Impairment Risk for Goodwill, Intangible Assets, and Other Assets
First written in FY2016. 9 of 24 entries say "Restated". Latest entry: FY2026.
Nippon Sheet Glass moved to the "Worse" side of this theme in 2024, 3 years 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
「This is an impairment loss on goodwill related to the North American automotive glass business, which was generated by the 2006 acquisition of Pilkington and operates in North America.」
The Group impaired ¥3.422 billion of goodwill in the North American automotive glass business. It also disclosed sensitivity showing that an additional impairment loss of ¥6.530 billion would arise if the discount rate increased by 1%. - FY2025MaterialisedAnnual report
「During the consolidated fiscal year, the Group recognized an impairment loss of ¥1.4 billion on goodwill related to the cash-generating unit (CGU) for the building glass business in other regions, which operates mainly in South America. As a result, the Group has impaired the entire goodwill balance related to the CGU for the building glass business in other regions created by the June 2006 acquisition of Pilkington.」
The Group recognized a ¥1.4 billion impairment loss on goodwill in the building glass business in other regions, which is focused on South America, and impaired the entire goodwill balance of the CGU. - FY2025-H1ReframedAnnual report
「As a result, the Group concluded that the solar panel glass business could be identified as a separate cash-generating unit because it generates sufficient independent cash flows. Accordingly, the cash flows and related assets, including goodwill and other intangible assets, of the solar panel glass business, which had previously been included in the cash-generating units for the European and North American building glass businesses, will be identified as a separate cash-generating unit for the solar panel glass business.」
The CGU classification used to assess impairment of goodwill and intangible assets was reviewed, and the solar panel glass business was identified as a separate CGU from the European and North American building glass businesses. - FY2024WorsenedAnnual report
「Assuming all other conditions remain unchanged, if the discount rate applied to this CGU were to rise by 0.06% to 17.56%, impairment headroom would be reduced to zero.」
For the remaining goodwill, sensitivity analysis disclosed that impairment headroom in the building glass business in other regions would be reduced to zero by a 0.06% increase in the discount rate. For automotive glass in North America, headroom would be reduced to zero by a 0.20% increase. - FY2023-Q3RestatedAnnual report
「Among the risks related to the analysis of business and other risks disclosed in the annual securities report for the previous fiscal year, the Group recognizes an increased risk of impairment losses arising from higher discount rates in relation to the risk concerning the valuation and impairment of assets recognized on the balance sheet. During the second quarter consolidated accounting period, the Group recognized an impairment loss on the entire ¥48.8 billion balance of goodwill and intangible assets related to the European automotive glass business acquired through the 2006 acquisition of Pilkington.」
The impairment of the entire ¥48.8 billion of goodwill and intangible assets in the European automotive glass business recognized in the second quarter was reconfirmed in the third quarter, together with the heightened risk from an increase in the discount rate. - FY2023-Q2MaterialisedAnnual report
「During the second quarter accounting period, the Group recognized an impairment loss on the entire ¥48.8 billion balance of goodwill and intangible assets related to the European automotive glass business acquired through the 2006 acquisition of Pilkington.」
An impairment loss was recognized on the entire ¥48.8 billion balance of goodwill and intangible assets in the European automotive glass business. The main cause was a substantial increase in the discount rate used in the impairment test, from 6.92% to 8.8%. - FY2022WorsenedAnnual report
「Assuming all other conditions remain unchanged, if the discount rate applied to this CGU were to increase by 0.08% to 7.00%, headroom before impairment would fall to zero. If the discount rate were to increase by a further 1%, an impairment loss of ¥17,200 million would arise.」
For the European automotive glass CGU, impairment headroom would be reduced to zero by a 0.08% increase in the discount rate alone, and the impairment loss from a further 1% increase was specified as ¥17.2 billion. - FY2022-Q3WorsenedAnnual report
「During the first 3 quarters of the current fiscal year, conditions were challenging, with soaring input costs and weak orders from automakers due to supply chain impacts, while consumer demand in the markets affected by our Group remained strong.」
Soaring input costs and weak orders from automakers due to supply chain impacts emerged as challenging conditions relevant to the valuation of goodwill and intangible assets. Meanwhile, the company explained that consumer demand remained strong. - FY2022-Q2RestatedAnnual report
「The Group considers its analysis of business and other risks disclosed in the annual securities report for the previous fiscal year to remain valid during the second quarter of the current consolidated cumulative period. There were no material changes to the business and other risks described in the annual securities report for the previous fiscal year during the second quarter of the current consolidated cumulative period.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2021MitigatedAnnual report
「In the previous fiscal year, the calculated risk-adjusted value in use of the CGUs for the automotive glass business in Europe and other regions fell below the carrying amounts of those CGUs, resulting in the goodwill impairment described in the table above.」
No goodwill impairment loss was recognised in the current fiscal year for the automotive glass business, following the goodwill impairment incurred in the previous fiscal year. - FY2021-Q1RestatedAnnual report
「There were no material changes to the business and other risks described in the annual securities report for the previous fiscal year during the first quarter of the current consolidated cumulative period.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2020-Q3WorsenedAnnual report
「Our Group recognised that deteriorating conditions in some major markets and the resulting decline in profitability during the third quarter constituted potential indicators of impairment of goodwill on the consolidated balance sheet, and performed impairment testing. Based on the results, the Group determined that no impairment was required as of the end of the third quarter. The Group will continue to monitor the situation during the fourth quarter and plans to perform detailed impairment testing at the fiscal year-end in accordance with IFRS, taking into account the latest outlook for the Group's medium-term profitability and cash flows, as well as changes in market conditions and discount rates.」
Deteriorating conditions in major markets and lower profitability were recognised as indicators of goodwill impairment, and impairment testing was performed. No impairment was deemed necessary as of the end of the third quarter, but monitoring will continue during the fourth quarter, with detailed testing planned at the fiscal year-end. - FY2019Expansion of Impairment Sensitivity CoverageAnnual report
「For the remaining amount allocated to other regions of the automotive glass business, the headroom before impairment is assumed to be zero if the discount rate increases by 0.85%. Europe in the building glass business is also a cash-generating unit for which reasonably foreseeable changes in the discount rate could eliminate headroom before impairment.」
In addition to other regions of the automotive glass business, the company disclosed sensitivity showing that headroom before impairment would fall to zero following a certain increase in the discount rate for Europe in the building glass business and North America in the automotive glass business. - FY2018WorsenedAnnual report
「For the remaining amount allocated to other regions of the automotive glass business, the headroom before impairment is assumed to be zero if the discount rate increases by 0.25%. North America in the automotive glass business is also a cash-generating unit for which reasonably foreseeable changes in the discount rate could eliminate headroom before impairment.」
For other regions, the discount rate increase that would reduce headroom before impairment to zero declined from 0.53% in the previous fiscal year to 0.25%, while sensitivity was also disclosed indicating that headroom in North America would fall to zero with a 0.50% increase. - FY2018-Q3RestatedAnnual report
「There were no material changes to the business and other risks described in the securities report for the previous fiscal year during the cumulative third quarter of the current fiscal year.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2018-Q2RestatedAnnual report
「There were no material changes to the business and other risks described in the securities report for the previous fiscal year during the cumulative second quarter of the current fiscal year.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2018-Q1RestatedAnnual report
「There were no material changes to the business and other risks described in the annual securities report for the previous fiscal year during the first quarter of the current consolidated cumulative period.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2017WorsenedAnnual report
「For the remaining amount allocated to other regions of the automotive glass business, the headroom before impairment is assumed to be zero if the discount rate increases by 0.53%.」
For other regions of the automotive glass business, the company newly specified the sensitivity under which headroom before impairment would fall to zero if the discount rate increased by 0.53%. - FY2017-Q3RestatedAnnual report
「There were no material changes to the business and other risks described in the securities report for the previous fiscal year during the cumulative third quarter of the current fiscal year.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2017-Q2RestatedAnnual report
「There were no material changes to the business and other risks described in the securities report for the previous fiscal year during the cumulative second quarter of the current fiscal year.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2017-Q1RestatedAnnual report
「There were no material changes to the business and other risks described in the annual securities report for the previous fiscal year during the first quarter of the current consolidated cumulative period.」
The company stated that there were no significant changes in the impairment risk related to goodwill, intangible assets and other assets. - FY2016First statedAnnual report
「During the fiscal year, our Group recognised an impairment loss on goodwill allocated to the cash-generating unit for the automotive glass business in other regions.」
Goodwill impairment actually occurred in response to declining passenger car sales in South America and other factors, and the company also disclosed the possibility of further impairment in the future.