Impairment Risk for Goodwill and Customer Relationship Assets Associated with Acquisitions
First written in FY2020. 7 of 13 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2026.
Glory moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
54 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In the current consolidated fiscal year, goodwill and customer-related assets arising from business acquisitions accounted for 17.4% (¥78,656 million) and 7.0% (¥31,771 million), respectively, of consolidated total assets. If the expected results cannot be achieved due to changes in the business environment or other factors, an impairment loss may arise and affect performance.」
Acquisition-related goodwill increased to ¥78.656 billion, and an impairment loss of ¥552 million was recognized on goodwill related to Showcase Gig. Acquisition-related impairment risk has materialized again in the current fiscal year. - 2026-05-15WorsenedEarnings
「Impairment loss △68 △552」
Impairment losses increased from ¥68 million in the previous fiscal year to ¥552 million, expanding the actual impact of impairment risks, including those related to acquisition assets. - FY2025MitigatedAnnual report
「As of the end of the fiscal year ended March 2025, goodwill and customer-related assets arising from business acquisitions accounted for 15.0% (¥66,031 million) and 7.4% (¥32,877 million), respectively, of consolidated total assets. If the expected results cannot be achieved due to changes in the business environment or other factors, an impairment loss may arise and affect performance.」
Acquisition-related assets remain a significant risk exposure, but goodwill decreased from ¥71,536 million in the previous fiscal year to ¥66,031 million, while the impairment loss for the current fiscal year was ¥68 million. - FY2023MaterialisedAnnual report
「With respect to the goodwill generated on the acquisition of Acrelec Group S.A.S., the carrying amount was reduced to its recoverable amount because the earnings originally projected could no longer be expected following a review of the business plan due to changes in the business environment, and the reduction was recognized as an impairment loss.」
An impairment loss of ¥1.458 billion was recognized on goodwill related to Acrelec because the originally projected earnings could no longer be expected. Acquisition-related impairment risk has materialized again in the current fiscal year. - FY2023-Q3MaterialisedAnnual report
「With respect to the goodwill related to Acrelec Group S.A.S., expected earnings could no longer be generated following a review of the business plan due to changes in the business environment. Accordingly, the carrying amount was reduced to its recoverable amount, and the reduction was recognized as an impairment loss.」
An impairment loss of ¥1.469 billion was recognized on goodwill related to Acrelec because the originally projected earnings could no longer be expected. Acquisition-related impairment risk has again materialized. - FY2023-Q2WorsenedAnnual report
「Total assets increased by ¥13,097 million from the end of the previous consolidated fiscal year to ¥375,925 million. The main factors were decreases of ¥13,540 million in cash and deposits and ¥7,306 million in notes and accounts receivable and contract assets, offset by increases of ¥24,347 million in inventories, ¥5,758 million in goodwill and ¥2,790 million in customer-related assets.」
Goodwill increased by ¥5.758 billion from the end of the previous consolidated fiscal year, expanding exposure to impairment risk associated with acquisitions. - FY2023-Q1WorsenedAnnual report
「The main factors were decreases of ¥4,263 million in cash and deposits and ¥7,621 million in notes and accounts receivable, accounts receivable, and contract assets, and increases of ¥16,384 million in inventories and ¥6,811 million in goodwill.」
Goodwill increased by ¥6.811 billion from the end of the previous consolidated fiscal year, expanding exposure to impairment risk associated with acquisitions and other transactions. No impairment loss itself is reported. - FY2022-Q3WorsenedAnnual report
「In the overseas markets, the company acquired an interest in Revolution Retail Systems, LLC and included the company in the scope of consolidation from the third quarter of the consolidated accounting period. Goodwill increased by ¥17,709 million as a result of this transaction during the nine-month period ended the third quarter. The amount of goodwill was calculated provisionally because the purchase price allocation has not been completed.」
Goodwill increased by ¥17.709 billion in connection with the acquisition of Revolution Retail Systems, LLC, expanding exposure to impairment risk associated with the acquisition. No impairment loss itself is disclosed. - FY2021MaterialisedAnnual report
「Regarding the goodwill associated with Acrelec Group S.A.S., a review of the business plan in light of the spread of COVID-19 and other factors indicated that the business development initially expected would be delayed and that the generation of earnings would likewise be deferred. Accordingly, the carrying amount was reduced to its recoverable amount, and the decrease was recorded as an impairment loss under extraordinary losses.」
The company recorded an impairment loss of ¥648 million on acquisition-related goodwill because Acrelec's business development was delayed, indicating that the impairment risk has materialized. - FY2021-Q3WorsenedAnnual report
「In the overseas markets, the company acquired shares of Acrelec Group S.A.S. and included the company in the scope of consolidation from the first quarter of the consolidated accounting period. Goodwill increased by ¥16,293 million as a result of this transaction during the nine-month period ended the third quarter. The amount of goodwill was calculated provisionally because the purchase price allocation has not been completed.」
The company disclosed an increase of ¥16,293 million in goodwill related to the acquisition of Acrelec, expanding exposure to impairment risk associated with the acquisition. No impairment loss itself is disclosed. - FY2021-Q2WorsenedAnnual report
「In the overseas markets, the company acquired shares of Acrelec Group S.A.S. and included the company in the scope of consolidation from the first quarter of the consolidated accounting period. Goodwill increased by ¥16,211 million as a result of this transaction during the six-month period ended the second quarter. The amount of goodwill was calculated provisionally because the purchase price allocation has not been completed.」
Goodwill related to the acquisition of Acrelec increased by ¥16,211 million, bringing the goodwill balance to ¥54,981 million. Exposure to impairment risk associated with the acquisition has increased, but no impairment loss itself is disclosed. - FY2021-Q1WorsenedAnnual report
「The main factors were increases of ¥16,988 million in goodwill and ¥8,753 million in inventories, and decreases of ¥21,902 million in cash and deposits and ¥8,764 million in notes and accounts receivable.」
Goodwill increased by ¥16,988 million in connection with the acquisition of Acrelec and other transactions, expanding exposure to impairment risk associated with acquisition-related goodwill. No impairment loss itself is disclosed. - FY2020First statedAnnual report
「As of the end of the fiscal year ended March 2020, goodwill and customer-relationship assets arising from business acquisitions represented 14.0% (¥43,246 million) and 5.8% (¥17,968 million), respectively, of total consolidated assets. If expected results are not achieved due to changes in the business environment or other factors, impairment losses could arise and affect business performance.」
The company quantifies the scale of goodwill and customer-relationship assets arising from acquisitions and explicitly identifies the impairment risk if expected results are not achieved.