Deterioration in Store Cash Flows and Impairment of Fixed Assets
First written in FY2016. 8 of 12 entries say "Materialised", first in FY2017. Latest entry: FY2026.
Kintetsu Department Store moved to the "Worse" side of this theme in 2017, 1 year before the typical company in this theme (2018).
The whole theme swung hardest in 2017: 10 of 13 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For Yokkaichi Store, an impairment loss was recognized because operating losses were expected to continue in the current period and thereafter. For Nara Store, an impairment loss was recognized because the operating environment was expected to deteriorate significantly. For Nagoya Store, an impairment loss was recognized because a decision had been made to close the store. The carrying amounts of the asset groups were reduced to their recoverable amounts.」
Impairment losses totaling ¥4,906 million were recorded, including ¥2,731 million for Yokkaichi Store, ¥1,582 million for Nara Store and ¥592 million for Nagoya Store. - FY2026-H1MaterialisedAnnual report
「Impairment loss 592」
An impairment loss of ¥592 million was recorded for the interim consolidated accounting period, showing that the impairment risk associated with deteriorating cash flow at stores and other locations and declining asset values had materialized in the accounting treatment. - FY2025MitigatedAnnual report
「No impairment loss was recorded during the consolidated fiscal year under review because no indication of impairment was identified.」
It stated that no impairment loss was recorded during the consolidated fiscal year under review in relation to the risk of fixed asset impairment due to deteriorating store cash flow and other factors. - FY2021-Q1WorsenedAnnual report
「In preparing the quarterly consolidated financial statements, accounting estimates were made for fixed asset impairment and the recoverability of deferred tax assets, based on the assumption that the impact of declining sales would continue through the first half of the following consolidated fiscal year. Although the best estimates were made based on information available at the time the quarterly consolidated financial statements were prepared, the assumptions used in the estimates are inherently uncertain. Accordingly, changes in the timing of the containment of COVID-19 or its impact on the economic environment may affect the financial position and operating results of the Group.」
Based on the assumption that the decline in sales caused by COVID-19 would continue through the first half of the following consolidated fiscal year, estimates were made for fixed asset impairment, with additional uncertainty arising from changes in the timing of containment and other factors. - FY2020MaterialisedAnnual report
「For Star Island, an impairment loss was recognized because its closure had been decided. For the other assets, an impairment loss was recognized because a decline in recoverable amount was identified following a change in the scope of use. The carrying amounts of the asset groups were reduced to their recoverable amounts.」
An impairment loss of ¥274 million was recorded during the fiscal year under review, mainly due to the decision to close Star Island. The impairment risk arising from deteriorating store cash flow and other factors newly emerged in the full-year results. - FY2020-Q2MaterialisedAnnual report
「In addition, ¥270 million in losses on the disposal of fixed assets and other assets and ¥141 million in impairment losses were recorded as extraordinary losses. Profit for the quarter attributable to owners of the parent, after adjusting for income taxes and other items, was ¥1,622 million, down 15.0% year on year.」
An impairment loss of ¥141 million on fixed assets was recorded, meaning that the risk of impairment of fixed assets at stores and other locations materialized during the quarter. - FY2019RestatedAnnual report
「If land prices decline significantly, or if store cash flow deteriorates substantially due to intensifying competition or other factors, additional impairment losses may arise.」
The risk of fixed asset impairment due to deteriorating store cash flow and falling land prices continues to be disclosed as an accounting estimate. - FY2018MaterialisedAnnual report
「For Ikoma Store, an impairment loss was recognized because a significant decline in fair value was identified following a review of the asset grouping accompanying the restructuring of the merchandise policy. For the other assets, an impairment loss was recognized because profitability deteriorated. The carrying amounts of the asset groups were reduced to their recoverable amounts.」
Impairment losses of ¥2,957 million were recorded for land, buildings and other assets at Ikoma Store and ¥23 million for other assets, totaling ¥2,981 million. A review of the asset grouping accompanying the formulation of the store renovation policy, together with declining fair values and deteriorating profitability, led to the actual recognition of impairment losses. - FY2017MaterialisedAnnual report
「For Wakayama Store, an impairment loss was recognized because profitability deteriorated, while for Yokkaichi Workshop, an impairment loss was recognized because reduced opportunities for use made it an idle asset. The carrying amounts of the asset groups were reduced to their recoverable amounts.」
The risk of fixed asset impairment due to deteriorating store cash flow and other factors materialized, and impairment losses of ¥737 million for Wakayama Store and ¥161 million for Yokkaichi Workshop, totaling ¥899 million, were recorded. - FY2016First statedAnnual report
「If land prices decline significantly, or if store cash flow deteriorates substantially due to intensifying competition or other factors, additional impairment losses may arise.」
Given its structure of owning numerous stores, it cites impairment resulting from falling land prices, intensifying competition and deteriorating store profitability.