Risk of guarantee obligations if share prices fall in connection with employee stock ownership incentive plans
First written in FY2020-Q3. 5 of 12 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2024-Q1.
31 other companies' latest entry also says "Mitigated".
- FY2024-Q1MitigatedAnnual report
「Provision for losses on guarantees 161 -」
The provision for losses on guarantees associated with the employee shareholding incentive plan fell from ¥161 million at the end of the previous fiscal year to zero at the end of the first quarter of the current fiscal year. - FY2023-Q3WorsenedAnnual report
「Provision for losses on guarantees 162」
The provision for losses on guarantees associated with the employee shareholding incentive plan was ¥162 million, up from ¥156 million reported in the previous quarterly report and ¥143 million at the end of the previous fiscal year. - FY2023-Q2WorsenedAnnual report
「Provision for losses on guarantees 162」
The provision for losses on guarantees associated with the employee shareholding incentive plan was ¥162 million, up from ¥143 million at the end of the previous fiscal year and ¥156 million reported in the previous quarterly report. - FY2023-Q1WorsenedAnnual report
「Provision for losses on guarantees 156」
The provision for losses on guarantees associated with the employee shareholding incentive plan increased from ¥143 million at the end of the previous fiscal year to ¥156 million. - FY2022-Q3WorsenedAnnual report
「Provision for losses on guarantees 131」
The provision for losses on guarantees associated with the employee shareholding incentive plan was ¥131 million, up from ¥127 million reported in the previous quarterly report. On the other hand, it was below the ¥145 million recorded at the end of the previous consolidated fiscal year. - FY2022-Q2MitigatedAnnual report
「Provision for losses on guarantees 127」
The provision for losses on guarantees associated with the employee shareholding incentive plan decreased from ¥145 million at the end of the previous fiscal year to ¥127 million. - FY2022-Q1MitigatedAnnual report
「Change in provision for losses on guarantees (△ indicates a decrease) △10」
The provision for losses on guarantees associated with the employee shareholding incentive plan decreased from ¥145 million at the end of the previous fiscal year to ¥134 million. - FY2021MitigatedAnnual report
「The provision for losses on guarantees was ¥145 million.」
The provision for losses on guarantees associated with E-Ship decreased to ¥145 million from ¥186 million at the end of the previous fiscal year and ¥192 million in the previous quarter. - FY2021-Q3MitigatedAnnual report
「Provision for losses on guarantees 192」
The provision for losses on guarantees was ¥192 million, down from ¥197 million reported in the previous quarterly report. However, it remained above the ¥186 million recorded at the end of the previous consolidated fiscal year. - FY2021-Q2WorsenedAnnual report
「Change in provision for losses on guarantees (△ indicates a decrease) 11」
The provision for losses on guarantees increased from ¥186 million at the end of the previous consolidated fiscal year to ¥197 million, indicating a numerical increase in the guarantee obligation risk associated with the employee shareholding incentive plan. - FY2020Recognition of provision for losses on guaranteesAnnual report
「¥703 million as of the end of the consolidated fiscal year」
In addition to ¥703 million in borrowings associated with E-Ship, a ¥186 million provision for losses on guarantees was recognized, quantifying the guarantee obligation risk if the share price falls. - FY2020-Q3First statedAnnual report
「In addition, because we guarantee borrowings obtained by the employee shareholding trust to acquire our shares, a decline in our share price will cause losses on the sale of shares to accumulate within the employee shareholding trust. If, at the end of the trust, borrowings remain outstanding within the trust in an amount equivalent to those losses on share sales, we will repay the outstanding balance.」
E-Ship discloses as a new risk the possibility that we may have to repay any borrowing remaining outstanding in the trust if the share price falls.