Nidec Announces the Record of Impairment Losses on Non-Financial Assets, Provisions for Loss of Contract, Liabilities Related to the Settlement of Claims From Suppliers and Special Investigation and Related Expenses
Automotive contract-loss provisions reflect unavoidable costs exceeding the economic benefits expected under customer contracts.
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The Company sincerely apologizes for any inconvenience and concern this may cause to our shareholders, investors and other stakeholders.
1. The record of impairment losses on non-financial assets, provisions for loss of contract, liabilities related to the settlement of claims from suppliers and special investigation and related expenses
(1) Impairment losses on non-financial assets
As a result of evaluating the future recoverability of certain assets including goodwill, the Company recorded impairment losses of
(2) Provisions for loss of contract
In AMEC segment (Automotive products), based on contracts with customers, as the unavoidable costs of meeting the obligations under the contracts exceed the economic benefits expected to be received under them, the Company recorded provisions for loss of contract of
(3) Liabilities related to the settlement of claims from suppliers
Regarding the reimbursement claims from supplier, the Company has recorded indemnification liability of
(4) Special investigation and related expenses
As announced in “Notice Regarding Recording of Extraordinary Losses and Gains in Non-Consolidated Financial Results” dated today, expenses incurred for the investigations into this series of issues and the subsequent review of financial statements were recorded as extraordinary losses as “Special investigations and related expenses” of
2. Future outlook
The impairment losses on non-financial assets, provisions for loss of contract, liabilities related to the settlement of claims from suppliers and special investigation and related expenses have been reflected in the Annual Securities Report for the Fiscal Year Ended March 31, 2026, and the Financial Statements Summary for the Year Ended March 31, 2026 [IFRS] (Consolidated), both disclosed today.
The Company also will make a disclosure promptly if any matters requiring disclosure arise in the future.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260930616637/en/
Teruaki Urago
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com
Source: Nidec Corporation