Goodwill and Fixed-Asset Impairment Risk
First written in FY2018. 11 of 16 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2026.
World moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As of 28 February 2026, the Group had ¥61,168 million in goodwill arising from past M&A transactions and other events, including the MBO in April 2006, recorded on its consolidated statement of financial position, as well as other tangible and intangible fixed assets.」
The recording of goodwill in connection with the acquisition of Right-on increased the goodwill balance from ¥57,176 million in the previous fiscal year to ¥61,168 million, expanding the amount subject to impairment risk. - FY2025MaterialisedAnnual report
「The impairment losses recorded for goodwill and intangible assets with indefinite useful lives, based on the results of impairment tests, were as follows.」
During the year, the company recorded goodwill impairment losses of ¥69 million for T&L and ¥125 million for OpenFashion, for a total of ¥194 million. Total impairment losses amounted to ¥1,920 million. - FY2025-Q1MaterialisedAnnual report
「Impairment losses － △ 11 － － △ 11 － △ 11」
During the cumulative first quarter, the company recorded ¥11 million in impairment losses in the digital business, meaning that impairment risk continued to materialize as an actual loss. - FY2024-Q3MaterialisedAnnual report
「Impairment losses － △ 9 － － △ 9 － △ 9」
During the cumulative third quarter, the company recorded ¥9 million in impairment losses in the digital business, meaning that impairment risk continued to materialize as an actual loss. - FY2023MaterialisedAnnual report
「The consolidated fiscal year ended 31 March 2023 (from 1 April 2022 to 31 March 2023)」
Impairment losses occurred again during the year. Goodwill impairment losses of ¥800 million for Fashion Cross and ¥973 million for Original Inc., totaling ¥1,773 million, were recorded. Total impairment losses amounted to ¥2,022 million. - FY2022MaterialisedAnnual report
「During the consolidated fiscal year, in the cash-generating units or groups of cash-generating units to which goodwill other than that of Original Inc., for which impairment losses were recorded, was allocated, recoverable amounts exceeded carrying amounts. The company judged that significant impairment losses were unlikely to occur even if the key assumptions used in the impairment tests changed within a reasonably foreseeable range.」
The company recorded ¥1,000 million in goodwill impairment for Original Inc., bringing total impairment losses for the year to ¥1,886 million. - FY2022-Q3MaterialisedAnnual report
「During the cumulative third quarter, the company recorded impairment losses on fixed assets related to stores and related software following the decision to discontinue the AG by aquagirl and UNBUILT brands.」
Following the decision to discontinue the AG by aquagirl and UNBUILT brands, the company recorded ¥128 million in impairment losses on store fixed assets and related software. - FY2021MaterialisedAnnual report
「The decrease resulted from recording impairment losses on approximately ¥700 million of store-related equipment and approximately ¥6.5 billion of goodwill following the discontinuation of certain brands as part of structural reforms, and disposing of approximately ¥2.5 billion in store-related equipment following the withdrawal from low-profitability stores. Tangible fixed assets, right-of-use assets and intangible assets decreased by approximately ¥3.7 billion, ¥11.6 billion and ¥5.7 billion, respectively.」
Structural reforms resulted in the actual recording of approximately ¥6.5 billion in goodwill impairment and impairment losses and disposal losses on store-related equipment and other assets. Total impairment losses for the fiscal year were ¥8,910 million. - FY2021-Q3MaterialisedAnnual report
「The main factors behind the decrease were the recording of impairment losses on store-related equipment of approximately ¥700 million and goodwill of approximately ¥1.7 billion following the discontinuation of certain brands as part of structural reforms, and the disposal of approximately ¥500 million in store-related equipment following the withdrawal from low-profitability stores. As a result, tangible fixed assets decreased by approximately ¥1.5 billion and intangible assets by approximately ¥1.1 billion.」
Impairment losses and losses on disposal associated with brand discontinuations and the withdrawal from low-profitability stores actually occurred. Structural reform expenses for the cumulative third quarter were ¥5,208 million, including ¥1,738 million in goodwill impairment losses and other items. - FY2021-Q2MaterialisedAnnual report
「The main factors were the recording of impairment losses on store-related equipment of approximately ¥700 million and goodwill of approximately ¥1.7 billion following the discontinuation of certain brands as part of structural reforms, and the disposal of approximately ¥500 million in store-related equipment following the withdrawal from low-profitability stores. As a result, tangible fixed assets decreased by approximately ¥1.5 billion and intangible assets by approximately ¥1.2 billion.」
The discontinuation of brands and withdrawal from low-profitability stores associated with structural reforms resulted in the actual recording of impairment losses, including approximately ¥700 million on store-related equipment and approximately ¥1.7 billion on goodwill. - FY2021-Q1WorsenedAnnual report
「As a result of discontinuing and consolidating certain brands, withdrawing from low-profitability stores and offering voluntary retirement, the company expects to record approximately ¥1.7 billion in goodwill impairment losses, approximately ¥2.1 billion in combined losses on the disposal of fixed assets and contract termination penalties associated with store closures, and approximately ¥400 million in inventory disposal losses as other expenses in the fiscal year ending March 2021.」
The company specified the expected occurrence of goodwill impairment, store closure-related losses and inventory disposal losses associated with structural reforms. - FY2020-Q3MaterialisedAnnual report
「Impairment losses (or reversals) － 660」
During the cumulative third quarter, the company recorded impairment losses of ¥567 million in the brand business and ¥92 million in common operations, for a total of ¥660 million, meaning that impairment risk continued to materialize as actual losses. - FY2020-Q2MaterialisedAnnual report
「Impairment losses (or reversals) △ 485 － － △ 92 △ 577」
During the cumulative second quarter, the company recorded impairment losses of ¥485 million in the brand business and ¥92 million in common operations, for a total of ¥577 million, meaning that impairment risk materialized as an actual loss. - FY2019WorsenedAnnual report
「As of 31 March 2019, the Group had ¥63,399 million in goodwill arising from M&A transactions and other events, including those in April 2006, recorded on its consolidated balance sheet, as well as other tangible and intangible fixed assets.」
The goodwill balance increased from ¥62,863 million in the previous fiscal year to ¥63,399 million. The company also indicated the possibility of impairment if the pre-tax discount rate increased by 6.1% or future cash flows decreased by 38.3%. - FY2019-Q2WorsenedAnnual report
「As of 30 September 2018, the Group had ¥62,863 million in goodwill arising from past M&A transactions, including the MBO in April 2006, recorded on its consolidated balance sheet, as well as other tangible and intangible fixed assets.」
The goodwill balance was updated from ¥55,662 million to ¥62,863 million, increasing the balance subject to impairment risk. - FY2018First statedAnnual report
「If the value of fixed assets held by the Company, including goodwill of ¥55,662 million at the end of the current consolidated fiscal year and shares in subsidiaries, changes substantially below expectations, impairment may be required, with the difference between carrying value and actual value recognized as a loss.」
Quantifies the goodwill balance and identifies impairment risk. During the year, an impairment loss of ¥1,279 million was recognized mainly on store assets in the investment business segment.