Risk of Guarantee Obligations Due to a Decline in the Employee Stock Ownership Trust’s Share Price
First written in FY2019-Q2. 10 of 25 entries say "Restated". Latest entry: FY2027-H1.
8 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The employee shareholding trust launched in March 2024 also continues to include a guarantee provision under which the Company will repay the trust's outstanding liabilities if its share price declines. - FY2026-H1MitigatedAnnual report
「Reversal of provision for losses on guarantees － 3」
A ¥3 million reversal of the provision for losses on guarantees was recorded for guarantee liabilities related to the new employee shareholding trust, reducing the provision balance on the balance sheet to zero. - FY2025MaterialisedAnnual report
「Provision for losses on guarantees 3,205」
A ¥3.205 million provision for losses on guarantees was recorded for the risk of the Company guaranteeing the new employee shareholding trust's liabilities if its share price declines. This represents the expected loss burden, rather than an actual payment. - FY2025-H1RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The new employee shareholding trust launched in March 2024 also continues to include a guarantee provision under which the Company will repay the trust's outstanding liabilities if its share price declines. - FY2025-Q1RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The new employee shareholding trust launched in March 2024 also continues to include a guarantee provision under which the Company will repay the trust's outstanding liabilities if its share price declines. - FY2024ReframedAnnual report
「Because the Company guarantees borrowings used by the employee shareholding trust to acquire the Company's shares, a decline in the Company's share price causes losses equivalent to losses on share sales to accumulate within the trust. If borrowings remain outstanding in the trust at the end of the trust period in an amount equivalent to those losses on share sales, the Company is required to repay the outstanding balance under the guarantee agreement.」
After the former E-Ship ended, a guarantee provision for borrowings to acquire shares was established for the new E-Ship. The total acquisition price was ¥827 million, and the trust period was set from 15 March 2024 to 7 March 2029. - FY2024-Q3MitigatedAnnual report
「Reversal of provision for losses on guarantees 32,238 15,452」
Reversals of the provision for losses on guarantee liabilities related to the employee shareholding trust continued to be recorded, declining from ¥32.238 million in the same period of the previous year to ¥15.452 million. The provision for losses on guarantees on the balance sheet also fell to zero. - FY2024-Q2MitigatedAnnual report
「Although extraordinary losses were recorded from the valuation loss on investment securities, extraordinary income was also recorded from the reversal of the provision for losses on guarantees. As a result, net extraordinary income was a profit of ¥3 million, down 23.5% year on year.」
Reversals of the provision for losses on guarantees continued to be recorded, and the improvement from the recognition of losses related to guarantee liabilities for the employee shareholding trust continued. - FY2024-Q1RestatedAnnual report
「Net extraordinary income was ¥13 million, following the recognition of extraordinary income from the reversal of the provision for losses on guarantees, up 1,410.1% year on year.」
Reversals of the provision for losses on guarantees related to the employee shareholding trust continued to be recorded, and the improvement from guarantee-related losses incurred in prior fiscal years continued. - FY2023MitigatedAnnual report
「Extraordinary income Gain on sale of investment securities 5,387 Reversal of provision for losses on guarantees 13,709」
The provision for losses on guarantees related to the employee shareholding trust changed from an expense of ¥74.454 million in the previous fiscal year to a reversal of ¥13.709 million in the current fiscal year. The provision balance on the balance sheet also declined to ¥60.745 million. - FY2023-Q3RestatedAnnual report
「Although extraordinary losses were recorded from the valuation loss on investment securities, extraordinary income was also recorded from the reversal of the provision for losses on guarantees. As a result, net extraordinary income was a profit of ¥7 million, down 40.1% year on year,」
Reversals of the provision for losses on guarantees related to the employee shareholding trust continued to be recorded, and the improvement from guarantee-related losses incurred in prior fiscal years continued. - FY2023-Q2MitigatedAnnual report
「Although extraordinary losses were recorded from the valuation loss on investment securities, extraordinary income was also recorded from the reversal of the provision for losses on guarantees. As a result, net extraordinary income was a profit of ¥5 million, down 59.5% year on year.」
A ¥32.888 million reversal of the provision for losses on guarantees related to the employee shareholding trust was recorded, and the improvement from guarantee-related losses incurred in prior fiscal years continued. - FY2023-Q1MitigatedAnnual report
「Although extraordinary income was recorded from the reversal of the provision for losses on guarantees, extraordinary losses were also recorded from the valuation loss on investment securities. As a result, net extraordinary income, after deducting extraordinary losses from extraordinary income, was ¥0 million.」
A reversal of the provision for losses on guarantees related to the employee shareholding trust was recorded, improving the position from the recognition of guarantee-related losses incurred in the previous fiscal year. However, the reintroduced employee shareholding trust continues to include a guarantee provision. - FY2022MaterialisedAnnual report
「Provision for losses on guarantees 74,454」
The risk of guaranteeing the employee shareholding trust's liabilities if the share price declines appeared as a ¥74.454 million provision for losses on guarantees for the full year. - FY2022-Q3ReframedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
Following the reintroduction of the employee shareholding incentive plan, the disclosure states that the risk of the Company guaranteeing repayment of the trust's liabilities if its share price declines also applies to the new trust. - FY2022-Q2MitigatedAnnual report
「The adjustment to income taxes and other taxes was ¥84 million, down 71.8% from the same quarter of the previous year.」
The ¥51.348 million provision for losses on guarantees recognized in the same period of the previous year was no longer recorded in the cumulative second quarter, and no loss related to the risk of guarantee liabilities for the employee shareholding trust was recognized in the quarter. - FY2021-Q3MaterialisedAnnual report
「Provision for loss on guarantees 43,204」
The guarantee obligation risk associated with a share-price decline in connection with the Employee Shareholding Trust was actually recorded as ¥43.204 million in provision for loss on guarantees during the cumulative third quarter of the current fiscal year. - FY2021-Q2MaterialisedAnnual report
「Provision for loss on guarantees 51,348」
The guarantee obligation risk disclosed in connection with the Employee Shareholding Trust in the event of a share-price decline also appeared as ¥51.348 million in provision for loss on guarantees during the cumulative second quarter of the current fiscal year. - FY2021-Q1MaterialisedAnnual report
「Provision for loss on guarantees 50,163」
The Company recorded ¥50.163 million as provision for loss on guarantees during the cumulative first quarter of the current consolidated fiscal year, reflecting the guarantee obligation risk previously disclosed in connection with the Employee Shareholding Trust. - FY2020RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The guarantee obligation risk that the Company will repay the bank if liabilities remain due to a decline in the Employee Shareholding Trust’s share price continues. - FY2020-Q3RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The guarantee obligation risk that the Company will repay the bank if liabilities remain due to a decline in the Employee Shareholding Trust’s share price continues to be disclosed. - FY2020-Q2RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The guarantee obligation risk that the Company will repay the bank if liabilities remain due to a decline in the Employee Shareholding Trust’s share price continues to be disclosed. - FY2020-Q1RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The guarantee obligation risk that the Company will repay the bank if liabilities remain due to a decline in the Employee Shareholding Trust’s share price continues to be disclosed. - FY2019-Q3RestatedAnnual report
「If a decline in the share price results in losses on the transfer of shares or other losses and liabilities remain in the trust assets, the Company will make a lump-sum repayment to the bank under the guarantee provisions of the loan agreement.」
The guarantee obligation risk that the Company will repay the bank if liabilities remain in the trust assets due to a decline in the Employee Shareholding Trust’s share price continues to be disclosed. - FY2019-Q2First statedAnnual report
「The Company guarantees borrowings incurred by the Employee Shareholding Trust to acquire the Company’s shares. If a decline in the Company’s share price causes losses on the sale of shares to accumulate in the Employee Shareholding Trust and borrowings remain at the end of the trust equivalent to those losses, the Company will repay the remaining borrowings under the guarantee provisions of the loan agreement.」
The Company guarantees borrowings for share acquisitions by the Employee Shareholding Trust and may be required to repay any remaining debt at the end of the trust if the share price declines.