Integration failures in acquired businesses and impairment risks for goodwill and intangible assets
First written in FY2016. 18 of 27 entries say "Worsened", first in FY2017. Latest entry: FY2026-H1.
Japan Tobacco moved to the "Worse" side of this theme in 2018, 6 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 38 of 92 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Goodwill 2,923,096 2,986,714」
The carrying amount of goodwill increased from ¥2.923096 trillion at the end of December 2025 to ¥2.986714 trillion at the end of June 2026, expanding the impairment exposure associated with acquisition-related assets in value terms. Translation differences on foreign operations were cited as a main factor behind the increase. - FY2025MaterialisedAnnual report
「Loss on the write-off of goodwill associated with the liquidation of a Sudanese subsidiary, recognized as a one-off loss in the fiscal year」
A loss on the write-off of goodwill of ¥317,463 million associated with the liquidation of a Sudanese subsidiary was recognized, and the impairment and write-off risk relating to acquisition-related assets materialized as an actual loss. - FY2025-H1MaterialisedAnnual report
「Restructuring expenses for the interim accounting period mainly comprised impairment losses associated with the decision to transfer the pharmaceutical business.」
An impairment loss associated with the decision to transfer the pharmaceutical business was actually recognized. Restructuring expenses totaled ¥25.413 billion, of which ¥24.964 billion was an impairment loss. - FY2024WorsenedAnnual report
「As of the end of the fiscal year, goodwill and intangible assets accounted for 34.8% (¥2.9143 trillion) and 5.8% (¥486.5 billion), respectively, of consolidated total assets.」
Goodwill increased from ¥2.6164 trillion in the previous fiscal year to ¥2.9143 trillion due to the acquisition of Vector and other factors, expanding the impairment exposure associated with acquisition-related assets in value terms. - FY2024-H1WorsenedAnnual report
「Goodwill 2,616,440 2,927,306」
The carrying amount of goodwill increased from ¥2.616440 trillion at the end of December 2023 to ¥2.927306 trillion at the end of June 2024. Translation differences on foreign operations were cited as a main factor behind the increase, and impairment exposure increased in value terms. - FY2024-Q1WorsenedAnnual report
「The carrying amount of goodwill was ¥2,616,440 million at 1 January 2024 and ¥2,731,698 million at 31 March 2024.」
The carrying amount of goodwill increased from ¥2.616440 trillion at the end of December 2023 to ¥2.731698 trillion at the end of March 2024, expanding the impairment exposure associated with acquisition-related assets in value terms. - FY2023Increase in goodwill amount, decline in ratioAnnual report
「In connection with acquisitions, our Group has recognized substantial amounts of goodwill and intangible assets on the consolidated statement of financial position. As of the end of the fiscal year, goodwill and intangible assets accounted for 35.9% (¥2.6164 trillion) and 2.8% (¥207.0 billion), respectively, of consolidated total assets.」
Goodwill increased from ¥2.4461 trillion in the previous fiscal year to ¥2.6164 trillion, while its percentage of total assets declined from 37.4% to 35.9%. Exposure to acquisition-related assets increased in value terms. - FY2023-Q3WorsenedAnnual report
「Goodwill 2,446,063 2,708,089」
The carrying amount of goodwill increased from ¥2.446063 trillion at the end of December 2022 to ¥2.708089 trillion at the end of September 2023, expanding the impairment exposure associated with acquisition-related assets. The main factor behind the increase was translation differences on foreign operations. - FY2023-Q2WorsenedAnnual report
「The carrying amount of goodwill was ¥2,446,063 million at 1 January 2023 and ¥2,654,306 million at 30 June 2023.」
The carrying amount of goodwill increased from ¥2.446063 trillion at the end of December 2022 to ¥2.654306 trillion, expanding the impairment exposure associated with acquisition-related assets. Translation differences on foreign operations were cited as the main factor behind the increase. - FY2023-Q1WorsenedAnnual report
「Goodwill 2,446,063 2,480,887」
The carrying amount of goodwill increased from ¥2.446063 trillion at the end of December 2022 to ¥2.480887 trillion at the end of March 2023, expanding the impairment exposure associated with acquisition-related assets. - FY2022WorsenedAnnual report
「In connection with acquisitions, our Group has recognized substantial amounts of goodwill and intangible assets on the consolidated statement of financial position. As of the end of the fiscal year, goodwill and intangible assets accounted for 37.4% (¥2.4461 trillion) and 3.8% (¥246.4 billion), respectively, of consolidated total assets.」
Goodwill increased from 35.7% of total assets, or ¥2.0610 trillion, in the previous fiscal year to 37.4%, or ¥2.4461 trillion, expanding the impairment exposure associated with acquisition-related assets. quantified is true and materialized is false. - FY2022-Q3WorsenedAnnual report
「Goodwill 2,060,965 2,623,292」
The carrying amount of goodwill increased from ¥2.060965 trillion at the end of December 2021 to ¥2.623292 trillion at the end of September 2022, expanding the impairment exposure associated with acquisition-related assets. - FY2022-Q2WorsenedAnnual report
「Goodwill 2,060,965 2,544,202」
The carrying amount of goodwill increased from ¥2.060965 trillion at the end of December 2021 to ¥2.544202 trillion at the end of June 2022. The increase in goodwill due to foreign exchange effects was cited as a factor behind the increase in total assets, and impairment exposure has expanded. - FY2022-Q1WorsenedAnnual report
「Goodwill 2,060,965 2,102,765」
The carrying amount of goodwill increased from ¥2.060965 trillion at the end of December 2021 to ¥2.102765 trillion at the end of March 2022, expanding the impairment exposure associated with acquisition-related assets. - FY2021WorsenedAnnual report
「In connection with acquisitions, our Group has recognized substantial amounts of goodwill and intangible assets on the consolidated statement of financial position. As of the end of the fiscal year, goodwill and intangible assets accounted for 35.7% (¥2.0610 trillion) and 5.3% (¥307.2 billion), respectively, of consolidated total assets.」
Goodwill increased from ¥1.9094 trillion at the end of the previous fiscal year to ¥2.0610 trillion, while its percentage of total assets increased from 35.5% to 35.7%, expanding the exposure associated with acquisition-related assets. - FY2021-Q3WorsenedAnnual report
「Goodwill 1,909,392 2,037,154」
The carrying amount of goodwill increased from ¥1.909392 trillion at the end of December 2020 to ¥2.037154 trillion at the end of September 2021, expanding the impairment exposure associated with acquisition-related assets. Translation differences on foreign operations were identified as a factor behind the increase. - FY2021-Q2WorsenedAnnual report
「Goodwill 1,909,392 2,028,153」
The carrying amount of goodwill increased from ¥1.909392 trillion at the end of December 2020 to ¥2.028153 trillion at the end of June 2021, expanding the impairment exposure associated with acquisition-related assets. Translation differences on foreign operations were identified as a factor behind the increase. - FY2021-Q1WorsenedAnnual report
「Goodwill 1,909,392 1,987,879」
The carrying amount of goodwill increased from ¥1.909392 trillion at the end of the previous fiscal year to ¥1.987879 trillion, expanding the impairment exposure associated with acquisition-related assets. - FY2020MitigatedAnnual report
「In connection with acquisitions, our Group has recognized substantial amounts of goodwill and intangible assets on the consolidated statement of financial position. As of the end of the fiscal year, goodwill and intangible assets accounted for 35.5% (¥1.9094 trillion) and 6.8% (¥363.6 billion), respectively, of consolidated total assets.」
Goodwill as a percentage of total assets declined from 36.1% to 35.5%, while intangible assets declined from 7.9% to 6.8%. - FY2020-Q3Decrease in goodwill balanceAnnual report
「Goodwill 2,002,595 1,871,909」
The carrying amount of goodwill declined from ¥2.002595 trillion at the end of the previous fiscal year to ¥1.871909 trillion. - FY2020-Q2Decline in goodwill and intangible asset balancesAnnual report
「Goodwill 2,002,595 1,907,226」
The carrying amount of goodwill declined from ¥2.002595 trillion at the end of the previous fiscal year to ¥1.907226 trillion, while intangible assets also declined from ¥440.434 billion to ¥396.891 billion. - FY2020-Q1Decline in goodwill and intangible asset balancesAnnual report
「Goodwill 2,002,595 1,887,666」
The carrying amount of goodwill declined from ¥2.002595 trillion at the end of the previous fiscal year to ¥1.887666 trillion. Intangible assets also declined from ¥440.434 billion to ¥410.871 billion. - FY2019MitigatedAnnual report
「In connection with acquisitions, our Group has recognized substantial amounts of goodwill and intangible assets on the consolidated statement of financial position. As of the end of the fiscal year, goodwill and intangible assets accounted for 36.1% (¥2.0026 trillion) and 7.9% (¥440.4 billion), respectively, of consolidated total assets.」
Goodwill as a percentage of total assets declined from 36.8% to 36.1%, while intangible assets declined from 9.2% to 7.9%, reducing the proportion of acquisition-related assets. - FY2018WorsenedAnnual report
「In connection with acquisitions, our Group has recognized substantial amounts of goodwill and intangible assets on the consolidated statement of financial position. As of the end of the fiscal year, goodwill and intangible assets accounted for 36.8% (¥2.0084 trillion) and 9.2% (¥503.1 billion), respectively, of consolidated total assets.」
Goodwill increased from 36.2% of total assets, or ¥1.8912 trillion, in the previous fiscal year to 36.8%, or ¥2.0084 trillion, expanding the impairment exposure associated with acquisition-related assets. - FY2018-Q3WorsenedAnnual report
「Goodwill 156,237 Goodwill reflects the excess earning power generated by the effects of business integration, including the expansion of the business platform.」
Goodwill of ¥156,237 million was recognized in connection with the acquisition of DT, and the goodwill balance increased from ¥1.8912 trillion at the end of the previous fiscal year to ¥1.9358 trillion. Impairment exposure associated with acquisition-related assets has expanded. - FY2017WorsenedAnnual report
「As of the end of the fiscal year, goodwill and intangible assets accounted for 36.2% (¥1.8912 trillion) and 9.2% (¥479.2 billion), respectively, of consolidated total assets. If it is determined that the expected results cannot be achieved due to changes in the business environment or competitive conditions, or if the applicable discount rates rise, an impairment loss may be recognized and adversely affect the performance of our Group.」
Goodwill as a percentage of total assets increased from 33.8% in the previous fiscal year to 36.2%, while its amount increased to ¥1.8912 trillion, expanding the impairment exposure associated with acquisition-related assets. - FY2016First statedAnnual report
「As of the end of the fiscal year, goodwill and intangible assets accounted for 33.8% (¥1.602 trillion) and 8.9% (¥424.0 billion), respectively, of consolidated total assets. If it is determined that the expected results cannot be achieved due to changes in the business environment or competitive conditions, or if the applicable discount rates rise, an impairment loss may be recognized and adversely affect the performance of our Group.」
The risks of inadequate post-acquisition integration, demand, talent management and internal controls, as well as the impairment risk associated with the substantial goodwill and intangible assets relative to total assets, were specified.