Changes in the method of recording costs related to decommissioning specified nuclear power facilities

「As a result, during the current consolidated fiscal year, assets corresponding to asset retirement obligations and asset retirement obligations were each reduced by ¥44,058 million. Under Article 10, paragraph 1 of the supplementary provisions of the amended Act, the total amount of money payable to the organization to fund the costs required for decommissioning operations, ¥240,770 million, is recognized as unpaid decommissioning contributions under Article 7 of the supplementary provisions of the amended ministerial ordinance, and the amount is recognized as an expense. Under the same provision, however, the amount by which asset retirement obligations were reduced is deducted from that expense.」

「As a result, during the current interim consolidated accounting period, assets corresponding to asset retirement obligations and asset retirement obligations were each reduced by ¥44,058 million. Under Article 10, paragraph 1 of the supplementary provisions of the amended Act, the total amount of money payable to the organization to fund the costs required for decommissioning operations, ¥240,770 million, is recognized as unpaid decommissioning contributions under Article 7 of the supplementary provisions of the amended ministerial ordinance, and the amount is recognized as an expense. Under the same provision, however, the amount by which asset retirement obligations were reduced is deducted from that expense.」

「As a result, compared with the previous method, operating income, ordinary income and net income before income taxes for the current consolidated fiscal year each decreased by ¥3,195 million. The expected period of use used to calculate asset retirement obligations related to the decommissioning of specified nuclear power facilities had previously been the operating period plus the safe-storage period, but from the effective date of the amended ordinance it was changed to the operating period. As a result, asset retirement obligations and assets corresponding to asset retirement obligations included in nuclear power generation facilities each increased by ¥32,979 million.」

「As a result, compared with the previous method, operating income, ordinary income and quarterly net income before income taxes for the cumulative third quarter of the current consolidated fiscal year each decreased by ¥2,396 million.」

「As a result, compared with the previous method, operating income, ordinary income and quarterly net income before income taxes for the cumulative second quarter of the current consolidated fiscal year each decreased by ¥1,597 million. The expected period of use used to calculate asset retirement obligations related to the decommissioning of specified nuclear power facilities had previously been the operating period plus the safe-storage period, but from the effective date of the amended ordinance it was changed to the operating period. As a result, asset retirement obligations and assets corresponding to asset retirement obligations included in nuclear power generation facilities each increased by ¥32,979 million.」

「For the method of recording costs for the asset retirement obligation equivalent assets related to the decommissioning of specified nuclear power facilities included in property, plant and equipment, we had recorded the total estimated decommissioning cost of nuclear power facilities on a straight-line basis over the operating period plus the safe storage period, in accordance with the Ordinance on Provision for the Decommissioning of Nuclear Power Facilities (Ordinance No. 30 of the Ministry of International Trade and Industry, 25 May 1989). However, following the amendment of that ordinance by the Ordinance Partially Amending the Ordinance on Provision for the Decommissioning of Nuclear Power Facilities and Other Matters (Ordinance No. 17 of the Ministry of Economy, Trade and Industry, 30 March 2018), which came into force on 1 April 2018, we changed the method of recording costs on a straight-line basis over the operating period from the effective date. As a result, compared with the previous method, operating profit, ordinary profit and profit before income taxes for the first quarter of the current consolidated cumulative period each decreased by ¥798 million. The expected period of use used to calculate the asset retirement obligation related to the decommissioning of specified nuclear power facilities had previously been the operating period plus the safe storage period, but was changed to the operating period from the effective date. As a result, the asset retirement obligation and the asset retirement obligation equivalent assets included in nuclear power facilities each increased by ¥32,979 million.」