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  "documentTitle": "Nidec Corp. (6594 JP)",
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  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-13 00:00:00",
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  "notes": "The slide uses direct quotes from management to highlight a discrepancy between past optimistic outlooks and later financial actions.",
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      "kind": "callout",
      "text": "As of the Q2 2012 call, Mr. Nagamori stated that Nidec “was not thinking of taking any tests for impairment to take place.”",
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      "text": "As of the Q1 2012 call, management expected to be able to manufacture more high margin HDD products without incurring additional capex. This indicates that there could be no reason to impair HDD PP&E.",
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      "text": "On the Q2 2012 call, Mr. Nagamori stated that Nidec “was not thinking of taking any tests for impairment to take place.”",
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      "text": "As of the Q1 2012 call, management felt the HDD industry was headed in a “much more healthier direction”, and Nidec apparently had little excess inventory.",
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      "text": "As of the Q2 2012 call, Nidec did not expect a declining HDD market over the long-term.",
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      "kind": "paragraph",
      "text": "interpretations, it is very difficult to see how the environment necessitated PP&E impairments or inventory write-offs. (The statements we interpret are provided in the accompanying footnotes.)",
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      "kind": "quote",
      "text": "“Rather than say that it's the volume, it's always better to move forward with a better product mix in terms of the profitability.” — Nagamori (Q1 2012 call). “I believe that the capacity question was in regard to spindle motors and in terms of excess capacity there, whereas there are three factories in Thailand currently, the idea is to reduce by one factory.” — Nagamori (Q2 2012 call).",
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      "text": "Footnotes 23-26 containing full management quotes.",
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