Declining profitability and impairment following the Central Conveyor acquisition
First written in FY2019. 4 of 5 entries say "Materialised", first in FY2019. Latest entry: FY2026.
Tsubakimoto Chain Co. moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2019: 22 of 50 companies on the "Worse" side.
53 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「The trademark rights and customer-related assets recognized upon the acquisition of Central Conveyor Company, LLC, a consolidated US subsidiary, had underperformed the earnings plans initially anticipated due to changes in the market structure and other factors, so the future plans were reviewed.」
The decline in profitability following the Central Conveyor acquisition became apparent again, and impairment losses of ¥791 million on trademark rights and ¥3,423 million on customer-related assets, totaling ¥4,214 million, were recognized. - FY2025MitigatedAnnual report
「Because the total amount of undiscounted future cash flows exceeds the carrying amount during the current consolidated fiscal year, we have determined that recognition of an impairment loss is not required.」
Although ¥3,940 million of customer-related assets associated with the Central Conveyor acquisition remain, future cash flows exceed their carrying amount, and no impairment loss was recognized in the current fiscal year. - FY2023MaterialisedAnnual report
「Because the fair values of the goodwill and trademark rights fell below their carrying amounts, the carrying amounts of the goodwill and trademark rights arising from the acquisition were reduced to their fair values, and the decrease was recognized as an impairment loss under extraordinary losses. Amounts: goodwill ¥2,426 million; trademark rights ¥338 million; total ¥2,765 million.」
Due to declining profitability following the Central Conveyor acquisition, additional impairment losses totaling ¥2,765 million on goodwill and trademark rights were incurred in FY2023. - FY2020MaterialisedAnnual report
「Goodwill ¥364 million; trademark rights ¥54 million; total ¥419 million」
In addition to the failure to meet the initial plan and changes in the market structure following the Central Conveyor acquisition, the deterioration in the US business environment caused by the spread of COVID-19 and other factors resulted in actual additional impairment losses of ¥419 million in FY2020. - FY2019MaterialisedAnnual report
「The goodwill and trademark rights recognized upon the acquisition of Central Conveyor Company, LLC, a consolidated US subsidiary, had underperformed the earnings plans initially anticipated due to changes in the market structure and other factors, so the future plans were reviewed. As a result, because the estimated fair values of the goodwill and trademark rights fell below their carrying amounts, the carrying amounts of the goodwill and trademark rights arising from the acquisition were reduced to their recoverable amounts, and the decrease was recognized as an impairment loss under extraordinary losses. Impairment losses: goodwill ¥1,924 million; trademark rights ¥199 million; total ¥2,123 million.」
Following the Central Conveyor acquisition, performance fell below the initial earnings plan due to changes in the market structure and other factors, resulting in actual impairment losses of ¥2,123 million on goodwill and trademark rights.