Employee Benefits (Tables)

12 Months Ended

Mar. 31, 2025

Summary of Amounts Related to Defined Benefit Pension Plans Recognized in Consolidated Statements of Income


	JPY (millions) For the Year Ended March 31
	2023		2024		2025
Japan	¥	2,990	¥	2,741	¥	4,182
Foreign	13,782		15,956		13,925
Defined benefit costs	¥	16,772	¥	18,697	¥	18,106

Summary of Amounts Related to Defined Benefit Pension Plans Recognized in Consolidated Statements of Financial Position


	JPY (millions) As of March 31, 2024
	Japan		Foreign		Total
Present value of defined benefit obligations	¥	143,712	¥	301,078	¥	444,790
Fair value of plan assets	226,229		165,514		391,743
Effect of asset ceiling	63,422		—		63,422
Net defined benefit liabilities (assets)	¥	(19,096)	¥	135,564	¥	116,469

Consolidated statements of financial position
Net defined benefit liabilities	¥	8,317	¥	135,564	¥	143,882
Net defined benefit assets	27,413		—		27,413
Net amount of liabilities (assets) recognized in the consolidated statements of financial position	¥	(19,096)	¥	135,564	¥	116,469

	JPY (millions) As of March 31, 2025
	Japan		Foreign		Total
Present value of defined benefit obligations	¥	130,864	¥	253,624	¥	384,488
Fair value of plan assets	¥	221,422	¥	125,701	¥	347,123
Effect of asset ceiling	78,717		—		78,717
Net defined benefit liabilities (assets)	¥	(11,840)	¥	127,922	¥	116,083

Consolidated statements of financial position
Net defined benefit liabilities	¥	7,462	¥	127,967	¥	135,429
Net defined benefit assets	19,302		44		19,346
Net amount of liabilities (assets) recognized in the consolidated statements of financial position	¥	(11,840)	¥	127,922	¥	116,083

Summary of Changes in Present Value of the Defined Benefit Obligations

A summary of changes in present value of the defined benefit obligations for the periods presented is as follows:


	JPY (millions) For the Year Ended March 31, 2024
	Japan		Foreign		Total
At beginning of the year	¥	153,371	¥	247,725	¥	401,096
Current service cost	3,004		11,233		14,236
Interest cost	2,078		9,427		11,505
Remeasurement of defined benefit pension plans
From changes in demographic assumptions	(341)		197		(143)
From changes in financial assumptions	(5,508)		11,387		5,879
Experience adjustments	426		(4,628)		(4,202)
Past service cost	—		(67)		(67)

Benefits paid	(9,318)		(12,939)		(22,257)
Contributions by the employees	—		4,610		4,610

Foreign currency translation differences	—		34,132		34,132
At end of the year	¥	143,712	¥	301,078	¥	444,790

	JPY (millions) For the Year Ended March 31, 2025
	Japan		Foreign		Total
At beginning of the year	¥	143,712	¥	301,078	¥	444,790
Current service cost	2,918		12,281		15,199
Interest cost	2,448		9,170		11,618
Remeasurement of defined benefit pension plans
From changes in demographic assumptions	40		37		77
From changes in financial assumptions	(7,622)		(3,952)		(11,574)
Experience adjustments	696		7,006		7,701
Past service cost	1,535		(2,731)		(1,196)
Settlement(1)	—		(57,537)		(57,537)
Benefits paid	(12,701)		(17,053)		(29,754)
Contributions by the employees	—		5,053		5,053
Effect of business combinations and disposals	(161)		(95)		(256)
Foreign currency translation differences	—		366		366
At end of the year	¥	130,864	¥	253,624	¥	384,488

(1) The defined benefit obligation for the fiscal year ended March 31, 2025, decreased due to the implementation of a pension buyout for a certain retirement pension plan with participants in multiple U.S. subsidiaries.

Changes in effect of asset ceiling for the periods presented are as follows:


	JPY (millions) For the Year Ended March 31
	2024		2025
Balance at beginning of the year	¥	41,311	¥	63,422
Interest income	549		1,059
Remeasurement Changes in effect of asset ceiling	21,561		14,237
Balance at end of the year	¥	63,422	¥	78,717

Summary of Significant Actuarial Assumptions Used to Determine Present Value

Significant actuarial assumptions used to determine the present value are as follows:


	Discount rate		Future salary increases
As of March 31, 2024
Japan	1.7	%	—
Foreign	3.0	%	3.1	%
As of March 31, 2025
Japan	2.4	%	—
Foreign	2.5	%	3.0	%

Schedule of Sensitivity Analysis for Actuarial Assumptions

A 0.5% change in these actuarial assumptions would affect the present value of defined benefit obligations at the end of the reporting period, while holding all other assumptions constant, by the amounts shown below:


	JPY (millions)
	Discount Rate			Future Salary Increases
	Change in assumption		Impact	Change in assumption		Impact
As of March 31, 2024
Japan	+0.50	%	(8,414)	+0.50	%	—
	-0.50	%	9,092	-0.50	%	—
Foreign	+0.50	%	(17,458)	+0.50	%	4,463
	-0.50	%	19,599	-0.50	%	(4,129)
As of March 31, 2025
Japan	+0.50	%	(7,178)	+0.50	%	—
	-0.50	%	7,914	-0.50	%	—
Foreign	+0.50	%	(14,452)	+0.50	%	4,871
	-0.50	%	16,049	-0.50	%	(4,397)

Schedule of Changes in Fair Value of Plan Assets and Breakdown by Asset Class

A summary of changes in fair value of plan assets for the periods presented is as follows:


	JPY (millions) For the Year Ended March 31
	2024		2025
Balance at beginning of the year	¥	345,630	¥	391,743
Interest income on plan assets	7,527		8,574
Remeasurement of defined benefit plans Return on plan assets	15,923		1,164
Contributions by the employer	14,758		18,845
Contributions by the employees	4,610		5,053
Settlement(1)	—		(60,320)
Benefits paid	(15,161)		(18,826)

Foreign currency translation differences	18,457		890
Balance at end of the year	¥	391,743	¥	347,123

(1) Plan assets for the fiscal year ended March 31, 2025, decreased due to the implementation of a pension buyout for a certain retirement pension plan with participants in multiple U.S. subsidiaries.

The breakdown of fair value by asset class is as follows:


	JPY (millions) As of March 31
	2024				2025
	With quoted prices in active markets		No quoted prices in active markets		With quoted prices in active markets		No quoted prices in active markets
Equities:
Japan	¥	11,796	¥	2,803	¥	10,531	¥	2,315
Foreign	53,396		86,372		57,690		81,589
Bonds:
Japan	399		17,276		387		19,513
Foreign	33,153		79,251		33,014		33,246
Life insurance company general accounts	—		70,070		—		68,741

Cash and cash equivalent	10,951		—		11,070		—
Others	1,541		24,736		1,640		27,386
Total plan assets	¥	111,236	¥	280,507	¥	114,332	¥	232,791

Summary of Major Employee Benefits Expenses other than Retirement Benefits

Major employee benefit expenses other than retirement benefits for each fiscal year are as follows:


	JPY (millions) For the Year Ended March 31
	2023		2024		2025
Salary	¥	573,080	¥	688,316	¥	701,775
Bonuses	133,792		161,821		174,576
Other	237,857		274,094		266,491