Product Defects and Claim-Related Costs
First written in FY2016. 8 of 21 entries say "Mitigated", first in FY2019. Latest entry: FY2025-H1.
The whole theme swung hardest in 2026: 11 of 56 companies on the "Worse" side.
- FY2025-H1MitigatedAnnual report
「Net income attributable to owners of the parent was ¥1,779 million, as the company recorded ¥375 million in special retirement payments, ¥190 million in losses on liquidation of an affiliate, and ¥119 million in provision expense for doubtful accounts as extraordinary losses, while recording ¥1,090 million in reversal of the product warranty provision as an extraordinary gain.」
The company recorded ¥1,090 million in reversal of the product warranty provision, and the balance of the provision also decreased from ¥3,908 million at the end of the previous fiscal year to ¥2,787 million. The burden related to quality assurance has declined from the end of the previous fiscal year. - FY2024MitigatedAnnual report
「Product warranty provision 4,143 3,908」
The balance of the product warranty provision decreased from ¥4,143 million at the end of the previous fiscal year to ¥3,908 million, and no provision expense for product warranties was recorded in the current fiscal year. The provision burden related to quality assurance declined from the end of the previous fiscal year. - FY2024-Q2Product warranty provision balance increased slightlyAnnual report
「Product warranty provision 4,143 4,193」
The balance of the product warranty provision increased slightly from ¥4,143 million at the end of the previous consolidated fiscal year to ¥4,193 million. No provision expense for product warranties was recorded in the income statement for the six months ended the second quarter. - FY2024-Q1MitigatedAnnual report
「Product warranty provision 4,143 4,089」
The balance of the product warranty provision decreased from ¥4,143 million at the end of the previous consolidated fiscal year to ¥4,089 million, and no provision expense for product warranties was recorded in the current quarter. The provision burden related to quality assurance has declined. - FY2023WorsenedAnnual report
「The company recorded a net loss attributable to owners of the parent of ¥2,991 million due to the recognition as extraordinary losses of an impairment loss of ¥4,582 million, an impairment loss on shares of an affiliated company of ¥743 million, a ¥664 million provision for product warranties, ¥230 million in special retirement payments, ¥176 million in bad debt losses and other items」
The provision for product warranties increased from ¥109 million in the previous year to ¥664 million. The earnings impact of product defect- and claims-related costs is widening again. - FY2023-Q3WorsenedAnnual report
「The company recognized a ¥269 million provision for product warranties and ¥176 million in bad debt losses as extraordinary losses」
The provision for product warranties increased from ¥98 million in the same period of the previous year to ¥269 million, increasing the cost burden related to product defects and quality risks. The balance of the provision for product warranties at the end of the quarter was ¥3,742 million. - FY2023-Q2Continued product warranty provisions and a declining balanceAnnual report
「The company recorded a quarterly net loss attributable to owners of the parent of ¥960 million, compared with a quarterly net loss attributable to owners of the parent of ¥743 million in the same period of the previous year, mainly due to the recognition of ¥176 million in bad debt losses, a ¥70 million provision for product warranties and ¥48 million in special retirement payments as extraordinary losses.」
Although a ¥70 million provision for product warranties was recognized, the balance of the provision at the end of the quarter was ¥3,606 million, down from ¥3,847 million at the end of the previous period. - FY2023-Q1Declining product warranty provision balance alongside new provisionsAnnual report
「The company recorded a quarterly net loss attributable to owners of the parent of ¥462 million, compared with quarterly net income attributable to owners of the parent of ¥143 million in the same period of the previous year, due mainly to the recognition of ¥176 million in bad debt losses, a ¥37 million provision for product warranties and ¥36 million in special retirement payments as extraordinary losses, partly offset by the impact of deferred income taxes of negative ¥1,036 million in income tax expense.」
A ¥37 million provision for product warranties was recognized, while the balance of the provision declined from ¥3,847 million to ¥3,589 million. Quality-related costs continue to arise, but the provision balance has declined from the end of the previous period. - FY2022MitigatedAnnual report
「A ¥109 million provision for product warranties was recognized as an extraordinary loss.」
The provision for product warranties declined from ¥1,557 million in the previous year to ¥109 million, reducing the earnings impact of quality assurance-related costs in the current period. However, the balance of the provision for product warranties stands at ¥3,847 million. - FY2022-Q3MaterialisedAnnual report
「The company recorded a quarterly net loss attributable to owners of the parent of ¥3,034 million, compared with quarterly net income attributable to owners of the parent of ¥7,704 million in the same period of the previous year, due to the recognition of ¥456 million in special retirement payments as an extraordinary loss.」
During the cumulative third quarter of the current consolidated fiscal year, a ¥98 million provision for product warranties was recognized as an extraordinary loss, and product defect- and claims-related costs continue to arise in the results. - FY2022-Q1MaterialisedAnnual report
「Profit attributable to owners of the parent was ¥143 million, down ¥1,689 million, or 92.2%, year on year, due to the recognition of ¥68 million in gains on sales of investment securities and a ¥60 million reversal of an allowance for doubtful accounts as extraordinary gains, alongside the recognition of a ¥49 million provision for product warranties and a ¥44 million loss on disposal of fixed assets as extraordinary losses.」
A ¥49 million provision for product warranties was recognized as an extraordinary loss, and product defect- and claims-related costs arose in the results for the quarter. - FY2021-Q3MitigatedAnnual report
「The provision for product warranties declined by ¥988 million from the end of the previous consolidated fiscal year」
The balance of the provision for product warranties declined from ¥2,976 million at the end of the previous consolidated fiscal year to ¥1,988 million, reducing the provision burden related to quality assurance. Meanwhile, a ¥123 million provision for product warranties was also recognized during the cumulative period of the current quarter. - FY2021-Q2MitigatedAnnual report
「Provision for product warranties 2,976 1,961」
The balance of the provision for product warranties declined from ¥2,976 million at the end of the previous consolidated fiscal year to ¥1,961 million, reducing the provision burden related to quality assurance. - FY2021-Q1MitigatedAnnual report
「Profit attributable to owners of the parent was ¥1,832 million, up ¥1,123 million, or 158.4%, year on year, due to the recognition of ¥68 million in government subsidy income and a ¥44 million reversal of an allowance for doubtful accounts as extraordinary gains, alongside the recognition of a ¥56 million loss on the reduction of fixed assets as an extraordinary loss, while no provision for product warranties was recognized in the cumulative first quarter of the current consolidated fiscal year because no new quality risks were anticipated, compared with a ¥255 million provision recognized as an extraordinary loss in the same period of the previous year.」
A ¥255 million provision for product warranties was recognized in the same period of the previous year, but no new quality risks were anticipated in the current quarter, and no provision for product warranties was recognized. - FY2020WorsenedAnnual report
「Net income attributable to owners of the parent declined substantially to a net loss attributable to owners of the parent of ¥3,513 million due to the recognition of a ¥519 million reversal of a product warranty provision and a ¥219 million reversal of an allowance for doubtful accounts as extraordinary gains, alongside the recognition of a ¥2,166 million provision for product warranties related to newly anticipated quality risks as an extraordinary loss.」
Although prior-period provisions were reversed, the provision for product warranties related to new quality risks was ¥2,166 million, a substantial increase from ¥435 million in the previous year. The earnings impact of quality assurance risks is widening again. - FY2020-Q3WorsenedAnnual report
「Profit attributable to owners of the parent declined substantially to a quarterly net loss attributable to owners of the parent of ¥2,949 million, compared with quarterly net income attributable to owners of the parent of ¥3,738 million in the same period of the previous year, due to the recognition of a ¥522 million reversal of a product warranty provision as an extraordinary gain, reflecting lower-than-expected prior-period warranty costs, alongside the recognition of a ¥2,114 million provision for product warranties related to newly anticipated quality risks as an extraordinary loss.」
Although a ¥522 million reversal of prior-period provisions was recorded, a ¥2,114 million provision for product warranties was recognized for new quality risks. The amount of new quality-related losses increased from ¥249 million in the previous quarter, contributing to the quarterly net loss attributable to owners of the parent. - FY2020-Q2Reversal of prior-period provisions alongside new provisionsAnnual report
「Profit attributable to owners of the parent was ¥446 million, down ¥2,324 million, or 83.9%, year on year, due to the recognition of a ¥524 million reversal of the product warranty provision as an extraordinary gain, reflecting lower-than-expected prior-period warranty costs, alongside the recognition of a ¥249 million provision for product warranties related to newly anticipated quality risks as an extraordinary loss.」
A ¥524 million reversal of a product warranty provision recognized in prior periods was recorded, while an additional ¥249 million was recognized for new quality risks. Quality-related costs continue to arise. - FY2020-Q1MaterialisedAnnual report
「Profit attributable to owners of the parent was ¥709 million, down ¥667 million, or 48.5%, year on year, due to the recognition of a ¥255 million provision for product warranties as an extraordinary loss for anticipated quality risks.」
A ¥255 million provision for product warranties related to anticipated quality risks was recognized as an extraordinary loss. The risk of product defect- and claims-related costs has materialized in the results for the quarter. - FY2019MitigatedAnnual report
「The provision for product warranties resulted in a loss of ¥435 million in the current consolidated fiscal year, compared with a loss of ¥1,988 million in the previous consolidated fiscal year」
The provision for product warranties declined from ¥1,988 million in the previous year to ¥435 million. Product defect- and claims-related costs continued to arise, but their impact on current-period earnings was lower than in the previous period. - FY2018-Q3MaterialisedAnnual report
「Profit attributable to owners of the parent was ¥4,348 million, down ¥4,312 million, or 49.8%, year on year, mainly due to a ¥1,973 million provision for product warranties and an impairment loss of ¥547 million.」
A ¥1,973 million provision for product warranties was actually recognized, contributing to the decline in profit attributable to owners of the parent. The risk of product defect- and claims-related costs has materialized in the results. - FY2016First statedAnnual report
「There is no guarantee that all products will be free of defects or that no losses will arise in the future. Depending on the nature of a defect, substantial additional costs may arise and the Group's reputation may be affected」
The company identifies as a risk the possibility that product defects could result in additional costs, reputational damage and an impact on operating results and financial condition. It presents thorough verification at manufacturing sites and rigorous quality control as countermeasures.