Cor por at e D ata

T&D Holdings INTEGRATED REPORT 201995

Corporate Data

Selected Financial Data

T&D HOLDINGS¥ millions

Years ended March 31

2015

2016

2017

2018

2019

Statement of Operation Data:
Ordinary revenues:¥1,958,055¥1,574,506¥1,505,234¥1,483,719¥1,676,184

Investment income

384,223

379,707402,709372,753

393,901

Other ordinary income

69,847

71,66567,83871,81370,076

2,412,165

2,025,925

1,975,784

1,928,359

2,140,162

Insurance claims and other payments

1,401,534

1,302,899

1,160,357

1,146,175

1,141,636

Provision for policy and other reserves

485,139

194,387

259,134

262,894

469,615

Investment expenses

66,427

77,477130,277

96,288112,285

Operating expenses

199,435

198,999

197,600

202,366

201,563

Other ordinary expenses

70,68680,727

71,18664,15968,0862,223,222

1,854,490

1,818,556

1,771,884

1,993,213

Income from insurance premiums

Total ordinary revenues
Ordinary expenses:

Total ordinary expenses

188,943

171,434

157,227

156,475

146,949

Net extraordinary gains (losses)(8,105)(29,274)(35,067)(16,485)(17,890)

Provision for reserve for policyholder dividends

32,55531,92025,37430,331

27,144

Income before income taxes

148,281110,239

96,786109,657

101,915

Current

44,14746,07533,316

34,10632,383

Deferred

9,755(8,561)(11,895)(2,044)(3,316)53,90337,513

21,421

32,061

29,066

Ordinary profit

Income taxes:

Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent

163¥

94,215

179¥

72,547

177¥

75,18722

19¥77,577¥

72,825¥ millions

2015

2016

2017

2018

2019

¥14,664,705¥14,674,207¥14,891,167¥15,262,398¥15,794,711

12,707,957

12,892,482

13,139,218

13,395,725

13,859,097

13,319,755

13,460,145

13,794,395

14,109,362

14,635,123

Total shareholders’ equity

749,436775,208

794,554

833,779

863,933

Total accumulated other comprehensive income

592,301

435,331

298,302313,645

289,181¥ 1,344,950¥ 1,214,061¥ 1,096,772¥ 1,153,036¥ 1,159,588

2015

2016

2017

2018

2019

Policy amount in force¥62,117,777¥62,998,174¥64,612,813¥66,010,749¥69,264,639

New policy amount

7,227,221

6,685,973

7,441,437

7,273,000

9,985,762

Surrender and lapse amount

3,752,457

3,789,522

3,837,734

3,884,453

4,625,021

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:

Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:* The total of individual insurance, individual annuities and Daido Life’s J-type product, T-type product, Kaigo Relief, and Kaigo Teiki Hoken. The new policy amounts include net increases from conversions.

Other Data:
Core profit¥ 182,766¥ 153,097¥ 159,985¥ 148,466¥ 149,638

Group MCEV *2,298,000

1,893,700

2,290,500

2,406,700

2,370,600

Consolidated solvency margin ratio

1,220.7%

1,155.8%

1,105.1%

1,061.8%

1,093.1%* Group MCEV is shown in terms of hundreds of millions of yen.

96

T&D Holdings INTEGRATED REPORT 2019

TAIYO LIFE
¥ millions

Years ended March 31

2015

2016

2017

2018

2019

Statement of Operation Data:
Ordinary revenues:
Income from insurance premiums¥865,232¥657,185¥654,379¥511,900¥715,120

Investment income

176,370

202,909

228,058

189,495

190,444

Other ordinary income

19,544

13,792

15,51737,31912,044

1,061,146

873,887

897,955

738,716

917,610

Insurance claims and other payments

566,446604,261535,387

522,746

521,457

Provision for policy and other reserves

281,973

39,86099,991

885

183,693

Investment expenses

31,89336,54083,10945,292

52,386

Operating expenses

77,60676,424

77,18976,69876,730

Other ordinary expenses

35,61937,67635,63530,301

29,147

993,539794,763

831,312675,925

863,41354,196

Total ordinary revenues
Ordinary expenses:

Total ordinary expenses
Ordinary profit

67,606

79,124

66,642

62,790Net extraordinary gains (losses)(5,249)(20,251)(18,995)(4,254)(5,370)

Provision for reserve for policyholder dividends

18,093

18,135

11,73815,664

13,138

Income before income taxes

44,26440,73635,90942,87035,687

Current

12,827

17,624

11,120

10,238

10,798Deferred

3,482(3,722)(4,178)

2,151

(657)

16,30913,902

6,941

12,39010,140Net income¥ 27,954¥ 26,834¥ 28,967¥ 30,480¥ 25,547

As of March 31

2015

2016

2017

2018

2019

¥7,217,901¥7,084,800¥7,188,371¥7,219,463¥7,411,864

6,279,589

6,318,824

6,410,781

6,389,235

6,569,075

6,658,543

6,603,082

6,807,381

6,810,776

6,996,551

Total shareholders’ equity

259,537

279,336

279,765

290,945304,203

Total valuation and translation adjustment

299,819

202,382

101,224

117,742

111,109¥ 559,357¥ 481,718¥ 380,989¥ 408,687¥ 415,312

2015

2016

2017

2018

2019

Policy amount in force¥22,154,564¥21,983,504¥21,741,191¥21,154,486¥19,945,620

New policy amount

2,840,754

2,134,199

2,084,818

1,686,796

1,196,690

Surrender and lapse amount

1,270,225

1,255,956

1,255,824

1,236,078

1,240,097

5.88%

5.67%

5.71%

5.69%

5.86%

Income taxes:

Total income taxes¥ millions

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:

Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:Surrender and lapse rate

* The total of individual insurance and individual annuities. The new policy amounts include net increases from conversions.

Other Data:
Core profit¥ 68,188¥ 53,812¥ 53,464¥ 48,547¥ 51,859

MCEV *

868,600

725,700

777,500

825,000

856,200

Solvency margin ratio

993.9%

890.6%

848.6%

835.1%

849.7%

8,432

8,631

8,902

8,942

8,440

Number of in-house sales representatives* MCEV is shown in terms of hundreds of millions of yen.

T&D Holdings INTEGRATED REPORT 201997

Corporate Data

Selected Financial Data

DAIDO LIFE
¥ millions

Years ended March 31

Statement of Operation Data:
Ordinary revenues:
Income from insurance premiums
Investment income
Other ordinary income
Total ordinary revenues
Ordinary expenses:
Insurance claims and other payments
Provision for policy and other reserves
Investment expenses
Operating expenses
Other ordinary expenses
Total ordinary expenses
Ordinary profit
Net extraordinary gains (losses)
Provision for reserve for policyholder dividends
Income before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net income

2015

2016

2017

2018

2019

¥792,715
169,016
19,320981,052¥748,914
165,153
21,671
935,739¥766,336
154,066
24,029944,431¥790,852
171,830
25,387
988,070¥ 828,003
191,065
26,492
1,045,561

494,272
231,264
39,12899,152
19,770883,588
97,464(2,653)
14,46280,348502,896
181,357
34,443
102,531
24,203
845,431
90,307
4,413
13,78880,932484,881
204,770
48,244
103,099
20,739861,736
82,695(12,450)
13,63656,608496,329
232,739
46,233
103,602
19,767
898,672
89,397(11,698)
14,66863,031

510,573
259,032
61,342
103,883
21,458956,290
89,270(11,956)
14,00563,30828,104
1,064
29,168¥ 51,180

29,351(2,896)
26,455¥ 54,476

20,777(7,286)
13,491¥ 43,116

22,854(4,396)
18,458¥ 44,572

21,414(3,634)
17,77945,528

2015

2016

2017

2018

2019

¥5,977,975¥6,152,026¥6,298,188¥6,573,924¥6,843,179

5,125,125
5,297,596

5,301,162
5,488,203

5,501,639
5,654,175

5,729,754
5,913,402

5,986,450
6,180,746

388,865
291,513¥ 680,379

433,499
230,323¥ 663,823

448,016
195,996¥ 644,013

466,141
194,380¥ 660,521

489,267
173,165¥ 662,433

2015

2016

2017

2018

2019

¥38,156,747
33,209,130
1,764,379
4,063,816
3,228,184
657,0032,378,329
6.38%¥39,205,952
33,673,604
2,415,881
4,315,542
3,426,632
786,6092,472,006
6.48%¥40,992,241
34,772,475
3,166,600
5,121,169
4,088,485
934,940
2,525,540
6.44%¥42,803,504
34,724,011
5,426,922
5,231,498
2,944,065
2,523,252
2,582,199
6.30%¥47,146,055
35,305,536
10,057,448
8,474,888
4,128,641
5,085,094
3,295,771
7.70%¥¥ millions

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:
Total shareholders’ equity
Total valuation and translation adjustment
Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:Policy amount in force
Individual term life insurance
J-type product, T-type product, Kaigo Relief and Kaigo Teiki Hoken
New policy amountIndividual term life insurance
J-type product, T-type product, Kaigo Relief and Kaigo Teiki Hoken
Surrender and lapse amount
Surrender and lapse rate

* The total of individual insurance, individual annuities, J-type product, T-type product, Kaigo Relief, and Kaigo Teiki Hoken. The new policy amounts include net increases from conversions.

Other Data:
Core profit
MCEV *
Solvency margin ratio
Number of in-house sales representatives
Number of agents* MCEV is shown in terms of hundreds of millions of yen.

98

T&D Holdings INTEGRATED REPORT 2019

¥ 107,654
1,306,700
1,363.7%
3,790
13,675¥ 104,829
1,078,000
1,341.9%
3,867
13,793¥ 105,677
1,417,400
1,252.6%
3,843
13,878¥ 100,781
1,473,200
1,206.2%
3,714
13,992¥

99,245
1,417,700
1,271.9%
3,786
14,132

T&D FINANCIAL LIFE
¥ millions

Years ended March 31

2015

2016

2017

2018

2019

Statement of Operation Data:
Ordinary revenues:¥297,755¥165,436¥ 80,918¥176,474¥127,853

Investment income

46,366

14,232

23,041

12,982

17,221Other ordinary income

37,98938,36551,874

7,036

5,683

382,110

218,035

155,834

196,492

150,758

Insurance claims and other payments

339,700

194,324

138,311

124,953

106,894

Provision for policy and other reserves

1,440

2

0

50,164

26,791

Investment expenses

1,814

7,950

213

4,888

1,941

Operating expenses

14,422

12,705

9,745

12,34911,453

Income from insurance premiums

Total ordinary revenues
Ordinary expenses:

2,275

1,840

1,363

1,592

1,612

359,653

216,822

149,634

193,948

148,694

22,457

1,212

6,199

2,543

2,064

(174)

(621)

(3,612)

(461)

(552)

(0)

(3)

(1)

(1)

0

22,282

593

2,587

2,083

1,511

Current

2,411(1,735)

874

199

(456)

Deferred

5,225

1,837

(427)

295

956

7,636

101

446

494

Other ordinary expenses
Total ordinary expenses
Ordinary profit
Net extraordinary gains (losses)
Provision for (Reversal of) reserve for policyholder dividends
Income before income taxes
Income taxes:

Total income taxes

500
¥

1,011

Net income¥ 14,645

As of March 31

2015

2016

2017

2018

2019

¥1,387,624¥1,359,879¥1,313,747¥1,365,878¥1,438,819

1,301,958

1,270,904

1,224,914

1,274,376

1,300,935

1,319,425

1,289,619

1,242,846

1,292,955

1,361,498

67,39467,88670,027

71,616

72,627

804

2,373

874

1,306

¥

492

¥

2,141

¥

1,588

¥ millions

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:
Total shareholders’ equity
Total valuation and translation adjustment
Total net assets¥

68,198¥70,260¥70,901¥

72,922

4,693¥

77,321* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

2015

2016

2017

2018

2019

¥1,806,465¥1,808,717¥1,879,380¥2,052,758¥2,172,963

1,091,312

1,156,568

1,280,606

1,506,435

1,676,228

New policy amount322,651

236,231

235,449

354,705

314,183

Surrender and lapse amount

103,90261,55956,36866,17489,152

Surrender and lapse rate

5.62%

3.41%

3.12%

3.52%

4.34%

Core profit (loss)¥ 6,923¥ (5,545)¥

MCEV *

95,80093,40097,400102,600

98,5001,271.9%

1,260.7%

1,295.6%

1,258.3%

1,101.7%

Years ended March 31

Policy Results *:Policy amount in force
Sales through independent insurance agents* The total of individual insurance and individual annuities.

Other Data:

Solvency margin ratio

843

¥

(863)

¥

(1,466)* MCEV is shown in terms of hundreds of millions of yen.

T&D Holdings INTEGRATED REPORT 201999

Corporate Data

Consolidated Financial Statements

Consolidated Balance Sheet
As of March 31,

2018¥ millions

US$ thousands

2019

2019

Assets:Cash and deposits

776,510¥824,241$

7,426,263

10,539

1,037

9,343

Monetary claims purchased

117,578

126,905

1,143,391

685,819

765,4816,896,849

Securities (Notes 8, 13 and 14)

11,377,032

11,735,384

105,733,705

Loans (Notes 3 and 7)

1,648,600

1,669,989

15,046,303

363,245

369,465

3,328,816

Land (Note 2 (14))

202,010207,148

1,866,368

Buildings

155,308

149,916

1,350,719

605

435

3,919

Construction in progress

1,237

6,655

59,968Other tangible fixed assets

4,082

5,309

47,841

Monetary trusts

Tangible fixed assets (Note 4)

Lease assets

26,862

28,467

256,490

Software25,39527,080243,986

Lease assets

298

221

1,996

1,169

1,166

10,506

740

691

6,232

Intangible fixed assets

Other intangible fixed assets
Due from agencies
Due from reinsurers

3,136

2,271

20,464

Other assets (Note 14)

209,171

217,452

1,959,204

Deferred tax assets

44,75354,925494,869

Reserve for possible loan losses(1,591)(1,599)(14,412)¥15,262,398¥15,794,711$142,307,522

Total assets

100¥

Call loans

T&D Holdings INTEGRATED REPORT 2019As of March 31,¥ millions

US$ thousands

2018

2019

2019

¥13,395,725¥13,859,097$124,867,980

67,74969,554

626,673

13,239,086

13,706,879

123,496,522

88,88982,663744,783

Liabilities:
Policy reserves
Reserve for outstanding claims
Policy reserve
Reserve for policyholder dividends (Note 6)
Due to agencies

658

408

3,684

Due to reinsurers

1,539

1,432

12,905

Short-term debentures

6,000

6,000

54,058

Bonds (Note 9)

87,065

117,035

1,054,464

Other liabilities (Notes 10 and 14)342,252

359,214

3,236,456

Provision for bonuses to directors and audit & supervisory board members

276

273

2,466

Provision for share-based remuneration

—

336

3,034

50,76451,038459,849

56

65

594

Reserves under the special laws

219,695

235,098

2,118,191

Reserve for price fluctuations

219,695

235,098

2,118,191

13

15

139

5,316

5,106

46,012

14,109,362

14,635,123

131,859,840

Net defined benefit liability
Provision for directors’ and audit & supervisory board members’ retirement benefits

Deferred tax liabilities
Deferred tax liabilities on land revaluation (Note 2 (14))
Total liabilities
Net assets:
Capital stock

207,111207,111

1,866,040

Capital surplus

156,785

156,740

1,412,204

Retained earnings

516,585564,9445,090,048

Treasury shares(46,703)(64,863)(584,409)

Total shareholders’ equity

833,779

863,933

7,783,885

Valuation difference on available-for-sale securities

353,590

328,020

2,955,404

Deferred gains (losses) on hedging instruments(4,320)(2,987)(26,917)

Land revaluation (Note 2 (14))(35,637)(35,869)(323,180)

11

18

169
2,605,474

Foreign currency translation adjustments
Total accumulated other comprehensive income

313,645

289,181

Subscription rights to shares

1,216

1,081

9,742

Non-controlling interests

4,395

5,391

48,5791,153,036

1,159,588

10,447,682¥15,262,398¥15,794,711$142,307,522

Total net assets
Total liabilities and net assets
See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2019101

Corporate Data

Consolidated Statement of Operation¥ millions

US$ thousands

Years ended March 31,

2018

2019

2019

Ordinary revenues¥1,928,359¥2,140,162$19,282,482

1,483,719

1,676,184

15,102,122

372,753

393,901

3,548,984

285,496

295,858

2,665,628

—

5,240

47,219

Income from insurance premiums
Investment income
Interest, dividends and income from real estate for rent
Gains from monetary trusts, net

—

25

229

78,48788,897800,954

Gains on redemption of securities

—

1,168

10,529

Reversal of reserve for possible loan losses

86

—

—

Other investment income

2,734

2,452

22,095

Gains on separate accounts, net

5,948

258

2,328

71,81370,076

631,375

Gains on investments in trading securities, net
Gains on sales of securities

Other ordinary income
Equity in earnings of affiliates
Ordinary expenses

72

—

—

1,771,884

1,993,213

17,958,492

1,146,175

1,141,636

10,285,940

Insurance claims

334,188326,575

2,942,387

Annuity payments

281,915

271,440

2,445,632

Insurance benefits

148,099

147,057

1,324,966

Surrender payments

330,019

340,505

3,067,891

Insurance claims and other payments

Other payments
Provision for policy and other reserves

51,95156,056505,062

262,894

469,6154,231,155

—

1,804

16,259262,874

467,792

4,214,730

19

18

165

Investment expenses

96,288112,285

1,011,674

Interest expenses

637

907

8,180

Losses from monetary trusts, net

285

—

—

Losses on investments in trading securities, net

195

—

—

18,097

16,894

152,212

Provision for reserve for outstanding claims
Provision for policy reserve
Interest portion of reserve for policyholder dividends

Losses on sales of securities
Devaluation losses on securities

6,193

3,128

28,189Losses from derivatives, net

45,68065,619591,223

Foreign exchange losses, net

3,900

1,775

15,997—36

325

Provision for reserve for possible loan losses
Write-off of loans
Depreciation of real estate for rent

1

9

86

5,027

6,219

56,033

16,26917,694

159,426

Operating expenses

202,366

201,563

1,816,053

Other ordinary expenses

64,15968,086

613,450

Other investment expenses

Equity in losses of affiliates
Ordinary profit

—

24

218

¥ 156,475¥ 146,949$ 1,323,990(continued)

102

T&D Holdings INTEGRATED REPORT 2019¥ millions

Years ended March 31,

Extraordinary gains¥

28

US$ thousands

2019

2018

¥

699

2019

$

6,301

Gains on disposal of fixed assets

13

650

5,860

State subsidy

15

42

381

Other extraordinary gains

—

6

59

16,513

18,589167,488

Extraordinary losses
Losses on disposal of fixed assets

953

870

7,844

Impairment losses (Note 16)

744

2,113

19,03914,80015,402

138,777

15

202

1,826

Provision for reserve for price fluctuations
Other extraordinary losses
Provision for reserve for policyholder dividends

30,331

27,144

244,566

Income before income taxes

109,657

101,915

918,237

Income taxes (current)

34,10632,383291,768

Income taxes (deferred)(2,044)(3,316)(29,883)

Total income taxes

32,061

29,066

261,884

Profit

77,596

72,848656,352

19

22

204

¥ 77,577¥ 72,825$656,148¥ millions

US$ thousands

Profit attributable to non-controlling interests
Profit attributable to owners of parent

Consolidated Statement of Comprehensive Income
2018

2019

2019

¥77,596¥ 72,848$ 656,352

14,764(25,590)(230,566)

883

1,332

12,005

Foreign currency translation adjustments

(0)

(0)

(0)

Share of other comprehensive income of associates accounted for using the equity method

(6)

5

52

15,640(24,252)(218,509)¥93,236¥ 48,596$ 437,842¥93,202¥48,595$ 437,833

33

1

9

Years ended March 31,

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedging instruments

Total other comprehensive income (Note 17)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2019103

Corporate Data

Consolidated Statement of Changes in Net Assets¥ millions
Shareholders’ equity

Accumulated other comprehensive income

Year ended March 31, 2018

Capital stock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

¥207,111¥194,522¥460,683¥(67,763) ¥794,554

Dividends(21,958)(21,958)

Profit attributable to ownersof parent

77,577

Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments¥338,842

Land
revaluation¥(5,203) ¥(35,354)

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income¥17¥298,302

Subscription
rights toshares¥1,178

Noncontrollinginterests

Total net
assets¥2,737 ¥1,096,772

Changes in the period:

Purchase of treasury shares(21,958)

77,577

77,577(17,018)(17,018)(17,018)

Disposal of treasury shares

(106)

377

271

271

Retirement of treasury shares(37,700)

37,700——Change in ownership interest ofparent due to transactions with
non-controlling interests

70
282

Reversal of land revaluation

70

70

282

282

Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year

¥207,111(37,736)

55,901¥156,785¥516,585

14,748

883

(282)

(5)

15,34238

1,657

17,03839,225

14,748

883

(282)

(5)

15,34238

1,657

56,263¥(46,703) ¥833,779¥353,590¥(4,320) ¥(35,637)¥11¥313,645¥1,216

21,059¥4,395 ¥1,153,036¥ millions
Shareholders’ equity

Accumulated other comprehensive income

Year ended March 31, 2019

Capital stock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

¥207,111¥156,785¥516,585¥(46,703) ¥833,779

Dividends(24,699)(24,699)

Profit attributable to ownersof parent

72,825

Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments

Land
revaluation¥353,590¥(35,637)¥(4,320)

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income¥11¥313,645

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥1,216¥4,395¥1,153,036

Changes in the period:

Purchase of treasury shares(45)

Disposal of treasury shares

72,82572,825(18,348)(18,348)(18,348)

188

143

143

232

232

232

Reversal of land revaluation
Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year

104

¥207,111(45)

48,358¥156,740¥564,944

T&D Holdings INTEGRATED REPORT 2019(24,699)(25,570)

1,332

(232)

7

(24,463)

(135)

996

30,153(25,570)

1,332

(232)

7

(24,463)

(135)

996

6,552

¥(64,863) ¥863,933¥328,020¥(2,987)¥(35,869)¥18¥289,181¥1,081¥5,391¥1,159,588(18,159)(23,601)

US$ thousands
Shareholders’ equity

Year ended March 31, 2019

Capital stock

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

Total
Treasury shareholders’equitysharesLand
revaluation

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income

Subscription
rights toshares

Noncontrollinginterests$(38,923) $(321,083)$105 $2,825,886$10,959$39,599 $10,388,648

Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments

Balance at the beginning of the year $1,866,040 $1,412,611 $4,654,343 $(420,792) $7,512,203 $3,185,787

Total net
assetsChanges in the period:
Dividends(222,540)

Profit attributable to ownersof parent

656,148

Purchase of treasury shares
Disposal of treasury shares(406)(222,540)
656,148

656,148(165,313)(165,313)(165,313)

1,697

1,290

1,290

2,097

2,097

2,097

Reversal of land revaluation
Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year(406)

435,704(222,540)(163,616)

271,681(230,383)

12,005(2,097)63(220,412)(1,216)

8,980(212,648)(230,383)

12,005(2,097)63(220,412)(1,216)

8,980

59,033$169 $2,605,474$ 9,742$1,866,040 $1,412,204 $5,090,048 $(584,409) $7,783,885 $2,955,404$(26,917) $(323,180)$48,579 $10,447,682

T&D Holdings INTEGRATED REPORT 2019105

Corporate Data

Consolidated Statement of Cash Flows
Years ended March 31,¥ millions

US$ thousands

2018

2019

2019

Cash flows from operating activities:¥ 109,657¥ 101,915

Depreciation of real estate for rent

5,027

6,219

56,033

Depreciation

10,762

11,892

107,149

744

2,113

19,039

Income before income taxes

Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve
Interest portion of reserve for policyholder dividends
Provision for reserve for (reversal of) policyholder dividends$

918,237(2,315)

1,804

16,259262,874

467,792

4,214,730

19

18

165

30,331

27,144

244,566
167

(162)

18

Increase (decrease) in provision for bonuses to directors and audit & supervisory board members

13

(2)

(25)

Increase (decrease) in provision for share-based remuneration

—

336

3,034

(5,783)

274

2,470

2

9

86

Increase (decrease) in reserve for possible loan losses

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ and audit & supervisory board members’
retirement benefits

14,80015,402

138,777

Interest, dividends and income from real estate for rent

(285,496)(295,858)(2,665,628)

Losses (gains) on investment securities(59,949)(70,327)(633,638)

637

907

8,180

Increase (decrease) in reserve for price fluctuations

Interest expenses

3,463

1,174

10,583Losses (gains) on disposal of tangible fixed assets

888

(193)

(1,738)Equity in losses (income) of affiliated companies

(72)

24

218

Decrease (increase) in amount due from agencies

16

48

435

Decrease (increase) in amount due from reinsurers

364

858

7,730

(14,043)(12,223)(110,133)

Increase (decrease) in amount due to agencies

324

(249)

(2,245)

Increase (decrease) in amount due to reinsurers

(242)

(106)

(963)

99

7,266

65,469Foreign exchange losses (gains)

Decrease (increase) in other assets (excluding investment activities-related and financing
activities-related)

Increase (decrease) in other liabilities (excluding investment activities-related and financing
activities-related)
Others, net

60,03275,796

682,908

Subtotal

131,995

342,056

3,081,871

Interest, dividends and income from real estate for rent received

295,876

303,8882,737,985

(550)

(912)

(8,221)(34,469)(33,435)(301,250)

Interest paid
Policyholder dividends
Others, net
Income taxes paid
Net cash provided by (used in) operating activities

2,107(1,948)(17,556)(24,832)(32,690)(294,537)¥ 370,127¥ 576,958$ 5,198,289(continued)

106

T&D Holdings INTEGRATED REPORT 2019Years ended March 31,

2018¥ millions

US$ thousands

2019

2019

Cash flows from investing activities:
Net decrease (increase) in cash and deposits¥

Investments in monetary claims purchased

(50)

¥

Proceeds from sales and redemption of monetary claims purchased
Investments in monetary trusts(400)(14,440)(2,000)$(3,603)(130,105)

25,454

13,728

123,689(137,658)(92,532)(833,701)

35,470

10,15791,517Purchase of securities(1,643,451)(1,826,000)(16,451,936)

Proceeds from sales and redemption of securities

1,265,588

1,509,010

13,595,915

Investments in loans(397,753)(370,968)(3,342,358)

435,667

350,823

3,160,858

Proceeds from monetary trusts

Collection of loans
Others, net

5,560(39,418)(355,154)

Subtotal(413,173)(460,040)(4,144,879)

Total of net cash provided by (used in) operating activities and investment transactions as above(43,045)

116,918

1,053,410

Purchase of tangible fixed assets(53,658)(19,914)(179,426)

Proceeds from disposal of tangible fixed assets

247

1,570

14,147

Others, net

(574)

(300)

(2,705)(467,159)(478,684)(4,312,863)

3,000

—

—

Net cash provided by (used in) investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term debenture
Proceeds from issuance of debt

22,80012,500112,622

Repayments of debt

(12,331)(41,927)(377,759)

Proceeds from issuance of bonds

37,00050,000450,491—(20,000)(180,196)

Proceeds from share issuance to non-controlling shareholders

2,147

1,040

9,374

Redemption of bonds
Repayments to non-controlling shareholders

(405)

—

—

Payment of lease obligations

(527)

(450)

(4,057)Purchase of treasury shares(17,018)(18,348)(165,313)

0

5

53

(21,926)(24,622)(221,839)

(48)

(44)

(403)

0

0

1

12,690(41,846)(377,027)

Proceeds from disposal of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities(2,387)(908)(8,188)Net increase (decrease) in cash and cash equivalents(86,728)

55,518500,209

Cash and cash equivalents at the beginning of the year

885,267

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the end of the year (Note 19)¥

798,538¥

798,538

7,194,691

854,057$ 7,694,901

See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2019107

Corporate Data

Notes to Consolidated Financial Statements
Note 1

Notes on Going-Concern Assumption

Not applicable.
Note 2

Summary of Significant Accounting Policies(1) Basis of presentation(2) Principles of consolidation

On April 1, 2004, T&D Holdings, Inc. (the “Company”) was es-

a. Matters related to the scope of consolidation

tablished as a life insurance holding company, of which Taiyo Life(i) Number of consolidated subsidiaries: 16

Insurance Company (“Taiyo Life”), Daido Life Insurance Company

		Names of main consolidated subsidiaries are stated in(“Daido Life”) and T&D Financial Life Insurance Company (“T&D
Financial Life”) (hereafter, the “Three Life Insurance Companies”)“Group Companies” of the Annual Report.
(ii) Names of main non-consolidated subsidiaries, etc.: none

became wholly owned subsidiaries through share transfers.
The business combination was accounted for as a pooling ofinterests.
The Company, including its domestic consolidated subsidiaries(the “T&D Insurance Group”), maintains its accounting records

b. Matters related to the application of the equity method(i)	Number of non-consolidated subsidiaries accounted forunder the equity method: none(ii)	Number of affiliates accounted for under the equity

and prepares its financial statements in Japanese yen in accor-

method: 3

dance with the provisions of the Insurance Business Act of JapanThe affiliates accounted for under the equity method(the “Insurance Business Act”) and in conformity with generally

are Alternative Investment Capital Limited, Thuriya Ace

accepted accounting principles and practices in Japan.

Technology Company Limited and one other company.

The accompanying consolidated financial statements are com-(iii)	Names of non-consolidated subsidiaries and affiliates not

piled from the financial statements prepared by the Company asaccounted for under the equity method, etc.: none

required by the Financial Instruments and Exchange Act of Japan.

(iv)	For the companies accounted for under the equity

In preparing the consolidated financial statements, certain items

method for which the closing date is different from thepresented in the original financial statements have been reclas-

consolidated closing date, the financial statements ofsified and summarized for readers outside Japan. These consol-

each company’s fiscal year are used.

idated financial statements have been prepared on the basis ofgenerally accepted accounting principles and practices in Japan,c.	Matters related to the fiscal year of consolidated subsidiaries, etc.

which are different in certain respects from the application and	The closing date of some consolidated subsidiaries isdisclosure requirements of International Financial Reporting

December 31. In preparing the consolidated financial state-

Standards. In addition, the accompanying footnotes include in-ments, financial statements as of that date are used andformation that is not required under generally accepted account-necessary adjustments are made on consolidation to reflect

ing principles and practices in Japan, but is presented herein as

significant transactions that occurred between the closing

additional information to the consolidated financial statements.

date and the consolidated closing date.

The translations of Japanese yen amounts into U.S. dollar
amounts are included solely for the convenience of the readers(3) Foreign currency translationand have been made, as a matter of arithmetical computation

Foreign currency assets and liabilities are translated into Japanese

only, at the rate of 1 U.S. dollar = 110.99 Japanese yen, which

yen at the prevailing foreign exchange rates at the consolidated

was the approximate rate prevailing at the end of March, 2019.

balance sheet date.

The translations should not be construed as representations that

Assets, liabilities, revenues and expenses of the Company’s

such yen amounts have been, could have been or could in theaffiliates located outside Japan are translated into Japanese yen

future be converted into U.S. dollars at that or any other rate.

at the exchange rates in effect at the respective balance sheet

Amounts of less than one million Japanese yen and one thou-in net assets as foreign currency translation adjustments orand U.S. dollar totals shown herein do not necessarily agree with

non-controlling interests.

the sum of the individual amounts.

108

date. Translation differences of foreign currencies are included

sand U.S. dollars have been eliminated. As a result, Japanese yen

T&D Holdings INTEGRATED REPORT 2019

(4) Accounting policy for measuring significant assets

insurance policies are identified and classified as a sub-segment.

a.	Evaluation criteria and evaluation method for securities (in-– All policies except for group insurance products segment, othercluding cash and deposits/monetary claims purchased which

insurance product segment, non-participating currency specif-

are equivalent to securities and securities invested as trust

ic-type single-premium individual annuity insurance, etc., in theproperties in monetary trusts)

general asset segment(i)	Trading securities		– Fair value method (costs of securities sold are calculated based on the moving average method)(ii) Held-to-maturity bonds
		– Amortized cost method based on the moving averagemethod (straight-line method)(iii) Policy-reserve-matching bonds
		– Amortized cost method based on the moving average– All non-participating currency specific-type single-premium
individual annuity insurance policies by currency in the general
asset segment– All defined contribution corporate pension insurance policies
and all group pure endowment insurance in the group annuity
insurance asset segment– All insurance policies in the single-premium whole life/annuity
insurance asset segment

method (straight-line method)(iv) Available-for-sale securities[Daido Life]		– Securities with market value are valued by the fair value

Managed by setting the investment policy fully considering themethod (costs of securities sold are calculated based

characteristics and the risk tolerance of insurance products inon the moving average method) based on the market

order to ensure the fulfillment of future obligations.

price, etc., of the last day of the consolidated fiscal year		– Securities deemed extremely difficult to determinewith the characteristics of the insurance products are set andmarket value, which are public and corporate bonds

bonds held in the attempt to control the duration within each(including foreign bonds), for which the difference

sub-segment are classified as policy-reserve-matching bonds. The

between the purchase price and face value is recog-

sub-segments are set as follows:

nized as an interest rate adjustment are valued by the– Individual insurance/individual annuity insurance in the generalamortized cost method based on the moving averagemethod (straight-line method)		

Based on this investment policy, sub-segments in accordance– Securities other than the above are valued by the cost

asset segment– Individual insurance/individual annuity insurance in the
non-participating insurance asset segment (subjects are themethod based on the moving average method

cash flows likely to occur in the period of over 5 years andValuation differences on available-for-sale securities arewithin 30 years in the future)included in net assets.
For some of the consolidated subsidiaries, translation– Group annuity insurance in the group annuity insurance
asset segment

differences of bonds in foreign currency-denominatedavailable-for-sale securities are treated as follows: the[T&D Financial Life]

translation differences from foreign currency fair value

Sub-segments are set in accordance with the characteristics of thefluctuations are recorded as “net unrealized gains

insurance products and the asset management policy is formulat-(losses)” and the remaining differences as “foreign

ed considering each sub-segment in order to manage interest rateexchange gains (losses).”risk appropriately. Further, the matching of the duration of policy
reserves and policy-reserve-matching bonds within constant width

The overview of the risk management policies of policy-re-are verified regularly. The sub-segments are set as follows:

serve-matching bonds– Individual insurance (the portion of the future payout at the[Taiyo Life]certain attained age and above of the subject insurance type)Managed by setting the investment policy of attempting to– Accumulation rate type individual insurance

effectively reduce the risk of the whole portfolio by asset mix– Accumulation rate type fixed annuity insurance

which is based on a balanced-type ALM aiming at exceeding

Note that some insurance types and benefits are excluded.

medium- and long-term liability cost.
Taking into account this investment policy and based on the

Evaluation criteria and evaluation method of derivative transactionsb.	“Temporary Treatment of Accounting and Auditing Concerning

Evaluation of derivative transactions is processed based on

Policy-Reserve-Matching Bonds within the Insurance Industry”

the fair value method.

(JICPA, Industry Audit Committee Report No. 21), the following
T&D Holdings INTEGRATED REPORT 2019109

Corporate Data

(5) Processing method for deferred assets(8) Funding method for policy reserve

Bond issuance costs are processed as expenses in full amount

Policy reserves of the Three Life Insurance Companies arewhen incurred.

reserves pursuant to requirements under Article 116 of the
Insurance Business Act. The premium reserve is calculated based(6) Reserve for possible loan losseson the following methods.

The reserve for possible loan losses of the Three Life Insurance– For policies subject to standard policy reserve, the method es-

Companies is allocated in accordance with the self-assessment

tablished by the Commissioner of the Financial Services Agency

criteria and amortization/provision criteria of assets in order to(Notification No. 48 of the Ministry of Finance (1996))

provide for losses due to irrecoverable credits, as follows:
For loans to borrowers who are in a state of legal/formal bank-– For policies not subject to standard policy reserve, net level
premium method

ruptcy such as bankruptcy and civil rehabilitation, or in a state of

In addition, Daido Life is funding additional policy reserves

substantial bankruptcy, the remaining amount of the loan afterin accordance with Article 69, Paragraph 5 of the Ordinancedirectly deducting the amount stated below, less the estimatedfor Enforcement of the Insurance Business Act, for certain

amount collectible from collateral and guarantees is recorded.

individual annuity insurance for which the annuity payment

For loans to borrowers who are not yet bankrupt but highly

has been initiated.

likely to fall into bankruptcy, the amount deemed necessary fromthe overall assessment of the borrowers’ solvency is recorded
from the remaining amount of the loan after deducting the estimated amount collectible from collateral and guarantees.
For loans other than the above (performing loans and doubtful(9)	Provision for bonuses to directors and audit &supervisory board members
To provide for payment of bonuses to directors and audit & supervisory board members, a provision for the directors’ and audit

loans), historical loan-loss ratio calculated from the loan losses& supervisory board members’ bonuses is recorded based on thefrom the fixed period in the past, multiplied by the loan amount,

expected amount to be paid in the year ended March 31, 2019.

etc., is recorded.
All loans are subject to asset assessment by the related division(10) Provision for share-based remuneration

based on the self-assessment criteria of the assets. The reserve

To provide for delivery of stock of the Company to directors

mentioned above is implemented based on the assessment

and audit & supervisory board members, the estimated amountresults, after the asset auditing division independent from theof share benefit obligations based on the internal rules of therelated division audits the assessment results.

Company and Three Life Insurance Companies is recorded in

For collateralized or guaranteed loans to borrowers subject

provision for share-based remuneration.

to bankruptcy or substantial bankruptcy, the amount of loans
exceeding the estimated value of collateral or guarantees,
which were deemed uncollectible, was directly deducted from(11) Provision for directors’ and audit & supervisoryboard members’ retirement benefits

the amount of loans in the amounts of ¥379 million and ¥372

To provide for directors’ and audit & supervisory board members’

million [$3,358 thousand] for the years ended March 31, 2018

retirement benefits, the Company sets up a provision for direc-

and 2019, respectively.

tors’ and audit & supervisory board members’ retirement benefits

Consolidated subsidiaries other than the Three Life Insurance

based on the internal rules of certain consolidated subsidiaries,

Companies allocate reserves for possible loan losses, in accor-

which is recorded in the amount recognized to have accrued as

dance with criteria equivalent to the above, based on the resultsof March 31, 2019.

of the assessment which is implemented in the scope deemednecessary considering the importance.

(12) A ccounting method for employees’ retirement benefits
For the calculation of retirement benefit obligations, the method(7) Allocation method for reserve for price fluctuations

for attributing the expected retirement benefit amount to eachReserves for price fluctuations of the Three Life Insurance

period up to the current fiscal year-end is based on the benefit

Companies are allocated in order to provide for losses due toformula standard.

price fluctuations, which is pursuant to requirements under
Article 115 of the Insurance Business Act.

Actuarial gains and losses, past service costs and losses relating
to changes in accounting policies are expensed in the fiscal year
which they accrue.

110

T&D Holdings INTEGRATED REPORT 2019(13) D epreciation method for significant depreciation assets

treatment, and allocation treatment is applied for currency

a. Tangible fixed assets (except for lease assets)	Depreciation of tangible fixed assets (except for lease assets)

swap transactions qualifying for allocation treatment.
(ii) Hedging instrument and hedged item

is mainly calculated under the declining-balance method.

		

Depreciation of buildings (except for building and acces-

			 Hedged item:

sories, and structures) acquired on and after April 1, 1998,

		

and building and accessories, and structures acquired on

			 Hedged item:

and after April 1, 2016, is calculated under the straight-line		method. The main durable years are as follows:			 Hedged item:– Buildings, building and accessories, and structures: 2-50 years		– Furniture and fixtures: 2-20 years

			 Hedged item:	domestic and foreign stocks,

1) Hedging instrument: interest rate swap
loans and bonds

2) Hedging instrument: currency swap
foreign currency-denominated loans3) Hedging instrument: foreign exchange contract
foreign currency-denominated assets

4) Hedging instrument: option
domestic and foreign-listed
investment trusts, domestic bonds

b. Intangible fixed assets (except for lease assets)	Depreciation of software used in-house is calculated under
the straight-line method over a useful life of five years.

		5) Hedging instrument: credit transaction

			 Hedged item:	domestic and foreign stocks,
domestic and foreign-listed
investment trustsc. Lease assets
	For the depreciation of lease assets, lease assets with respect		

to ownership-transfer finance leases are calculated under the			 Hedged item:	domestic and foreign stocks,

same method for self-owned tangible fixed assets, and leasedomestic and foreign-listed

assets with respect to non-ownership-transfer finance leases areinvestment trusts

calculated under the straight-line method over the lease period.

6) Hedging instrument: forward contract(iii) Hedging policy
Based on internal rules, etc., in accordance with the risk

(14) L and revaluation

management policy concerning asset management, cash

Taiyo Life revalued its land for operating purposes based on Act

flow and price fluctuation risks related to hedged items

on Revaluation of Land (Act No. 34 of 1998). Regarding thevaluation differences between the previous and the revalued

are hedged within a certain range.
(iv) Evaluation method for hedge effectivenessamounts, the tax equivalent to this valuation differences has

Hedge effectiveness is evaluated semi-annually by meth-

been recorded in Liabilities section as “Deferred tax liabilities on

ods such as ratio analysis which compares the cumulative

land revaluation” and the amount after deducting the tax equiv-

total of market fluctuations or cash flow fluctuations

alent from the valuation differences is recorded in Net Assets asof hedged items and hedging instruments. However,“Land revaluation.”

evaluation of hedge effectiveness is omitted for interest– The method of revaluation provided for in Article 3, Paragraphrate swap transactions under special treatment, etc.,

3 of the same law
The amount is rationally adjusted and calculated based on thecurrency swap transactions under allocation treatment,
contracts in which both the hedged item and the hedg-

listed land price value as prescribed in Article 2, Item 1 of theing instrument are denominated in the same currency,

Order for Enforcement of the Act on Revaluation of Land (Actoption transactions in which hedged items are domestic/

No. 119 of 1998), the benchmark land price as prescribed inforeign stocks and domestic/foreign-listed investment

Article 2, Item 2 of the same, and an appraisal by the real estate

trusts, credit transactions and forward contracts, andappraisers as prescribed in Article 2, Item 5 of the same, etc.

option transactions in which domestic bonds are the– Date of revaluation: March 31, 2002(15) Method for significant hedge accounting
a. Hedge accounting method for Taiyo Life(i) Method for hedge accounting

hedged item.
b. Hedge accounting method for Daido Life(i) Method for hedge accounting		Fair value hedge treatment is adopted for the method forDeferral hedge treatment and fair value hedge treatment

hedge accounting. Allocation treatment is adopted forare used in hedge accounting. Special treatment is applied

foreign exchange contract transactions hedging foreign

for interest rate swap transactions qualifying for special

currency fixed deposits qualifying for allocation treatment.

T&D Holdings INTEGRATED REPORT 2019111

Corporate Data(ii) Hedging instrument and hedged item

Step 3: Calculate the transaction price.

		Hedging instrument: foreign exchange contract

Step 4: Allocate the transaction price to the performance		

Hedged item:	foreign currency-denominatedavailable-for-sale securities andfixed deposits(iii) Hedging policy		Based on internal rules, etc., concerning asset management, foreign exchange fluctuation risks of hedged items
are hedged within a certain range.

obligations of the contract.
Step 5: Recognize the revenue at the time when the performance obligations are fulfilled or as the performanceobligations become fulfilled.
b. Scheduled date of application
	Scheduled to be applied from the beginning of the fiscal year
starting April 1, 2021.

(iv) Evaluation method for hedge effectivenessc. Effect of the application of the accounting standards

		Hedge effectiveness is evaluated by ratio analysis which

	The amount of the impact is under evaluation at the time

mainly compares the fair value fluctuation of hedgedof preparing the consolidated financial statements for theitems and hedging instruments.

consolidated fiscal year ended March 31, 2019.

However, the evaluation is omitted if the material conditions of the hedged item and the hedging instrument[Additional information]

are the same and hedge effectiveness is high.

The Company has introduced a trust type stock compensation
system(the “System”), the Board Incentive Plan (BIP) Trust, which(16) Accounting treatment for consumption taxes

uses a trust to deliver the Company’s shares, etc. to directors (ex-The accounting treatment of consumption tax and local con-cluding those who are part-time directors such as outside direc-

sumption tax is based on the tax exclusion method. However,tors and non-residents in Japan) and executive officers (excluding

non-deductible consumption tax on assets, etc., which is pre-those who are non-residents in Japan, and together with direc-

scribed in the tax law as deferred consumption tax, etc., istors, referred to as “Directors” ) of the Company and Three Life

recorded in other assets and amortized over a 5-year period on a

Insurance Companies, with an aim to enhance the motivation ofstraight-line basis, whereas tax other than deferred consumption

Directors to contribute to improving business performance andtax is expensed in the fiscal year in which it accrues.

enhancing corporate value over the medium-to long-term.

(17) S cope of cash and cash equivalents in the

Solution on Transactions of Delivering the Company’s Own Stock

The accounting treatment of the System is based on “Practicalconsolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of

to Employees etc. through Trusts” (ASBJ Practical Issues Task
Force (PITF) No. 30, March 26, 2015)

cash flows consist of cash, deposits withdrawable at any timeand readily convertible into cash, and short-term investments

a. Summary(term deposits, call loans, commercial paper, treasury discount	Based on the internal rules of the Company and Three Lifebills, etc.) with insignificant risk of price fluctuations and with a

Insurance Companies, the points are granted to Director

maturity of 3 months or less at the time of acquisition.

and they are delivered and provided through a trust of theCompany’s shares equivalent to accumulated points upon(18) Unadopted accounting standards, etc.

retirement and a monetary equivalent of the substitution[Accounting Standard for Revenue Recognition, etc.]

value of the Company’s shares. The Company’s shares to be– “Accounting Standard for Revenue Recognition” (ASBJ

delivered to Directors will be acquired in advance by money

Guidance No. 29, issued on March 30, 2018)– “Implementation Guidance on Accounting Standard for
Revenue Recognition” (ASBJ Guidance No. 30, issued on
March 30, 2018)

in trust by the Company.
b. The Company’s shares remaining in BIP Trust	For the Company’s shares remaining in BIP Trust, the carrying value in the trust is recorded as the treasury share in net
asset (excluding ancillary expenses). The carrying value anda. Summary

the number of treasury share in the Trust as of March 31,

	A comprehensive accounting standard for revenue recognition.

2019 was ¥1,322 million [$11,913 thousand] and 827,900

Revenue will be recognized applying the following five steps.
Step 1: Identify the contract with a customer.
Step 2: Identify the performance obligations of the contract.

112

T&D Holdings INTEGRATED REPORT 2019

shares respectively.

Note 3Loans

The amounts of delinquent loans of the Company and its consolidated subsidiaries are as follows:¥ millions

As of March 31,

Loans to bankrupt companies
Past due loans
Loans overdue for three months or more
Restructured loans
Total

Loans to bankrupt companies are loans to borrowers that are

US$ thousands

2018

2019

2019

¥ 194

¥ 138

$ 1,250

384

287

2,591

2,178

1,738

15,667

21

21

191

¥2,779¥2,186$19,700

Loans overdue for three months or more are loans other thansubject to bankruptcy, corporate reorganization or rehabilitation

those categorized as loans to bankrupt companies or past due

or other similar proceedings on which the Company and its

loans for which principal and/or interest are overdue for three

consolidated subsidiaries have stopped accruing interest aftermonths or more beginning the day after the agreed due date.

determining that collection or repayment of principal or interest

Restructured loans are loans other than those categorized as

is unlikely due to a significant delay in payment of principal orloans to bankrupt companies, past due loans or loans overdue

interest or for some other reason.

for three months or more for which agreements have been madePast due loans are loans, other than those categorized as

between the relevant parties to provide a concessionary interest

loans to bankrupt companies and loans for which due dates for

rate, rescheduling of due dates for interest and/or principal pay-interest payments have been rescheduled for purposes of restruc-ments, waiver of claims and/or other terms in favor of the bor-turing or supporting the borrower, on which the Company andrower for purposes of restructuring or supporting the borrower.

its consolidated subsidiaries have stopped accruing interest basedon self-assessment.

The direct write-downs of estimated uncollectable loans are
as follows:¥ millions

US$ thousands

As of March 31,

2018

2019

2019

Loans to bankrupt companies

¥ 74

¥ 72

$655

Past due loans

101

103

933

¥ millions

US$ thousands

Note 4

Accumulated Depreciation of Tangible Fixed Assets

The amounts of accumulated depreciation of tangible fixed assets are as follows:
Years ended March 31,

Accumulated depreciation of tangible fixed assets

Note 5

2018

2019

2019

¥236,200¥235,919$2,125,594

Separate Account Assets

The amounts of separate account assets as provided in Article 118, Paragraph 1 of the Insurance Business Act are as follows. The amountsof liabilities are equal to the amounts of assets.
¥ millions

Years ended March 31,

Separate account assets as provided in Article 118, Paragraph 1 of the Insurance Business Act

Note 6

US$ thousands

2018

2019

2019

¥64,224¥50,994$459,448¥ millions

US$ thousands

Reserve for Policyholder Dividends

The changes in reserve for policyholder dividends included in policy reserves are as follows:
2018

2019

2019

Balance at the beginning of the year

¥ 92,942¥ 88,889$ 800,880

Policyholder dividends

Years ended March 31,(34,469)(33,435)(301,250)

Increase in interest

19

18

165

Increase due to other reasons

65

46

421

30,331

27,144

244,566¥ 88,889¥ 82,663$ 744,783

Provision for reserve for policyholder dividends
Balance at the end of the year

T&D Holdings INTEGRATED REPORT 2019113

Corporate Data

Note 7

Unused Loan Balance under Loan Commitments

The unused loan balance under loan commitments is as follows:¥ millions

Years ended March 31,

Total amount of loan commitments
Balance of loans outstanding
Balance

Note 8

US$ thousands

2018

2019

2019

¥24,143¥31,301$282,022

6,800

10,97598,884¥17,342¥20,326$183,138¥ millions

US$ thousands

Lending Securities for Loan Agreements

The lending securities for loan agreements are as follows:
Years ended March 31,

Lending securities for loan agreement

Note 9

2018

2019

2019

¥449,505¥746,444$6,725,333

Bonds

Bonds include subordinated bonds, of which the payment priority is subordinated to other debts. The amounts are as follows:¥ millions

US$ thousands

Years ended March 31,

2018

2019

2019

Subordinated bonds¥57,000¥87,000$783,854

Note 10

Other Liabilities

Other liabilities include subordinated borrowings, of which the payment priority is subordinated to other debts. The amounts are as follows:¥ millions

Years ended March 31,

Subordinated borrowings

Note 11

US$ thousands

2018

2019

2019

¥43,000¥13,000$117,127

Future Contributions to the Life Insurance Policyholders Protection Corporation of JapanThe amounts of the Three Life Insurance Companies’ future contributions to the Life Insurance Policyholders Protection Corporation ofJapan, which are estimated in accordance with Article 259 of the Insurance Business Act, are as follows. The contributions are recordedon the consolidated statement of operation as an operating expense when contributed.
¥ millions

Years ended March 31,

Contributions to the Life Insurance Policyholders Protection Corporation

Note 12

US$ thousands

2018

2019

2019

¥21,597¥20,685$186,375

Organizational Change Surplus

The amounts of the organizational change surplus prescribed in Article 91 of the Insurance Business Act, are as follows:¥ millions

US$ thousands

2018

2019

2019

Taiyo Life Insurance Company¥63,158¥63,158$569,045

Daido Life Insurance Company

10,836

10,836

97,633¥ millions

US$ thousands

Years ended March 31,

Note 13

Stocks of Affiliated Companies

Stocks of affiliated companies included in securities are as follows:

114

Years ended March 31,

2018

2019

2019

Stocks of affiliated companies

¥410

¥615

$5,548

T&D Holdings INTEGRATED REPORT 2019

Note 14

Assets Pledged as Collateral and Secured Debts

Assets pledged as collateral are as follows:¥ millions

Securities (Japanese government bonds)

US$ thousands

2018

2019

2019

¥140,025¥256,056$2,307,021

Years ended March 31,

Securities (Corporate bonds)—

21,670195,244

Securities (Foreign securities)

370,941

567,489

5,112,977

871

125

1,126

¥511,837¥845,340$7,616,369

Cash collateral pledged for financial instruments
Balance

Of these assets, securities are mainly pledged as a substitute for the overdraft limit of the exclusive account of real-time gross settlementof government bonds with the Bank of Japan, bond-lending transactions secured by securities, and margin for futures contracts, etc.
Secured debts¥ millions

Cash collateral received for bond-lending transactions

Note 15

2019

2019

¥109,943¥161,672$1,456,636

Fair Value of Financial Assets Received as Collateral with Free Right of Disposal¥ millions

Financial Assets Received as Collateral with Free Right of Disposal

US$ thousands

2018

2019

2019

¥70,441¥34,988$315,236

Years ended March 31,

Note 16

US$ thousands

2018

Years ended March 31,

Impairment Losses on Fixed Assets

The items regarding impairment losses on fixed assets are as follows:(1) Grouping of assets(2)	Circumstances which led to the recognition of
impairment losses

The Three Life Insurance Companies’ group real estate owned for
insurance operations, etc., as a single asset group and other as-

For some rental properties, etc., carrying amount was reduced tosets such as rental property and unused real estate are grouped

the recoverable amount and the reduced amount was recorded

separately by each property.

in extraordinary losses as impairment losses because of a signifi-

Each of the consolidated subsidiaries other than the Company
and the Three Life Insurance Companies, groups real estate heldcant drop in the market price and a decline in profitability due tothe stagnant rental income level, etc.

for its own operations as a single category.

(3) Impairment losses recognized by asset group and the breakdown of the amounts of impairment losses by fixed asset type
Year ended March 31, 2018

¥ millions

Asset

LocationLand

Buildings, etc.

Total

Rental properties, etc.

Inazawa City, Aichi Prefecture, etc. (16 assets)

¥509

¥234

¥744

Asset

LocationLand

Buildings, etc.

Total

Total

Rental properties, etc.

Tokushima City, Tokushima Prefecture, etc. (29 assets)¥1,359¥753¥2,113$19,039

Year ended March 31, 2019¥ millions

US$ thousands

T&D Holdings INTEGRATED REPORT 2019115

Corporate Data(4)	Method for calculating the recoverable amountthe fiscal year 2018. In principle, the net realizable value for real

The recoverable amount is based on the value in use or net real-estate owned for rental properties is calculated by subtracting

izable value for rental properties, etc.

the estimated costs of disposal from the appraisal value calculat-

The value in use for real estate owned for rental properties,

ed in accordance with the real estate appraisal standard.

etc., is calculated by discounting future cash flows by 5.30% forNote 17

Consolidated Statement of Comprehensive Income

Reclassification adjustments and tax effects regarding other comprehensive income are as follows:
Years ended March 31,¥ millions

US$ thousands

2018

2019

2019

Valuation difference on available-for-sale securities:
Amount occurred during the year

¥ 67,882¥ 33,929$ 305,698

Reclassification adjustments(47,131)(67,100)(604,565)

Amount before tax effect

20,751(33,171)(298,867)

Tax effect(5,987)

7,580

68,300

Valuation difference on available-for-sale securities

14,764(25,590)(230,566)———

Reclassification adjustments

1,226

1,850

16,673

Amount before tax effect

1,226

1,850

16,673Tax effect

(343)

(518)

(4,668)Deferred gains (losses) on hedging instruments

883

1,332

12,005

(0)

(0)

(0)

Deferred gains (losses) on hedging instruments:
Amount occurred during the year

Foreign currency translation adjustments:
Amount occurred during the year
Share of other comprehensive income of associates accounted for using the equity method:Amount occurred during the year

(6)

5

52

Total other comprehensive income¥ 15,640¥(24,252)$(218,509)

Note 18

Consolidated Statement of Changes in Net Assets

For the year ended March 31, 2018

(1) Type and number of issued shares and treasury sharesYear ended March 31, 2018

Number of sharesat the beginning of the fiscal year

Number of shares increasedin the fiscal year

Number of shares decreasedin the fiscal year

Number of sharesat the end of the fiscal year

681,480,000—

26,480,000

655,000,000

48,925,774

10,623,176

26,746,490

32,802,460

Issued shares:
Common stock
Treasury shares:
Common stock

Notes:
1. Issued shares of common stock decreased due to the following reason:– Retirement of treasury shares based on the resolution made at a board of directors meeting held on August 9, 2017: 26,480,000 shares
2. Treasury shares of common stock increased due to the following reasons:– Purchase of treasury shares based on the resolution made at a board of directors meeting held on May 15, 2017: 10,612,300 shares– Purchase of odd-lot shares: 10,876 shares
3. Treasury shares of common stock decreased due to the following reasons:– Retirement of treasury shares based on the resolution made at a board of directors meeting held on August 9, 2017: 26,480,000 shares– Exercise of stock option: 266,400 shares– Purchase request of odd-lot shares: 90 shares(2) Subscription rights to shares
Category

Breakdown of subscription rights to shares

Balance at the end of the fiscal year
¥ millions

The Company

116

Share subscription rights as stock options

T&D Holdings INTEGRATED REPORT 2019

¥1,216

(3) Shareholder dividends
a. Shareholder dividends paid
Date of resolution

Type of shares

Amount of shareholder dividends

Shareholder dividends per share¥ millions¥

Record date

Effective dateJune 29, 2017

Ordinary General Meeting of
Shareholders held on June 28, 2017

Common stock¥11,069¥17.5

March 31, 2017

Board of directors meeting held on
November 13, 2017

Common stock¥10,888¥17.5

September 30, 2017 December 5, 2017b.	Shareholder dividends whose record date was in the fiscal year ended March 31, 2018, while their effective date is in the fiscal year
ending March 31, 2019
Date of resolution

Amount ofshareholder dividends

Type of shares

Shareholder
dividends per share

Underlying assets¥ millions

Ordinary General Meeting of
Shareholders held on June 27, 2018

Common stock¥12,443

Record date

Effective date¥

Retained earnings¥20.0

March 31, 2018 June 28, 2018

For the year ended March 31, 2019(1) Type and number of issued shares and treasury sharesYear ended March 31, 2019

Number of sharesat the beginning of the fiscal year

Number of shares increasedin the fiscal year

Number of shares decreasedin the fiscal year

Number of sharesat the end of the fiscal year

655,000,000——

655,000,000

32,802,460

10,366,001

126,770

43,041,691

Issued shares:
Common stock
Treasury shares:
Common stock

Notes:
1. Treasury shares of common stock increased due to the following reasons:– Purchase of treasury shares based on the resolution made at a board of directors meeting held on May 15, 2018: 9,522,000 shares– Purchase of odd-lot shares: 11,301 shares– Purchase by the BIP (Board Incentive Plan) Trust: 832,700 shares
2. Treasury shares of common stock decreased due to the following reasons:– Exercise of stock option: 121,700 shares– Purchase request of odd-lot shares: 270 shares– Decrease by the BIP Trust: 4,800 shares
3. The number of treasury shares of common stock includes 827,900 shares of the Company’s treasury share owned by the BIP Trust as of the end of the fiscal year. (0 share as of beginning of the fiscal year)(2) Subscription rights to shares
Category

The Company

Breakdown of subscription rights to shares

Balance at the end of the fiscal year

Share subscription rights as stock options¥ millions

US$ thousands¥1,081$9,742(3) Shareholder dividends
a. Shareholder dividends paid
Date of resolution

Type of shares

Amount of shareholder dividends

Shareholder dividends per share¥ millions

US$ thousands¥

US$

Record date

Effective dateJune 28, 2018

Ordinary General Meeting of
Shareholders held on June 27, 2018

Common stock¥12,443$112,117

¥20.0

$0.18

March 31, 2018

Board of directors meeting held on
November 14, 2018

Common stock¥12,255$110,422

¥20.0

$0.18

September 30, 2018 December 7, 2018

Note: T he total amount of shareholder dividends, which based on the resolution made at the board of directors held on November 14, 2018, includes ¥16 million of the dividends for the Company’streasury share owned by the BIP Trust.

b.	Shareholder dividends whose record date is in the fiscal year ended March 31, 2019, while their effective date is in the fiscal year
ending March 31, 2020
Date of resolution

Ordinary General Meeting of
Shareholders held on June 26, 2019

Type of shares

Common stock

Amount ofshareholder dividends¥ millions

US$ thousands¥13,481$121,464

Underlying
assetsRetainedearnings

Shareholder
dividends per share
¥

US$

¥22.0

$0.19

Record date

Effective date

March 31, 2019 June 27, 2019

Note: The total amount of shareholder dividends includes ¥18 million of the dividends for the Company’s treasury share owned by the BIP Trust.

T&D Holdings INTEGRATED REPORT 2019117

Corporate Data

Note 19

Consolidated Statement of Cash FlowsThe following table provides a reconciliation of cash and cash equivalents in the consolidated statement of cash flows to cash and cash
deposits as stated in the consolidated balance sheet.
¥ millions

As of March 31,

Cash and deposits

US$ thousands

2018

2019

2019

¥ 776,510¥ 824,241$ 7,426,263(44,238)

Less: deposits with an original maturity of more than three months(4,510)(4,910)Call loans

10,539

1,037

9,343

Monetary claims purchased

117,578

126,905

1,143,391

Less: monetary claims purchased other than cash equivalents(101,578)(101,905)(918,149)

Monetary trusts

685,819

765,4816,896,849

Less: monetary trusts other than cash equivalents(685,819)(756,791)(6,818,559)

Cash and cash equivalents¥ 798,538¥ 854,057$ 7,694,901

Note 20

Lease Transactions[As lessee](1) Finance leases
a. Ownership-transfer finance leases(i) Details of lease assets
		– Intangible fixed assets: software(ii) Depreciation method for lease assets
		The same depreciation method applied to self-owned fixed assets is applied.

b. Non-ownership-transfer finance leases(i) Details of lease assets
		– Tangible fixed assets: office appliances such as computer servers

		– Intangible fixed assets: software(ii) Depreciation method for lease assets		Straight-line method over the lease period is applied.

(2) Operating leases
Future lease payments under non-cancellable operating leases are as follows:
As of March 31,

Due within one year

¥ millions

US$ thousands

2018

2019

2019

¥6

¥3

$35

Due after one year

1

1

16

Total

¥8

¥5

$52

[As lessor](1) Details of lease investment assets
Other assets¥ millions

US$ thousands

2018

2019

2019

Lease income receivables¥34,681¥39,081$352,120

Estimated residual value

473

83

756

(2,837)(3,115)(28,070)¥32,318¥36,050$324,805

As of March 31,

Other:

Interest income
Total lease investment assets

118

T&D Holdings INTEGRATED REPORT 2019

(2)	Projected collection amounts of lease income receivables related to lease receivables and lease investment assets
after the consolidated closing dates
Other assets¥ millions

As of March 31, 2018

Lease receivables

Lease investment assets

Due within one year

¥1,762¥8,758Due after one year through two years

1,515

7,282

Due after two years through three years

1,200

5,913

Due after three years through four years

882

4,605

Due after four years through five years

631

3,233

Due after five years

1,060

4,887

As of March 31, 2019

Lease receivables

Lease investment assets

Lease receivables

Lease investment assets

Due within one year

¥1,759¥9,436$15,852$85,024

Due after one year through two years

1,441

8,016

12,98972,227

Due after two years through three years

1,110

6,672

10,00960,115Due after three years through four years

850

5,277

7,667

47,552

Due after four years through five years

614

3,924

5,538

35,355

1,052

5,754

9,484

51,845¥ millions

Due after five years

Note 21

US$ thousands

Tax-Effect Accounting(1) Breakdown of the accrual of deferred tax assets and liabilities by main causes
As of March 31,¥ millions

US$ thousands

2018

2019

2019

Deferred tax assets:¥ 61,432¥ 65,736

Policy reserves

63,984

63,913575,853

Net defined benefit liability

29,89729,968270,013

Devaluation losses on securities

15,355

14,881

134,076

Deferred losses on disposal of fixed assets

5,485

5,335

48,070

Provision for bonuses

2,120

2,284

20,580Tax loss carry-forward

1,257

1,121

10,100

464

464

4,186

13,835

12,731

114,708

Subtotal

193,835

196,437

1,769,866

Valuation allowance(16,535)(16,179)(145,770)

Total deferred tax assets

177,300

180,258

1,624,096(128,756)(121,175)(1,091,769)(2,262)(2,599)(23,424)Deferred gain on reduction of carrying amount of real estate

(624)

(715)

(6,445)

Others

(916)

(857)

(7,728)

Total deferred tax liabilities(132,560)(125,348)(1,129,367)

Net deferred tax assets (liabilities)¥ 44,739¥ 54,910$

Reserve for price fluctuations

Reserve for possible loan losses
Others$592,274

Deferred tax liabilities:
Valuation difference on available-for-sale securities
Accrued dividend income

494,729(2)	Breakdown of important differences between the statutory effective tax rate and the corporate tax rate, etc., after
applying tax-effect accounting by main item of the causes
2018

2019

28.2%

28.0%

Valuation allowance

(0.0)

(0.2)

Permanent non-deductible items including entertainment expense, etc.

0.6

0.4

Others

0.4

0.3

29.2%

28.5%

Years ended March 31,

Statutory tax rate
(Adjustments)

Effective tax rate

T&D Holdings INTEGRATED REPORT 2019119Corporate Data

Note 22

Financial Instruments(1) Matters related to the condition of financial instrumentsa. Policy for handling financial instruments

Stringent risk management is in place for derivative transactions, by clearly defining tolerable allowances in terms of

T&D Insurance Group’s main business is life insurance busi-

the details, hedged items and trading limits of the transac-

ness. The Group underwrites various classes of life insurance

tions as well as by properly controlling their status.

and invests the money collected as insurance premiums infinancial assets including securities and loans.

Hedge accounting is appropriately practiced in interest rate
swap agreements for loans and forward exchange contracts

In order to efficiently invest the insurance premiums trust-for foreign currency-denominated assets, under the internal

ed to us by the policyholders, the Group’s asset management

rules clearly defining qualifications, applicable types of trans-

policy aims to build a portfolio which ensures long-term

actions, methods of evaluation of its effectiveness and meth-stable returns considering the characteristics of obligations

ods of its designation. Effectiveness of hedging is determined

involved in life insurance policies, based on the concept ofby ratio analysis methodology comparing the movements of

ERM which integrally manages capital, profit, and risk, and atfair values of the hedged items and hedging instruments.

the same time, paying adequate attention to the soundness
and public nature of the investments.
Derivative financial instruments are used to hedge fluctua-

c. Risk management system for financial instruments(i) Overall risk management systemtion risks involved in our investment in financial instruments,

The Group, in consideration of the social and public

as well as partially complement physical assets.

nature of the life insurance business which is its main

Furthermore, in order to pursue greater financial sound-business, defines precise identification and management

ness, the Group has been financing the subordinated-classof risks as one of the crucial management tasks forcapital (bonds and borrowings).

ensuring the soundness and adequacy of management,
where the Company, as the Group’s holding company,

b. Details and risks of financial instruments
Financial assets held by the Group mainly comprise securities

sets out the basic risk management philosophy within

and loans.

the Group and provides the risk management structure

Securities include public and corporate bonds, stocks andaccording to the business characteristics and risk pro-investment trusts offered at home and abroad that are held

files of each of the Company including the Three Lifeon a long-term basis for the purpose of investment geared

Insurance Companies.

to market prospects to ensure stable returns. These finan-

As an organizational structure, the Group Riskcial instruments are exposed to credit risks of the issuingManagement Committee has been established for theentities and market risks associated with fluctuations in

purpose of coordinated management of risks within theinterest rate, exchange rates and stock prices, as well asGroup, and has a clear understanding of the status ofmarket liquidity risks.

various risks at each company including the Three Life

Loans here include policy loans for policyholders andInsurance Companies, through reports prepared on a reg-commercial loans (non-policy loans) provided mainly toular or as-needed basis at each company using the unified

domestic businesses and individuals. Commercial loans,risk management criteria. Further, the Company provides

though intended to ensure stable returns, are exposed to

guidance and advice as appropriate to companies includ-credit risks of borrowers’ default. A policy loan is provided

ing the Three Life Insurance Companies, to carry out thor-

within the surrender value of each insurance policy, thus its

ough risk management at each company and strengthen

credit risk is minimal.

the Group’s entire risk management system.

Derivative transactions including stock index futures120

has developed a “Group Risk Management Policy” which

At each of the Three Life Insurance Companies, acontracts, forward exchange contracts and interest rate swap

committee has been established to supervise compa-

agreements are used primarily to hedge price fluctuation

ny-wide risk management at an enhanced level, whilerisks of our financial assets, and partially to complement

a mutual check-and-balance system is in place underphysical assets by, for example, providing a solution to thethe internal organizational arrangement including thetime constraint prior to the inclusion of physical assets into

separation of the investment and loan execution function

our portfolio. Accordingly, the Group does not enter intofrom the administration function within the investment

those transactions for speculative purposes.

division, independence of the credit check function and

T&D Holdings INTEGRATED REPORT 2019

implementation of the internal audits by the Internal
Auditing Department.

(iv) Management of liquidity risk
Liquidity risks are managed by ensuring a constant

Furthermore, the Group has established the ERM com-

amount of liquidity based on the Risk Management

mittee to manage risks integrally with profit and capital

Department’s precise understanding of the latest risk

on an economic value basis. Through the promotion andinformation, including the share of highly liquid assets,enhancement of ERM, the Group aims for steady andcash flow situation, trends of the general financial/securi-sustainable growth in its corporate value.

ties markets and the status of individual financial instru-(ii) Management of market risk
Market risks are properly controlled according to thements, as well as by developing a management structurethat enables smooth liquidation of assets for financing.

risk characteristic of each asset based on a precise
understanding of the sensitivity of investment assetsd.	Supplementary notes concerning the matters related to fairto parameters reflecting changes in the investment

value, etc., of financial instruments

environment, including interest rate, stock prices andFair value is based on market price or rationally estimated fairexchange rates, as well as by reviewing asset allocation

value if the market price is not readily available.

and risk hedging based on identification of the overall

Estimation of fair value requires the use of certain assump-risk of the portfolio using the Value at Risk criterion

tions, etc. Therefore, the use of different assumptions, etc.

(hereafter referred to as “VaR”).

may lead to a different value.

(iii) Management of credit risk

In addition, notional amounts of derivative financial

Credit risk of the entire portfolio is identified and con-

instruments shown in “(2) Matters related to fair value,

trolled through its quantification by the use of VaRetc., of financial instruments” do not represent exposure to

based on an internal rating for individual borrowers.

market risks.

Meanwhile, the aggregate amount of investment andloans is capped by each industry sector or by group ofcompanies according to the corresponding risks, whereby concentration of loans to specific industry sectors orgroups of companies is restrained.

T&D Holdings INTEGRATED REPORT 2019121

Corporate Data

(2) Matters related to fair value, etc., of financial instruments
The following tables show consolidated balance sheet amounts, fair values and differences. Financial instruments deemed extremely
difficult to determine fair value are not included. (See Annotation 2.)¥ millions

As of March 31, 2018

Cash and deposits

Consolidatedbalance sheet amount¥Treated as securities

776,510¥

Fair value

Difference

776,510¥—18,00018,000—18,00018,000—

Others758,510758,510—Call loans

10,53910,539—

Monetary claims purchased

117,578

120,140

2,561

Treated as securities

116,405

118,799

2,393

Held-to-maturity bonds

33,33235,726

2,393

Available-for-sale securities

83,072

83,072

—

1,172

1,340

167
37,502Available-for-sale securities

OthersMonetary trusts

685,819

723,322

Monetary trusts for trading purposes

5,312

5,312

—

Monetary trusts for held-to-maturity purposes

38,291

38,443151

Monetary trusts for policy reserve-matching purposes

605,469

642,820

37,351

Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes

36,74536,745—

11,194,328

11,874,881

680,553

64,07964,079—Held-to-maturity bonds

1,253,563

1,458,766

205,203

Policy reserve-matching bonds

2,930,644

3,405,994

475,350

Available-for-sale securities

6,946,040

6,946,040—

1,647,361

1,700,288

52,926

122,143

136,005

13,8691,526,456

1,564,282

39,056

Securities
Trading securities

Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets(1,238)——14,432,137

15,205,681

773,544

Short-term debentures

6,000

6,000

—

Bonds

87,06587,882

817

Cash collateral received for bond-lending transactions within other liabilities

109,943

109,943—

Borrowings within other liabilities

75,07275,244172

278,081

279,070989

Total liabilities
Derivative financial instruments*3:
Hedge accounting not applied

8,723

8,723

—

Hedge accounting applied

33,43834,331

892

Total derivative financial instruments¥

42,162¥

43,054*1. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*2. Reserve for possible loan losses for loans is deducted.
*3. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.

122

T&D Holdings INTEGRATED REPORT 2019¥892

¥ millions

As of March 31, 2019

Cash and deposits

Consolidatedbalance sheet amount¥824,241¥

33,000Treated as securities

Fair value

Difference

824,241¥—

33,000—33,00033,000—

Others791,241

791,241—

Call loans

1,037

1,037

—

Monetary claims purchased

126,905

129,326

2,421

Treated as securities

125,789

128,0412,251

Held-to-maturity bonds

33,18235,4342,251

Available-for-sale securities

92,60792,607

—

1,115

1,284

169

765,481

831,445

65,963

5,161

5,161

—

Available-for-sale securities

OthersMonetary trusts
Monetary trusts for trading purposes
Monetary trusts for held-to-maturity purposes

29,86731,357

1,490

Monetary trusts for policy reserve-matching purposes

669,708

734,182

64,47360,74460,744—

11,547,017

12,327,376

780,359

50,20450,204—

Held-to-maturity bonds

1,235,192

1,453,594

218,402

Policy reserve-matching bonds

3,152,683

3,714,640

561,957

Available-for-sale securities

7,108,936

7,108,936—

1,668,798

1,722,734

53,935

Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes
Securities
Trading securities

Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets
Short-term debentures

118,989

132,528

13,5471,550,999

1,590,205

40,388(1,190)——14,933,480

15,836,160

902,680

6,000

6,000

—
669

Bonds

117,035

117,704

Cash collateral received for bond-lending transactions within other liabilities

161,672

161,672—

Borrowings within other liabilities

45,64445,766

121

330,352

331,143

791

Hedge accounting not applied

11,942

11,942—Hedge accounting applied

7,804

8,676

872

Total liabilities
Derivative financial instruments*3:

Total derivative financial instruments¥

19,747¥

20,619¥872*1. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*2. Reserve for possible loan losses for loans is deducted.
*3. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.

T&D Holdings INTEGRATED REPORT 2019123

Corporate Data

US$ thousands

Consolidatedbalance sheet amount

As of March 31, 2019$

Cash and deposits

7,426,263

Fair value$

297,324

Treated as securities

7,426,263

Difference$—

297,324—

297,324

297,324—

Others7,128,939

7,128,939—

Call loans

9,343

9,343

—

Monetary claims purchased

1,143,391

1,165,206

21,814Treated as securities

1,133,343

1,153,630

20,286

Held-to-maturity bonds

298,968

319,255

20,286

Available-for-sale securities

834,374

834,374—

10,048

11,575

1,527

6,896,849

7,491,172

594,323

46,50146,501—

Available-for-sale securities

OthersMonetary trusts
Monetary trusts for trading purposes
Monetary trusts for held-to-maturity purposes
Monetary trusts for policy reserve-matching purposes
Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes
Securities
Trading securities

269,097

282,524

13,427

6,033,952

6,614,848

580,895

547,298547,298—

104,036,555

111,067,453

7,030,898

452,330

452,330—

Held-to-maturity bonds

11,128,862

13,096,627

1,967,765

Policy reserve-matching bonds

28,405,115

33,468,248

5,063,133

Available-for-sale securities

64,050,246

64,050,246—

15,035,577

15,521,527

485,949

Loans
Policy loans*1

1,072,073

1,194,061

122,056

Commercial loans*1

13,974,229

14,327,465

363,892

Reserve for possible loan losses*2
Total assets
Short-term debentures(10,726)——

134,547,981

142,680,966

8,132,985

54,05854,058

—
6,031

Bonds

1,054,464

1,060,496

Cash collateral received for bond-lending transactions within other liabilities

1,456,636

1,456,636—

411,252

412,350

1,097

2,976,412

2,983,542

7,129

Hedge accounting not applied

107,603

107,603—

Hedge accounting applied

70,31578,174

7,858

Borrowings within other liabilities
Total liabilities
Derivative financial instruments*3:

Total derivative financial instruments$

177,919$

185,778$

7,858*1. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*2. Reserve for possible loan losses for loans is deducted.
*3. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.

Annotation 1c.	Monetary claims purchased: Those which are deemed appro-

Matters relating to the calculation method for the fair value ofpriate to treat as securities are recorded in the same way asfinancial instruments as well as securities and derivative transactions.

securities, while others which are deemed appropriate to treat

Assetsas loan receivable are recorded in the same way as loans.

a.	Cash and deposits: mainly recorded in carrying amounts astheir fair values are proximate to the carrying amounts.

d.	Monetary trusts: Monetary trusts which are mainly invested
in securities are recorded in the same way as securities, whileb.	Call loans: recorded in carrying amounts as these are settled

monetary trusts which have similar nature with cash and de-in a short period, thus their fair values are proximate to theposits are recorded in carrying amounts. In addition, currency

carrying amounts.

options and stock index option contracts, etc., are used inmonetary trusts where their fair values are calculated basedon prices quoted by the counterparty financial institutions.

124

T&D Holdings INTEGRATED REPORT 2019e.	Securities: Fair values of securities are mainly based on their

to consolidated balance sheet amounts less uncollectableprices quoted on the stock exchange concerned, while thoseamounts at the consolidated closing date. These valuesof bonds are based on the statistics for reference publishedare recorded as fair values.

by the Japan Securities Dealers Association or on the prices

However, for compound financial instruments, fair val-

quoted by the underwriting financial institutions. Fair values ofues are based on their prices quoted by the underwriting

investment trusts are based on the published base prices, etc.

financial institutions.

See “Note 23 Securities” for notes related to securities byholding purposes.

Liabilitiesa.	Short-term debentures: Fair values are recorded in carryingf.

Loans:

amounts. Fair values are proximate to carrying amounts(i)	Policy loans: Fair value is calculated by discounting the

because these are settled in a short period.

expected future cash flow derived from the repayment
rate based on the past actual repayment performance by
the risk-free rate.
(ii)	Commercial loans: A variable interest rate loan reflectsb.	Bonds: Fair values are based on the statistics for reference
published by the Japan Securities Dealers Association or on
the prices quoted by the underwriting financial institutions or

the market interest rate in a short period. Therefore, it iscalculated by discounting the total of principal and interest

basically recorded at carrying amount as its fair value is

by risk-free rates weighted by credit risks involved.

proximate to the carrying amount unless the borrower’s
credit standing significantly changes after the loan isprovided.

c.	Cash collateral received for bond-lending transactions: Fairvalues are recorded in carrying amounts. Fair values are

Fair value of fixed interest rate loans is calculated bydiscounting the total of principal and interest by risk-freeproximate to carrying amounts because these are short-termtransactions.

rates weighted by credit risks involved.
For loans to bankrupt companies, loans to effectivelyd.	Borrowings: Fair values are calculated by discounting thebankrupt companies and loans to potentially bankrupt

total of principal and interest by risk-free rates weighted bycompanies, since estimated uncollectable amounts are

credit risks involved.

calculated based on the present value of the estimatedfuture cash flows or estimated amounts recoverable

Derivative transactions: see “Note 25 Derivative Transactions.”

through pledge or guarantee, fair values are proximate

Annotation 2
The balance sheet amounts of financial instruments deemed extremely difficult to determine fair value, which are not included in “e.
Securities” of “Assets” are summarized as follows:¥ millions

As of March 31,

¥

615

2019

$

5,548

Investments in affiliates¥

Available-for-sale securities

182,294

187,750

1,691,602

Unlisted stocks *1, *2

19,523

16,820151,554

Foreign securities * * *145,140

149,110

1,343,463

Other securities *2, *3

17,63021,818

196,584

1,

2,

3

410

US$ thousands

2019

2018

*1. Unlisted stocks are exempt from disclosure of fair value because fair value is considered extremely difficult to obtain due to the lack of market value.
*2. Impairment losses:– For the year ended March 31, 2018: foreign securities of ¥5,818 million and other securities of ¥369 million.
– For the year ended March 31, 2019: foreign securities of ¥932 million [$8,402 thousand], other securities of ¥200 million [$1,802 thousand] and unlisted stocks of ¥0 million [$0 thousand].
*3. Investment in capital of partnership is exempt from disclosure of fair value because the partnership assets comprise financial instruments deemed extremely difficult to determine fair value such as
unlisted stocks.

T&D Holdings INTEGRATED REPORT 2019125

Corporate Data

Annotation 3
Scheduled redemption amounts after the consolidated closing date for monetary claims and fixed-maturity securities are as follows:¥ millions

As of March 31, 2018

Due in one year
or less

Due after one year
through five years¥—

Due after five years
through ten years¥—

Due after ten years

Deposits¥776,310

Call loans

10,539

—

—

¥

—
—

Monetary claims purchased

16,057

950

293

93,395

Securities:
Held-to-maturity bonds:
Government bonds

19,256456,563

45,916

551,771

Municipal bonds—

13,495

4,564

25,502

Corporate bonds

1,631

36,265

20,59595,560

Policy reserve-matching bonds:
Government bonds

59,153

34,772

263,734

1,580,414

Municipal bonds

9,036

6,710

41,200137,530

Corporate bonds

26,16071,58094,230567,100

Foreign securities

—

—

6,250

8,835

Government bonds

100

75,39077,204434,943

Municipal bonds

32,77553,20018,55522,524

Corporate bonds

156,468

340,236

254,725

215,053

Foreign securities

83,395637,355

1,302,771

533,654

1

3

1

—

183,036

615,172

534,666

193,358

Available-for-sale fixed maturity securities:

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥ 868,722 million are not included. In addition, loans without contractual maturity dates such as policy loans in the amount of ¥ 122,321
million are not included.

¥ millions

As of March 31, 2019

Due in one year
or less

Due after one year
through five years¥—

Due after five years
through ten years¥—

Due after ten years

Deposits¥824,100

Call loans

1,037

—

—

¥

—
—

Monetary claims purchased

25,486235

4,293

90,230Government bonds

183,063

290,504

37,863543,846

Municipal bonds

13,495664

3,510

25,844

Corporate bonds

2,600

54,260—96,207

Securities:
Held-to-maturity bonds:

Policy reserve-matching bonds:
Government bonds

8,583

115,110

252,842

1,639,056

Municipal bonds

2,800

14,19336,766160,190

Corporate bonds

16,80099,680110,501

638,100

Foreign securities

—

1,043

19,66912,550388,844

Available-for-sale fixed maturity securities:—

90,39052,566

Municipal bonds

42,684

17,397

21,601

16,006

Corporate bonds

122,084

340,245

312,892

199,898

Foreign securities

107,298

830,354

1,092,135

461,693

Government bonds

Other securities
Loans

126

T&D Holdings INTEGRATED REPORT 2019

—

7

1

—

169,024

615,230

536,497

220,338

US$ thousands

Due in one year
or less

As of March 31, 2019

$7,424,994

Deposits

Due after one year
through five years$—

Due after five years
through ten years$

Due after ten years

—

$

—

9,343

—

—

—

229,627

2,118

38,681

812,959

Government bonds

1,649,364

2,617,396

341,1444,899,962

Municipal bonds

121,595

5,985

31,624

232,854

Corporate bonds

23,425

488,877—

866,813

Call loans
Monetary claims purchased
Securities:
Held-to-maturity bonds:

Policy reserve-matching bonds:
Government bonds

77,331

1,037,120

2,278,061

14,767,600

Municipal bonds

25,227

127,879

331,260

1,443,284

Corporate bonds

151,364

898,098

995,6025,749,166

Foreign securities

—

9,400

177,216

113,074

Available-for-sale fixed maturity securities:—

814,397473,6113,503,420

Municipal bonds

384,575

156,751

194,628

144,214

Corporate bonds

1,099,958

3,065,547

2,819,102

1,801,046

Foreign securities

966,738

7,481,345

9,839,948

4,159,772

—

66

11

—

1,522,882

5,543,117

4,833,743

1,985,209

Government bonds

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥ 1,096,334 million [$9,877,778 thousand] are not included. In addition, loans without contractual maturity dates such as policy loans in
the amount of ¥ 129,083 million [$1,163,021 thousand] are not included.

Annotation 4
Scheduled repayment amounts after the consolidated closing date for bonds, borrowings, and other liabilities are as follows:¥ millions

As of March 31, 2018

Due in one year
or less

Short-term debenture¥

Due after one year
through two years

Due after two years
through three years

¥

¥

6,000

Bonds

—

—
—

—

Due after three years
through four years¥

30,000—Due after four years
through five years

¥

—

—

Due after five years¥——
57,000Cash collateral received for bond-lendingtransactions within other liabilities

109,943

—

—

—

—

—

Borrowings within other liabilities

11,175

8,933

5,838

3,159

1,447

44,520Due in one year
or less

Due after one year
through two years

Due after two years
through three years

Due after three years
through four years

Due after four years
through five years¥ millions

As of March 31, 2019¥

Short-term debenture

6,000

¥

—

Bonds

—

¥

30,000

—

¥

—

—

¥

—

—

Due after five years¥——
87,000Cash collateral received for bond-lendingtransactions within other liabilities

161,672

—

—

—

—

—

Borrowings within other liabilities

11,283

8,113

5,384

3,497

2,237

15,128Due in one year
or less

Due after one year
through two years

Due after two years
through three years

Due after three years
through four years

Due after four years
through five years

Due after five years

$

$

$

$

US$ thousands

As of March 31, 2019

Short-term debenture
Bonds
Cash collateral received for bond-lendingtransactions within other liabilities
Borrowings within other liabilities$

54,058—$—270,294

—
—

—
—

—
—

—
783,854

1,456,636

—

—

—

—

—

101,662

73,10048,51331,511

20,159136,305

T&D Holdings INTEGRATED REPORT 2019127

Corporate Data

Note 23

Securities(1) Trading securities¥ millions

As of March 31,

Valuation difference included in earnings (losses) of the consolidated fiscal year

US$ thousands

2018

2019

2019

¥(2,651)¥(4,940)$(44,514)(2) Held-to-maturity bonds¥ millions

As of March 31, 2018

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥1,249,167¥1,454,655¥205,487

Government bonds

1,050,936

1,221,587

170,650

Municipal bonds

44,01351,881

7,868

Corporate bonds

26,968154,217

181,186

Other securities

33,33235,726

2,393

Total

1,282,500

1,490,382

207,881

4,395

4,111

(284)

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds
Government bonds

4,395

4,111

(284)

Municipal bonds

—

—

—

Corporate bonds

—

—

—

—

—

—

Other securities
Total
Grand total

4,395

4,111

(284)

¥1,286,895¥1,494,493¥207,597

Note: Other securities include beneficiary trust certificates (consolidated balance sheet amount of ¥33,332 million) which are represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2019

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:¥1,233,526¥1,452,021¥218,495

Government bonds

1,036,381

1,217,484

181,102

Municipal bonds

43,92652,422

8,496

Corporate bonds

153,217

182,11428,897

Domestic bonds

Other securities

33,18235,434

2,251

Total

1,266,708

1,487,455

220,746

1,666

1,573

(93)

1,666

1,573

(93)

Municipal bonds

—

—

—

Corporate bonds

—

—

—

—

—

—

1,666

1,573

(93)

¥1,268,374¥1,489,028¥220,653

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds
Government bonds

Other securities
Total
Grand total

128

T&D Holdings INTEGRATED REPORT 2019

US$ thousands

As of March 31, 2019

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:$11,113,850$13,082,454$1,968,603

Government bonds

9,337,615

10,969,314

1,631,699

Municipal bonds

395,772

472,320

76,547

Corporate bonds

1,380,462

1,640,819

260,356

Other securities

298,968

319,255

20,286

Total

11,412,819

13,401,710

1,988,890

15,011

14,173(838)

15,011

14,173(838)

Municipal bonds

—

—

—

Corporate bonds

—

—

—

—

—

—

15,011

14,173(838)$11,427,831$13,415,883$1,988,052

Domestic bonds

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds
Government bonds

Other securities
Total
Grand total

Note: O ther securities include beneficiary trust certificates (consolidated balance sheet amount of ¥33,182 million [$298,968 thousand]) which are represented as monetary claims purchased in the
consolidated balance sheet.

(3) Policy reserve-matching bonds¥ millions

As of March 31, 2018

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥2,748,210¥3,235,719¥487,509

Government bonds

1,913,755

2,262,255

348,499

Municipal bonds

169,333

195,120

25,787

Corporate bonds

665,121778,343

113,222

4,956

5,008

52

Foreign securities
Foreign bonds
Total

4,956

5,008

52

2,753,166

3,240,727

487,561Fair value not exceeding consolidated balance sheet amount:
Domestic bonds

165,583

153,690(11,893)

Government bonds

41,76439,030(2,733)

Municipal bonds

25,317

23,055(2,261)

Corporate bonds

98,50191,603(6,898)Foreign securities

11,895

11,577(317)

Foreign bonds

11,895

11,577(317)

177,478

165,267(12,211)¥2,930,644¥3,405,994¥475,350

Total
Grand total

T&D Holdings INTEGRATED REPORT 2019129

Corporate Data

¥ millions

As of March 31, 2019

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:¥3,010,248¥3,574,433¥564,185

Government bonds

1,997,598

2,399,162

401,564

Municipal bonds

197,457

227,815

30,357

Corporate bonds

815,191

947,455

132,263

30,61831,971

1,352

Domestic bonds

Foreign securities
Foreign bonds
Total

30,61831,971

1,352

3,040,866

3,606,405

565,538

Fair value not exceeding consolidated balance sheet amount:
106,240

102,688(3,551)Government bonds

33,21032,729(481)

Municipal bonds

17,32816,469(858)

Corporate bonds

55,70153,489(2,212)Foreign securities

5,577

5,547

(29)

Foreign bonds

5,577

5,547

(29)

111,817108,235(3,581)¥3,152,683¥3,714,640¥561,957

Domestic bonds

Total
Grand total

US$ thousands

Consolidatedbalance sheet amount

Fair value

Difference$27,121,795$32,205,008$5,083,213

Government bonds

17,998,006

21,616,027

3,618,021

Municipal bonds

1,779,060

2,052,578

273,517

Corporate bonds

7,344,728

8,536,402

1,191,674

Foreign securities

275,863

288,053

12,189Foreign bonds

275,863

288,053

12,18927,397,659

32,493,062

5,095,403

As of March 31, 2019

Fair value exceeding consolidated balance sheet amount:
Domestic bonds

Total
Fair value not exceeding consolidated balance sheet amount:

957,207925,206(32,000)

Government bonds

299,220294,886(4,333)

Municipal bonds

156,123

148,388(7,734)

Corporate bonds

Domestic bonds

501,862

481,930(19,931)

Foreign securities

50,24849,979(269)

Foreign bonds

50,24849,979(269)

1,007,456

975,186(32,269)$28,405,115$33,468,248$5,063,133

Total
Grand total

130

T&D Holdings INTEGRATED REPORT 2019

(4) Available-for-sale securities¥ millions

As of March 31, 2018

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:
Domestic bonds¥1,473,666¥1,374,322¥ 99,343

Government bonds

316,322275,741

40,580

Municipal bonds

124,319

116,024

8,294

Corporate bonds

1,033,024

982,555

50,468Domestic equities

779,252

434,490344,761

Foreign securities

1,472,951

1,380,250

92,700Foreign bonds

1,031,284

967,819

63,465

Foreign equities

8,012

7,244

768

433,654405,186

28,467

Foreign other securities
Other securities

357,148

302,41254,736

Total

4,083,017

3,491,475

591,542

Consolidated balance sheet amount not exceeding acquisition cost:
Domestic bonds

590,219

619,818(29,598)

Government bonds

340,763

357,961(17,198)

Municipal bonds

10,46911,497(1,028)

Corporate bonds

238,987

250,359(11,371)

Domestic equities

27,15929,693(2,533)Foreign securities

2,286,982

2,399,934(112,952)

Foreign bonds

1,697,972

1,795,296(97,323)

Foreign equities

17,023

17,761(738)

Foreign other securities

571,986

586,876(14,890)

Other securities

59,73460,567

(833)

Total

2,964,096

3,110,014(145,917)

Grand total¥7,047,113¥6,601,489¥ 445,624

Note: Other securities include certificates of deposit (consolidated balance sheet amount of ¥18,000 million) which are represented as cash and deposits, commercial paper (consolidated balance sheet amountof ¥15,999 million) and beneficiary trust certificates (consolidated balance sheet amount of ¥67,073 million) which are represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2019

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:¥1,640,657¥1,558,632¥ 82,024

Government bonds

393,375

364,191

29,184

Municipal bonds

91,70086,3595,341

Corporate bonds

1,155,581

1,108,082

47,499Domestic bonds

Domestic equities

613,820

366,806

247,013

Foreign securities

2,761,123

2,628,793

132,330

Foreign bonds

1,691,049

1,605,881

85,168Foreign equities

2

1

0

1,070,071

1,022,910

47,161

Foreign other securities
Other securities

242,924

211,237

31,686

Total

5,258,526

4,765,470

493,055

Consolidated balance sheet amount not exceeding acquisition cost:
394,703407,473(12,770)

Government bonds

205,167

211,926(6,759)Municipal bonds

10,937

11,601(663)

Corporate bonds

178,598

183,945(5,347)

Domestic bonds

Domestic equities

105,693

117,426(11,733)

Foreign securities

1,277,237

1,329,233(51,995)

Foreign bonds

1,014,024

1,059,768(45,744)

Foreign equities

16,811

17,472(661)

Foreign other securities

246,402

251,993(5,590)

Other securities

198,383

204,238(5,854)

Total

1,976,017

2,058,372(82,354)

Grand total¥7,234,544¥6,823,842¥410,701

T&D Holdings INTEGRATED REPORT 2019131

Corporate Data

US$ thousands

As of March 31, 2019

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:$14,782,029$14,043,002$ 739,027

Government bonds

3,544,239

3,281,295

262,943

Municipal bonds

826,206

778,081

48,125

Corporate bonds

10,411,583

9,983,625

427,958

Domestic bonds

Domestic equities

5,530,415

3,304,865

2,225,550

Foreign securities

24,877,227

23,684,953

1,192,274

Foreign bonds

15,236,051

14,468,700

767,351

Foreign equities

20

15

5

9,641,155

9,216,237

424,917

Foreign other securities
Other securities

2,188,707

1,903,213

285,493

Total

47,378,380

42,936,035

4,442,345

Consolidated balance sheet amount not exceeding acquisition cost:
3,556,205

3,671,263(115,057)

Government bonds

1,848,520

1,909,421(60,900)

Municipal bonds

98,547

104,523(5,975)

Corporate bonds

1,609,137

1,657,318(48,181)

Domestic bonds

Domestic equities

952,275

1,057,992(105,717)

Foreign securities

11,507,684

11,976,156(468,471)

Foreign bonds

9,136,174

9,548,321(412,146)

Foreign equities

151,464

157,421(5,957)2,220,046

2,270,414(50,368)

Foreign other securities
Other securities

1,787,399

1,840,151(52,751)

Total

17,803,564

18,545,563(741,998)

Grand total$65,181,945$61,481,598$3,700,346

Note: O ther securities include certificates of deposit (consolidated balance sheet amount of ¥33,000 million [$297,324 thousand]) which are represented as cash and deposits, commercial paper (consolidated balance sheet amount of ¥24,999 million [$225,242 thousand]) and beneficiary trust certificates (consolidated balance sheet amount of ¥67,607 million [$609,131 thousand]) which are
represented as monetary claims purchased in the consolidated balance sheet.

(5) Sales of securities classified as held-to-maturity bonds¥ millions

As of March 31, 2018

Cost of sales

Proceeds of sales

Gross gains

Gross losses¥8,263¥11,109¥2,845¥—

8,263

11,1092,845—

Municipal bonds

—

—

—

—

Corporate bonds

—

—

—

—

¥8,263¥11,109¥2,845¥—

Domestic bonds
Government bonds

Total

Reason for the sales: At Taiyo Life Insurance Company, investment policy was changed from the ALM standpoint considering that a certain period had passed since the suspension of sales of single-premium individual annuity insurance which belongs
to single-premium whole life/annuity insurance asset segment. As a result, some of held-to-maturity bonds in thisasset segment were sold before their maturity dates.
There were no sales of securities classified as held-to-maturity bonds for the year ended March 31, 2019.

132

T&D Holdings INTEGRATED REPORT 2019(6) Sales of securities classified as policy reserve-matching bonds¥ millions

Year ended March 31, 2018

Proceeds of sales

Gross gains

Gross losses¥27,075¥4,250¥12

20,9853,156

12

Municipal bonds

—

—

—

Corporate bonds

6,089

1,094

—

¥27,075¥4,250¥12

Proceeds of sales

Gross gains

Gross losses¥9

Domestic bonds
Government bonds

Total¥ millions

Year ended March 31, 2019¥44,933¥3,125Government bonds

38,1212,621

9Municipal bonds

1,473

107

—

Domestic bonds

5,338

396

—

¥44,933¥3,125¥9

Proceeds of sales

Gross gains

Gross losses$404,842$28,161$85

Government bonds

343,464

23,61885

Municipal bonds

13,279968—

Corporate bonds

48,0983,574—$404,842$28,161$85

Proceeds of sales

Gross gains

Gross losses

Corporate bonds
Total

US$ thousands

Year ended March 31, 2019

Domestic bonds

Total(7) Sales of securities classified as available-for-sale securities¥ millions

Year ended March 31, 2018

Domestic bonds¥ 89,834¥ 5,455

Government bonds

66,621

4,608

¥

948

Municipal bonds

503

0

—

Corporate bonds

22,709

846

109

838

Domestic equities

91,52135,048

1,195

Foreign securities

502,277

21,595

15,926

Foreign bonds

453,942

17,19915,775

Foreign equities

253

1

7

48,081

4,395

142

Foreign other securities
Other securities

60,908

9,290

14

Total

¥744,541¥71,390¥18,084

Proceeds of sales

Gross gains

Gross losses¥116,947¥24,489

79,976

15,559—Municipal bonds

9,757

2,181

—

Corporate bonds

27,213

6,748

1

Domestic equities

71,54133,881173

Foreign securities

691,627

16,411

16,708Foreign bonds

592,996

6,399

14,647

Foreign equities

8,983

1,136

4

Foreign other securities

89,647

8,875

2,056

¥ millions

Year ended March 31, 2019

Domestic bonds
Government bonds¥

1

Other securities

45,278

10,9900

Total¥925,395¥85,772¥16,884

T&D Holdings INTEGRATED REPORT 2019133

Corporate Data

US$ thousands

Year ended March 31, 2019

Proceeds of sales

Gross gains

Gross losses$1,053,678$220,645$

Government bonds

720,576

140,186

Municipal bonds

87,912

19,652—

Corporate bonds

245,189

60,806

16

Domestic bonds

16—

Domestic equities

644,579

305,265

1,561

Foreign securities

6,231,436

147,862

150,544

Foreign bonds

5,342,790

57,657

131,974

Foreign equities

80,938

10,24138

Foreign other securities

807,707

79,962

18,531Other securities

407,951

99,0194

Total$8,337,645$772,792$152,126(8) Impairment of securities

fiscal years ended March 31, 2018 and 2019, respectively.

The Company and its consolidated subsidiaries recognized ¥5

The Company and its consolidated subsidiaries recognize im-

million and ¥1,996 million [$17,984 thousand] as impairment

pairment losses on the securities if fair value as of the end of thelosses for the available-for-sale securities with fair value for the

fiscal year declines by 30% or more from their acquisition cost.

Note 24

Monetary Trusts(1) Monetary trusts for trading purposes¥ millions

US$ thousands

As of March 31,

2018

2019

2019

Valuation difference included in earnings (losses) of the consolidated fiscal year

¥720

¥840

$7,572(2) Monetary trusts for held-to-maturity purposes¥ millions

As of March 31, 2018

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥38,291¥38,443¥151¥ millions

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥29,867¥31,357¥1,490

US$ thousands

As of March 31, 2019

Monetary trusts

134

T&D Holdings INTEGRATED REPORT 2019

Consolidatedbalance sheet amount

Fair value

Difference$269,097$282,524$13,427

(3) Monetary trusts for policy reserve-matching purposes¥ millions

As of March 31, 2018

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥605,469¥642,820¥37,351¥ millions

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥669,708¥734,182¥64,473

US$ thousands

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference$6,033,952$6,614,848$580,895(4) Monetary trusts for those other than trading, held-to-maturity or policy reserve-matching purposes¥ millions

As of March 31, 2018

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference¥36,745¥37,609¥(863)¥ millions

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference¥60,744¥60,819¥(74)

US$ thousands

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference$547,298$547,971$(673)

T&D Holdings INTEGRATED REPORT 2019135

Corporate Data

Note 25

Derivative Transactions(1) Derivative financial instruments for which hedge accounting is not applied
a. Currency-related transactions¥ millions

Notional amount
As of March 31, 2018

Total

Over one year

Fair value

Valuation gains(losses)Over-the-counter transactions:
Foreign exchange contracts:
Sold¥50,147

¥—

¥ 697

¥ 697

U.S. dollar

30,576

—

314

314

Euro

12,597

—

138

138

British pound

4,541

—

78

78

Canadian dollar

289

—

22

22

Australian dollar

2,141

—

143

143

Bought

5,331

—

(6)

(6)

U.S. dollar

3,797

—

(3)

(3)

Euro

1,497

—

(3)

(3)

35

—

(0)

(0)

1,860

—

1

1

1,860

—

1

1

18,765

—

(931)

(931)

735

—

(38)

(38)

18,030

—

(893)

(893)

Australian dollar
Currency swaps:
Receive yen/pay foreign currency
Brazilian real
Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total¥(239)

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
Currency swaps are carried out using management trusts and the fair value is calculated based on the price obtained from the trustee companies.
2. Assets and liabilities denominated in foreign currencies, which have fixed settlement amounts in yen under forward exchange contracts and are disclosed in yen amounts in the consolidated balance
sheet, are not subject to this disclosure.
¥ millions

Notional amount
As of March 31, 2019

Total

Over one year

Fair value

Valuation gains(losses)¥ 84

Over-the-counter transactions:
Foreign exchange contracts:¥90,962¥—¥ 84

U.S. dollar

53,087

—

55

55

Euro

15,200

—

132

132
(52)

Sold

British pound

4,253

—

(52)

Canadian dollar

716

—

27

27

Australian dollar

17,703

—

(78)

(78)

7,442

—

31

31

U.S. dollar

383

—

0

0

Euro

10

—

0

0

7,048

—

30

30

10

(10)

BoughtAustralian dollar
Currency options:
Bought
Put
Euro

9,657

—

[20]

[—]

9,657

—

[20]

[—]

10

(10)
516

Currency swaps:
14,944—

516

Brazilian real

9,634

—

681

681

Indian rupee

5,310

—

(165)

(165)

16,579

—

(261)

(261)

714

—

(5)

(5)

15,864

—

(256)

(256)

Receive yen/pay foreign currency

Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total

136

T&D Holdings INTEGRATED REPORT 2019¥ 360

US$ thousands

Notional amount
As of March 31, 2019

Over-the-counter transactions:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
BoughtU.S. dollar
Euro
Australian dollar
Currency options:
BoughtPut
Euro
Currency swaps:
Receive yen/pay foreign currency
Brazilian real
Indian rupee
Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total

Total

Over one year

$819,555
478,312
136,957
38,327
6,454
159,503
67,051
3,455
91
63,504

$—
—
—
—
—
—
—
—
—
—

87,013[184]
87,013
[184]

—
[—]
—
[—]

134,651
86,802
47,848149,3786,440
142,937

—
—
—
—
—
—

Fair value

$

759
498
1,190
(472)
246
(703)
282
5
0
276

Valuation gains(losses)

$

759
498
1,190
(472)
246
(703)
282
5
0
276

94

(90)

94

(90)

4,652
6,140
(1,488)(2,358)(45)(2,312)

4,652
6,140
(1,488)(2,358)(45)(2,312)$ 3,245

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
Currency options are calculated based on prices obtained from counterparty financial institutions.
Currency swaps are carried out using management trusts and the fair value is calculated based on the price obtained from the trustee companies.
2. Assets and liabilities denominated in foreign currencies, which have fixed settlement amounts in yen under forward exchange contracts and are disclosed in yen amounts in the consolidated balance
sheet, are not subject to this disclosure.
3. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

b. Interest-related transactions¥ millions

Notional amount
As of March 31, 2018

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total

Total

Over one year

Fair value¥17,731¥16,778¥8,962

Valuation gains(losses)¥8,962¥8,962

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or based on prices obtained fromcounterparty financial institutions.
¥ millions

Notional amount
As of March 31, 2019

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total

Total

Over one year

Fair value¥16,213¥15,317¥11,561

Valuation gains(losses)¥11,561¥11,561
US$ thousands

Notional amount
As of March 31, 2019

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total

Total

Over one year

Fair value$146,076$138,010$104,166

Valuation gains(losses)$104,166$104,166

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or based on prices obtained fromcounterparty financial institutions.

T&D Holdings INTEGRATED REPORT 2019137

Corporate Data

c. Stock-related transactions
The Company held no stock-related derivative instruments as of March 31, 2018.
¥ millions

Notional amount
As of March 31, 2019

Total

Over one year

¥10,381

¥—

[34]

[—]

Fair value

Valuation gains(losses)Market transactions:
Stock exchange transactions
Bought:
Put

0

(33)
¥(33)

Total

US$ thousands

Notional amount
As of March 31, 2019

Total

Over one year

$93,535

$—

[307]

[—]

Fair value

Valuation gains(losses)Market transactions:
Stock exchange transactions
Bought:
Put

6

(300)
$(300)

Total
Notes:
1. Calculation method of fair value
Fair value is based on prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

T&D Financial Life uses monetary trusts to execute derivative transactions. The following tables show a summary of the notional amountand fair value of derivative financial instruments.
¥ millions

Notional amount
As of March 31, 2018

Total

Over one year

2,636

1,985

Fair value

Valuation gains(losses)

228

(422)

163

(240)

65

(181)

53

35

Over-the-counter transactions:
Currency options:
Bought:
Put

[651]

[505]

U.S. dollar

1,505

1,128

[403]

[313]

Euro

1,130

857

[247]

[192]

Stock-related transactions:
Stock index options:
Bought:
Call
Put

56

32

[18]

[10]

13,675

10,321[3,541][2,646]

Total
Notes:
1. Calculation method of fair value
Fair value is based on the price obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

138

T&D Holdings INTEGRATED REPORT 2019301

(3,239)¥(3,626)¥ millions

Notional amount
As of March 31, 2019

Total

Over one year

1,985

1,438

[505]

[371]

1,128

786

[313]

[223]

857

652

[192]

[148]

32

10

Fair value

Valuation gains(losses)

147

(357)

89

(223)

58

(133)

31

21

Over-the-counter transactions:
Currency options:
Bought:Put
U.S. dollar
Euro
Stock-related transactions:
Stock index options:
Bought:
Call
Put

[10]

[2]

10,321

2,845[2,646]

[604]

190

(2,456)¥(2,792)

Total

US$ thousands

Notional amount
As of March 31, 2019

Total

Over one year

17,891

12,958[4,553][3,350]10,167

7,084[2,823][2,015]

7,723

5,874

[1,730][1,335]

Fair value

Valuation gains(losses)

1,330(3,222)807(2,016)523(1,206)284

191

Over-the-counter transactions:
Currency options:
Bought:Put
U.S. dollar
Euro
Stock-related transactions:
Stock index options:
Bought:
Call
Put

288

90

[92]

[25]

92,99225,640[23,847][5,445]

Total

1,719

(22,128)$(25,159)

Notes:
1. Calculation method of fair value
Fair value is based on prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

T&D Holdings INTEGRATED REPORT 2019139

Corporate Data

(2) Derivative financial instruments for which hedge accounting is applied
a. Currency-related transactions¥ millions

Notional amount
As of March 31, 2018

Hedged item

Total

Over one year

Fair value

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold

Foreign currencydenominated assets—¥30,986

1,877,531—

16,849Euro542,632—

6,554

British pound

181,572—

1,504

Canadian dollar

121,750—

4,442

Australian dollar

59,671—

1,606

Mexican peso

1,702

—

(20)

New Zealand dollar

22,014—(116)

U.S. dollar

Polish zloty
BoughtU.S. dollar¥2,811,894

¥

5,019

—

166

13,258—(3)

13,258—(3)

Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:
Sold

Certificates of deposit inforeign currencies

50,000——U.S. dollar

5,000

—

—

Australian dollar

45,000——32,29732,297—32,29732,297

Currency swaps:
Receive yen/pay foreign currency

Foreign currencydenominated loans

U.S. dollar
Total—¥30,983

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
2. Fair value of foreign exchange contracts, etc., with allocation treatments are included in the relevant certificates of deposit in foreign currencies and foreign currency-denominated loans because they are
the hedged assets for each of these contracts and the assets are treated as a unit.

¥ millions

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold

Foreign currencydenominated assets¥3,352,034¥—¥ 7,785

2,247,783—(9,394)

Euro729,658—

15,119British pound

146,229—

667

Canadian dollar

97,428—(98)

Australian dollar

114,012—

1,352

New Zealand dollar

U.S. dollar

14,027—

136

Polish zloty

767

—

1

Danish krone

1,644

—

2

Singapore dollar

483

—

(1)

227,620—

178

227,620—

178

BoughtU.S. dollar
Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:

40,000——10,000——Australian dollar

30,000——37,93737,937—37,93737,937

Currency swaps:
Receive yen/pay foreign currency
U.S. dollar
Total

140

Certificates of deposit inforeign currencies

U.S. dollar

Sold

T&D Holdings INTEGRATED REPORT 2019

Foreign currencydenominated loans—¥ 7,964

US$ thousands

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold

Foreign currencydenominated assets$30,201,228$—$ 70,147

U.S. dollar

20,252,127—(84,645)Euro

6,574,088—

136,223

British pound

1,317,501

—

6,018

Canadian dollar

877,813—(886)

Australian dollar

1,027,233—

12,186

New Zealand dollar

1,233

126,382—

Polish zloty

6,912

—

9

Danish krone

14,813—21

Singapore dollar
BoughtU.S. dollar

4,355

—

(13)

2,050,823

—

1,612

2,050,823

—

1,612

Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:

Certificates of deposit inforeign currencies

360,392——

U.S. dollar

90,098——Australian dollar

270,294——

341,809341,809—341,809341,809

Sold

Currency swaps:
Receive yen/pay foreign currency

Foreign currencydenominated loans

U.S. dollar—$ 71,759

Total

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
2. Fair value of foreign exchange contracts, etc., with allocation treatments are included in the relevant certificates of deposit in foreign currencies and foreign currency-denominated loans because they are
the hedged assets for each of these contracts and the assets are treated as a unit.

b. Interest-related transactions¥ millions

Notional amount
As of March 31, 2018

Hedged item

Total

Over one year

Fair value¥49,960¥45,298¥892

Special treatment for interest rate swaps:
Interest rate swaps:
Receive fixed/pay floating

Loans

Total

¥892

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or prices obtained from counterparty
financial institutions.

¥ millions

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value¥44,987¥33,137¥872

Special treatment for interest rate swaps:
Interest rate swaps:
Receive fixed/pay floating

Loans

¥872

Total

US$ thousands

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value$405,332$298,566$7,858Special treatment for interest rate swaps:
Interest rate swaps:
Receive fixed/pay floating
Total

Loans

$7,858

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or prices obtained from counterparty
financial institutions.

T&D Holdings INTEGRATED REPORT 2019141

Corporate Data

c. Stock-related transactions¥ millions

Notional amount
As of March 31, 2018

Hedged item

Total

Over one year

Fair value¥45,100¥—¥2,455

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Domestic equities

Sold
Total

¥2,455

Note: Calculation method of fair value
Fair value is calculated based on prices obtained from counterparty financial institutions.

¥ millions

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value¥44,614¥—¥(160)

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Domestic equities

Sold¥(160)

Total

US$ thousands

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value$401,965$—$(1,443)

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Domestic equities

Sold$(1,443)

Total
Note: Calculation method of fair value
Fair value is calculated based on prices obtained from counterparty financial institutions.

Note 26

Employees’ Retirement Benefits(1) Overview of the retirement benefit plan adopted by the T&D Insurance Group
Domestic consolidated subsidiaries have defined benefit retirement plans such as a defined benefit corporate pension plan, a retirement
pension plan, and a retirement lump-sum payment plan. Further, certain subsidiaries have defined contribution pension plans as theirdefined contribution retirement plan as well as retirement benefit trusts.

(2) Defined benefit retirement plana. Reconciliations of the beginning- and end-of-the-year balances of retirement benefit obligations are as follows:¥ millions

2019

2019

¥155,716¥154,239$1,389,671

Service cost

6,369

6,361

57,317

Interest cost

876

800

7,216

Balance at the beginning of the year

Actuarial gains and losses

1,959

3,136

28,261Retirement benefit paid

(7,172)(7,437)(67,013)

Accrual of past service costs(3,510)——

Balance at the end of the year

¥154,239¥157,101$1,415,452

Note: Retirement benefit expense for consolidated subsidiaries using the simplified method is recorded in service cost.

142

US$ thousands

2018

Years ended March 31,

T&D Holdings INTEGRATED REPORT 2019b. Reconciliations of the beginning- and end-of-the-year balances of pension plan assets are as follows:¥ millions

Years ended March 31,

Balance at the beginning of the year

US$ thousands

2018

2019

2019

¥ 99,168¥103,475$932,292

Expected return on plan assets

920

1,121

10,103

Net actuarial gains and losses

1,347

1,154

10,398

Employer contribution

7,440

6,000

54,059Benefit obligation paid

(5,402)(5,688)(51,252)¥103,475¥106,062$955,602

Balance at the end of the yearc.	Reconciliations of retirement benefit obligations and pension plan assets to net defined benefit liabilities and net defined benefit
assets stated in the consolidated balance sheet are as follows:¥ millions

US$ thousands

2018

2019

2019

Retirement benefit obligations for funded plans¥ 127,383¥ 130,463$1,175,450

Plan assets(103,475)(106,062)(955,602)[(62,124)][(63,321)][(570,518)]

As of March 31,

Employee pension trusts

23,907

24,400219,847

Retirement benefit obligations for unfunded plans

26,856

26,637240,002

Net amount of defined benefit liability and defined benefit asset stated in the consolidated balance sheet

50,76451,038459,849

50,76451,038459,849———¥ 50,764¥ 51,038$ 459,849¥ millions

US$ thousands

Defined benefit liability
Defined benefit asset
Net amount of defined benefit liability and defined benefit asset stated in the consolidated balance sheetd. Components of retirement benefit expense are as follows:
Years ended March 31,

Service cost

2018

2019

2019

¥ 6,369¥ 6,361$ 57,317

Interest cost

876

800

7,216

Expected return on plan assets(920)(1,121)(10,103)

612

1,982

17,862

Recognized past service costs(3,510)——Retirement benefit expense relating to defined benefit retirement plan

¥ 3,427¥ 8,023$ 72,291

Recognized actuarial gains and losses

Note: Retirement benefit expense for consolidated subsidiaries using the simplified method is included in service cost.

e. Matters related to pension plan assets(i) Components of pension plan assets are as follows:
2018

2019

Bonds

72.8%

72.0%

General account

11.2%

11.4%

Foreign securities

8.4%

8.0%

Stocks5.3%

4.8%

Cash and deposits

1.5%

2.8%

Joint assets

0.7%

0.9%

Others

0.0%

0.0%

Total

100.0%

100.0%

As of March 31,

Note: The total includes 60.0% and 59.7% of employee pension trusts set up for corporate pension plans for the fiscal years ended March 31, 2018 and 2019, respectively.

(ii) The setting method for long-term expected rate of return
The long-term expected rate of return on pension plan assets is set by considering the present and the prospective asset allocation of pension plan assets, as well as the present and the expected long-term rate of return arising from various assets thatcomprise the plan assets.

T&D Holdings INTEGRATED REPORT 2019143

Corporate Dataf.

Matters related to actuarial basis
2018

2019

Discount rate

0.11%–0.80%(0.01)%–0.80%

Expected long-term rate of return on plan assets

0.26%–2.11%

0.24%–3.46%

Years ended March 31,(3) Defined contribution retirement plan
The required contribution for the defined contribution retirement plan of the Company and its consolidated subsidiaries amounted to¥267 million and ¥268 million [$2,418 thousand] for the fiscal years ended March 31, 2018 and 2019, respectively.

Note 27

Stock Options(1) Amount of expenses related to stock options¥ millions

US$ thousands

Years ended March 31,

2018

2019

2019

Operating expenses

¥309

¥—

$—

(2) Details, size and status of stock options
a. Details of stock options
T&D Holdings, Inc. stock subscription rights (1st series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 7
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 40

Number of stock options by class*Common stock: 449,600 shares

Grant dateJuly 31, 2012

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 1, 2012 to July 31, 2042

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (2nd series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 7
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 39

Number of stock options by class*Common stock: 235,500 shares

Grant dateAugust 1, 2013

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2013 to August 1, 2043

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (3rd series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 6
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 41

Number of stock options by class*Common stock: 231,300 shares

Grant dateAugust 1, 2014

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2014 to August 1, 2044

* Translated to the number of common stock.

144

T&D Holdings INTEGRATED REPORT 2019

T&D Holdings, Inc. stock subscription rights (4th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 15
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 43

Number of stock options by class*Common stock: 170,700 shares

Grant dateAugust 3, 2015

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 4, 2015 to August 3, 2045

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (5th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 10
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 48

Number of stock options by class*Common stock: 379,800 shares

Grant dateAugust 1, 2016

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2016 to August 1, 2046

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (6th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 10
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 47

Number of stock options by class*Common stock: 208,200 shares

Grant dateAugust 1, 2017

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2017 to August 1, 2047

* Translated to the number of common stock.

T&D Holdings INTEGRATED REPORT 2019145

Corporate Datab. Size and status of stock options
	For stock options which existed during the consolidated fiscal year ended March 31, 2019, the number of stock options is translated
to the number of common stock.
(i) Number of stock options
T&D Holdings, Inc.
stock subscription rights (1st series)

T&D Holdings, Inc.
stock subscription rights (2nd series)

T&D Holdings, Inc.
stock subscription rights (3rd series)

Before vesting:
At the end of previous fiscal year

—

—

—

Granted———Forfeited———

Vested———Outstanding

—

—

—

181,600 shares

120,000 shares

144,400 shares

—

—

—

24,400 shares

17,400 shares

20,600 shares

After vesting:
At the end of previous fiscal year
VestedExercised
Forfeited
Exercisable

—

—

—

157,200 shares

102,600 shares

123,800 shares

T&D Holdings, Inc.
stock subscription rights (4th series)

T&D Holdings, Inc.
stock subscription rights (5th series)

T&D Holdings, Inc.
stock subscription rights (6th series)

Before vesting:
At the end of previous fiscal year

—

—

—

Granted———Forfeited———

Vested———Outstanding

—

—

—

121,700 shares

298,900 shares

206,100 shares

After vesting:
At the end of previous fiscal year
VestedExercised———

12,400 shares

28,500 shares

18,400 shares

Forfeited
Exercisable

—

—

—

109,300 shares

270,400 shares

187,700 shares

T&D Holdings, Inc.
stock subscription rights (1st series)

T&D Holdings, Inc.
stock subscription rights (2nd series)

T&D Holdings, Inc.
stock subscription rights (3rd series)(ii) Unit price information

Exercise price
Average stock price at the time of exercise
Fair value at the granted date

Exercise price

1 yen

1 yen

1 yen

1,441 yen

1,511 yen

1,457 yen

685 yen

1,143 yen

1,153 yen

T&D Holdings, Inc.
stock subscription rights (4th series)

T&D Holdings, Inc.
stock subscription rights (5th series)

T&D Holdings, Inc.
stock subscription rights (6th series)

1 yen

1 yen

1 yen

Average stock price at the time of exercise

1,403 yen

1,651 yen

1,739 yen

Fair value at the granted date

1,708 yen

918 yen

1,485 yen(3) Method for estimating the number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock
options that will be forfeited in the future.

146

T&D Holdings INTEGRATED REPORT 2019

Note 28

Asset Retirement Obligations

Asset retirement obligations recorded in the consolidated balance sheet are as follows:(1) Overview of the asset retirement obligations
Asbestos removal obligations for office buildings and rental properties are recorded as asset retirement obligations.
(2) Calculation method for the amount of the asset retirement obligations
For the estimation of the present value of asset retirement obligations, 50 years from the acquisition of buildings is used as an estimated period before the cost will accrue and 2.11% as a discount rate.
(3) Increase or decrease of the total amount of the asset retirement obligations¥ millions

Years ended March 31,

Balance at the beginning of the year
Time progress adjustment
Balance at the end of the year

Note 29

US$ thousands

2018

2019

2019

¥1,957¥1,998$18,008

41

42

380

¥1,998¥2,041$18,389

Real Estate for Rent

Some subsidiaries own real estate for rent, consisting mainly of office buildings in major cities in Japan. Their balance sheet amount, net
increase or decrease and fair value at the end of the year are as follows:
Years ended March 31,¥ millions

US$ thousands

2018

2019

2019

¥202,753¥248,005$2,234,488

Balance sheet amount:
Balance at the beginning of the year
Net increase (decrease)45,252

8,229

74,147

Balance at the end of the year

248,005

256,235

2,308,636

Fair value at the end of the year

¥307,523¥335,797$3,025,472

Notes:
1. Balance sheet amount represents acquisition cost less accumulated depreciation and accumulated impairment losses. Balances at the end of the year for the years ended March 31, 2018 and 2019
include amounts related to asset retirement obligations of ¥113 million and ¥79 million [$718 thousand], respectively.
2. For the year ended March 31, 2018, the increase mainly consisted of purchase of real estate totaling ¥ 45,926 million and the decrease mainly consisted of depreciation totaling ¥4,285 million.
For the year ended March 31, 2019, the increase mainly consisted of purchase of real estate totaling ¥ 13,947 million [$125,664 thousand] and the decrease mainly consisted of depreciation totaling¥5,502 million [$49,575 thousand].
3. Fair value at the end of the year of major properties is calculated based on their appraisal value by external real estate appraisers. The value of other properties is calculated in-house based on the posted price.

Gains (losses) on real estate for rent are as follows:¥ millions

US$ thousands

2018

2019

2019

Ordinary revenues¥15,719¥17,568$158,288

Ordinary expenses

10,245

11,926

107,453

Ordinary profit

5,474

5,642

50,834

Other losses

(474)

(550)

(4,960)Years ended March 31,

Notes:
1. Ordinary revenues and ordinary expenses constitute income from lease and corresponding expenses, such as depreciation, repair expenses, insurance expenses and taxes. These amounts are recorded ininvestment income and investment expenses.
2. Other losses were mainly losses on disposal of fixed assets for the year ended March 31, 2018, and impairment losses for the year ended March 31, 2019. These amounts are recorded in extraordinary losses.

T&D Holdings INTEGRATED REPORT 2019147

Corporate Data

Note 30

Segment Information(1) Overview of reportable segments

Daido Life Insurance Company segment and the T&D Financial

The reportable segments of the Company are components of theLife Insurance Company segment.

Company for which separate financial information is available.

Each of the Three Life Insurance Companies focuses on differ-

These segments are subject to regular review by the Company’s

ent markets. Taiyo Life focuses on the households market, Daido

Board of Directors to determine the allocation of business re-Life focuses on the small and medium enterprises market andsources and evaluate business performances.

T&D Financial Life focuses on independent insurance agents mar-

The Company is a holding company which manages life

ket and each company has different products under its uniqueinsurance companies and other subsidiaries in accordance withmarketing strategy.

the Insurance Business Act. Under the Company, the Three Life
Insurance Companies, with unique product strategies and sales(2)	Method for calculating ordinary revenues, income or loss,

strategies, operate life insurance business which is the Group’s

assets and liabilities, and others by reportable segment
The method for the accounting treatment of the reportable seg-core business.

ments is the same as described in “Note 2. Summary of Significant

The Company’s operations are therefore segmented by each of

Accounting Policies.”

the life insurance companies and the Company’s three reportablesegments are the Taiyo Life Insurance Company segment, the(3) Information on ordinary revenues, income or loss, assets and liabilities, and others by reportable segment¥ millions

Reportable segments

Year ended March 31, 2018

Ordinary revenues

T&D
Financial Life

Taiyo Life

Daido Life

¥ 737,487¥ 987,614

1,229

456

—

1,685

69,30070,986(70,986)—

738,716

988,070

196,492

1,923,279

101,066

2,024,346(95,986)

1,928,359

Intersegment transfers
Total
Segment income (loss)

OthersSubtotal¥ 196,492 ¥ 1,921,593

Total

Amount on
consolidated
financialstatements¥ 31,766 ¥ 1,953,360

Adjustments¥ (25,000) ¥ 1,928,359

62,79089,397

2,543

154,732

47,895

202,627(46,152)

156,475

Segment assets

7,219,463

6,573,924

1,365,878

15,159,267

921,034

16,080,302(817,903)

15,262,398

Segment liabilities

6,810,776

5,913,402

1,292,955

14,017,134

148,847

14,165,982(56,619)

14,109,362

Depreciation of real estate for rent

2,648

2,407

—

5,056

—

5,056

(28)

5,027

Depreciation

6,033

4,070

54

10,158644

10,803(40)

10,762

Provision for (reversal of) policy reserve(20,409)

232,72250,164262,476

398

262,874—

262,874

Provision for (reversal of) reserve forpolicyholder dividends

15,664

14,668(1)

30,331—30,331—30,331

Interest, dividends and income from realestate for rent

Others:137,721

141,8407,409

286,971

46,099333,070(47,573)285,496

Interest expenses

638

16

0

656

31

687

(49)

637

Equity in earnings (losses) of affiliates

—

—

—

—

—

—

72

72

Extraordinary gains

26

55

—

82

15

97

(68)

28

Extraordinary losses

4,280

11,754461

16,49617

16,513(0)

16,513

Impairment losses

744

—

—

744

—

744

—

744

Provision for reserve for pricefluctuations
Taxes
Investments in affiliated companies
Increase in tangible fixed assets andintangible fixed assets

¥

3,251

11,089459

14,800—14,800—14,80012,39018,458494

31,343724

32,068(6)

32,061

49

100

—

149

—

149

—

149

1,065 ¥

63,734531 ¥

64,266(117) ¥

64,14846,298¥16,370¥¥¥Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:(1) The adjustment of ¥(25,000 million) to ordinary revenues is the transferred amount which mainly consists of reversal of policy reserve of ¥20,409 million and provision for retirement benefits of¥3,627 million which are included in ordinary expenses of the consolidated statement of operation as provision for policy reserves and reversal of provision for retirement benefits, respectively.
(2) The adjustment of ¥(46,152 million) to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
(3) The adjustment of ¥(817,903 million) to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
(4) The adjustment of ¥(56,619 million) to segment liabilities is mainly due to the elimination of intersegment receivables and payables.
3. Segment income (loss) is adjusted to align with the ordinary revenues set forth in the consolidated statement of operation.

148

T&D Holdings INTEGRATED REPORT 2019¥ millions

Reportable segments

Year ended March 31, 2019

Ordinary revenues

T&D
Financial Life

Taiyo Life

Daido Life¥ 916,451¥1,044,933

1,158

627

—

1,786

59,684

61,471(61,471)—917,610

1,045,561

150,758

2,113,929

92,3012,206,231(66,068)

2,140,162

Intersegment transfers
Total

OthersSubtotal¥ 150,758 ¥ 2,112,143

Total

Amount on
consolidated
financialstatements

Adjustments¥ 32,616 ¥ 2,144,759¥(4,597) ¥ 2,140,162

54,19689,2702,064

145,531

36,478

182,009(35,060)

146,949

Segment assets

7,411,864

6,843,179

1,438,819

15,693,864

976,507

16,670,371(875,659)

15,794,711

Segment liabilities

6,996,551

6,180,746

1,361,498

14,538,796

207,081

14,745,878(110,754)

14,635,123

Depreciation of real estate for rent

3,594

2,653

—

6,247

—

6,247

(28)

6,219

Depreciation

6,787

4,216

256

11,260675

11,935(43)

11,892

Provision for (reversal of) policy reserve

182,709258,111

26,791

467,612180

467,792—

467,792

Provision for (reversal of) reserve forpolicyholder dividends

13,13814,005

027,144—

27,144—

27,144

Interest, dividends and income from realestate for rent

Segment income (loss)

Others:143,579

145,486

8,322

297,388

35,299332,688(36,830)

295,858

Interest expenses

934

16

2

953

323

1,277

(369)

907

Equity in earnings (losses) of affiliates

—

—

—

—

—

—

(24)

(24)

Extraordinary gains

152

497

—

650

48

699

—

699

Extraordinary losses

5,522

12,454552

18,52950

18,580918,589Impairment losses

1,574

538

—

2,113

—

2,113

—

2,113

Provision for reserve for pricefluctuations
Taxes
Investments in affiliated companies
Increase in tangible fixed assets andintangible fixed assets

¥

3,606

11,244552

15,402—

15,402—

15,402

10,14017,779500

28,420639

29,0596

29,066

94

365

—

459

—

459

—

459

938 ¥

29,181552 ¥

29,733(124) ¥

29,60814,425¥

13,817¥¥¥

US$ thousands

Reportable segments

Year ended March 31, 2019

Ordinary revenues

T&D
Financial Life

Taiyo Life

Daido Life

$ 8,257,060$ 9,414,664

10,441

5,656—

16,098537,745553,844(553,844)—

8,267,502

9,420,321

1,358,305

19,046,129

831,617

19,877,747(595,264)

19,282,482(315,885)

1,323,990

Intersegment transfers
Total

OthersSubtotal$ 1,358,305 $ 19,030,030

Total$ 293,871 $ 19,323,902

Adjustments

Amount on
consolidated
financialstatements$(41,419) $ 19,282,482

488,298

804,315

18,5981,311,212

328,662

1,639,875

Segment assets

66,779,570

61,655,821

12,963,509

141,398,902

8,798,154

150,197,056(7,889,534) 142,307,522

Segment liabilities

63,037,678

55,687,414

12,266,857

130,991,951

1,865,766

132,857,717(997,877) 131,859,840

Depreciation of real estate for rent

32,38423,903—56,288—56,288(254)

56,033

Depreciation

61,15637,9882,311

101,456

6,083

107,539(389)

107,149

Provision for (reversal of) policy reserve

1,646,177

2,325,541

241,388

4,213,107

1,623

4,214,730—

4,214,730

Provision for (reversal of) reserve forpolicyholder dividends

118,374

126,1893

244,566—

244,566—

244,566

1,293,627

1,310,805

74,9852,679,418

318,0432,997,462(331,833)

2,665,628

8,419

147

25

8,592

2,918

11,511(3,331)

8,180

—

—

—

—

—

—

(218)

(218)

Extraordinary gains

1,374

4,486

—

5,860

441

6,301

—

6,301

Extraordinary losses

49,760112,215

4,975

166,950455

167,40582

167,488

Impairment losses

14,1894,849—

19,039—19,039—19,039Provision for reserve for pricefluctuations

32,489101,312

4,975

138,777—

138,777—

138,777

91,363

160,191

4,505

256,060

5,763

261,82360

261,884

849

3,292

—

4,141

—

4,141

—

4,141

8,451 $

262,916

4,975 $

267,891(1,124) $266,766

Segment income (loss)

Others:Interest, dividends and income from realestate for rentInterest expenses
Equity in earnings (losses) of affiliates

Taxes
Investments in affiliated companies
Increase in tangible fixed assets andintangible fixed assets$

129,968$

124,496$$$

Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:(1) T he adjustment of ¥ (4,597 million) [$(41,419 thousand)] to ordinary revenues is the transferred amount which mainly consists of gains from derivatives, net of ¥2,286 million [$20,603 thousand],reversal of provision for retirement benefits of ¥1,254 million [$11,304 thousand] and foreign exchange gains, net of ¥854 million [$ 7,701 thousand] which is included in ordinary expenses of theconsolidated statement of operation as losses from derivatives, net, provision for retirement benefits and foreign exchange losses, net, respectively.
(2) The adjustment of ¥ (35,060 million) [$(315,885 thousand)] to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
(3) The adjustment of ¥ (875,659 million) [$(7,889,534 thousand)] to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
(4) The adjustment of ¥ (110,754 million) [$(997,877 thousand)] to segment liabilities is mainly due to the elimination of intersegment receivables and payables.
3. Segment income (loss) is adjusted to align with the ordinary profit set forth in the consolidated statement of operation.

T&D Holdings INTEGRATED REPORT 2019149

Corporate Data

[Related information]
For the year ended March 31, 2018

1. Information by product and service
Sales to external customers¥ millions

Year ended March 31, 2018

Taiyo Life

Daido Life

T&D Financial Life

Others

Total

Income from insurance premiums¥511,900¥790,852¥176,474¥4,492¥1,483,719

Insurance premiums

511,514789,337

176,158

4,492

1,481,502

Individual insurance and individual annuities

417,790

727,193

175,998—

1,320,982

Group insurance

31,46923,897——55,366

Group annuities

61,04837,200138—

98,386

Others

1,206

1,046

21

4,492

6,767

Ceded reinsurance recoveries

¥

386

¥

1,514

¥

316

¥

—

¥

2,217

Note: Income from insurance premiums instead of net sales is presented here.

2. Information by geographic area
(1) Net sales(2) Tangible fixed assets

Information by geographic area is omitted, as net sales (ordinary

Information by geographic area is omitted, as the amount ofrevenues) to external customers in Japan exceed 90% of net sales

tangible fixed assets in Japan exceeds 90% of the amount of(ordinary revenues) in the consolidated statement of operation.

tangible fixed assets in the consolidated balance sheet.

3. Information by major customer
Information by major customer is omitted, as there are no customers to whom sales exceed 10% of net sales (ordinary revenues) toexternal customers in the consolidated statement of operation.
For the year ended March 31, 2019

1. Information by product and service
Sales to external customers¥ millions

Year ended March 31, 2019

Taiyo Life

Daido Life

T&D Financial Life

Others

Total

Income from insurance premiums¥715,120¥828,003¥127,853¥5,206¥1,676,184

714,627

826,576

127,7655,206

1,674,175

Individual insurance and individual annuities

606,517

767,359

127,611—1,501,487

Group insurance

29,781

22,211——

51,992

Group annuities

77,13935,936134—

113,210

Others

1,189

1,069

19

5,206

Insurance premiums¥

Ceded reinsurance recoveries

493

¥

1,427

¥

87

¥

—

7,485
¥

2,008

US$ thousands

Year ended March 31, 2019

Income from insurance premiums

Daido Life

T&D Financial Life

OthersTotal$6,443,109$7,460,167$1,151,934$46,910$15,102,122

6,438,663

7,447,305

1,151,143

46,91015,084,023

5,464,611

6,913,768

1,149,753—

13,528,133

Group insurance

268,323

200,119——

468,443

Group annuities

695,010

323,784

1,210—

1,020,005

Others

10,717

9,632

179

46,910790$

Insurance premiums
Individual insurance and individual annuities

Ceded reinsurance recoveries
Note: Income from insurance premiums instead of net sales is presented here.

150

Taiyo LifeT&D Holdings INTEGRATED REPORT 2019

$

4,446

$

12,861$—

67,440$18,099

2. Information by geographic area
(1) Net sales(2) Tangible fixed assets

Information by geographic area is omitted, as net sales (ordinary

Information by geographic area is omitted, as the amount ofrevenues) to external customers in Japan exceed 90% of net sales

tangible fixed assets in Japan exceeds 90% of the amount of(ordinary revenues) in the consolidated statement of operation.

tangible fixed assets in the consolidated balance sheet.

3. Information by major customer
Information by major customer is omitted, as there are no customers to whom sales exceed 10% of net sales (ordinary revenues) toexternal customers in the consolidated statement of operation.

[Information on impairment losses on fixed assets by reportable segment]
For the years ended March 31, 2018 and 2019
Information on impairment losses on fixed assets by reportable segment is disclosed in “Note 30. Segment information.”[Information on amortization of goodwill and unamortized balance of goodwill by reportable segment]
For the years ended March 31, 2018 and 2019: Not applicable.

[Information on gains on negative goodwill by reportable segment]
For the years ended March 31, 2018 and 2019: Not applicable.

[Related party information]
1. Related party transactions
For the years ended March 31, 2018 and 2019: Not applicable.

2. Notes on the parent company or any important affiliated company
For the years ended March 31, 2018 and 2019: Not applicable.

T&D Holdings INTEGRATED REPORT 2019151

Corporate Data

Note 31

Per Share Information¥

US$

Years ended March 31,

2018

2019

2019

Net assets per share¥1,844.15¥1,884.30$16.97

Net income per share

124.23118.501.06

Net income per share (fully diluted)

121.81116.161.04

Note: A summary of the net assets per share, the net income per share and the net income per share (fully diluted) computations is as follows:(1) Net income per share and net income per share (fully diluted)
Years ended March 31,¥ millions

US$ thousands

2018

2019

2019

¥77,577¥72,825$656,148———¥77,577¥72,825$656,148

624,468,759

614,581,825

Net income per share:
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent attributable to common shareholders

Shares

Weighted-average number of common stocks outstanding

Years ended March 31,

2018¥ millions

US$ thousands

2019

2019

Net income per share (fully diluted):
Adjusted profit attributable to owners of parent

¥(20)

¥(20)

$(187)

Amortization of bond premium (after tax)

¥(20)

¥(20)

$(187)

12,215,498

12,206,787

Convertible Bond

11,152,830

11,230,066

Subscription rights to shares

1,062,668

976,721——

SharesIncrease in common stock

Summary of potential shares that are not included in computation of net income per share(fully diluted) due to lack of dilution effect(2) Net assets per share¥ millions

US$ thousands

2018

2019

2019

¥1,153,036¥1,159,588$10,447,682

5,611

6,473

58,322

Subscription rights to shares

1,216

1,081

9,742

Non-controlling interests

4,395

5,391

48,579Net assets available to common shareholders¥1,147,424¥1,153,115$10,389,359

The number of common stock outstanding

622,197,540

611,958,309

As of March 31,

Net assets
Deduction from net assets

Shares(3) The Company’s shares remaining in the BIP (Board Incentive

152

total number of outstanding shares at the end of the fiscal year.

Plan) Trust, which are recorded as treasury shares in sharehold-Accordingly, the average number of shares of the treasuryers’ equity, are included in treasury shares to be deducted in theshares deducted for calculation of net income per share and net

calculation of the average number of shares during the period

income per share (fully diluted) is 479,035 for the year ended

for calculation of net income per share and net income per share

March 31, 2019 and the number of year-end shares of the(fully diluted). Also, for the calculation of net assets per share, ittreasury shares deducted for calculation of net assets per share isis included in the number of treasury shares deducted from the827,900 for the year ended March 31, 2019.

T&D Holdings INTEGRATED REPORT 2019

Note 32

Significant Subsequent Events

The Company has resolved at its board of directors meeting held on May 15, 2019, the purchase of treasury shares under the provisionin Article 156 of the Companies Act of Japan, as applied pursuant to Article 165, Paragraph 3 of the same.

(1) Reasons for the purchase of treasury shares
To enhance shareholder return and improve capital efficiency.

(2) Details of the purchasea. Type of shares to be purchased: Shares of common stockb. Number of shares to be purchased : Up to 16,000,000 sharesc. Total amount of purchase: Up to ¥13,000 million [$117,127 thousand]d. Period of purchase: From May 16, 2019 to August 30, 2019e. Method of purchase: Open-market repurchase by the trust method(3) Results of the purchasea. Total number of purchased shares: 11,469,900 sharesb. Total cost of purchase: ¥12,999 million [$117,118 thousand]c. Period of purchase: From May 16, 2019 to June 4, 2019, on the basis of execution date

T&D Holdings INTEGRATED REPORT 2019153

Corporate Data

Independent Auditor’s Report

154

T&D Holdings INTEGRATED REPORT 2019

Stock Information
As of March 31, 2019BASIC INFORMATION
Stock Exchange Listings
Industry and Security Code
Trading Unit
Number of Shares of Common Stock
Fiscal Year-End
Ordinary General Meeting of Shareholders
Date of Record
Public NoticeTransfer Agent
Number of Shareholders

Tokyo Stock Exchange
Insurance, 8795
100 shares
Authorized: 1,932,000,000
Issued: 655,000,000
March 31 every year
June every year
Ordinary General Meeting of Shareholders March 31 every year
Dividends March 31 every year (interim dividend, when paid, on September 30)• Electronic public notice (Japanese only)• URL: https://www.td-holdings.co.jp/information/public.html/• If the Company is unable to issue an electronic public notice due to an accident or any other unavoidable
reason, a public notice will be issued in the Nihon Keizai Shimbun (daily newspaper).
Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-Chome, Chiyoda-ku, Tokyo, Japan
URL: https://www.tr.mufg.jp/english/
224,311

PRINCIPAL SHAREHOLDERS

Thousand Shares, %Name of Shareholders

Number of Shares Held

Percentage of Total Shares Outstanding

37,34334,70913,334
11,966
11,751
11,434
10,325
9,117
8,628
7,994

6.09
5.66
2.18
1.95
1.92
1.87
1.68
1.49
1.41
1.30

The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
SSBTC CLIENT OMNIBUS ACCOUNT
Japan Trustee Services Bank, Ltd. (Trust Account5)
Japan Trustee Services Bank, Ltd. (Trust Account7)
Japan Trustee Services Bank, Ltd. (Trust Account9)
MUFG Bank, Ltd.
STATE STREET BANK WEST CLIENT – TREATY 505234
JP MORGAN CHASE BANK 385151
Japan Trustee Services Bank, Ltd. (Trust Account1)

Note: In addition to the above, the Company holds 42,213 thousands of shares in treasury shares, which are excluded from the principal shareholders stated above.
Further, the percentage of total shares outstanding is calculated after deducting the treasury shares.

COMPOSITION OF SHAREHOLDERS AND SHARES
Proportion of Shares Held (%)
Non-life Insurance
Companies

Composition of Shareholders (%)

Life Insurance Companies
Other
Financial Institutions

Banks

Financial Instruments
Business Operators

Financial Instruments
Business Operators
Individuals andOthers
Other
Corporations

Banks
Trust BanksLife Insurance Companies
Other Financial Institutions

Regional Distribution of Shares Held (%)

Non-life Insurance
Companies

OthersAsia-Pacific

Foreign Corporations, etc.
U.S.
Foreign
Corporations,
etc.

Other
Corporations

Europe (including British
Overseas Territories), theMiddle East and Africa

Individuals andOthers

Japan

Trust
Banks

Foreign Corporations, etc.
Trust Banks
Other Corporations
Individuals and Others
Financial Instruments Business Operators
Banks
Non-life Insurance Companies
Life Insurance Companies
Other Financial Institutions
Governments and Local Public Bodies

38.88
22.22
17.67
12.10
3.86
3.23
1.68
0.28
0.08
—

Individuals and Others
Other Corporations
Foreign Corporations, etc.
Financial Instruments Business Operators
Banks
Trust BanksLife Insurance Companies
Other Financial Institutions
Non-life Insurance Companies
Governments and Local Public Bodies

65.29
34.34
0.31
0.02
0.01
0.01
0.01
0.01
0.00
—

Japan
Europe (including British Overseas
Territories), the Middle East and Africa
U.S.
Asia-Pacific
Others

61.12
22.77
14.90
1.21
0.00

T&D Holdings INTEGRATED REPORT 2019155

Corporate Data

Corporate Overview
As of March 31, 2019

Company Name

T&D Holdings, Inc.

Date of Establishment

April 1, 2004

Location of Headquarters

2-7-1, Nihonbashi, Chuo-ku, Tokyo 103-6031, Japan
Tel: +81-(0)3-3272-6110 Fax: +81-(0)3-3272-6552

Type of Business

Management control of life insurance subsidiaries under the Insurance BusinessAct of Japan and other laws and regulations, and other businesses associated with theabove

Paid-in Capital

207,111.86 million yen

Security Code8795

Stock Exchange Listings

Tokyo Stock Exchange (First Section)

Number of Common
Stocks Issued

655,000,000 shares

Number of Employees

107

Organizational Structure
As of April 1, 2019

Shareholders’ Meeting
Audit & Supervisory
Board Member
Audit & Supervisory Board

Nomination and Compensation
Committee

Board of Directors
Audit & Supervisory
Board Member’s OfficeGroup Compliance Committee
PresidentGroup SDGs Committee

Group Management
Committee

Executive Committee

Group ERM Committee

Group Management
Promotion Committee

Group Risk Management
Committee

Group Information
Technology Committee

Group Planning
Department

156

Business
Development
Department

T&D Holdings INTEGRATED REPORT 2019

Group Finance &Accounting
Department

Public Relations
Department

General Affairs
Department

Risk
Management
Department

Internal Auditing
Department

Websites
For more detailed information on the contents of this report, please see the Company’s websites.

Website of T&D Holdings, Inc.

Investor Relations

Corporate Responsibility

https://www.td-holdings.co.jp/en/

https://www.td-holdings.co.jp/en/ir/

https://www.td-holdings.co.jp/en/csr/

Forward-looking Statements
This report contains forward-looking statements about T&D Holdings’
future revenue plan, strategy, philosophy, and earnings forecasts which
involve factors of risk and uncertainty. Such statements are based on
the Company’s current expectations which could cause actual results
to differ materially from those described in the forward-looking statements. Factors which could influence the actual results include, but
are not limited to, (I) general economic conditions, in particular, conditions in the life insurance market on which the T&D Insurance Group
centers, (II) financial market trends, (III) levels and trends in mortality

rate and morbidity rate, (IV) persistency rate, (V) interest rate levels,(VI) fluctuation in currency exchange rates, (VII) other general competitive factors, (VIII) changes in laws and regulations, including the tax
treatment of insurance premiums, and (IX) changes in the policies of
the government and/or regulatory authorities. The Company, therefore, wishes to caution readers not to place undue reliance on theseforward-looking statements. Furthermore, the Company undertakes
no obligation to update any forward-looking statements as a result of
new information, future events, or other developments.
Contact: T&D Holdings, Inc. Group Planning Department
Investor Relations Division
Telephone: +81-(0)3-3272-6103

T&D Holdings INTEGRATED REPORT 2019157