Impairment Risk Associated with Capital Investment and M&A
First written in FY2020. 6 of 7 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2026.
Nihon Parkerizing moved to the "Worse" side of this theme in 2022, 1 year after 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".
- FY2026MaterialisedAnnual report
「The Group recognized impairment losses on the following asset group: Shizuoka Prefecture: operating assets, including buildings, machinery and equipment, and other assets: ¥805 million」
In connection with the impairment risk associated with business investments and other factors, an impairment loss of ¥805 million was recognized on operating assets in Shizuoka Prefecture. - FY2025MaterialisedAnnual report
「The company recognized business structure improvement expenses for part of a factory operated by a Chinese subsidiary following the decision to close it. The main component was an impairment loss of ¥975 million.」
The company decided to close part of a factory operated by a Chinese subsidiary and recognized business structure improvement expenses of ¥1,159 million, including ¥975 million for buildings, machinery and equipment, and other assets. - FY2024MaterialisedAnnual report
「The Group recognized impairment losses on the following asset group: Iwanuma, Miyagi Prefecture: operating assets, including land, buildings and machinery and equipment: ¥56 million」
In the fiscal year ended March 2024, an impairment loss of ¥56 million was recognized on operating assets in Iwanuma, Miyagi Prefecture, where profit or loss from operating activities had remained negative. - FY2023MaterialisedAnnual report
「The carrying amount of goodwill relating to our subsidiary Deramin US Co., Ltd. was reduced to its recoverable amount because the earnings initially anticipated could no longer be expected due to changes in the operating environment. For buildings relating to our subsidiary Parker Tsuru Tech Mexicana Co., Ltd., the carrying amount was reduced to the recoverable amount for an asset group whose profit or loss from operating activities had remained negative.」
During the fiscal year, impairment losses of ¥209 million on U.S. goodwill and ¥43 million on buildings in Mexico were recognized, for a total of ¥253 million. - FY2022MaterialisedAnnual report
「For operating assets in the United States, value in use is calculated by discounting future cash flows at 11.0%.」
An impairment loss of ¥1,260 million was recognized on operating assets in the United States due to continuing operating losses. - FY2022-Q3MaterialisedAnnual report
「(Material impairment loss on fixed assets) In the Processing Business segment, the company recognized an impairment loss on fixed assets. The impairment loss recognized during the nine-month period ended 31 December of the current fiscal year amounted to ¥1,245 million.」
In connection with the impairment risk associated with capital investment and M&A, an impairment loss of ¥1,245 million was recognized on fixed assets in the Processing Business. However, the text does not indicate a direct causal relationship between this loss and any specific capital investment or M&A transaction. - FY2020First statedAnnual report
「If profits fall substantially below the plan due to an unexpected deterioration in market conditions or other factors, the Group’s financial position and operating results may be adversely affected by impairment losses on tangible fixed assets recognized in connection with capital investments and goodwill recognized in connection with M&A.」
The impairment risk relating to fixed assets and goodwill associated with global capital investment and M&A is described separately for the first time.