Discontinued Operations

26. Discontinued Operations

On April 27, 2026, the Company entered into a share transfer agreement with Daiwa Next Bank, Ltd. to sell all shares in ORIX Bank , a former consolidated subsidiary of the Company. Pursuant to this agreement, the sale of the shares was completed on August 3, 2026. As a result, starting from the second quarter of the current fiscal year, ORIX Bank was excluded from the Company’s scope of consolidation.

As a result of the decision to sell the shares, in accordance with ASC 205-20 (“Presentation of Financial Statements—Discontinued Operations”), the business of ORIX Bank has been classified as held for sale and a discontinued operation.

Accordingly, in the condensed consolidated balance sheets, the prior-period balances of the assets and liabilities related to the business of ORIX Bank have been retrospectively reclassified and presented separately as “Assets of Discontinued Operations Held for Sale” and “Liabilities of Discontinued Operations Held for Sale,” respectively. Furthermore, in the condensed consolidated statements of income, the results of operations of ORIX Bank are presented separately from continuing operations as “discontinued operations.” The prior-period results of operations related to the business of ORIX Bank have also been retrospectively reclassified to conform to the current-period presentation. In addition, in the condensed consolidated statements of cash flows, the cash flows related to the business of ORIX Bank are presented separately from continuing operations as “discontinued operations.” The prior-period cash flows related to the business of ORIX Bank have also been retrospectively reclassified to conform to the current-period presentation. In addition, cash proceeds from the sale of ORIX Bank shares, net of cash held by ORIX Bank at the date of sale, are included in “Net cash used in investing activities (Discontinued Operations).”

The Company recognized a gain on the sale of the shares during the six months ended September 30, 2026. For further information, see Note 4 “Acquisitions and Divestitures.”

The following table presents the classes of assets and liabilities of discontinued operations classified as held for sale as of March 31, 2026 and September 30, 2026.

Cash and Cash Equivalents

Allowance for Credit Losses

Investment in Operating Leases

Investment in Securities

Equity method investments

Trade Notes, Accounts and Other Receivable

Total Assets of Discontinued Operations Held for Sale

Trade Notes, Accounts and Other Payable

Current and Deferred Income Taxes

Total Liabilities of Discontinued Operations Held for Sale

The following table presents the classes of net income from discontinued operations for the six months ended September 30, 2025 and 2026.

Gains (Losses) on investment securities and dividends

Other (income) and expense

Selling, general and administrative expenses

Provision for credit losses

Write-downs of long-lived assets

Equity in Net Income (Loss) of Equity method investments

Gains on Sales of Subsidiaries and Equity method investments and Liquidation Losses, net

Income from Discontinued Operations before Income Taxes

Provision for Income Taxes

Net Income from Discontinued Operations