Summary of accounting policies (Policies) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Description of business | Description of business— Nomura Holdings, Inc. (“Company”) and its broker-dealer, banking and other financial services subsidiaries provide investment, financing and related services to individual, institutional and government clients on a global basis. The Company and other entities in which it has a controlling financial interest are collectively referred to as “Nomura” within these consolidated financial statements. Nomura operates its business through various divisions based on the nature of specific products and services, its main client base and management structure. Nomura reports operating results through four
business segments: Wealth Management, Investment Management, Wholesale, and Banking. The Banking Division was newly established on April , 2025. See Note 23 “ Segment and geographic information” for further details regarding Nomura’s business segments. |
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| Voluntary change in accounting policy | Voluntary change in accounting policy Effective from April 1, 2024, Nomura changed its accounting policy in respect of how accounting guidance provided by Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 940 “Financial Services—Brokers and Dealers” (“non-BD entities”) no longer apply ASC 940. This accounting policy change was primarily due to the planned expansion of Nomura’s banking and investment management business and allows certain non-BD entities to prospectively classify purchases of new non-trading debt securities as either held to maturity (“HTM”) or available for sale (“AFS”) as defined in ASC 320 “Investments—Debt Securities As retrospective application of this accounting policy change was impracticable, since it would require use of hindsight regarding historical accounting matters such as the initial classification of non-trading debt securities, Nomura applied this new accounting policy prospectively from April 1, 2024. As part of this accounting policy change, existing loans held for trading purposes and non-trading debt securities held by non-BD entities previously carried at fair value with changes in fair value recognized through earnings on a recurring basis (i.e. FV-NI) through consolidated application of ASC 940 were elected for the fair value option (“FVO”) permitted by ASC 825 “Financial Instruments” (“ASC 825”) on April 1, 2024 and therefore continue to be carried at fair value on a recurring basis from such date. A similar election has been made for subsequent new originations or purchases of loans held for trading purposes and for purchases of certain non-trading debt securities by non-BD entities on or after April 1, 2024. Such loans continue to be reported in the consolidated balance sheets within Trading assets Revenue—Net gain on trading non-trading debt securities elected for the FVO continue to be reported in the consolidated balance sheets within Non-trading debt securitiesRevenue—Other Following this accounting policy change, fair value changes of non-trading debt securities purchased on or after April 1, 2024 and classified as HTM or AFS by non-BD entities are not recognized through earnings, unless an impairment loss is recognized.As part of this accounting policy change, certain equity investments held for non-trading purposes by non-BD entities which do not have readily determinable fair values have been elected for the fair value measurement alternative permitted by ASC 321 “Investments—Equity Securities” Other assets — Investments in equity securities Other assets — Other Revenue—Gain (loss) on investments in equity securities and Revenue—Other. An equity investment elected for the fair value measurement alternative is qualitatively assessed for impairment at each interim and annual balance sheet date. An equity investment is deemed impaired if its estimated fair value is less than its carrying value, namely either the initial cost of the equity investment or the current adjusted carrying value as a result of an observable price change and prior impairments. Where an equity investment elected for the fair value measurement alternative is deemed impaired, an impairment loss is calculated as the difference between the estimated fair value and the carrying value which is recognized in the consolidated statements of income within Revenue-Gain (loss) on investments in equity securities and Revenue-Other. Adoption of this accounting policy change has not had a material financial impact on these consolidated financial statements during the years ended March 31, 2025 and 2026. |
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| Basis of presentation | Basis of presentation— The accounting and financial reporting policies of Nomura are based on accounting principles generally accepted in the United States (“U.S. GAAP”). These consolidated financial statements include the financial statements of the Company and other entities in which it has a controlling financial interest. Nomura initially determines whether it has a controlling financial interest in an entity by evaluating whether the entity is a variable interest entity (“VIE”) under ASC 810 “ Consolidation . For entities other than VIEs, Nomura is generally determined to have a controlling financial interest in an entity when it owns a majority of the voting interests. Equity investments in entities in which Nomura has significant influence over operating and financial decisions (generally defined as a holding of 20 to 50 percent of the voting stock of a corporate entity, or at least 3 percent of a limited partnership) are accounted for under the equity method of accounting (“equity method investments”) and reported within Other assets — Investments in and advances to affiliated companies FV-NI by electing the FVO permitted by ASC 825 and reported in the consolidated balance sheets within Trading assets, Private equity and debt investments or Other assets — Other goodwill, are not tested separately for impairment. Where an other-than-temporary impairment is deemed to exist, the equity method investment is written down to its fair value, which establishes a new carrying value to be used prospectively. Certain consolidated entities are investment companies under ASC 946 “ Financial Services — Investment Companies The Company’s principal subsidiaries include Nomura Securities Co., Ltd. (“NSC”), Nomura Securities International, Inc. (“NSI”), Nomura International plc (“NIP”) and Nomura Financial Products & Services, Inc. (“NFPS”). All material intercompany transactions and balances have been eliminated on consolidation. |
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| Use of estimates | Use of estimates— Nomura uses accounting estimates to prepare these consolidated financial statements and they require difficult, subjective and complex judgments by management. Such estimates determined by management to have a significant/material impact during the periods covered by these consolidated financial statements primarily relate to estimates regarding the fair value of financial instruments. Estimates, by their nature, are based on underlying assumptions which require management judgment and depend on the extent of available information. Actual results in future periods may differ from current estimates, which could have a material impact on these consolidated financial statements. Various references are made throughout the notes to these consolidated financial statements where critical accounting estimates based on management judgment have been made, the nature of the estimates, the underlying assumptions made by management used to derive those estimates and how these estimates affect the amounts reported in these consolidated financial statements. |
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| Fair value of financial instruments | Fair value of financial instruments— A significant amount of Nomura’s financial assets and financial liabilities are carried at FV-NI or at fair value with changes in fair value recognized through the consolidated statements of comprehensive income (i.e. FV-OCI). Use of a fair value measurement is either specifically required under U.S. GAAP or Nomura makes an election to use a fair value measurement for certain eligible items under the FVO permitted by ASC 825. Other financial assets and financial liabilities are carried at fair value on a nonrecurring basis, where the primary measurement basis is not fair value. Fair value is only used in specific circumstances after initial recognition, such as to measure impairment. In both cases, fair value is generally determined in accordance with ASC 820 “ Fair Value Measurements and Disclosures Fair value measurements The fair values of financial assets and financial liabilities of consolidated VIEs which meet the definition of collateralized financing entities are both measured using the more observable fair value of the financial assets and financial liabilities. |
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| Allowance for current expected credit losses | Allowance for current expected credit losses— Management recognizes allowance for current expected credit losses on financial assets not carried at fair value and certain off-balance sheet financial instruments including unfunded loan commitments in accordance with ASC 326, “Financial Instruments—Credit Losses” Current expected credit losses are calculated over the expected life of the financial instruments in scope of the requirements on an individual or a portfolio basis, considering all relevant, reasonable and supportable information available about the collectability of cash flows, including information about past events, current conditions and future forecasts. Accrued interest receivables are excluded from the amortized cost basis of financing receivables when calculating current expected credit losses. The methodology used by Nomura to determine allowances for current expected credit losses in accordance with the current expected credit losses impairment model (“CECL impairment model”) primarily depends on the nature of the financial instrument and whether certain practical expedients permitted by ASC 326 are applied by Nomura. Allowances for current expected credit losses against recognized financial instruments are reported in the consolidated balance sheets within Allowance for credit losses off-balance sheet financial instruments are reported in the consolidated balance sheets within Other liabilities Other expenses. See Note 8 “Financing receivables” |
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| Transfers of financial assets | Transfers of financial assets— Nomura accounts for the transfer of a financial asset as a sale when Nomura relinquishes control over the asset by meeting the following conditions: (a) the asset has been isolated from the transferor (even in bankruptcy or other receivership), (b) the transferee has the right to pledge or exchange the asset received, or if the transferee is an entity whose sole purpose is to engage in securitization or asset-backed financing activities, the holders of its beneficial interests have the right to pledge or exchange the beneficial interests held, and (c) the transferor has not maintained effective control over the transferred asset. In connection with its securitization activities, Nomura utilizes special purpose entities (“SPEs”) to securitize commercial and residential mortgage loans, government and corporate securities or other types of financial assets. Nomura’s involvement with SPEs includes structuring and underwriting, distributing and selling debt instruments and beneficial interests issued by SPEs to investors. Nomura derecognizes financial assets transferred in securitizations provided that Nomura has relinquished control over such assets and does not consolidate the SPE. Nomura may obtain or retain an interest in the financial assets, including residual interests in the SPEs dependent upon prevailing market conditions. Any such interests are carried at fair value and reported within Trading assets Revenue — Net gain on trading |
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| Foreign currency translation | Foreign currency translation— The financial statements of the Company’s subsidiaries and operations are measured using their functional currency which is the currency of the primary economic environment in which the entity operates. All assets and liabilities of subsidiaries and operations which have a functional currency other than Japanese Yen are translated into Japanese Yen at exchange rates at the balance sheet date, and all revenue and expenses are translated at the average exchange rates for the respective years and the resulting translation adjustments are reported in the consolidated statements of comprehensive income, net of applicable income taxes within Other comprehensive income (loss) Accumulated other comprehensive income (loss) Foreign currency assets and liabilities are translated at exchange rates at the balance sheet date and the resulting translation gains or losses are credited or charged to the consolidated statements of income.
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| Revenue from services provided to customers | Revenue from services provided to customers— Nomura earns revenue through fees and commissions from providing financial services to customers primarily across all business divisions. These services primarily include trade execution and clearing, distribution of fund units, financial advisory, underwriting and distribution and asset management services. Revenue is recognized when or as the customer obtains control of the service provided by Nomura which depends on when each of the key distinct substantive promises made by Nomura within the contract with the customer (“performance obligations”) are satisfied. Such performance obligations are generally satisfied at a particularly point in time or, if certain criteria are met, over a period of time. Revenue from the distribution of fund units and clearing is reported in the consolidated statements of income within Revenue — Commissions, Revenue — Asset management and portfolio service fees Revenue — Fees from investment banking Costs to obtain or fulfill the underlying contract to provide such financial services to customers are deferred as assets if certain criteria are met. These deferred costs, which are reported in the consolidated balance sheets within Other assets, |
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| Trading assets and trading liabilities | Trading assets and trading liabilities— Trading assets
Trading liabilities non-trading derivative liabilities entered into for specific economic and risk management hedging purposes, which are recognized on the consolidated balance sheets on a trade date basis. Trading assets and liabilities are carried at fair value and changes in fair value are generally reported within Revenue —Net gain on trading Certain short sales of securities of trading liabilities are held to economically hedge the price risk of specific investments in equity securities held for operating purposes. Changes in fair value of these trading liabilities are reported in the consolidated statements of income within Revenue—Gain (loss) on investments in equity securities |
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| Collateralized agreements and collateralized financing | Collateralized agreements and collateralized financing— Collateralized agreements Securities purchased under agreements to resell Securities borrowed Collateralized financing Securities sold under agreements to repurchase Securities loaned Reverse repurchase and repurchase agreements principally involve the buying or selling of securities under agreements with clients to resell or repurchase these securities to or from those clients, respectively. These transactions are generally accounted for as collateralized agreements or collateralized financing transactions and are recognized in the consolidated balance sheets at the amount for which the securities were originally acquired or sold. Certain reverse repurchase and repurchase agreements are carried at FV-NI through election of the FVO. Nomura also enters into Japanese repo transactions (“Gensaki Repo”) which are the standard type of repurchase agreement used in Japanese financial markets. These transactions contain margin requirements, substitution rights, and certain restrictions on the client’s right to sell or repledge the transferred securities and are accounted for as collateralized agreements or collateralized financing transactions and are recognized on the consolidated balance sheets at the amount that the securities were originally acquired or sold. Securities borrowing and lending transactions are generally accounted for as collateralized agreements and collateralized financing transactions, respectively. These transactions are generally cash collateralized and are recognized on the consolidated balance sheets at the amount of cash collateral advanced or received, unless they are carried at FV-NI through election of the FVO. Allowances for current expected credit losses recognized against securities borrowing transactions are not significant due to the ongoing monitoring of collateral and the short expected life of these transactions. Where Nomura receives securities rather than cash in a securities lending transaction and such securities can be sold or pledged as collateral, Nomura recognizes the securities received at fair value which are reported in the consolidated balance sheets within Other assets —Other Other liabilities. See Note 8 “Financing receivables” Offsetting of collateralized agreements and collateralized financings Reverse repurchase agreements and repurchase agreements accounted for as collateralized agreements and collateralized financing transactions respectively, entered into with the same counterparty and documented under a master netting agreement are offset in the consolidated balance sheets where the specific criteria defined by ASC 210-20 “Balance Sheet — Offsetting 210-20”) are met. These criteria primarily relate to the maturity of the transactions, the underlying systems on which the collateral is settled, associated banking arrangements and the legal enforceability of close-out and offsetting rights under the master netting agreement. Similarly, securities borrowing and lending transactions accounted for as collateralized agreements and collateralized financing transactions respectively, entered into with the same counterparty and documented under a master netting agreement are also offset in the consolidated balance sheets where the specific criteria defined by ASC 210-20 are met. Other secured borrowings Trading balances of secured borrowings Transfers and Servicing Long-term borrowings “Securitizations and Variable Interest Entities” “Borrowings” All Nomura-owned assets pledged to counterparties where the counterparty has the right to sell or repledge the securities, including collateral transferred under Gensaki Repo transactions, are reported parenthetically in the consolidated balance sheets as assets pledged within Trading assets See Note 5 “Collateralized transactions” |
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| Derivatives | Derivatives— Nomura uses a variety of derivatives, including futures, forwards, swaps and options, for both trading and non-trading purposes. Freestanding financial instruments which meet the accounting definition of derivatives are carried at fair value in the consolidated balance sheets Certain derivatives embedded in hybrid financial instruments such as structured notes and certificates of deposit are bifurcated from the host contract and are also carried at fair value in the consolidated balance sheets and reported within Short-term borrowings Long-term borrowings Derivatives used for trading purposes Derivatives used for trading purposes, including bifurcated embedded derivatives, are carried at FV-NI. These derivatives are reported in the consolidated balance sheets within Trading assets or Trading liabilities Revenue — Net gain on trading Derivatives held for non-trading purposes In addition to its trading activities, Nomura uses derivatives for non-trading purposes such as to manage certain risk exposures arising from recognized assets and liabilities, forecasted transactions and firm commitments. Derivatives held for non-trading purposes include derivatives formally designated as fair value or net investment hedges under ASC 815 “Derivatives and Hedging
Although these are non-trading derivatives, such recognized derivative assets and liabilities are currently reported in the consolidated balance sheets within Trading assets Trading liabilities Offsetting of derivatives Trading and non-trading derivative assets and liabilities entered into with the same counterparty documented under a legally enforceable master netting agreement and the related cash collateral receivables and payables are presented on a net basis in the consolidated balance sheets where the specific criteria defined by ASC 210-20 and ASC 815 are met. Settlement-to-market Exchange traded and centrally cleared OTC derivatives typically involve daily variation margin payments and receipts which reflect changes in the fair value of the related derivatives. Such variation margin amounts are accounted for as either a partial settlement of the derivative or as a separate cash collateral receivable or payable depending on the legal arrangement with the relevant central clearing counterparty. See N ote 3 “Derivatives instruments and hedging activities |
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| Loans receivable | Loans receivable— Loans receivable are loans held for non-trading purposes, namely those which management intends to hold for the foreseeable future. Loans receivable are either carried at FV-NI through election of the FVO or at amortized cost. Loans receivable carried at fair value Certain loans which are risk managed on a fair value basis are carried at FV-NI through election of the FVO. Nomura makes this election to mitigate volatility in the consolidated statements of income caused by the difference in measurement basis that would otherwise exist between the loans and the derivatives used to risk manage those loans. Changes in the fair value of loans receivable carried at FV-NI are reported in the consolidated statements of income within Revenue — Net gain on trading FV-NI is recognized in the consolidated statements of income within Revenue — Interest and dividends Loans receivable carried at amortized cost Loans receivable which are not carried at FV-NI through election of the FVO are carried at amortized cost. Amortized cost represents cost adjusted for deferred fees and direct costs, unamortized premiums or discounts on purchased loans and after deducting applicable allowances for current expected credit losses under ASC 326. Interest income, including net loan origination fees, is recognized using the interest method and reported in the consolidated statements of income within Revenue — Interest and dividends Modifications of loans from debtors experiencing financial difficulty See Note 8 “ Financing receivables |
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| Other receivables | Other receivables— Receivables from customers Receivables from other than customers These amounts are carried at contractual amounts due less any applicable allowance for current expected credit losses recognized under ASC 326. See Note 8 “ Financing receivables” |
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| Loan commitments | Loan commitments— Unfunded loan commitments written by Nomura are accounted for as either off-balance sheet instruments, or are carried at FV-NI either as trading instruments or through election of the FVO. These loan commitments are generally accounted for in a manner consistent with the accounting for the loan receivable upon funding. Where the loan receivable is carried at FV-NI through classification as a trading asset or through election for the FVO, the loan commitment is also generally carried at FV-NI, with changes in fair value reported in the consolidated statements of income within Revenue — Net gain on trading For loan commitments where the loan will be held for the foreseeable future and will not be elected for the fair value option, Nomura recognizes allowances for current expected credit losses in accordance with ASC 326. Loan commitment fees are generally deferred and recognized over the term of the loan when funded as an adjustment to yield. If drawdown of the loan commitment is considered remote, loan commitment fees are recognized over the commitment period as service revenue. See Note 8 “Financing receivables” |
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| Non-trading investments | Non-trading investments Prior to April 1, 2024, all debt securities and equity investments which were not held for trading purposes were recognized on the consolidated balance sheets on a trade date basis and were generally carried at FV-NI with all changes in fair value reported in the consolidated statements of income within Revenue — Gain (loss) on investments in equity securities Revenue — Other Following the voluntary change in accounting policy effective from April 1, 2024 described above,
non-BD entities within Nomura are permitted to classify non-trading debt securities purchased on or after April 1, 2024 as AFS debt securities or HTM debt securities in accordance with ASC 320. |
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| AFS debt securities | AFS debt securities AFS debt securities are non-trading debt securities held by non-BD entities which have not been designated as HTM debt securities nor which have been elected to be carried at FV-NI through election of the FVO. AFS debt securities and accrued interest arising from these securities are reported in the consolidated balance sheets within Non-trading debt securities Receivables from other than customers Other comprehensive income (loss) Interest and dividends Nomura evaluates each AFS debt security for impairment at each interim and annual balance sheet date when its fair value declines below its amortized cost and therefore the AFS debt security is in an unrealized loss position. If Nomura has the intention to sell the AFS security in an unrealized loss position, or if it is more likely than not that Nomura will be required to sell the security before recovery of its amortized cost, the AFS debt security is written down to its fair value through Non-interest expenses— Other AFS debt securities which are in an unrealized loss position that Nomura neither has the intention to sell nor a more likely than not requirement to sell are evaluated to determine whether the decline in fair value below its amortized cost has resulted from a credit loss or is due to other factors. Nomura considers various qualitative factors in such determination, including the financial condition of the issuer and any adverse conditions related to industry or geographic area of the issuer, failure of interest and principal payments by the issuer, current status and any changes in rating and credit enhancement. If the AFS debt security fails any of these qualitative criteria, Nomura calculates an allowance for current expected credit losses using a discounted cash flow analysis to determine if all or portion of the unrealized loss is a result of such expected credit losses which is recognized in the consolidated statements of income within Non-interest expenses— Other Other comprehensive income (loss) Nomura does not recognize any allowances for current expected credit losses against accrued interest receivable amounts arising from AFS debt securities since Nomura policy is to write off the receivable by reversing accrued interest when it is determined that the accrued interest receivable is uncollectible. Any realized gains or losses arising on the sale of or transfer of an AFS debt security recognized in Accumulated other comprehensive income (loss) Revenue—Other HTM debt securities HTM debt securities are non-trading debt securities held by non-BD entities which are specifically designated as HTM debt securities on the basis that the non-BD entity has both the ability and the intent to hold the securities until maturity. HTM debt securities and accrued interest arising from these securities are reported in Non-trading debt securities Receivables from other than customers HTM debt securities are carried at amortized cost less an appropriate allowance for current expected credit losses typically determined and calculated in the same way as for loans also carried at amortized cost. Interest on HTM debt securities, including amortization of premiums and accretion of discounts, is recognized using the interest method and reported in the consolidated statements of income within Interest and dividends Revenue — Other Other non-trading debt securities Other non-trading debt securities consist of all debt securities held by BD entities for non-trading purposes which are mandatorily carried at FV-NI through application of ASC 940 and debt securities held by non-BD entities for non-trading purposes which are also carried at FV-NI through election of the FVO. Other non-trading debt securities and accrued interest arising from these securities are reported in the consolidated balance sheets within Non-trading debt securities Receivables from other than customers non-trading debt securities is recognized on an accrual basis and reported in the consolidated statements of income within Revenue—Interest and divide nds Equity investments held for non-trading purposes Equity investments held for non-trading purposes are equity securities and similar instruments in which Nomura has neither control nor significant influence held by both BD and non-BD entities which are not held for trading purposes. The investments include private equity investments, investments in exchanges and settlement systems and equity investments held for operating purposes, namely minority equity investments in unaffiliated Japanese financial institutions and corporations in order to promote existing and potential business relationships. These companies often have similar investments in Nomura. Such cross-holdings are a customary business practice in Japan and provide a way for companies to manage shareholder relationships. Equity investments held for non-trading purposes and accrued dividends receivable arising from these equity investments are reported in the consolidated balance sheets within Trading assets and private equity and debt investments—Private equity and debt investments Other assets—Investments in equity securities Other assets—Other Equity investments held for non-trading purposes by BD and non-BD entities are mandatorily carried at FV-NI through application of ASC 940 and ASC 321, respectively. Unrealized and realized gains and losses are reported in the consolidated statements of income within Revenue—Gain on private equity and debt investments Revenue—Gain (loss) on investments in equity securities Revenue—Other Revenue—Interest and dividends As described above, since April 1, 2024, certain equity investments held for non-trading purposes by non-BD entities which do not have readily determinable fair values have been elected for the fair value measurement alternative permitted by ASC 321. |
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| Payables and deposits | Payables and deposits— Payables to customers Payables to other than customers failed-to-receive Deposits received at banks |
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| Office buildings, land, equipment and facilities | Office buildings, land, equipment and facilities— Office buildings, land, equipment and facilities, owned and held for use by Nomura are carried at cost, net of accumulated depreciation and amortization, except for land, which is carried at cost. Significant renewals and additions are capitalized at cost. Maintenance, repairs and minor renewals are expensed as incurred in the consolidated statements of income. Leases and subleases entered into by Nomura as either lessor or lessee are classified as either operating or finance leases on inception date in accordance with ASC 842 “Leases.” right-of-use Other assets—Office buildings, land, equipment and facilities and Other liabilities Lease liabilities are initially carried at the present value of the future minimum lease payments over the expected lease term. The future minimum lease payments are discounted using a relevant Nomura incremental borrowing rate as derived from information available at lease commencement date. The expected lease term is generally determined based on the contractual maturity of the lease, and adjusted for periods covered by options to extend or terminate the lease when Nomura is reasonably certain to exercise those options. ROU assets are initially carried at the amount of lease liabilities, and adjusted for any prepaid lease payments, initial direct costs incurred and any lease incentives received. After lease commencement date, for operating leases Nomura as lessee recognizes lease expense over the lease term generally on a straight-line basis Occupancy and related depreciation Information processing and communications Occupancy and related depreciation Interest expense Depreciation and amortization expenses of owned assets are generally computed using the straight-line method and recognized over the estimated useful lives of each asset. The estimated useful life of an asset considers technological change, normal deterioration and actual physical usage by Nomura. Leasehold improvements are depreciated over the shorter of their useful life or the term of corresponding lease. The estimated useful lives for significant asset classes are as follows:
Long-lived assets, including ROU assets and software assets but excluding goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the estimated future undiscounted cash flows generated by the asset is less than the carrying amount of the asset, a loss is recognized to the extent that the carrying value exceeds its fair value. See Note 9 “
Leases |
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| Short-term and long-term borrowings | Short-term and long-term borrowings— Short-term borrowings are defined as borrowings which are due on demand, which have a contractual maturity of one year or less at issuance date, or which have a longer contractual maturity but which contain substantive features outside of Nomura’s control that allows the investor to demand redemption within one year from original issuance date. Short-term and long-term borrowings primarily consist of commercial paper, bank borrowings, and certain structured notes issued by Nomura and SPEs consolidated by Nomura, and financial liabilities recognized in transfers of financial assets which are accounted for as financings rather than sales under ASC 860 (“secured financing transactions”). Of these financial liabilities, all structured notes and certain secured financing transactions are carried at FV-NI through election of the FVO. Other short and long-term borrowings are carried at amortized cost or at FV-NI through election of the FVO. Structured notes are debt securities which contain embedded features (often meeting the accounting definition of a derivative) that alter the return to the investor from simply receiving a fixed or floating rate of interest to a return that depends upon some other variable(s) such as an equity or equity index, commodity price, foreign exchange rate, credit rating of a third party or more complex interest rate calculation. Structured borrowings are borrowings that have similar characteristics as structured notes. All structured notes and certain structured borrowings issued by Nomura are carried at FV-NI through election of the FVO. This blanket election for structured notes and certain structured borrowings are made primarily to mitigate the volatility in the consolidated statements of income caused by differences in the measurement basis for structured notes and the derivatives used to risk manage those positions and to generally simplify the accounting Nomura applies to these financial instruments. Changes in the fair value of structured notes elected for the FVO are reported in the consolidated statements of income within Revenue — Net gain on trading creditworthiness which are reported in the consolidated statements of comprehensive income, net of applicable income taxes within Other comprehensive income (loss) See Note 13 “ Borrowings |
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| Income taxes | Income taxes— Deferred tax assets and liabilities are recognized in the consolidated balance sheets to reflect the expected future tax consequences of operating loss carryforwards, tax credit carryforwards and temporary differences between the carrying amounts for financial reporting purposes and the tax bases of assets and liabilities based upon enacted tax laws and tax rates. Nomura recognizes deferred tax assets to the extent it believes that it is more likely than not that a benefit will be realized. A valuation allowance is established against deferred tax assets for tax benefits available to Nomura that are not deemed more likely than not to be realized. Deferred tax assets and deferred tax liabilities that relate to the same tax-paying component within a particular tax jurisdiction are offset in the consolidated balance sheets. Net deferred tax assets and net deferred tax liabilities are reported in the consolidated balance sheets within Other assets — Other Other liabilities Nomura recognizes and measures unrecognized tax benefits based on Nomura’s estimate of the likelihood, technical merits that tax positions will be sustained upon examination based on the facts and circumstances and information available at the end of each reporting period. Nomura adjusts the level of unrecognized tax benefits when there is more information available, or when an event occurs requiring a change. The reassessment of unrecognized tax benefits could have a material impact on Nomura’s effective tax rate in the period in which it occurs. Nomura reports income tax-related interest and penalties in the consolidated statements of income within Income tax expense See Note 1
7 “In co me taxes |
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| Stock-based and other compensation awards | Stock-based and other compensation awards— Stock-based awards issued by Nomura to senior management and other employees are classified as either equity or liability awards depending on the terms of the award. Stock-based awards such as Stock Acquisition Rights (“SARs”) and Restricted Stock Units (“RSUs”) which are expected to be settled by the delivery of the NHI Shares are classified as equity awards. For these awards, total compensation cost is generally fixed at the grant date and measured using the grant-date fair value of the award, net of any amount the employee is obligated to pay and estimated forfeitures. Stock-based awards such as Notional Stock Units (“NSUs”) and Collared Notional Stock Units (“CSUs”) which are expected to be settled in cash are classified as liability awards. Liability awards are remeasured to fair value at each balance sheet date, net of estimated forfeitures with the final measurement of cumulative compensation cost equal to the settlement amount. For both equity and liability awards, fair value is determined either by using option pricing models, the market price of NHI Shares or the price of the third party index, as appropriate. Other compensation awards include Notional Fund Units (“NFUs”) which are linked to performance of specific Nomura managed funds and are settled in cash. NFUs are remeasured to fair value with reference to the underlying funds’ performance at each balance sheet date, net of estimated forfeitures with the final measurement of cumulative compensation cost equal to the settlement amount. Nomura also issues Deferred Cash Awards (“DCAs”) which are multi-year awards settled in cash if specific service conditions are met. Compensation cost is recognized in the consolidated statements of income over the requisite service period, which generally is equal to the contractual vesting period. Where an award has graded vesting, compensation expense is recognized using the accelerated recognition method. Certain compensation awards include “Full Career Retirement” (“FCR”) provisions which permit recipients of the awards to continue to vest in the awards upon voluntary termination or by claiming FCR during a pre-defined election window if certain criteria based on corporate title and length of service within Nomura are met. The requisite service period for these awards ends on the earlier of the contractual vesting date and the date that the recipients become eligible for or claim FCR. Compensation cost recognized for stock-based and other compensation awards is reported in the consolidated statements of income within Compensation and benefits See Note 16 “ Deferred compensation awards |
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| Earnings per share | Earnings per share— The computation of basic earnings per share is based on the weighted average number of shares outstanding during the year. Diluted earnings per share reflects the assumed conversion of all dilutive securities based on the most advantageous conversion rate or exercise price available to the investors, and assuming conversion of convertible debt under the if-converted method. See Note 1
4 “Earnings per share |
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| Cash and cash equivalents | Cash and cash equivalents— Nomura defines cash and cash equivalents as cash on hand and demand deposits with banks. |
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| Goodwill and intangible assets | Goodwill and intangible assets— Goodwill is recognized upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired. Subsequent to initial recognition, goodwill is not amortized but is tested for impairment at a reporting unit level during the fourth quarter of each fiscal year, or more frequently during earlier interim periods if events or circumstances indicate there may be impairment. Nomura’s reporting units are at the same level as or one level below its business segments. Nomura tests goodwill of each separate reporting unit by initially qualitatively assessing whether events and circumstances indicate that it is more likely than not (i.e., greater than 50% likelihood) that a reporting unit’s fair value is less than its carrying amount. If such assessment indicates fair value is not less than the carrying value, the reporting unit is deemed not to be impaired and no further analysis is required. If it is more likely than not that fair value of the reporting unit is below its carrying value, a quantitative test is then performed. A goodwill impairment loss is recognized through the consolidated statements of income as the excess of the carrying amount of a reporting unit, including goodwill, over its fair value but limited to the total amount of goodwill allocated to the reporting unit. Intangible assets not subject to amortization (“indefinite-lived intangible assets”) are generally tested for impairment on an individual asset basis during the fourth quarter of each fiscal year, or more frequently during earlier interim periods if events or circumstances indicate there may be impairment. Similar to goodwill, Nomura tests an indefinite-lived intangible asset by initially qualitatively assessing whether events or circumstances indicate that it is more likely than not that the fair value of the intangible asset is less than its carrying amount. If such assessment indicates fair value is not less than the carrying value, the intangible asset is deemed not to be impaired and no further analysis is required. If it is more likely than not that the fair value of the intangible asset is below its carrying value, the current estimated fair value of the intangible asset is compared with its carrying value. An impairment loss is recognized if the carrying value of the intangible asset exceeds its estimated fair value. Intangible assets with finite lives (“finite-lived intangible assets”) are amortized over their estimated useful lives and tested for impairment either individually or with other assets (“asset group”) when events and circumstances indicate that the carrying value of the intangible asset (or asset group) may not be recoverable. A finite-lived intangible asset is impaired when its carrying amount or the carrying amount of the asset group exceeds its fair value. An impairment loss is recognized only if the carrying amount of the intangible asset (or asset group) is not recoverable and exceeds its fair value. For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes a new cost basis for the asset which cannot be subsequently reversed. See Note 11 “ Other assets — Office buildings, land, equipment and facilities and Other / Other liabilities” |
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| Employee benefit plans | Employee benefit pl ans — Nomura provides certain eligible employees with various be ne fit plans, including pensions and other post-retirement benefits. These benefit plans are classified as either defined benefit plans or defined contribution plans. Defined benefit plans Plan assets and benefit obligations, as well as the net periodic benefit cost of a defined benefit pension or post-retirement benefit plan, are recognized based on various actuarial assumptions such as discount rates, expected return on plan assets and future compensation levels at the balance sheet date. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the fair value of plan assets and unrecognized prior service costs or credits are amortized to net periodic benefit cost on a straight-line basis over the average remaining service life of active employees expected to receive benefits. The overfunded or underfunded status of a plan is reported within Other assets — Other Other liabilities Compensation and benefits Other Other comprehensive income (loss) Defined contribution plans The net periodic pension and other benefit cost of defined contribution plans is recognized in the consolidated statements of income within Compensation and benefits See Note 15 “ Employee benefit plans |
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| New accounting pronouncements adopted during the current year | New accounting pronouncements adopted during the current year— The following table presents a summary of new accounting pronouncements relevant to Nomura which have been adopted on or after April 1, 2025, the date of adoption by Nomura and whether the new accounting pronouncement has had a material financial impact on these consolidated financial statements on adoption or prospectively since adoption:
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| Future accounting developments | Future accounting developments— The following table presents a summary of new authoritative accounting pronouncements relevant to Nomura which will be adopted on or after April 1, 2026, the expected date of adoption by Nomura and whether the new accounting pronouncement is expected to have a material financial impact on these consolidated financial statements on initial adoption or prospectively after adoption:
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