n\nUnsecured bonds include the amount of ¥160,000 million of unsecured subordinated bonds with interest payment deferrable clauses and optional early redemption conditions (hybrid bonds). This amount consists of:\n\n \n\n \n\n•\n\n \n\n¥40,000 million issued in fiscal 2020, maturing in fiscal 2080, with optional early redemption on or after March 2030;\n\n \n\n \n\n•\n\n \n\n¥21,000 million issued in fiscal 2021, maturing in fiscal 2081, with optional early redemption on or after March 2031;\n\n \n\n \n\n•\n\n \n\n¥60,000 million issued in fiscal 2025, maturing in fiscal 2060, with optional early redemption on or after March 2030; and\n\n \n\n \n\n•\n\n \n\n¥39,000 million issued in fiscal 2026, maturing in fiscal 2061, with optional early redemption on or after March 2031.\n\nFor borrowings from banks, insurance companies and other financial institutions, for bonds, and for medium-term notes, principal repayments are usually made upon maturity of the loan contracts and interest payments are usually paid semi-annually.\n\nDuring fiscal 2024, 2025 and 2026, the Company and certain subsidiaries recognized net amortization expenses of premiums and discounts of bonds and medium-term notes, and deferred issuance costs of bonds and medium-term notes in the amount of ¥1,247 million, ¥1,455 million and ¥\n\n1,578\n\n million, respectively.\n\nTotal committed credit lines for the Company and its subsidiaries were ¥795,634 million and ¥\n\n1,034,156\n\n million at March 31, 2025 and 2026, respectively, and, of these lines, ¥598,079 million and ¥\n\n753,645\n\n million were\navailable at March\n 31, 2025 and 2026, respectively. Of the available committed credit lines, ¥502,177 million and ¥\n\n639,552\n\n million were long-term committed credit lines at March 31, 2025 and 2026, respectively.\n\nThe agreements related to debt payable to banks provide that the banks under certain circumstances may request additional security for loans and have the right to offset cash deposited against any short-term or long-term debt that becomes due and, in case of default and certain other specified events, against all other debt payable to the banks.\n\n \n\nF-10\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nOther than the assets of the consolidated VIEs pledged as collateral for financing (see Note 11 “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, 2026:\n\n \n\n \n  \n\nMillions of yen\n\n \n\nLease payments, loans and investment in operating leases\n\n  \n¥\n201,058\n \n\nInvestment in securities\n\n  \n \n228,300\n \n\nProperty under facility operations\n\n  \n \n313,841\n \n\nOther assets and other\n\n  \n \n145,612\n \n\n  \n\n \n\n \n\n \n\n  \n¥\n888,811\n \n\n  \n\n \n\n \n\n \n\nAs of March 31, 2026, debt liabilities were secured by shares of subsidiaries of ¥\n\n198,764\n\n million, which were eliminated through consolidation adjustment, and debt liabilities of equity method investees were secured by equity method investments of ¥\n\n149,119\n\n million. As of March 31, 2026, debt liabilities were secured by loans to subsidiaries, which were eliminated through consolidation adjustment, of ¥\n\n7,922\n\n million. In addition, ¥\n\n404,097\n\n million was pledged primarily by investment in securities for collateral deposits and deposits for real estate transaction as of March 31, 2026.\n\n \n\nUnder 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 March 31, 2026.\n\n15. Deposits\n\nDeposits at March 31, 2025 and 2026 consist of the following:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nTime deposits\n\n  \n¥\n2,073,007\n \n  \n¥\n2,315,820\n \n\nOther deposits\n\n  \n \n376,805\n \n  \n \n309,736\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n2,449,812\n \n  \n¥\n2,625,556\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe balances of time deposits and certificates of deposit issued in amounts of ¥10 million or more were ¥1,082,224 million and ¥\n\n1,138,583\n\n million at March 31, 2025 and 2026, respectively.\n\nThe maturity schedule of time deposits at March 31, 2026 is as follows:\n\n \n\nYears ending March 31,\n\n  \n\nMillions of yen\n\n \n\n2027\n\n  \n¥ \n1,538,991\n \n\n2028\n\n  \n \n157,040\n \n\n2029\n\n  \n \n75,999\n \n\n2030\n\n  \n \n176,685\n \n\n2031\n\n  \n \n321,836\n \n\nThereafter\n\n  \n \n45,269\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n2,315,820\n \n\n  \n\n \n\n \n\n \n\n \n\nF-10\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n16. Income Taxes\n\nIncome before income taxes and the provision for income taxes in fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nIncome before income taxes:\n\n  \n\n  \n\n \n\nJapan\n\n  \n¥\n298,321\n \n  \n¥\n307,830\n \n \n¥\n496,631\n \n\nOverseas\n\n  \n \n171,654\n \n  \n \n172,633\n \n \n \n194,800\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n469,975\n \n  \n¥\n480,463\n \n \n¥\n691,431\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nProvision for income taxes:\n\n  \n\n  \n\n \n\nCurrent—\n\n  \n\n  \n\n \n\nJapan - Total\n\n  \n¥\n80,274\n \n  \n¥\n72,230\n \n \n¥\n94,317\n \n\nJapan - National tax*\n\n  \n \n— \n \n  \n \n— \n \n \n \n72,845\n \n\nJapan - Local tax*\n\n  \n \n— \n \n  \n \n— \n \n \n \n21,472\n \n\nOverseas\n\n  \n \n31,114\n \n  \n \n33,252\n \n \n \n48,399\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n111,388\n \n  \n \n105,482\n \n \n \n142,716\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDeferred—\n\n  \n\n  \n\n \n\nJapan - Total\n\n  \n \n9,049\n \n  \n \n26,803\n \n \n \n76,511\n \n\nJapan - National tax*\n\n  \n \n— \n \n  \n \n— \n \n \n \n63,768\n \n\nJapan - Local tax*\n\n  \n \n— \n \n  \n \n— \n \n \n \n12,743\n \n\nOverseas\n\n  \n \n10,951\n \n  \n \n(3,457\n) \n \n \n13,876\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n20,000\n \n  \n \n23,346\n \n \n \n90,387\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal—\n\n  \n\n  \n\n \n\nJapan - Total\n\n  \n \n89,323\n \n  \n \n99,033\n \n \n \n170,828\n \n\nJapan - National tax*\n\n  \n \n— \n \n  \n \n— \n \n \n \n136,613\n \n\nJapan - Local tax*\n\n  \n \n— \n \n  \n \n— \n \n \n \n34,215\n \n\nOverseas\n\n  \n \n42,065\n \n  \n \n29,795\n \n \n \n62,275\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n¥\n131,388\n \n  \n¥\n128,828\n \n \n¥\n233,103\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*\n\nSince fiscal 2026, we have changed the disclosure of the breakdown of income taxes in accordance with Accounting Standards Update 2023-09.\n\nIn fiscal 2024, 2025 and 2026, the aggregate statutory income tax rate applicable to the Company and its subsidiaries in Japan is approximately 31.5%. The national statutory income tax rate is approximately 25.6%.\n\nIn fiscal 2026, the principal local tax jurisdictions that make up the majority of the Japan local tax, net of national tax effect, category in our rate reconciliation is the Tokyo Metropolitan Government and Osaka Prefecture.\n\n \n\nF-10\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nReconciliations of the differences between the tax provision computed at the statutory income tax rate of 31.5%, the aggregate statutory income tax rate of the Company’s tax domicile, and the consolidated provision for income taxes in fiscal 2024 and 2025 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2024\n\n \n\n \n\n2025\n\n \n\nIncome before income taxes\n\n  \n\n¥\n\n469,975\n\n \n\n \n\n¥\n\n480,463\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTax provision computed at the statutory rate\n\n  \n\n¥\n\n148,042\n\n \n\n \n\n¥\n\n151,346\n\n \n\nIncreases (reductions) in taxes due to:\n\n  \n\n \n\nChange in valuation allowance\n\n  \n\n \n\n5,441\n\n \n\n \n\n \n\n1,973\n\n \n\nNondeductible expenses\n\n  \n\n \n\n4,762\n\n \n\n \n\n \n\n5,813\n\n \n\nNontaxable income\n\n  \n\n \n\n(3,574\n\n) \n\n \n\n \n\n(5,893\n\n) \n\nEffect of lower tax rates on certain subsidiaries\n\n  \n\n \n\n(17,627\n\n) \n\n \n\n \n\n(22,271\n\n) \n\nEffect of investor taxes on earnings of subsidiaries\n\n  \n\n \n\n7,674\n\n \n\n \n\n \n\n3,494\n\n \n\nEffect of the tax law and rate changes\n\n  \n\n \n\n(1,295\n\n) \n\n \n\n \n\n2,218\n\n \n\nEffect of sale or liquidation of subsidiaries\n\n  \n\n \n\n(14,995\n\n) \n\n \n\n \n\n(8,423\n\n) \n\nOther, net\n\n  \n\n \n\n2,960\n\n \n\n \n\n \n\n571\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProvision for income taxes\n\n  \n\n¥\n\n131,388\n\n \n\n \n\n¥\n\n128,828\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe effective income tax rate is different from the statutory income tax rate primarily because of certain nondeductible expenses, nontaxable income, changes in valuation allowance, the effect of lower tax rates on certain subsidiaries, effect of investor taxes on earnings of subsidiaries and effect of sale or liquidation of subsidiaries.\n\nDue to the enactment of the “Act for Partial Revision of the Income Tax Act, etc.” (Act No.13 of 2025) in the Japanese Diet on March 31, 2025, the “Special Corporation Tax for National Defense” will be imposed from the fiscal years beginning on or after April 1, 2026. As a result, the statutory income tax rate used to calculate deferred tax assets and liabilities has been changed from approximately 31.0% to approximately 31.9% for temporary differences expected to be resolved from the fiscal year beginning on April 1, 2026. The increase and decrease of the deferred tax assets and liabilities due to the change in the tax rates resulted in an increase of provision for income taxes by ¥6,124 \n\nmillion in the consolidated statements of income for fiscal 2025.\n\n \n\nF-1\n10\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nReconciliations of the differences between the corporate income taxes computed at the Japanese national statutory income tax rate of approximately 25.6%, the national statutory income tax rate in our country of domicile, and the consolidated provision for income taxes in fiscal 2026 was as follows.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2026\n\n \n\nIncome before income taxes\n\n  \n¥\n691,431\n \n \n \n \n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTax provision computed at the national statutory income tax rate\n\n  \n¥\n177,006\n \n \n \n25.6\n% \n\nJapan national tax:\n\n  \n\n \n\nNontaxable and nondeductible items\n\n  \n \n(223\n) \n \n \n(0.0\n%) \n\nTax credits\n\n  \n\n \n\nForeign tax credit\n\n  \n \n(9,769\n)\n \n \n(1.4\n%\n)\n\nOther\n\n  \n \n(1,539\n)\n \n \n(0.2\n%\n)\n\nEffect of the tax law and rate changes\n\n  \n \n\n1,012\n\n \n \n \n0.1\n% \n\nChange in valuation allowance\n\n  \n \n2,375\n \n \n \n0.3\n% \n\nCross-border tax laws\n\n  \n \n10,975\n \n \n \n1.6\n% \n\nOther, net\n\n  \n \n6,715\n \n \n \n1.0\n% \n\nJapan local tax, net of national tax effect\n\n  \n \n34,215\n \n \n \n4.9\n% \n\nForeign tax effects\n\n  \n\n \n\nThe United States\n\n  \n \n9,030\n \n \n \n1.3\n% \n\nIndia\n\n  \n\n \n\nDirect foreign withholding tax\n\n  \n \n10,367\n \n \n \n1.5\n% \n\nOther\n\n  \n \n138\n \n \n \n0.0\n% \n\nOther foreign jurisdictions\n\n  \n \n(7,522\n)\n \n \n(1.1\n%\n)\n\nWorldwide changes in unrecognized tax benefits\n\n  \n \n323\n \n \n \n0.1\n% \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nProvision for income taxes\n\n  \n¥\n233,103\n \n \n \n33.7\n% \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe amounts of taxes paid (net of amounts received) in fiscal 2026 was as follows.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2026\n\n \n\nJapan national tax\n\n  \n \n52,638\n \n\n  \n\n \n\n \n\n \n\nJapan local tax\n\n  \n\nTokyo Metropolitan Government\n\n  \n \n8,437\n \n\nOther\n\n  \n \n9,021\n \n\n  \n\n \n\n \n\n \n\nSubtotal\n\n  \n \n17,458\n \n\n  \n\n \n\n \n\n \n\nForeign\n\n  \n\nThe United States\n\n  \n \n10,216\n \n\nIndia\n\n  \n \n11,286\n \n\nOther\n\n  \n \n23,149\n \n\n  \n\n \n\n \n\n \n\nSubtotal\n\n  \n \n44,651\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n114,747\n \n\n  \n\n \n\n \n\n \n\n \n\nF-1\n11\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nTotal income tax expense recognized in fiscal 2024, 2025 and 2026 was allocated as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nProvision for income taxes\n\n  \n¥\n131,388\n \n \n¥\n128,828\n \n \n¥\n233,103\n \n\nIncome tax expense (benefit) allocated to other comprehensive income (loss):\n\n  \n\n \n\n \n\nNet change of unrealized gains (losses) on investment in securities\n\n  \n \n(27,157\n) \n \n \n(60,260\n) \n \n \n(88,096\n) \n\nNet change of impact of changes in policy liability discount rate\n\n  \n \n32,471\n \n \n \n54,382\n \n \n \n100,702\n \n\nNet change of debt valuation adjustments\n\n  \n \n(74\n) \n \n \n(13\n) \n \n \n78\n \n\nNet change of defined benefit pension plans\n\n  \n \n5,554\n \n \n \n2,063\n \n \n \n7,711\n \n\nNet change of foreign currency translation adjustments\n\n  \n \n(30,992\n) \n \n \n2,484\n \n \n \n(12,045\n) \n\nNet change of unrealized gains (losses) on derivative instruments\n\n  \n \n(1,523\n) \n \n \n(441\n) \n \n \n1,016\n \n\nOther direct adjustments to shareholders’ equity\n\n  \n \n32\n \n \n \n22\n \n \n \n57\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal income tax expense\n\n  \n¥\n109,699\n \n \n¥\n127,065\n \n \n¥\n242,526\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe tax effects of temporary differences and carryforwards giving rise to the deferred tax assets and liabilities as of March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nAssets:\n\n  \n\n \n\nNet operating loss carryforwards\n\n  \n¥\n48,953\n \n \n¥\n50,576\n \n\nAllowance for credit losses\n\n  \n \n14,842\n \n \n \n18,565\n \n\nInvestment in securities\n\n  \n \n4,581\n \n \n \n4,109\n \n\nAccrued expenses\n\n  \n \n26,516\n \n \n \n23,644\n \n\nInvestment in operating leases\n\n  \n \n11,576\n \n \n \n12,597\n \n\nProperty under facility operations\n\n  \n \n28,007\n \n \n \n33,551\n \n\nInstallment loans\n\n  \n \n8,075\n \n \n \n7,036\n \n\nUnrealized losses on investment in securities\n\n  \n \n158,375\n \n \n \n245,605\n \n\nLease liabilities\n\n  \n \n74,215\n \n \n \n76,790\n \n\nOther*\n\n  \n \n159,391\n \n \n \n188,081\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n534,531\n \n \n \n660,554\n \n\nLess: valuation allowance\n\n  \n \n(35,845\n) \n \n \n(44,262\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n498,686\n \n \n \n616,292\n \n\n \n\nF-1\n12\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nLiabilities:\n\n  \n\n  \n\nNet investment in leases\n\n  \n \n12,755\n \n  \n \n13,524\n \n\nInvestment in operating leases\n\n  \n \n171,455\n \n  \n \n175,410\n \n\nUnrealized gains on investment in securities\n\n  \n \n9,259\n \n  \n \n17,966\n \n\nDeferred insurance policy acquisition costs\n\n  \n \n90,934\n \n  \n \n96,048\n \n\nPolicy liabilities and policy account balances\n\n  \n \n263,515\n \n  \n \n397,682\n \n\nProperty under facility operations\n\n  \n \n33,075\n \n  \n \n37,326\n \n\nOther intangible assets\n\n  \n \n143,701\n \n  \n \n148,872\n \n\nUndistributed earnings\n\n  \n \n103,808\n \n  \n \n134,589\n \n\nPrepaid benefit cost\n\n  \n \n27,224\n \n  \n \n32,689\n \n\nAdvances paid\n\n  \n \n8,387\n \n  \n \n9,023\n \n\nRight-of-use\n\nassets\n\n  \n \n72,034\n \n  \n \n73,828\n \n\nOther\n\n  \n \n24,834\n \n  \n \n43,256\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n \n960,981\n \n  \n \n1,180,213\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet deferred tax liability\n\n  \n¥\n462,295\n \n  \n¥\n563,921\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nAs of March 31, 2025 and 2026, other deferred tax assets includes amounts related to net investment hedges of ¥96,778 million and ¥107,235 million.\n\nNet deferred tax assets and liabilities at March 31, 2025 and 2026 are reflected in the accompanying consolidated balance sheets under the following captions:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nOther assets\n\n  \n¥\n63,337\n \n  \n¥\n47,130\n \n\nIncome taxes: Deferred\n\n  \n \n525,632\n \n  \n \n611,051\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet deferred tax liability\n\n  \n¥\n462,295\n \n  \n¥\n563,921\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe valuation allowance is primarily recognized for deferred tax assets of consolidated subsidiaries with operating loss carryforwards. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and operating loss carryforwards are utilizable. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and\ntax-planning\nstrategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company and its subsidiaries will realize the benefits of these deductible temporary differences and operating loss carryforwards, net of the existing valuation allowances at March 31, 2026. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. The net changes in the total valuation allowance were increases of ¥1,759 million in fiscal 2024, decreases of ¥3,201 million in fiscal 2025, and increases of ¥8,417 million in fiscal 2026. The decrease in the total valuation allowance recognized in earnings due to the utilization of net operating loss carryforwards were ¥3,660 million in fiscal 2024, ¥3,380 million in fiscal 2025 and ¥1,877 million in fiscal 2026. The adjustments to the\n\nbeginning-of-the-year\n\namount in the total valuation allowance resulting from changes in judgment about the\n\n \n\nF-11\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nrealizability of deferred tax assets in future years were net increases of ¥513 million in fiscal 2024 (increases of ¥4,125 million and decreases of ¥3,612 million on a gross basis), net decreases of ¥1,986 million in fiscal 2025 (increases of ¥1,143 million and decreases of ¥3,129 million on a gross basis), and net increases of ¥2,156 million in fiscal 2026 (increases of ¥2,968 million and decreases of ¥812 million on a gross basis), respectively.\n\nThe Company and certain subsidiaries have net operating loss carryforwards of\n¥339,611\n million at March 31, 2026, which expire as follows:\n\n \n \n\nYears ending March 31,\n\n  \n\nMillions of yen\n\n \n\n2027\n\n  \n¥\n6,395\n \n\n2028\n\n  \n \n1,989\n \n\n2029\n\n  \n \n17,331\n \n\n2030\n\n  \n \n45,820\n \n\n2031\n\n  \n \n64,843\n \n\nThereafter\n\n  \n \n147,470\n \n\nIndefinite period\n\n  \n \n55,763\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n339,611\n \n\n  \n\n \n\n \n\n \n\nThe unrecognized tax benefits as of March 31, 2025 and 2026 were not material.\n\nThe total amounts of penalties and interest expense related to income taxes recognized in the consolidated balance sheets as of March 31, 2025 and 2026, and in the consolidated statements of income for fiscal 2024, 2025 and 2026 were not material.\n\nThe Company and its subsidiaries file tax returns in Japan and certain foreign tax jurisdictions. The Company is no longer subject to ordinary income tax examination in Japan for the tax years prior to fiscal 2025, and its major domestic subsidiaries are no longer subject to ordinary income tax examination for the tax years prior to fiscal 2018, respectively.\n\nSubsidiaries in the United States remain subject to an income tax examination for the tax years after fiscal 2020. Subsidiaries in the Netherlands remain subject to an income tax examination for the tax years after fiscal 2018.\n\n17. Pension Plans\n\nThe Company and certain subsidiaries have contributory and\nnon-contributory\npension 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\nlump-sum\npayments 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.\n\nThe Company and certain 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.\n\n \n\nF-11\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe funded status of the defined benefit pension plans, which consists of Japanese plans and overseas plans, as of March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nJapanese plans\n\n \n \n\nOverseas plans\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nChange in benefit obligation:\n\n  \n\n \n\n \n\n \n\nBenefit obligation at beginning of year\n\n  \n¥\n105,109\n \n \n¥\n93,804\n \n \n¥\n129,934\n \n \n¥\n122,744\n \n\nService cost\n\n  \n \n5,078\n \n \n \n4,473\n \n \n \n3,268\n \n \n \n2,890\n \n\nInterest cost\n\n  \n \n1,421\n \n \n \n1,943\n \n \n \n4,091\n \n \n \n4,786\n \n\nActuarial loss (income)\n\n  \n \n(7,621\n) \n \n \n(6,728\n) \n \n \n(11,712\n) \n \n \n(8,246\n)\n\nPlan participant’s contributions\n\n  \n \n0\n \n \n \n0\n \n \n \n233\n \n \n \n471\n \n\nBenefits paid\n\n  \n \n(5,032\n) \n \n \n(5,513\n)\n \n \n(2,375\n) \n \n \n(4,025\n)\n \n\nBusiness combinations\n\n  \n \n86\n \n \n \n4,141\n \n \n \n0\n \n \n \n0\n \n\nDivestitures\n\n  \n \n(1,937\n) \n \n \n(498\n)\n \n \n0\n \n \n \n0\n \n\nPlan amendments\n\n  \n \n0\n \n \n \n0\n \n \n \n179\n \n \n \n0\n \n\nSettlements\n\n  \n \n(3,300\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nForeign currency exchange rate change\n\n  \n \n0\n \n \n \n0\n \n \n \n(874\n) \n \n \n15,504\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBene\nf\nit obligatio\nn\nat\ne\nnd of year\n\n  \n \n93,804\n \n \n \n91,622\n \n \n \n122,744\n \n \n \n134,124\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nChange in plan assets:\n\n  \n\n \n\n \n\n \n\nFair value of plan assets at beginning of year\n\n  \n \n143,101\n \n \n \n137,712\n \n \n \n153,803\n \n \n \n151,819\n \n\nActual return on plan assets\n\n  \n \n449\n \n \n \n9,551\n \n \n \n(1,435\n) \n \n \n2,115\n \n\nEmployer contribution\n\n  \n \n3,855\n \n \n \n4,034\n \n \n \n2,446\n \n \n \n2,665\n \n\nPlan participant’s contributions\n\n  \n \n0\n \n \n \n0\n \n \n \n233\n \n \n \n471\n \n\nBenefits paid\n\n  \n \n(4,404\n) \n \n \n(4,560\n)\n \n \n(2,182\n) \n \n \n(3,772\n)\n\nBusiness combinations\n\n  \n \n0\n \n \n \n5,827\n \n \n \n0\n \n \n \n0\n \n\nDivestitures\n\n  \n \n(3,272\n) \n \n \n(460\n)\n \n \n0\n \n \n \n0\n \n\nSettlements\n\n  \n \n(2,017\n) \n \n \n(1\n)\n \n \n0\n \n \n \n0\n \n\nForeign currency exchange rate change\n\n  \n \n0\n \n \n \n0\n \n \n \n(1,046\n) \n \n \n19,770\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFair value of plan assets at end of year\n\n  \n \n137,712\n \n \n \n152,103\n \n \n \n151,819\n \n \n \n173,068\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe funded status of the plans\n\n  \n¥\n43,908\n \n \n¥\n60,481\n \n \n¥\n29,075\n \n \n¥\n38,944\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAmount recognized in the consolidated balance sheets consists of:\n\n \n\n \n\n \n\n \n\nPrepaid benefit cost included in other assets\n\n  \n¥\n59,111\n \n \n¥\n75,053\n \n \n¥\n30,809\n \n \n¥\n40,886\n \n\nAccrued benefit liability included in other liabilities\n\n  \n \n(15,203\n) \n \n \n(14,572\n)\n \n \n(1,734\n) \n \n \n(1,942\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet amount recognized\n\n  \n¥\n43,908\n \n \n¥\n60,481\n \n \n¥\n29,075\n \n \n¥\n38,944\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-11\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAmount recognized in accumulated other comprehensive income (loss),\npre-tax,\nat March 31, 2025 and 2026 consisted of:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nJapanese plans\n\n \n  \n\nOverseas plans\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nNet prior service credit\n\n  \n¥\n666\n \n  \n¥\n  601\n \n  \n¥\n(502\n) \n \n¥ \n(838\n)\n \n\nNet actuarial gain (loss)\n\n  \n \n 5,750\n \n  \n \n25,940\n \n  \n \n  12,865\n \n \n \n 17,953\n \n\nNet transition obligation\n\n  \n \n0\n \n  \n \n0\n \n  \n \n8\n \n \n \n9\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal recognized in accumulated other comprehensive loss,\npre-tax\n\n  \n¥\n6,416\n \n  \n¥\n26,541\n \n  \n¥\n12,371\n \n \n¥\n17,124\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accumulated benefit obligations for all Japanese defined benefit pension plans were ¥85,077 million and ¥79,977 million, respectively, at March 31, 2025 and 2026. The accumulated benefit obligations for all overseas defined benefit pension plans were ¥117,478 million and ¥128,408 million, respectively, at March 31, 2025 and 2026.\n\nThe accumulated benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets at March 31, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nJapanese plans\n\n \n\n  \n\nOverseas plans\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nAccumulated benefit obligations\n\n  \n¥\n 14,525\n \n  \n¥\n  14,163\n \n  \n¥\n   2,075\n  \n \n¥\n  2,260\n \n\nFair value of plan assets\n\n  \n \n0\n \n  \n \n0\n \n  \n \n389\n \n \n \n366\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe projected benefit obligations and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets at March 31, 2025 and 2026 are as follows:\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nJapanese plans\n\n \n\n  \n\nOverseas plans\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nProjected benefit obligations\n\n  \n¥\n 15,203\n \n  \n¥\n  14,572\n \n  \n¥\n   3,844\n  \n \n¥\n  2,308\n \n\nFair value of plan assets\n\n  \n \n0\n \n  \n \n0\n \n  \n \n2,110\n \n \n \n366\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-11\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nNet pension cost of the plans for fiscal 2024, 2025 and 2026 consists of the following:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nJapanese plans:\n\n  \n\n \n\n \n\nService cost\n\n  \n¥\n5,542\n \n \n¥\n5,078\n \n \n¥\n4,473\n \n\nInterest cost\n\n  \n \n1,216\n \n \n \n1,421\n \n \n \n1,943\n \n\nExpected return on plan assets\n\n  \n \n(2,702\n) \n \n \n(2,766\n) \n \n \n(2,734\n)\n \n\nAmortization of prior service credit\n\n  \n \n(84\n) \n \n \n(72\n) \n \n \n(65\n)\n\nAmortization of net actuarial loss\n\n  \n \n59\n \n \n \n(93\n) \n \n \n(139\n)\n\nPlan amendments\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n\nSettlements\n\n  \n \n0\n \n \n \n(1,347\n) \n \n \n1\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet periodic pension cost\n\n  \n¥\n 4,031\n \n \n¥\n  2,221\n \n \n¥\n3,479\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOverseas plans:\n\n  \n\n \n\n \n\nService cost\n\n  \n¥\n2,999\n \n \n¥\n3,268\n \n \n¥\n2,890\n \n\nInterest cost\n\n  \n \n3,395\n \n \n \n4,091\n \n \n \n4,786\n \n\nExpected return on plan assets\n\n  \n \n(6,362\n) \n \n \n(6,996\n) \n \n \n(7,489\n)\n\nAmortization of prior service credit\n\n  \n \n(354\n) \n \n \n(322\n) \n \n \n(270\n)\n\nAmortization of net actuarial loss\n\n  \n \n11\n \n \n \n9\n \n \n \n5\n \n\nAmortization of transition obligation\n\n  \n \n1\n \n \n \n1\n \n \n \n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet periodic pension cost\n\n  \n¥\n(310\n) \n \n¥\n51\n \n \n¥\n(78\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNote:\n \nNet periodic pension cost is charged in personnel expenses, which is included in selling, general and administrative expenses in the consolidated statements of income.\n\nOther changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for fiscal 2024, 2025 and 2026 are summarized as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nJapanese plans:\n\n  \n\n \n\n \n\nCurrent year actuarial gain (loss)\n\n  \n¥\n12,990\n \n \n¥\n5,125\n \n \n¥\n20,329\n \n\nAmortization of net actuarial loss\n\n  \n \n59\n \n \n \n(93\n) \n \n \n(139\n)\n \n\nPrior service credit due to amendments\n\n  \n \n0\n \n \n \n(278\n) \n \n \n0\n \n\nAmortization of prior service credit\n\n  \n \n(84\n) \n \n \n(72\n) \n \n \n(65\n)\n\nSettlements\n\n  \n \n0\n \n \n \n(148\n) \n \n \n0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal recognized in other comprehensive income,\npre-tax\n\n  \n¥\n12,965\n \n \n¥\n4,534\n \n \n¥\n20,125\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOverseas plans:\n\n  \n\n \n\n \n\nCurrent year actuarial gain (loss)\n\n  \n¥\n5,728\n \n \n¥\n3,226\n \n \n¥\n3,141\n \n\nAmortization of net actuarial loss\n\n  \n \n11\n \n \n \n9\n \n \n \n5\n \n\nPrior service credit due to amendments\n\n  \n \n(145\n) \n \n \n(179\n) \n \n \n(5\n)\n\nAmortization of prior service credit\n\n  \n \n(354\n) \n \n \n(322\n) \n \n \n(270\n)\n\nAmortization of transition obligation\n\n  \n \n1\n \n \n \n1\n \n \n \n0\n \n\nForeign currency exchange rate change\n\n  \n \n641\n \n \n \n(78\n) \n \n \n1,882\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal recognized in other comprehensive income (loss),\npre-tax\n\n  \n¥\n5,882\n \n \n¥\n 2,657\n \n \n¥\n4,753\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-11\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nSignificant assumptions of Japanese pension plans and overseas pension plans used to determine these amounts are as follows:\n\n \n\nJapanese plans\n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\nWeighted-average assumptions used to determine benefit obligations at March 31:\n\n \n\n \n\n \n\nDiscount rate\n\n \n \n1.4\n% \n \n \n2.1\n% \n \n \n2.8\n% \n\nRate of increase in compensation levels\n\n \n \n4.3\n% \n \n \n3.4\n% \n \n \n3.1\n% \n\nInterest crediting rate for cash balance plans\n\n \n \n1.5\n% \n \n \n1.5\n% \n \n \n1.5\n% \n\nWeighted-average assumptions used to determine net periodic pension cost for years ended March 31:\n\n \n\n \n\n \n\nDiscount rate\n\n \n \n1.1\n% \n \n \n1.4\n% \n \n \n2.1\n% \n\nRate of increase in compensation levels\n\n \n \n4.3\n% \n \n \n4.3\n% \n \n \n3.4\n% \n\nExpected long-term rate of return on plan assets\n\n \n \n2.0\n% \n \n \n2.0\n% \n \n \n1.9\n% \n\nInterest crediting rate for cash balance plans\n\n \n \n1.5\n% \n \n \n1.5\n% \n \n \n1.5\n% \n\nOverseas plans\n\n \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nWeighted-average assumptions used to determine benefit obligations at March 31:\n\n \n\n \n\n \n\nDiscount rate\n\n \n \n3.3\n% \n \n \n3.8\n% \n \n \n4.3\n% \n\nRate of increase in compensation levels\n\n \n \n2.3\n% \n \n \n2.3\n% \n \n \n2.3\n% \n\nInterest crediting rate for cash balance plans\n\n \n \n— \n \n \n \n— \n \n \n \n — \n \n\nWeighted-average assumptions used to determine net periodic pension cost for years ended March 31:\n\n \n\n \n\n \n\nDiscount rate\n\n \n \n3.3\n% \n \n \n3.3\n% \n \n \n3.8\n% \n\nRate of increase in compensation levels\n\n \n \n2.3\n% \n \n \n2.3\n% \n \n \n2.3\n% \n\nExpected long-term rate of return on plan assets\n\n \n \n4.6\n% \n \n \n4.7\n% \n \n \n4.7\n% \n\nInterest crediting rate for cash balance plans\n\n \n \n— \n \n \n \n— \n \n \n \n — \n \n\nThe 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.\n\nThe 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.\n\n \n\nF-11\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe fair value of Japanese pension plan assets at March 31, 202\n5\n and 2026, by asset category, are as follows. The three levels of input used to measure fair value are described in Note 2 “Fair Value Measurements.”\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance Sheets\n\n \n  \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical\n\nAssets\n\n(Level 1)\n\n \n  \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n  \n\nSignificant\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nEquity securities:\n\n  \n\n  \n\n  \n\n  \n\nJapan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*1\n\n  \n¥\n15,268\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n0\n \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*2\n\n  \n \n19,447\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nDebt securities:\n\n  \n\n  \n\n  \n\n  \n\nJapan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*3\n\n  \n \n28,787\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*4\n\n  \n \n32,738\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nOther assets:\n\n  \n\n  \n\n  \n\n  \n\nLife insurance company general accounts*5\n\n  \n \n29,136\n \n  \n \n0\n \n  \n \n29,136\n \n  \n \n0\n \n\nOthers*6\n\n  \n \n12,336\n \n  \n \n0\n \n  \n \n12,336\n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n137,712\n \n  \n¥\n      0\n \n  \n¥\n 41,472\n \n  \n¥\n      0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*1\n\nThese funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥30 million at March 31, 2025.\n\n*2\n\nThese funds invest in listed shares.\n\n*3\n\nThese 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 ¥7 million at March 31, 2025.\n\n*4\n\nThese funds invest approximately 100% in foreign government bonds.\n\n*5\n\nLife insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.\n\n*6\n\nOthers include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments.\n\n \n\nF-11\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAt March 31, 2025, our policy for the portfolio of plans consists of three major components: approximately 30% is invested in equity securities, approximately 40% is invested in debt securities and approximately 30% is invested in other assets, primarily consisting of investments in life insurance company general accounts.\n\nLevel 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.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance Sheets\n\n \n  \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical\n\nAssets\n\n(Level 1)\n\n \n  \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n  \n\nSignificant\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nEquity securities:\n\n  \n\n  \n\n  \n\n  \n\nJapan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*1\n\n  \n¥\n19,029\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥ \n0\n \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*2\n\n  \n \n21,666\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nDebt securities:\n\n  \n\n  \n\n  \n\n  \n\nJapan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*3\n\n  \n \n28,365\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nPooled funds*4\n\n  \n \n25,531\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nOther assets:\n\n  \n\n  \n\n  \n\n  \n\nLife insurance company general accounts*5\n\n  \n \n27,989\n \n  \n \n0\n \n  \n \n27,989\n \n  \n \n0\n \n\nOthers*6\n\n  \n \n29,523\n \n  \n \n0\n \n  \n \n29,523\n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n      152,103\n \n  \n¥\n      0\n \n  \n¥ \n      57,512\n \n  \n¥\n      0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*1\n\nThese funds invest in listed shares including shares of ORIX Corporation in the amounts of ¥42 million at March 31, 2026.\n\n*2\n\nThese funds invest in listed shares.\n\n*3\n\nThese 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 ¥6 million at March 31, 2026.\n\n*4\n\nThese funds invest approximately 100% in foreign government bonds.\n\n*5\n\nLife insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.\n\n*6\n\nOthers include\nderivative\ninstruments held for hedging change in the fair value of equity securities, and short-term instruments.\n\n \n\nF-1\n20\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAt March 31, 2026, our policy for the portfolio of plans consists of three major components: approximately 30% is invested in equity securities, approximately 40% is invested in debt securities and approximately 30% is invested in other assets, primarily consisting of investments in life insurance company general accounts.\n\n \n\nLevel 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.\n\nThe fair value of overseas pension plan assets at March 31, 2025 and 2026, by asset category, are as follows. The three levels of input\nused\nto measure fair value are described in Note 2 “Fair Value Measurements.”\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance Sheets\n\n \n  \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical\n\nAssets\n\n(Level 1)\n\n \n  \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n  \n\nSignificant\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nEquity securities:\n\n  \n\n  \n\n  \n\n  \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nShares\n\n  \n¥\n54,119\n \n  \n¥\n54,119\n \n  \n¥\n0\n \n  \n¥\n0\n \n\nPooled funds*1\n\n  \n \n722\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nDebt securities:\n\n  \n\n  \n\n  \n\n  \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nGovernment bonds\n\n  \n \n85,685\n \n  \n \n85,685\n \n  \n \n0\n \n  \n \n0\n \n\nMunicipal bonds\n\n  \n \n4,094\n \n  \n \n0\n \n  \n \n4,094\n \n  \n \n0\n \n\nOther assets:\n\n  \n\n  \n\n  \n\n  \n\nLife insurance company general accounts*2\n\n  \n \n455\n \n  \n \n0\n \n  \n \n455\n \n  \n \n0\n \n\nOthers*3\n\n  \n \n6,744\n \n  \n \n0\n \n  \n \n6,744\n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n151,819\n \n  \n¥\n139,804\n \n  \n¥\n 11,293\n \n  \n¥\n      0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*1\n\nThese funds invest in listed shares.\n\n*2\n\nLife insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.\n\n*3\n\nOthers include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments.\n\n \n\nF-1\n21\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAt March 31, 2025, our policy for the portfolio of plans consists of two major components: approximately 40% is invested in equity securities and approximately 60% is invested in debt securities.\n\nEach 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.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nTotal\n\nCarrying\n\nValue in\n\nConsolidated\n\nBalance Sheets\n\n \n  \n\nQuoted Prices\n\nin Active\n\nMarkets for\n\nIdentical\n\nAssets\n\n(Level 1)\n\n \n  \n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\n \n  \n\nSignificant\nUnobservable\n\nInputs\n\n(Level 3)\n\n \n\nEquity securities:\n\n  \n\n  \n\n  \n\n  \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nShares\n\n  \n¥\n70,171\n \n  \n¥\n70,171\n \n  \n¥\n0\n \n  \n¥\n0\n \n\nPooled funds*1\n\n  \n \n712\n \n  \n \n0\n \n  \n \n0\n \n  \n \n0\n \n\nDebt securities:\n\n  \n\n  \n\n  \n\n  \n\nOther than Japan\n\n  \n\n  \n\n  \n\n  \n\nGovernment bonds\n\n  \n \n91,849\n \n  \n \n91,849\n \n  \n \n0\n \n  \n \n0\n \n\nMunicipal bonds\n\n  \n \n4,403\n \n  \n \n0\n \n  \n \n4,403\n \n  \n \n0\n \n\nOther assets:\n\n  \n\n  \n\n  \n\n  \n\nLife insurance company general accounts*2\n\n  \n \n444\n \n  \n \n0\n \n  \n \n444\n \n  \n \n0\n \n\nOthers*3\n\n  \n \n5,489\n \n  \n \n0\n \n  \n \n5,489\n \n  \n \n0\n \n\n  \n¥\n      173,068\n \n  \n¥\n 162,020\n \n  \n¥\n10,336\n \n  \n¥\n      0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*1\n\nThese funds invest in listed shares.\n\n*2\n\nLife insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on several contracts.\n\n*3\n\nOthers include derivative instruments held for hedging change in the fair value of equity securities, and short-term instruments.\n\nAt March 31, 2026, our policy for the portfolio of plans consists of two major components: approximately 40% is invested in equity securities and approximately 60% is invested in debt securities.\n\nEach 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.\n\nF-1\n2\n2\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe Company and certain subsidiaries expect to contribute ¥\n\n3,965\n\n million to its Japanese pension plans and ¥\n\n2,788\n\n million to its overseas pension plans during the year ending March 31, 2027.\n\nAt March 31, 2026, 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:\n\n \n\n \n  \n\nMillions of yen\n\n \n\nYears ending March 31,\n\n  \n\nJapanese plans\n\n \n  \n\nOverseas plans\n\n \n\n2027\n\n  \n¥\n6,051\n \n  \n¥\n4,195\n \n\n2028\n\n  \n \n5,453\n \n  \n \n4,386\n \n\n2029\n\n  \n \n6,141\n \n  \n \n4,320\n \n\n2030\n\n  \n \n6,198\n \n  \n \n4,482\n \n\n2031\n\n  \n \n6,158\n \n  \n \n4,711\n \n\n2032-2036\n\n  \n \n32,528\n \n  \n \n26,958\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n62,529\n \n  \n¥\n49,052\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe cost recognized for Japanese defined contribution pension plans of the Company and certain of its subsidiaries for fiscal 2024, 2025 and 20\n2\n6 were ¥2,146 million, ¥2,118 million and ¥\n\n2,189\n\n million, respectively. The cost recognized for overseas defined contribution pension plans of the Company and certain of its subsidiaries for fiscal 2024, 2025 and 2026 were ¥4,219 million, ¥5,046 million and ¥\n\n5,738\n\n million, respectively.\n\n18. Redeemable Noncontrolling Interests\n\nChanges in redeemable noncontrolling interests in fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nBeginning Balance\n  \n¥\n945\n \n \n¥\n2,645\n \n \n¥\n3,432\n \n\nContribution to subsidiary\n\n  \n \n0\n \n \n \n0\n \n \n \n45,708\n \n\nTransaction with noncontrolling interests\n\n  \n \n2,122\n \n \n \n1,963\n \n \n \n2,108\n \n\nAdjustment of redeemable noncontrolling interests to redemption value\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n\nComprehensive income (loss)\n\n  \n\n \n\n \n\nNet Income (loss)\n\n  \n \n137\n \n \n \n394\n \n \n \n(758\n)\n\nOther comprehensive income (loss)\n\n  \n\n \n\n \n\nNet change of unrealized gains (losses) on investment in securities\n\n  \n \n10\n \n \n \n0\n \n \n \n(12\n)\n \n\nNet change of foreign currency translation adjustments\n\n  \n \n203\n \n \n \n(50\n)\n \n \n3,543\n \n\nTotal other comprehensive income (loss)\n\n  \n \n213\n \n \n \n(50\n)\n \n \n3,531\n \n\nComprehensive income (loss)\n\n  \n \n350\n \n \n \n344\n \n \n \n2,773\n \n\nDividends\n\n  \n \n(772\n)\n \n \n(1,520\n)\n \n \n(3,278\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding Balance\n\n  \n¥\n  2,645\n \n \n¥\n 3,432\n \n \n¥\n50,743\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-1\n2\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n19. Stock-Based Compensation\n\nThe Company maintains a stock compensation program for directors and executive officers of the Company and others. The Compensation Committee resolved in July 2014 and the Company’s shares are provided to retiree by way of provision of the compensation through the Board Incentive Plan Trust. The Board Incentive Plan Trust purchases the Company’s common shares including future granting shares by an entrusted fund which the Company set in advance. The Company holds those shares as entrusted assets, separately from other treasury stock which the Company holds.\n\nUnder the program, points are granted annually to directors and executive officers of the Company and others based upon the prescribed standards of the Company. Upon retirement, eligible directors, executive officers and others receive a certain number of the Company’s common shares calculated by translating each point earned by that retiree to one common share.\n\nIn fiscal 2026, the Company granted\n\n632,010\n\npoints, and\n\n391,898\n\npoints were settled for individuals who retired during fiscal 2026. Total points outstanding under the stock compensation program as of March 31, 2026 were\n\n3,268,760\n\npoints. The points were adjusted for the\n\n10-for-1\n\nstock split implemented on April 1, 2013.\n\nDuring fiscal 2024, 2025 and 2026, the Company recognized stock-based compensation costs of its stock compensation program in the amount of ¥2,177 million, ¥1,778 million and ¥\n\n3,705\n\n million, respectively.\n\n \n\nF-12\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n20. Accumulated Other Comprehensive Income (Loss)\n\nChanges in each component of accumulated other comprehensive income (loss) attributable to ORIX Corporation Shareholders in fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nNet unrealized\ngains (losses)\non investment\nin securities\n\n \n \n\nImpact of\nchanges in policy\nliability discount\nrate\n\n \n \n\nDebt\n\nvaluation\nadjustments\n\n \n \n\nDefined\n\nbenefit\n\npension\n\nplans\n\n \n \n\nForeign\n\ncurrency\ntranslation\nadjustments\n\n \n \n\nNet unrealized\ngains (losses)\non derivative\ninstruments\n\n \n \n\nAccumulated\nother\ncomprehensive\nincome (loss)\n\n \n\nBalance at March 31, 2023\n\n \n¥\n(183,034\n) \n \n¥\n164,516\n \n \n¥\n275\n \n \n¥\n(3,617\n) \n \n¥\n155,912\n \n \n¥\n22,083\n \n \n¥\n156,135\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet unrealized gains (losses) on investment in securities, net of tax of ¥27,906 million\n\n \n \n(69,102\n) \n \n\n \n\n \n\n \n\n \n\n \n \n(69,102\n) \n\nReclassification adjustment included in net income, net of tax of ¥(749) million\n\n \n \n1,340\n \n \n\n \n\n \n\n \n\n \n\n \n \n1,340\n \n\nImpact of changes in policy liability discount rate, net of tax of ¥(32,471) million\n\n \n\n \n \n93,269\n \n \n\n \n\n \n\n \n\n \n \n93,269\n \n\nDebt valuation adjustments, net of tax of ¥69 million\n\n \n\n \n\n \n \n(177\n) \n \n\n \n\n \n\n \n \n(177\n) \n\nReclassification adjustment included in net income, net of tax of ¥5 million\n\n \n\n \n\n \n \n(14\n) \n \n\n \n\n \n\n \n \n(14\n) \n\nDefined benefit pension plans, net of tax of ¥(5,655) million\n\n \n\n \n\n \n\n \n \n13,559\n \n \n\n \n\n \n \n13,559\n \n\nReclassification adjustment included in net income, net of tax of ¥101 million\n\n \n\n \n\n \n\n \n \n(266\n) \n \n\n \n\n \n \n(266\n)\n\nForeign currency translation adjustments, net of tax of ¥35,593 million\n\n \n\n \n\n \n\n \n\n \n \n163,062\n \n \n\n \n \n163,062\n \n\nReclassification adjustment included in net income, net of tax of ¥(4,601) million\n\n \n\n \n\n \n\n \n\n \n \n10,242\n \n \n\n \n \n10,242\n \n\nNet unrealized gains (losses) on derivative instruments, net of tax of ¥578 million\n\n \n\n \n\n \n\n \n\n \n\n \n \n(2,928\n) \n \n \n(2,928\n) \n\nReclassification adjustment included in net income, net of tax of ¥945 million\n\n \n\n \n\n \n\n \n\n \n\n \n \n(2,947\n) \n \n \n(2,947\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income (loss)\n\n \n \n(67,762\n) \n \n \n93,269\n \n \n \n(191\n) \n \n \n13,293\n \n \n \n173,304\n \n \n \n(5,875\n) \n \n \n206,038\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTransaction with noncontrolling interests\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n11\n \n \n \n(176\n) \n \n \n(165\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess: Other Comprehensive Income (loss) Attributable to the Noncontrolling Interests\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n6\n \n \n \n4,816\n \n \n \n(175\n) \n \n \n4,647\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess: Other Comprehensive Income Attributable to the Redeemable Noncontrolling Interests\n\n \n \n10\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n203\n \n \n \n0\n \n \n \n213\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2024\n\n \n¥\n(250,806\n) \n \n¥\n257,785\n \n \n¥\n84\n \n \n¥\n9,670\n \n \n¥\n324,208\n \n \n¥\n16,207\n \n \n¥\n357,148\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet unrealized gains (losses) on investment in securities, net of tax of ¥60,607 million\n\n \n \n(152,264\n) \n \n\n \n\n \n\n \n\n \n\n \n \n(152,264\n) \n\nReclassification adjustment included in net income, net of tax of ¥(347) million\n\n \n \n(844\n) \n \n\n \n\n \n\n \n\n \n\n \n \n(844\n) \n\nImpact of changes in policy liability discount rate, net of tax of ¥(54,382) million\n\n \n\n \n \n158,339\n \n \n\n \n\n \n\n \n\n \n \n158,339\n \n\nDebt valuation adjustments, net of tax of ¥12 million\n\n \n\n \n\n \n \n(32\n) \n \n\n \n\n \n\n \n \n(32\n) \n\nReclassification adjustment included in net income, net of tax of ¥1 million\n\n \n\n \n\n \n \n(3\n) \n \n\n \n\n \n\n \n \n(3\n) \n\nDefined benefit pension plans, net of tax of ¥(2,244) million\n\n \n\n \n\n \n\n \n \n5,572\n \n \n\n \n\n \n \n5,572\n \n\nReclassification adjustment included in net income, net of tax of ¥181 million\n\n \n\n \n\n \n\n \n \n(444\n) \n \n\n \n\n \n \n(444\n) \n\nForeign currency translation adjustments, net of tax of ¥5,479 million\n\n \n\n \n\n \n\n \n\n \n \n(37,786\n) \n \n\n \n \n(37,786\n) \n\nReclassification adjustment included in net income, net of tax of ¥(7,963) million\n\n \n\n \n\n \n\n \n\n \n \n17,726\n \n \n\n \n \n17,726\n \n\nNet unrealized gains (losses) on derivative instruments, net of tax of ¥3,076 million\n\n \n\n \n\n \n\n \n\n \n\n \n \n(15,269\n) \n \n \n(15,269\n) \n\nReclassification adjustment included in net income, net of tax of ¥(2,635) million\n\n \n\n \n\n \n\n \n\n \n\n \n \n8,866\n \n \n \n8,866\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income (loss)\n\n \n \n(153,108\n) \n \n \n158,339\n \n \n \n(35\n) \n \n \n5,128\n \n \n \n(20,060\n) \n \n \n(6,403\n) \n \n \n(16,139\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTransaction with noncontrolling interests\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n136\n \n \n \n—\n \n \n \n136\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess: Other Comprehensive Income (Loss) Attributable to the Noncontrolling Interests\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n7\n \n \n \n(323\n) \n \n \n213\n \n \n \n(103\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess: Other Comprehensive Loss Attributable to the Redeemable Noncontrolling Interests\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n(50\n) \n \n \n0\n \n \n \n(50\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2025*\n\n \n¥\n(403,914\n) \n \n¥\n416,124\n \n \n¥\n49\n \n \n¥\n14,791\n \n \n¥\n304,657\n \n \n¥\n9,591\n \n \n¥\n341,298\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*\n\nAs of March 31, 2025, net unrealized gains (losses) on investment in securities contained ¥(61) million (net of tax of ¥16 million) of net unrealized gains (losses) in investment in securities related to\n\navailable-for-sale\n\ndebt securities with allowance for credit losses.\n\n \n\nF-12\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nNet unrealized\ngains (losses)\non investment\nin securities\n\n \n \n\nImpact of\nchanges in\npolicy liability\ndiscount rate\n\n \n \n\nDebt\n\nvaluation\nadjustments\n\n \n \n\nDefined\n\nbenefit\n\npension\n\nplans\n\n \n \n\nForeign\n\ncurrency\ntranslation\nadjustments\n\n \n \n\nNet unrealized\ngains (losses)\non derivative\ninstruments\n\n \n \n\nAccumulated\nother\ncomprehensive\nincome (loss)\n\n \n\nBalance at March 31, 2025\n\n \n¥\n(403,914\n) \n \n¥\n416,124\n \n \n¥\n49\n \n \n¥\n14,791\n \n \n¥\n304,657\n \n \n¥\n9,591\n \n \n¥\n341,298\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet unrealized gains (losses) on investment in securities, net of tax of ¥82,024 million\n\n \n \n(199,534\n) \n \n\n \n\n \n\n \n\n \n\n \n \n(199,534\n) \n\nReclassification adjustment included in net income, net of tax of ¥6,072 million\n\n \n \n(14,915\n) \n \n\n \n\n \n\n \n\n \n\n \n \n(14,915\n) \n\nImpact of changes in policy liability discount rate, net of tax of ¥(100,702) million\n\n \n\n \n \n299,258\n \n \n\n \n\n \n\n \n\n \n \n299,258\n \n\nDebt valuation adjustments, net of tax of ¥(82) million\n\n \n\n \n\n \n \n202\n \n \n\n \n\n \n\n \n \n202\n \n\nReclassification adjustment included in net income, net of tax of ¥4 million\n\n \n\n \n\n \n \n(9\n) \n \n\n \n\n \n\n \n \n(9\n) \n\nDefined benefit pension plans, net of tax of ¥(7,846) million\n\n \n\n \n\n \n\n \n \n17,501\n \n \n\n \n\n \n \n17,501\n \n\nReclassification adjustment included in net income, net of tax of ¥135 million\n\n \n\n \n\n \n\n \n \n(334\n) \n \n\n \n\n \n \n(334\n) \n\nForeign currency translation adjustments, net of tax of ¥9,304 million\n\n \n\n \n\n \n\n \n\n \n \n177,786\n \n \n\n \n \n177,786\n \n\nReclassification adjustment included in net income, net of tax of ¥2,741 million\n\n \n\n \n\n \n\n \n\n \n \n(5,850\n) \n \n\n \n \n(5,850\n) \n\nNet unrealized gains (losses) on derivative instruments, net of tax of ¥(2,130) million\n\n \n\n \n\n \n\n \n\n \n\n \n \n(778\n) \n \n \n(778\n) \n\nReclassification adjustment included in net income, net of tax of ¥1,114 million\n\n \n\n \n\n \n\n \n\n \n\n \n \n(2,062\n) \n \n \n(2,062\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income (loss)\n\n \n \n(214,449\n) \n \n \n299,258\n \n \n \n193\n \n \n \n17,167\n \n \n \n171,936\n \n \n \n(2,840\n) \n \n \n271,265\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTransaction with noncontrolling interests\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n28\n \n \n \n0\n \n \n \n28\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess: Other Comprehensive Income Attributable to the Noncontrolling Interests\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n5\n \n \n \n3,816\n \n \n \n129\n \n \n \n3,950\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess: Other Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests\n\n \n \n(12\n) \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n3,543\n \n \n \n0\n \n \n \n3,531\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2026*\n\n \n¥\n(618,351\n) \n \n¥\n715,382\n \n \n¥\n242\n \n \n¥\n31,953\n \n \n¥\n469,262\n \n \n¥\n6,622\n \n \n¥\n605,110\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*\n\nAs of March 31, 2026, net unrealized gains (losses) on investment in securities contained ¥\n\n(171)\n\n million (net of tax of ¥53 million) of net unrealized gains (losses) in investment in securities related to\n\navailable-for-sale\n\ndebt securities with allowance for credit losses.\n\n \n\nF-12\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAmounts reclassified to net income from accumulated other comprehensive income (loss) for fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nFiscal Year ended March 31, 2024\n\nDetails about accumulated other\n\ncomprehensive income components\n\n  \n\nReclassification\n\nadjustment included in\n\nnet income\n\n \n \n\nConsolidated statements of income caption\n\n \n  \n\nMillions of yen\n\n \n \n \n\nNet unrealized gains (losses) on investment in securities\n\n  \n\n \n\nSales of debt securities\n\n  \n¥\n231\n \n \nGains on investment securities and dividends\n\nSales of debt securities\n\n  \n \n(7,184\n) \n \nLife insurance premiums and related investment income\n\nAmortization of debt securities\n\n  \n \n756\n \n \nFinance revenues\n\nAmortization of debt securities\n\n  \n \n4,108\n \n \nLife insurance premiums and related investment income\n\n  \n\n \n\n \n\n \n \n\n  \n \n(2,089\n) \n \nTotal before income tax\n\n  \n \n749\n \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n(1,340\n) \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nDebt valuation adjustments\n\n  \n\n \n\nFulfillment of policy liabilities and amortization of policy account balances\n\n  \n¥\n19\n \n \nLife insurance costs\n\n  \n\n \n\n \n\n \n \n\n  \n \n19\n \n \nTotal before income tax\n\n  \n \n(5\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n14\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nDefined benefit pension plans\n\n  \n\n \n\nAmortization of prior service credit\n\n  \n¥\n438\n \n \nSee Note 17 “Pension Plans”\n\nAmortization of net actuarial loss\n\n  \n \n(70\n) \n \nSee Note 17 “Pension Plans”\n\nAmortization of transition obligation\n\n  \n \n(1\n) \n \nSee Note 17 “Pension Plans”\n\n  \n\n \n\n \n\n \n \n\n  \n \n367\n \n \nTotal before income tax\n\n  \n \n(101\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n266\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nForeign currency translation adjustments\n\n  \n\n \n\nForeign exchange contracts\n\n  \n¥\n(14,952\n) \n \nGains on sales of subsidiaries and equity method investments and liquidation losses, net/Interest expense\n\nSales or liquidation\n\n  \n \n109\n \n \nGains on sales of subsidiaries and equity method investments and liquidation losses, net\n\n  \n\n \n\n \n\n \n \n\n  \n \n(14,843\n) \n \nTotal before income tax\n\n  \n \n4,601\n \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n(10,242\n) \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nNet unrealized gains (losses) on derivative instruments\n\n  \n\n \n\nInterest rate swap agreements\n\n  \n¥\n114\n \n \nInterest expense\n\nForeign currency swap agreements\n\n  \n \n3,778\n \n \nInterest expense/Other (income) and expense\n\n  \n\n \n\n \n\n \n \n\n  \n \n3,892\n \n \nTotal before income tax\n\n  \n \n(945\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n2,947\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\n \n\nF-12\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n  \n\nFiscal Year ended March 31, 2025\n\nDetails about accumulated other comprehensive\nincome components\n\n  \n\nReclassification\n\nadjustment included in\n\nnet income\n\n \n \n\nConsolidated statements of income caption\n\n \n  \n\nMillions of yen\n\n \n \n \n\nNet unrealized gains (losses) on investment in securities\n\n  \n\n \n\nSales of debt securities\n\n  \n¥\n1,004\n \n \nGains on investment securities and dividends\n\nSales of debt securities\n\n  \n \n(9,010\n) \n \nLife insurance premiums and related investment income\n\nAmortization of debt securities\n\n  \n \n1,732\n \n \nFinance revenues\n\nAmortization of debt securities\n\n  \n \n6,771\n \n \nLife insurance premiums and related investment income\n\n  \n\n \n\n \n\n \n \n\n  \n \n497\n \n \nTotal before income tax\n\n  \n \n347\n \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n844\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nDebt valuation adjustments\n\n  \n\n \n\nFulfillment of policy liabilities and amortization of policy account balances\n\n  \n¥\n4\n \n \nLife insurance costs\n\n  \n\n \n\n \n\n \n \n\n  \n \n4\n \n \nTotal before income tax\n\n  \n \n(1\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n3\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nDefined benefit pension plans\n\n  \n\n \n\nAmortization of prior service credit\n\n  \n¥\n394\n \n \nSee Note 17 “Pension Plans”\n\nAmortization of net actuarial loss\n\n  \n \n84\n \n \nSee Note 17 “Pension Plans”\n\nAmortization of transition obligation\n\n  \n \n(1\n) \n \nSee Note 17 “Pension Plans”\n\nSettlements\n\n  \n \n148\n \n \nSee Note 17 “Pension Plans”\n\n  \n\n \n\n \n\n \n \n\n  \n \n625\n \n \nTotal before income tax\n\n  \n \n(181\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n444\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nForeign currency translation adjustments\n\n  \n\n \n\nForeign exchange contracts\n\n  \n¥\n(26,592\n) \n \nGains on sales of subsidiaries and equity method investments and liquidation losses, net/Interest expense\n\nSales or liquidation\n\n  \n \n903\n \n \nGains on sales of subsidiaries and equity method investments and liquidation losses, net\n\n  \n\n \n\n \n\n \n \n\n  \n \n(25,689\n) \n \nTotal before income tax\n\n  \n \n7,963\n \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n(17,726\n) \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nNet unrealized gains (losses) on derivative instruments\n\n  \n\n \n\nInterest rate swap agreements\n\n  \n¥\n446\n \n \nInterest expense\n\nForeign exchange contracts\n\n  \n \n(694\n) \n \nInterest expense\n\n  \n\n \n\n \n\n \n \n\nForeign currency swap agreements\n\n  \n \n(11,239\n) \n \nInterest expense/Other (income) and expense\n\n  \n\n \n\n \n\n \n \n\nOptions held/written and other\n\n  \n \n(14\n) \n \nLife insurance premiums and related investment income\n\n  \n\n \n\n \n\n \n \n\n  \n \n(11,501\n) \n \nTotal before income tax\n\n  \n \n2,635\n \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n(8,866\n) \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\n \n\nF-12\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n  \n\nFiscal Year ended March 31, 2026\n\nDetails about accumulated other comprehensive\nincome components\n\n  \n\nReclassification\n\nadjustment included in\n\nnet income\n\n \n \n\nConsolidated statements of income caption\n\n \n  \n\nMillions of yen\n\n \n \n \n\nNet unrealized gains (losses) on investment in securities\n\n  \n\n \n\nSales of debt securities\n\n  \n¥\n(3,943\n) \n \nGains on investment securities and dividends\n\nSales of debt securities\n\n  \n \n140\n \n \nLife insurance premiums and related investment income\n\nAmortization of debt securities\n\n  \n \n11,487\n \n \nFinance revenues\n\nAmortization of debt securities\n\n  \n \n13,508\n \n \nLife insurance premiums and related investment income\n\nOthers\n\n  \n \n(205\n) \n \nWrite-downs of securities\n\n  \n\n \n\n \n\n \n \n\n  \n \n20,987\n \n \nTotal before income tax\n\n  \n \n(6,072\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n14,915\n \n \n\nNet of tax\n\n  \n\n \n\n \n\n \n \n\nDebt valuation adjustments\n\n  \n\n \n\nFulfillment of policy liabilities and amortization of policy account balances\n\n  \n¥\n13\n \n \nLife insurance costs\n\n  \n\n \n\n \n\n \n \n\n  \n \n13\n \n \nTotal before income tax\n\n  \n \n(4\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n9\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nDefined benefit pension plans\n\n  \n\n \n\nAmortization of prior service credit\n\n  \n¥\n335\n \n \nSee Note 1\n7\n“Pension Plans”\n\nAmortization of net actuarial loss\n\n  \n \n134\n \n \nSee Note 1\n7\n“Pension Plans”\n\n  \n\n \n\n \n\n \n \n\n  \n \n469\n \n \nTotal before income tax\n\n  \n \n(135\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n334\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nForeign currency translation adjustments\n\n  \n\n \n\nForeign exchange contracts\n\n  \n¥\n1,215\n \n \nGains on sales of subsidiaries and equity method investments and liquidation losses, net/Interest expense\n\nSales or liquidation\n\n  \n \n7,376\n \n \nGains on sales of subsidiaries and equity method investments and liquidation losses, net\n\n  \n\n \n\n \n\n \n \n\n  \n \n8,591\n \n \nTotal before income tax\n\n  \n \n(2,741\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n5,850\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\nNet unrealized gains (losses) on derivative instruments\n\n  \n\n \n\nInterest rate swap agreements\n\n  \n¥\n1,186\n \n \nInterest expense\n\nForeign exchange contracts\n\n  \n \n3,071\n \n \nInterest expense/Other (income) and expense\n\nForeign currency swap agreements\n\n  \n \n(956\n) \n \nInterest expense/Other (income) and expense\n\nOptions held/written and other\n\n  \n \n(125\n) \n \nLife insurance premiums and related investment income\n\n  \n\n \n\n \n\n \n \n\n  \n \n3,176\n \n \nTotal before income tax\n\n  \n \n(1,114\n) \n \nIncome tax (expense) or benefit\n\n  \n\n \n\n \n\n \n \n\n  \n¥\n2,062\n \n \nNet of tax\n\n  \n\n \n\n \n\n \n \n\n \n\nF-12\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nComprehensive income (loss) and its components attributable to ORIX Corporation and noncontrolling interests have been reported, net of tax, in the consolidated statements of changes in equity, and information about comprehensive income (loss) and its components attributable to redeemable noncontrolling interests is provided in Note 18 “Redeemable Noncontrolling Interests.” Total comprehensive income (loss) and its components have been reported, net of tax, in the consolidated statements of comprehensive income.\n\n21. ORIX Corporation Shareholders’ Equity\n\nChanges in the number of shares issued in fiscal 2024, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nNumber of shares\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nBeginning balance\n\n  \n \n1,234,849,342\n \n \n \n1,214,961,054\n \n \n \n1,162,962,244\n \n\nCancellation of treasury stock\n\n  \n \n(19,888,288\n) \n \n \n(51,998,810\n) \n \n \n(38,855,620\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n  \n \n1,214,961,054\n \n \n \n1,162,962,244\n \n \n \n1,124,106,624\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe Japanese Companies Act (the “Act”) provides that an amount equivalent to 10% of any dividends resulting from appropriation of retained earnings be appropriated to the legal retained earnings until the aggregate amount of the additional\npaid-in\ncapital and the legal retained earnings equals 25% of the issued capital. The Act also provides that both additional\npaid-in\ncapital and the legal retained earnings are not available for dividends but may be capitalized or may be reduced by resolution of the general meeting of shareholders. However, if specified in the Company’s articles of incorporation, dividends can be declared by the Board of Directors instead of the general meeting of shareholders. In accordance with this, the Board of Directors of the Company resolved in May 2026 that a total of ¥\n\n68,675\n\n million dividends shall be distributed to the shareholders of record as of March 31, 2026. The liability for declared dividends and related impact on total equity is accounted for in the period of such Board of Directors’ resolution.\n\nThe Act provides that at least\none-half\nof amounts paid for new shares are included in common stock when they are issued. In conformity therewith, the Company has divided the principal amount of bonds converted into common stock and proceeds received from the issuance of common stock, including the exercise of warrants and stock acquisition rights, equally between common stock and additional\npaid-in\ncapital, and set off expenses related to the issuance from the additional\npaid-in\ncapital.\n\nThe amount available for dividends under the Act is calculated based on the amount recorded in the Company’s\nnon-consolidated\nfinancial statements prepared in accordance with accounting principles generally accepted in Japan. As a result, the amount available for dividends is ¥\n\n1,026,960\n\n million as of March 31, 2026.\n\nRetained earnings at March 31, 2026 include ¥\n\n182,298\n\n million relating to equity in undistributed earnings of the companies accounted or by the equity method.\n\nAs of March 31, 2026, the restricted net assets of certain subsidiaries include regulatory capital requirements mainly for banking and life insurance operations of ¥\n\n11,040\n\n million.\n\n \n\nF-1\n30\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n22. Gains on Investment Securities and Dividends\n\nGains on investment securities and dividends in fiscal 2024, 2025 and 2026 consist of the following:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nNet gains on investment securities *\n\n  \n¥\n30,731\n \n  \n¥\n11,825\n \n  \n¥\n127,024\n \n\nDividends income\n\n  \n \n2,292\n \n  \n \n2,499\n \n  \n \n1,924\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n33,023\n \n  \n¥\n14,324\n \n  \n¥\n128,948\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nUnrealized changes in fair value of investments in equity securities have been included in “Net gains on investment securities.”\n\n23. Income and Expenses Relating to Life Insurance Operations\n\nLife insurance premiums and related investment income in fiscal 2024, 2025 and 2026 consist of the following:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nLife insurance premiums\n\n  \n¥\n459,655\n \n  \n¥\n481,432\n \n  \n¥\n506,120\n \n\nLife insurance related investment income*\n\n  \n \n99,268\n \n  \n \n33,827\n \n  \n \n134,039\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n¥\n558,923\n \n  \n¥\n515,259\n \n  \n¥\n640,159\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nLife insurance related investment income in fiscal 2024, 2025 and 2026 include net unrealized holding gains of ¥43,301 million, ¥2,577 million and ¥\n\n48,946\n\n million on equity securities held as of March 31, 2024, 2025 and 2026, respectively.\n\nLife insurance premiums include reinsurance benefits, net of reinsurance premiums. For fiscal 2024, 2025 and 2026, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nReinsurance benefits\n\n  \n¥\n3,452\n \n \n¥\n10,634\n \n \n¥\n20,520\n \n\nReinsurance premiums\n\n  \n \n(4,937\n) \n \n \n(5,119\n) \n \n \n(5,298\n) \n\nLife 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 and foreign exchange contracts, entered to economically hedge a portion of the minimum guarantee risk relating to variable annuity and variable life insurance contracts. In addition, the fair value option was elected for the entire variable annuity and variable life insurance contracts to offset 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. Life insurance costs include the net amount of the changes in fair value of the variable annuity and variable life insurance contracts for which the fair value option was elected 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.\n\n \n\nF-1\n3\n1\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe 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.\n\nThe above mentioned gains or losses relating to variable annuity and variable life insurance contracts for fiscal 2024, 2025 and 2026 are mainly as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nLife insurance premiums and related investment income :\n\n  \n\n \n\n \n\nNet realized and unrealized gains or losses from investment assets\n\n  \n¥\n40,821\n \n \n¥\n(3,496\n) \n \n¥\n33,290\n \n\nNet gains or losses from derivative contract\n\ns\n\n:\n\n  \n \n(3,568\n) \n \n \n(372\n) \n \n \n(1,559\n)\n \n\nFutures\n\n  \n \n(3,046\n) \n \n \n(262\n) \n \n \n(1,433\n)\n\nForeign exchange contracts\n\n  \n \n(522\n) \n \n \n(110\n) \n \n \n(126\n)\n\nLife insurance costs :\n\n  \n\n \n\n \n\nChanges in the fair value of the policy liabilities and policy account balances\n\n  \n¥\n3,208\n \n \n¥\n(30,998\n) \n \n¥\n2,041\n \n\nInsurance costs recognized for insurance and annuity payouts as a result of insured events\n\n  \n \n26,997\n \n \n \n23,706\n \n \n \n23,553\n \n\nChanges in the fair value of the reinsurance contracts\n\n  \n \n1,890\n \n \n \n200\n \n \n \n1,423\n \n\n \n\nF-1\n32\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n24. Long-Duration Insurance Contracts Relating to Life Insurance Operations\n\nThe following tables present balances of and changes in the liability for future policy benefits as of and for the fiscal year ended March 31, 2025 and 2026.\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nMarch 31, 2025\n\n \n \n\nMarch 31, 2026\n\n \n\nPresent value of expected net premiums\n\n \n\nYen-denominated\n\ninsurance\n\n(First Sector)\n\n \n \n\nYen-denominated\n\ninsurance\n\n(Third Sector)\n\n \n \n\nForeign\ncurrency\ndenominated\ninsurance\n\n \n \n\nYen-denominated\n\ninsurance\n\n(First Sector)\n\n \n \n\nYen-denominated\n\ninsurance\n\n(Third Sector)\n\n \n \n\nForeign\ncurrency\ndenominated\ninsurance\n\n \n\nBeginning balance\n\n \n¥\n873,038\n \n \n¥\n1,306,719\n \n \n¥\n389,664\n \n \n¥\n855,431\n \n \n¥\n1,162,214\n \n \n¥\n345,932\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBeginning balance at original discount rate\n\n \n \n858,959\n \n \n \n1,289,145\n \n \n \n424,186\n \n \n \n877,300\n \n \n \n1,216,705\n \n \n \n368,846\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of changes in cash flow assumptions\n\n \n \n(9,660\n) \n \n \n(7,648\n) \n \n \n66\n \n \n \n(19,239\n)\n \n \n(18,434\n) \n \n \n(17,187\n)\n \n\nEffect of actual variances from expected experience\n\n \n \n984\n \n \n \n812\n \n \n \n(3,193\n) \n \n \n871\n \n \n \n4,687\n \n \n \n(1,017\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAdjusted beginning balance\n\n \n \n850,283\n \n \n \n1,282,309\n \n \n \n421,059\n \n \n \n858,932\n \n \n \n1,202,958\n \n \n \n350,642\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIssuances\n\n \n \n130,605\n \n \n \n34,189\n \n \n \n31,717\n \n \n \n127,215\n \n \n \n24,195\n \n \n \n29,171\n \n\nInterests\n\n \n \n10,568\n \n \n \n17,489\n \n \n \n12,323\n \n \n \n11,351\n \n \n \n16,684\n \n \n \n11,058\n \n\nNet premium earned\n\n \n \n(116,850\n) \n \n \n(116,049\n) \n \n \n(62,788\n) \n \n \n(127,464\n)\n \n \n(113,506\n)\n \n \n(63,084\n)\n\nActual variances from cash flow assumptions\n\n \n \n(437\n) \n \n \n(770\n) \n \n \n(1,231\n) \n \n \n(936\n)\n \n \n(665\n)\n \n \n(589\n)\n\nDerecognition\n\n \n \n3,131\n \n \n \n(463\n) \n \n \n(27,567\n) \n \n \n(3,720\n)\n \n \n4,952\n \n \n \n(10,539\n)\n\nEffect of changes in foreign exchange rate\n\n \n \n0\n \n \n \n0\n \n \n \n(4,667\n) \n \n \n0\n \n \n \n0\n \n \n \n22,426\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance at original discount rate\n\n \n \n877,300\n \n \n \n1,216,705\n \n \n \n368,846\n \n \n \n865,378\n \n \n \n1,134,618\n \n \n \n339,085\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of changes in discount rates\n\n \n \n(21,869\n) \n \n \n(54,491\n) \n \n \n(22,914\n) \n \n \n(61,982\n)\n \n \n(135,569\n)\n \n \n(15,470\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n \n¥\n855,431\n \n \n¥\n1,162,214\n \n \n¥\n345,932\n \n \n¥\n803,396\n \n \n¥\n999,049\n \n \n¥\n323,615\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-1\n3\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nPresent value of expected future policy\nbenefits\n\n \n\nYen-denominated\n\ninsurance\n\n(First Sector)\n\n \n \n\nYen-denominated\n\ninsurance\n\n(Third Sector)\n\n \n \n\nForeign\ncurrency\ndenominated\ninsurance\n\n \n \n\nYen-denominated\n\ninsurance\n\n(First Sector)\n\n \n \n\nYen-denominated\n\ninsurance\n\n(Third Sector)\n\n \n \n\nForeign\ncurrency\ndenominated\ninsurance\n\n \n\nBeginning balance\n\n \n¥\n1,565,877\n \n \n¥\n1,844,599\n \n \n¥\n447,081\n \n \n¥\n1,511,436\n \n \n¥\n1,659,960\n \n \n¥\n442,939\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBeginning balance at original discount rate\n\n \n \n1,658,143\n \n \n \n1,895,730\n \n \n \n659,217\n \n \n \n1,750,912\n \n \n \n1,878,075\n \n \n \n650,005\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of changes in cash flow assumptions\n\n \n \n(10,284\n) \n \n \n(8,470\n) \n \n \n81\n \n \n \n(20,056\n) \n \n \n5,429\n \n \n \n(20,141\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAdjusted beginning balance\n\n \n \n1,647,859\n \n \n \n1,887,260\n \n \n \n659,298\n \n \n \n1,730,856\n \n \n \n1,883,504\n \n \n \n629,864\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIssuances\n\n \n \n130,605\n \n \n \n34,189\n \n \n \n31,717\n \n \n \n127,215\n \n \n \n24,195\n \n \n \n29,171\n \n\nInterests\n\n \n \n24,463\n \n \n \n27,997\n \n \n \n19,385\n \n \n \n26,152\n \n \n \n28,183\n \n \n \n19,736\n \n\nInsurance claims paid\n\n \n \n(57,099\n) \n \n \n(72,044\n) \n \n \n(18,634\n) \n \n \n(61,802\n) \n \n \n(77,181\n) \n \n \n(14,131\n) \n\nActual variances from cash flow assumptions\n\n \n \n(9,571\n) \n \n \n(8,287\n) \n \n \n13,086\n \n \n \n(9,699\n) \n \n \n(2,030\n) \n \n \n6,037\n \n\nDerecognition\n\n \n \n14,655\n \n \n \n8,960\n \n \n \n(46,693\n) \n \n \n6,897\n \n \n \n15,785\n \n \n \n(19,310\n) \n\nEffect of changes in foreign exchange rate\n\n \n \n0\n \n \n \n0\n \n \n \n(8,154\n) \n \n \n0\n \n \n \n0\n \n \n \n45,312\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance at original discount rate\n\n \n \n1,750,912\n \n \n \n1,878,075\n \n \n \n650,005\n \n \n \n1,819,619\n \n \n \n1,872,456\n \n \n \n696,679\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of changes in discount rates\n\n \n \n(239,476\n) \n \n \n(218,115\n) \n \n \n(207,066\n) \n \n \n(449,036\n) \n \n \n(527,974\n) \n \n \n(201,355\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n \n¥\n1,511,436\n \n \n¥\n1,659,960\n \n \n¥\n442,939\n \n \n¥\n1,370,583\n \n \n¥\n1,344,482\n \n \n¥\n495,324\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet liability for future policy benefits\n\n \n¥\n656,005\n \n \n¥\n497,746\n \n \n¥\n97,007\n \n \n¥\n567,187\n \n \n¥\n345,433\n \n \n¥\n171,709\n \n\nDeferred profit liabilities\n\n \n \n61,448\n \n \n \n74,962\n \n \n \n37,340\n \n \n \n74,053\n \n \n \n66,559\n \n \n \n52,683\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSubtotal\n\n \n \n717,453\n \n \n \n572,708\n \n \n \n134,347\n \n \n \n641,240\n \n \n \n411,992\n \n \n \n224,392\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess: Reinsurance recoverable\n\n \n \n196\n \n \n \n0\n \n \n \n0\n \n \n \n162\n \n \n \n0\n \n \n \n0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe liability for future policy benefits, after reinsurance recoverable\n\n \n¥\n717,257\n \n \n¥\n572,708\n \n \n¥\n134,347\n \n \n¥\n641,078\n \n \n¥\n411,992\n \n \n¥\n224,392\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-13\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following tables provide the breakdown of the policy liabilities and policy account balances recorded in the consolidated balance sheets as of March 31, 2025 and 2026:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nYen-denominated\ninsurance (First Sector)\n\n  \n¥\n717,257\n \n  \n¥\n641,078\n \n\nYen-denominated\ninsurance (Third Sector)\n\n  \n \n572,708\n \n  \n \n411,992\n \n\nForeign currency denominated insurance\n\n  \n \n134,347\n \n  \n \n224,392\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSubtotal\n\n  \n \n1,424,312\n \n  \n \n1,277,462\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nPolicy account balances for single-payment whole life insurance\n\n  \n \n134,572\n \n  \n \n304,541\n \n\nFixed annuities and annuitization benefits\n\n  \n \n119,093\n \n  \n \n101,782\n \n\nPolicy account balances for variable annuity and variable life insurance contracts and market risk benefits\n\n  \n \n136,257\n \n  \n \n138,027\n \n\nOthers*\n\n  \n \n133,813\n \n  \n \n121,898\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n1,948,047\n \n  \n¥\n1,943,710\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nOthers include unearned premiums and liabilities for unpaid claims.\n\nThe amount of undiscounted and discounted expected future gross premiums and expected future policy benefits and expenses as of March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\n \n  \n\nUndiscounted\n\n \n  \n\nDiscounted\n\n \n  \n\nUndiscounted\n\n \n  \n\nDiscounted\n\n \n\nYen-denominated\ninsurance\n\n(First Sector)\n\n  \n\n  \n\n  \n\n  \n\nExpected future gross premiums\n\n  \n¥\n1,551,749\n \n  \n¥\n1,362,111\n \n  \n¥\n1,567,367\n \n  \n¥\n1,297,608\n \n\nExpected future policy benefits and expenses\n\n  \n \n2,532,638\n \n  \n \n1,511,436\n \n  \n \n2,621,312\n \n  \n \n1,370,583\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nYen-denominated\ninsurance\n\n(Third Sector)\n\n  \n\n  \n\n  \n\n  \n\nExpected future gross premiums\n\n  \n \n2,456,942\n \n  \n \n2,003,392\n \n  \n \n2,293,632\n \n  \n \n1,713,873\n \n\nExpected future policy benefits and expenses\n\n  \n \n2,552,133\n \n  \n \n1,659,960\n \n  \n \n2,637,437\n \n  \n \n1,344,482\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nForeign currency denominated insurance\n\n  \n\n  \n\n  \n\n  \n\nExpected future gross premiums\n\n  \n \n617,771\n \n  \n \n493,328\n \n  \n \n583,537\n \n  \n \n478,421\n \n\nExpected future policy benefits and expenses\n\n  \n \n1,288,727\n \n  \n \n442,939\n \n  \n \n1,340,021\n \n  \n \n495,324\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFor the fiscal year ended March 31, 2025 and 2026, the effects of net premium exceeding gross premiums in certain cohorts are immaterial in earnings for the respective periods.\n\n \n\nF-13\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe amounts of gross premiums and interest expense recognized in the consolidated statement of income for the fiscal year ended March 31, 2024, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nFiscal Year ended\nMarch 31, 2024\n\n \n  \n\nFiscal Year ended\nMarch 31, 2025\n\n \n  \n\nFiscal Year ended\nMarch 31, 2026\n\n \n\n \n  \n\nGross\npremiums\n\n \n  \n\nInterest\nexpense\n\n \n  \n\nGross\npremiums\n\n \n  \n\nInterest\nexpense\n\n \n  \n\nGross\npremiums\n\n \n  \n\nInterest\nexpense\n\n \n\nYen-denominated\ninsurance (First Sector)\n\n  \n¥\n168,805\n \n  \n¥\n13,142\n \n  \n¥\n184,650\n \n  \n¥\n13,895\n \n  \n¥\n202,621\n \n  \n¥\n14,801\n \n\nYen-denominated\ninsurance (Third Sector)\n\n  \n \n205,787\n \n  \n \n9,720\n \n  \n \n199,809\n \n  \n \n10,509\n \n  \n \n193,321\n \n  \n \n11,499\n \n\nForeign currency denominated insurance\n\n  \n \n82,332\n \n  \n \n5,243\n \n  \n \n87,400\n \n  \n \n7,062\n \n  \n \n90,734\n \n  \n \n8,679\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n456,924\n \n  \n¥\n28,105\n \n  \n¥\n471,859\n \n  \n¥\n31,466\n \n  \n¥\n486,676\n \n  \n¥\n34,979\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe weighted average discount rates for the liability for future policy benefits as of March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nWeighted average rate\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nYen-denominated\ninsurance (First Sector)\n\n  \n\n \n\nWeighted average of the original discount rates\n\n  \n \n1.8\n% \n \n \n1.9\n% \n\nWeighted average of the current discount rates\n\n  \n \n2.7\n \n \n \n4.0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nYen-denominated\ninsurance (Third Sector)\n\n  \n\n \n\nWeighted average of the original discount rates\n\n  \n \n1.7\n \n \n \n1.7\n \n\nWeighted average of the current discount rates\n\n  \n \n2.7\n \n \n \n4.2\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nForeign currency denominated insurance\n\n  \n\n \n\nWeighted average of the original discount rates\n\n  \n \n3.3\n \n \n \n3.4\n \n\nWeighted average of the current discount rates\n\n  \n \n5.9\n \n \n \n6.0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe weighted average duration of the liability for future policy benefit as of March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nYears\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nYen-denominated\ninsurance (First Sector)\n\n  \n \n35.1\n \n  \n \n30.6\n \n\nYen-denominated\ninsurance (Third Sector)\n\n  \n \n32.5\n \n  \n \n34.2\n \n\nForeign currency denominated insurance\n\n  \n \n33.5\n \n  \n \n29.5\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nAssumptions for calculating the liability for future policy benefits include assumptions related to mortality, morbidity, lapse rates and discount rates. The Company and its subsidiaries reviewed their assumptions, recognized variances between actual and forecasted results and updated the assumptions during fiscal 2025 and 2026 as follows.\n\n \n\n \n•\n \n\nYen-denominated\ninsurance (First Sector)\n\nDuring fiscal 2025 the Company and its subsidiaries updated expected mortality and lapse rates due to the higher-than-expected mortality and lapse rates.\n\n \n\nF-13\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nDuring fiscal 2026 the Company and its subsidiaries updated expected mortality and lapse rates due to the lower-than-expected mortality and the higher-than-expected lapse rates.\n\n \n\n \n•\n \n\nYen-denominated\ninsurance (Third Sector)\n\nDuring fiscal 2025 the Company and its subsidiaries updated expected mortality and lapse rates due to the higher-than-expected mortality and lapse rates. The actual morbidity excluding deemed hospitalization was lower-than-expected ever after reclassification of the legal category of\nCOVID-19\nby Japanese government. However, the relevant morbidity assumptions were not updated because the Company and its subsidiaries believe further observations are needed to determine whether such an assumption is temporary or permanent.\n\nDuring fiscal 2026 the Company and its subsidiaries updated expected mortality and lapse rates due to the higher-than-expected mortality and lapse rates. In addition, the relevant morbidity assumptions were updated because the actual morbidity excluding deemed hospitalization remained lower-than-expected ever after reclassification of the legal category of\nCOVID-19\nby Japanese government.\n\n \n\n \n•\n \n\nForeign currency denominated insurance\n\nDuring fiscal 2025 the Company and its subsidiaries updated expected mortality rates due to the different-from-expected mortality rates. In addition, lapse rates were higher-than-expected due to the impact of rapid exchange rate fluctuations. However, the relevant lapse rates were not updated because the Company and its subsidiaries believe further observations are needed to determine whether such an assumption is temporary or permanent.\n\nDuring fiscal 2026 the Company and its subsidiaries used mortality assumptions generally consistent with those of the previous fiscal year, reflecting that actual mortality was broadly in line with expectations. In addition, lapse rates were updated due to higher-than-expected lapse rates, although the impact of rapid exchange rate fluctuations has subsided.\n\nThe market data underlying the discount rate was updated quarterly for both the fiscal year ended March 31, 2025 and for fiscal 2026.\n\nFor the effect of the changes in assumptions on expected net premiums and expected future policy benefits, see “Effect of changes in cash flow assumptions” and “Effect of changes in discount rates” in the tables that represent balances of and changes in the liability for future policy benefits.\n\n \n\nF-13\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following tables present balances of and changes in the deferred policy acquisition costs as of and for the fiscal year ended March 31, 2025 and 2026:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n\n \n  \n\nYen-denominated\n\ninsurance\n\n(First Sector)\n\n \n \n\nYen-denominated\n\ninsurance\n\n(Third Sector)\n\n \n \n\nForeign\ncurrency\ndenominated\ninsurance\n\n \n \n\nSingle-\npayment\nwhole life\ninsurance\n\n \n \n\nTotal\n\n \n\nBeginning balance\n\n  \n¥\n82,341\n \n \n¥\n169,581\n \n \n¥\n53,812\n \n \n¥\n0\n \n \n¥\n305,734\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCapitalization\n\n  \n \n13,431\n \n \n \n9,180\n \n \n \n6,633\n \n \n \n6,627\n \n \n \n35,871\n \n\nAmortization\n\n  \n \n(6,411\n) \n \n \n(10,072\n) \n \n \n(2,689\n) \n \n \n(43\n) \n \n \n(19,215\n) \n\nEffect of changes in foreign exchange rate\n\n  \n \n0\n \n \n \n0\n \n \n \n(605\n) \n \n \n(137\n) \n \n \n(742\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOthers*\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n(5,808\n) \n \n \n(5,808\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n  \n¥\n89,361\n \n \n¥\n168,689\n \n \n¥\n57,151\n \n \n¥\n639\n \n \n¥\n315,840\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2026\n\n \n\n \n  \n\nYen-denominated\n\ninsurance\n\n(First Sector)\n\n \n \n\nYen-denominated\n\ninsurance\n\n(Third Sector)\n\n \n \n\nForeign\ncurrency\ndenominated\ninsurance\n\n \n \n\nSingle-\npayment\nwhole life\ninsurance\n\n \n \n\nTotal\n\n \n\nBeginning balance\n\n  \n¥\n89,361\n \n \n¥\n168,689\n \n \n¥\n57,151\n \n \n¥\n639\n \n \n¥\n315,840\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCapitalization\n\n  \n \n17,649\n \n \n \n7,784\n \n \n \n6,504\n \n \n \n7,332\n \n \n \n39,269\n \n\nAmortization\n\n  \n \n(7,120\n)\n \n \n(10,006\n)\n \n \n(3,018\n)\n \n \n(548\n)\n \n \n(20,692\n)\n\nEffect of changes in foreign exchange rate\n\n  \n \n0\n \n \n \n0\n \n \n \n4,278\n \n \n \n917\n \n \n \n5,195\n \n\nOthers*\n\n  \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n(6,720\n)\n \n \n(6,720\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n  \n¥\n99,890\n \n \n¥\n166,467\n \n \n¥\n64,915\n \n \n¥\n1,620\n \n \n¥\n332,892\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*\n\nOthers include adjustments of reinsurance.\n\nDeferred policy acquisition costs are amortized over the expected term of the policies on a constant-level basis. The assumptions used for the amortization of deferred policy acquisition costs are consistent with the assumptions for the liability for future policy benefits. The underlying assumptions for deferred policy acquisition costs and the liability for future policy benefits are updated at the same time. In addition, deferred policy acquisition costs are included in other assets in the consolidated balance sheets.\n\nThe following table presents policy account balances for single-payment whole life insurance and fixed annuity and annuitization benefits by range of minimum guaranteed interest rates as of March 31, 2025 and 2026.\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2025\n\n \n\nRange of minimum guaranteed interest rates\n\n  \n\nMinimum\nguarantees\n\n \n  \n\nAbove minimum\nguarantees\n\n \n\n \n  \n \n \n  \n\n50-150bp\n\n \n  \n\n150bp or more\n\n \n\n0.00\n\n% - less than\n\n1.50\n\n%\n\n  \n\n¥\n\n111,626\n\n \n\n \n\n¥\n\n7,421\n\n \n\n  \n\n¥\n\n127,151\n\n \n\n1.50\n\n% or more\n\n  \n\n \n\n7,467\n\n \n\n \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\nTotal\n\n  \n\n¥\n\n119,093\n\n \n\n \n\n¥\n\n7,421\n\n \n\n  \n\n¥\n\n127,151\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\nF-13\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2026\n\n \n\nRange of minimum guaranteed interest rates\n\n  \n\nMinimum\nguarantees\n\n \n\n  \n\nAbove minimum\nguarantees\n\n \n\n \n\n  \n\n \n\n \n\n  \n\n50-150bp\n\n \n\n  \n\n150bp or more\n\n \n\n0.00% - less than 1.50%\n\n  \n\n¥\n\n94,313\n\n \n\n  \n\n¥\n\n17,947\n\n \n\n  \n\n¥\n \n\n \n\n286,594\n\n \n\n1.50% or more\n\n  \n\n \n\n7,469\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n0\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n¥\n\n101,782\n\n \n\n  \n\n¥\n\n17,947\n\n \n\n  \n\n¥\n \n \n\n286,594\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nThe following table provides information about single-payment whole life insurance for the fiscal year ended March 31, 2025 and 2026.\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nBeginning balance\n\n  \n\n¥\n\n0\n\n \n\n \n\n¥\n\n134,572\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNew contract\n\n  \n\n \n\n136,863\n\n \n\n \n\n \n\n148,468\n\n \n\nSurrenders and partial surrenders\n\n  \n\n \n\n(66\n\n) \n\n \n\n \n\n(6,555\n\n) \n\nBenefit payments and lump sum payments, etc.\n\n  \n\n \n\n(49\n\n) \n\n \n\n \n\n(950\n\n) \n\nPolicy charges\n\n  \n\n \n\n(188\n\n) \n\n \n\n \n\n(2,107\n\n) \n\nInterests\n\n  \n\n \n\n1,072\n\n \n\n \n\n \n\n11,793\n\n \n\nEffect of changes in foreign exchange rate\n\n  \n\n \n\n(3,060\n\n) \n\n \n\n \n\n19,320\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nEnding balance\n\n  \n\n¥\n\n134,572\n\n \n\n \n\n¥\n\n304,541\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nWeighted average guaranteed interest rate (%)\n\n  \n\n \n\n3.9\n\n \n\n \n\n \n\n5.5\n\n \n\nBenefits in excess of policy account balances (Millions of yen)\n\n  \n\n¥\n\n0\n\n \n\n \n\n¥\n\n0\n\n \n\nCash surrender value (Millions of yen)\n\n  \n\n \n\n127,659\n\n \n\n \n\n \n\n292,731\n\n \n\nThe following table provides information about fixed annuity and annuitization benefits for the fiscal year ended March 31, 2025 and 2026.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nBeginning balance\n\n  \n¥\n138,419\n \n \n¥\n119,093\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTransfer in\n\n  \n \n9,381\n \n \n \n9,865\n \n\nSurrenders and partial surrenders\n\n  \n \n(85\n) \n \n \n(112\n)\n\nBenefit payments and lump sum payments, etc.\n\n  \n \n(28,912\n) \n \n \n(27,213\n)\n\nPolicy charges\n\n  \n \n(214\n) \n \n \n(203\n)\n\nTransfer out\n\n  \n \n(373\n) \n \n \n(393\n)\n\nInterests\n\n  \n \n895\n \n \n \n786\n \n\nOthers\n\n  \n \n(18\n) \n \n \n(41\n)\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n  \n¥\n119,093\n \n \n¥\n101,782\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nWeighted average guaranteed interest rate (%)\n\n  \n \n0.7\n \n \n \n0.7\n \n\nBenefits in excess of policy account balances (Millions of yen)\n\n  \n¥\n0\n \n \n¥\n0\n \n\nCash surrender value (Millions of yen)\n\n  \n \n113,492\n \n \n \n96,433\n \n\n \n\nF-13\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe following table provides information about policy account balances for variable annuity and variable life insurance contracts and market risk benefits as of and for the fiscal year ended March 31, 2025 and 2026:\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nBeginning balance\n\n  \n¥\n167,207\n \n \n¥\n136,257\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of changes other than through net income and other comprehensive income\n\n  \n \n(23,706\n) \n \n \n(23,553\n)\n\nSurrenders and withdrawals\n\n  \n \n(4,924\n) \n \n \n(4,881\n)\n\nTransfer in\n\n  \n \n(6,902\n) \n \n \n(7,833\n)\n\nBenefit payments\n\n  \n \n(11,851\n) \n \n \n(10,748\n)\n\nOthers\n\n  \n \n(29\n) \n \n \n(91\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nChanges through net income\n\n  \n \n(7,292\n) \n \n \n25,594\n \n\nEffect of changes in fair value of corresponding investment assets\n\n  \n \n(3,538\n) \n \n \n33,288\n \n\nFee income\n\n  \n \n(3,590\n) \n \n \n(3,397\n)\n\nEffect of changes in fair value of market risk benefits\n\n  \n \n(164\n) \n \n \n(4,297\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nChanges through other comprehensive income\n\n  \n \n48\n \n \n \n(271\n)\n \n\nEffect of changes in the instrument-specific credit risk\n\n  \n \n48\n \n \n \n(271\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEnding balance\n\n  \n¥\n136,257\n \n \n¥\n138,027\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nPolicy account balances\n\n  \n¥\n136,662\n \n \n¥\n143,000\n \n\nMarket risk benefits\n\n  \n \n(405\n) \n \n \n(4,973\n)\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n136,257\n \n \n¥\n138,027\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n25. Write-Downs of Long-Lived Assets\n\nThe 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.\n\nAs of March 31, 2025 and 2026, the long-lived assets and liabilities associated with those assets classified as held for sale in the accompanying consolidated balance sheets are as follows.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n  \n\n2025\n\n \n  \n\n2026\n\n \n\nInvestment in operating leases\n\n  \n¥\n7,230\n \n  \n¥\n69,685\n \n\nProperty under facility operations\n\n  \n \n15,217\n \n  \n \n31,883\n \n\nOffice facilities\n\n  \n \n3,558\n \n  \n \n4,291\n \n\nOther assets\n\n  \n \n22\n \n  \n \n14,405\n \n\nOther liabilities\n\n  \n \n221\n \n  \n \n18,414\n \n\n \n\n \n\nF-140\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe long-lived assets classified as held for sale as of March 31, 2025 are included in Corporate Financial Services and Maintenance Leasing segment, Real Estate segment, PE Investment and Concession segment, Environment and Energy segment and Aircraft and Ships segment. The long-lived assets classified as held for sale as of March 31, 2026 are included in Real Estate segment, PE Investment and Concession segment, Environment and Energy segment, Aircraft and Ships segment and Asia and Australia segment.\n\nThe Company and its subsidiaries determine the fair value using appraisals prepared by independent third party appraisers or our own staff of qualified appraisers, and others 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.\n\nDuring fiscal 2024, 2025 and 2026, the Company and its subsidiaries recognized impairment losses for the difference between carrying amounts and fair values in the amount of ¥1,724 million, ¥25,933 million and ¥16,242 million, respectively, which are reflected as write-downs of long-lived assets. Breakdowns of these amounts are as follows.\n\n \n\nFiscal Year ended March 31, 2024\n\n  \n\nWrite-downs of the assets\n\nheld for sale\n\n \n  \n\nWrite-downs due to decline in\nestimated future cash flows\n\n \n\n  \n\nAmount\n\n(Millions of yen)\n\n \n  \n\nThe number of\nproperties\n\n \n  \n\nAmount\n\n(Millions of yen)\n\n \n  \n\nThe number of\nproperties\n\n \n\nOffice buildings\n\n  \n¥\n0\n \n  \n \n— \n \n  \n¥\n641\n \n  \n \n2\n \n\nCommercial facilities other than office buildings\n\n  \n \n0\n \n  \n \n— \n \n  \n \n547\n \n  \n \n4\n \n\nCondominiums\n\n  \n \n0\n \n  \n \n1\n \n  \n \n30\n \n  \n \n22\n \n\nOthers*\n\n  \n \n134\n \n  \n \n— \n \n  \n \n372\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n134\n \n  \n \n— \n \n  \n¥\n1,590\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFiscal Year ended March 31, 2025\n\n  \n\nWrite-downs of the assets\n\nheld for sale\n\n \n  \n\nWrite-downs due to decline in\nestimated future cash flows\n\n \n\n  \n\nAmount\n\n(Millions of yen)\n\n \n  \n\nThe number of\nproperties\n\n \n  \n\nAmount\n\n(Millions of yen)\n\n \n  \n\nThe number of\nproperties\n\n \n\nCondominiums\n\n  \n¥\n31\n \n  \n \n20\n \n  \n¥\n0\n \n  \n \n— \n \n\nOthers*\n\n  \n \n598\n \n  \n \n— \n \n  \n \n25,304\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n629\n \n  \n \n— \n \n  \n¥\n25,304\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFiscal Year ended March 31, 2026\n\n  \n\nWrite-downs of the assets\n\nheld for sale\n\n \n  \n\nWrite-downs due to decline in\nestimated future cash flows\n\n \n\n  \n\nAmount\n\n(Millions of yen)\n\n \n  \n\nThe number of\nproperties\n\n \n  \n\nAmount\n\n(Millions of yen)\n\n \n  \n\nThe number of\nproperties\n\n \n\nCommercial facilities other than office buildings\n\n  \n¥\n28\n \n  \n \n1\n \n  \n¥\n668\n \n  \n \n1\n \n\nCondominiums\n\n  \n \n43\n \n  \n \n8\n \n  \n \n0\n \n  \n \n— \n \n\nOthers*\n\n  \n \n8,669\n \n  \n \n— \n \n  \n \n6,834\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n8,740\n \n  \n \n— \n \n  \n¥\n7,502\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nFor the “Others”, the numbers of properties are omitted. Write-downs of long-lived assets for fiscal 2025 include write-downs of property under facility operations held by certain subsidiaries, of which ¥20,030 million related to write-downs of two coal-biomass co-fired power plants.\n\n \n\nF-1\n41\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nBreakdowns of these amounts by segment are provided in Note 32 “Segment Information.”\n\n26. Per Share Data\n\nReconciliation of the differences between basic and diluted earnings per share (EPS) in fiscal 2024, 2025 and 2026 is as follows:\n\nIn fiscal 2024, 2025 and 2026, there was no stock compensation which was antidilutive.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nNet Income attributable to ORIX Corporation\nS\nhareholders\n\n  \n¥\n346,132\n \n \n¥\n351,630\n \n \n¥\n447,265\n \n\nAdjustment to Net Income\n\n  \n \n(7\n) \n \n \n(35\n) \n \n \n(96\n)\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income used to calculate basic earnings per share\n\n  \n \n346,125\n \n \n \n351,595\n \n \n \n447,169\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAdjustment to Net Income\n\n  \n \n7\n \n \n \n35\n \n \n \n96\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income used to calculate diluted earnings per share\n\n  \n¥\n346,132\n \n \n¥\n351,630\n \n \n¥\n447,265\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n  \n\nThousands of shares\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nWeighted-average shares\n\n  \n \n1,159,367\n \n \n \n1,142,503\n \n \n \n1,117,160\n \n\nEffect of dilutive securities\n\n  \n\n \n\n \n\nStock compensation\n\n  \n \n1,943\n \n \n \n2,275\n \n \n \n2,692\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nWeighted-average shares for diluted EPS computation\n\n  \n \n1,161,310\n \n \n \n1,144,778\n \n \n \n1,119,852\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n  \n\nYen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nEarnings per share for net income attributable to ORIX Corporation Shareholders:\n\n  \n\n \n\n \n\nBasic\n\n  \n¥\n298.55\n \n \n¥\n307.74\n \n \n¥\n400.27\n \n\nDiluted\n\n  \n \n298.05\n \n \n \n307.16\n \n \n \n399.40\n \n\n \n\nNote:\n\nThe Company’s shares held through the Board Incentive Plan Trust are included in the number of treasury stock to be deducted in calculation of the weighted-average shares for EPS computation (2,783,978 shares, 3,182,417 shares and 3,313,408 shares in fiscal 2024, 2025 and 2026).\n\n27. Derivative Financial Instruments and Hedging\n\nRisk management policy\n\nThe 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.\n\n \n\nF-1\n42\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe Company and its subsidiaries appropriately manage exchange rate risk by using means such as foreign currency-denominated loans, foreign exchange contracts and currency swaps to hedge exchange rate volatility in our business transactions in foreign currencies and overseas investments. A certain subsidiary holds futures and foreign exchange contracts for the purpose of economic hedges against minimum guarantee risk of variable annuity and variable life insurance contracts.\n\nBy 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.\n\nThe Company and its subsidiaries have no derivative instruments with credit-risk-related contingent features as of March 31, 2025 and 2026.\n\n(a) Cash flow hedges\n\nThe Company and its subsidiaries designate interest rate swap agreements, foreign currency swap agreements, foreign exchange contracts and forward agreements as cash flow hedges for variability of cash flows originating from floating rate borrowings and forecasted transactions and for exchange fluctuations. Net gains (losses) before deducting applicable taxes on derivative contracts were reclassified from other comprehensive income (loss) into earnings when earnings were affected by the variability in cash flows of the designated hedged item. The amounts of these net gains (losses) after deducting applicable taxes were net gain of\n \n\n¥\n2,947\n million,\n \n\nnet losses of \n\n¥\n8,866\n million and\n\nnet gains of\n\n¥\n2,062\n million during fiscal 2024, 2025 and 2026, respectively. The amount of net derivative gain, ¥\n163\n million, included in other comprehensive income (loss), net of applicable income taxes at March 31, 2026 will be reclassified into earnings within fiscal 2027.\n\n(b) Fair value hedges\n\nThe 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. A certain subsidiary designates foreign exchange contracts to minimize foreign currency exposures on bonds in foreign currencies in the insurance business. The subsidiary also uses interest rate swap agreements to hedge interest rate exposure of the fair values of bonds in foreign currencies in the insurance business.\n\n(c) Hedges of net investment in foreign operations\n\nThe Company and its subsidiaries use foreign exchange contracts and borrowings and bonds denominated in foreign currencies to hedge the foreign currency exposure of the net investment in overseas subsidiaries and equity method investments.\n\n(d) Derivatives not designated as hedging instruments\n\nThe 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 futures and foreign exchange contracts for the purpose of economic hedges against minimum guarantee risk of variable annuity and variable life insurance contracts.\n\n \n\nF-1\n4\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe effect of derivative instruments on the consolidated statements of income,\npre-tax,\nfor fiscal 2024 is as follows.\n\n(1) Cash flow hedges\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nGains (losses) recognized\n\nin other comprehensive\n\nincome on derivative\n\n \n\n \n\nGains (losses) reclassified from\n\nother comprehensive income (loss) into income\n\n \n\n \n\n \n\nLife insurance premiums\nand related investment income\n\n \n\n \n\nInterest expense\n\n \n\n \n\nOther (income) and\n\nexpense\n\n \n\nInterest rate swap agreements\n\n \n\n¥\n\n(5,090\n\n) \n\n \n\n¥\n\n0\n\n \n\n \n\n¥\n\n(114\n\n) \n\n \n\n¥\n\n0\n\n \n\nForeign exchange contracts\n\n \n\n \n\n(57\n\n) \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\nForeign currency swap agreements\n\n \n\n \n\n2,733\n\n \n\n \n\n \n\n0\n\n \n\n \n\n \n\n2,521\n\n \n\n \n\n \n\n(6,299\n\n) \n\nOptions held/written and other\n\n \n\n \n\n(1,092\n\n) \n\n \n\n \n\n(0\n\n) \n\n \n\n \n\n0\n\n \n\n \n\n \n\n0\n\n \n\n(2) Fair value hedges\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nGains (losses) recognized in income\n\non derivative and other\n\n \n \n\nGains (losses) recognized in income\n\non hedged item\n\n \n\n \n \n\nLife insurance premiums\nand related investment income\n\n \n \n\nOther (income)\nand expense\n\n \n \n\nLife insurance premiums\nand related investment income\n\n \n \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n \n¥\n(216\n) \n \n¥\n0\n \n \n¥\n335\n \n \n¥\n0\n \n\nForeign exchange contracts\n\n \n \n(61,917\n) \n \n \n(130\n) \n \n \n62,028\n \n \n \n42\n \n\n(3) Hedges of net investment in foreign operations\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized\n\nin other comprehensive\n\nincome on derivative\n\nand others\n\n \n \n\nGains (losses) reclassified from\n\nother comprehensive income (loss) into income\n\n \n\n \n \n\nGains on sales of\nsubsidiaries and equity\nmethod investments\nand liquidation losses, net\n\n \n \n\nInterest expense\n\n \n\nForeign exchange contracts\n  \n¥\n(41,341\n) \n \n¥\n(87\n) \n \n¥\n14,865\n \n\nBorrowings and bonds in foreign currencies\n\n  \n \n(97,221\n) \n \n \n0\n \n \n \n0\n \n\n(4) Derivatives not designated as hedging instruments\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized in income on derivative\n\n \n\n \n  \n\nLife insurance premiums\nand related investment income*1\n\n \n \n\nInterest\nexpense*2\n\n \n  \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n  \n¥\n0\n \n \n¥\n4\n \n  \n¥\n92\n \n\nFutures\n\n  \n \n(3,046\n) \n \n \n0\n \n  \n \n1,073\n \n\nForeign exchange contracts\n\n  \n \n40,127\n \n \n \n2,980\n \n  \n \n16,152\n \n\nCredit derivatives held/written\n\n  \n \n0\n \n \n \n0\n \n  \n \n(27\n) \n\nOptions held/written and other\n\n  \n \n0\n \n \n \n0\n \n  \n \n750\n \n\n \n\n*1\n\nFutures and foreign exchange contracts in the above table include gains (losses) arising from futures and foreign exchange contracts held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2024 (see Note 23 “Income and Expenses Relating to Life Insurance Operations”).\n\n*2\n\nThe portion of gains (losses) recognized in income on derivative arising from foreign exchange contracts that represents interest rate adjustments is recognized as interest expense.\n\n \n\nF-14\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe effect of derivative instruments on the consolidated statements of income,\npre-tax,\nfor fiscal 2025 is as follows.\n\n(1) Cash flow hedges\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized\n\nin other comprehensive\n\nincome on derivative\n\n \n \n\nGains (losses) reclassified from\n\nother comprehensive income (loss)\n\ninto income\n\n \n\n \n \n\nLife insurance premiums\nand related investment income\n\n \n  \n\nInterest expense\n\n \n \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n  \n¥\n(2,226\n) \n \n¥\n0\n \n  \n¥\n(446\n) \n \n¥\n0\n \n\nForeign exchange contracts\n\n  \n \n2,179\n \n \n \n0\n \n  \n \n694\n \n \n \n0\n \n\nForeign currency swap agreements\n\n  \n \n(10,239\n) \n \n \n0\n \n  \n \n2,977\n \n \n \n8,262\n \n\nOptions held/written and other\n\n  \n \n(8,059\n) \n \n \n14\n \n  \n \n0\n \n \n \n0\n \n\n(2) Fair value hedges\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nGains (losses) recognized in income\n\non derivative and other\n\n \n\n \n\nGains (losses) recognized in income\n\non hedged item\n\n \n\n \n\n \n\nLife insurance premiums\nand related investment income\n\n \n\n \n\nInterest\nexpense\n\n \n\n \n\nOther (income)\nand expense\n\n \n\n \n\nLife insurance premiums\nand related investment income\n\n \n\n \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n \n\n¥\n\n147\n\n \n\n \n\n¥\n\n0\n\n \n\n \n\n¥\n\n(91\n\n) \n\n \n\n¥\n\n(101\n\n) \n\n \n\n¥\n\n92\n\n \n\nForeign exchange contracts\n\n \n\n \n\n(6,028\n\n) \n\n \n\n \n\n968\n\n \n\n \n\n \n\n(1,223\n\n) \n\n \n\n \n\n6,090\n\n \n\n \n\n \n\n959\n\n \n\n(3) Hedges of net investment in foreign operations\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized\n\nin other comprehensive\n\nincome on derivative\n\nand others\n\n \n \n\nGains (losses) reclassified from\n\nother comprehensive income (loss) into income\n\n \n\n \n \n\nGains on sales of\nsubsidiaries and equity\nmethod investments\nand liquidation losses, net\n\n \n \n\nInterest expense\n\n \n\nForeign exchange contracts\n\n  \n¥\n1,488\n \n \n¥\n(15,995\n) \n \n¥\n10,597\n \n\nBorrowings and bonds in foreign currencies\n\n  \n \n(13,601\n) \n \n \n0\n \n \n \n0\n \n\n \n\nF-14\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n(4) Derivatives not designated as hedging instruments\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized in income on derivative\n\n \n\n \n  \n\nLife insurance premiums and\nrelated investment\n\nincome*1\n\n \n \n\nInterest\nexpense*2\n\n \n \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n  \n¥\n0\n \n \n¥\n0\n \n \n¥\n39\n \n\nFutures\n\n  \n \n(262\n) \n \n \n0\n \n \n \n300\n \n\nForeign exchange contracts\n\n  \n \n(10,355\n) \n \n \n(22,260\n) \n \n \n(1,910\n) \n\nCredit derivatives held/written\n\n  \n \n0\n \n \n \n0\n \n \n \n(0\n) \n\nOptions held/written and other\n\n  \n \n0\n \n \n \n0\n \n \n \n(7,399\n) \n\n \n\n*1\n\nFutures and foreign exchange contracts in the above table include gains (losses) arising from futures and foreign exchange contracts held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2025 (see Note 23 “Income and Expenses Relating to Life Insurance Operations”).\n\n*2\n\nThe portion of gains (losses) recognized in income on derivative arising from foreign exchange contracts that represents interest rate adjustments is recognized as interest expense.\n\nThe effect of derivative instruments on the consolidated statements of income,\npre-tax,\nfor fiscal 2026 is as follows.\n\n(1) Cash flow hedges\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized\n\nin other comprehensive\n\nincome on derivative\n\n \n \n\nGains (losses) reclassified from\n\nother comprehensive income (loss) into income\n\n \n\n \n \n\nLife insurance premiums\nand related investment\n\nincome\n\n \n  \n\nInterest expense\n\n \n \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n  \n¥\n7,176\n \n \n¥\n0\n \n  \n¥\n(1,186\n)\n \n¥\n   0\n \n\nForeign exchange contracts\n\n  \n \n1,141\n \n \n \n0\n \n  \n \n946\n \n \n \n(4,017\n)\n\nForeign currency swap agreements\n\n  \n \n5,447\n \n \n \n0\n \n  \n \n2,720\n \n \n \n(1,764\n) \n\nOptions held/written and other\n\n  \n \n(12,412\n)\n \n \n125\n \n  \n \n0\n \n \n \n0\n \n\n(2) Fair value hedges\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nGains (losses) recognized in income\n\non derivative and other\n\n \n \n\nGains (losses) recognized in income\n\non hedged item\n\n \n\n \n \n\nLife insurance premiums\nand related investment income\n\n \n \n\nInterest\nexpense\n\n \n \n\nOther (income)\nand expense\n\n \n \n\nLife insurance premiums\nand related investment income\n\n \n \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n \n¥\n0\n \n \n¥\n0\n \n \n¥\n(225\n) \n \n¥\n0\n \n \n¥\n(0\n) \n\nForeign exchange contracts\n\n \n \n44,810\n \n \n \n\n4,571\n\n \n \n \n9,183\n\n \n \n(44,917\n)\n \n \n(9,400\n)\n\n \n\nF-14\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n(3) Hedges of net investment in foreign operations\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized\n\nin other comprehensive\n\nincome on derivative\n\nand others\n\n \n \n\nGains (losses) reclassified from\n\nother comprehensive income (loss) into\n\nincome\n\n \n\n \n \n\nGains on sales of\n\nsubsidiaries and equity\nmethod investments\nand liquidation losses, net\n\n \n \n\nInterest expense\n\n \n\nForeign exchange contracts\n  \n¥\n(14,009\n) \n \n¥\n9,645\n \n \n¥\n8,430\n \n\nBorrowings and bonds in foreign currencies\n\n  \n \n(1,759\n)\n \n \n0\n \n \n \n0\n \n\n(4) Derivatives not designated as hedging instruments\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized in income on derivative\n\n \n\n \n  \n\nLife insurance premiums\n\nand related investment income*1\n\n \n \n\nInterest expense*2\n\n \n \n\nOther (income)\nand expense\n\n \n\nInterest rate swap agreements\n\n  \n¥\n   0\n \n \n¥\n   0\n \n \n¥\n   17\n \n\nFutures\n\n  \n \n(1,433\n)\n \n \n0\n \n \n \n2,784\n \n\nForeign exchange contracts\n\n  \n \n(30,694\n) \n \n \n(6,679\n) \n \n \n(6,308\n)\n \n\nCredit derivatives held/written\n\n  \n \n0\n \n \n \n0\n \n \n \n16\n \n\nOptions held/written and other\n\n  \n \n0\n \n \n \n0\n \n \n \n(1,630\n)\n\n \n\n*1\n\nFutures and foreign exchange contracts in the above table include gains (losses) arising from futures and foreign exchange contracts held to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts for fiscal 2026 (see Note 23 “Income and Expenses Relating to Life Insurance Operations”).\n\n*2\n\nThe portion of gains (losses) recognized in income on derivative arising from foreign exchange contracts that represents interest rate adjustments is recognized as interest expense.\n\nThe effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income,\npre-tax,\nfor fiscal 2024 is as follows.\n\nFair value hedges\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized in income\n\n \n\n \n  \n\nLife insurance premiums\nand related investment income\n\n \n \n\nInterest expense\n\n \n  \n\nOther (income)\nand expense\n\n \n\nForeign exchange contracts\n\n  \n¥\n(25,208\n) \n \n¥\n31\n \n  \n¥\n0\n \n\nOptions held/written and other\n\n  \n \n0\n \n \n \n0\n \n  \n \n57\n \n\n \n\nF-14\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income,\npre-tax,\nfor fiscal 2025 is as follows.\n\nFair value hedges\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGains (losses) recognized in income\n\n \n\n \n  \n\nLife insurance premiums\n\nand related investment income\n\n \n  \n\nInterest expense\n\n \n  \n\nOther (income)\nand expense\n\n \n\nForeign exchange contracts\n\n  \n¥\n24,143\n \n  \n¥\n14\n \n  \n¥\n   0\n \n\nOptions held/written and other\n\n  \n \n0\n \n  \n \n0\n \n  \n \n41\n \n\nThe 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 (excluding the effect of changes in foreign exchange rates) at March 31, 2025 is as follows.\n\n \n\nAssets as hedged items in fair value hedges\n\n \n \n\nLiabilities as hedged items in fair value hedges\n\n \n\n \n  \n\nMillions of yen\n\n \n \n \n \n  \n\nMillions of yen\n\n \n\nConsolidated balance\n\nsheets location\n\n  \n\nCarrying\n\namount\n\n \n  \n\nThe cumulative\namount of fair\nvalue hedging\nadjustments\nincluded in the\ncarrying amount\n\n \n \n\nConsolidated balance\n\nsheets location\n\n \n  \n\nCarrying\n\namount\n\n \n  \n\nThe cumulative\namount of fair\nvalue hedging\nadjustments\nincluded in the\ncarrying amount\n\n \n\nInvestment in Securities\n\n  \n¥\n491,447\n \n  \n¥\n   0\n \n \n \n\nLong-term Debt\n\n \n  \n¥\n28,220\n \n  \n¥\n   0\n \n\nInstallment Loans\n\n  \n \n22,451\n \n  \n \n(92\n) \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nThe effect of the components excluded from the assessment of hedge effectiveness on the consolidated statements of income,\npre-tax,\nfor fiscal 2026 is as follows.\n\nFair value hedges\n\n \n\n \n  \n\nMillions of yen\n\n \n  \n\nGains (losses) recognized in income\n\n \n  \n\nLife insurance premiums\nand related investment income\n\n \n  \n\nInterest expense\n\nForeign exchange contracts\n\n  \n¥\n17,327\n \n  \n¥(12)\n\nThe 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 (excluding the effect of changes in foreign exchange rates) at March 31, 2026 is as follows.\n\n \n\nAssets as hedged items in fair value hedges\n\n \n \n\nLiabilities as hedged items in fair value hedges\n\n \n\n \n  \n\nMillions of yen\n\n \n \n \n \n  \n\nMillions of yen\n\n \n\nConsolidated balance\n\nsheets location\n\n  \n\nCarrying\n\namount\n\n \n  \n\nThe cumulative\namount of fair\nvalue hedging\nadjustments\nincluded in the\ncarrying amount\n\n \n \n\nConsolidated balance\n\nsheets location\n\n \n  \n\nCarrying\n\namount\n\n \n  \n\nThe cumulative\namount of fair\nvalue hedging\nadjustments\nincluded in the\ncarrying amount\n\n \n\nInvestment in Securities\n\n  \n¥\n701,086\n \n  \n¥\n   10,090\n \n \n \n\nLong-term Debt\n\n \n  \n¥\n23,000\n \n  \n¥\n0\n \n\n \n\nF-14\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nNotional amounts of derivative instruments and other, fair values of derivative instruments and other before offsetting at March 31, 2025 and 2026 are as follows.\n\nMarch 31, 2025\n\n \n\n \n  \n \n \n  \n\nDerivative assets\n\n \n  \n\nDerivative liabilities\n\n \n\n \n  \n\nNotional amount\n\n \n  \n\nFair value\n\n \n  \n\nConsolidated\nbalance sheets\nlocation\n\n \n  \n\nFair value\n\n \n  \n\nConsolidated\nbalance sheets\nlocation\n\n \n\n \n  \n\nMillions\n\nof yen\n\n \n  \n\nMillions\n\nof yen\n\n \n  \n\nMillions\n\nof yen\n\n \n\nDerivatives designated as hedging instruments and other:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nInterest rate swap agreements\n\n  \n¥\n676,691\n \n  \n¥\n17,788\n \n  \n \nOther Assets\n \n  \n¥\n2,768\n \n  \n \nOther Liabilities\n \n\nOptions held/written and other\n\n  \n \n94,608\n \n  \n \n98\n \n  \n \nOther Assets\n \n  \n \n7,323\n \n  \n \nOther Liabilities\n \n\nFutures, foreign exchange contracts\n\n  \n \n932,649\n \n  \n \n9,515\n \n  \n \nOther Assets\n \n  \n \n25,445\n \n  \n \nOther Liabilities\n \n\nForeign currency swap agreements\n\n  \n \n303,060\n \n  \n \n9,570\n \n  \n \nOther Assets\n \n  \n \n159\n \n  \n \nOther Liabilities\n \n\nForeign currency long-term debt\n\n  \n \n250,702\n \n  \n \n0\n \n  \n \n— \n \n  \n \n0\n \n  \n \n— \n \n\nDerivatives not designated as hedging instruments:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nInterest rate swap agreements\n\n  \n¥\n1,477\n \n  \n¥\n81\n \n  \n \nOther Assets\n \n  \n¥\n6\n \n  \n \nOther Liabilities\n \n\nOptions held/written and other\n\n  \n \n582,939\n \n  \n \n15,669\n \n  \n \nOther Assets\n \n  \n \n6,392\n \n  \n \nOther Liabilities\n \n\nFutures, foreign exchange contracts*\n\n  \n \n1,592,590\n \n  \n \n11,449\n \n  \n \nOther Assets\n \n  \n \n13,942\n \n  \n \nOther Liabilities\n \n\nCredit derivatives written\n\n  \n \n1,000\n \n  \n \n     0\n \n  \n \n— \n \n  \n \n3\n \n  \n \nOther Liabilities\n \n\n \n\n*\n\nThe notional amounts of futures and foreign exchange contracts in the above table include futures contracts of ¥5,575 million and foreign exchange contracts of ¥2,205 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2025, respectively. Derivative assets in the above table include fair value of the futures and foreign exchange contracts before offsetting of ¥38 million and ¥38 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥57 million and ¥11 million at March 31, 2025, respectively.\n\nMarch 31, 2026\n\n \n\n \n  \n \n \n  \n\nDerivative assets\n\n \n  \n\nDerivative liabilities\n\n \n\n \n  \n\nNotional amount\n\n \n  \n\nFair value\n\n \n  \n\nConsolidated\nbalance sheets\nlocation\n\n \n  \n\nFair value\n\n \n  \n\nConsolidated\nbalance sheets\nlocation\n\n \n\n \n  \n\nMillions\n\nof yen\n\n \n  \n\nMillions\n\nof yen\n\n \n  \n\nMillions\n\nof yen\n\n \n\nDerivatives designated as hedging instruments and other:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nInterest rate swap agreements\n\n  \n¥\n615,793\n \n  \n¥\n26,273\n \n  \n \nOther Assets\n \n  \n¥\n2,287\n \n  \n \nOther Liabilities\n \n\nOptions held/written and other\n\n  \n \n76,234\n \n  \n \n0\n \n  \n \n— \n \n  \n \n15,426\n \n  \n \nOther Liabilities\n \n\nFutures, foreign exchange contracts\n\n  \n \n1,048,627\n \n  \n \n3,704\n \n  \n \nOther Assets\n \n  \n \n70,789\n \n  \n \nOther Liabilities\n \n\nForeign currency swap agreements\n\n  \n \n482,092\n \n  \n \n41,090\n \n  \n \nOther Assets\n \n  \n \n12\n \n  \n \nOther Liabilities\n \n\nForeign currency long-term debt\n\n  \n \n83,286\n \n  \n \n0\n \n  \n \n— \n \n  \n \n0\n \n  \n \n— \n \n\nDerivatives not designated as hedging instruments:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nInterest rate swap agreements\n\n  \n¥\n2,274\n \n  \n¥\n85\n \n  \n \nOther Assets\n \n  \n¥\n2\n \n  \n \nOther Liabilities\n \n\nOptions held/written and other\n\n  \n \n774,332\n \n  \n \n17,402\n \n  \n \nOther Assets\n \n  \n \n6,117\n \n  \n \nOther Liabilities\n \n\nFutures, foreign exchange contracts*\n\n  \n \n1,285,303\n \n  \n \n65,959\n \n  \n \nOther Assets\n \n  \n \n23,405\n \n  \n \nOther Liabilities\n \n\nCredit derivatives\nheld/\nwritten\n\n  \n \n1,372\n \n  \n \n0\n \n  \n \n— \n \n  \n \n23\n \n  \n \nOther Liabilities\n \n\n \n\n*\n\nThe notional amounts of futures and foreign exchange contracts in the above table include futures contracts of ¥1,741 million and foreign exchange contracts of ¥964 million to economically hedge the minimum guarantee risk of variable annuity and variable life insurance contracts at March 31, 2026, respectively. Derivative assets in the above table include fair value of the futures and foreign exchange contracts before offsetting of ¥47 million and ¥8 million and derivative liabilities include fair value of the futures and foreign exchange contracts before offsetting of ¥6 million and ¥23 million at March 31, 2026, respectively.\n\n \n\nF-14\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nThe Company and its subsidiaries have contracted credit derivatives for the purpose of trading. Details of credit derivatives written as of March 31, 2025 and 2026 are as follows.\n\nMarch 31, 2025\n\n \n\nTypes of derivatives\n\n  \n\nThe events or circumstances\nthat would require the seller\nto perform under the credit\nderivative\n\n  \n\nMaximum potential\namount of future\npayment under the\ncredit derivative\n\n \n  \n\nApproximate\nremaining term\nof the credit\nderivative\n\n  \n\nFair value of the\ncredit derivative\n\n \n\n  \n\nMillions of yen\n\n \n  \n\nMillions of yen\n\n \n\nCredit default swap\n\n  \nIn case of credit event (bankruptcy, failure to pay, restructuring) occurring in underlying reference company*\n  \n¥\n1,000\n \n  \n\nLess than\n\nthree\n years\n\n  \n¥\n(3\n) \n\n \n\n*\n\nUnderlying reference company’s credit ratings are A1 or better rated by rating agencies as of March 31, 2025.\n\nMarch 31, 2026\n\n \n\nTypes of derivatives\n\n  \n\nThe events or circumstances\nthat would require the seller\nto perform under the credit\nderivative\n\n  \n\nMaximum potential\namount of future\npayment under the\ncredit derivative\n\n \n  \n\nApproximate\nremaining term\nof the credit\nderivative\n\n  \n\nFair value of the\ncredit derivative\n\n \n\n  \n\nMillions of yen\n\n \n  \n\nMillions of yen\n\n \n\nCredit default swap\n\n  \nIn case of credit event (bankruptcy, failure to pay, restructuring) occurring in underlying reference company*\n  \n¥\n1,000\n \n  \n\nLess than\n\nt\nwo\n years\n\n  \n¥\n(2\n)\n \n\n \n\n*\n\nUnderlying reference company’s credit ratings are A1 or better rated by rating agencies as of March 31, 2026.\n\n28. Offsetting Assets and Liabilities\n\nThe gross amounts recognized, gross amounts offset, and net amounts presented in the consolidated balance sheets regarding derivative assets and liabilities as of March 31, 2025 and 2026 are as follows.\n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of\nyen\n\n \n\n \n  \n\nGross\namounts\n\nrecognized\n\n \n  \n\nGross amounts\n\noffset in the\n\nconsolidated\n\nbalance sheets\n\n \n \n\nNet amounts\n\npresented in\n\nthe consolidated\n\nbalance sheets\n\n \n  \n\nGross amounts not offset\nin the consolidated\nbalance sheets*2\n\n \n \n\nNet\namount\n\n \n\n  \n\nFinancial\n\ninstruments\n\n \n \n\nCollateral\n\nreceived/\npledged\n\n \n\nDerivative assets\n\n  \n¥\n64,170\n \n  \n¥\n(20,495\n) \n \n¥\n43,675\n \n  \n¥\n0\n \n \n¥\n(557\n) \n \n¥\n43,118\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal assets\n\n  \n¥\n64,170\n \n  \n¥\n(20,495\n) \n \n¥\n43,675\n \n  \n¥\n0\n \n \n¥\n(557\n) \n \n¥\n43,118\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDerivative liabilities\n\n  \n¥\n56,038\n \n  \n¥\n(20,495\n) \n \n¥\n35,543\n \n  \n¥\n(13,802\n) \n \n¥\n(12,777\n) \n \n¥\n8,964\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal liabilities\n\n  \n¥\n56,038\n \n  \n¥\n(20,495\n) \n \n¥\n35,543\n \n  \n¥\n(13,802\n) \n \n¥\n(12,777\n) \n \n¥\n8,964\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-1\n50\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nMarch 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nGross\namounts\n\nrecognized\n\n \n  \n\nGross amounts\n\noffset in the\n\nconsolidated\n\nbalance sheets*1\n\n \n \n\nNet amounts\n\npresented in\n\nthe consolidated\n\nbalance sheets\n\n \n  \n\nGross amounts not offset\nin the consolidated\nbalance sheets*2\n\n \n \n\nNet\namount\n\n \n\n  \n\nFinancial\n\ninstruments\n\n \n \n\nCollateral\n\nreceived/\npledged\n\n \n\nDerivative assets\n\n  \n¥\n154,513\n \n  \n¥\n(80,880\n) \n \n¥\n73,633\n \n  \n¥\n0\n \n \n¥\n(3,243\n) \n \n¥\n70,390\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal assets\n\n  \n¥\n154,513\n \n  \n¥\n(80,880\n) \n \n¥\n73,633\n \n  \n¥\n0\n \n \n¥\n(3,243\n) \n \n¥\n70,390\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDerivative liabilities\n\n  \n¥\n118,061\n \n  \n¥\n(51,256\n) \n \n¥\n66,805\n \n  \n¥\n(27,745\n) \n \n¥\n(2,109\n) \n \n¥\n36,951\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal liabilities\n\n  \n¥\n118,061\n \n  \n¥\n(51,256\n) \n \n¥\n66,805\n \n  \n¥\n(27,745\n) \n \n¥\n(2,109\n) \n \n¥\n36,951\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*1\n\nRepresents amounts offset between derivative assets and liabilities with the same counterparty, as well as cash collateral offset against net derivatives under enforceable master netting agreements or similar agreements.\n\n*2\n\nThe balances related to enforceable master netting agreements or similar agreements which were not offset in the consolidated balance sheets.\n\n29. Significant Concentrations of Credit Risk\n\nThe Company and its subsidiaries have established various policies and procedures to manage credit exposure, including initial credit approval, credit limits, collateral and guarantee requirements, obtaining rights of offset and continuous oversight. The Company and its subsidiaries’ principal financial instrument portfolio consists of investment in net investment in leases which are secured by title to the leased assets and installment loans which are secured by assets specifically collateralized in relation to loan agreements. When deemed necessary, guarantees are also obtained. The value and adequacy of the collateral are continually monitored. Consequently, the risk of credit loss from counterparties’ failure to perform in connection with collateralized financing activities is believed to be minimal. The Company and its subsidiaries have access to collateral in case of bankruptcy and other losses. However, a significant decline in real estate markets could result in a decline in fair value of the collateral real estate below the mortgage setting amount, which would expose the Company and certain subsidiaries to unsecured credit risk.\n\nAt March 31, 2025, no concentration with a single obligor exceeded 1% of the Company’s consolidated total assets. At March 31, 2026, the balance of reinsurance recoverable from the largest obligor of a certain subsidiary represents 1.7% of the Company’s consolidated total assets. With respect to the Company and its subsidiaries’ credit exposures on a geographic basis, ¥8,343 billion, or 71%, at March 31, 2025 and ¥8,695 billion, or 70%, at March 31, 2026 of the credit risks arising from all financial instruments are attributable to customers located in Japan. The largest concentration of credit risk outside of Japan is exposure attributable to obligors located in the Americas. The gross amount of such exposure is ¥1,389 billion and ¥1,589 billion as of March 31, 2025 and 2026, respectively.\n\nThe Company and its subsidiaries have transportation equipment such as automobile operations and aircraft. Transportation equipment is mainly recorded in investment in net investment in leases and operating leases. In connection with investment in net investment in leases and operating leases, the percentage of investment in transportation equipment to consolidated total assets is 10.9% and 10.8% as of March 31, 2025 and 2026, respectively.\n\nThe Company and its subsidiaries provide consumers with real estate loans. In connection with installment loans, the percentage of real estate loans for consumers to consolidated total assets is 11.6% and 11.3% as of March 31, 2025 and 2026, respectively.\n\n \n\nF-1\n51\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n30. Estimated Fair Value of Financial Instruments\n\nThe following information is provided to help readers gain an understanding of the relationship between carrying amounts 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, equity method investments, pension obligations and insurance contracts and reinsurance contracts except for those classified as investment contracts.\n\nMarch 31, 2025\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nCarrying\n\namount\n\n \n  \n\nEstimated\n\nfair value\n\n \n  \n\nLevel 1\n\n \n  \n\nLevel 2\n\n \n  \n\nLevel 3\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nCash and cash equivalents\n\n  \n¥\n1,206,573\n \n  \n¥\n1,206,573\n \n  \n¥\n1,206,573\n \n  \n¥\n0\n \n  \n¥\n0\n \n\nRestricted cash\n\n  \n \n115,410\n \n  \n \n115,410\n \n  \n \n115,410\n \n  \n \n0\n \n  \n \n0\n \n\nInstallment loans (net of allowance for credit losses)\n\n  \n \n4,043,271\n \n  \n \n4,018,629\n \n  \n \n0\n \n  \n \n42,940\n \n  \n \n3,975,689\n \n\nEquity securities*1\n\n  \n \n418,690\n \n  \n \n418,690\n \n  \n \n137,014\n \n  \n \n119,466\n \n  \n \n162,210\n \n\nAvailable-for-sale\n\ndebt securities\n\n  \n \n2,607,637\n \n  \n \n2,607,637\n \n  \n \n12,243\n \n  \n \n2,377,740\n \n  \n \n217,654\n \n\nOther Assets:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nTime deposits\n\n  \n \n1,400\n \n  \n \n1,400\n \n  \n \n0\n \n  \n \n1,400\n \n  \n \n0\n \n\nDerivative assets*2\n\n  \n \n43,675\n \n  \n \n43,675\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nReinsurance recoverables (Investment contracts)\n\n  \n \n138,441\n \n  \n \n126,480\n \n  \n \n0\n \n  \n \n0\n \n  \n \n126,480\n \n\nLiabilities:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nShort-term debt\n\n  \n¥\n549,680\n \n  \n¥\n549,680\n \n  \n¥\n0\n \n  \n¥\n549,680\n \n  \n¥\n0\n \n\nDeposits\n\n  \n \n2,280,597\n \n  \n \n2,279,207\n \n  \n \n0\n \n  \n \n2,279,207\n \n  \n \n0\n \n\nPolicy liabilities and Policy account balances (Investment contracts)\n\n  \n \n237,702\n \n  \n \n214,937\n \n  \n \n0\n \n  \n \n0\n \n  \n \n214,937\n \n\nLong-term debt\n\n  \n \n5,733,118\n \n  \n \n5,678,828\n \n  \n \n0\n \n  \n \n1,705,485\n \n  \n \n3,973,343\n \n\nAccounts payable (Contingent consideration)\n\n  \n \n15,259\n \n  \n \n15,259\n \n  \n \n0\n \n  \n \n0\n \n  \n \n15,259\n \n\nOther Liabilities\n:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nDerivative liabilities*2\n\n  \n \n35,543\n \n  \n \n35,543\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\n \n\n*1\n\nThe amount of ¥118,666 million of investment funds measured at net asset value per share is not included.\n\n*2\n\nIt represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 “Fair Value Measurements.”\n\n \n\nF-1\n52\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nMarch 31, 2026\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nCarrying\n\namount\n\n \n  \n\nEstimated\n\nfair value\n\n \n  \n\nLevel 1\n\n \n  \n\nLevel 2\n\n \n  \n\nLevel 3\n\n \n\nAssets:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nCash and cash equivalents\n\n  \n¥\n1,334,945\n \n  \n¥\n1,334,945\n \n  \n¥\n1,334,945\n \n  \n¥\n         0\n \n  \n¥\n        0\n \n\nRestricted cash\n\n  \n \n116,154\n \n  \n \n116,154\n \n  \n \n116,154\n \n  \n \n0\n \n  \n \n0\n \n\nInstallment loans (net of allowance for credit losses)\n\n  \n \n4,118,777\n \n  \n \n4,089,785\n \n  \n \n0\n \n  \n \n50,013\n \n  \n \n4,039,772\n \n\nEquity securities*1\n\n  \n \n501,246\n \n  \n \n501,246\n \n  \n \n150,194\n \n  \n \n120,456\n \n  \n \n230,596\n \n\nAvailable-for-sale\n\ndebt securities\n\n  \n \n2,526,416\n \n  \n \n2,526,416\n \n  \n \n7,278\n \n  \n \n2,243,137\n \n  \n \n276,001\n \n\nOther Assets:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nTime deposits\n\n  \n \n1,924\n \n  \n \n1,924\n \n  \n \n0\n \n  \n \n1,924\n \n  \n \n0\n \n\nDerivative assets*2\n\n  \n \n73,633\n \n  \n \n73,633\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nReinsurance recoverables (Investment contracts)\n\n  \n \n307,733\n \n  \n \n277,544\n \n  \n \n0\n \n  \n \n0\n \n  \n \n277,544\n \n\nLiabilities:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nShort-term debt\n\n  \n¥\n572,235\n \n  \n¥\n572,235\n \n  \n¥\n0\n \n  \n¥\n572,235\n \n  \n¥\n0\n \n\nDeposits\n\n  \n \n2,439,459\n \n  \n \n2,449,230\n \n  \n \n0\n \n  \n \n2,449,230\n \n  \n \n0\n \n\nPolicy liabilities and Policy account balances (Investment contracts)\n\n  \n \n390,523\n \n  \n \n331,178\n \n  \n \n0\n \n  \n \n0\n \n  \n \n331,178\n \n\nLong-term debt\n\n  \n \n5,965,759\n \n  \n \n5,889,035\n \n  \n \n0\n \n  \n \n1,777,695\n \n  \n \n4,111,340\n \n\nAccounts payable (Contingent consideration)\n\n  \n \n15,683\n \n  \n \n15,683\n \n  \n \n0\n \n  \n \n0\n \n  \n \n15,683\n \n\nOther Liabilities\n:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nDerivative liabilities*2\n\n  \n \n66,805\n \n  \n \n66,805\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\n \n\n*1\n\nThe amount of ¥168,854 million of investment funds measured at net asset value per share is not included.\n\n*2\n\nIt represents the amount after offset under counterparty netting of derivative assets and liabilities. For the information of input level before netting, see Note 2 “Fair Value Measurements.”\n\nInput level of fair value measurement\n\nIf 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.\n\n31. Commitments, Guarantees and Contingent Liabilities\n\nCommitments\n\n—The Company and certain subsidiaries have unconditional purchase obligation related to lease agreements, having a cost of ¥11,491 million and ¥23,487 million as of March 31, 2025 and 2026, respectively.\n\nCertain computer systems of the Company and certain subsidiaries have been operated and maintained under\nnon-cancelable\ncontracts with third-party service providers. For such services, the Company and certain\n\n \n\nF-1\n5\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nsubsidiaries made payments totaling ¥9,348 million, ¥10,896 million and\n \n\n¥\n11,192 million in fiscal 2024, 2025 and 2026, respectively. The longest contract of them will mature in fiscal 2031. As of March 31, 2025 and 2026, the amounts due are as follows:\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nYears ending March 31,\n\n  \n\nMillions of yen\n\n \n  \n\nMillions of yen\n\n \n\n2026\n\n  \n \n5,809\n \n  \n \n— \n \n\n2027\n\n  \n \n4,618\n \n  \n \n8,029\n \n\n2028\n\n  \n \n2,884\n \n  \n \n5,359\n \n\n2029\n\n  \n \n106\n \n  \n \n1,382\n \n\n2030\n\n  \n \n51\n \n  \n \n802\n \n\n2031\n\n  \n \n— \n \n  \n \n208\n \n\nOn or after 2031\n\n  \n \n1\n \n  \n \n— \n \n\nOn or after 2032\n\n  \n \n— \n \n  \n \n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n13,469\n \n  \n¥\n15,780\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe 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 ¥143,120 million and ¥144,135 million as of March 31, 2025 and 2026, respectively.\n\nThe 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. As of March 31, 2025 and 2026, the total unused credit and capital amount available are ¥437,496 million and ¥567,563 million respectively.\n\nBalance undrawn from the total amount of commitment to be used in accordance with the terms and conditions of relevant agreements to an equity method investee relating to the development of integrated resort was ¥270,168 \n\nmillion and ¥335,868 million as of March 31, 2025 and March 31, 2026.\n\nWe will execute the amount of commitment depending on changes in circumstances such as the progress of the development.\n\nGuarantees\n\n—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 that is within the scope of ASC 460 (“Guarantees”). Some of these guarantees, whose contractual obligations cannot be unconditionally cancelled, are in the scope of the Credit Loss Standard and are recognized as other liabilities in the consolidated balance sheets. 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, 2025 and 2026:\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\n \n  \n\nMillions of yen\n\n \n  \n\nFiscal year\n\n \n  \n\nMillions of yen\n\n \n  \n\nFiscal year\n\n \n\nGuarantees\n\n  \n\nPotential\n\nfuture\n\npayment\n\n \n  \n\nBook\n\nvalue of\n\nguarantee\n\nliabilities\n\n \n  \n\nMaturity\nof the\nlongest\n\ncontract\n\n \n  \n\nPotential\n\nfuture\n\npayment\n\n \n  \n\nBook\n\nvalue of\n\nguarantee\n\nliabilities\n\n \n  \n\nMaturity of the\nlongest\n\ncontract\n\n \n\nCorporate loans\n\n  \n¥\n558,862\n \n  \n¥\n5,223\n \n  \n \n2031\n \n  \n¥\n614,247\n \n  \n¥\n5,958\n \n  \n \n2033\n \n\nTransferred loans\n\n  \n \n543,453\n \n  \n \n6,918\n \n  \n \n2062\n \n  \n \n609,536\n \n  \n \n13,760\n \n  \n \n2062\n \n\nReal estate loans *\n\n  \n \n8,408\n \n  \n \n135\n \n  \n \n2048\n \n  \n \n6,524\n \n  \n \n0\n \n  \n \nUndetermined\n \n\nOther\n\n  \n \n13,261\n \n  \n \n0\n \n  \n \n2044\n \n  \n \n18,225\n \n  \n \n0\n \n  \n \n2043\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n1,123,984\n \n  \n¥\n12,276\n \n  \n \n— \n \n  \n¥\n1,248,532\n \n  \n¥\n19,718\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n*\n\nThe maturity of the longest contract of the real estate loan guarantee contracts as of March 31, 2026 is not determinable, as the timing of completion of the mortgage\nregistration\ncannot be determined.\n\n \n\nF-15\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nGuarantee of corporate loans:\n\nThe 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, 2025 and 2026, total notional amount of the loans subject to such guarantees are ¥469,000 million and ¥446,000 million, respectively, and book value of guarantee liabilities are ¥2,474 million and ¥2,448 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. 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. In addition, the Company provides\nre-guarantees\nfor guarantee obligations guaranteed by equity method investees.\n\nPayment 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 in fiscal 2026.\n\nGuarantee of transferred loans:\n\nA subsidiary in the United States is authorized to underwrite, originate, fund, and service multi-family and seniors housing loans without prior approval mainly from Fannie Mae under the Delegated Underwriting and Servicing program and Freddie Mac under the Delegated Underwriting Initiative program. As part of these programs, Fannie Mae and Freddie Mac provide a commitment to purchase the loans.\n\nUnder these programs, the subsidiary guarantees the performance of the loans transferred to Fannie Mae and Freddie Mac 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 in fiscal 2026.\n\nAs of March 31, 2025 and 2026, 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 ¥2,683,671 million and ¥2,996,771 million, respectively.\n\nGuarantee of real estate loans:\n\nAs of March 31, 2025, real estate loan guarantees primarily consisted of transactions in which the Company and certain subsidiaries guarantee the repayment of residential real estate loans extended by Japanese financial institutions to third-party individuals. In the event that such loans become delinquent for generally three months or more, the Company and the relevant subsidiaries perform the obligations on behalf of the borrowers. These loans are typically secured by the underlying real estate, and, upon performance of the obligations, the Company and the relevant subsidiaries obtain the collateral assets. As of March 31, 2026, real estate loan guarantees primarily consist of transactions in which a subsidiary guarantees the repayment of residential real estate loans extended by Japanese financial institutions to third parties, including\n\n \n\nF-15\n5\n\n[Table of Contents](#toc)\n\nNOTES TO\nCONSOLIDATED\nFINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nguarantees for mortgage loans extended to\nindividuals\nuntil the completion of the mortgage registration related to the underlying real estate.\n\nPayment or performance risk of the guarantees is considered based on the historical experience of credit events.\nThere\nwere no significant changes in the payment or performance risk of the guarantees in fiscal 2026.\n\nOther guarantees:\n\nOther 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. In addition to the above, joint guarantees for payment obligations of equity method investees are included.\n\nAllowance for\noff-balance\nsheet credit exposures\n\n—If the entity has a present contractual obligation to extend credit and the obligation is not unconditionally cancelable by the entity, credit losses related the loan commitments of installment loans and financial guarantees are in the scope of the allowance for credit losses. For the loan commitments of installment loans, credit losses are recognized on the loan commitments for the portion expected to be drawn. For financial guarantees, the allowance is recognized for the contingent obligation which generates credit risk exposures. The allowance for\noff-balance\nsheet credit exposures is measured using the same measurement methodologies as the allowance for loans and net investment leases, considering quantitative and qualitative factors including historical loss experience, current economic and business conditions and reasonable and supportable forecasts. The allowance for\noff-balance\nsheet credit exposure is recorded as other liabilities in the consolidated balance sheets and the allowance were ¥9,766 million and ¥\n\n17,676\n\n million as of March 31, 2025 and 2026, respectively. Additionally, the provision for credit losses in the consolidated statements of income in fiscal 2025 was ¥5,297 million, which was mainly due to the deterioration in macroeconomic forecasts in certain markets in the Americas compared with the previous year. The provision for credit losses in the consolidated statements of income in fiscal 2026 was ¥\n\n7,211\n\n \n\nmillion, which was mainly due to the recognition of credit losses on certain commercial loans.\n\nContingencies\n\n—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.\n\n32. Segment Information\n\nThe Group CEO, who is the Company’s\nChief Operating Decision Maker (“CODM”)\n, regularly reviews the amounts equivalent to income before income taxes attributable to ORIX Corporation Shareholders for each business segment with available financial information in order to allocate resources and assess performance.\n\nBased on our business management organization which is classified by the nature of major products and services, customer base, regulations, and business areas, our business is organized into ten operating segments: Corporate Financial Services and Maintenance Leasing, Real Estate, PE Investment and Concession, Environment and Energy, Insurance, Banking and Credit, Aircraft and Ships, ORIX USA, ORIX Europe, and Asia and Australia.\n\n \n\nF-15\n6\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nAn overview of operations for each of the ten segments follows below.\n\n \n\nCorporate Financial Services and Maintenance Leasing\n\n  \n \n:\n \n  \nFinance and fee business; leasing and rental of automobiles, electronic measuring instruments\n,\nand\nICT-related\nequipment\n\nReal Estate\n\n  \n \n:\n \n  \nReal estate development, rental and management; facility operations; real estate asset management\n\nPE Investment and Concession\n\n  \n \n:\n \n  \nPrivate equity investment and concession\n\nEnvironment and Energy\n\n  \n \n:\n \n  \nDomestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels; recycling and waste management\n\nInsurance\n\n  \n \n:\n \n  \nLife insurance\n\nBanking and Credit\n\n  \n \n:\n \n  \nBanking and consumer finance\n\nAircraft and Ships\n\n  \n \n:\n \n  \nAircraft investment and management; ship-related finance and investment, maritime asset management and ship brokerage\n\nORIX USA\n\n  \n \n:\n \n  \nFinance, investment and asset management in the Americas\n\nORIX Europe\n\n  \n \n:\n \n  \nAsset management of global equity and fixed income\n\nAsia and Australia\n\n  \n \n:\n \n  \nFinance and investment businesses in Asia and Australia\n\nThe accounting policies of the segments are almost the same as those described in Note 1 “Significant Accounting and Reporting Policies” except for the treatment of income tax expenses, net income attributable to noncontrolling interests, and net income attributable to redeemable noncontrolling interests. The chief operating decision maker evaluates segment performance based on the amount equivalent to income before income taxes attributable to ORIX Corporation Shareholders. Therefore, net income attributable to noncontrolling interests, net income attributable to redeemable noncontrolling interests, and income tax expenses are not included in segment profit or loss. Most of selling, general and administrative expenses, including compensation costs that are directly related to the revenue generating activities of each segment and excluding the expenses that should be borne by ORIX Group as a whole, have been accumulated by and charged to each segment. Gains and losses that management does not consider for evaluating the performance of the segments, such as certain interest expenses and certain foreign exchange gains or losses (included in other (income) and expense) are excluded from the segment profits or losses, and are regarded as corporate items.\n\nAssets attributed to each segment are total assets except for certain cash and head office assets.\n\n \n\nF-15\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nSegment information for fiscal 2024, 2025 and 2026 is as follows:\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2024\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal\nEstate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nFinance revenues\n\n \n¥\n61,428\n \n \n¥\n6,134\n \n \n¥\n6,679\n \n \n¥\n1,478\n \n \n¥\n300\n \n \n¥\n80,653\n \n \n¥\n7,769\n \n\nGains on investment securities and dividends\n\n \n \n2,626\n \n \n \n857\n \n \n \n1,207\n \n \n \n1,784\n \n \n \n0\n \n \n \n600\n \n \n \n(130\n) \n\nOperating leases\n\n \n \n266,871\n \n \n \n50,205\n \n \n \n41,529\n \n \n \n79\n \n \n \n0\n \n \n \n0\n \n \n \n48,074\n \n\nLife insurance premiums and related investment income\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n561,533\n \n \n \n0\n \n \n \n0\n \n\nSales of goods and real estate\n\n \n \n3,934\n \n \n \n111,013\n \n \n \n249,085\n \n \n \n3,771\n \n \n \n0\n \n \n \n0\n \n \n \n97\n \n\nServices income\n\n \n \n110,100\n \n \n \n303,483\n \n \n \n80,668\n \n \n \n158,486\n \n \n \n2,036\n \n \n \n7,321\n \n \n \n9,381\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Revenues\n\n \n \n444,959\n \n \n \n471,692\n \n \n \n379,168\n \n \n \n165,598\n \n \n \n563,869\n \n \n \n88,574\n \n \n \n65,191\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nInterest expense\n\n \n \n5,418\n \n \n \n3,016\n \n \n \n2,978\n \n \n \n11,093\n \n \n \n14\n \n \n \n5,302\n \n \n \n11,596\n \n\nCosts of operating leases\n\n \n \n192,850\n \n \n \n24,972\n \n \n \n26,244\n \n \n \n18\n \n \n \n0\n \n \n \n0\n \n \n \n18,853\n \n\nLife insurance costs\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n433,827\n \n \n \n0\n \n \n \n0\n \n\nCosts of goods and real estate sold\n\n \n \n3,234\n \n \n \n90,931\n \n \n \n168,404\n \n \n \n2,236\n \n \n \n0\n \n \n \n0\n \n \n \n96\n \n\nServices expense\n\n \n \n58,896\n \n \n \n248,195\n \n \n \n58,677\n \n \n \n110,106\n \n \n \n0\n \n \n \n6,254\n \n \n \n1,783\n \n\nOther (income) and expense *\n\n \n \n14,896\n \n \n \n722\n \n \n \n(2,330\n) \n \n \n(4,633\n) \n \n \n98\n \n \n \n(306\n) \n \n \n(3,600\n) \n\nSelling, general and administrative expenses\n\n \n \n88,621\n \n \n \n41,542\n \n \n \n89,864\n \n \n \n18,670\n \n \n \n59,309\n \n \n \n32,886\n \n \n \n10,345\n \n\nProvision for credit losses, and write-downs of long-lived assets and securities\n\n \n \n960\n \n \n \n1,285\n \n \n \n366\n \n \n \n151\n \n \n \n(2\n) \n \n \n4,064\n \n \n \n3\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Expenses\n\n \n \n364,875\n \n \n \n410,663\n \n \n \n344,203\n \n \n \n137,641\n \n \n \n493,246\n \n \n \n48,200\n \n \n \n39,076\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEquity in Net income (Loss) of equity method investments and others\n\n \n \n3,160\n \n \n \n6,026\n \n \n \n9,002\n \n \n \n10,115\n \n \n \n203\n \n \n \n56,979\n \n \n \n18,251\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Profits\n\n \n \n83,244\n \n \n \n67,055\n \n \n \n43,967\n \n \n \n38,072\n \n \n \n70,826\n \n \n \n97,353\n \n \n \n44,366\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSignificant\nnon-cash\nitems:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n \n153,208\n \n \n \n18,376\n \n \n \n26,644\n \n \n \n23,975\n \n \n \n17,138\n \n \n \n1,821\n \n \n \n20,366\n \n\nIncrease in policy liabilities and policy account balances\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n186,193\n \n \n \n0\n \n \n \n0\n \n\nBargain purchase gain\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nImpairment of goodwill and intangible assets\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nExpenditures for long-lived assets\n\n \n \n184,794\n \n \n \n57,828\n \n \n \n20,345\n \n \n \n54,959\n \n \n \n350\n \n \n \n12\n \n \n \n174,525\n \n\n \n\nF-15\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2024\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX Europe\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nFinance revenues\n\n \n¥\n112,545\n \n \n¥\n2,409\n \n \n¥\n70,836\n \n \n¥\n350,231\n \n\nGains on investment securities and dividends\n\n \n \n6,446\n \n \n \n10,711\n \n \n \n7,885\n \n \n \n31,986\n \n\nOperating leases\n\n \n \n1,225\n \n \n \n0\n \n \n \n122,624\n \n \n \n530,607\n \n\nLife insurance premiums and related investment income\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n561,533\n \n\nSales of goods and real estate\n\n \n \n602\n \n \n \n0\n \n \n \n425\n \n \n \n368,927\n \n\nServices income\n\n \n \n52,608\n \n \n \n214,031\n \n \n \n23,523\n \n \n \n961,637\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Revenues\n\n \n \n173,426\n \n \n \n227,151\n \n \n \n225,293\n \n \n \n2,804,921\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nInterest expense\n\n \n \n47,466\n \n \n \n289\n \n \n \n35,737\n \n \n \n122,909\n \n\nCosts of operating leases\n\n \n \n547\n \n \n \n0\n \n \n \n90,336\n \n \n \n353,820\n \n\nLife insurance costs\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n433,827\n \n\nCosts of goods and real estate sold\n\n \n \n310\n \n \n \n0\n \n \n \n400\n \n \n \n265,611\n \n\nServices expense\n\n \n \n4,331\n \n \n \n54,224\n \n \n \n15,039\n \n \n \n557,505\n \n\nOther (income) and expense *\n\n \n \n(2,078\n) \n \n \n2,666\n \n \n \n(1,490\n) \n \n \n3,945\n \n\nSelling, general and administrative expenses\n\n \n \n85,483\n \n \n \n130,496\n \n \n \n41,558\n \n \n \n598,774\n \n\nProvision for credit losses, and write-downs of long-lived assets and securities\n\n \n \n7,937\n \n \n \n217\n \n \n \n8,027\n \n \n \n23,008\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Expenses\n\n \n \n143,996\n \n \n \n187,892\n \n \n \n189,607\n \n \n \n2,359,399\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEquity in Net income (Loss) of equity method investments and others\n\n \n \n(1,499\n) \n \n \n2,379\n \n \n \n11,383\n \n \n \n115,999\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Profits\n\n \n \n27,931\n \n \n \n41,638\n \n \n \n47,069\n \n \n \n561,521\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSignificant\nnon-cash\nitems:\n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n \n2,872\n \n \n \n7,003\n \n \n \n87,422\n \n \n \n358,825\n \n\nIncrease in policy liabilities and policy account balances\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n186,193\n \n\nBargain purchase gain\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nImpairment of goodwill and intangible assets\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nExpenditures for long-lived assets\n\n \n \n184\n \n \n \n388\n \n \n \n171,184\n \n \n \n664,569\n \n\n \n\n*\n\nOther (income) and expense includes items such as expenses of taxes and insurance premiums related to finance leases, impairment of goodwill and intangible assets, gains and losses on derivatives, and foreign exchange gains and losses.\n\n \n\n \n\nF-15\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2025\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal\nEstate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nFinance revenues\n\n \n¥\n63,271\n \n \n¥\n4,860\n \n \n¥\n12,140\n \n \n¥\n1,402\n \n \n¥\n280\n \n \n¥\n60,290\n \n \n¥\n5,769\n \n\nGains on investment securities and dividends\n\n \n \n2,647\n \n \n \n1,282\n \n \n \n851\n \n \n \n3,128\n \n \n \n0\n \n \n \n100\n \n \n \n(24\n) \n\nOperating leases\n\n \n \n282,433\n \n \n \n61,321\n \n \n \n42,698\n \n \n \n79\n \n \n \n0\n \n \n \n0\n \n \n \n96,856\n \n\nLife insurance premiums and related investment income\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n518,084\n \n \n \n0\n \n \n \n0\n \n\nSales of goods and real estate\n\n \n \n4,202\n \n \n \n107,859\n \n \n \n252,969\n \n \n \n3,307\n \n \n \n0\n \n \n \n0\n \n \n \n852\n \n\nServices income\n\n \n \n108,146\n \n \n \n322,458\n \n \n \n69,273\n \n \n \n178,105\n \n \n \n(1\n) \n \n \n2,914\n \n \n \n16,139\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Revenues\n\n \n \n460,699\n \n \n \n497,780\n \n \n \n377,931\n \n \n \n186,021\n \n \n \n518,363\n \n \n \n63,304\n \n \n \n119,592\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nInterest expense\n\n \n \n7,306\n \n \n \n2,616\n \n \n \n3,833\n \n \n \n13,170\n \n \n \n256\n \n \n \n7,184\n \n \n \n20,159\n \n\nCosts of operating leases\n\n \n \n201,286\n \n \n \n24,167\n \n \n \n26,389\n \n \n \n18\n \n \n \n0\n \n \n \n0\n \n \n \n40,986\n \n\nLife insurance costs\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n384,910\n \n \n \n0\n \n \n \n0\n \n\nCosts of goods and real estate sold\n\n \n \n3,335\n \n \n \n89,593\n \n \n \n173,652\n \n \n \n1,786\n \n \n \n0\n \n \n \n0\n \n \n \n864\n \n\nServices expense\n\n \n \n57,372\n \n \n \n264,952\n \n \n \n48,890\n \n \n \n136,118\n \n \n \n0\n \n \n \n7,590\n \n \n \n6,724\n \n\nOther (income) and expense *\n\n \n \n18,305\n \n \n \n1,664\n \n \n \n10,622\n \n \n \n446\n \n \n \n(110\n) \n \n \n40\n \n \n \n68\n \n\nSelling, general and administrative expenses\n\n \n \n89,599\n \n \n \n43,405\n \n \n \n88,370\n \n \n \n22,582\n \n \n \n58,904\n \n \n \n20,822\n \n \n \n11,967\n \n\nProvision for credit losses, and write-downs of long-lived assets and securities\n\n \n \n2,199\n \n \n \n3,098\n \n \n \n1,743\n \n \n \n20,573\n \n \n \n4\n \n \n \n(176\n) \n \n \n3\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Expenses\n\n \n \n379,402\n \n \n \n429,495\n \n \n \n353,499\n \n \n \n194,693\n \n \n \n443,964\n \n \n \n35,460\n \n \n \n80,771\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEquity in Net income (Loss) of equity method investments and others\n\n \n \n9,032\n \n \n \n2,256\n \n \n \n74,440\n \n \n \n3,749\n \n \n \n(0\n) \n \n \n1,447\n \n \n \n28,599\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Profits\n\n \n \n90,329\n \n \n \n70,541\n \n \n \n98,872\n \n \n \n(4,923\n) \n \n \n74,399\n \n \n \n29,291\n \n \n \n67,420\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSignificant\nnon-cash\nitems:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n \n158,166\n \n \n \n18,992\n \n \n \n25,053\n \n \n \n33,457\n \n \n \n24,219\n \n \n \n571\n \n \n \n30,808\n \n\nIncrease in policy liabilities and policy account balances\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n268,258\n \n \n \n0\n \n \n \n0\n \n\nBargain purchase gain\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nImpairment of goodwill and intangible assets\n\n \n \n0\n \n \n \n0\n \n \n \n11,149\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nExpenditures for long-lived assets\n\n \n \n211,006\n \n \n \n78,824\n \n \n \n14,594\n \n \n \n50,720\n \n \n \n116\n \n \n \n20\n \n \n \n300,251\n \n\n \n\nF-1\n60\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2025\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX Europe\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nFinance revenues\n\n \n¥\n102,627\n \n \n¥\n4,077\n \n \n¥\n74,961\n \n \n¥\n329,677\n \n\nGains on investment securities and dividends\n\n \n \n119\n \n \n \n4,408\n \n \n \n1,933\n \n \n \n14,444\n \n\nOperating leases\n\n \n \n861\n \n \n \n0\n \n \n \n135,169\n \n \n \n619,417\n \n\nLife insurance premiums and related investment income\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n518,084\n \n\nSales of goods and real estate\n\n \n \n543\n \n \n \n0\n \n \n \n751\n \n \n \n370,483\n \n\nServices income\n\n \n \n50,078\n \n \n \n248,782\n \n \n \n23,406\n \n \n \n1,019,300\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Revenues\n\n \n \n154,228\n \n \n \n257,267\n \n \n \n236,220\n \n \n \n2,871,405\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nInterest expense\n\n \n \n40,016\n \n \n \n665\n \n \n \n41,761\n \n \n \n136,966\n \n\nCosts of operating leases\n\n \n \n1,496\n \n \n \n0\n \n \n \n97,249\n \n \n \n391,591\n \n\nLife insurance costs\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n384,910\n \n\nCosts of goods and real estate sold\n\n \n \n307\n \n \n \n0\n \n \n \n684\n \n \n \n270,221\n \n\nServices expense\n\n \n \n2,823\n \n \n \n66,446\n \n \n \n14,710\n \n \n \n605,625\n \n\nOther (income) and expense *\n\n \n \n(3,382\n) \n \n \n4,231\n \n \n \n(5,654\n) \n \n \n26,230\n \n\nSelling, general and administrative expenses\n\n \n \n95,406\n \n \n \n138,859\n \n \n \n44,342\n \n \n \n614,256\n \n\nProvision for credit losses, and write-downs of long-lived assets and securities\n\n \n \n7,669\n \n \n \n115\n \n \n \n9,983\n \n \n \n45,211\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Expenses\n\n \n \n144,335\n \n \n \n210,316\n \n \n \n203,075\n \n \n \n2,475,010\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEquity in Net income (Loss) of equity method investments and others\n\n \n \n30,022\n \n \n \n(2,578\n) \n \n \n1,306\n \n \n \n148,273\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Profits\n\n \n \n39,915\n \n \n \n44,373\n \n \n \n34,451\n \n \n \n544,668\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSignificant\nnon-cash\nitems:\n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n \n2,687\n \n \n \n6,234\n \n \n \n93,705\n \n \n \n393,892\n \n\nIncrease in policy liabilities and policy account balances\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n268,258\n \n\nBargain purchase gain\n\n \n \n0\n \n \n \n0\n \n \n \n3,750\n \n \n \n3,750\n \n\nImpairment of goodwill and intangible assets\n\n \n \n1,175\n \n \n \n1,971\n \n \n \n0\n \n \n \n14,295\n \n\nExpenditures for long-lived assets\n\n \n \n2,326\n \n \n \n1,143\n \n \n \n177,320\n \n \n \n836,320\n \n\n \n\n*\n\nOther (income) and expense includes items such as expenses of taxes and insurance premiums related to finance leases, impairment of goodwill and intangible assets, gains and losses on derivatives, and foreign exchange gains and losses.\n\n \n\nF-1\n61\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2026\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal\nEstate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nFinance revenues\n\n \n¥\n68,600\n \n \n¥\n5,052\n \n \n¥\n15,243\n \n \n¥\n11,938\n \n \n¥\n141\n \n \n¥\n78,903\n \n \n¥\n3,853\n \n\nGains on investment securities and dividends\n\n \n \n1,639\n \n \n \n953\n \n \n \n1,861\n \n \n \n20,553\n \n \n \n0\n \n \n \n(5,348\n)\n \n \n272\n \n\nOperating leases\n\n \n \n301,626\n \n \n \n52,300\n \n \n \n36,441\n \n \n \n89\n \n \n \n0\n \n \n \n0\n \n \n \n102,827\n \n\nLife insurance premiums and related investment income\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n642,904\n \n \n \n0\n \n \n \n0\n \n\nSales of goods and real estate\n\n \n \n4,689\n \n \n \n126,074\n \n \n \n301,345\n \n \n \n3,311\n \n \n \n0\n \n \n \n0\n \n \n \n1,093\n \n\nServices income\n\n \n \n111,288\n \n \n \n346,522\n \n \n \n87,063\n \n \n \n173,340\n \n \n \n0\n \n \n \n2,884\n \n \n \n21,971\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Revenues\n\n \n \n487,842\n \n \n \n530,901\n \n \n \n441,953\n \n \n \n209,231\n \n \n \n643,045\n \n \n \n76,439\n \n \n \n130,016\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nInterest expense\n\n \n \n12,025\n \n \n \n5,721\n \n \n \n5,321\n \n \n \n15,499\n \n \n \n545\n \n \n \n19,809\n \n \n \n19,386\n \n\nCosts of operating leases\n\n \n \n211,610\n \n \n \n24,962\n \n \n \n23,331\n \n \n \n20\n \n \n \n0\n \n \n \n0\n \n \n \n46,309\n \n\nLife insurance costs\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n480,603\n \n \n \n0\n \n \n \n0\n \n\nCosts of goods and real estate sold\n\n \n \n3,778\n \n \n \n108,329\n \n \n \n212,658\n \n \n \n2,050\n \n \n \n0\n \n \n \n0\n \n \n \n1,120\n \n\nServices expense\n\n \n \n61,398\n \n \n \n275,837\n \n \n \n59,934\n \n \n \n131,543\n \n \n \n0\n \n \n \n7,399\n \n \n \n8,268\n \n\nOther (income) and expense *\n\n \n \n18,505\n \n \n \n(2,512\n)\n \n \n(3,460\n)\n \n \n(5,158\n)\n \n \n(3\n)\n \n \n(89\n)\n \n \n(1,527\n)\n \n\nSelling, general and administrative expenses\n\n \n \n88,127\n \n \n \n46,996\n \n \n \n92,620\n \n \n \n26,037\n \n \n \n58,979\n \n \n \n23,854\n \n \n \n15,328\n \n\nProvision for credit losses, and write-downs of long-lived assets and securities\n\n \n \n3,348\n \n \n \n878\n \n \n \n8,044\n \n \n \n6,772\n \n \n \n30\n \n \n \n188\n \n \n \n4\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Expenses\n\n \n \n398,791\n \n \n \n460,211\n \n \n \n398,448\n \n \n \n176,763\n \n \n \n540,154\n \n \n \n51,161\n \n \n \n88,888\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEquity in Net income (Loss) of equity method investments and others\n\n \n \n11,689\n \n \n \n7,819\n \n \n \n82,106\n \n \n \n83,304\n \n \n \n(0\n)\n \n \n1,934\n \n \n \n25,480\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Profits\n\n \n \n100,740\n \n \n \n78,509\n \n \n \n125,611\n \n \n \n115,772\n \n \n \n102,891\n \n \n \n27,212\n \n \n \n66,608\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSignificant\nnon-cash\nitems:\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n \n168,128\n \n \n \n19,797\n \n \n \n20,049\n \n \n \n32,268\n \n \n \n20,121\n \n \n \n(766\n) \n \n \n32,231\n \n\nIncrease in policy liabilities and policy account balances\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n395,623\n \n \n \n0\n \n \n \n0\n \n\nBargain purchase gain\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nImpairment of goodwill and intangible assets\n\n \n \n0\n \n \n \n0\n \n \n \n1,092\n \n \n \n3,614\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nExpenditures for long-lived assets\n\n \n \n237,759\n \n \n \n65,955\n \n \n \n16,874\n \n \n \n59,772\n \n \n \n513\n \n \n \n155\n \n \n \n230,164\n \n\n \n\nF-1\n62\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n \n\nMillions of yen\n\n \n\n \n\n \n\nFiscal Year ended March 31, 2026\n\n \n\n \n\n \n\nORIX USA\n\n \n\n \n\nORIX Europe\n\n \n\n \n\nAsia and\nAustralia\n\n \n\n \n\nTotal\n\n \n\nFinance revenues\n\n \n¥\n106,559\n \n \n¥\n3,360\n \n \n¥\n73,492\n \n \n¥\n367,141\n \n\nGains on investment securities and dividends\n\n \n \n89,425\n \n \n \n13,869\n \n \n \n5,830\n \n \n \n129,054\n \n\nOperating leases\n\n \n \n2,670\n \n \n \n0\n \n \n \n139,189\n \n \n \n635,142\n \n\nLife insurance premiums and related investment income\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n642,904\n \n\nSales of goods and real estate\n\n \n \n2,535\n \n \n \n0\n \n \n \n482\n \n \n \n439,529\n \n\nServices income\n\n \n \n71,030\n \n \n \n273,857\n \n \n \n24,421\n \n \n \n1,112,376\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Revenues\n\n \n \n272,219\n \n \n \n291,086\n \n \n \n243,414\n \n \n \n3,326,146\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nInterest expense\n\n \n \n52,997\n \n \n \n687\n \n \n \n38,177\n \n \n \n170,167\n \n\nCosts of operating leases\n\n \n \n2,851\n \n \n \n0\n \n \n \n99,936\n \n \n \n409,019\n \n\nLife insurance costs\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n480,603\n \n\nCosts of goods and real estate sold\n\n \n \n1,659\n \n \n \n0\n \n \n \n407\n \n \n \n330,001\n \n\nServices expense\n\n \n \n1,947\n \n \n \n72,084\n \n \n \n15,898\n \n \n \n634,308\n \n\nOther (income) and expense *\n\n \n \n51,322\n \n \n \n4,586\n \n \n \n(1,050\n)\n \n \n60,614\n \n\nSelling, general and administrative expenses\n\n \n \n123,875\n \n \n \n157,595\n \n \n \n46,707\n \n \n \n680,118\n \n\nProvision for credit losses, and write-downs of long-lived assets and securities\n\n \n \n25,342\n \n \n \n148\n \n \n \n7,169\n \n \n \n51,923\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Segment Expenses\n\n \n \n259,993\n \n \n \n235,100\n \n \n \n207,244\n \n \n \n2,816,753\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEquity in Net income (Loss) of equity method investments and others\n\n \n \n(11,272\n)\n \n \n7,065\n \n \n \n15,079\n \n \n \n223,204\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Profits\n\n \n \n954\n \n \n \n63,051\n \n \n \n51,249\n \n \n \n732,597\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSignificant\nnon-cash\nitems:\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n \n2,779\n \n \n \n7,039\n \n \n \n97,337\n \n \n \n398,983\n \n\nIncrease in policy liabilities and policy account balances\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n395,623\n \n\nBargain purchase gain\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nImpairment of goodwill and intangible assets\n\n \n \n52,738\n \n \n \n0\n \n \n \n0\n \n \n \n57,444\n \n\nExpenditures for long-lived assets\n\n \n \n4,328\n \n \n \n655\n \n \n \n187,015\n \n \n \n803,190\n \n\n \n\n*\n\nOther (income) and expense includes items such as expenses of taxes and insurance premiums related to finance leases, impairment of goodwill and intangible assets, gains and losses on derivatives, and foreign exchange gains and losses.\n\n \n\nF-1\n6\n3\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nSegment information as of March 31, 2024, 2025 and 2026 is as follows:\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nAs of March 31, 2024\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal Estate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nNet investment in leases\n\n \n¥\n567,735\n \n \n¥\n51,978\n \n \n¥\n1,238\n \n \n¥\n3,104\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n0\n \n\nInstallment loans\n\n \n \n346,840\n \n \n \n52\n \n \n \n115,629\n \n \n \n2,255\n \n \n \n11,792\n \n \n \n2,378,183\n \n \n \n60,468\n \n\nInvestment in operating leases\n\n \n \n535,655\n \n \n \n278,191\n \n \n \n56,286\n \n \n \n250\n \n \n \n26,876\n \n \n \n0\n \n \n \n557,867\n \n\nInvestment in securities\n\n \n \n36,683\n \n \n \n4,036\n \n \n \n36,729\n \n \n \n571\n \n \n \n2,236,495\n \n \n \n311,237\n \n \n \n11,960\n \n\nProperty under facility operations and servicing assets\n\n \n \n17,404\n \n \n \n165,387\n \n \n \n41,416\n \n \n \n453,252\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nInventories\n\n \n \n928\n \n \n \n174,990\n \n \n \n47,553\n \n \n \n2,463\n \n \n \n0\n \n \n \n0\n \n \n \n733\n \n\nAdvances for finance lease and operating lease\n\n \n \n3,400\n \n \n \n114,649\n \n \n \n5\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n9,232\n \n\nEquity method investments\n\n \n \n14,984\n \n \n \n143,751\n \n \n \n118,310\n \n \n \n219,018\n \n \n \n29,742\n \n \n \n43,601\n \n \n \n399,061\n \n\nAdvances for property under facility operations\n\n \n \n0\n \n \n \n8,183\n \n \n \n4,466\n \n \n \n44,962\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nGoodwill, intangible assets acquired in business combinations *1\n\n \n \n28,693\n \n \n \n52,898\n \n \n \n351,202\n \n \n \n121,174\n \n \n \n4,452\n \n \n \n0\n \n \n \n19,114\n \n\nOther assets *2\n\n \n \n224,998\n \n \n \n115,972\n \n \n \n293,813\n \n \n \n129,385\n \n \n \n612,570\n \n \n \n201,196\n \n \n \n111,206\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Assets\n\n \n \n1,777,320\n \n \n \n1,110,087\n \n \n \n1,066,647\n \n \n \n976,434\n \n \n \n2,921,927\n \n \n \n2,934,217\n \n \n \n1,169,641\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nAs of March 31, 2024\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX Europe\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nNet investment in leases\n\n \n¥\n505\n \n \n¥\n0\n \n \n¥\n530,426\n \n \n¥\n1,154,986\n \n\nInstallment loans\n\n \n \n699,384\n \n \n \n0\n \n \n \n343,936\n \n \n \n3,958,539\n \n\nInvestment in operating leases\n\n \n \n9,858\n \n \n \n0\n \n \n \n395,573\n \n \n \n1,860,556\n \n\nInvestment in securities\n\n \n \n509,172\n \n \n \n82,568\n \n \n \n33,520\n \n \n \n3,262,971\n \n\nProperty under facility operations and servicing assets\n\n \n \n79,747\n \n \n \n0\n \n \n \n1,849\n \n \n \n759,055\n \n\nInventories\n\n \n \n159\n \n \n \n0\n \n \n \n224\n \n \n \n227,050\n \n\nAdvances for finance lease and operating lease\n\n \n \n0\n \n \n \n0\n \n \n \n3,017\n \n \n \n130,303\n \n\nEquity method investments\n\n \n \n61,415\n \n \n \n11,907\n \n \n \n271,682\n \n \n \n1,313,471\n \n\nAdvances for property under facility operations\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n57,611\n \n\nGoodwill, intangible assets acquired in business combinations *1\n\n \n \n176,785\n \n \n \n364,773\n \n \n \n7,313\n \n \n \n1,126,404\n \n\nOther assets *2\n\n \n \n157,459\n \n \n \n202,891\n \n \n \n121,693\n \n \n \n2,171,183\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Assets\n\n \n \n1,694,484\n \n \n \n662,139\n \n \n \n1,709,233\n \n \n \n16,022,129\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*1.\n\nIn ORIX USA segment, there are no goodwill or intangible assets acquired in business combinations related to noncontrolling interests or redeemable noncontrolling interests.\n\n \n\nF-16\n4\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\nIn ORIX Europe segment, goodwill and intangible assets acquired in business combinations related to noncontrolling interests amount to ¥7,182 million, and there are no goodwill or intangible assets related to redeemable noncontrolling interests.\n\n*2.\n\nOther assets include cash and cash equivalents, restricted cash, allowance for credit losses, trade notes, accounts and other receivables, office facilities, loans to ORIX and its subsidiaries, and reinsurance recoverables.\n\n \n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nAs of March 31, 2025\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal Estate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nNet investment in leases\n\n \n¥\n569,380\n \n \n¥\n45,810\n \n \n¥\n1,640\n \n \n¥\n2,092\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n0\n \n\nInstallment loans\n\n \n \n424,370\n \n \n \n30\n \n \n \n124,411\n \n \n \n3,609\n \n \n \n12,805\n \n \n \n2,511,736\n \n \n \n36,119\n \n\nInvestment in operating leases\n\n \n \n557,625\n \n \n \n311,377\n \n \n \n46,796\n \n \n \n237\n \n \n \n26,167\n \n \n \n0\n \n \n \n599,813\n \n\nInvestment in securities\n\n \n \n29,690\n \n \n \n6,209\n \n \n \n6,117\n \n \n \n32,032\n \n \n \n2,234,453\n \n \n \n305,441\n \n \n \n9,387\n \n\nProperty under facility operations and servicing assets\n\n \n \n43,857\n \n \n \n175,153\n \n \n \n53,832\n \n \n \n487,241\n \n \n \n0\n \n \n \n0\n \n \n \n28\n \n\nInventories\n\n \n \n433\n \n \n \n182,652\n \n \n \n41,021\n \n \n \n2,551\n \n \n \n0\n \n \n \n0\n \n \n \n1,588\n \n\nAdvances for finance lease and operating lease\n\n \n \n6,177\n \n \n \n78,044\n \n \n \n3\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n27,816\n \n\nEquity method investments\n\n \n \n16,375\n \n \n \n177,956\n \n \n \n148,274\n \n \n \n170,946\n \n \n \n35,865\n \n \n \n43,934\n \n \n \n402,567\n \n\nAdvances for property under facility operations\n\n \n \n143\n \n \n \n7,401\n \n \n \n728\n \n \n \n70,081\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nGoodwill, intangible assets acquired in business combinations *1\n\n \n \n25,268\n \n \n \n50,801\n \n \n \n331,003\n \n \n \n120,743\n \n \n \n4,452\n \n \n \n0\n \n \n \n43,024\n \n\nOther assets *2\n\n \n \n211,247\n \n \n \n122,860\n \n \n \n269,119\n \n \n \n126,643\n \n \n \n695,492\n \n \n \n283,460\n \n \n \n111,631\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Assets\n\n \n \n1,884,565\n \n \n \n1,158,293\n \n \n \n1,022,944\n \n \n \n1,016,175\n \n \n \n3,009,234\n \n \n \n3,144,571\n \n \n \n1,231,973\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-16\n5\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX\nCorporation\nand Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nAs of March 31, 2025\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX Europe\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nNet investment in leases\n\n \n¥\n451\n \n \n¥\n0\n \n \n¥\n547,966\n \n \n¥\n1,167,339\n \n\nInstallment loans\n\n \n \n652,805\n \n \n \n0\n \n \n \n315,128\n \n \n \n4,081,013\n \n\nInvestment in operating leases\n\n \n \n21,260\n \n \n \n0\n \n \n \n394,764\n \n \n \n1,958,039\n \n\nInvestment in securities\n\n \n \n487,022\n \n \n \n86,008\n \n \n \n37,768\n \n \n \n3,234,127\n \n\nProperty under facility operations and servicing assets\n\n \n \n76,469\n \n \n \n0\n \n \n \n1,844\n \n \n \n838,424\n \n\nInventories\n\n \n \n137\n \n \n \n0\n \n \n \n615\n \n \n \n228,997\n \n\nAdvances for finance lease and operating lease\n\n \n \n0\n \n \n \n0\n \n \n \n4,833\n \n \n \n116,873\n \n\nEquity method investments\n\n \n \n54,817\n \n \n \n8,578\n \n \n \n260,395\n \n \n \n1,319,707\n \n\nAdvances for property under facility operations\n\n \n \n0\n \n \n \n0\n \n \n \n51\n \n \n \n78,404\n \n\nGoodwill, intangible assets acquired in business combinations *1\n\n \n \n171,884\n \n \n \n354,801\n \n \n \n6,986\n \n \n \n1,108,962\n \n\nOther assets *2\n\n \n \n129,094\n \n \n \n219,919\n \n \n \n155,277\n \n \n \n2,324,742\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Assets\n\n \n \n1,593,939\n \n \n \n669,306\n \n \n \n1,725,627\n \n \n \n16,456,627\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*1.\n\nIn ORIX USA segment, there are no goodwill or intangible assets acquired in business combinations related to noncontrolling interests or redeemable noncontrolling interests. In ORIX Europe segment, goodwill and intangible assets acquired in business combinations related to noncontrolling interests amount to ¥6,660 million, and there are no goodwill or intangible assets related to redeemable noncontrolling interests.\n\n*2.\n\nOther assets include cash and cash equivalents, restricted cash, allowance for credit losses, trade notes, accounts and other receivables, office facilities, loans to ORIX and its subsidiaries, and reinsurance recoverables.\n\n \n \n\nMillions of yen\n\n \n\n \n \n\nAs of March 31, 2026\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal\nEstate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nNet investment in leases\n\n \n¥\n577,187\n \n \n¥\n38,903\n \n \n¥\n1,510\n \n \n¥\n1,638\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n12,372\n \n\nInstallment loans\n\n \n \n393,442\n \n \n \n14\n \n \n \n13,102\n \n \n \n6,004\n \n \n \n15,191\n \n \n \n2,685,320\n \n \n \n17,078\n \n\nInvestment in operating leases\n\n \n \n609,965\n \n \n \n369,596\n \n \n \n45,398\n \n \n \n241\n \n \n \n25,457\n \n \n \n0\n \n \n \n590,639\n \n\nInvestment in securities\n\n \n \n31,876\n \n \n \n9,363\n \n \n \n10,905\n \n \n \n142,410\n \n \n \n2,288,116\n \n \n \n166,331\n \n \n \n2,217\n \n\nProperty under facility operations and servicing assets\n\n \n \n42,088\n \n \n \n153,861\n \n \n \n74,886\n \n \n \n496,063\n \n \n \n0\n \n \n \n0\n \n \n \n24\n \n\nInventories\n\n \n \n384\n \n \n \n218,937\n \n \n \n44,370\n \n \n \n3,401\n \n \n \n0\n \n \n \n0\n \n \n \n826\n \n\nAdvances for finance lease and operating lease\n\n \n \n7,106\n \n \n \n50,332\n \n \n \n1\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n28,431\n \n\nEquity method investments\n\n \n \n8,481\n \n \n \n214,196\n \n \n \n239,127\n \n \n \n10,291\n \n \n \n46,002\n \n \n \n44,544\n \n \n \n410,193\n \n\nAdvances for property under facility operations\n\n \n \n5\n \n \n \n8,136\n \n \n \n3,996\n \n \n \n115,763\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nGoodwill, intangible assets acquired in business combinations *1\n\n \n \n24,450\n \n \n \n48,750\n \n \n \n352,682\n \n \n \n117,197\n \n \n \n4,452\n \n \n \n0\n \n \n \n55,804\n \n\nOther assets *2\n\n \n \n181,911\n \n \n \n123,818\n \n \n \n264,584\n \n \n \n125,769\n \n \n \n819,052\n \n \n \n340,604\n \n \n \n93,751\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Assets\n\n \n \n1,876,895\n \n \n \n1,235,906\n \n \n \n1,050,561\n \n \n \n1,018,777\n \n \n \n3,198,270\n \n \n \n3,236,799\n \n \n \n1,211,335\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-166\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nAs of March 31, 2026\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX Europe\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nNet investment in leases\n\n \n¥\n433\n \n \n¥\n0\n \n \n¥\n615,351\n \n \n¥\n1,247,394\n \n\nInstallment loans\n\n \n \n757,103\n \n \n \n0\n \n \n \n286,330\n \n \n \n4,173,584\n \n\nInvestment in operating leases\n\n \n \n39,605\n \n \n \n0\n \n \n \n463,491\n \n \n \n2,144,392\n \n\nInvestment in securities\n\n \n \n503,966\n \n \n \n114,919\n \n \n \n38,289\n \n \n \n3,308,392\n \n\nProperty under facility operations and servicing assets\n\n \n \n82,749\n \n \n \n0\n \n \n \n2,028\n \n \n \n851,699\n \n\nInventories\n\n \n \n699\n \n \n \n0\n \n \n \n267\n \n \n \n268,884\n \n\nAdvances for finance lease and operating lease\n\n \n \n0\n \n \n \n0\n \n \n \n4,210\n \n \n \n90,080\n \n\nEquity method investments\n\n \n \n65,577\n \n \n \n6,005\n \n \n \n261,415\n \n \n \n1,305,831\n \n\nAdvances for property under facility operations\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n127,900\n \n\nGoodwill, intangible assets acquired in business combinations *1\n\n \n \n297,167\n \n \n \n393,782\n \n \n \n7,098\n \n \n \n1,301,382\n \n\nOther assets *2\n\n \n \n193,172\n \n \n \n286,469\n \n \n \n186,798\n \n \n \n2,615,928\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment Assets\n\n \n \n1,940,471\n \n \n \n801,175\n \n \n \n1,865,277\n \n \n \n17,435,466\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*1.\n\nIn ORIX USA segment, there are no goodwill or intangible assets acquired in business combinations related to noncontrolling interests. Goodwill and intangible assets acquired in business combinations related to redeemable noncontrolling interests amount to ¥47,981 million.\n\n \n\nIn ORIX Europe segment, goodwill and intangible assets acquired in business combinations related to noncontrolling interests amount to ¥7,196 million, and there are no goodwill or intangible assets related to redeemable noncontrolling interests.\n\n*2.\n\nOther assets include cash and cash equivalents, restricted cash, allowance for credit losses, trade notes, accounts and other receivables, office facilities, loans to ORIX and its subsidiaries, and reinsurance recoverables.\n\n \n\nF-16\n7\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\nThe reconciliation of segment totals to consolidated financial statement amounts is as follows:\n\nSignificant 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.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nSegment revenues:\n\n  \n\n \n\n \n\nTotal revenues for segments\n\n  \n¥\n2,804,921\n \n \n¥\n2,871,405\n \n \n¥\n3,326,146\n \n\nRevenues related to corporate assets\n\n  \n \n64,922\n \n \n \n64,628\n \n \n \n84,865\n \n\nRevenues from inter-segment transactions\n\n  \n \n(55,482\n) \n \n \n(61,212\n) \n \n \n(80,180\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal consolidated revenues\n\n  \n¥\n2,814,361\n \n \n¥\n2,874,821\n \n \n¥\n3,330,831\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment profits:\n\n  \n\n \n\n \n\nTotal segment profits\n\n  \n¥\n561,521\n \n \n¥\n544,668\n \n \n¥\n732,597\n \n\nCorporate losses\n\n  \n \n(84,644\n) \n \n \n(64,475\n) \n \n \n(52,821\n)\n \n\nNet income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests\n\n  \n \n(6,902\n) \n \n \n270\n \n \n \n11,655\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal consolidated income before income taxes\n\n  \n¥\n469,975\n \n \n¥\n480,463\n \n \n¥\n691,431\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment assets:\n\n  \n\n \n\n \n\nTotal segment assets\n\n  \n¥\n16,022,129\n \n \n¥\n16,456,627\n \n \n¥\n17,435,466\n \n\nCorporate assets\n\n  \n \n2,307,313\n \n \n \n2,494,395\n \n \n \n2,956,157\n \n\nAssets from inter-segment transactions\n\n  \n \n(2,007,342\n) \n \n \n(2,084,771\n) \n \n \n(2,388,847\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal consolidated assets\n\n  \n¥\n16,322,100\n \n \n¥\n16,866,251\n \n \n¥\n \n\n18,002,776\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe following information represents geographical revenues and income before income taxes, which are attributed to geographic areas, based on the country location of the Company and its subsidiaries.\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nFiscal Year ended March 31, 2024\n\n \n\n \n  \n\nJapan\n\n \n  \n\nThe\nAmericas*1\n\n \n  \n\nOther*2\n\n \n  \n\nTotal\n\n \n\nTotal Revenues\n\n  \n¥\n2,097,360\n \n  \n¥\n263,090\n \n  \n¥\n453,911\n \n  \n¥\n2,814,361\n \n\nIncome before Income Taxes\n\n  \n \n298,699\n \n  \n \n39,104\n \n  \n \n132,172\n \n  \n \n469,975\n \n\nLong-lived assets\n\n  \n \n1,855,252\n \n  \n \n34,661\n \n  \n \n1,041,338\n \n  \n \n2,931,251\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nFiscal Year ended March 31, 2025\n\n \n\n \n  \n\nJapan\n\n \n  \n\nThe\nAmericas*1\n\n \n  \n\nOther*2\n\n \n  \n\nTotal\n\n \n\nTotal Revenues\n\n  \n¥\n2,125,234\n \n  \n¥\n270,100\n \n  \n¥\n479,487\n \n  \n¥\n2,874,821\n \n\nIncome before Income Taxes\n\n  \n \n302,628\n \n  \n \n68,154\n \n  \n \n109,681\n \n  \n \n480,463\n \n\nLong-lived assets\n\n  \n \n1,849,310\n \n  \n \n43,124\n \n  \n \n1,185,989\n \n  \n \n3,078,423\n \n\n \n\nF-16\n8\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n\n  \n\nMillions of yen\n\n \n\n \n\n  \n\nFiscal Year ended March 31, 2026\n\n \n\n \n\n  \n\nJapan\n\n \n\n  \n\nThe Americas*1\n\n \n\n  \n\nOther*2\n\n \n\n  \n\nTotal\n\n \n\nTotal Revenues\n\n  \n¥\n2,423,388\n \n  \n¥\n405,209\n \n  \n¥\n502,234\n \n  \n¥\n3,330,831\n \n\nIncome before Income Taxes\n\n  \n \n442,322\n \n  \n \n35,156\n \n  \n \n213,953\n \n  \n \n691,431\n \n\nLong-lived assets\n\n  \n \n1,961,020\n \n  \n \n70,896\n \n  \n \n1,277,096\n \n  \n \n3,309,012\n \n\n \n\n*1\n\nMainly the United States\n\n*2\n\nMainly Asia, Europe and Australasia\n\nNo single customer accounted for 10% or more of the Company’s total revenues for fiscal 2024, 2025 and 2026.\n\nThe following information represents disaggregation of revenues for revenues from contracts with customers, by goods or services category and geographical location.\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2024\n\n \n\n \n \n\nReportable segments\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal Estate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nGoods or services category\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSales of goods\n\n \n¥\n3,934\n \n \n¥\n3,536\n \n \n¥\n249,085\n \n \n¥\n3,771\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n97\n \n\nReal estate sales\n\n \n \n0\n \n \n \n107,477\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nAsset management and servicing\n\n \n \n318\n \n \n \n9,662\n \n \n \n0\n \n \n \n(6\n) \n \n \n0\n \n \n \n615\n \n \n \n53\n \n\nAutomobile related services\n\n \n \n65,942\n \n \n \n0\n \n \n \n0\n \n \n \n239\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nFacilities operation\n\n \n \n0\n \n \n \n74,989\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nEnvironment and energy services\n\n \n \n2,958\n \n \n \n41\n \n \n \n83\n \n \n \n155,838\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nReal estate management and brokerage\n\n \n \n0\n \n \n \n101,229\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nReal estate contract work\n\n \n \n0\n \n \n \n104,875\n \n \n \n47,233\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther\n\n \n \n40,882\n \n \n \n1,482\n \n \n \n33,371\n \n \n \n770\n \n \n \n2,036\n \n \n \n6,706\n \n \n \n9,328\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues from contracts with customers\n\n \n \n114,034\n \n \n \n403,291\n \n \n \n329,772\n \n \n \n160,612\n \n \n \n2,036\n \n \n \n7,321\n \n \n \n9,478\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther revenues *\n\n \n \n330,925\n \n \n \n68,401\n \n \n \n49,396\n \n \n \n4,986\n \n \n \n561,833\n \n \n \n81,253\n \n \n \n55,713\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment revenues/Total revenues\n\n \n¥\n444,959\n \n \n¥\n471,692\n \n \n¥\n379,168\n \n \n¥\n165,598\n \n \n¥\n563,869\n \n \n¥\n88,574\n \n \n¥\n65,191\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-16\n9\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2024\n\n \n\n \n \n\nReportable segments\n\n \n \n\nCorporate\n\nrevenue and\n\nintersegment\n\ntransactions\n\n \n \n\nTotal\n\nrevenues\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX\nEurope\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nGoods or services category\n\n \n\n \n\n \n\n \n\n \n\n \n\nSales of goods\n\n \n¥\n555\n \n \n¥\n0\n \n \n¥\n425\n \n \n¥\n261,403\n \n \n¥\n4,987\n \n \n¥\n266,390\n \n\nReal estate sales\n\n \n \n47\n \n \n \n0\n \n \n \n0\n \n \n \n107,524\n \n \n \n0\n \n \n \n107,524\n \n\nAsset management and servicing\n\n \n \n20,157\n \n \n \n213,908\n \n \n \n44\n \n \n \n244,751\n \n \n \n(243\n) \n \n \n244,508\n \n\nAutomobile related services\n\n \n \n0\n \n \n \n0\n \n \n \n22,141\n \n \n \n88,322\n \n \n \n3\n \n \n \n88,325\n \n\nFacilities operation\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n74,989\n \n \n \n1,098\n \n \n \n76,087\n \n\nEnvironment and energy services\n\n \n \n637\n \n \n \n0\n \n \n \n0\n \n \n \n159,557\n \n \n \n(1,482\n) \n \n \n158,075\n \n\nReal estate management and brokerage\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n101,229\n \n \n \n(1,386\n) \n \n \n99,843\n \n\nReal estate contract work\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n152,108\n \n \n \n(86\n) \n \n \n152,022\n \n\nOther\n\n \n \n5,739\n \n \n \n123\n \n \n \n1,285\n \n \n \n101,722\n \n \n \n5,469\n \n \n \n107,191\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues from contracts with customers\n\n \n \n27,135\n \n \n \n214,031\n \n \n \n23,895\n \n \n \n1,291,605\n \n \n \n8,360\n \n \n \n1,299,965\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther revenues *\n\n \n \n146,291\n \n \n \n13,120\n \n \n \n201,398\n \n \n \n1,513,316\n \n \n \n1,080\n \n \n \n1,514,396\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment revenues/Total revenues\n\n \n¥\n173,426\n \n \n¥\n227,151\n \n \n¥\n225,293\n \n \n¥\n2,804,921\n \n \n¥\n9,440\n \n \n¥\n2,814,361\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*\n\nOther 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.\n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2025\n\n \n\n \n \n\nReportable segments\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal Estate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nGoods or services category\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSales of goods\n\n \n¥\n4,202\n \n \n¥\n3,754\n \n \n¥\n252,969\n \n \n¥\n3,307\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n852\n \n\nReal estate sales\n\n \n \n0\n \n \n \n104,105\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nAsset management and servicing\n\n \n \n418\n \n \n \n8,958\n \n \n \n0\n \n \n \n24\n \n \n \n0\n \n \n \n0\n \n \n \n38\n \n\nAutomobile related services\n\n \n \n65,250\n \n \n \n0\n \n \n \n0\n \n \n \n196\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nFacilities operation\n\n \n \n0\n \n \n \n82,153\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nEnvironment and energy services\n\n \n \n3,013\n \n \n \n39\n \n \n \n78\n \n \n \n173,831\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nReal estate management and brokerage\n\n \n \n0\n \n \n \n103,831\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nReal estate contract work\n\n \n \n574\n \n \n \n115,437\n \n \n \n50,880\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther\n\n \n \n38,891\n \n \n \n1,530\n \n \n \n18,315\n \n \n \n863\n \n \n \n(1\n) \n \n \n2,914\n \n \n \n16,101\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues from contracts with customers\n\n \n \n112,348\n \n \n \n419,807\n \n \n \n322,242\n \n \n \n178,221\n \n \n \n(1\n) \n \n \n2,914\n \n \n \n16,991\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther revenues *\n\n \n \n348,351\n \n \n \n77,973\n \n \n \n55,689\n \n \n \n7,800\n \n \n \n518,364\n \n \n \n60,390\n \n \n \n102,601\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment revenues/Total revenues\n\n \n¥\n460,699\n \n \n¥\n497,780\n \n \n¥\n377,931\n \n \n¥\n186,021\n \n \n¥\n518,363\n \n \n¥\n63,304\n \n \n¥\n119,592\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-1\n70\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2025\n\n \n\n \n \n\nReportable segments\n\n \n \n\nCorporate\n\nrevenue and\n\nintersegment\n\ntransactions\n\n \n \n\nTotal\n\nrevenues\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX\nEurope\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nGoods or services category\n\n \n\n \n\n \n\n \n\n \n\n \n\nSales of goods\n\n \n¥\n543\n \n \n¥\n0\n \n \n¥\n751\n \n \n¥\n266,378\n \n \n¥\n2,672\n \n \n¥\n269,050\n \n\nReal estate sales\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n104,105\n \n \n \n0\n \n \n \n104,105\n \n\nAsset management and servicing\n\n \n \n17,901\n \n \n \n248,664\n \n \n \n172\n \n \n \n276,175\n \n \n \n(246\n) \n \n \n275,929\n \n\nAutomobile related services\n\n \n \n0\n \n \n \n0\n \n \n \n21,737\n \n \n \n87,183\n \n \n \n(10\n) \n \n \n87,173\n \n\nFacilities operation\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n82,153\n \n \n \n1,406\n \n \n \n83,559\n \n\nEnvironment and energy services\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n176,961\n \n \n \n(1,310\n) \n \n \n175,651\n \n\nReal estate management and brokerage\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n103,831\n \n \n \n(1,462\n) \n \n \n102,369\n \n\nReal estate contract work\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n166,891\n \n \n \n(3,970\n) \n \n \n162,921\n \n\nOther\n\n \n \n5,920\n \n \n \n118\n \n \n \n1,280\n \n \n \n85,931\n \n \n \n5,575\n \n \n \n91,506\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues from contracts with customers\n\n \n \n24,364\n \n \n \n248,782\n \n \n \n23,940\n \n \n \n1,349,608\n \n \n \n2,655\n \n \n \n1,352,263\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther revenues *\n\n \n \n129,864\n \n \n \n8,485\n \n \n \n212,280\n \n \n \n1,521,797\n \n \n \n761\n \n \n \n1,522,558\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment revenues/Total revenues\n\n \n¥\n154,228\n \n \n¥\n257,267\n \n \n¥\n236,220\n \n \n¥\n2,871,405\n \n \n¥\n3,416\n \n \n¥\n2,874,821\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n*\n\nOther 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.\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2026\n\n \n\n \n \n\nReportable segments\n\n \n\n \n \n\nCorporate\nFinancial\nServices and\nMaintenance\nLeasing\n\n \n \n\nReal Estate\n\n \n \n\nPE\nInvestment\nand\nConcession\n\n \n \n\nEnvironment\nand Energy\n\n \n \n\nInsurance\n\n \n \n\nBanking and\nCredit\n\n \n \n\nAircraft and\nShips\n\n \n\nGoods or services category\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSales of goods\n\n \n¥\n4,689\n \n \n¥\n4,141\n \n \n¥\n301,345\n \n \n¥\n3,311\n \n \n¥\n0\n \n \n¥\n0\n \n \n¥\n1,093\n \n\nReal estate sales\n\n \n \n0\n \n \n \n121,933\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nAsset management and servicing\n\n \n \n102\n \n \n \n8,157\n \n \n \n0\n \n \n \n97\n \n \n \n0\n \n \n \n0\n \n \n \n22\n \n\nAutomobile related services\n\n \n \n70,671\n \n \n \n0\n \n \n \n0\n \n \n \n159\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nFacilities operation\n\n \n \n0\n \n \n \n97,994\n \n \n \n3,344\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nEnvironment and energy services\n\n \n \n3,161\n \n \n \n40\n \n \n \n0\n \n \n \n167,228\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nReal estate management and brokerage\n\n \n \n0\n \n \n \n108,355\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nReal estate contract work\n\n \n \n1,141\n \n \n \n108,424\n \n \n \n57,268\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n0\n \n\nOther\n\n \n \n36,164\n \n \n \n1,447\n \n \n \n26,028\n \n \n \n1,649\n \n \n \n0\n \n \n \n2,884\n \n \n \n21,949\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues from contracts with customers\n\n \n \n115,928\n \n \n \n450,491\n \n \n \n387,985\n \n \n \n172,444\n \n \n \n0\n \n \n \n2,884\n \n \n \n23,064\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther revenues *\n\n \n \n371,914\n \n \n \n80,410\n \n \n \n53,968\n \n \n \n36,787\n \n \n \n643,045\n \n \n \n73,555\n \n \n \n106,952\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment revenues/Total revenues\n\n \n¥\n487,842\n \n \n¥\n530,901\n \n \n¥\n441,953\n \n \n¥\n209,231\n \n \n¥\n643,045\n \n \n¥\n76,439\n \n \n¥\n130,016\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-1\n71\n\n[Table of Contents](#toc)\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\nORIX Corporation and Subsidiaries\n\n \n\n \n \n\nMillions of yen\n\n \n\n \n \n\nFiscal Year ended March 31, 2026\n\n \n\n \n \n\nReportable segments\n\n \n \n\nCorporate\n\nrevenue and\n\nintersegment\n\ntransactions\n\n \n \n\nTotal\n\nrevenues\n\n \n\n \n \n\nORIX USA\n\n \n \n\nORIX\nEurope\n\n \n \n\nAsia and\nAustralia\n\n \n \n\nTotal\n\n \n\nGoods or services category\n\n \n\n \n\n \n\n \n\n \n\n \n\nSales of goods\n\n \n¥\n2,535\n \n \n¥\n0\n \n \n¥\n482\n \n \n¥\n317,596\n \n \n¥\n3,057\n \n \n¥\n320,653\n \n\nReal estate sales\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n121,933\n \n \n \n0\n \n \n \n121,933\n \n\nAsset management and servicing\n\n \n \n15,604\n \n \n \n273,831\n \n \n \n267\n \n \n \n298,080\n \n \n \n(454\n)\n \n \n297,626\n \n\nAutomobile related services\n\n \n \n0\n \n \n \n0\n \n \n \n22,335\n \n \n \n93,165\n \n \n \n(154\n)\n \n \n93,011\n \n\nFacilities operation\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n101,338\n \n \n \n1,618\n \n \n \n102,956\n \n\nEnvironment and energy services\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n170,429\n \n \n \n(1,382\n)\n \n \n169,047\n \n\nReal estate management and brokerage\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n108,355\n \n \n \n(1,345\n)\n \n \n107,010\n \n\nReal estate contract work\n\n \n \n0\n \n \n \n0\n \n \n \n0\n \n \n \n166,833\n \n \n \n(2,571\n)\n \n \n164,262\n \n\nOther\n\n \n \n31,589\n \n \n \n26\n \n \n \n1,495\n \n \n \n123,231\n \n \n \n4,300\n \n \n \n127,531\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues from contracts with customers\n\n \n \n49,728\n \n \n \n273,857\n \n \n \n24,579\n \n \n \n1,500,960\n \n \n \n3,069\n \n \n \n1,504,029\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther revenues *\n\n \n \n222,491\n \n \n \n17,229\n \n \n \n218,835\n \n \n \n1,825,186\n \n \n \n1,616\n \n \n \n1,826,802\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSegment revenues/Total revenues\n\n \n¥\n272,219\n \n \n¥\n291,086\n \n \n¥\n243,414\n \n \n¥\n3,326,146\n \n \n¥\n4,685\n \n \n¥\n3,330,831\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n\n*\n\nOther 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.\n\n33. Subsequent Events\n\n \n\n \n\n(1)\n\nOn April 27, 2026, the Company entered into a share transfer agreement with Daiwa Next Bank, Ltd. to transfer all shares in ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”). Pursuant to this agreement, the share transfer is scheduled to be completed by October 2026, and upon the completion of the transfer, the Target will be excluded from the Company’s scope of consolidation. The Target is included in the Banking and Credit segment, and as the transfer is expected to be completed during the fiscal year ending March 31, 2027, the Company expects to record a net gain of approximately ¥124.2 billion on a pre-tax basis in connection with the transfer in the consolidated financial statements for that fiscal year.\n\n \n\n \n\n(2)\n\nOn May 11, 2026, the Company’s Board of Directors has passed a resolution approving the matters required under Article 156, Paragraph 1 of the Companies Act for the repurchase of its own shares for capital efficiency and shareholder returns, pursuant to Articles 34 of the Articles of Incorporation, which is in accordance with Article 459, Paragraph 1 of the Companies Act.\n\nDetails of Share Repurchase\n\n \n\n \n\n•\n\n \n\nClass of shares to be repurchased: Common shares\n\n \n\n \n\n•\n\n \n\nTotal number of shares: Up to 100,000,000 shares\n(approximately 9.1% of the total outstanding shares (excluding treasury shares))\n\n \n\n \n\n•\n\n \n\nTotal purchase price of shares to be repurchased: Up to 250 billion yen\n\n \n\n \n\n•\n\n \n\nRepurchase period: From May 22, 2026 to March 31, 2027\n\n \n\n \n\n•\n\n \n\nMethod of share repurchase: Market purchases based on the discretionary dealing contract regarding repurchase of own shares\n\n \n\nF-1\n72\n\n[Table of Contents](#toc)\n\nSchedule II.—Valuation and Qualifying Accounts and Reserves\n\nORIX Corporation and Subsidiaries\n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nYear Ended March 31, 2024\n\n \n\nDescription\n\n  \n\nBalance at\n\nbeginning\n\nof period\n\n \n  \n\nAcquisitions\n\n \n  \n\nAddition:\n\nCharged to\n\ncosts and\n\nexpenses\n\n \n  \n\nDeduction\n\n \n \n\nTranslation\n\nadjustment\n\n \n  \n\nBalance at\n\nend\n\nof period\n\n \n\nRestructuring cost:\n\n  \n\n  \n\n  \n\n  \n\n \n\n  \n\nClosed office lease obligations\n\n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n23\n \n  \n¥\n0\n \n \n¥\n0\n \n  \n¥\n23\n \n\nSeverance and other benefits to terminated employees\n\n  \n¥\n480\n \n  \n¥\n0\n \n  \n¥\n122\n \n  \n¥\n(480\n) \n \n¥\n0\n \n  \n¥\n122\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n480\n \n  \n¥\n0\n \n  \n¥\n145\n \n  \n¥\n(480\n) \n \n¥\n0\n \n  \n¥\n145\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nYear Ended March 31, 2025\n\n \n\nDescription\n\n  \n\nBalance at\n\nbeginning\n\nof period\n\n \n  \n\nAcquisitions\n\n \n  \n\nAddition:\n\nCharged to\n\ncosts and\n\nexpenses\n\n \n  \n\nDeduction\n\n \n \n\nTranslation\n\nadjustment\n\n \n  \n\nBalance at\n\nend\n\nof period\n\n \n\nRestructuring cost:\n\n  \n\n  \n\n  \n\n  \n\n \n\n  \n\nClosed office lease obligations\n\n  \n¥\n23\n \n  \n¥\n0\n \n  \n¥\n49\n \n  \n¥\n(23\n) \n \n¥\n0\n \n  \n¥\n49\n \n\nSeverance and other benefits to terminated employees\n\n  \n¥\n122\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n(122\n) \n \n¥\n0\n \n  \n¥\n0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n145\n \n  \n¥\n0\n \n  \n¥\n49\n \n  \n¥\n(145\n) \n \n¥\n0\n \n  \n¥\n49\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\nMillions of yen\n\n \n\n \n  \n\nYear Ended March 31, 2026\n\n \n\nDescription\n\n  \n\nBalance at\n\nbeginning\n\nof period\n\n \n  \n\nAcquisitions\n\n \n  \n\nAddition:\n\nCharged to\n\ncosts and\n\nexpenses\n\n \n  \n\nDeduction\n\n \n \n\nTranslation\n\nadjustment\n\n \n  \n\nBalance at\n\nend\n\nof period\n\n \n\nRestructuring cost:\n\n  \n\n  \n\n  \n\n  \n\n \n\n  \n\nClosed office lease obligations\n\n  \n¥\n49\n \n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n(38\n)\n \n¥\n0\n \n  \n¥\n11\n \n\nSeverance and other benefits to terminated employees\n\n  \n¥\n0\n \n  \n¥\n0\n \n  \n¥\n323\n \n  \n¥\n0\n \n \n¥\n0\n \n  \n¥\n323\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n49\n \n  \n¥\n0\n \n  \n¥\n323\n \n  \n¥\n(38\n)\n \n¥\n0\n \n  \n¥\n334\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\nMillions of yen\n\n \n\nDescription\n\n  \n\nBalance at\nbeginning\nof period\n\n \n  \n\nAcquisitions\n\n \n  \n\nAddition:\n\nCharged to\ncosts and\nexpenses\n\n \n  \n\nDeduction*1\n\n \n \n\nOther*2\n\n \n  \n\nBalance at\nend\n\nof period\n\n \n\nDeferred tax assets:\n\n  \n\n  \n\n  \n\n  \n\n \n\n  \n\nValuation allowance\n\n  \n\n  \n\n  \n\n  \n\n \n\n  \n\nYear ended March 31, 2024\n\n  \n¥\n37,287\n \n  \n¥\n0\n \n  \n¥\n12,714\n \n  \n¥\n(12,233\n) \n \n¥\n1,278\n \n  \n¥\n39,046\n \n\nYear ended March 31, 2025\n\n  \n¥\n39,046\n \n  \n¥\n0\n \n  \n¥\n8,481\n \n  \n¥\n(15,572\n) \n \n¥\n3,890\n \n  \n¥\n35,845\n \n\nYear ended March 31, 2026\n\n  \n¥\n35,845\n \n  \n¥\n37\n \n  \n¥\n11,873\n \n  \n¥\n(3,369\n)\n \n¥\n(124\n)\n  \n¥\n44,262\n \n\n \n\n \n\n*1\n\nThe amount of deduction includes benefits recognized in income tax expense, expiration of loss carryforwards and sales of subsidiaries. The amounts of benefits recognized in earnings due to the utilization of net operation loss carry forwards were ¥3,660 million in fiscal 2024, ¥3,380 million in fiscal 2025 and ¥1,877 million in fiscal 2026. The remaining amounts of benefits recognized in earnings were ¥3,613 million in fiscal 2024, ¥3,128 million in fiscal 2025 and ¥812 million in fiscal 2026.\n\n*2\n\nThe amount of other includes, among others, translation adjustment and the effect of changes in statutory income tax rates.\n\n \n\nF-1\n7\n3"}