Guarantee Performance Risk for an Employee Shareholding Trust When the Share Price Falls
First written in FY2016. 13 of 19 entries say "Mitigated", first in FY2017-Q2. Latest entry: FY2022.
31 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「If the borrowings cannot be repaid in full, the company, as guarantor, will perform the guarantee under the loan agreement with a limited-recourse provision. The company introduced the plan in May 2011, but reintroduced it after the plan ended in June 2017, and ended it in October 2021.」
With the termination of E-Ship, the borrowing risk related to the employee stock ownership trust, which could have required the company to make repayments if the share price fell, moved toward resolution. - FY2022-Q3MitigatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision. …¥4.450 million at the end of the previous fiscal year; no balance at the end of the third quarter because the amount had been repaid in full.」
The risk of guarantee performance if the share price falls in connection with E-Ship is described as remaining under the plan, but the borrowings that could be subject to the guarantee were repaid in full, leaving a zero balance at the end of the third quarter. No actual guarantee performance is reported. - FY2022-Q2MitigatedAnnual report
「Carrying amount of borrowings recorded under the gross method: ¥4.450 million at the end of the previous fiscal year; no balance at the end of the second quarter because the amount was repaid in full.」
The risk of guarantee performance if the share price falls in connection with E-Ship remains under the plan, but the borrowings that could be subject to the guarantee were repaid in full, leaving a zero balance at the end of the quarter. No actual guarantee performance is reported. - FY2022-Q1MitigatedAnnual report
「④ Carrying amount of borrowings recorded under the gross method: ¥4.450 million at the end of the previous fiscal year; ¥4.450 million at the end of the first quarter」
The risk of guarantee performance if the share price falls in connection with the reintroduced E-Ship remains, but the carrying amount of borrowings that could be subject to the guarantee was ¥4.450 million, unchanged from the end of the previous fiscal year. No actual guarantee performance is reported. - FY2021-Q2MitigatedAnnual report
「④ Carrying amount of borrowings recorded under the gross method: ¥26.360 million at the end of the previous fiscal year; ¥15.350 million at the end of the second quarter」
The risk of guarantee performance if the share price falls in connection with the reintroduced E-Ship remains, but the carrying amount of borrowings that could be subject to the guarantee declined from ¥26.360 million to ¥15.350 million. No actual guarantee performance is reported. - FY2020MitigatedAnnual report
「Cash outflows for repayment of long-term borrowings: ¥23.070 million. Cash inflows from the sale of treasury shares and cash outflows for repayment of long-term borrowings relate to the trust-type employee stock ownership incentive plan.」
Repayment of borrowings related to E-Ship continued, with ¥23.070 million repaid during the fiscal year. There is no statement that guarantee performance was required due to a decline in the share price. - FY2020-Q3MitigatedAnnual report
「④ Carrying amount of borrowings recorded under the gross method: ¥49.430 million at the end of the previous fiscal year; ¥37.430 million at the end of the third quarter」
The risk of guarantee performance if the share price falls in connection with the reintroduced E-Ship continues, but the carrying amount of borrowings that could be subject to the guarantee declined from ¥49.430 million at the end of the previous fiscal year to ¥37.430 million. There is no statement that guarantee performance was actually required. - FY2019RestatedAnnual report
「If the borrowings cannot be repaid in full, the company, as guarantor, will perform the guarantee under the loan agreement with a limited-recourse provision.」
The company continues to disclose the risk of guarantee performance if the share price falls in connection with the reintroduced E-Ship. There is no statement that guarantee performance was actually required. - FY2019-Q3MitigatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision. The carrying amount of borrowings recorded under the gross method was ¥71.740 million at the end of the previous fiscal year and ¥60.160 million at the end of the third quarter.」
The risk of guarantee performance if the share price falls in connection with the reintroduced E-Ship continues, but the carrying amount of borrowings that could be subject to the guarantee declined from ¥71.740 million to ¥60.160 million. No actual guarantee performance is reported. - FY2019-Q2MitigatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision.」
The risk of guarantee performance if the share price falls in connection with the reintroduced E-Ship continues, but the carrying amount of borrowings recorded under the gross method declined from ¥71.740 million at the end of the previous fiscal year to ¥60.160 million at the end of the second quarter. No actual guarantee performance is reported. - FY2019-Q1RestatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision.」
The company continues to disclose the risk of guarantee performance if the share price falls in connection with the reintroduced E-Ship. The carrying amount of borrowings was ¥71.740 million at the end of the quarter, and no actual guarantee performance is reported. - FY2018MitigatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision.」
The risk of guarantee performance associated with the reintroduced E-Ship remains, but the carrying amount of borrowings recorded under the gross method was ¥71.740 million at period-end, down from ¥81.000 million at the end of the third quarter. No actual guarantee performance is reported. - FY2018-Q3WorsenedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision.」
With the reintroduction of the employee stock ownership incentive plan, a repayment obligation if the share price falls is again anticipated. The borrowing balance related to the employee stock ownership trust was disclosed as ¥81.000 million at the end of the quarter, but there is no statement that guarantee performance was actually required. - FY2018-Q2WorsenedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision.」
The risk of guarantee performance, which had once ceased upon termination of the former trust, became applicable again in connection with the reintroduction of the employee stock ownership incentive plan, with a similar repayment obligation again anticipated. There is no statement that guarantee performance was actually required. - FY2018-Q1MitigatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision. The trust ended in June 2017. The previous consolidated fiscal year-end consolidated balance sheet included ¥24.520 million relating to borrowings drawn down by the employee stock ownership trust. As this amount was repaid in full, nothing was recorded at the end of the quarter (30 June 2017).」
The risk of guarantee performance if the share price falls continues to be described, but the ¥24.520 million borrowing balance was repaid in full upon termination of the trust, leaving a zero balance at the end of the quarter. - FY2017MitigatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision. Accordingly, a borrowing balance of ¥24.520 million drawn down by the employee stock ownership trust was recorded on the consolidated balance sheet (¥51.610 million at the end of the previous consolidated fiscal year).」
The risk of guarantee performance if the share price falls continues to be disclosed, but the borrowing balance of the employee stock ownership trust that could be subject to the guarantee declined from ¥51.610 million to ¥24.520 million. There is no statement that guarantee performance was actually required due to a decline in the share price. - FY2017-Q3RestatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision. Accordingly, a borrowing balance of ¥37.040 million drawn down by the employee stock ownership trust was recorded on the quarterly consolidated balance sheet (¥51.610 million at the end of the previous consolidated fiscal year).」
The company continues to disclose the risk of guarantee performance if the share price falls. The borrowing balance of the employee stock ownership trust was ¥37.040 million, with no further change stated since the second-quarter report. - FY2017-Q2MitigatedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision. Accordingly, a borrowing balance of ¥37.040 million drawn down by the employee stock ownership trust was recorded on the quarterly consolidated balance sheet (¥51.610 million at the end of the previous consolidated fiscal year).」
The company continues to disclose the risk of guarantee performance if the share price falls. The borrowing balance of the employee stock ownership trust declined from ¥51.610 million at the end of the previous consolidated fiscal year to ¥37.040 million. There is no statement that guarantee performance was actually required due to a decline in the share price. - FY2016First statedAnnual report
「If a loss equivalent to a loss on the sale of shares accumulates within the employee stock ownership trust due to a decline in the company's share price, the company will repay the corresponding borrowing balance under the loan agreement with a limited-recourse provision.」
The borrowing balance related to the employee stock ownership trust was ¥51.610 million at the end of the period. The company discloses the guarantee risk associated with the 6-year trust period since the plan was introduced.