Extraordinary Loss from Impairment of Geico S.p.A. Shares and One-Time Goodwill Amortization
First written in FY2019-Q2. 7 of 9 entries say "Mitigated", first in FY2020-Q2. Latest entry: FY2023.
The whole theme swung hardest in 2017: 8 of 23 companies on the "Worse" side.
29 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「A gain on sales of shares in an affiliate of ¥881 million was recognized. Various costs arising from organizational restructuring and other measures in Europe were recognized as business structure improvement expenses, resulting in an extraordinary loss of ¥2,461 million.」
The partial transfer of Geico shares was completed, and a gain on sales of shares in an affiliate of ¥881 million was recognized. At the same time, business structure improvement expenses of ¥2,461 million related to organizational restructuring and other measures in Europe were recognized, resulting in costs associated with the review of the business structure. - FY2023-Q1MitigatedAnnual report
「On 19 April 2022, the Company entered into an agreement to transfer part of its holdings in Geico S.p.A. (hereinafter, “Geico”), and the transfer procedures were completed on 20 April 2022. As a result, Geico and its consolidated subsidiaries, J-CO America Corporation, J-CO Mexico,S.de R.L.de C.V., Geico Brasil Ltda., Geico Paint Shop India Private Limited, Geico Painting System (Suzhou) Co.,Ltd., “Geico Russia” LLC, Geico Taikisha GmbH, Geico Taikisha Controls d.o.o. and Process Solution Partner Rus LLC, were excluded from the scope of consolidation of the Group.」
The reduction of the equity interest related to Geico and its exclusion from the scope of consolidation were completed. In the first quarter, a gain on sales of shares in an affiliate of ¥881 million and business structure improvement expenses of ¥2,461 million were recognized. - FY2022MitigatedAnnual report
「In accordance with the spirit of Japan's Corporate Governance Code and from the perspective of emphasizing capital efficiency, the company decided to reduce its equity interest from 51.0% to 14.5%.」
To address valuation and loss risks related to Geico, the equity interest was reduced to 14.5%, and a policy was announced to exclude Geico from the scope of consolidation from the following consolidated fiscal year. - FY2021MitigatedAnnual report
「Consolidated fiscal year (1 April 2020 to 31 March 2021): No applicable items.」
Compared with the ¥455 million one-time amortization of goodwill related to Geico S.p.A. recognized in the previous year, no such one-time amortization was recognized in FY2021, and no extraordinary loss attributable to this risk was identified. - FY2020MitigatedAnnual report
「Goodwill amortization: 455」
A one-time amortization of ¥455 million in goodwill related to Geico S.p.A. was recognized in the current period, but the amount decreased from the ¥1,859 million one-time amortization recognized in the same period of the previous year. - FY2020-Q3MitigatedAnnual report
「There were no applicable items during the nine months ended 31 December 2019 (1 April 2019 to 31 December 2019).」
It was disclosed that no one-time amortization of goodwill was recognized during the nine months ended the current third quarter, compared with the one-time amortization of goodwill related to Geico S.p.A. recognized in the same period of the previous year. - FY2020-Q2MitigatedAnnual report
「There were no applicable matters during the six months ended 30 September 2019 (from 1 April 2019 to 30 September 2019).」
It was disclosed that no goodwill amortization was recognized during the six months ended the current second quarter, compared with the ¥1,859 million one-time amortization of goodwill related to Geico S.p.A. recognized in the same period of the previous year. - FY2019-Q3RestatedAnnual report
「In the painting systems business, goodwill related to Geico S.p.A. was amortized on a one-time basis and recognized as an extraordinary loss. The decrease in goodwill resulting from this one-time amortization during the nine months ended the current third quarter was ¥1,819 million.」
The one-time amortization of goodwill related to Geico S.p.A. continued to be disclosed as an extraordinary loss, with the amortization amount for the nine months ended the current third quarter shown as ¥1,819 million. - FY2019-Q2MaterialisedAnnual report
「In the standalone financial statements, the shares of Geico S.p.A., an overseas consolidated subsidiary, were impaired. In the consolidated financial statements, the unamortized balance of goodwill related to Geico S.p.A. was therefore amortized on a one-time basis, and ¥1,859 million in goodwill amortization was recognized as an extraordinary loss. As a result, net income attributable to owners of the parent was ¥910 million, down ¥1,377 million year on year.」
Following the impairment of the shares of Geico S.p.A., ¥1,859 million in goodwill related to the company was amortized on a one-time basis, and quarterly net income attributable to owners of the parent declined by ¥1,377 million year on year.