Goodwill impairment risk arising from TBC’s business transformation
First written in FY2017. 2 of 4 entries say "Mitigated", first in FY2018. Latest entry: FY2024-Q1.
No other company in this theme has enough history to compare yet.
- FY2024-Q1MitigatedAnnual report
「This was attributable to the strong performance of the construction equipment business and the steady performance of the leasing business, as well as the recognition of a one-time gain in the U.S. tire sales business resulting from the sale of the company-operated retail business.」
A one-time gain was recognized in the U.S. tire sales business in connection with the sale of the company-operated retail business. Specific execution of TBC's business transformation and asset replacement was presented, indicating progress in addressing the associated risks. - FY2018MitigatedAnnual report
「After obtaining approval from the relevant authorities in Japan and overseas, the share transfer was completed on 5 April 2018.」
The share transfer relating to the strategic partnership between TBC and Michelin North America was finalized and completed from the originally planned arrangement. This advanced the execution of the business transformation, but it was not stated that the risk of goodwill impairment had disappeared. - FY2018-Q3AdvancedAnnual report
「We agreed with Compagnie Générale des Établissements Michelin to form a strategic partnership in the replacement-tire wholesale and retail businesses in the United States, Mexico and Canada. After integrating Tire Center LLC, a subsidiary of Michelin North America, Inc. (hereinafter, Michelin North America) engaged in tire wholesaling, into TBC, a wholly owned subsidiary of Sumitomo Corporation of the Americas engaged in tire wholesaling and retailing, Michelin North America and Sumitomo Corporation of the Americas will each hold 50% of TBC's shares and jointly operate the company.」
Specific progress in TBC's business transformation was presented, including the strategic partnership with Michelin North America, the integration of Tire Center LLC, equal 50% shareholdings and joint operations. However, it was not stated that the risk of goodwill impairment had been eliminated. - FY2017First statedAnnual report
「For TBC, the business plan used in the impairment assessment may change depending on the progress of the business transformation currently under way, and such changes could result in impairment.」
For TBC, we newly stated that changes in the business plan resulting from progress in the business transformation could lead to goodwill impairment.