Product Defects, Recalls and Product Liability
First written in FY2016. 10 of 28 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2026: 11 of 56 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Balance at 31 March 2026 221,752」
The product warranty provision balance decreased from ¥268,911 million in the previous fiscal year to ¥221,752 million. Although the increase during the period was ¥110,542 million, the balance at the end of the period decreased due to a reversal of ¥84,395 million and ¥75,124 million used for its intended purpose. - FY2026-H1WorsenedAnnual report
「Product warranty provision expense 5,910 31,228」
Product warranty provision expense increased from ¥5,910 million in the same interim period of the previous year to ¥31,228 million in the current interim period, and quality-related costs increased again. - FY2025MitigatedAnnual report
「Increase during the period 78,396 Decrease during the period (used for its intended purpose) △55,658 Decrease during the period (reversal) △17,758 Balance at 31 March 2025 268,911」
The increase in the product warranty provision during the current fiscal year decreased from ¥215,780 million in the previous fiscal year to ¥78,396 million. However, the balance at the end of the period was ¥268,911 million, and quality-related costs remain. - FY2025-H1MitigatedAnnual report
「Product warranty provision expense 43,338 5,910」
Product warranty provision expense decreased from ¥43,338 million in the same period of the previous year to ¥5,910 million in the interim period, reducing current-period quality-related costs from the same period of the previous year. However, the Company continued to recognize the provision. - FY2024WorsenedAnnual report
「The Company had recognized a product warranty provision for costs related to defects in some products manufactured by consolidated companies in the past, but changed its estimate in the current consolidated fiscal year based on subsequent developments. As a result of this change, provisions under current liabilities and selling, general and administrative expenses each increased by ¥179,000 million.」
In addition to the ¥179,000 million increase resulting from the change in the product warranty provision estimate, the balance at the end of the period was ¥265,971 million. The Japan segment included product warranty provision expense of ¥202,711 million. - FY2024-Q3WorsenedAnnual report
「The Company had recognized a product warranty provision for costs related to defects in some products manufactured by consolidated companies in the past, but changed its estimate in the third-quarter consolidated accounting period based on subsequent developments. As a result of this change, provisions under current liabilities and selling, general and administrative expenses each increased by ¥179,400 million.」
The change in the estimate for the product warranty provision increased provisions under current liabilities and selling, general and administrative expenses by ¥179.4 billion each. The Japan segment also included product warranty provision expense of ¥191.201 billion, indicating a significant increase in quality-related costs. - FY2024-Q2WorsenedAnnual report
「Product warranty provision expense (△ indicates a reversal) △1,923 43,338」
The product warranty provision changed from a reversal of ¥1,923 million in the same period of the previous year to an expense of ¥43,338 million in the cumulative second quarter, and costs related to product defects and quality increased again. - FY2024-Q1WorsenedAnnual report
「Product warranty provision expense (△ indicates a reversal) △908 13,126」
The product warranty provision changed from a reversal of ¥908 million in the same period of the previous year to an expense of ¥13,126 million in the first quarter, and costs related to product defects and quality increased again. - FY2023MitigatedAnnual report
「Balance at 31 March 2023 82,766」
The product warranty provision balance decreased from ¥121,280 million in the previous fiscal year to ¥82,766 million, while the product warranty provision expense for the current fiscal year was ¥1,154 million, reducing quality-related costs. - FY2023-Q3MitigatedAnnual report
「Product warranty provision expense (△ indicates a reversal) 8,771 △368」
The product warranty provision changed from an expense of ¥8,771 million in the same period of the previous year to a reversal of ¥368 million in the cumulative third quarter, reducing quality-related costs from the same period of the previous year. - FY2023-Q2MitigatedAnnual report
「Product warranty provision expense (△ indicates a reversal) 8,564 △1,923」
The product warranty provision changed from an expense of ¥8,564 million in the same period of the previous year to a reversal of ¥1,923 million in the cumulative second quarter, reducing quality-related costs from the same period of the previous year. - FY2023-Q1MitigatedAnnual report
「Additions to the provision for product warranties (△ indicates a reversal) 2,176 △908」
The product warranty provision changed from an expense of ¥2,176 million in the same period of the previous year to a reversal of ¥908 million in the first quarter, temporarily reducing quality-related costs for the quarter. - FY2022MitigatedAnnual report
「Provision for product warranties Increase during the period 17,185 Decrease during the period (used for intended purposes) △118,654 Balance as of 31 March 2022 121,280」
The decrease in the provision for product warranties due to use for its intended purpose exceeded additions, reducing the ending balance from ¥230,496 million in the previous fiscal year to ¥121,280 million. However, the quality-related burden itself continues. - FY2022-Q3MaterialisedAnnual report
「Additions to the provision for product warranties 47,384 8,771」
The company recorded ¥8,771 million in additions to the provision for product warranties. Although this was down from the same period of the previous year, the quality-related burden associated with product defects continues. - FY2022-Q2MaterialisedAnnual report
「Additions to the provision for product warranties 40,513 8,564」
The company recorded ¥8,564 million in additions to the provision for product warranties. Although this was down from the same period of the previous year, the quality-related burden associated with product defects continues. - FY2022-Q1MaterialisedAnnual report
「Additions to the provision for product warranties (△ indicates a reversal) △2,694 2,176」
In the first quarter, the company recorded ¥2,176 million in additions to the provision for product warranties, reversing the provision release recorded in the same period of the previous year, indicating that the quality-related burden has materialised. - FY2021WorsenedAnnual report
「The company had recognised a provision for product warranties for costs associated with defects in some products manufactured by the consolidated companies in the past. Based on subsequent developments, it revised its estimate during the current fiscal year. As a result, both provisions under current liabilities and selling, general and administrative expenses increased by ¥73,743 million.」
A change in the estimate for the provision for product warranties related to defects in past products increased current liabilities and selling, general and administrative expenses by ¥73.743 billion each. - FY2021-Q3WorsenedAnnual report
「Additions to the provision for product warranties 34,618 47,384」
Additions to the provision for product warranties increased from ¥34.6 billion in the same period of the previous year to ¥47.4 billion, indicating that the quality-related burden associated with product defects is continuing. - FY2021-Q2WorsenedAnnual report
「The company had recognised a provision for product warranties for costs associated with defects in some products manufactured by the consolidated companies in the past. Based on subsequent developments, it revised its estimate during the six-month period ended the second quarter. As a result, both provisions under current liabilities and selling, general and administrative expenses increased by ¥38,200 million.」
A change in the estimate for the provision for product warranties related to product defects increased both provisions and selling, general and administrative expenses by ¥38.2 billion. The quality-related burden is increasing. - FY2020WorsenedAnnual report
「The segment loss in the Japan segment includes ¥210,604 million in additions to the provision for product warranties.」
The company recorded ¥210,604 million in additions to the provision for product warranties, resulting in an operating loss of ¥88.8 billion in the Japan segment. The balance of the provision for product warranties also increased to ¥254,342 million. - FY2020-Q3WorsenedAnnual report
「Operating income declined to ¥162.7 billion, down ¥80.9 billion, or 33.2%, year on year, as rationalisation efforts offset higher fixed costs but were outweighed by the impact of foreign exchange and provisions for quality-related costs, among other factors.」
The provision for quality-related costs continued to reduce operating income, and additions to the provision for product warranties increased from ¥11,556 million in the same period of the previous year to ¥34,618 million. - FY2019MaterialisedAnnual report
「Operating income declined to ¥316.2 billion, down ¥96.5 billion, or 23.4%, year on year, due to accelerated investment in future growth areas, the absence of nonrecurring income recorded in the previous fiscal year, and the provision for quality-related costs in the fourth quarter of the current fiscal year.」
The provision for quality-related costs in the fourth quarter became an actual factor reducing operating income, and the balance of the provision for product warranties also increased from ¥40,262 million in the previous fiscal year to ¥67,849 million. - FY2018RestatedAnnual report
「However, there is no guarantee that all products are free of defects or that recalls will not occur in the future.」
The company reiterates the residual risks of product defects, recalls and product liability claims. - FY2018-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter, and there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes in the risks related to product defects, recalls and product liability. - FY2018-Q2RestatedAnnual report
「No new business or other risks arose during the six-month cumulative period under review. There were also no material changes to the business and other risks described in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no new developments or material changes in the risks related to product defects, recalls and product liability. - FY2017RestatedAnnual report
「There is no guarantee that all products are free of defects or that recalls will not occur in the future.」
The company reiterates the residual risks related to product defects, recalls and product liability. - FY2017-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter, and there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes in the risks related to product defects, recalls and product liability. - FY2016First statedAnnual report
「There is no guarantee that all products are free of defects or that recalls will not occur in the future. Product defects that lead to major recalls or product liability claims could result in substantial costs and have a material impact on the reputation of the consolidated companies,」「and could adversely affect their operating results and financial condition.」
While quality control standards are applied at factories worldwide, the possibility of defects and recalls remains as a residual risk.