Guarantee obligations arising from a decline in the ESOP trust’s share price
First written in FY2020-Q2. 9 of 14 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2025-H1.
31 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「If a decline in the share price results in a loss on the transfer and liabilities related to the trust assets remain, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the monetary loan agreement with a limited-recourse provision. The trust was terminated in September 2024.」
The ESOP trust was terminated in September 2024, eliminating the Company's shares remaining in the trust and the borrowings recognized under the gross method. As a result, the balance underlying the Company's guarantee obligations in the event of a share-price decline was also reduced to zero. - FY2024MitigatedAnnual report
「(3) Carrying amount of borrowings recognized under the gross method ¥24.202 million at the end of the previous fiscal year; ¥17.332 million at the end of the current fiscal year」
The carrying amount of borrowings related to the ESOP trust declined from ¥24.202 million to ¥17.332 million, reducing the balance underlying the Company's guarantee obligations in the event of a share-price decline. - FY2024-Q2MitigatedAnnual report
「1. Matters concerning the Company's shares held by the trust End of previous fiscal year: carrying amount ¥13.057 million; 80,600 shares End of the second quarter accounting period: carrying amount ¥9.120 million; 56,300 shares 3. Carrying amount of borrowings recognized under the gross method End of previous fiscal year: ¥24.202 million End of the second quarter accounting period: ¥20.262 million」
The carrying amount of borrowings related to the ESOP trust declined from ¥24.202 million to ¥20.262 million, reducing the balance underlying the Company's guarantee obligations in the event of a share-price decline. - FY2024-Q1RestatedAnnual report
「End of previous fiscal year: ¥24.202 million End of the first quarter accounting period: ¥24.202 million」
The carrying amount of borrowings related to the ESOP trust remained unchanged at ¥24.202 million, and the balance underlying the Company's guarantee obligations in the event of a share-price decline was maintained. - FY2023MitigatedAnnual report
「¥30.342 million at the end of the previous fiscal year; ¥24.202 million at the end of the current fiscal year」
The carrying amount of borrowings related to the ESOP trust declined from ¥30.342 million to ¥24.202 million, reducing the balance underlying the Company's guarantee obligations in the event of a share-price decline. - FY2023-Q2MitigatedAnnual report
「End of previous fiscal year: ¥30.342 million End of the second quarter accounting period: ¥27.012 million」
The carrying amount of borrowings related to the ESOP trust declined from ¥30.342 million to ¥27.012 million, reducing the balance underlying the Company's guarantee obligations in the event of a share-price decline. - FY2023-Q1RestatedAnnual report
「If a decline in the share price results in a loss on the transfer and liabilities related to the trust assets remain, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the monetary loan agreement with a limited-recourse provision.」
The risk that the Company will incur guarantee obligations if the ESOP trust's share price declines was reiterated. The carrying amount of borrowings underlying the guarantee was unchanged at ¥30.342 million from the end of the previous fiscal year. - FY2022MitigatedAnnual report
「¥36.212 million at the end of the previous fiscal year; ¥30.342 million at the end of the current fiscal year」
The carrying amount of borrowings related to the ESOP trust declined from ¥36.212 million to ¥30.342 million, reducing the balance underlying the guarantee obligations in the event of a share-price decline. - FY2022-Q2MitigatedAnnual report
「At the end of the second quarter accounting period: ¥33.212 million」
The carrying amount of borrowings related to the ESOP trust declined from ¥36.212 million at the end of the previous fiscal year to ¥33.212 million, reducing the balance underlying the Company's guarantee obligations in the event of a share-price decline. - FY2022-Q1RestatedAnnual report
「At the end of the first quarter accounting period: ¥36.212 million」
The carrying amount of borrowings related to the ESOP trust was unchanged at ¥36.212 million from the end of the previous fiscal year, and the balance underlying the Company's guarantee obligations in the event of a share-price decline was maintained. - FY2021MitigatedAnnual report
「Carrying amount of borrowings recognized under the gross method: ¥42.952 million at the end of the previous fiscal year; ¥36.212 million at the end of the current fiscal year」
The carrying amount of borrowings related to the ESOP trust declined from ¥42.952 million to ¥36.212 million, reducing the balance underlying the guarantee obligations in the event of a share-price decline. - FY2021-Q2MitigatedAnnual report
「At the end of the second quarter accounting period: ¥39.312 million」
The carrying amount of borrowings related to the ESOP trust declined from ¥42.952 million at the end of the previous fiscal year to ¥39.312 million, reducing the balance underlying the Company's guarantee obligations in the event of a share-price decline. - FY2020RestatedAnnual report
「If a decline in the share price results in a loss on the transfer and liabilities related to the trust assets remain, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the monetary loan agreement with a limited-recourse provision.」
The risk that the Company will incur guarantee obligations if the ESOP trust's share price declines was reiterated. At the end of FY2020, the trust held 228,700 shares, and the carrying amount of its trust borrowings was ¥42.952 million. - FY2020-Q2First statedAnnual report
「If a decline in the share price results in a loss on the transfer and liabilities related to the trust assets remain, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the monetary loan agreement with a limited-recourse provision.」
The exposure under the guarantee provisions requiring the Company to make a lump-sum repayment to the bank if liabilities remain following a decline in the ESOP trust's share price was disclosed for the first time.