Product Warranty Costs Arising from Quality Issues and Their Impact on Earnings
First written in FY2016. 18 of 35 entries say "Worsened", first in FY2017. Latest entry: 2026-10-28.
Tokai Rika moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 9 of 42 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- 2026-10-28WorsenedEarnings
「製品保証引当金 12,434 12,694」
製品保証引当金残高が前年度末から増加し、品質問題に伴う将来の財務負担が拡大している。 - FY2026WorsenedAnnual report
「Change in provision for product warranties (△ indicates a decrease) …90… Provision for product warranties …12,244…12,434」
The product warranty provision balance increased, with an increase of ¥90 million during the year. Repair costs for recalls and other matters are estimated based on the number of units subject to repair, the repair completion rate, the repair cost per unit and the percentage borne by customers, among other factors. - FY2026-H1WorsenedAnnual report
「Provision charged for product warranties △ 63 202」
The provision for product warranties changed from a ¥63 million reversal in the same period of the previous year to a ¥202 million provision in the current interim consolidated accounting period, worsening the impact of product warranty costs during the period. Meanwhile, the provision balance decreased slightly from ¥12,244 million to ¥12,079 million. - FY2025-H1MitigatedAnnual report
「Provision for product warranties 14,294 12,207 Change in provision for product warranties (△ indicates a decrease) △ 871 △ 2,068」
The product warranty provision balance decreased by ¥2,087 million from the end of the previous consolidated fiscal year, and the future financial burden associated with the product warranty issues is trending downward. - FY2024WorsenedAnnual report
「Provision charged for product warranties 13,226」
The provision for product warranties recognized during the year was ¥13,226 million, a substantial increase from ¥1,772 million in the previous year. The product warranty provision balance also increased to ¥14,294 million. - FY2024-Q3WorsenedAnnual report
「Product warranty provision 2,511 4,051」
The product warranty provision balance increased from ¥2,511 million at the end of the previous consolidated fiscal year to ¥4,051 million, increasing the future financial burden arising from the quality issues. - FY2024-Q2MitigatedAnnual report
「Product warranty provision 2,511 1,714」
The product warranty provision balance decreased from ¥2,511 million at the end of the previous consolidated fiscal year to ¥1,714 million. The provision for product warranties included in selling, general and administrative expenses also changed from ¥306 million in the same period of the previous year to a reversal of ¥488 million, indicating that the financial burden arising from the quality issues is trending downward. - FY2024-Q1MitigatedAnnual report
「Provision for product warranties 2,511 1,697」
The product warranty provision balance decreased from ¥2,511 million at the end of the previous consolidated fiscal year to ¥1,697 million, reducing the balance of future costs associated with the quality issues. - FY2023-Q3WorsenedAnnual report
「Product warranty provision 1,060 1,290」
The product warranty provision balance increased from ¥1,060 million at the end of the previous consolidated fiscal year to ¥1,290 million, increasing the future financial burden arising from the quality issues. - FY2023-Q2WorsenedAnnual report
「Product warranty provision 1,060 1,244」
The product warranty provision balance increased from ¥1,060 million at the end of the previous consolidated fiscal year to ¥1,244 million, slightly increasing future costs associated with the quality issues. - FY2023-Q1WorsenedAnnual report
「Provision for product warranties 1,060 1,111」
The product warranty provision balance increased from ¥1,060 million at the end of the previous consolidated fiscal year to ¥1,111 million, slightly increasing the balance of future costs associated with the quality issues. - FY2022MitigatedAnnual report
「Product warranty provision 4,711 1,060」
The product warranty provision balance decreased substantially, reducing the balance of future costs associated with the quality issues. However, a ¥3,859 million provision for product warranties was recognized during the year. - FY2022-Q3MitigatedAnnual report
「Provision for product warranties 4,711 4,675」
The product warranty provision balance decreased from ¥4,711 million at the end of the previous consolidated fiscal year to ¥4,675 million, and the balance of future costs associated with the quality issues continues to narrow. - FY2022-Q2MitigatedAnnual report
「Provision for product warranties 4,711 4,665」
The product warranty provision balance decreased from ¥4,711 million at the end of the previous consolidated fiscal year to ¥4,665 million, and the balance of future costs associated with the quality issues continues to narrow. - FY2022-Q1MitigatedAnnual report
「Provision for product warranties 4,711 4,683」
The product warranty provision balance decreased from ¥4,711 million at the end of the previous consolidated fiscal year to ¥4,683 million, slightly reducing the balance of future costs associated with the quality issues. - FY2021-Q3MitigatedAnnual report
「Provision for product warranties 7,837 7,626」
The product warranty provision balance decreased from ¥7,837 million at the end of the previous consolidated fiscal year to ¥7,626 million, further reducing the balance of future costs associated with the quality issues. - FY2021-Q2MitigatedAnnual report
「Following a settlement between the Company and its overseas subsidiaries and affiliates, and Furukawa Electric Co.,Ltd. and its overseas subsidiaries and affiliates, which manufacture and sell the relevant products, establishing the allocation of costs between the parties, the Group recorded ¥2,820 million as an extraordinary gain in the cumulative second quarter of the current consolidated fiscal year. This represented a reversal of the Group's share of market recall costs previously recorded through the fiscal year ended March 2017.」
A ¥2,820 million gain from the reversal of provisions was recognized following the settlement of costs related to the recall. The product warranty provision balance also decreased from ¥7,837 million at the end of the previous consolidated fiscal year to ¥7,785 million. - FY2021-Q1MitigatedAnnual report
「Provision for product warranties 7,837 7,811」
The product warranty provision balance decreased slightly from ¥7,837 million at the end of the previous consolidated fiscal year to ¥7,811 million, and the balance of future costs associated with the quality issues continues to narrow. - FY2020MitigatedAnnual report
「Provision for product warranties 10,105 7,837」
The product warranty provision balance decreased from ¥10,105 million at the end of the previous fiscal year to ¥7,837 million, while the provision for product warranties recognized during the year amounted to ¥2,165 million. The balance of the financial burden associated with the quality issues has narrowed. - FY2020-Q3MitigatedAnnual report
「Provision for product warranties 10,105 7,950」
The product warranty provision balance decreased from ¥10,105 million at the end of the previous consolidated fiscal year to ¥7,950 million, reducing the balance of future costs associated with the quality issues. - FY2020-Q2WorsenedAnnual report
「Provision for product warranties 10,105 10,258 Provision charged for product warranties 1,731 428」
The product warranty provision balance increased from ¥10,105 million at the end of the previous consolidated fiscal year to ¥10,258 million. A ¥428 million provision for product warranties was recognized during the six-month period ended the second quarter of the current consolidated fiscal year. - FY2020-Q1WorsenedAnnual report
「Provision for product warranties 10,105 10,186」
The product warranty provision balance increased slightly from ¥10,105 million at the end of the previous consolidated fiscal year to ¥10,186 million, increasing future costs associated with the quality issues. - FY2019WorsenedAnnual report
「Provision for product warranties 7,811 10,105 Provision charged for product warranties 2,991」
The product warranty provision balance increased from ¥7,811 million at the end of the previous fiscal year to ¥10,105 million, and the provision recognized during the year also amounted to ¥2,991 million, increasing future costs associated with the quality issues. - FY2019-Q3WorsenedAnnual report
「Provision for product warranties 7,811 9,727」
The product warranty provision balance increased from ¥7,811 million at the end of the previous consolidated fiscal year to ¥9,727 million, increasing the balance of future costs associated with the quality issues. - FY2019-Q2WorsenedAnnual report
「Provision for product warranties 7,811 9,109 Provision charged for product warranties ¥1,658 million ¥1,731 million」
The product warranty provision balance increased from ¥7,811 million at the end of the previous consolidated fiscal year to ¥9,109 million, and a further ¥1,731 million provision for product warranties was recognized during the six-month period ended the second quarter of the current consolidated fiscal year. - FY2019-Q1WorsenedAnnual report
「Provision for product warranties 7,811 8,620」
The product warranty provision balance increased from ¥7,811 million at the end of the previous consolidated fiscal year to ¥8,620 million, increasing the balance of future costs associated with the quality issues. - FY2018WorsenedAnnual report
「Provision for product warranties 6,607 7,811」
The product warranty provision balance increased from ¥6,607 million at the end of the previous fiscal year to ¥7,811 million. The consolidated income statement also includes a ¥1,840 million provision for product warranties. - FY2018-Q3WorsenedAnnual report
「Provision for product warranties 6,607 8,034」
The product warranty provision balance increased from ¥6,607 million at the end of the previous consolidated fiscal year to ¥8,034 million, further increasing the balance of future costs associated with the quality issues. - FY2018-Q2WorsenedAnnual report
「Provision for product warranties 6,607 7,952 Provision charged for product warranties △ 713 1,658」
The product warranty provision balance increased from ¥6,607 million at the end of the previous consolidated fiscal year to ¥7,952 million, and ¥1,658 million was recognized as a provision for product warranties during the six-month period ended the second quarter of the current consolidated fiscal year. - FY2018-Q1RestatedAnnual report
「Provision for product warranties 6,607 6,593」
The product warranty provision balance decreased slightly from ¥6,607 million at the end of the previous consolidated fiscal year to ¥6,593 million, but a balance continues to be recognized. - FY2017WorsenedAnnual report
「Net loss attributable to owners of the parent was ¥4,336 million, mainly due to the recognition of ¥10,460 million in product warranty-related losses and ¥12,092 million in antitrust-related losses as extraordinary losses.」
The product warranty provision balance decreased from ¥22,921 million to ¥6,607 million, while ¥10,460 million in product warranty-related losses was recognized during the year, indicating that the financial impact of the quality issues has again become substantial. - FY2017-Q3MitigatedAnnual report
「Provision for product warranties 22,921 12,352 Provision charged for product warranties 20,603 －」
The product warranty provision balance decreased from ¥22,921 million at the end of the previous consolidated fiscal year to ¥12,352 million, and no provision was recognized during the nine-month period ended the third quarter. The additional financial burden arising from the quality issues has narrowed, although a provision balance remains. - FY2017-Q2MitigatedAnnual report
「Provision for product warranties 22,921 20,972 Provision charged for product warranties 20,603 －」
The product warranty provision balance decreased from ¥22,921 million at the end of the previous consolidated fiscal year to ¥20,972 million, and no provision for product warranties was recognized as an extraordinary loss during the six-month period ended the second quarter of the current consolidated fiscal year. - FY2017-Q1MitigatedAnnual report
「Provision for product warranties 6,100 －」
The ¥6,100 million provision for product warranties recognized in the same quarter of the previous year was not recognized in the current quarter. The product warranty provision balance also decreased from ¥22,921 million to ¥21,646 million. The financial impact of the quality issues narrowed in the current quarter, although a provision balance remains. - FY2016First statedAnnual report
「Net income attributable to owners of the parent was ¥5,591 million, a decrease of ¥14,138 million, or 71.7%, from the previous consolidated fiscal year, primarily because the provision for product warranties increased.」
The provision for product warranties was ¥21,317 million, and the financial impact of the quality issues is reflected in the earnings overview and income statement.