Risk of impairment losses due to declines in asset values and deteriorating profitability
First written in FY2018. 6 of 11 entries say "Mitigated", first in FY2020. Latest entry: FY2024.
T.Hasegawa moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「Goodwill and customer-related assets include goodwill of ¥9,809 million and customer-related assets of ¥10,349 million recorded by the consolidated subsidiary T. HASEGAWA U.S.A., INC. These arose mainly from goodwill of ¥4,811 million and customer-related assets of ¥7,869 million generated by its acquisition of all shares of MISSION FLAVORS & FRAGRANCES, INC. in December 2020, and goodwill of ¥4,997 million generated by its acquisition of all shares of ABELEI, INC. in September 2024.」
The acquisition of ABELEI increased U.S. goodwill by ¥4,997 million, expanding the assets subject to impairment risk related to the U.S. business. At the end of the period, however, the company determined that there were no indications of impairment. - FY2024-Q2MitigatedAnnual report
「Compared with the end of the previous consolidated fiscal year, buildings and structures increased by ¥944 million, while other tangible fixed assets, goodwill and customer-related assets included in other intangible fixed assets decreased by ¥631 million, ¥420 million and ¥218 million, respectively, due to ongoing amortization. Mainly as a result, fixed assets decreased by ¥382 million from the end of the previous consolidated fiscal year to ¥68,078 million.」
Due to ongoing amortization, goodwill decreased by ¥420 million and customer-related assets by ¥218 million, reducing the balance of assets subject to impairment risk. - FY2024-Q1MitigatedAnnual report
「Compared with the end of the previous consolidated fiscal year, tangible fixed assets, goodwill, customer-related assets included in other intangible fixed assets and investment securities decreased by ¥624 million, ¥541 million, ¥767 million and ¥468 million, respectively. Mainly as a result, fixed assets decreased by ¥2,411 million from the end of the previous consolidated fiscal year to ¥66,048 million.」
Goodwill and customer-related assets decreased by ¥541 million and ¥767 million, respectively, from the end of the previous consolidated fiscal year, reducing the balance of assets subject to impairment risk. - FY2023WorsenedAnnual report
「As the Group determined that there were indications of impairment during the consolidated fiscal year, it performed an impairment test and determined that recognition of an impairment loss was unnecessary.」
Indications of impairment were identified for goodwill of ¥5,849 million and customer-related assets of ¥11,557 million arising from the acquisition of MISSION, and impairment testing was performed. Although no loss was recognized, the company states that impairment remains possible if future plans or market conditions are revised. - FY2023-Q3MitigatedAnnual report
「Compared with the end of the previous consolidated fiscal year, fixed assets decreased by ¥1,672 million to ¥65,890 million, mainly because buildings and structures and goodwill decreased by ¥876 million and ¥704 million, respectively, due to ongoing amortization.」
Due to ongoing amortization, goodwill decreased by ¥704 million, reducing the balance of assets subject to impairment risk. - FY2023-Q2MitigatedAnnual report
「Compared with the end of the previous consolidated fiscal year, investment securities increased by ¥196 million, while tangible fixed assets, goodwill and customer-related assets included in other intangible fixed assets decreased by ¥1,464 million, ¥953 million and ¥1,242 million, respectively, due to ongoing amortization. Mainly as a result, fixed assets decreased by ¥3,339 million from the end of the previous consolidated fiscal year to ¥64,224 million.」
Due to ongoing amortization, goodwill decreased by ¥953 million and customer-related assets by ¥1,242 million, reducing the balance of assets subject to impairment risk. - FY2023-Q1MitigatedAnnual report
「Compared with the end of the previous consolidated fiscal year, investment securities increased by ¥462 million, while tangible fixed assets, goodwill and customer-related assets included in other intangible fixed assets decreased by ¥1,430 million, ¥771 million and ¥1,151 million, respectively, due to ongoing amortization.」
Due to ongoing amortization, goodwill decreased by ¥771 million and customer-related assets by ¥1,151 million, reducing the exposure to impairment risk associated with these assets. - FY2022WorsenedAnnual report
「Goodwill and customer-related assets include goodwill of ¥6,443 million and customer-related assets of ¥11,877 million recorded by the consolidated subsidiary T.HASEGAWA U.S.A.,INC., arising mainly from its acquisition of all shares of MISSION FLAVORS & FRAGRANCES, INC. in December 2020.」
The company recorded goodwill of ¥6,443 million and customer-related assets of ¥11,877 million related to the acquisition of MISSION, specifying its exposure to impairment risk. - FY2021WorsenedAnnual report
「If the assumptions used in these estimates require substantial revision due to a significant downturn in the economic environment, a major change in market conditions or other factors, the Group may recognize impairment losses from the following consolidated fiscal year onward.」
In addition to general fixed-asset impairment risk, the company specifically describes the possibility of impairment of goodwill of ¥5,583 million and customer-related assets of ¥7,310 million arising from the acquisition of MISSION, due to changes in future plans or market conditions. - FY2020MitigatedAnnual report
「The profitability of the fixed assets held by the Group is evaluated as appropriate, and based on those evaluations, the Group considers whether to continue holding them and develops plans for their utilization. The Group also makes capital investments to ensure the stable maintenance and management of its fixed assets and works to enhance their asset value.」
In response to the risk of impairment losses, the company has identified profitability assessments of fixed assets, consideration of whether to continue holding and how to utilize them, and maintenance and management investments as its response measures. - FY2018First statedAnnual report
「If the fair value of the Group's assets declines significantly or the profitability of its businesses deteriorates, the application of impairment accounting may result in impairment losses on fixed assets, which could affect the Group's financial results.」
The company has newly identified the possibility of impairment of fixed assets due to declining asset values or deteriorating business profitability as a risk.