Operating expense presentation of the difference in asset retirement obligations associated with the planned closure of stores

「Among the differences arising from store closures carried out as planned by our group, those not attributable to abnormal causes are presented as operating expenses, specifically selling, general and administrative expenses.」

「Previously, among the differences between the amount of the asset retirement obligation recognized when the obligation was fulfilled and the amount actually paid to settle it, those that were extraordinary and material were presented as extraordinary income or loss. However, for differences arising from store closures carried out as planned by our group, those not attributable to abnormal causes are presented as operating expenses, specifically selling, general and administrative expenses. This change was made because, following a more detailed review of the causes giving rise to the fulfillment of asset retirement obligations, we determined that this presentation more appropriately reflects in the quarterly financial statements the ongoing closure of unprofitable stores to streamline management and revitalize existing stores.」