Nidec (NJ) Includes JPY 19.25B Charge in Results from Thai Floods
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Nidec Corporation (NYSE: NJ) reports that the following impact associated with the flooding that occurred in Thailand in October 2011 was included in its consolidated financial statements as of and for the nine months ended December 31, 2011:
Description of the Impact
The flooding in Thailand caused water damage to buildings, machinery, and other property, plant and equipment as well as inventories at some of the Company's subsidiaries. Due to the water damage to the fixed assets inventories and power outages caused by the flooding, these subsidiaries temporarily suspended their operations. The Company recognized a loss of JPY 19,251 million associated with the water damage to the fixed assets and inventories.
The Company estimated as of December 31, 2011, that insurance payments to be received under the property damage insurance policies the Company holds would exceed the loss of JPY 19,251 million relating to the fixed assets and inventories, and the amount of the insurance payments estimated as of December 31, 2011, exceeding the loss was recorded as part of operating income presented in the Company's consolidated income statements for the nine months ended December 31, 2011. The Company is currently in the process of estimating the aggregate realizable insurance payments for the physical damage to the fixed assets and inventories.
All of the Company's manufacturing facilities in Thailand, including those which temporarily suspended operations due to the flooding, have already resumed operations. The Company currently expects that the loss relating to the fixed assets and inventories described above will be covered by its insurance policies, and that the above loss amount will not have a significant impact on the Company's consolidated financial performance for the fiscal year ending March 31, 2012.
Description of the Impact
The flooding in Thailand caused water damage to buildings, machinery, and other property, plant and equipment as well as inventories at some of the Company's subsidiaries. Due to the water damage to the fixed assets inventories and power outages caused by the flooding, these subsidiaries temporarily suspended their operations. The Company recognized a loss of JPY 19,251 million associated with the water damage to the fixed assets and inventories.
The Company estimated as of December 31, 2011, that insurance payments to be received under the property damage insurance policies the Company holds would exceed the loss of JPY 19,251 million relating to the fixed assets and inventories, and the amount of the insurance payments estimated as of December 31, 2011, exceeding the loss was recorded as part of operating income presented in the Company's consolidated income statements for the nine months ended December 31, 2011. The Company is currently in the process of estimating the aggregate realizable insurance payments for the physical damage to the fixed assets and inventories.
All of the Company's manufacturing facilities in Thailand, including those which temporarily suspended operations due to the flooding, have already resumed operations. The Company currently expects that the loss relating to the fixed assets and inventories described above will be covered by its insurance policies, and that the above loss amount will not have a significant impact on the Company's consolidated financial performance for the fiscal year ending March 31, 2012.
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