Impairment Risk in Fixed Assets and Goodwill Becomes Apparent
First written in FY2016. 14 of 28 entries say "Restated". Latest entry: FY2025.
Ajinomoto Co. moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
67 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「The Group recognized impairment losses of ¥3,736 million and ¥33,854 million in the previous consolidated fiscal year and the current consolidated fiscal year, respectively.」
The impairment loss increased from ¥3,736 million in the previous fiscal year to ¥33,854 million, including an impairment of ¥29,840 million on Altair goodwill and property, plant and equipment. - FY2025-H1RestatedAnnual report
「No new business or other risks arose during the six months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes relating to impairment risk for property, plant and equipment and goodwill. - FY2024WorsenedAnnual report
「The recoverable amount exceeded the carrying amount by ¥14,413 million for the current consolidated fiscal year. If the discount rate were to rise by 1.0%, an impairment loss could arise.」
The acquisition of Forge resulted in recognition of ¥45,990 million in goodwill for the gene therapy CDMO business, and the disclosed sensitivity indicated that an impairment loss could arise if the discount rate rose by 1.0%. - FY2024-Q2RestatedAnnual report
「No new business or other risks arose during the cumulative second-quarter period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes relating to impairment risk for property, plant and equipment and goodwill. - FY2024-Q1RestatedAnnual report
「There were no newly arising business or other risks during the first quarter of the current consolidated cumulative period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes relating to impairment risk for property, plant and equipment and goodwill. - FY2023MaterialisedAnnual report
「Due to a substantial increase in the discount rate accompanying the rise in US long-term interest rates, together with current conditions in the US economy, the recoverable amount of goodwill at Ajinomoto Foods North America declined. The carrying amount of the goodwill was therefore written down to its recoverable amount, and the resulting decrease of ¥13,467 million was recognized as an impairment loss in other operating expenses.」
Impairment risk for property, plant and equipment and goodwill materialized during the full fiscal year as a ¥13,467 million impairment loss on goodwill at Ajinomoto Foods North America. - FY2023-Q3MaterialisedAnnual report
「Impairment losses and reversals of impairment losses 491 419」
The consolidated cash flow statement for the cumulative third quarter records ¥419 million in impairment losses and reversals of impairment losses. - FY2022MaterialisedAnnual report
「The Group recognized impairment losses of ¥18,536 million and ¥9,357 million in the previous consolidated fiscal year and the current consolidated fiscal year, respectively.」
The impairment loss decreased from ¥18,536 million in the previous fiscal year to ¥9,357 million, but new impairment losses occurred, including ¥4,461 million on MTG goodwill and intangible assets and ¥2,411 million on the Osaka frozen foods plant. - FY2022-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third-quarter period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes relating to impairment risk for property, plant and equipment and goodwill. - FY2022-Q2RestatedAnnual report
「No new business or other risks arose during the cumulative second-quarter period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes relating to impairment risk for property, plant and equipment and goodwill. - FY2021MaterialisedAnnual report
「The Group recognized impairment losses of ¥30,728 million and ¥18,536 million in the previous consolidated fiscal year and the current consolidated fiscal year, respectively.」
The impairment loss decreased from ¥30,728 million in the previous fiscal year to ¥18,536 million, but a total of ¥15,735 million in impairments occurred on European and North American animal nutrition equipment, indicating that impairment risk continued to materialize as actual losses. - FY2021-Q3RestatedAnnual report
「Cumulative third quarter of the current consolidated fiscal year (1 April 2020 to 31 December 2020) No material impairment losses were recognized.」
No material impairment losses were recognized during the cumulative third quarter, and the disclosure stated that there were no new impairments of property, plant and equipment or goodwill that had materialized in the previous fiscal year. - FY2021-Q2RestatedAnnual report
「No new business or other risks arose during the cumulative second-quarter period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes relating to impairment risk for property, plant and equipment and goodwill. It also states that no material impairment losses were recognized during the cumulative second quarter of the current consolidated fiscal year. - FY2020MaterialisedAnnual report
「The Group recognized impairment losses of ¥18,241 million and ¥30,728 million in the previous consolidated fiscal year and the current consolidated fiscal year, respectively.」
The impairment loss increased from ¥18,241 million in the previous fiscal year to ¥30,728 million in the current fiscal year. Deteriorating profitability at European animal nutrition, European seasoning, bakery, and AIS businesses, among others, materialized as actual losses. - FY2020-Q3MaterialisedAnnual report
「(1) Animal nutrition business For manufacturing equipment used in the European animal nutrition business in the Life Support segment, profitability had deteriorated due to lower demand resulting from the global spread of African swine fever and the resulting decline in selling prices. As an early recovery of the business was expected to be difficult, the carrying amount was written down to its recoverable amount of ¥5,769 million, measured using value in use, and an impairment loss of ¥14,958 million was recognized in other operating expenses. (2) Bakery business For manufacturing equipment used in the bakery business in the Japan Food Products segment, profitability had deteriorated due to intensifying competition with competitors and other factors. As an early recovery of the business was expected to be difficult, the carrying amount was written down to its recoverable amount of ¥— million, measured using value in use, and an impairment loss of ¥3,835 million was recognized in other operating expenses. (3) European seasoning business For seasoning manufacturing equipment in Europe in the Overseas Food Products segment, profitability had deteriorated due to intensifying competition with competitors. As an early recovery of the business was expected to be difficult, the carrying amount was written down to its recoverable amount of ¥— million, measured using value in use, and an impairment loss of ¥6,899 million was recognized in other operating expenses.」
Impairment losses of ¥14,958 million on European animal nutrition equipment, ¥3,835 million on bakery business equipment, and ¥6,899 million on European seasoning manufacturing equipment were recognized, with deteriorating profitability due to lower demand and intensifying competition materializing as actual losses. - FY2020-Q2MaterialisedAnnual report
「For manufacturing equipment used in the European animal nutrition business in the Life Support segment, profitability had deteriorated due to lower demand resulting from the global spread of African swine fever and the resulting decline in selling prices. As an early recovery of the business was expected to be difficult, the carrying amount was written down to its recoverable amount of ¥5,769 million, measured using value in use, and an impairment loss of ¥14,958 million was recognized in other operating expenses. For manufacturing equipment used in the bakery business in the Japan Food Products segment, profitability had deteriorated due to intensifying competition with competitors and other factors. As an early recovery of the business was expected to be difficult, the carrying amount was written down to its recoverable amount of ¥— million, measured using value in use, and an impairment loss of ¥3,835 million was recognized in other operating expenses.」
Impairment losses of ¥14,958 million on European animal nutrition equipment and ¥3,835 million on bakery business equipment were recognized, with deteriorating profitability due to lower demand and intensifying competition materializing as actual losses. - FY2020-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first-quarter period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes relating to impairment risk for property, plant and equipment and goodwill. - FY2019MaterialisedAnnual report
「The Group recognized impairment losses of ¥11,681 million and ¥18,241 million in the previous consolidated fiscal year and the current consolidated fiscal year, respectively.」
The impairment loss increased from ¥11,681 million in the previous fiscal year to ¥18,241 million, with impairments materializing in Overseas Food Products, including ¥13,525 million on AFNA goodwill and ¥3,843 million on AIS goodwill. - FY2019-Q3MaterialisedAnnual report
「For goodwill relating to Ajinomoto Foods North America in the Overseas Food Products segment, current profitability had deteriorated and diverged from the plan at the time of acquisition. The carrying amount was therefore written down to the recoverable amount, measured at fair value less costs of disposal, and an impairment loss of ¥13,525 million was recognized in other operating expenses. For the equity-method investment in Promasidor Holdings (PH), also in the Overseas Food Products segment, competition had intensified in the major countries where PH operates, in addition to changes in the business environment, resulting in lower profitability at its subsidiaries. The investment was therefore written down to its recoverable amount, measured at fair value less costs of disposal. Accordingly, an impairment loss of ¥13,604 million on the equity-method investment in PH was recognized in other operating expenses.」
Impairment losses of ¥13,525 million were recognized on goodwill at the US company AFNA and ¥13,604 million on the equity-method investment in PH. In addition, an impairment loss of ¥3,222 million arose on PH trademarks, indicating that impairment risk had materialized as actual losses. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes during the quarter relating to impairment risk for property, plant and equipment and goodwill. - FY2018MaterialisedAnnual report
「The Group recognized impairment losses of ¥1,965 million and ¥11,681 million in the previous consolidated fiscal year and the current consolidated fiscal year, respectively.」
The impairment loss increased from ¥1,965 million in the previous fiscal year to ¥11,681 million, including ¥7,450 million for the animal nutrition business as a whole and ¥2,664 million for Thailand seasoning manufacturing equipment, among others. - FY2018-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes during the quarter relating to impairment risk for property, plant and equipment and goodwill. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The disclosure states that there were no new occurrences or material changes during the quarter relating to impairment risk for property, plant and equipment and goodwill. - FY2017MaterialisedAnnual report
「The carrying amount of manufacturing equipment for the animal nutrition business in Brazil, which belongs to the Life Support segment, was written down to its recoverable amount, and an impairment loss of ¥1,626 million was recognized.」
The Brazil animal nutrition equipment incurred a full-year impairment loss due to oversupply of lysine for feed, intensifying competition, and lower selling prices. - FY2017-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended [the current third quarter]. There have also been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company stated that there had been no material changes regarding the impairment risk associated with fixed assets and goodwill. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company stated that there had been no material changes regarding the impairment risk associated with fixed assets and goodwill. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The disclosure states that there were no material changes in overall risks relating to impairment of property, plant and equipment and goodwill. - FY2016First statedAnnual report
「These assets may require impairment charges if their profitability declines, for example because of a fall in fair value or a failure to generate cash flows as expected, making recovery of the investment unlikely. If an impairment loss is recognized, it may adversely affect the financial position and results of operations of the Group.」
The Group recognized an impairment loss of ¥7,467 million for the fiscal year, reflecting deteriorating profitability at the Thailand animal nutrition business and Chinese seasoning facilities, among others.