v3.26.1
Employee benefit plans
 12 Months Ended
Mar. 31, 2026
Employee Benefit Plans [Abstract]  
Employee benefit plans
15. Employee benefit plans:
Nomura provides various pension plans and other post-retirement benefits which cover certain eligible employees worldwide. In addition, Nomura provides health care benefits to certain active and retired employees through its Nomura Securities Health Insurance Society (“NSHIS”).
Defined benefit pension plans—
The Company and certain subsidiaries in Japan (“Japanese entities”) have contributory funded benefit pension plans for eligible employees. The benefits are paid as annuity payments subsequent to retirement or as
lump-sum
payments at the time of retirement based on a combination of years of service, age at retirement and employee’s choice. The benefits under the plans are calculated based upon position, years of service and reason for retirement. In addition to the plans described above, certain Japanese entities also have unfunded
lump-sum
payment plans. Under these plans, employees with at least two years of service are generally entitled to
lump-sum
payments upon termination of employment. The benefits under the plans are calculated based upon position, years of service and the reason for retirement. In December 2008, certain contributory funded benefit pension plans and unfunded
lump-sum
payment plans were amended and “Cash balance pension plans” were introduced. Participants receive an annual benefit in their cash balance pension plan accounts, which is computed based on compensation of the participants, adjusted for the changes in market interest rate.
In April 2020, certain Japanese entities amended their pension plans. Certain defined benefit pension plans and unfunded
lump-sum
payment plans were either closed for additional funding or abolished. Defined contribution pension plans and cash balance pension plans have replaced them for future contributions.
Certain overseas subsidiaries have various local defined benefit plans covering certain employees. Nomura recognized an asset for surplus pension benefits for these plans amounting to ¥5,798 million and ¥726 million as of March 31, 2025 and 2026, respectively.
Net periodic benefit cost
The following table presents the components of net periodic benefit cost for defined benefit plans of Japanese entities for the years ended March 31, 2024, 2025 and 2026. Nomura’s measurement date is March 31 for defined benefit plans of Japanese entities.
 
    
Millions of yen
  
    
Year ended March 31
  
    
2024
    
2025
    
2026
  
Service cost
    ¥ 6,028     ¥ 5,748     ¥ 5,404  
Interest cost
      3,484       4,039       5,056  
Expected return on plan assets
      (5,658 )      (5,664 )      (5,369 ) 
Amortization of net actuarial losses
      3,021       1,844       798  
Amortization of prior service cost
      (1,603 )      (441 )      (541 )
  
 
 
    
 
 
    
 
 
  
Net periodic benefit cost
    ¥ 5,272     ¥ 5,526     ¥ 5,348  
  
 
 
    
 
 
    
 
 
  
Prior service cost is amortized on a straight-line basis over the average remaining service period of active participants. Gains and losses in excess of 10% of the greater of the projected benefit obligation or the fair value of plan assets are amortized over the average remaining service period of active participants, which is 12 years.
 
 
Benefit obligations and funded status
The following table presents a reconciliation of changes in projected benefit obligation (“PBO”) and the fair value of plan assets, as well as a summary of the funded status of Japanese entities’ plans as of, and for the years ended March 31, 2025 and 2026.
 
    
Millions of yen
  
    
As of or for the year
ended March 31
  
    
2025
    
2026
  
Change in projected benefit obligation:
     
Projected benefit obligation at beginning of year
    ¥ 245,439     ¥ 218,187  
Service cost
      5,748       5,404  
Interest cost
      4,039       5,056  
Actuarial gain
      (19,012 )      (13,512 ) 
Benefits paid
      (17,137 )      (16,842 )
Amendments of pension benefit plans
      (883 )      —  
Acquisition, divestitures and other
      (7 )      1  
  
 
 
    
 
 
  
Projected benefit obligation at end of year
    ¥ 218,187     ¥ 198,294  
  
 
 
    
 
 
  
Change in plan assets:
     
Fair value of plan assets at beginning of year
    ¥ 219,869     ¥ 208,523  
Actual return on plan assets
      (364 )      6,023  
Employer contributions
      748       —  
Benefits paid
      (11,730 )      (12,178 )
  
 
 
    
 
 
  
Fair value of plan assets at end of year
    ¥ 208,523     ¥ 202,368  
  
 
 
    
 
 
  
Funded status at end of year
      (9,664 )      4,074  
  
 
 
    
 
 
  
Amounts recognized in the consolidated balance sheets
    ¥ (9,664 )    ¥ 4,074  
  
 
 
    
 
 
  
The accumulated benefit obligation (“ABO”) was ¥218,187 million and ¥198,294 million as of March 31, 2025 and 2026, respectively.
In April 2020, defined contribution pension plans and cash balance pension plans were adopted for future contributions following the amendments of pension benefit plans. Certain contributory defined benefit pension plans were closed for additional funding and will be managed within the accumulated funds. Unfunded
lump-sum
payment plans were abolished and transferred to cash balance plans with the calculated amount of
lump-sum
retirement payment as of the amendment date.
 
 
The following table presents the PBO, ABO and fair value of plan assets for Japanese entities’ plans with ABO and PBO in excess of plan assets as of March 31, 2025 and 2026.
 
    
Millions of yen
  
    
March 31
  
    
2025
     
2026
  
Plans with ABO in excess of plan assets:
      
PBO
    ¥ 45,064      ¥ 45,356  
ABO
      45,064        45,356  
Fair value of plan assets
     
—
 		       
—
 		  
Plans with PBO in excess of plan assets:
      
PBO
    ¥ 45,064      ¥ 45,356  
ABO
      45,064        45,356  
Fair value of plan assets
     
—
 		       
 —
 		  
The following table presents
pre-tax
amounts of Japanese entities’ plans deferred in
Accumulated other comprehensive income (loss)
that have not yet been recognized as components of net periodic benefit cost during the year ended March 31, 2026.
 
    
Millions of yen
  
    
For the year ended

March 31, 2026
  
Net actuarial loss
    ¥   13,560  
Net prior service cost
      (4,693 ) 
  
 
 
  
Total
    ¥ 8,867  
  
 
 
  
Pre-tax
amounts of Japanese entities’ plans in
Accumulated other comprehensive income
which are expected to be recognized as components of net periodic benefit cost over the next fiscal year are as follows.
 
    
Millions of yen
  
    
For the year ending

March 31, 2027
  
Net actuarial loss
    ¥ (217 ) 
Net prior service cost
      (541 )
  
 
 
  
Total
    ¥   (758 )
  
 
 
  
Assumptions
The following table presents the weighted-average assumptions used to determine projected benefit obligations of Japanese entities’ plans as of March 31, 2025 and 2026.
 
    
March 31
  
    
2025
    
2026
  
Discount rate
      2.3 %      3.2 % 
Rate of increase in compensation levels
      0.5 %      0.4 % 
Interest crediting rate
      2.9 %      2.9 % 
 
 
The following table presents the weighted-average assumptions used to determine the net periodic benefit cost of Japanese entities’ plans for the year ended March 31, 2024, 2025 and 2026.
 
    
Year ended March 31
  
    
2024
    
2025
    
2026
  
Discount rate
      1.3 %      1.6 %      2.3 % 
Rate of increase in compensation levels
      0.4 %      0.5 %      0.5 % 
Expected long-term rate of return on plan assets
      2.6 %      2.6 %      2.6 % 
Interest crediting rate
      2.8 %      2.8 %      2.9 % 
Nomura generally determines the discount rates for its defined benefit plans by referencing indices for long-term, high-quality debt securities and ensuring that the discount rate does not exceed the yield reported for those indices after adjustment for the duration of the plans’ liabilities.
Nomura uses the expected long-term rate of return on plan assets to compute the expected return on assets. Nomura’s approach in determining the long-term rate of return on plan assets is primarily based on historical financial market relationships that have existed over time with the presumption that this trend will generally remain constant in the future.
Plan assets
Plan assets are managed with an objective to generate sufficient long-term value in order to enable future pension payouts. While targeting a long-term rate of return on plan assets, Nomura aims to minimize short-term volatility by managing the portfolio through diversifying risk. Based on this portfolio policy, the plan assets are invested diversely.
The plan assets of domestic plans target to invest 8% in equities (including private equity investments), 50% in debt securities, 28% in life insurance company general accounts, and 14% in other investments. Investment allocations are generally reviewed and revised at the time of the actual revaluation that takes place every five years or when there is a significant change in portfolio assumptions.
For details of the levels of inputs used to measure the fair value of plan assets, see Note 2 “
Fair value measurements.
”
The following tables present information about the fair value of plan assets of Japanese entities’ plans as of March 31, 2025 and 2026 within the fair value hierarchy.
 
    
Millions of yen
  
    
March 31, 2025
  
    
Level 1
     
Level 2
     
Level 3
     
Balance as of

March 31,
2025
  
Pension plan assets:
            
Private equity and pooled investments
(1)
   ¥
— 
      ¥ 1,545      ¥ 9,418      ¥ 10,963  
Japanese government securities
      24,713       
— 
       
— 
        24,713  
Investment trust funds and other
(2)(3)
    
 — 
        10,535        20,296        30,831  
Life insurance company general accounts
     
— 
        75,067       
— 
        75,067  
Other assets
     
— 
        31,420       
— 
        31,420  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    ¥ 24,713      ¥ 118,567      ¥ 29,714      ¥ 172,994  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
 
    
Millions of yen
  
    
March 31, 2026
  
    
Level 1
     
Level 2
     
Level 3
     
Balance as of

March 31,
2026
  
Pension plan assets:
            
Private equity and pooled investments
(1)
   ¥
 — 
      ¥ 584      ¥ 9,139      ¥ 9,723  
Japanese government securities
      19,954       
 — 
       
 — 
        19,954  
Investment trust funds and other
(2)(3)
    
 — 
        10,026        20,739        30,765  
Life insurance company general accounts
     
 — 
        74,968       
 — 
        74,968  
Other assets
     
 — 
        28,866       
 — 
        28,866  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    ¥ 19,954      ¥ 114,444      ¥ 29,878      ¥ 164,276  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
(1)
Includes corporate type equity investments.
(2)
Includes primarily debt investment funds. Hedge funds and real estate funds are also included.
(3)
Certain plan assets that are carried at fair value using net asset value per share as a practical expedient have not been classified in the fair value hierarchy. As of March 31, 2025 and 2026, the fair value of these assets was ¥35,529 million and ¥38,092 million, respectively.
Within the fair value measurement of plan assets of
non-Japanese
entities’ plans as of March 31, 2025, ¥133 million, ¥3,102 million and ¥24,121 million were classified in Level 1, Level 2 and Level 3 of the fair value hierarchy, respectively. Within the fair value measurement of plan assets of
non-Japanese
entities’ plans as of March 31, 2026, ¥242 million, ¥3,098 million and ¥24,148 million were classified in Level 1, Level 2 and Level 3 of the fair value hierarchy, respectively.
See Note 2 “
Fair value measurements
” for further information regarding how Nomura estimates fair value for specific types of financial instruments.
The following tables present information about plan assets of Japanese entities’ plans for which Nomura has utilized significant Level 3 valuation inputs to estimate fair value.
 
    
Millions of yen
  
    
Year ended March 31, 2025
  
    
Balance

as of

April 1,

2024
     
Unrealized

and realized

gains / (loss)
    
Purchases /

sales and

other

settlement
    
Balance

as of

March 31,

2025
  
Private equity and pooled investments
    ¥ 16,321      ¥ (3,608 )    ¥ (3,295 )    ¥ 9,418  
Investment trust funds and other
      27,022        (1,245 )      (5,481 )      20,296  
  
 
 
     
 
 
    
 
 
    
 
 
  
Total
    ¥ 43,343      ¥ (4,853 )    ¥ (8,776 )    ¥ 29,714  
  
 
 
     
 
 
    
 
 
    
 
 
  
    
Millions of yen
  
    
Year ended March 31, 2026
  
    
Balance

as of

April 1,

2025
     
Unrealized

and realized

gains / (loss)
    
Purchases /

sales and

other

settlement
    
Balance

as of

March 31,

2026
  
Private equity and pooled investments
    ¥ 9,418      ¥ 415     ¥ (694 )   ¥ 9,139  
Investment trust funds and other
      20,296        1,215       (772)       20,739  
  
 
 
     
 
 
    
 
 
    
 
 
  
Total
    ¥ 29,714      ¥ 1,630     ¥ (1,466 )   ¥ 29,878  
  
 
 
     
 
 
    
 
 
    
 
 
  
 
 
The fair value measurement of plan assets of
non-Japanese
entities’ plans classified as Level 3 mainly consists of annuities which amounted to ¥24,121 million and ¥24,148 million as of March 31, 2025 and 2026, respectively. The amount of unrealized gain (loss) of Level 3 assets amounted to ¥(4,836) million and ¥(796) million for the years ended March 31, 2025 and 2026, respectively. The amounts of gains and losses other than above, purchases and sales, and transfers between Level 1 or Level 2 and Level 3 relating to these assets during the years ended March 31, 2025 and 2026 were not significant.
Cash Flows
Following the amendments of pension benefit plans in Japanese entities, certain contributory funded benefit pension plans were closed for additional funding and will be managed within the accumulated funds.
The following table presents the expected benefit payments of Japanese entities’ plans during the next five fiscal years and in aggregate for the five fiscal years thereafter.
 
Year ending March 31
   
Millions of yen
  
2027
    ¥   16,926  
2028
      16,288  
2029
      14,758  
2030
      13,291  
2031
      12,450  
2032-2036
      57,471  
Defined contribution pension plans—
In addition to defined benefit pension plans, the Company, NSC and other Japanese and
non-Japanese
subsidiaries have defined contribution pension plans.
Nomura contributed ¥6,656 million, ¥6,681 million and ¥7,049 million to defined contribution pension plans for Japanese entities’ plans for the years ended March 31, 2024, 2025 and 2026, respectively.
The contributions to overseas defined contribution pension plans were ¥15,026 million, ¥15,179 million and ¥21,674 million for the years ended March 31, 2024, 2025 and 2026, respectively.
Health care benefits—
The Company and certain subsidiaries provide certain health care benefits to both active and retired employees through NSHIS. The Company and certain subsidiaries also sponsor certain health care benefits to retired employees (“Special Plan”) and who participate in the Special Plan on a
pay-all
basis, i.e., by requiring a retiree contribution based on the estimated per capita cost of coverage. The Special Plan is a multi-employer post-retirement plan because it is jointly administered by NSHIS and the Japanese government, and the funded status of it is not computed separately. Therefore, although the Company and certain subsidiaries contribute some portion of the cost of retiree health care benefits not covered through retiree contributions, the Company and certain subsidiaries do not reserve for future costs. The health care benefit costs, which are equivalent to the required contribution, were ¥9,453 million, ¥10,066 million and ¥10,146 million for the years ended March 31, 2024, 2025 and 2026, respectively.