Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | CAJ |
Entity Registrant Name | CANON INC |
Entity Central Index Key | 16,988 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,092,072,624 |
Consolidated Balance Sheets
Consolidated Balance Sheets - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents (Note 1) | ¥ 633,613 | ¥ 844,580 |
Short-term investments (Note 2) | 20,651 | 71,863 |
Trade receivables, net (Note 3) | 588,001 | 625,675 |
Inventories (Note 4) | 501,895 | 528,167 |
Prepaid expenses and other current assets (Notes 6, 12 and 17) | 313,019 | 321,648 |
Total current assets | 2,057,179 | 2,391,933 |
Noncurrent receivables (Note 18) | 29,476 | 29,785 |
Investments (Note 2) | 67,862 | 65,176 |
Property, plant and equipment, net (Notes 5 and 6) | 1,219,652 | 1,269,529 |
Intangible assets, net (Notes 7 and 8) | 241,208 | 177,288 |
Goodwill (Notes 7 and 8) | 478,943 | 211,336 |
Other assets (Notes 6, 11 and 12) | 333,453 | 315,571 |
Total assets | 4,427,773 | 4,460,618 |
Current liabilities: | ||
Short-term loans and current portion of long-term debt (Note 9) | 688 | 1,018 |
Trade payables (Note 10) | 278,255 | 310,214 |
Accrued income taxes (Note 12) | 47,431 | 57,212 |
Accrued expenses (Notes 11 and 18) | 317,653 | 345,237 |
Other current liabilities (Notes 5, 12 and 17) | 171,302 | 207,698 |
Total current liabilities | 815,329 | 921,379 |
Long-term debt, excluding current installments (Note 9) | 881 | 1,148 |
Accrued pension and severance cost (Note 11) | 296,262 | 280,928 |
Other noncurrent liabilities (Note 7 and 12) | 130,838 | 116,405 |
Total liabilities | ¥ 1,243,310 | ¥ 1,319,860 |
Commitments and contingent liabilities (Note 18) | ||
Canon Inc. shareholders' equity: | ||
Common stock Authorized 3,000,000,000 shares; issued 1,333,763,464 shares in 2015 and 2014 | ¥ 174,762 | ¥ 174,762 |
Additional paid-in capital | 401,358 | 401,563 |
Legal reserve (Note 13) | 65,289 | 64,599 |
Retained earnings (Note 13) | 3,365,158 | 3,320,392 |
Accumulated other comprehensive income (loss) (Note 14) | (29,742) | 28,286 |
Treasury stock, at cost; 241,690,840 shares in 2015 and 241,931,637 shares in 2014 | (1,010,410) | (1,011,418) |
Total Canon Inc. shareholders' equity | 2,966,415 | 2,978,184 |
Noncontrolling interests | 218,048 | 162,574 |
Total equity | 3,184,463 | 3,140,758 |
Total liabilities and equity | ¥ 4,427,773 | ¥ 4,460,618 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued | 1,333,763,464 | 1,333,763,464 |
Treasury stock, shares | 241,690,840 | 241,931,637 |
Consolidated Statements of Inco
Consolidated Statements of Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | ¥ 3,800,271 | ¥ 3,727,252 | ¥ 3,731,380 |
Cost of sales (Notes 5, 8, 11 and 18) | 1,865,887 | 1,865,780 | 1,932,959 |
Gross profit | 1,934,384 | 1,861,472 | 1,798,421 |
Operating expenses (Notes 1, 5, 8, 11, 15 and 18): | |||
Selling, general and administrative expenses | 1,250,674 | 1,189,004 | 1,154,820 |
Research and development expenses | 328,500 | 308,979 | 306,324 |
Operating Expenses, Total | 1,579,174 | 1,497,983 | 1,461,144 |
Operating profit | 355,210 | 363,489 | 337,277 |
Other income (deductions): | |||
Interest and dividend income | 5,501 | 7,906 | 6,579 |
Interest expense | (584) | (500) | (550) |
Other, net (Notes 1, 2 and 17) | (12,689) | 12,344 | 4,298 |
Nonoperating Income (Expense), Total | (7,772) | 19,750 | 10,327 |
Income before income taxes | 347,438 | 383,239 | 347,604 |
Income taxes (Note 12) | 116,105 | 118,000 | 108,088 |
Consolidated net income | 231,333 | 265,239 | 239,516 |
Less: Net income attributable to noncontrolling interests | 11,124 | 10,442 | 9,033 |
Net income attributable to Canon Inc. | ¥ 220,209 | ¥ 254,797 | ¥ 230,483 |
Net income attributable to Canon Inc. shareholders per share (Note 16): | |||
Basic | ¥ 201.65 | ¥ 229.03 | ¥ 200.78 |
Diluted | 201.65 | 229.03 | 200.78 |
Cash dividends per share | ¥ 150 | ¥ 150 | ¥ 130 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated net income | ¥ 231,333 | ¥ 265,239 | ¥ 239,516 |
Other comprehensive income (loss), net of tax (Note 14): | |||
Foreign currency translation adjustments | (55,504) | 143,834 | 251,576 |
Net unrealized gains and losses on securities | 2,010 | 2,524 | 6,612 |
Net gains and losses on derivative instruments | 2,785 | (195) | 2,056 |
Pension liability adjustments | (6,543) | (37,985) | 32,669 |
Other comprehensive income (loss), Net-of-tax amount | (57,252) | 108,178 | 292,913 |
Comprehensive income | 174,081 | 373,417 | 532,429 |
Less: Comprehensive income attributable to noncontrolling interests | 11,973 | 9,666 | 14,688 |
Comprehensive income attributable to Canon Inc. | ¥ 162,108 | ¥ 363,751 | ¥ 517,741 |
Consolidated Statements of Equi
Consolidated Statements of Equity - JPY (¥) ¥ in Millions | Total | Common stock | Additional paid-in capital | Legal reserve | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total Canon Inc. shareholders' equity | Non- controlling interests |
Beginning Balance at Dec. 31, 2012 | ¥ 2,754,302 | ¥ 174,762 | ¥ 401,547 | ¥ 61,663 | ¥ 3,138,976 | ¥ (367,249) | ¥ (811,673) | ¥ 2,598,026 | ¥ 156,276 |
Equity transactions with noncontrolling interests and other | (11,053) | 489 | 295 | (655) | 129 | (11,182) | |||
Dividends to Canon Inc. shareholders | (155,627) | (155,627) | (155,627) | ||||||
Dividends to noncontrolling interests | (3,267) | (3,267) | |||||||
Transfer to legal reserve | 1,428 | (1,428) | |||||||
Comprehensive income: | |||||||||
Net income | 239,516 | 230,483 | 230,483 | 9,033 | |||||
Other comprehensive income (loss), net of tax (Note 14): | |||||||||
Foreign currency translation adjustments | 251,576 | 249,791 | 249,791 | 1,785 | |||||
Net unrealized gains and losses on securities | 6,612 | 6,097 | 6,097 | 515 | |||||
Net gains and losses on derivative instruments | 2,056 | 2,056 | 2,056 | ||||||
Pension liability adjustments | 32,669 | 29,314 | 29,314 | 3,355 | |||||
Comprehensive income | 532,429 | 517,741 | 14,688 | ||||||
Repurchases and reissuance of treasury stock | (50,007) | (7) | (7) | (49,993) | (50,007) | ||||
Ending Balance at Dec. 31, 2013 | 3,066,777 | 174,762 | 402,029 | 63,091 | 3,212,692 | (80,646) | (861,666) | 2,910,262 | 156,515 |
Equity transactions with noncontrolling interests and other | (884) | (420) | 216 | (22) | (226) | (658) | |||
Dividends to Canon Inc. shareholders | (145,790) | (145,790) | (145,790) | ||||||
Dividends to noncontrolling interests | (2,949) | (2,949) | |||||||
Transfer to legal reserve | 1,508 | (1,508) | |||||||
Comprehensive income: | |||||||||
Net income | 265,239 | 254,797 | 254,797 | 10,442 | |||||
Other comprehensive income (loss), net of tax (Note 14): | |||||||||
Foreign currency translation adjustments | 143,834 | 142,813 | 142,813 | 1,021 | |||||
Net unrealized gains and losses on securities | 2,524 | 2,301 | 2,301 | 223 | |||||
Net gains and losses on derivative instruments | (195) | (195) | (195) | ||||||
Pension liability adjustments | (37,985) | (35,965) | (35,965) | (2,020) | |||||
Comprehensive income | 373,417 | 363,751 | 9,666 | ||||||
Repurchases and reissuance of treasury stock | (149,813) | (46) | (15) | (149,752) | (149,813) | ||||
Ending Balance at Dec. 31, 2014 | 3,140,758 | 174,762 | 401,563 | 64,599 | 3,320,392 | 28,286 | (1,011,418) | 2,978,184 | 162,574 |
Equity transactions with noncontrolling interests and other | (29,583) | (29) | 73 | 44 | (29,627) | ||||
Dividends to Canon Inc. shareholders | (174,711) | (174,711) | (174,711) | ||||||
Dividends to noncontrolling interests | (3,958) | (3,958) | |||||||
Acquisition of subsidiaries | 77,086 | 77,086 | |||||||
Transfer to legal reserve | 690 | (690) | |||||||
Comprehensive income: | |||||||||
Net income | 231,333 | 220,209 | 220,209 | 11,124 | |||||
Other comprehensive income (loss), net of tax (Note 14): | |||||||||
Foreign currency translation adjustments | (55,504) | (57,592) | (57,592) | 2,088 | |||||
Net unrealized gains and losses on securities | 2,010 | 1,509 | 1,509 | 501 | |||||
Net gains and losses on derivative instruments | 2,785 | 2,785 | 2,785 | ||||||
Pension liability adjustments | (6,543) | (4,803) | (4,803) | (1,740) | |||||
Comprehensive income | 174,081 | 162,108 | 11,973 | ||||||
Repurchases and reissuance of treasury stock | 790 | (176) | (42) | 1,008 | 790 | ||||
Ending Balance at Dec. 31, 2015 | ¥ 3,184,463 | ¥ 174,762 | ¥ 401,358 | ¥ 65,289 | ¥ 3,365,158 | ¥ (29,742) | ¥ (1,010,410) | ¥ 2,966,415 | ¥ 218,048 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Consolidated net income | ¥ 231,333 | ¥ 265,239 | ¥ 239,516 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
Depreciation and amortization | 273,327 | 263,480 | 275,173 |
Loss on disposal of fixed assets | 7,975 | 12,429 | 10,638 |
Equity in (earnings) losses of affiliated companies | (447) | (478) | 664 |
Deferred income taxes | 4,672 | 8,929 | 16,791 |
Decrease in trade receivables | 22,720 | 9,323 | 45,040 |
Decrease in inventories | 14,249 | 59,004 | 85,577 |
Decrease in trade payables | (17,288) | (24,620) | (108,622) |
Increase (decrease) in accrued income taxes | (8,731) | 3,586 | (9,432) |
Increase (decrease) in accrued expenses | (25,529) | 11,124 | (15,635) |
Increase (decrease) in accrued (prepaid) pension and severance cost | 4,622 | (6,305) | (15,568) |
Other, net | (32,179) | (17,784) | (16,500) |
Net cash provided by operating activities | 474,724 | 583,927 | 507,642 |
Cash flows from investing activities: | |||
Purchases of fixed assets (Note 5) | (252,948) | (218,362) | (233,175) |
Proceeds from sale of fixed assets (Note 5) | 3,824 | 3,994 | 1,763 |
Purchases of available-for-sale securities | (98) | (311) | (5,771) |
Proceeds from sale and maturity of available-for-sale securities | 804 | 2,606 | 4,528 |
(Increase) decrease in time deposits, net | 47,665 | (14,223) | (12,483) |
Acquisitions of businesses, net of cash acquired (Note 7) | (251,534) | (54,772) | (4,914) |
Purchases of other investments | (1,220) | (296) | |
Other, net | (112) | 11,770 | 136 |
Net cash used in investing activities | (453,619) | (269,298) | (250,212) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 717 | 1,377 | 1,483 |
Repayments of long-term debt | (1,350) | (2,152) | (2,334) |
Decrease in short-term loans, net | (54) | (547) | |
Purchases of noncontrolling interests | (29,570) | (2,616) | |
Dividends paid | (174,711) | (145,790) | (155,627) |
Repurchases and reissuance of treasury stock | 790 | (149,813) | (50,007) |
Other, net | (6,078) | (4,454) | (12,533) |
Net cash used in financing activities | (210,202) | (300,886) | (222,181) |
Effect of exchange rate changes on cash and cash equivalents | (21,870) | 41,928 | 86,982 |
Net change in cash and cash equivalents | (210,967) | 55,671 | 122,231 |
Cash and cash equivalents at beginning of year | 844,580 | 788,909 | 666,678 |
Cash and cash equivalents at end of year | 633,613 | 844,580 | 788,909 |
Cash paid during the year for: | |||
Interest | 653 | 462 | 500 |
Income taxes | ¥ 117,643 | ¥ 111,819 | ¥ 108,950 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies | 1. Basis of Presentation and Significant Accounting Policies (a) Description of Business Canon Inc. (the “Company”) and subsidiaries (collectively “Canon”) is one of the world’s leading manufacturers in such fields as office products, imaging system products and industry and other products. Office products consist mainly of office multifunction devices (“MFDs”), laser multifunction printers (“MFPs”), laser printers, digital production printing systems, high speed continuous feed printers, wide-format printers and document solutions. Imaging system products consist mainly of interchangeable lens digital cameras, digital compact cameras, digital camcorders, digital cinema cameras, interchangeable lenses, compact photo printers, inkjet printers, large-format inkjet printers, commercial photo printers, image scanners, multimedia projectors, broadcast equipment and calculators. Industry and other products consist mainly of semiconductor lithography equipment, FPD (Flat panel display) lithography equipment, digital radiography systems, ophthalmic equipment, vacuum thin-film deposition equipment, organic LED (“OLED”) panel manufacturing equipment, die bonders, micromotors, network cameras, handy terminals and document scanners. Canon’s consolidated net sales for the years ended December 31, 2015, 2014 and 2013 were distributed as follows: the Office Business Unit 55.5%, 55.8% and 53.6%, the Imaging System Business Unit 33.3%, 36.0% and 38.8%, the Industry and Others Business Unit 13.8%, 10.7% and 10.0%, and elimination between segments 2.6%, 2.5% and 2.4%, respectively. These percentages were computed by dividing segment net sales, including intersegment sales, by consolidated net sales, based on the segment operating results described in Note 21. Sales are made principally under the Canon brand name, almost entirely through sales subsidiaries. These subsidiaries are responsible for marketing and distribution, and primarily sell to retail dealers in their geographic area. 81.2%, 80.6% and 80.8% of consolidated net sales for the years ended December 31, 2015, 2014 and 2013 were generated outside Japan, with 30.1%, 27.8% and 28.4% in the Americas, 28.3%, 29.3% and 30.1% in Europe, and 22.8%, 23.5% and 22.3% in Asia and Oceania, respectively. Canon sells laser printers on an OEM basis to HP Inc.; such sales constituted 17.8%, 17.4% and 17.6% of consolidated net sales for the years ended December 31, 2015, 2014 and 2013, respectively, and are included in the Office Business Unit. Canon’s manufacturing operations are conducted primarily at 28 plants in Japan and 18 overseas plants which are located in countries or regions such as the United States, Germany, France, the Netherlands, Taiwan, China, Malaysia, Thailand, Vietnam and Philippines. (b) Basis of Presentation The Company and its domestic subsidiaries maintain their books of account in conformity with financial accounting standards of Japan. Foreign subsidiaries maintain their books of account in conformity with financial accounting standards of the countries of their domicile. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform with U.S. generally accepted accounting principles (“GAAP”). These adjustments were not recorded in the statutory books of account. (c) Principles of Consolidation The consolidated financial statements include the accounts of the Company, its majority owned subsidiaries and those variable interest entities where the Company or its consolidated subsidiaries are the primary beneficiaries. All significant intercompany balances and transactions have been eliminated. (d) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions are reflected in valuation and disclosure of revenue recognition, allowance for doubtful receivables, inventories, long-lived assets, goodwill and other intangible assets with indefinite useful lives, environmental liabilities, deferred tax assets, uncertain tax positions and employee retirement and severance benefit obligations. Actual results could differ materially from those estimates. (e) Translation of Foreign Currencies Assets and liabilities of the Company’s subsidiaries located outside Japan with functional currencies other than Japanese yen are translated into Japanese yen at the rates of exchange in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the year. Gains and losses resulting from translation of financial statements are excluded from earnings and are reported in other comprehensive income (loss). Gains and losses resulting from foreign currency transactions, including foreign exchange contracts, and translation of assets and liabilities denominated in foreign currencies are included in other income (deductions) in the consolidated statements of income. Foreign currency exchange gains and losses were a net loss of ¥22,149 million for the year ended December 31, 2015, a net gain of ¥2,628 million for the year ended December 31, 2014 and a net loss of ¥1,992 million for the year ended December 31, 2013, respectively. (f) Cash Equivalents All highly liquid investments acquired with original maturities of three months or less are considered to be cash equivalents. Certain debt securities with original maturities of less than three months, classified as available-for-sale securities of ¥80,870 million and ¥139,240 million at December 31, 2015 and 2014, respectively, are included in cash and cash equivalents in the consolidated balance sheets. (g) Investments Investments consist primarily of time deposits with original maturities of more than three months, debt and marketable equity securities, investments in affiliated companies and non-marketable equity securities. Canon reports investments with maturities of less than one year as short-term investments. Canon classifies investments in debt and marketable equity securities as available-for-sale or held-to-maturity Available-for-sale securities are recorded at fair value. Fair value is determined based on quoted market prices, projected discounted cash flows or other valuation techniques as appropriate. Unrealized holding gains and losses, net of the related tax effect, are reported as a separate component of accumulated other comprehensive income (loss) until realized. Held-to-maturity securities are recorded at amortized cost, adjusted for amortization of premiums and accretion of discounts. Available-for-sale and held-to-maturity securities are regularly reviewed for other-than-temporary declines in the carrying amount based on criteria that include the length of time and the extent to which the market value has been less than cost, the financial condition and near-term prospects of the issuer and Canon’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. For debt securities for which the declines are deemed to be other-than-temporary and there is no intent to sell, impairments are separated into the amount related to credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in other comprehensive income (loss). For debt securities for which the declines are deemed to be other-than-temporary and there is an intent to sell, impairments in their entirety are recognized in earnings. For equity securities for which the declines are deemed to be other-than-temporary, impairments in their entirety are recognized in earnings. Canon recognizes an impairment loss to the extent by which the cost basis of the investment exceeds the fair value of the investment. Realized gains and losses are determined by the average cost method and reflected in earnings. Investments in affiliated companies over which Canon has the ability to exercise significant influence, but does not hold a controlling financial interest, are accounted for by the equity method. Non-marketable equity securities in companies over which Canon does not have the ability to exercise significant influence are stated at cost and reviewed periodically for impairment. (h) Allowance for Doubtful Receivables Allowance for doubtful trade and finance receivables is maintained for all customers based on a combination of factors, including aging analysis, macroeconomic conditions and historical experience. An additional reserve for individual accounts is recorded when Canon becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. When all collection options are exhausted including legal recourse, the accounts or portions thereof are deemed to be uncollectable and charged against the allowance. (i) Inventories Inventories are stated at the lower of cost or market value. Cost is determined by the average method for domestic inventories and principally by the first-in, first-out method for overseas inventories. (j) Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment, and acquired intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset and the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. (k) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is calculated principally by the declining-balance method, except for certain assets which are depreciated by the straight-line method over the estimated useful lives of the assets. The depreciation period ranges from 3 years to 60 years for buildings and 1 year to 20 years for machinery and equipment. Assets leased to others under operating leases are stated at cost and depreciated to the estimated residual value of the assets by the straight-line method over the lease term, generally from 2 years to 5 years. (l) Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment annually in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. Canon performs its impairment test of goodwill using the two-step approach at the reporting unit level, which is one level below the operating segment level. All goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. If the carrying amount assigned to the reporting unit exceeds the fair value of the reporting unit, Canon performs the second step to measure an impairment charge in the amount by which the carrying amount of a reporting unit’s goodwill exceeds its implied fair value. Intangible assets with finite useful lives consist primarily of software, trademarks, patents and developed technology, license fees and customer relationships, which are amortized using the straight-line method. The estimated useful lives of software are from 3 years to 5 years, trademarks are 15 years, patents and developed technology are from 7 years to 16 years, license fees are 7 years, and customer relationships are from 8 years to 15 years, respectively. Certain costs incurred in connection with developing or obtaining internal-use software are capitalized. These costs consist primarily of payments made to third parties and the salaries of employees working on such software development. Costs incurred in connection with developing internal-use software are capitalized at the application development stage. In addition, Canon develops or obtains certain software to be sold where related costs are capitalized after establishment of technological feasibility. (m) Environmental Liabilities Liabilities for environmental remediation and other environmental costs are accrued when environmental assessments or remedial efforts are probable and the costs can be reasonably estimated. Such liabilities are adjusted as further information develops or circumstances change. Costs of future obligations are not discounted to their present values. (n) Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Canon records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not realizable. Canon recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the tax positions will be sustained upon examination by the tax authorities. Benefits from tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income taxes in the consolidated statements of income. (o) Stock-Based Compensation Canon measures stock-based compensation cost at the grant date, based on the fair value of the award, and recognizes the cost on a straight-line basis over the requisite service period, which is the vesting period. (p) Net Income Attributable to Canon Inc. Shareholders per Share Basic net income attributable to Canon Inc. shareholders per share is computed by dividing net income attributable to Canon Inc. by the weighted-average number of common shares outstanding during each year. Diluted net income attributable to Canon Inc. shareholders per share includes the effect from potential issuances of common stock based on the assumptions that all stock options were exercised. (q) Revenue Recognition Canon generates revenue principally through the sale of office and imaging system products, equipment, supplies, and related services under separate contractual arrangements. Canon recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title and risk of loss have been transferred to the customer or services have been rendered, the sales price is fixed or determinable, and collectibility is probable. Revenue from sales of office products, such as office MFDs and laser printers, and imaging system products, such as digital cameras and inkjet printers, is recognized upon shipment or delivery, depending upon when title and risk of loss transfer to the customer. Canon also offers separately priced product maintenance contracts for most office products, for which the customer typically pays a stated base service fee plus a variable amount based on usage. Revenue from these service maintenance contracts is measured at the stated amount of the contract and recognized as services are provided and variable amounts are earned. Revenue from the sale of equipment under sales-type leases is recognized at the inception of the lease. Income on sales-type leases and direct-financing leases is recognized over the life of each respective lease using the interest method. Leases not qualifying as sales-type leases or direct-financing leases are accounted for as operating leases and related revenue is recognized ratably over the lease term. When equipment leases are bundled with product maintenance contracts, revenue is allocated based upon the estimated relative fair value of the lease and non-lease deliverables. Lease deliverables generally include equipment, financing and executory costs, while non-lease deliverables generally consist of product maintenance contracts and supplies. Revenue from sales of optical equipment, such as semiconductor lithography equipment and FPD lithography equipment that are sold with customer acceptance provisions related to their functionality, is recognized when the equipment is installed at the customer site and the specific criteria of the equipment functionality are successfully tested and demonstrated by Canon. Service revenue is derived primarily from separately priced product maintenance contracts on equipment sold to customers and is measured at the stated amount of the contract and recognized as services are provided. For all other arrangements with multiple elements, Canon allocates revenue to each element based on its relative selling price if such element meets the criteria for treatment as a separate unit of accounting. Otherwise, revenue is deferred until the undelivered elements are fulfilled and accounted for as a single unit of accounting. Canon records estimated reductions to sales at the time of sale for sales incentive programs including product discounts, customer promotions and volume-based rebates. Estimated reductions to sales are based upon historical trends and other known factors at the time of sale. Canon regularly adjusts its estimates each period in the ordinary course of establishing sales incentive program accruals based on current information. Canon also provides price protection to certain resellers of its products, and records reductions to sales for the estimated impact of price protection obligations when announced. Estimated product warranty costs are recorded at the time revenue is recognized and are included in selling, general and administrative expenses in the consolidated statements of income. Estimates for accrued product warranty costs are based on historical experience, and are affected by ongoing product failure rates, specific product class failures outside of the baseline experience, material usage and service delivery costs incurred in correcting a product failure. Taxes collected from customers and remitted to governmental authorities are excluded from revenues in the consolidated statements of income. (r) Research and Development Costs Research and development costs are expensed as incurred. (s) Advertising Costs Advertising costs are expensed as incurred. Advertising expenses were ¥80,907 million, ¥79,765 million and ¥86,398 million for the years ended December 31, 2015, 2014 and 2013, respectively. (t) Shipping and Handling Costs Shipping and handling costs totaled ¥52,504 million, ¥49,576 million and ¥47,460 million for the years ended December 31, 2015, 2014 and 2013, respectively, and are included in selling, general and administrative expenses in the consolidated statements of income. (u) Derivative Financial Instruments All derivatives are recognized at fair value and are included in prepaid expenses and other current assets, or other current liabilities in the consolidated balance sheets. Canon uses and designates certain derivatives as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge). Canon formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. Canon also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, Canon discontinues hedge accounting prospectively. Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability in cash flows of the hedged item. Gains and losses from hedging ineffectiveness are included in other income (deductions). Gains and losses related to the components of hedging instruments excluded from the assessment of hedge effectiveness are included in other income (deductions). Canon also uses certain derivative financial instruments which are not designated as hedges. The changes in fair values of these derivative financial instruments are immediately recorded in earnings. Canon classifies cash flows from derivatives as cash flows from operating activities in the consolidated statements of cash flows. (v) Guarantees Canon recognizes, at the inception of a guarantee, a liability for the fair value of the obligation it has undertaken in issuing guarantees. (w) Recently Issued Accounting Guidance In September 2015, the Financial Accounting Standards Board (“FASB”) issued an amendment which requires an acquirer in a business combination to recognize the effect on earnings of any adjustments identified during the measurement period after an acquisition in the same period the adjustment is identified, as opposed to the prior guidance which required material adjustments be retrospectively adjusted. Canon adopted this amended guidance from the quarter beginning October 1, 2015. This adoption did not have a material impact on its consolidated results of operations and financial condition. In May 2014, the FASB issued a new accounting standard related to revenue from contracts with customers. This standard requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard was originally planned to be effective for annual reporting periods beginning after December 15, 2016, however, in August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date. Early adoption as of the original effective date is permitted. This standard may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this standard recognized at the date of initial application. Canon has not selected a transition method and is currently evaluating the adoption date and the effect that the adoption of this standard will have on its consolidated results of operations and financial condition. In July 2015, the FASB issued an amendment which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for annual reporting periods beginning after December 15, 2016, and early adoption is permitted. Canon is currently evaluating the adoption date and does not expect the adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. In November 2015, the FASB issued an amendment which requires deferred tax assets and liabilities be classified as noncurrent in the consolidated balance sheets. This guidance is effective for annual reporting periods beginning after December 15, 2016, and early adoption is permitted. Canon will early adopt this amended guidance from the quarter beginning January 1, 2016, on a prospective basis, and prior periods were not retrospectively adjusted. The adoption of this guidance will have an impact on its consolidated balance sheets as our current deferred tax assets were ¥55,108 million and current deferred tax liabilities were ¥2,682 million as of December 31, 2015. In January 2016, the FASB issued an amendment which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance includes the requirement that equity investments be measured at fair value with changes in the fair value recognized in net income. This guidance is effective for annual reporting periods beginning after December 15, 2017, and early adoption is permitted for certain provisions. Canon is currently evaluating the adoption date and the effect that the adoption of this guidance will have on its consolidated results of operations and financial condition. In February 2016, the FASB issued an amendment which requires lessees to recognize most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current guidance. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. Canon is currently evaluating the adoption date and the effect that the adoption of this guidance will have on its consolidated results of operations and financial condition. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments | 2. Investments The cost, gross unrealized holding gains, gross unrealized holding losses and fair value for available-for-sale securities included in investments by major security type at December 31, 2015 and 2014 were as follows: December 31, 2015 Cost Gross Gross Fair (Millions of yen) Noncurrent: Government bonds ¥ 298 ¥ — ¥ 11 ¥ 287 Corporate bonds 6 195 — 201 Fund trusts 63 1 — 64 Equity securities 20,461 23,482 1,094 42,849 ¥ 20,828 ¥ 23,678 ¥ 1,105 ¥ 43,401 December 31, 2014 Cost Gross Gross Fair (Millions of yen) Noncurrent: Government bonds ¥ 331 ¥ — ¥ 6 ¥ 325 Corporate bonds 512 153 29 636 Fund trusts 84 — — 84 Equity securities 20,905 19,765 17 40,653 ¥ 21,832 ¥ 19,918 ¥ 52 ¥ 41,698 Maturities of available-for-sale debt securities included in investments in the accompanying consolidated balance sheets were as follows at December 31, 2015: Cost Fair value (Millions of yen) Due after five years ¥ 304 ¥ 488 ¥ 304 ¥ 488 Gross realized gains were ¥329 million, ¥2,540 million and ¥2,360 million for the years ended December 31, 2015, 2014 and 2013, respectively. Gross realized losses, including write-downs for impairments that were other-than-temporary, At December 31, 2015, substantially all of the available-for-sale securities with unrealized losses had been in a continuous unrealized loss position for less than twelve months. Time deposits with original maturities of more than three months are ¥20,651 million and ¥71,863 million at December 31, 2015 and 2014, respectively, and are included in short-term investments in the accompanying consolidated balance sheets. Aggregate cost of non-marketable equity securities accounted for under the cost method totaled ¥2,570 million and ¥1,164 million at December 31, 2015 and 2014, respectively. These investments were not evaluated for impairment at December 31, 2015 and 2014, respectively, because (a) Canon did not estimate the fair value of those investments as it was not practicable to estimate the fair value of the investments and (b) Canon did not identify any events or changes in circumstances that might have had significant adverse effects on the fair value of those investments. Investments in affiliated companies accounted for by the equity method amounted to ¥20,415 million and ¥20,863 million at December 31, 2015 and 2014, respectively. Canon’s share of the net earnings (losses) in affiliated companies accounted for by the equity method, included in other income (deductions), were earnings of ¥447 million and ¥478 million for the years ended December 31, 2015 and 2014, respectively, and losses of ¥664 million for the year ended December 31, 2013. |
Trade Receivables
Trade Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Trade Receivables | 3. Trade Receivables Trade receivables are summarized as follows: December 31 2015 2014 (Millions of yen) Notes ¥ 17,614 ¥ 18,476 Accounts 582,464 619,321 600,078 637,797 Less allowance for doubtful receivables (12,077 ) (12,122 ) ¥ 588,001 ¥ 625,675 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | 4. Inventories Inventories are summarized as follows: December 31 2015 2014 (Millions of yen) Finished goods ¥ 357,115 ¥ 363,685 Work in process 130,258 144,394 Raw materials 14,522 20,088 ¥ 501,895 ¥ 528,167 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | 5. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and are summarized as follows: December 31 2015 2014 (Millions of yen) Land ¥ 282,786 ¥ 286,336 Buildings 1,632,604 1,609,667 Machinery and equipment 1,813,116 1,822,026 Construction in progress 61,952 70,759 3,790,458 3,788,788 Less accumulated depreciation (2,570,806 ) (2,519,259 ) ¥ 1,219,652 ¥ 1,269,529 Depreciation expenses for the years ended December 31, 2015, 2014 and 2013 were ¥223,759 million, ¥213,739 million and ¥223,158 million, respectively. Amounts due for purchases of property, plant and equipment were ¥30,789 million and ¥40,483 million at December 31, 2015 and 2014, respectively, and are included in other current liabilities in the accompanying consolidated balance sheets. Fixed assets presented in the consolidated statements of cash flows include property, plant and equipment and intangible assets. |
Finance Receivables and Operati
Finance Receivables and Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Finance Receivables and Operating Leases | 6. Finance Receivables and Operating Leases Finance receivables represent financing leases which consist of sales-type leases and direct-financing leases resulting from the sales of Canon’s and complementary third-party products primarily in foreign countries. These receivables typically have terms ranging from 1 year to 6 years. The components of the finance receivables, which are included in prepaid expenses and other current assets, and other assets in the accompanying consolidated balance sheets, are as follows: December 31 2015 2014 (Millions of yen) Total minimum lease payments receivable ¥ 318,066 ¥ 308,733 Unguaranteed residual values 14,271 13,924 Executory costs (888 ) (1,680 ) Unearned income (31,920 ) (31,919 ) 299,529 289,058 Less allowance for credit losses (2,878 ) (6,276 ) 296,651 282,782 Less current portion (109,220 ) (102,920 ) ¥ 187,431 ¥ 179,862 The activity in the allowance for credit losses is as follows: Years ended December 31 2015 2014 (Millions of yen) Balance at beginning of year ¥ 6,276 ¥ 7,323 Charge-offs (1,343 ) (1,171 ) Provision 55 154 Translation adjustments and other (2,110 ) (30 ) Balance at end of year ¥ 2,878 ¥ 6,276 Canon has policies in place to ensure that its products are sold to customers with an appropriate credit history, and continuously monitors its customers’ credit quality based on information including length of period in arrears, macroeconomic conditions, initiation of legal proceedings against customers and bankruptcy filings. The allowance for credit losses of finance receivables are evaluated collectively based on historical experience of credit losses. An additional reserve for individual accounts is recorded when Canon becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings. Finance receivables which are past due or individually evaluated for impairment at December 31, 2015 and 2014 are not significant. The cost of equipment leased to customers under operating leases included in property, plant and equipment, net at December 31, 2015 and 2014 was ¥108,746 million and ¥113,997 million, respectively. Accumulated depreciation on equipment under operating leases at December 31, 2015 and 2014 was ¥82,916 million and ¥87,338 million, respectively. The following is a schedule by year of the future minimum lease payments to be received under financing leases and noncancelable operating leases at December 31, 2015. Financing leases Operating leases (Millions of yen) Year ending December 31: 2016 ¥ 127,714 ¥ 8,709 2017 90,137 5,307 2018 57,828 3,308 2019 30,501 1,786 2020 11,165 490 Thereafter 721 206 ¥ 318,066 ¥ 19,806 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions | 7. Acquisitions On April 15, 2015, the Company acquired 76.1% of the issued shares of Axis AB (“Axis”), a Sweden-based company listed on Nasdaq Stockholm, a global leader in the network video solution industry, primarily through a public cash tender offer for consideration of ¥ 244,725 million. In addition, the Company acquired 9.0% of the issued shares of Axis from noncontrolling shareholders primarily through an additional public cash tender offer. As a result, the Company’s aggregate interest represents 85.1% of the issued shares of Axis. The fair value of the 23.9% noncontrolling interest in Axis of ¥ 77,086 million was measured based on Axis’s common stock price on the acquisition date. The acquisition was accounted for using the acquisition method of accounting. Acquisition-related costs were expensed as incurred and were not material. The Company views its network surveillance camera business as a promising new business area for Canon. Canon aims to provide advanced and high-performance network solutions to its customers and improve its product competitiveness through the acquisition. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at acquisition date. (Millions of yen) Current assets ¥ 31,365 Intangible assets 60,992 Goodwill 259,863 Other noncurrent assets 2,053 Non-current assets 322,908 Total assets acquired 354,273 Total liabilities assumed 32,462 Net assets acquired ¥ 321,811 Intangible assets acquired, which are subject to amortization, consist of trademarks of ¥ 42,880 million, patents and developed technology of ¥ 17,823 million and software of ¥ 289 million. Canon has estimated the amortization period for the trademarks, patents and developed technology, and software to be 15 years, 7 years and 5 years, respectively. The weighted average amortization period for all intangible assets is approximately 13 years. Goodwill recorded is attributable primarily to expected synergies from combining operations of Axis and Canon. None of the goodwill is expected to be deductible for tax purposes. The goodwill is assigned primarily to the Industry and Others Business Unit for impairment testing. The amounts of net sales of Axis since the acquisition date included in the Canon’s consolidated statement of income for the year ended December 31, 2015 were ¥ 72,602 million. The amounts of net income of Axis included in the Canon’s consolidated statement of income were not material. Pro forma results of operations were not disclosed because the effect on the Canon’s consolidated statement of income was not material. Canon acquired businesses other than that described above during the year ended December 31, 2015 that were not material to its consolidated financial statements. During the year ended December 31, 2014, Canon acquired several companies for a total cash consideration of ¥70,671 million, of which ¥30,696 million, ¥8,789 million, and ¥4,633 million was attributed to intangible assets, the related deferred tax liabilities, and other net assets acquired, respectively, and the residual amount of ¥44,131 million was recorded as goodwill. The goodwill recorded is attributable primarily to expected synergies from the combined operations of the acquired companies and Canon. None of the goodwill is expected to be deductible for tax purposes. Total acquisition-related costs were expensed as incurred and were not significant. Intangible assets acquired, which are subject to amortization, consist of software of ¥13,290 million, customer relationships of ¥1,628 million and other intangible assets of ¥3,841 million. Canon has estimated the weighted average amortization period for the software and customer relationships to be 7 years and 6 years, respectively. The weighted average amortization period for all intangible assets is approximately 9 years. Intangible assets acquired, which are not subject to amortization, consist of in-process research and development of ¥11,937 million. The results of operations of the acquired companies were included in Canon’s consolidated financial statements from the respective acquisition dates and were not material. Pro forma results of operations have not been disclosed because the effects of these acquisitions were not material, individually and in the aggregate. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Intangible assets subject to amortization acquired during the year ended December 31, 2015, including those recorded from businesses acquired, totaled ¥113,216 million, which primarily consist of trademarks of ¥42,949 million, software of ¥39,817 million, and patents and developed technology of ¥18,083 million. The weighted average amortization periods for intangible assets in total acquired during the year ended December 31, 2015 are approximately 9 years. The weighted average amortization periods for trademarks, software, and patents and developed technology acquired during the year ended December 31, 2015 are approximately 15 years, 5 years and 7 years, respectively. Intangible assets subject to amortization acquired during the year ended December 31, 2014, including those recorded from businesses acquired, totaled ¥62,189 million, which primarily consist of software of ¥54,686 million. The weighted average amortization periods for intangible assets in total acquired during the year ended December 31, 2014 are approximately 5 years. The weighted average amortization periods for software acquired during the year ended December 31, 2014 are approximately 4 years. The components of intangible assets subject to amortization at December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 Gross Accumulated Gross Accumulated (Millions of yen) Software ¥ 308,348 ¥ 181,972 ¥ 312,069 ¥ 185,885 Trademarks 49,861 2,952 10,858 6,137 Patents and developed technology 39,685 16,123 22,371 13,845 Customer relationships 17,159 10,173 53,494 46,713 License fees 15,669 5,617 11,765 7,860 Other 17,070 7,690 16,455 7,351 ¥ 447,792 ¥ 224,527 ¥ 427,012 ¥ 267,791 Aggregate amortization expense for the years ended December 31, 2015, 2014 and 2013 was ¥49,568 million, ¥49,741 million and ¥52,015 million, respectively. Estimated amortization expense for intangible assets currently held for the next five years ending December 31 is ¥48,094 million in 2016, ¥38,852 million in 2017, ¥29,155 million in 2018, ¥20,589 million in 2019, and ¥15,736 million in 2020. Intangible assets not subject to amortization other than goodwill at December 31, 2015 and 2014 were ¥17,943 million and ¥18,067 million, respectively, which primarily consist of in-process research and development recorded from businesses acquired. For management reporting purposes, goodwill is not allocated to the segments. Goodwill has been allocated to its respective segment for impairment testing. The changes in the carrying amount of goodwill by segment for the years ended December 31, 2015 and 2014 were as follows: Year ended December 31, 2015 Office Imaging Industry and Total (Millions of yen) Balance at beginning of year ¥ 145,335 ¥ 21,780 ¥ 44,221 ¥ 211,336 Goodwill acquired during the year 10,373 31,367 228,827 270,567 Translation adjustments and other (13,157 ) 327 9,870 (2,960 ) Balance at end of year ¥ 142,551 ¥ 53,474 ¥ 282,918 ¥ 478,943 Year ended December 31, 2014 Office Imaging Industry and Total (Millions of yen) Balance at beginning of year ¥ 139,412 ¥ 13,877 ¥ 8,351 ¥ 161,640 Goodwill acquired during the year 3,971 7,424 32,736 44,131 Translation adjustments and other 1,952 479 3,134 5,565 Balance at end of year ¥ 145,335 ¥ 21,780 ¥ 44,221 ¥ 211,336 |
Short-Term Loans and Long-Term
Short-Term Loans and Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Short-Term Loans and Long-Term Debt | 9. Short-Term Loans and Long-Term Debt Short-term loans consisting of bank borrowings at December 31, 2015 and 2014 were ¥26 million and ¥3 million, respectively. Long-term debt consisted of the following: December 31 2015 2014 (Millions of yen) Loans, principally from banks, maturing in installments through 2020; bearing weighted average interest of 1.81% and 2.79% at December 31, 2015 and 2014, respectively. ¥ 73 ¥ 145 Capital lease obligations 1,470 2,018 1,543 2,163 Less current portion (662 ) (1,015 ) ¥ 881 ¥ 1,148 The aggregate annual maturities of long-term debt outstanding at December 31, 2015 were as follows: (Millions of yen) Year ending December 31: 2016 ¥ 662 2017 452 2018 281 2019 121 2020 27 Thereafter — ¥ 1,543 Both short-term and long-term bank loans are made under general agreements which provide that security and guarantees for present and future indebtedness will be given upon request of the bank, and that the bank shall have the right to offset cash deposits against obligations that have become due or, in the event of default, against all obligations due to the bank. |
Trade Payables
Trade Payables | 12 Months Ended |
Dec. 31, 2015 | |
Trade Payables | 10. Trade Payables Trade payables are summarized as follows: December 31 2015 2014 (Millions of yen) Notes ¥ 16,706 ¥ 14,112 Accounts 261,549 296,102 ¥ 278,255 ¥ 310,214 |
Employee Retirement and Severan
Employee Retirement and Severance Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Employee Retirement and Severance Benefits | 11. Employee Retirement and Severance Benefits The Company and certain of its subsidiaries have contributory and noncontributory defined benefit pension plans covering substantially all of their employees. Benefits payable under the plans are based on employee earnings and years of service. The Company and certain of its subsidiaries also have defined contribution pension plans covering substantially all of their employees. Effective January 1, 2014, defined benefit pension plans of certain subsidiaries in the Netherlands were terminated, and the related plan assets and obligations were transferred to a multiemployer pension plan for the industry in which these subsidiaries operate. As a result, the Company recorded a gain on curtailments and settlements of ¥9,370 million in selling, general and administrative expenses in the consolidated statement of income for the year ended December 31, 2014. Obligations and funded status Reconciliations of beginning and ending balances of the projected benefit obligations and the fair value of the plan assets are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year ¥ 760,331 ¥ 684,842 ¥ 364,662 ¥ 486,572 Service cost 30,009 26,445 7,760 6,801 Interest cost 8,008 10,772 10,572 10,654 Plan participants’ contributions — — 1,830 1,522 Actuarial (gain) loss 7,481 59,496 (5,534 ) 44,580 Benefits paid (24,479 ) (21,224 ) (6,795 ) (7,352 ) Plan amendments — — (2,655 ) — Curtailments and settlements — — — (191,179 ) Foreign currency exchange rate changes — — (20,160 ) 13,064 Projected benefit obligations at end of year 781,350 760,331 349,680 364,662 Change in plan assets: Fair value of plan assets at beginning of year 622,121 581,996 221,421 360,527 Actual return on plan assets 17,541 43,714 21 17,851 Employer contributions 8,701 15,676 10,864 6,470 Plan participants’ contributions — — 1,830 1,522 Benefits paid (21,788 ) (19,265 ) (6,795 ) (7,041 ) Settlements — — — (165,640 ) Foreign currency exchange rate changes — — (9,471 ) 7,732 Fair value of plan assets at end of year 626,575 622,121 217,870 221,421 Funded status at end of year ¥ (154,775 ) ¥ (138,210 ) ¥ (131,810 ) ¥ (143,241 ) Amounts recognized in the consolidated balance sheets at December 31, 2015 and 2014 are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Other assets ¥ 814 ¥ 532 ¥ 9,986 ¥ — Accrued expenses — — (1,123 ) (1,055 ) Accrued pension and severance cost (155,589 ) (138,742 ) (140,673 ) (142,186 ) ¥ (154,775 ) ¥ (138,210 ) ¥ (131,810 ) ¥ (143,241 ) Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2015 and 2014 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Actuarial loss ¥ 208,946 ¥ 209,829 ¥ 71,750 ¥ 69,287 Prior service credit (79,935 ) (92,527 ) (2,567 ) (57 ) ¥ 129,011 ¥ 117,302 ¥ 69,183 ¥ 69,230 The accumulated benefit obligation for all defined benefit plans was as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Accumulated benefit obligation ¥ 740,545 ¥ 720,034 ¥ 338,160 ¥ 343,023 The projected benefit obligations and the fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets, and the accumulated benefit obligations and the fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations ¥ 777,458 ¥ 756,941 ¥ 346,749 ¥ 364,662 Fair value of plan assets 621,869 618,199 204,953 221,421 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations ¥ 731,537 ¥ 716,940 ¥ 331,351 ¥ 339,305 Fair value of plan assets 615,963 618,199 200,891 216,560 Components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) Net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans for the years ended December 31, 2015, 2014 and 2013 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2015 2014 2013 2015 2014 2013 (Millions of yen) (Millions of yen) Service cost ¥ 30,009 ¥ 26,445 ¥ 26,005 ¥ 7,760 ¥ 6,801 ¥ 9,448 Interest cost 8,008 10,772 11,655 10,572 10,654 14,299 Expected return on plan assets (19,579 ) (18,018 ) (15,273 ) (11,857 ) (10,637 ) (13,949 ) Amortization of prior service credit (12,592 ) (12,800 ) (12,306 ) (145 ) (61 ) (143 ) Amortization of actuarial loss 10,402 10,023 13,546 3,839 1,698 2,005 (Gain) loss on curtailments and settlements — — — — (9,370 ) 146 ¥ 16,248 ¥ 16,422 ¥ 23,627 ¥ 10,169 ¥ (915 ) ¥ 11,806 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2015 2014 2013 2015 2014 2013 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss ¥ 9,519 ¥ 33,800 ¥ (54,150 ) ¥ 6,302 ¥ 37,366 ¥ 2,290 Current year prior service credit — — — (2,655 ) — — Amortization of actuarial loss (10,402 ) (10,023 ) (13,546 ) (3,839 ) (1,698 ) (2,005 ) Amortization of prior service credit 12,592 12,800 12,306 145 61 143 Curtailments and settlements — — — — (16,725 ) (358 ) ¥ 11,709 ¥ 36,577 ¥ (55,390 ) ¥ (47 ) ¥ 19,004 ¥ 70 The estimated prior service credit and actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next year are summarized as follows: Japanese plans Foreign plans (Millions of yen) (Millions of yen) Prior service credit ¥ (12,785 ) ¥ (132 ) Actuarial loss 10,830 3,213 Assumptions Weighted-average assumptions used to determine benefit obligations are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 Discount rate 1.1 % 1.1 % 3.0 % 2.9 % Assumed rate of increase in future compensation levels 3.0 % 3.0 % 2.0 % 2.0 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2015 2014 2013 2015 2014 2013 Discount rate 1.1 % 1.6 % 1.8 % 2.9 % 3.9 % 3.6 % Assumed rate of increase in future compensation levels 3.0 % 3.0 % 3.0 % 2.0 % 2.3 % 2.2 % Expected long-term rate of return on plan assets 3.1 % 3.1 % 3.1 % 5.6 % 4.9 % 5.2 % Canon determines the expected long-term rate of return based on the expected long-term return of the various asset categories in which it invests. Canon considers the current expectations for future returns and the actual historical returns of each plan asset category. Plan assets Canon’s investment policies are designed to ensure adequate plan assets are available to provide future payments of pension benefits to eligible participants. Taking into account the expected long-term rate of return on plan assets, Canon formulates a “model” portfolio comprised of the optimal combination of equity securities and debt securities. Plan assets are invested in individual equity and debt securities using the guidelines of the “model” portfolio in order to produce a total return that will match the expected return on a mid-term to long-term basis. Canon evaluates the gap between expected return and actual return of invested plan assets on an annual basis to determine if such differences necessitate a revision in the formulation of the “model” portfolio. Canon revises the “model” portfolio when and to the extent considered necessary to achieve the expected long-term rate of return on plan assets. Canon’s model portfolio for Japanese plans consists of three major components: approximately 20% is invested in equity securities, approximately 55% is invested in debt securities, and approximately 25% is invested in other investment vehicles, primarily consisting of investments in life insurance company general accounts. Outside Japan, investment policies vary by country, but the long-term investment objectives and strategies remain consistent. Canon’s model portfolio for foreign plans has been developed as follows: approximately 35% is invested in equity securities, approximately 35% is invested in debt securities, and approximately 30% is invested in other investment vehicles, primarily consisting of investments in real estate assets. The equity securities are selected primarily from stocks that are listed on the securities exchanges. Prior to investing, Canon has investigated the business condition of the investee companies, and appropriately diversified investments by type of industry and other relevant factors. The debt securities are selected primarily from government bonds, public debt instruments, and corporate bonds. Prior to investing, Canon has investigated the quality of the issue, including rating, interest rate, and repayment dates, and has appropriately diversified the investments. Pooled funds are selected using strategies consistent with the equity and debt securities described above. As for investments in life insurance company general accounts, the contracts with the insurance companies include a guaranteed interest rate and return of capital. With respect to investments in foreign investment vehicles, Canon has investigated the stability of the underlying governments and economies, the market characteristics such as settlement systems and the taxation systems. For each such investment, Canon has selected the appropriate investment country and currency. The three levels of input used to measure fair value are more fully described in Note 20. The fair values of Canon’s pension plan assets at December 31, 2015 and 2014, by asset category, are as follows: December 31, 2015 Japanese plans Foreign plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (Millions of yen) Equity securities: Japanese companies (a) ¥ 49,847 ¥ — ¥ — ¥ 49,847 ¥ — ¥ — ¥ — ¥ — Foreign companies 3,287 — — 3,287 18,661 — — 18,661 Pooled funds (b) — 125,850 — 125,850 — 66,296 — 66,296 Debt securities: Government bonds (c) 142,015 — — 142,015 48 — — 48 Municipal bonds — 1,248 — 1,248 — 2,587 — 2,587 Corporate bonds — 13,532 — 13,532 — 21,009 — 21,009 Pooled funds (d) — 120,364 — 120,364 — 34,564 — 34,564 Mortgage backed securities (and other asset backed securities) — 10,462 — 10,462 — 137 — 137 Life insurance company general accounts — 125,759 — 125,759 — 6,190 — 6,190 Other assets — 33,432 779 34,211 — 68,378 — 68,378 ¥ 195,149 ¥ 430,647 ¥ 779 ¥ 626,575 ¥ 18,709 ¥ 199,161 ¥ — ¥ 217,870 December 31, 2014 Japanese plans Foreign plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (Millions of yen) Equity securities: Japanese companies (e) ¥ 51,805 ¥ — ¥ — ¥ 51,805 ¥ — ¥ — ¥ — ¥ — Foreign companies 10,233 — — 10,233 31,963 — — 31,963 Pooled funds (f) — 124,388 — 124,388 — 74,744 — 74,744 Debt securities: Government bonds (g) 143,431 — — 143,431 7,899 — — 7,899 Municipal bonds — 573 — 573 — 3,221 — 3,221 Corporate bonds — 11,775 — 11,775 — 24,014 — 24,014 Pooled funds (h) — 118,606 — 118,606 — 23,260 — 23,260 Mortgage backed securities (and other asset backed securities) — 12,310 — 12,310 — — — — Life insurance company general accounts — 123,575 — 123,575 — 7,049 — 7,049 Other assets — 23,825 1,600 25,425 — 49,271 — 49,271 ¥ 205,469 ¥ 415,052 ¥ 1,600 ¥ 622,121 ¥ 39,862 ¥ 181,559 ¥ — ¥ 221,421 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥325 million. (b) These funds invest in listed equity securities consisting of approximately 25% Japanese companies and 75% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (c) This class includes approximately 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (d) These funds invest in approximately 25% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 75% foreign government bonds and 25% corporate bonds for foreign plans. (e) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥197 million. (f) These funds invest in listed equity securities consisting of approximately 25% Japanese companies and 75% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (g) This class includes approximately 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (h) These funds invest in approximately 25% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 85% foreign government bonds and 15% corporate bonds for foreign plans. Each level into which assets are categorized is based on inputs used to measure the fair value of the assets, and does not necessarily indicate the risks or ratings of the assets. Level 1 assets are comprised principally of equity securities and government bonds, which are valued using unadjusted quoted market prices in active markets with sufficient volume and frequency of transactions. Level 2 assets are comprised principally of pooled funds that invest in equity and debt securities, corporate bonds and investments in life insurance company general accounts. Pooled funds are valued at their net asset values that are calculated by the sponsor of the fund and have daily liquidity. Corporate bonds are valued using quoted prices for identical assets in markets that are not active. Investments in life insurance company general accounts are valued at conversion value. The fair value of Level 3 assets, consisting of hedge funds, was ¥779 million and ¥1,600 million at December 31, 2015 and 2014, respectively. Amounts of actual returns on, and purchases and sales of, these assets during the years ended December 31, 2015 and 2014 were not significant. Contributions Canon expects to contribute ¥12,015 million to its Japanese defined benefit pension plans and ¥8,706 million to its foreign defined benefit pension plans for the year ending December 31, 2016. Estimated future benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Japanese plans Foreign plans (Millions of yen) (Millions of yen) Year ending December 31: 2016 ¥ 20,023 ¥ 9,836 2017 21,351 10,165 2018 23,280 9,843 2019 23,359 11,036 2020 27,886 11,686 2021 – 2025 170,161 67,899 Multiemployer pension plans The amounts of cost recognized for the multiemployer pension plans primarily in the Netherlands for the years ended December 31, 2015 and 2014 were ¥3,864 million and ¥2,815 million, respectively. The multiemployer pension plan in which the subsidiaries in the Netherlands participated was 102% funded as of December 31, 2014. The collective bargaining agreements have no expiration date. Canon is not liable for other participating employers’ obligations under the terms and conditions of the agreements. Defined contribution plans The amounts of cost recognized for the defined contribution pension plans of the Company and certain of its subsidiaries for the years ended December 31, 2015, 2014 and 2013 were ¥17,277 million, ¥15,077 million and ¥14,383 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | 12. Income Taxes Domestic and foreign components of income before income taxes and the current and deferred income tax expense (benefit) attributable to such income are summarized as follows: Year ended December 31, 2015 Japanese Foreign Total (Millions of yen) Income before income taxes ¥ 228,871 ¥ 118,567 ¥ 347,438 Income taxes: Current ¥ 80,020 ¥ 31,413 ¥ 111,433 Deferred 3,414 1,258 4,672 ¥ 83,434 ¥ 32,671 ¥ 116,105 Year ended December 31, 2014 Japanese Foreign Total (Millions of yen) Income before income taxes ¥ 277,041 ¥ 106,198 ¥ 383,239 Income taxes: Current ¥ 83,221 ¥ 25,850 ¥ 109,071 Deferred 6,796 2,133 8,929 ¥ 90,017 ¥ 27,983 ¥ 118,000 Year ended December 31, 2013 Japanese Foreign Total (Millions of yen) Income before income taxes ¥ 251,351 ¥ 96,253 ¥ 347,604 Income taxes: Current ¥ 75,134 ¥ 16,163 ¥ 91,297 Deferred 4,005 12,786 16,791 ¥ 79,139 ¥ 28,949 ¥ 108,088 The Company and its domestic subsidiaries are subject to a number of income taxes, which, in the aggregate, represent a statutory income tax rate of approximately 35% for the year ended December 31, 2015 and approximately 38% for the years ended December 31, 2014 and 2013, respectively. Amendments to the Japanese tax regulations were enacted into law on March 31, 2015. As a result of these amendments, the statutory income tax rate will be reduced from approximately 35% to 33% effective from the year beginning January 1, 2016, and to approximately 32% effective from the year beginning January 1, 2017 thereafter. Consequently, the statutory income tax rate utilized for deferred tax assets and liabilities expected to be settled or realized in the period from January 1, 2016 to December 31, 2016 is approximately 33% and for periods subsequent to December 31, 2016 the rate is approximately 32%. The adjustments of deferred tax assets and liabilities for this change in the tax rate amounted to ¥6,456 million and have been reflected in income taxes in the consolidated statement of income for the year ended December 31, 2015. A reconciliation of the Japanese statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: Years ended December 31 2015 2014 2013 Japanese statutory income tax rate 35.0 % 38.0 % 38.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes 0.8 0.7 0.9 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (2.9 ) (3.7 ) (3.3 ) Tax credit for research and development expenses (4.8 ) (5.0 ) (5.4 ) Change in valuation allowance (0.4 ) (0.5 ) 0.2 Effect of enacted changes in tax laws and rates on Japanese tax 1.9 0.8 — Other 3.8 0.5 0.7 Effective income tax rate 33.4 % 30.8 % 31.1 % Net deferred income tax assets and liabilities are included in the accompanying consolidated balance sheets under the following captions: December 31 2015 2014 (Millions of yen) Prepaid expenses and other current assets ¥ 55,108 ¥ 61,943 Other assets 113,687 117,636 Other current liabilities (2,682 ) (3,456 ) Other noncurrent liabilities (96,243 ) (80,459 ) ¥ 69,870 ¥ 95,664 The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below: December 31 2015 2014 (Millions of yen) Deferred tax assets: Inventories ¥ 15,298 ¥ 16,085 Accrued business tax 3,293 3,951 Accrued pension and severance cost 77,420 79,392 Research and development – costs capitalized for tax purposes 6,906 8,616 Property, plant and equipment 24,281 29,558 Accrued expenses 39,881 43,706 Net operating losses carried forward 33,526 38,351 Other 33,808 34,673 234,413 254,332 Less valuation allowance (32,931 ) (37,498 ) Total deferred tax assets 201,482 216,834 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (10,400 ) (10,368 ) Net unrealized gains on securities (7,354 ) (6,801 ) Tax deductible reserve (4,974 ) (5,696 ) Financing lease revenue (54,280 ) (58,958 ) Prepaid pension and severance cost (1,104 ) (1,671 ) Intangible assets (21,106 ) (7,283 ) Other (32,394 ) (30,393 ) Total deferred tax liabilities (131,612 ) (121,170 ) Net deferred tax assets ¥ 69,870 ¥ 95,664 The net changes in the total valuation allowance were a decrease of ¥4,567 million for the year ended December 31, 2015, and increases of ¥2,443 million and ¥2,888 million for the years ended December 31, 2014 and 2013, respectively. Based upon the level of historical taxable income and projections for future taxable income over the periods which the net deductible temporary differences are expected to reverse, management believes it is more likely than not that Canon will realize the benefits of these deferred tax assets, net of the existing valuation allowance, at December 31, 2015. At December 31, 2015, Canon had net operating losses which can be carried forward for income tax purposes of ¥200,994 million to reduce future taxable income. Periods available to reduce future taxable income vary in each tax jurisdiction and generally range from one year to an indefinite period as follows: (Millions of yen) Within one year ¥ 6,138 After one year through five years 36,317 After five years through ten years 58,462 After ten years through twenty years 62,270 Indefinite period 37,807 Total ¥ 200,994 Income taxes have not been accrued on undistributed earnings of domestic subsidiaries as the tax law provides a means by which the dividends from a domestic subsidiary can be received tax free. Canon has not recognized deferred tax liabilities of ¥28,500 million for a portion of undistributed earnings of foreign subsidiaries that arose for the year ended December 31, 2015 and prior years because Canon currently does not expect to have such amounts distributed or paid as dividends to the Company in the foreseeable future. Deferred tax liabilities will be recognized when Canon expects that it will realize those undistributed earnings in a taxable manner, such as through receipt of dividends or sale of the investments. At December 31, 2015, such undistributed earnings of these subsidiaries were ¥940,931 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended December 31 2015 2014 2013 (Millions of yen) Balance at beginning of year ¥ 6,431 ¥ 6,201 ¥ 7,711 Additions for tax positions of the current year 2,174 1,649 312 Additions for tax positions of prior years 165 216 388 Reductions for tax positions of prior years (1,180 ) (114 ) (3,141 ) Settlements with tax authorities (505 ) (1,808 ) (347 ) Other (1,029 ) 287 1,278 Balance at end of year ¥ 6,056 ¥ 6,431 ¥ 6,201 The total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized, are ¥6,056 million and ¥6,431 million at December 31, 2015 and 2014, respectively. Although Canon believes its estimates and assumptions of unrecognized tax benefits are reasonable, uncertainty regarding the final determination of tax audit settlements and any related litigation could affect the effective tax rate in a future period. Based on each of the items of which Canon is aware at December 31, 2015, no significant changes to the unrecognized tax benefits are expected within the next twelve months. Canon recognizes interest and penalties accrued related to unrecognized tax benefits in income taxes. Both interest and penalties accrued at December 31, 2015 and 2014, and interest and penalties included in income taxes for the years ended December 31, 2015, 2014 and 2013 are not significant. Canon files income tax returns in Japan and various foreign tax jurisdictions. In Japan, Canon is no longer subject to regular income tax examinations by the tax authority for years before 2015. Canon is also no longer subject to a transfer pricing examination by the tax authority for years before 2015. In other major foreign tax jurisdictions, including the United States and the Netherlands, Canon is no longer subject to income tax examinations by tax authorities for years before 2007 with few exceptions. The tax authorities are currently conducting income tax examinations of Canon’s income tax returns for years after 2006 in major foreign tax jurisdictions. |
Legal Reserve and Retained Earn
Legal Reserve and Retained Earnings | 12 Months Ended |
Dec. 31, 2015 | |
Legal Reserve and Retained Earnings | 13. Legal Reserve and Retained Earnings The Corporation Law of Japan provides that an amount equal to 10% of distributions from retained earnings paid by the Company and its Japanese subsidiaries be appropriated as a legal reserve. No further appropriations are required when the total amount of the additional paid-in capital and the legal reserve equals 25% of their respective stated capital. The Corporation Law of Japan also provides that additional paid-in capital and legal reserve are available for appropriations by resolution of the shareholders. Certain foreign subsidiaries are also required to appropriate their earnings to legal reserves under the laws of their respective countries. Cash dividends and appropriations to the legal reserve charged to retained earnings for the years ended December 31, 2015, 2014 and 2013 represent dividends paid out during those years and the related appropriations to the legal reserve. Retained earnings at December 31, 2015 did not reflect current year-end dividends in the amount of ¥81,905 million which were approved by the shareholders in March 2016. The amount available for dividends under the Corporation Law of Japan is based on the amount recorded in the Company’s nonconsolidated books of account in accordance with financial accounting standards of Japan. Such amount was ¥970,771 million at December 31, 2015. Retained earnings at December 31, 2015 included Canon’s equity in undistributed earnings of affiliated companies accounted for by the equity method in the amount of ¥17,129 million. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss) | 14. Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013 are as follows: Foreign Unrealized Gains and Pension Total (Millions of yen) Balance at December 31, 2012 ¥ (247,734 ) ¥ 4,146 ¥ (4,462 ) ¥ (119,199 ) ¥ (367,249 ) Equity transactions with noncontrolling interests and other (323 ) (1 ) (2 ) (329 ) (655 ) Other comprehensive income (loss) before reclassifications 249,791 7,449 (7,551 ) 27,153 276,842 Amounts reclassified from accumulated other comprehensive income (loss) — (1,352 ) 9,607 2,161 10,416 Net change during the year 249,468 6,096 2,054 28,985 286,603 Balance at December 31, 2013 1,734 10,242 (2,408 ) (90,214 ) (80,646 ) Equity transactions with noncontrolling interests and other 10 3 — (35 ) (22 ) Other comprehensive income (loss) before reclassifications 142,813 3,933 (2,204 ) (47,840 ) 96,702 Amounts reclassified from accumulated other comprehensive income (loss) — (1,632 ) 2,009 11,875 12,252 Net change during the year 142,823 2,304 (195 ) (36,000 ) 108,932 Balance at December 31, 2014 ¥ 144,557 ¥ 12,546 ¥ (2,603 ) ¥ (126,214 ) ¥ 28,286 Equity transactions with noncontrolling interests and other 73 — — — 73 Other comprehensive income (loss) before reclassifications (57,592 ) 1,691 (256 ) (6,155 ) (62,312 ) Amounts reclassified from accumulated other comprehensive income (loss) — (182 ) 3,041 1,352 4,211 Net change during the year (57,519 ) 1,509 2,785 (4,803 ) (58,028 ) Balance at December 31, 2015 ¥ 87,038 ¥ 14,055 ¥ 182 ¥ (131,017 ) ¥ (29,742 ) Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013 are as follows: Amount reclassified from accumulated other comprehensive income (loss) *1 Year ended Year ended Year ended Affected line items in consolidated statements of income (Millions of yen) Unrealized gains and losses on securities ¥ (298 ) ¥ (2,509 ) ¥ (2,358 ) Other, net 104 879 613 Income taxes (194 ) (1,630 ) (1,745 ) Consolidated net income 12 (2 ) 393 Net income attributable to noncontrolling interests (182 ) (1,632 ) (1,352 ) Net income attributable to Canon Inc. Gains and losses on derivative instruments 4,217 3,260 15,387 Other, net (1,180 ) (1,248 ) (5,780 ) Income taxes 3,037 2,012 9,607 Consolidated net income 4 (3 ) — Net income attributable to noncontrolling interests 3,041 2,009 9,607 Net income attributable to Canon Inc. Pension liability adjustments 1,504 15,585 3,460 See Note 11 (175 ) (3,710 ) (1,037 ) Income taxes 1,329 11,875 2,423 Consolidated net income 23 — (262 ) Net income attributable to noncontrolling interests 1,352 11,875 2,161 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling interests ¥ 4,211 ¥ 12,252 ¥ 10,416 *1 Amounts in parentheses indicate gains in consolidated statements of income. Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments, including amounts attributable to noncontrolling interests, are as follows: Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2015: Foreign currency translation adjustments ¥ (56,054 ) ¥ 550 ¥ (55,504 ) Net unrealized gains and losses on securities: Amount arising during the year 3,249 (1,045 ) 2,204 Reclassification adjustments for gains and losses realized in net income (298 ) 104 (194 ) Net change during the year 2,951 (941 ) 2,010 Net gains and losses on derivative instruments: Amount arising during the year 52 (304 ) (252 ) Reclassification adjustments for gains and losses realized in net income 4,217 (1,180 ) 3,037 Net change during the year 4,269 (1,484 ) 2,785 Pension liability adjustments: Amount arising during the year (13,166 ) 5,294 (7,872 ) Reclassification adjustments for gains and losses realized in net income 1,504 (175 ) 1,329 Net change during the year (11,662 ) 5,119 (6,543 ) Other comprehensive income (loss) ¥ (60,496 ) ¥ 3,244 ¥ (57,252 ) 2014: Foreign currency translation adjustments ¥ 144,826 ¥ (992 ) ¥ 143,834 Net unrealized gains and losses on securities: Amount arising during the year 6,379 (2,225 ) 4,154 Reclassification adjustments for gains and losses realized in net income (2,509 ) 879 (1,630 ) Net change during the year 3,870 (1,346 ) 2,524 Net gains and losses on derivative instruments: Amount arising during the year (3,309 ) 1,102 (2,207 ) Reclassification adjustments for gains and losses realized in net income 3,260 (1,248 ) 2,012 Net change during the year (49 ) (146 ) (195 ) Pension liability adjustments: Amount arising during the year (71,166 ) 21,306 (49,860 ) Reclassification adjustments for gains and losses realized in net income 15,585 (3,710 ) 11,875 Net change during the year (55,581 ) 17,596 (37,985 ) Other comprehensive income (loss) ¥ 93,066 ¥ 15,112 ¥ 108,178 Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2013: Foreign currency translation adjustments ¥ 253,707 ¥ (2,131 ) ¥ 251,576 Net unrealized gains and losses on securities: Amount arising during the year 12,669 (4,312 ) 8,357 Reclassification adjustments for gains and losses realized in net income (2,358 ) 613 (1,745 ) Net change during the year 10,311 (3,699 ) 6,612 Net gains and losses on derivative instruments: Amount arising during the year (12,145 ) 4,594 (7,551 ) Reclassification adjustments for gains and losses realized in net income 15,387 (5,780 ) 9,607 Net change during the year 3,242 (1,186 ) 2,056 Pension liability adjustments: Amount arising during the year 51,860 (21,614 ) 30,246 Reclassification adjustments for gains and losses realized in net income 3,460 (1,037 ) 2,423 Net change during the year 55,320 (22,651 ) 32,669 Other comprehensive income (loss) ¥ 322,580 ¥ (29,667 ) ¥ 292,913 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation | 15. Stock-Based Compensation On May 1, 2011, based on the approval of the shareholders, the Company granted stock options to its directors, executive officers and certain employees to acquire 912,000 shares of common stock. These option awards vest after two years of continued service beginning on the grant date and have a four year exercisable period. The grant-date fair value per share of the stock options granted during the year ended December 31, 2011 was ¥772. On May 1, 2010, based on the approval of the shareholders, the Company granted stock options to its directors, executive officers and certain employees to acquire 890,000 shares of common stock. These option awards vest after two years of continued service beginning on the grant date and have a four year exercisable period. The grant-date fair value per share of the stock options granted during the year ended December 31, 2010 was ¥988. On May 1, 2009, based on the approval of the shareholders, the Company granted stock options to its directors, executive officers and certain employees to acquire 954,000 shares of common stock. These option awards vest after two years of continued service beginning on the grant date and have a four year exercisable period. The grant-date fair value per share of the stock options granted during the year ended December 31, 2009 was ¥699. The compensation cost recognized for these stock options for the years ended December 31, 2015 and 2014 was nil and 2013 was ¥95 million, and is included in selling, general and administrative expenses in the consolidated statements of income. A summary of option activity under the stock option plans as of and for the years ended December 31, 2015, 2014 and 2013 is presented below: Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2013 2,726,400 ¥ 4,247 1.6 ¥ 37 Exercised (8,600 ) 3,287 Forfeited (60,400 ) 4,461 Outstanding at December 31, 2013 2,657,400 4,245 1.0 28 Exercised (67,200 ) 3,287 Forfeited/Expired (728,400 ) 4,869 Outstanding at December 31, 2014 1,861,800 4,036 0.7 248 Exercised (249,600 ) 3,311 Forfeited/Expired (316,200 ) 3,678 Outstanding at December 31, 2015 1,296,000 ¥ 4,263 0.4 ¥ — Exercisable at December 31, 2015 1,296,000 ¥ 4,263 0.4 ¥ — At December 31, 2015, all outstanding option awards were vested. The total fair value of shares vested during the years ended December 31, 2015 and 2014 was nil and 2013 was ¥570 million. Cash received from the exercise of stock options for the years ended December 31, 2015, 2014 and 2013 was ¥826 million, ¥221 million and ¥28 million, respectively. |
Net Income Attributable to Cano
Net Income Attributable to Canon Inc. Shareholders per Share | 12 Months Ended |
Dec. 31, 2015 | |
Net Income Attributable to Canon Inc. Shareholders per Share | 16. Net Income Attributable to Canon Inc. Shareholders per Share A reconciliation of the numerators and denominators of basic and diluted net income attributable to Canon Inc. shareholders per share computations is as follows: Years ended December 31 2015 2014 2013 (Millions of yen) Net income attributable to Canon Inc. ¥ 220,209 ¥ 254,797 ¥ 230,483 (Number of shares) Average common shares outstanding 1,092,017,955 1,112,509,931 1,147,933,835 Effect of dilutive securities: Stock options 34,931 4,393 8,466 Diluted common shares outstanding 1,092,052,886 1,112,514,324 1,147,942,301 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic ¥ 201.65 ¥ 229.03 ¥ 200.78 Diluted 201.65 229.03 200.78 The computation of diluted net income attributable to Canon Inc. shareholders per share for the years ended December 31, 2015, 2014 and 2013 excludes certain outstanding stock options because the effect would be anti-dilutive. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivatives and Hedging Activities | 17. Derivatives and Hedging Activities Risk management policy Canon operates internationally, exposing it to the risk of changes in foreign currency exchange rates. Derivative financial instruments are comprised principally of foreign exchange contracts utilized by the Company and certain of its subsidiaries to reduce the risk. Canon assesses foreign currency exchange rate risk by continually monitoring changes in the exposures and by evaluating hedging opportunities. Canon does not hold or issue derivative financial instruments for trading purposes. Canon is also exposed to credit-related losses in the event of non-performance by counterparties to derivative financial instruments, but it is not expected that any counterparties will fail to meet their obligations. Most of the counterparties are internationally recognized financial institutions and selected by Canon taking into account their financial condition, and contracts are diversified across a number of major financial institutions. Foreign currency exchange rate risk management Canon’s international operations expose Canon to the risk of changes in foreign currency exchange rates. Canon uses foreign exchange contracts to manage certain foreign currency exchange exposures principally from the exchange of U.S. dollars and euros into Japanese yen. These contracts are primarily used to hedge the foreign currency exposure of forecasted intercompany sales and intercompany trade receivables that are denominated in foreign currencies. In accordance with Canon’s policy, a specific portion of foreign currency exposure resulting from forecasted intercompany sales are hedged using foreign exchange contracts which principally mature within three months. Cash flow hedge Changes in the fair value of derivative financial instruments designated as cash flow hedges, including foreign exchange contracts associated with forecasted intercompany sales, are reported in accumulated other comprehensive income (loss). These amounts are subsequently reclassified into earnings through other income (deductions) in the same period as the hedged items affect earnings. Substantially all amounts recorded in accumulated other comprehensive income (loss) at year-end are expected to be recognized in earnings over the next twelve months. Canon excludes the time value component from the assessment of hedge effectiveness. Changes in the fair value of a foreign exchange contract for the period between the date that the forecasted intercompany sales occur and its maturity date are recognized in earnings and not considered hedge ineffectiveness. Derivatives not designated as hedges Canon has entered into certain foreign exchange contracts to primarily offset the earnings impact related to fluctuations in foreign currency exchange rates associated with certain assets denominated in foreign currencies. Although these foreign exchange contracts have not been designated as hedges as required in order to apply hedge accounting, the contracts are effective from an economic perspective. The changes in the fair value of these contracts are recorded in earnings immediately. Contract amounts of foreign exchange contracts at December 31, 2015 and 2014 are set forth below: December 31 2015 2014 (Millions of yen) To sell foreign currencies ¥ 228,053 ¥ 358,862 To buy foreign currencies 37,540 21,365 Fair value of derivative instruments in the consolidated balance sheets The following tables present Canon’s derivative instruments measured at gross fair value as reflected in the consolidated balance sheets at December 31, 2015 and 2014. Derivatives designated as hedging instruments Fair value December 31 Balance sheet location 2015 2014 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets ¥ 373 ¥ 8 Liabilities: Foreign exchange contracts Other current liabilities 534 1,597 Derivatives not designated as hedging instruments Fair value December 31 Balance sheet location 2015 2014 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets ¥ 1,112 ¥ 257 Liabilities: Foreign exchange contracts Other current liabilities 90 9,570 Effect of derivative instruments in the consolidated statements of income The following tables present the effect of Canon’s derivative instruments in the consolidated statements of income for the years ended December 31, 2015, 2014 and 2013. Derivatives in cash flow hedging relationships Years ended December 31 Gain (loss) Gain (loss) reclassified from Gain (loss) recognized in income Amount Location Amount Location Amount (Millions of yen) 2015: Foreign exchange contracts ¥ 52 Other, net ¥ (4,217 ) Other, net ¥ (131 ) 2014: Foreign exchange contracts (3,309 ) Other, net (3,260 ) Other, net (145 ) 2013: Foreign exchange contracts (12,145 ) Other, net (15,387 ) Other, net (111 ) Derivatives not designated as hedging instruments Gain (loss) recognized in income on derivative Years ended December 31 Location 2015 2014 2013 (Millions of yen) Foreign exchange contracts Other, net ¥ 1,099 ¥ (21,728 ) ¥ (61,787 ) |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingent Liabilities | 18. Commitments and Contingent Liabilities Commitments At December 31, 2015, commitments outstanding for the purchase of property, plant and equipment approximated ¥43,059 million, and commitments outstanding for the purchase of parts and raw materials approximated ¥75,439 million. Canon occupies sales offices and other facilities under lease arrangements accounted for as operating leases. Deposits made under such arrangements aggregated ¥13,561 million and ¥13,847 million at December 31, 2015 and 2014, respectively, and are included in noncurrent receivables in the accompanying consolidated balance sheets. Rental expenses under such operating lease arrangements amounted to ¥46,483 million, ¥43,215 million and ¥44,562 million for the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum lease payments required under noncancelable operating leases that have initial or remaining lease terms in excess of one year at December 31, 2015 are as follows: (Millions of yen) Year ending December 31: 2016 ¥ 26,294 2017 20,328 2018 13,855 2019 8,847 2020 6,115 Thereafter 12,153 Total future minimum lease payments ¥ 87,592 Guarantees Canon provides guarantees for bank loans of its employees, affiliates and other companies. The guarantees for the employees are principally made for their housing loans. The guarantees of loans of its affiliates and other companies are made to ensure that those companies operate with less financial risk. For each guarantee provided, Canon would have to perform under a guarantee if the borrower defaults on a payment within the contract periods of 1 year to 30 years, in the case of employees with housing loans, and 1 year to 5 years, in the case of affiliates and other companies. The maximum amount of undiscounted payments Canon would have had to make in the event of default is ¥7,685 million at December 31, 2015. The carrying amounts of the liabilities recognized for Canon’s obligations as a guarantor under those guarantees at December 31, 2015 were not significant. Canon also issues contractual product warranties under which it generally guarantees the performance of products delivered and services rendered for a certain period or term. Changes in accrued product warranty costs for the years ended December 31, 2015 and 2014 are summarized as follows: Years ended December 31 2015 2014 (Millions of yen) Balance at beginning of year ¥ 11,564 ¥ 10,890 Additions 18,942 15,699 Utilization (12,404 ) (12,039 ) Other (4,088 ) (2,986 ) Balance at end of year ¥ 14,014 ¥ 11,564 Legal proceedings Canon is involved in various claims and legal actions arising in the ordinary course of business. Canon has recorded provisions for liabilities when it is probable that liabilities have been incurred and the amount of loss can be reasonably estimated. Canon reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of the negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Based on its experience, although litigation is inherently unpredictable, Canon believes that any damage amounts claimed in outstanding matters are not a meaningful indicator of Canon’s potential liability. In the opinion of management, any reasonably possible range of losses from outstanding matters would not have a material adverse effect on Canon’s consolidated financial position, results of operations, or cash flows. |
Disclosures about the Fair Valu
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk | 19. Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk Fair value of financial instruments The estimated fair values of Canon’s financial instruments at December 31, 2015 and 2014 are set forth below. The following summary excludes cash and cash equivalents, trade receivables, finance receivables, noncurrent receivables, short-term loans, trade payables and accrued expenses for which fair values approximate their carrying amounts. The summary also excludes investments and derivative instruments which are disclosed in Note 2 and Note 17, respectively. December 31 2015 2014 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments ¥ (1,543 ) ¥ (1,507 ) ¥ (2,163 ) ¥ (2,146 ) The following methods and assumptions are used to estimate the fair value in the above table. Long-term debt Canon’s long-term debt instruments are classified as Level 2 instruments and valued based on the present value of future cash flows associated with each instrument discounted using current market borrowing rates for similar debt instruments of comparable maturity. The levels are more fully described in Note 20. Limitations of fair value estimates Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Concentrations of credit risk At December 31, 2015 and 2014, one customer accounted for approximately 15% and 16% of consolidated trade receivables, respectively. Although Canon does not expect that the customer will fail to meet its obligations, Canon is potentially exposed to concentrations of credit risk if the customer failed to perform according to the terms of the contracts. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements | 20. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy that prioritizes the inputs used to measure fair value is as follows: Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable, which reflect the reporting entity’s own assumptions about the assumptions that market participants would use in establishing a price. Assets and liabilities measured at fair value on a recurring basis The following tables present Canon’s assets and liabilities that are measured at fair value on a recurring basis consistent with the fair value hierarchy at December 31, 2015 and 2014. December 31, 2015 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents ¥ — ¥ 80,870 ¥ — ¥ 80,870 Available-for-sale (noncurrent): Government bonds 287 — — 287 Corporate bonds — 201 — 201 Fund trusts 12 52 — 64 Equity securities 42,849 — — 42,849 Derivatives — 1,485 — 1,485 Total assets ¥ 43,148 ¥ 82,608 ¥ — ¥ 125,756 Liabilities: Derivatives ¥ — ¥ 624 ¥ — ¥ 624 Total liabilities ¥ — ¥ 624 ¥ — ¥ 624 December 31, 2014 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents ¥ — ¥ 139,240 ¥ — ¥ 139,240 Available-for-sale (noncurrent): Government bonds 325 — — 325 Corporate bonds — 162 474 636 Fund trusts 12 72 — 84 Equity securities 40,653 — — 40,653 Derivatives — 265 — 265 Total assets ¥ 40,990 ¥ 139,739 ¥ 474 ¥ 181,203 Liabilities: Derivatives ¥ — ¥ 11,167 ¥ — ¥ 11,167 Total liabilities ¥ — ¥ 11,167 ¥ — ¥ 11,167 Level 1 investments are comprised principally of Japanese equity securities, which are valued using an unadjusted quoted market price in active markets with sufficient volume and frequency of transactions. Level 2 cash and cash equivalents are valued based on market approach, using quoted prices for identical assets in markets that are not active. Level 3 investments are mainly comprised of corporate bonds, which are valued based on cost approach, using unobservable inputs as the market for the assets was not active at the measurement date. Derivative financial instruments are comprised of foreign exchange contracts. Level 2 derivatives are valued using quotes obtained from counterparties or third parties, which are periodically validated by pricing models using observable market inputs, such as foreign currency exchange rates and interest rates, based on market approach. The following table presents the changes in Level 3 assets measured on a recurring basis, consisting primarily of corporate bonds, for the years ended December 31, 2015 and 2014. Years ended December 31 2015 2014 (Millions of yen) Balance at beginning of year ¥ 474 ¥ 340 Total gains or losses (realized or unrealized): Included in earnings — — Included in other comprehensive income (loss) 22 (18 ) Purchases, issuances, and settlements (496 ) 152 Balance at end of year ¥ — ¥ 474 Assets and liabilities measured at fair value on a nonrecurring basis During the years ended December 31, 2015 and 2014, there were no circumstances that required any significant assets or liabilities to be measured at fair value on a nonrecurring basis. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information | 21. Segment Information Canon operates its business in three segments: the Office Business Unit, the Imaging System Business Unit, and the Industry and Others Business Unit, which are based on the organizational structure and information reviewed by Canon’s management to evaluate results and allocate resources. The primary products included in each segment are as follows: Office Business Unit: Office multifunction devices (MFDs) / Laser multifunction printers / Laser printers / Digital production printing systems / High speed continuous feed printers / Wide-format printers / Document solutions Imaging System Business Unit: Interchangeable lens digital cameras / Digital compact cameras / Digital camcorders / Digital cinema cameras / Interchangeable lenses / Compact photo printers / Inkjet printers / Large-format inkjet printers / Commercial photo printers / Image scanners / Multimedia projectors / Broadcast equipment / Calculators Industry and Others Business Unit: Semiconductor lithography equipment / FPD (Flat panel display) lithography equipment / Digital radiography systems / Ophthalmic equipment / Vacuum thin-film deposition equipment / Organic LED (OLED) panel manufacturing equipment / Die bonders / Micromotors / Network cameras / Handy terminals / Document scanners The accounting policies of the segments are substantially the same as those described in the significant accounting policies in Note 1. Canon evaluates performance of, and allocates resources to, each segment based on operating profit. Information about operating results and assets for each segment as of and for the years ended December 31, 2015, 2014 and 2013 is as follows: Office Imaging Industry and Corporate and Consolidated (Millions of yen) 2015: Net sales: External customers ¥ 2,108,246 ¥ 1,262,667 ¥ 429,358 ¥ — ¥ 3,800,271 Intersegment 2,570 1,168 95,293 (99,031 ) — Total 2,110,816 1,263,835 524,651 (99,031 ) 3,800,271 Operating cost and expenses 1,820,230 1,080,396 537,730 6,705 3,445,061 Operating profit ¥ 290,586 ¥ 183,439 ¥ (13,079 ) ¥ (105,736 ) ¥ 355,210 Total assets ¥ 1,020,758 ¥ 452,283 ¥ 332,252 ¥ 2,622,480 ¥ 4,427,773 Depreciation and amortization 86,206 52,070 45,064 89,987 273,327 Capital expenditures 73,819 38,337 24,241 106,733 243,130 2014: Net sales: External customers ¥ 2,075,788 ¥ 1,342,501 ¥ 308,963 ¥ — ¥ 3,727,252 Intersegment 2,944 693 89,802 (93,439 ) — Total 2,078,732 1,343,194 398,765 (93,439 ) 3,727,252 Operating cost and expenses 1,786,675 1,148,593 420,566 7,929 3,363,763 Operating profit ¥ 292,057 ¥ 194,601 ¥ (21,801 ) ¥ (101,368 ) ¥ 363,489 Total assets ¥ 1,025,499 ¥ 517,524 ¥ 342,695 ¥ 2,574,900 ¥ 4,460,618 Depreciation and amortization 87,058 53,912 37,544 84,966 263,480 Capital expenditures 69,704 31,124 15,976 107,956 224,760 2013: Net sales: External customers ¥ 1,993,898 ¥ 1,448,186 ¥ 289,296 ¥ — ¥ 3,731,380 Intersegment 6,175 752 85,574 (92,501 ) — Total 2,000,073 1,448,938 374,870 (92,501 ) 3,731,380 Operating cost and expenses 1,733,165 1,245,144 400,201 15,593 3,394,103 Operating profit ¥ 266,908 ¥ 203,794 ¥ (25,331 ) ¥ (108,094 ) ¥ 337,277 Total assets ¥ 954,803 ¥ 584,856 ¥ 328,202 ¥ 2,374,849 ¥ 4,242,710 Depreciation and amortization 88,344 56,564 37,072 93,193 275,173 Capital expenditures 54,644 44,112 27,040 101,682 227,478 Intersegment sales are recorded at the same prices used in transactions with third parties. Expenses not directly associated with specific segments are allocated based on the most reasonable measures applicable. Corporate expenses include certain corporate research and development expenses. Segment assets are based on those directly associated with each segment. Corporate assets primarily consist of cash and cash equivalents, investments, deferred tax assets, goodwill and corporate properties. Capital expenditures represent the additions to property, plant and equipment and intangible assets measured on an accrual basis. Information about product sales to external customers by business unit for the years ended December 31, 2015, 2014 and 2013 is as follows: Years ended December 31 2015 2014 2013 (Millions of yen) Office Monochrome copiers ¥ 328,061 ¥ 322,398 ¥ 312,973 Color copiers 421,209 401,447 381,848 Printers 857,369 862,000 841,436 Others 501,607 489,943 457,641 Total 2,108,246 2,075,788 1,993,898 Imaging System Cameras 782,623 861,196 973,517 Inkjet printers 362,663 366,946 363,070 Others 117,381 114,359 111,599 Total 1,262,667 1,342,501 1,448,186 Industry and Others Lithography equipment 123,887 90,395 62,116 Others 305,471 218,568 227,180 Total 429,358 308,963 289,296 Consolidated ¥ 3,800,271 ¥ 3,727,252 ¥ 3,731,380 Information by major geographic area as of and for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 (Millions of yen) Net sales: Japan ¥ 714,280 ¥ 724,317 ¥ 715,863 Americas 1,144,422 1,036,500 1,059,501 Europe 1,074,366 1,090,484 1,124,929 Asia and Oceania 867,203 875,951 831,087 Total ¥ 3,800,271 ¥ 3,727,252 ¥ 3,731,380 Long-lived assets: Japan ¥ 937,716 ¥ 950,719 ¥ 984,231 Americas 150,105 157,748 131,660 Europe 183,451 127,700 111,609 Asia and Oceania 189,588 210,650 196,305 Total ¥ 1,460,860 ¥ 1,446,817 ¥ 1,423,805 Net sales are attributed to areas based on the location where the product is shipped to the customers. Other than in Japan and the United States, Canon does not conduct business in any individual country in which its sales in that country exceed 10% of consolidated net sales. Net sales in the United States were ¥1,047,838 million, ¥938,411 million and ¥960,213 million for the years ended December 31, 2015, 2014 and 2013, respectively. Long-lived assets represent property, plant and equipment and intangible assets for each geographic area. The following information is based on the location of the Company and its subsidiaries as of and for the years ended December 31, 2015, 2014 and 2013. In addition to the disclosure requirements under U.S. GAAP, Canon discloses this information in order to provide financial statements users with useful information. Japan Americas Europe Asia and Corporate and Consolidated (Millions of yen) 2015: Net sales: External customers ¥ 847,669 ¥ 1,138,830 ¥ 1,077,033 ¥ 736,739 ¥ — ¥ 3,800,271 Intersegment 1,765,840 21,069 106,675 911,395 (2,804,979 ) — Total 2,613,509 1,159,899 1,183,708 1,648,134 (2,804,979 ) 3,800,271 Operating cost and expenses 2,285,780 1,130,099 1,165,218 1,582,113 (2,718,149 ) 3,445,061 Operating profit ¥ 327,729 ¥ 29,800 ¥ 18,490 ¥ 66,021 ¥ (86,830 ) ¥ 355,210 Total assets ¥ 969,805 ¥ 544,395 ¥ 409,357 ¥ 620,090 ¥ 1,884,126 ¥ 4,427,773 2014: Net sales: External customers ¥ 836,801 ¥ 1,033,797 ¥ 1,088,293 ¥ 768,361 ¥ — ¥ 3,727,252 Intersegment 1,752,378 8,738 59,493 821,600 (2,642,209 ) — Total 2,589,179 1,042,535 1,147,786 1,589,961 (2,642,209 ) 3,727,252 Operating cost and expenses 2,245,930 1,018,661 1,135,515 1,522,244 (2,558,587 ) 3,363,763 Operating profit ¥ 343,249 ¥ 23,874 ¥ 12,271 ¥ 67,717 ¥ (83,622 ) ¥ 363,489 Total assets ¥ 1,134,484 ¥ 531,122 ¥ 484,858 ¥ 674,672 ¥ 1,635,482 ¥ 4,460,618 2013: Net sales: External customers ¥ 797,501 ¥ 1,056,096 ¥ 1,124,603 ¥ 753,180 ¥ — ¥ 3,731,380 Intersegment 1,855,181 11,774 53,281 881,765 (2,802,001 ) — Total 2,652,682 1,067,870 1,177,884 1,634,945 (2,802,001 ) 3,731,380 Operating cost and expenses 2,326,351 1,043,487 1,171,357 1,574,125 (2,721,217 ) 3,394,103 Operating profit ¥ 326,331 ¥ 24,383 ¥ 6,527 ¥ 60,820 ¥ (80,784 ) ¥ 337,277 Total assets ¥ 1,152,398 ¥ 447,039 ¥ 496,549 ¥ 631,827 ¥ 1,514,897 ¥ 4,242,710 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Event | 22. Subsequent Event On March 17, 2016, the Board of Directors of the Company approved an acquisition of Toshiba Medical Systems Corporation (“TMSC”) from Toshiba Corporation (“Toshiba”) to make TMSC a subsidiary, and concurrently it has entered into a share transfer agreement with Toshiba. The Company paid a total consideration of ¥665.5 billion for a right to acquire all the ordinary shares of TMSC, which is exercisable upon the clearance of necessary competition regulatory authorities. The Company borrowed the consideration through bank borrowing of ¥660 billion provisionally, which is due on September 30, 2016. The Company plans to make its final decision on whether to use own funds, borrowings or a combination of both, to fund the acquisition, by that time. Until the clearance of necessary competition regulatory authorities is obtained, the Company does not expect to consolidate TMSC since it does not currently hold power over TMSC including voting rights in the shareholders meeting of TMSC. Under Phase V of its Excellent Global Corporation Plan, a five-year initiative launched in 2016, the Company aims to embrace the challenge of new growth through a grand strategic transformation. With regard to reinforcing and expanding new businesses in particular, which represents one of the important strategies to be carried out during this phase, the Company intends to cultivate its health care business within the safety and security sector as a next-generation pillar of growth. TMSC is one of the leading global companies in the medical equipment industry. Within the field of medical X-ray |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Schedule II Valuation and Qualifying Accounts | Canon Inc. and Subsidiaries Schedule II Valuation and Qualifying Accounts Balance at Addition- charged to Deduction Translation and other Balance (Millions of yen) Year ended December 31, 2015: Allowance for doubtful receivables Trade receivables ¥ 12,122 ¥ 2,180 ¥ (1,745 ) ¥ (480 ) ¥ 12,077 Finance receivables 6,276 55 (1,343 ) (2,110 ) 2,878 Year ended December 31, 2014: Allowance for doubtful receivables Trade receivables ¥ 12,730 ¥ 878 ¥ (2,236 ) ¥ 750 ¥ 12,122 Finance receivables 7,323 154 (1,171 ) (30 ) 6,276 Year ended December 31, 2013: Allowance for doubtful receivables Trade receivables ¥ 12,970 ¥ 1,235 ¥ (4,173 ) ¥ 2,698 ¥ 12,730 Finance receivables 6,908 212 (1,278 ) 1,481 7,323 |
Basis of Presentation and Sig31
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Description of Business | (a) Description of Business Canon Inc. (the “Company”) and subsidiaries (collectively “Canon”) is one of the world’s leading manufacturers in such fields as office products, imaging system products and industry and other products. Office products consist mainly of office multifunction devices (“MFDs”), laser multifunction printers (“MFPs”), laser printers, digital production printing systems, high speed continuous feed printers, wide-format printers and document solutions. Imaging system products consist mainly of interchangeable lens digital cameras, digital compact cameras, digital camcorders, digital cinema cameras, interchangeable lenses, compact photo printers, inkjet printers, large-format inkjet printers, commercial photo printers, image scanners, multimedia projectors, broadcast equipment and calculators. Industry and other products consist mainly of semiconductor lithography equipment, FPD (Flat panel display) lithography equipment, digital radiography systems, ophthalmic equipment, vacuum thin-film deposition equipment, organic LED (“OLED”) panel manufacturing equipment, die bonders, micromotors, network cameras, handy terminals and document scanners. Canon’s consolidated net sales for the years ended December 31, 2015, 2014 and 2013 were distributed as follows: the Office Business Unit 55.5%, 55.8% and 53.6%, the Imaging System Business Unit 33.3%, 36.0% and 38.8%, the Industry and Others Business Unit 13.8%, 10.7% and 10.0%, and elimination between segments 2.6%, 2.5% and 2.4%, respectively. These percentages were computed by dividing segment net sales, including intersegment sales, by consolidated net sales, based on the segment operating results described in Note 21. Sales are made principally under the Canon brand name, almost entirely through sales subsidiaries. These subsidiaries are responsible for marketing and distribution, and primarily sell to retail dealers in their geographic area. 81.2%, 80.6% and 80.8% of consolidated net sales for the years ended December 31, 2015, 2014 and 2013 were generated outside Japan, with 30.1%, 27.8% and 28.4% in the Americas, 28.3%, 29.3% and 30.1% in Europe, and 22.8%, 23.5% and 22.3% in Asia and Oceania, respectively. Canon sells laser printers on an OEM basis to HP Inc.; such sales constituted 17.8%, 17.4% and 17.6% of consolidated net sales for the years ended December 31, 2015, 2014 and 2013, respectively, and are included in the Office Business Unit. Canon’s manufacturing operations are conducted primarily at 28 plants in Japan and 18 overseas plants which are located in countries or regions such as the United States, Germany, France, the Netherlands, Taiwan, China, Malaysia, Thailand, Vietnam and Philippines. |
Basis of Presentation | (b) Basis of Presentation The Company and its domestic subsidiaries maintain their books of account in conformity with financial accounting standards of Japan. Foreign subsidiaries maintain their books of account in conformity with financial accounting standards of the countries of their domicile. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform with U.S. generally accepted accounting principles (“GAAP”). These adjustments were not recorded in the statutory books of account. |
Principles of Consolidation | (c) Principles of Consolidation The consolidated financial statements include the accounts of the Company, its majority owned subsidiaries and those variable interest entities where the Company or its consolidated subsidiaries are the primary beneficiaries. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | (d) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions are reflected in valuation and disclosure of revenue recognition, allowance for doubtful receivables, inventories, long-lived assets, goodwill and other intangible assets with indefinite useful lives, environmental liabilities, deferred tax assets, uncertain tax positions and employee retirement and severance benefit obligations. Actual results could differ materially from those estimates. |
Translation of Foreign Currencies | (e) Translation of Foreign Currencies Assets and liabilities of the Company’s subsidiaries located outside Japan with functional currencies other than Japanese yen are translated into Japanese yen at the rates of exchange in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the year. Gains and losses resulting from translation of financial statements are excluded from earnings and are reported in other comprehensive income (loss). Gains and losses resulting from foreign currency transactions, including foreign exchange contracts, and translation of assets and liabilities denominated in foreign currencies are included in other income (deductions) in the consolidated statements of income. Foreign currency exchange gains and losses were a net loss of ¥22,149 million for the year ended December 31, 2015, a net gain of ¥2,628 million for the year ended December 31, 2014 and a net loss of ¥1,992 million for the year ended December 31, 2013, respectively. |
Cash Equivalents | (f) Cash Equivalents All highly liquid investments acquired with original maturities of three months or less are considered to be cash equivalents. Certain debt securities with original maturities of less than three months, classified as available-for-sale securities of ¥80,870 million and ¥139,240 million at December 31, 2015 and 2014, respectively, are included in cash and cash equivalents in the consolidated balance sheets. |
Investments | (g) Investments Investments consist primarily of time deposits with original maturities of more than three months, debt and marketable equity securities, investments in affiliated companies and non-marketable equity securities. Canon reports investments with maturities of less than one year as short-term investments. Canon classifies investments in debt and marketable equity securities as available-for-sale or held-to-maturity Available-for-sale securities are recorded at fair value. Fair value is determined based on quoted market prices, projected discounted cash flows or other valuation techniques as appropriate. Unrealized holding gains and losses, net of the related tax effect, are reported as a separate component of accumulated other comprehensive income (loss) until realized. Held-to-maturity securities are recorded at amortized cost, adjusted for amortization of premiums and accretion of discounts. Available-for-sale and held-to-maturity securities are regularly reviewed for other-than-temporary declines in the carrying amount based on criteria that include the length of time and the extent to which the market value has been less than cost, the financial condition and near-term prospects of the issuer and Canon’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. For debt securities for which the declines are deemed to be other-than-temporary and there is no intent to sell, impairments are separated into the amount related to credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in other comprehensive income (loss). For debt securities for which the declines are deemed to be other-than-temporary and there is an intent to sell, impairments in their entirety are recognized in earnings. For equity securities for which the declines are deemed to be other-than-temporary, impairments in their entirety are recognized in earnings. Canon recognizes an impairment loss to the extent by which the cost basis of the investment exceeds the fair value of the investment. Realized gains and losses are determined by the average cost method and reflected in earnings. Investments in affiliated companies over which Canon has the ability to exercise significant influence, but does not hold a controlling financial interest, are accounted for by the equity method. Non-marketable equity securities in companies over which Canon does not have the ability to exercise significant influence are stated at cost and reviewed periodically for impairment. |
Allowance for Doubtful Receivables | (h) Allowance for Doubtful Receivables Allowance for doubtful trade and finance receivables is maintained for all customers based on a combination of factors, including aging analysis, macroeconomic conditions and historical experience. An additional reserve for individual accounts is recorded when Canon becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. When all collection options are exhausted including legal recourse, the accounts or portions thereof are deemed to be uncollectable and charged against the allowance. |
Inventories | (i) Inventories Inventories are stated at the lower of cost or market value. Cost is determined by the average method for domestic inventories and principally by the first-in, first-out method for overseas inventories. |
Impairment of Long-Lived Assets | (j) Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment, and acquired intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset and the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. |
Property, Plant and Equipment | (k) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is calculated principally by the declining-balance method, except for certain assets which are depreciated by the straight-line method over the estimated useful lives of the assets. The depreciation period ranges from 3 years to 60 years for buildings and 1 year to 20 years for machinery and equipment. Assets leased to others under operating leases are stated at cost and depreciated to the estimated residual value of the assets by the straight-line method over the lease term, generally from 2 years to 5 years. |
Goodwill and Other Intangible Assets | (l) Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment annually in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. Canon performs its impairment test of goodwill using the two-step approach at the reporting unit level, which is one level below the operating segment level. All goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. If the carrying amount assigned to the reporting unit exceeds the fair value of the reporting unit, Canon performs the second step to measure an impairment charge in the amount by which the carrying amount of a reporting unit’s goodwill exceeds its implied fair value. Intangible assets with finite useful lives consist primarily of software, trademarks, patents and developed technology, license fees and customer relationships, which are amortized using the straight-line method. The estimated useful lives of software are from 3 years to 5 years, trademarks are 15 years, patents and developed technology are from 7 years to 16 years, license fees are 7 years, and customer relationships are from 8 years to 15 years, respectively. Certain costs incurred in connection with developing or obtaining internal-use software are capitalized. These costs consist primarily of payments made to third parties and the salaries of employees working on such software development. Costs incurred in connection with developing internal-use software are capitalized at the application development stage. In addition, Canon develops or obtains certain software to be sold where related costs are capitalized after establishment of technological feasibility. |
Environmental Liabilities | (m) Environmental Liabilities Liabilities for environmental remediation and other environmental costs are accrued when environmental assessments or remedial efforts are probable and the costs can be reasonably estimated. Such liabilities are adjusted as further information develops or circumstances change. Costs of future obligations are not discounted to their present values. |
Income Taxes | (n) Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Canon records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not realizable. Canon recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the tax positions will be sustained upon examination by the tax authorities. Benefits from tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income taxes in the consolidated statements of income. |
Stock-Based Compensation | (o) Stock-Based Compensation Canon measures stock-based compensation cost at the grant date, based on the fair value of the award, and recognizes the cost on a straight-line basis over the requisite service period, which is the vesting period. |
Net Income Attributable to Canon Inc. Stockholders per Share | (p) Net Income Attributable to Canon Inc. Shareholders per Share Basic net income attributable to Canon Inc. shareholders per share is computed by dividing net income attributable to Canon Inc. by the weighted-average number of common shares outstanding during each year. Diluted net income attributable to Canon Inc. shareholders per share includes the effect from potential issuances of common stock based on the assumptions that all stock options were exercised. |
Revenue Recognition | (q) Revenue Recognition Canon generates revenue principally through the sale of office and imaging system products, equipment, supplies, and related services under separate contractual arrangements. Canon recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title and risk of loss have been transferred to the customer or services have been rendered, the sales price is fixed or determinable, and collectibility is probable. Revenue from sales of office products, such as office MFDs and laser printers, and imaging system products, such as digital cameras and inkjet printers, is recognized upon shipment or delivery, depending upon when title and risk of loss transfer to the customer. Canon also offers separately priced product maintenance contracts for most office products, for which the customer typically pays a stated base service fee plus a variable amount based on usage. Revenue from these service maintenance contracts is measured at the stated amount of the contract and recognized as services are provided and variable amounts are earned. Revenue from the sale of equipment under sales-type leases is recognized at the inception of the lease. Income on sales-type leases and direct-financing leases is recognized over the life of each respective lease using the interest method. Leases not qualifying as sales-type leases or direct-financing leases are accounted for as operating leases and related revenue is recognized ratably over the lease term. When equipment leases are bundled with product maintenance contracts, revenue is allocated based upon the estimated relative fair value of the lease and non-lease deliverables. Lease deliverables generally include equipment, financing and executory costs, while non-lease deliverables generally consist of product maintenance contracts and supplies. Revenue from sales of optical equipment, such as semiconductor lithography equipment and FPD lithography equipment that are sold with customer acceptance provisions related to their functionality, is recognized when the equipment is installed at the customer site and the specific criteria of the equipment functionality are successfully tested and demonstrated by Canon. Service revenue is derived primarily from separately priced product maintenance contracts on equipment sold to customers and is measured at the stated amount of the contract and recognized as services are provided. For all other arrangements with multiple elements, Canon allocates revenue to each element based on its relative selling price if such element meets the criteria for treatment as a separate unit of accounting. Otherwise, revenue is deferred until the undelivered elements are fulfilled and accounted for as a single unit of accounting. Canon records estimated reductions to sales at the time of sale for sales incentive programs including product discounts, customer promotions and volume-based rebates. Estimated reductions to sales are based upon historical trends and other known factors at the time of sale. Canon regularly adjusts its estimates each period in the ordinary course of establishing sales incentive program accruals based on current information. Canon also provides price protection to certain resellers of its products, and records reductions to sales for the estimated impact of price protection obligations when announced. Estimated product warranty costs are recorded at the time revenue is recognized and are included in selling, general and administrative expenses in the consolidated statements of income. Estimates for accrued product warranty costs are based on historical experience, and are affected by ongoing product failure rates, specific product class failures outside of the baseline experience, material usage and service delivery costs incurred in correcting a product failure. Taxes collected from customers and remitted to governmental authorities are excluded from revenues in the consolidated statements of income. |
Research and Development Costs | (r) Research and Development Costs Research and development costs are expensed as incurred. |
Advertising Costs | (s) Advertising Costs Advertising costs are expensed as incurred. Advertising expenses were ¥80,907 million, ¥79,765 million and ¥86,398 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Shipping and Handling Costs | (t) Shipping and Handling Costs Shipping and handling costs totaled ¥52,504 million, ¥49,576 million and ¥47,460 million for the years ended December 31, 2015, 2014 and 2013, respectively, and are included in selling, general and administrative expenses in the consolidated statements of income. |
Derivative Financial Instruments | (u) Derivative Financial Instruments All derivatives are recognized at fair value and are included in prepaid expenses and other current assets, or other current liabilities in the consolidated balance sheets. Canon uses and designates certain derivatives as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge). Canon formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. Canon also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, Canon discontinues hedge accounting prospectively. Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability in cash flows of the hedged item. Gains and losses from hedging ineffectiveness are included in other income (deductions). Gains and losses related to the components of hedging instruments excluded from the assessment of hedge effectiveness are included in other income (deductions). Canon also uses certain derivative financial instruments which are not designated as hedges. The changes in fair values of these derivative financial instruments are immediately recorded in earnings. Canon classifies cash flows from derivatives as cash flows from operating activities in the consolidated statements of cash flows. |
Guarantees | (v) Guarantees Canon recognizes, at the inception of a guarantee, a liability for the fair value of the obligation it has undertaken in issuing guarantees. |
Recently Issued Accounting Guidance | (w) Recently Issued Accounting Guidance In September 2015, the Financial Accounting Standards Board (“FASB”) issued an amendment which requires an acquirer in a business combination to recognize the effect on earnings of any adjustments identified during the measurement period after an acquisition in the same period the adjustment is identified, as opposed to the prior guidance which required material adjustments be retrospectively adjusted. Canon adopted this amended guidance from the quarter beginning October 1, 2015. This adoption did not have a material impact on its consolidated results of operations and financial condition. In May 2014, the FASB issued a new accounting standard related to revenue from contracts with customers. This standard requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard was originally planned to be effective for annual reporting periods beginning after December 15, 2016, however, in August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date. Early adoption as of the original effective date is permitted. This standard may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this standard recognized at the date of initial application. Canon has not selected a transition method and is currently evaluating the adoption date and the effect that the adoption of this standard will have on its consolidated results of operations and financial condition. In July 2015, the FASB issued an amendment which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for annual reporting periods beginning after December 15, 2016, and early adoption is permitted. Canon is currently evaluating the adoption date and does not expect the adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. In November 2015, the FASB issued an amendment which requires deferred tax assets and liabilities be classified as noncurrent in the consolidated balance sheets. This guidance is effective for annual reporting periods beginning after December 15, 2016, and early adoption is permitted. Canon will early adopt this amended guidance from the quarter beginning January 1, 2016, on a prospective basis, and prior periods were not retrospectively adjusted. The adoption of this guidance will have an impact on its consolidated balance sheets as our current deferred tax assets were ¥55,108 million and current deferred tax liabilities were ¥2,682 million as of December 31, 2015. In January 2016, the FASB issued an amendment which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance includes the requirement that equity investments be measured at fair value with changes in the fair value recognized in net income. This guidance is effective for annual reporting periods beginning after December 15, 2017, and early adoption is permitted for certain provisions. Canon is currently evaluating the adoption date and the effect that the adoption of this guidance will have on its consolidated results of operations and financial condition. In February 2016, the FASB issued an amendment which requires lessees to recognize most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current guidance. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. Canon is currently evaluating the adoption date and the effect that the adoption of this guidance will have on its consolidated results of operations and financial condition. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Available-for-Sale Securities | The cost, gross unrealized holding gains, gross unrealized holding losses and fair value for available-for-sale securities included in investments by major security type at December 31, 2015 and 2014 were as follows: December 31, 2015 Cost Gross Gross Fair (Millions of yen) Noncurrent: Government bonds ¥ 298 ¥ — ¥ 11 ¥ 287 Corporate bonds 6 195 — 201 Fund trusts 63 1 — 64 Equity securities 20,461 23,482 1,094 42,849 ¥ 20,828 ¥ 23,678 ¥ 1,105 ¥ 43,401 December 31, 2014 Cost Gross Gross Fair (Millions of yen) Noncurrent: Government bonds ¥ 331 ¥ — ¥ 6 ¥ 325 Corporate bonds 512 153 29 636 Fund trusts 84 — — 84 Equity securities 20,905 19,765 17 40,653 ¥ 21,832 ¥ 19,918 ¥ 52 ¥ 41,698 |
Maturities of Available-for-Sale Debt Securities | Maturities of available-for-sale debt securities included in investments in the accompanying consolidated balance sheets were as follows at December 31, 2015: Cost Fair value (Millions of yen) Due after five years ¥ 304 ¥ 488 ¥ 304 ¥ 488 |
Trade Receivables (Tables)
Trade Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Trade Receivables | Trade receivables are summarized as follows: December 31 2015 2014 (Millions of yen) Notes ¥ 17,614 ¥ 18,476 Accounts 582,464 619,321 600,078 637,797 Less allowance for doubtful receivables (12,077 ) (12,122 ) ¥ 588,001 ¥ 625,675 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | Inventories are summarized as follows: December 31 2015 2014 (Millions of yen) Finished goods ¥ 357,115 ¥ 363,685 Work in process 130,258 144,394 Raw materials 14,522 20,088 ¥ 501,895 ¥ 528,167 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | Property, plant and equipment are stated at cost less accumulated depreciation and are summarized as follows: December 31 2015 2014 (Millions of yen) Land ¥ 282,786 ¥ 286,336 Buildings 1,632,604 1,609,667 Machinery and equipment 1,813,116 1,822,026 Construction in progress 61,952 70,759 3,790,458 3,788,788 Less accumulated depreciation (2,570,806 ) (2,519,259 ) ¥ 1,219,652 ¥ 1,269,529 |
Finance Receivables and Opera36
Finance Receivables and Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Financing Receivable | The components of the finance receivables, which are included in prepaid expenses and other current assets, and other assets in the accompanying consolidated balance sheets, are as follows: December 31 2015 2014 (Millions of yen) Total minimum lease payments receivable ¥ 318,066 ¥ 308,733 Unguaranteed residual values 14,271 13,924 Executory costs (888 ) (1,680 ) Unearned income (31,920 ) (31,919 ) 299,529 289,058 Less allowance for credit losses (2,878 ) (6,276 ) 296,651 282,782 Less current portion (109,220 ) (102,920 ) ¥ 187,431 ¥ 179,862 |
Allowance for Credit Losses | The activity in the allowance for credit losses is as follows: Years ended December 31 2015 2014 (Millions of yen) Balance at beginning of year ¥ 6,276 ¥ 7,323 Charge-offs (1,343 ) (1,171 ) Provision 55 154 Translation adjustments and other (2,110 ) (30 ) Balance at end of year ¥ 2,878 ¥ 6,276 |
Future Minimum Lease Payments to be Received under Financing Leases and Noncancelable Operating Leases | The following is a schedule by year of the future minimum lease payments to be received under financing leases and noncancelable operating leases at December 31, 2015. Financing leases Operating leases (Millions of yen) Year ending December 31: 2016 ¥ 127,714 ¥ 8,709 2017 90,137 5,307 2018 57,828 3,308 2019 30,501 1,786 2020 11,165 490 Thereafter 721 206 ¥ 318,066 ¥ 19,806 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at acquisition date. (Millions of yen) Current assets ¥ 31,365 Intangible assets 60,992 Goodwill 259,863 Other noncurrent assets 2,053 Non-current assets 322,908 Total assets acquired 354,273 Total liabilities assumed 32,462 Net assets acquired ¥ 321,811 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Intangible Assets Subject to Amortization | The components of intangible assets subject to amortization at December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 Gross Accumulated Gross Accumulated (Millions of yen) Software ¥ 308,348 ¥ 181,972 ¥ 312,069 ¥ 185,885 Trademarks 49,861 2,952 10,858 6,137 Patents and developed technology 39,685 16,123 22,371 13,845 Customer relationships 17,159 10,173 53,494 46,713 License fees 15,669 5,617 11,765 7,860 Other 17,070 7,690 16,455 7,351 ¥ 447,792 ¥ 224,527 ¥ 427,012 ¥ 267,791 |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by segment for the years ended December 31, 2015 and 2014 were as follows: Year ended December 31, 2015 Office Imaging Industry and Total (Millions of yen) Balance at beginning of year ¥ 145,335 ¥ 21,780 ¥ 44,221 ¥ 211,336 Goodwill acquired during the year 10,373 31,367 228,827 270,567 Translation adjustments and other (13,157 ) 327 9,870 (2,960 ) Balance at end of year ¥ 142,551 ¥ 53,474 ¥ 282,918 ¥ 478,943 Year ended December 31, 2014 Office Imaging Industry and Total (Millions of yen) Balance at beginning of year ¥ 139,412 ¥ 13,877 ¥ 8,351 ¥ 161,640 Goodwill acquired during the year 3,971 7,424 32,736 44,131 Translation adjustments and other 1,952 479 3,134 5,565 Balance at end of year ¥ 145,335 ¥ 21,780 ¥ 44,221 ¥ 211,336 |
Short-Term Loans and Long-Ter39
Short-Term Loans and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt | Long-term debt consisted of the following: December 31 2015 2014 (Millions of yen) Loans, principally from banks, maturing in installments through 2020; bearing weighted average interest of 1.81% and 2.79% at December 31, 2015 and 2014, respectively. ¥ 73 ¥ 145 Capital lease obligations 1,470 2,018 1,543 2,163 Less current portion (662 ) (1,015 ) ¥ 881 ¥ 1,148 |
Aggregate Annual Maturities of Long-Term Debt Outstanding | The aggregate annual maturities of long-term debt outstanding at December 31, 2015 were as follows: (Millions of yen) Year ending December 31: 2016 ¥ 662 2017 452 2018 281 2019 121 2020 27 Thereafter — ¥ 1,543 |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Trade Payables | Trade payables are summarized as follows: December 31 2015 2014 (Millions of yen) Notes ¥ 16,706 ¥ 14,112 Accounts 261,549 296,102 ¥ 278,255 ¥ 310,214 |
Employee Retirement and Sever41
Employee Retirement and Severance Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Projected Benefit Obligations and Fair Value of Plan Assets | Reconciliations of beginning and ending balances of the projected benefit obligations and the fair value of the plan assets are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year ¥ 760,331 ¥ 684,842 ¥ 364,662 ¥ 486,572 Service cost 30,009 26,445 7,760 6,801 Interest cost 8,008 10,772 10,572 10,654 Plan participants’ contributions — — 1,830 1,522 Actuarial (gain) loss 7,481 59,496 (5,534 ) 44,580 Benefits paid (24,479 ) (21,224 ) (6,795 ) (7,352 ) Plan amendments — — (2,655 ) — Curtailments and settlements — — — (191,179 ) Foreign currency exchange rate changes — — (20,160 ) 13,064 Projected benefit obligations at end of year 781,350 760,331 349,680 364,662 Change in plan assets: Fair value of plan assets at beginning of year 622,121 581,996 221,421 360,527 Actual return on plan assets 17,541 43,714 21 17,851 Employer contributions 8,701 15,676 10,864 6,470 Plan participants’ contributions — — 1,830 1,522 Benefits paid (21,788 ) (19,265 ) (6,795 ) (7,041 ) Settlements — — — (165,640 ) Foreign currency exchange rate changes — — (9,471 ) 7,732 Fair value of plan assets at end of year 626,575 622,121 217,870 221,421 Funded status at end of year ¥ (154,775 ) ¥ (138,210 ) ¥ (131,810 ) ¥ (143,241 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets at December 31, 2015 and 2014 are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Other assets ¥ 814 ¥ 532 ¥ 9,986 ¥ — Accrued expenses — — (1,123 ) (1,055 ) Accrued pension and severance cost (155,589 ) (138,742 ) (140,673 ) (142,186 ) ¥ (154,775 ) ¥ (138,210 ) ¥ (131,810 ) ¥ (143,241 ) |
Recognized Accumulated Other Comprehensive Income (Loss) Before Income Taxes | Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2015 and 2014 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Actuarial loss ¥ 208,946 ¥ 209,829 ¥ 71,750 ¥ 69,287 Prior service credit (79,935 ) (92,527 ) (2,567 ) (57 ) ¥ 129,011 ¥ 117,302 ¥ 69,183 ¥ 69,230 |
Accumulated Benefit Obligation for All Defined Benefit Plans | The accumulated benefit obligation for all defined benefit plans was as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Accumulated benefit obligation ¥ 740,545 ¥ 720,034 ¥ 338,160 ¥ 343,023 |
Plans with Projected Benefit Obligations in Excess of Plan Assets and Plans with Accumulated Benefit Obligations in Excess of Plan Assets | The projected benefit obligations and the fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets, and the accumulated benefit obligations and the fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations ¥ 777,458 ¥ 756,941 ¥ 346,749 ¥ 364,662 Fair value of plan assets 621,869 618,199 204,953 221,421 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations ¥ 731,537 ¥ 716,940 ¥ 331,351 ¥ 339,305 Fair value of plan assets 615,963 618,199 200,891 216,560 |
Net Periodic Benefit Cost for Employee Retirement and Severance Defined Benefit Plans | Net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans for the years ended December 31, 2015, 2014 and 2013 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2015 2014 2013 2015 2014 2013 (Millions of yen) (Millions of yen) Service cost ¥ 30,009 ¥ 26,445 ¥ 26,005 ¥ 7,760 ¥ 6,801 ¥ 9,448 Interest cost 8,008 10,772 11,655 10,572 10,654 14,299 Expected return on plan assets (19,579 ) (18,018 ) (15,273 ) (11,857 ) (10,637 ) (13,949 ) Amortization of prior service credit (12,592 ) (12,800 ) (12,306 ) (145 ) (61 ) (143 ) Amortization of actuarial loss 10,402 10,023 13,546 3,839 1,698 2,005 (Gain) loss on curtailments and settlements — — — — (9,370 ) 146 ¥ 16,248 ¥ 16,422 ¥ 23,627 ¥ 10,169 ¥ (915 ) ¥ 11,806 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2015 2014 2013 2015 2014 2013 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss ¥ 9,519 ¥ 33,800 ¥ (54,150 ) ¥ 6,302 ¥ 37,366 ¥ 2,290 Current year prior service credit — — — (2,655 ) — — Amortization of actuarial loss (10,402 ) (10,023 ) (13,546 ) (3,839 ) (1,698 ) (2,005 ) Amortization of prior service credit 12,592 12,800 12,306 145 61 143 Curtailments and settlements — — — — (16,725 ) (358 ) ¥ 11,709 ¥ 36,577 ¥ (55,390 ) ¥ (47 ) ¥ 19,004 ¥ 70 |
Summary of Estimated Defined Benefit Pension Plans Amortized from Accumulated Other Comprehensive Income (Loss) into Next Year Benefit Cost | The estimated prior service credit and actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next year are summarized as follows: Japanese plans Foreign plans (Millions of yen) (Millions of yen) Prior service credit ¥ (12,785 ) ¥ (132 ) Actuarial loss 10,830 3,213 |
Weighted-Average Assumptions Used to Determine Benefit Obligations | Weighted-average assumptions used to determine benefit obligations are as follows: Japanese plans Foreign plans December 31 December 31 2015 2014 2015 2014 Discount rate 1.1 % 1.1 % 3.0 % 2.9 % Assumed rate of increase in future compensation levels 3.0 % 3.0 % 2.0 % 2.0 % |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | Weighted-average assumptions used to determine net periodic benefit cost are as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2015 2014 2013 2015 2014 2013 Discount rate 1.1 % 1.6 % 1.8 % 2.9 % 3.9 % 3.6 % Assumed rate of increase in future compensation levels 3.0 % 3.0 % 3.0 % 2.0 % 2.3 % 2.2 % Expected long-term rate of return on plan assets 3.1 % 3.1 % 3.1 % 5.6 % 4.9 % 5.2 % |
Fair Values of Company's Pension Plans Assets | The three levels of input used to measure fair value are more fully described in Note 20. The fair values of Canon’s pension plan assets at December 31, 2015 and 2014, by asset category, are as follows: December 31, 2015 Japanese plans Foreign plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (Millions of yen) Equity securities: Japanese companies (a) ¥ 49,847 ¥ — ¥ — ¥ 49,847 ¥ — ¥ — ¥ — ¥ — Foreign companies 3,287 — — 3,287 18,661 — — 18,661 Pooled funds (b) — 125,850 — 125,850 — 66,296 — 66,296 Debt securities: Government bonds (c) 142,015 — — 142,015 48 — — 48 Municipal bonds — 1,248 — 1,248 — 2,587 — 2,587 Corporate bonds — 13,532 — 13,532 — 21,009 — 21,009 Pooled funds (d) — 120,364 — 120,364 — 34,564 — 34,564 Mortgage backed securities (and other asset backed securities) — 10,462 — 10,462 — 137 — 137 Life insurance company general accounts — 125,759 — 125,759 — 6,190 — 6,190 Other assets — 33,432 779 34,211 — 68,378 — 68,378 ¥ 195,149 ¥ 430,647 ¥ 779 ¥ 626,575 ¥ 18,709 ¥ 199,161 ¥ — ¥ 217,870 December 31, 2014 Japanese plans Foreign plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (Millions of yen) Equity securities: Japanese companies (e) ¥ 51,805 ¥ — ¥ — ¥ 51,805 ¥ — ¥ — ¥ — ¥ — Foreign companies 10,233 — — 10,233 31,963 — — 31,963 Pooled funds (f) — 124,388 — 124,388 — 74,744 — 74,744 Debt securities: Government bonds (g) 143,431 — — 143,431 7,899 — — 7,899 Municipal bonds — 573 — 573 — 3,221 — 3,221 Corporate bonds — 11,775 — 11,775 — 24,014 — 24,014 Pooled funds (h) — 118,606 — 118,606 — 23,260 — 23,260 Mortgage backed securities (and other asset backed securities) — 12,310 — 12,310 — — — — Life insurance company general accounts — 123,575 — 123,575 — 7,049 — 7,049 Other assets — 23,825 1,600 25,425 — 49,271 — 49,271 ¥ 205,469 ¥ 415,052 ¥ 1,600 ¥ 622,121 ¥ 39,862 ¥ 181,559 ¥ — ¥ 221,421 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥325 million. (b) These funds invest in listed equity securities consisting of approximately 25% Japanese companies and 75% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (c) This class includes approximately 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (d) These funds invest in approximately 25% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 75% foreign government bonds and 25% corporate bonds for foreign plans. (e) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥197 million. (f) These funds invest in listed equity securities consisting of approximately 25% Japanese companies and 75% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (g) This class includes approximately 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (h) These funds invest in approximately 25% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 85% foreign government bonds and 15% corporate bonds for foreign plans. |
Benefit Payments, Reflect Expected Future Service | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Japanese plans Foreign plans (Millions of yen) (Millions of yen) Year ending December 31: 2016 ¥ 20,023 ¥ 9,836 2017 21,351 10,165 2018 23,280 9,843 2019 23,359 11,036 2020 27,886 11,686 2021 – 2025 170,161 67,899 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Income Before Income Taxes and Current and Deferred Income Tax Expense (Benefit) | Domestic and foreign components of income before income taxes and the current and deferred income tax expense (benefit) attributable to such income are summarized as follows: Year ended December 31, 2015 Japanese Foreign Total (Millions of yen) Income before income taxes ¥ 228,871 ¥ 118,567 ¥ 347,438 Income taxes: Current ¥ 80,020 ¥ 31,413 ¥ 111,433 Deferred 3,414 1,258 4,672 ¥ 83,434 ¥ 32,671 ¥ 116,105 Year ended December 31, 2014 Japanese Foreign Total (Millions of yen) Income before income taxes ¥ 277,041 ¥ 106,198 ¥ 383,239 Income taxes: Current ¥ 83,221 ¥ 25,850 ¥ 109,071 Deferred 6,796 2,133 8,929 ¥ 90,017 ¥ 27,983 ¥ 118,000 Year ended December 31, 2013 Japanese Foreign Total (Millions of yen) Income before income taxes ¥ 251,351 ¥ 96,253 ¥ 347,604 Income taxes: Current ¥ 75,134 ¥ 16,163 ¥ 91,297 Deferred 4,005 12,786 16,791 ¥ 79,139 ¥ 28,949 ¥ 108,088 |
Reconciliation of Japanese Statutory Income Tax Rate and Effective Income Tax Rate | A reconciliation of the Japanese statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: Years ended December 31 2015 2014 2013 Japanese statutory income tax rate 35.0 % 38.0 % 38.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes 0.8 0.7 0.9 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (2.9 ) (3.7 ) (3.3 ) Tax credit for research and development expenses (4.8 ) (5.0 ) (5.4 ) Change in valuation allowance (0.4 ) (0.5 ) 0.2 Effect of enacted changes in tax laws and rates on Japanese tax 1.9 0.8 — Other 3.8 0.5 0.7 Effective income tax rate 33.4 % 30.8 % 31.1 % |
Net Deferred Income Tax Assets and Liabilities | Net deferred income tax assets and liabilities are included in the accompanying consolidated balance sheets under the following captions: December 31 2015 2014 (Millions of yen) Prepaid expenses and other current assets ¥ 55,108 ¥ 61,943 Other assets 113,687 117,636 Other current liabilities (2,682 ) (3,456 ) Other noncurrent liabilities (96,243 ) (80,459 ) ¥ 69,870 ¥ 95,664 |
Tax Effects of Temporary Differences to Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below: December 31 2015 2014 (Millions of yen) Deferred tax assets: Inventories ¥ 15,298 ¥ 16,085 Accrued business tax 3,293 3,951 Accrued pension and severance cost 77,420 79,392 Research and development – costs capitalized for tax purposes 6,906 8,616 Property, plant and equipment 24,281 29,558 Accrued expenses 39,881 43,706 Net operating losses carried forward 33,526 38,351 Other 33,808 34,673 234,413 254,332 Less valuation allowance (32,931 ) (37,498 ) Total deferred tax assets 201,482 216,834 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (10,400 ) (10,368 ) Net unrealized gains on securities (7,354 ) (6,801 ) Tax deductible reserve (4,974 ) (5,696 ) Financing lease revenue (54,280 ) (58,958 ) Prepaid pension and severance cost (1,104 ) (1,671 ) Intangible assets (21,106 ) (7,283 ) Other (32,394 ) (30,393 ) Total deferred tax liabilities (131,612 ) (121,170 ) Net deferred tax assets ¥ 69,870 ¥ 95,664 |
Periods Available to Reduce Future Taxable Income | Periods available to reduce future taxable income vary in each tax jurisdiction and generally range from one year to an indefinite period as follows: (Millions of yen) Within one year ¥ 6,138 After one year through five years 36,317 After five years through ten years 58,462 After ten years through twenty years 62,270 Indefinite period 37,807 Total ¥ 200,994 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended December 31 2015 2014 2013 (Millions of yen) Balance at beginning of year ¥ 6,431 ¥ 6,201 ¥ 7,711 Additions for tax positions of the current year 2,174 1,649 312 Additions for tax positions of prior years 165 216 388 Reductions for tax positions of prior years (1,180 ) (114 ) (3,141 ) Settlements with tax authorities (505 ) (1,808 ) (347 ) Other (1,029 ) 287 1,278 Balance at end of year ¥ 6,056 ¥ 6,431 ¥ 6,201 |
Other Comprehensive Income (L43
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Change in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013 are as follows: Foreign Unrealized Gains and Pension Total (Millions of yen) Balance at December 31, 2012 ¥ (247,734 ) ¥ 4,146 ¥ (4,462 ) ¥ (119,199 ) ¥ (367,249 ) Equity transactions with noncontrolling interests and other (323 ) (1 ) (2 ) (329 ) (655 ) Other comprehensive income (loss) before reclassifications 249,791 7,449 (7,551 ) 27,153 276,842 Amounts reclassified from accumulated other comprehensive income (loss) — (1,352 ) 9,607 2,161 10,416 Net change during the year 249,468 6,096 2,054 28,985 286,603 Balance at December 31, 2013 1,734 10,242 (2,408 ) (90,214 ) (80,646 ) Equity transactions with noncontrolling interests and other 10 3 — (35 ) (22 ) Other comprehensive income (loss) before reclassifications 142,813 3,933 (2,204 ) (47,840 ) 96,702 Amounts reclassified from accumulated other comprehensive income (loss) — (1,632 ) 2,009 11,875 12,252 Net change during the year 142,823 2,304 (195 ) (36,000 ) 108,932 Balance at December 31, 2014 ¥ 144,557 ¥ 12,546 ¥ (2,603 ) ¥ (126,214 ) ¥ 28,286 Equity transactions with noncontrolling interests and other 73 — — — 73 Other comprehensive income (loss) before reclassifications (57,592 ) 1,691 (256 ) (6,155 ) (62,312 ) Amounts reclassified from accumulated other comprehensive income (loss) — (182 ) 3,041 1,352 4,211 Net change during the year (57,519 ) 1,509 2,785 (4,803 ) (58,028 ) Balance at December 31, 2015 ¥ 87,038 ¥ 14,055 ¥ 182 ¥ (131,017 ) ¥ (29,742 ) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013 are as follows: Amount reclassified from accumulated other comprehensive income (loss) *1 Year ended Year ended Year ended Affected line items in consolidated statements of income (Millions of yen) Unrealized gains and losses on securities ¥ (298 ) ¥ (2,509 ) ¥ (2,358 ) Other, net 104 879 613 Income taxes (194 ) (1,630 ) (1,745 ) Consolidated net income 12 (2 ) 393 Net income attributable to noncontrolling interests (182 ) (1,632 ) (1,352 ) Net income attributable to Canon Inc. Gains and losses on derivative instruments 4,217 3,260 15,387 Other, net (1,180 ) (1,248 ) (5,780 ) Income taxes 3,037 2,012 9,607 Consolidated net income 4 (3 ) — Net income attributable to noncontrolling interests 3,041 2,009 9,607 Net income attributable to Canon Inc. Pension liability adjustments 1,504 15,585 3,460 See Note 11 (175 ) (3,710 ) (1,037 ) Income taxes 1,329 11,875 2,423 Consolidated net income 23 — (262 ) Net income attributable to noncontrolling interests 1,352 11,875 2,161 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling interests ¥ 4,211 ¥ 12,252 ¥ 10,416 *1 Amounts in parentheses indicate gains in consolidated statements of income. |
Tax Effects Allocated to Other Comprehensive Income (Loss) and Reclassification Adjustments, Including Amounts Attributable to Noncontrolling Interests | Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments, including amounts attributable to noncontrolling interests, are as follows: Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2015: Foreign currency translation adjustments ¥ (56,054 ) ¥ 550 ¥ (55,504 ) Net unrealized gains and losses on securities: Amount arising during the year 3,249 (1,045 ) 2,204 Reclassification adjustments for gains and losses realized in net income (298 ) 104 (194 ) Net change during the year 2,951 (941 ) 2,010 Net gains and losses on derivative instruments: Amount arising during the year 52 (304 ) (252 ) Reclassification adjustments for gains and losses realized in net income 4,217 (1,180 ) 3,037 Net change during the year 4,269 (1,484 ) 2,785 Pension liability adjustments: Amount arising during the year (13,166 ) 5,294 (7,872 ) Reclassification adjustments for gains and losses realized in net income 1,504 (175 ) 1,329 Net change during the year (11,662 ) 5,119 (6,543 ) Other comprehensive income (loss) ¥ (60,496 ) ¥ 3,244 ¥ (57,252 ) 2014: Foreign currency translation adjustments ¥ 144,826 ¥ (992 ) ¥ 143,834 Net unrealized gains and losses on securities: Amount arising during the year 6,379 (2,225 ) 4,154 Reclassification adjustments for gains and losses realized in net income (2,509 ) 879 (1,630 ) Net change during the year 3,870 (1,346 ) 2,524 Net gains and losses on derivative instruments: Amount arising during the year (3,309 ) 1,102 (2,207 ) Reclassification adjustments for gains and losses realized in net income 3,260 (1,248 ) 2,012 Net change during the year (49 ) (146 ) (195 ) Pension liability adjustments: Amount arising during the year (71,166 ) 21,306 (49,860 ) Reclassification adjustments for gains and losses realized in net income 15,585 (3,710 ) 11,875 Net change during the year (55,581 ) 17,596 (37,985 ) Other comprehensive income (loss) ¥ 93,066 ¥ 15,112 ¥ 108,178 Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2013: Foreign currency translation adjustments ¥ 253,707 ¥ (2,131 ) ¥ 251,576 Net unrealized gains and losses on securities: Amount arising during the year 12,669 (4,312 ) 8,357 Reclassification adjustments for gains and losses realized in net income (2,358 ) 613 (1,745 ) Net change during the year 10,311 (3,699 ) 6,612 Net gains and losses on derivative instruments: Amount arising during the year (12,145 ) 4,594 (7,551 ) Reclassification adjustments for gains and losses realized in net income 15,387 (5,780 ) 9,607 Net change during the year 3,242 (1,186 ) 2,056 Pension liability adjustments: Amount arising during the year 51,860 (21,614 ) 30,246 Reclassification adjustments for gains and losses realized in net income 3,460 (1,037 ) 2,423 Net change during the year 55,320 (22,651 ) 32,669 Other comprehensive income (loss) ¥ 322,580 ¥ (29,667 ) ¥ 292,913 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation | A summary of option activity under the stock option plans as of and for the years ended December 31, 2015, 2014 and 2013 is presented below: Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2013 2,726,400 ¥ 4,247 1.6 ¥ 37 Exercised (8,600 ) 3,287 Forfeited (60,400 ) 4,461 Outstanding at December 31, 2013 2,657,400 4,245 1.0 28 Exercised (67,200 ) 3,287 Forfeited/Expired (728,400 ) 4,869 Outstanding at December 31, 2014 1,861,800 4,036 0.7 248 Exercised (249,600 ) 3,311 Forfeited/Expired (316,200 ) 3,678 Outstanding at December 31, 2015 1,296,000 ¥ 4,263 0.4 ¥ — Exercisable at December 31, 2015 1,296,000 ¥ 4,263 0.4 ¥ — |
Net Income Attributable to Ca45
Net Income Attributable to Canon Inc. Shareholders per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reconciliation of Basic and Diluted Net Income Attributable to Canon Inc. Shareholders Per Share | A reconciliation of the numerators and denominators of basic and diluted net income attributable to Canon Inc. shareholders per share computations is as follows: Years ended December 31 2015 2014 2013 (Millions of yen) Net income attributable to Canon Inc. ¥ 220,209 ¥ 254,797 ¥ 230,483 (Number of shares) Average common shares outstanding 1,092,017,955 1,112,509,931 1,147,933,835 Effect of dilutive securities: Stock options 34,931 4,393 8,466 Diluted common shares outstanding 1,092,052,886 1,112,514,324 1,147,942,301 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic ¥ 201.65 ¥ 229.03 ¥ 200.78 Diluted 201.65 229.03 200.78 |
Derivatives and Hedging Activ46
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contract Amounts of Foreign Exchange Contracts | Contract amounts of foreign exchange contracts at December 31, 2015 and 2014 are set forth below: December 31 2015 2014 (Millions of yen) To sell foreign currencies ¥ 228,053 ¥ 358,862 To buy foreign currencies 37,540 21,365 |
Cash Flow Hedging | |
Effect of Derivative Instruments on Consolidated Statement of Income | The following tables present the effect of Canon’s derivative instruments in the consolidated statements of income for the years ended December 31, 2015, 2014 and 2013. Derivatives in cash flow hedging relationships Years ended December 31 Gain (loss) Gain (loss) reclassified from Gain (loss) recognized in income Amount Location Amount Location Amount (Millions of yen) 2015: Foreign exchange contracts ¥ 52 Other, net ¥ (4,217 ) Other, net ¥ (131 ) 2014: Foreign exchange contracts (3,309 ) Other, net (3,260 ) Other, net (145 ) 2013: Foreign exchange contracts (12,145 ) Other, net (15,387 ) Other, net (111 ) |
Designated as Hedging Instrument | |
Fair Value of Derivative Instruments in Consolidated Balance Sheet | The following tables present Canon’s derivative instruments measured at gross fair value as reflected in the consolidated balance sheets at December 31, 2015 and 2014. Derivatives designated as hedging instruments Fair value December 31 Balance sheet location 2015 2014 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets ¥ 373 ¥ 8 Liabilities: Foreign exchange contracts Other current liabilities 534 1,597 |
Not Designated as Hedging Instrument | |
Fair Value of Derivative Instruments in Consolidated Balance Sheet | Derivatives not designated as hedging instruments Fair value December 31 Balance sheet location 2015 2014 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets ¥ 1,112 ¥ 257 Liabilities: Foreign exchange contracts Other current liabilities 90 9,570 |
Effect of Derivative Instruments on Consolidated Statement of Income | Derivatives not designated as hedging instruments Gain (loss) recognized in income on derivative Years ended December 31 Location 2015 2014 2013 (Millions of yen) Foreign exchange contracts Other, net ¥ 1,099 ¥ (21,728 ) ¥ (61,787 ) |
Commitments and Contingent Li47
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Future Minimum Lease Payments Required under Noncancelable Operating Leases | Future minimum lease payments required under noncancelable operating leases that have initial or remaining lease terms in excess of one year at December 31, 2015 are as follows: (Millions of yen) Year ending December 31: 2016 ¥ 26,294 2017 20,328 2018 13,855 2019 8,847 2020 6,115 Thereafter 12,153 Total future minimum lease payments ¥ 87,592 |
Changes in Accrued Product Warranty Costs | Changes in accrued product warranty costs for the years ended December 31, 2015 and 2014 are summarized as follows: Years ended December 31 2015 2014 (Millions of yen) Balance at beginning of year ¥ 11,564 ¥ 10,890 Additions 18,942 15,699 Utilization (12,404 ) (12,039 ) Other (4,088 ) (2,986 ) Balance at end of year ¥ 14,014 ¥ 11,564 |
Disclosures about the Fair Va48
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Estimated Fair Values of Canon's Financial Instruments | The estimated fair values of Canon’s financial instruments at December 31, 2015 and 2014 are set forth below. The following summary excludes cash and cash equivalents, trade receivables, finance receivables, noncurrent receivables, short-term loans, trade payables and accrued expenses for which fair values approximate their carrying amounts. The summary also excludes investments and derivative instruments which are disclosed in Note 2 and Note 17, respectively. December 31 2015 2014 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments ¥ (1,543 ) ¥ (1,507 ) ¥ (2,163 ) ¥ (2,146 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present Canon’s assets and liabilities that are measured at fair value on a recurring basis consistent with the fair value hierarchy at December 31, 2015 and 2014. December 31, 2015 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents ¥ — ¥ 80,870 ¥ — ¥ 80,870 Available-for-sale (noncurrent): Government bonds 287 — — 287 Corporate bonds — 201 — 201 Fund trusts 12 52 — 64 Equity securities 42,849 — — 42,849 Derivatives — 1,485 — 1,485 Total assets ¥ 43,148 ¥ 82,608 ¥ — ¥ 125,756 Liabilities: Derivatives ¥ — ¥ 624 ¥ — ¥ 624 Total liabilities ¥ — ¥ 624 ¥ — ¥ 624 December 31, 2014 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents ¥ — ¥ 139,240 ¥ — ¥ 139,240 Available-for-sale (noncurrent): Government bonds 325 — — 325 Corporate bonds — 162 474 636 Fund trusts 12 72 — 84 Equity securities 40,653 — — 40,653 Derivatives — 265 — 265 Total assets ¥ 40,990 ¥ 139,739 ¥ 474 ¥ 181,203 Liabilities: Derivatives ¥ — ¥ 11,167 ¥ — ¥ 11,167 Total liabilities ¥ — ¥ 11,167 ¥ — ¥ 11,167 |
Changes in Level 3 Assets Measured on Recurring Basis | The following table presents the changes in Level 3 assets measured on a recurring basis, consisting primarily of corporate bonds, for the years ended December 31, 2015 and 2014. Years ended December 31 2015 2014 (Millions of yen) Balance at beginning of year ¥ 474 ¥ 340 Total gains or losses (realized or unrealized): Included in earnings — — Included in other comprehensive income (loss) 22 (18 ) Purchases, issuances, and settlements (496 ) 152 Balance at end of year ¥ — ¥ 474 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Product Sales to External Customers by Business Unit | Information about product sales to external customers by business unit for the years ended December 31, 2015, 2014 and 2013 is as follows: Years ended December 31 2015 2014 2013 (Millions of yen) Office Monochrome copiers ¥ 328,061 ¥ 322,398 ¥ 312,973 Color copiers 421,209 401,447 381,848 Printers 857,369 862,000 841,436 Others 501,607 489,943 457,641 Total 2,108,246 2,075,788 1,993,898 Imaging System Cameras 782,623 861,196 973,517 Inkjet printers 362,663 366,946 363,070 Others 117,381 114,359 111,599 Total 1,262,667 1,342,501 1,448,186 Industry and Others Lithography equipment 123,887 90,395 62,116 Others 305,471 218,568 227,180 Total 429,358 308,963 289,296 Consolidated ¥ 3,800,271 ¥ 3,727,252 ¥ 3,731,380 |
Information by Major Geographic Area | Information by major geographic area as of and for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 (Millions of yen) Net sales: Japan ¥ 714,280 ¥ 724,317 ¥ 715,863 Americas 1,144,422 1,036,500 1,059,501 Europe 1,074,366 1,090,484 1,124,929 Asia and Oceania 867,203 875,951 831,087 Total ¥ 3,800,271 ¥ 3,727,252 ¥ 3,731,380 Long-lived assets: Japan ¥ 937,716 ¥ 950,719 ¥ 984,231 Americas 150,105 157,748 131,660 Europe 183,451 127,700 111,609 Asia and Oceania 189,588 210,650 196,305 Total ¥ 1,460,860 ¥ 1,446,817 ¥ 1,423,805 |
Business Segment | |
Geographic Supplemental Information | Information about operating results and assets for each segment as of and for the years ended December 31, 2015, 2014 and 2013 is as follows: Office Imaging Industry and Corporate and Consolidated (Millions of yen) 2015: Net sales: External customers ¥ 2,108,246 ¥ 1,262,667 ¥ 429,358 ¥ — ¥ 3,800,271 Intersegment 2,570 1,168 95,293 (99,031 ) — Total 2,110,816 1,263,835 524,651 (99,031 ) 3,800,271 Operating cost and expenses 1,820,230 1,080,396 537,730 6,705 3,445,061 Operating profit ¥ 290,586 ¥ 183,439 ¥ (13,079 ) ¥ (105,736 ) ¥ 355,210 Total assets ¥ 1,020,758 ¥ 452,283 ¥ 332,252 ¥ 2,622,480 ¥ 4,427,773 Depreciation and amortization 86,206 52,070 45,064 89,987 273,327 Capital expenditures 73,819 38,337 24,241 106,733 243,130 2014: Net sales: External customers ¥ 2,075,788 ¥ 1,342,501 ¥ 308,963 ¥ — ¥ 3,727,252 Intersegment 2,944 693 89,802 (93,439 ) — Total 2,078,732 1,343,194 398,765 (93,439 ) 3,727,252 Operating cost and expenses 1,786,675 1,148,593 420,566 7,929 3,363,763 Operating profit ¥ 292,057 ¥ 194,601 ¥ (21,801 ) ¥ (101,368 ) ¥ 363,489 Total assets ¥ 1,025,499 ¥ 517,524 ¥ 342,695 ¥ 2,574,900 ¥ 4,460,618 Depreciation and amortization 87,058 53,912 37,544 84,966 263,480 Capital expenditures 69,704 31,124 15,976 107,956 224,760 2013: Net sales: External customers ¥ 1,993,898 ¥ 1,448,186 ¥ 289,296 ¥ — ¥ 3,731,380 Intersegment 6,175 752 85,574 (92,501 ) — Total 2,000,073 1,448,938 374,870 (92,501 ) 3,731,380 Operating cost and expenses 1,733,165 1,245,144 400,201 15,593 3,394,103 Operating profit ¥ 266,908 ¥ 203,794 ¥ (25,331 ) ¥ (108,094 ) ¥ 337,277 Total assets ¥ 954,803 ¥ 584,856 ¥ 328,202 ¥ 2,374,849 ¥ 4,242,710 Depreciation and amortization 88,344 56,564 37,072 93,193 275,173 Capital expenditures 54,644 44,112 27,040 101,682 227,478 |
Geographical Segment | |
Geographic Supplemental Information | The following information is based on the location of the Company and its subsidiaries as of and for the years ended December 31, 2015, 2014 and 2013. In addition to the disclosure requirements under U.S. GAAP, Canon discloses this information in order to provide financial statements users with useful information. Japan Americas Europe Asia and Corporate and Consolidated (Millions of yen) 2015: Net sales: External customers ¥ 847,669 ¥ 1,138,830 ¥ 1,077,033 ¥ 736,739 ¥ — ¥ 3,800,271 Intersegment 1,765,840 21,069 106,675 911,395 (2,804,979 ) — Total 2,613,509 1,159,899 1,183,708 1,648,134 (2,804,979 ) 3,800,271 Operating cost and expenses 2,285,780 1,130,099 1,165,218 1,582,113 (2,718,149 ) 3,445,061 Operating profit ¥ 327,729 ¥ 29,800 ¥ 18,490 ¥ 66,021 ¥ (86,830 ) ¥ 355,210 Total assets ¥ 969,805 ¥ 544,395 ¥ 409,357 ¥ 620,090 ¥ 1,884,126 ¥ 4,427,773 2014: Net sales: External customers ¥ 836,801 ¥ 1,033,797 ¥ 1,088,293 ¥ 768,361 ¥ — ¥ 3,727,252 Intersegment 1,752,378 8,738 59,493 821,600 (2,642,209 ) — Total 2,589,179 1,042,535 1,147,786 1,589,961 (2,642,209 ) 3,727,252 Operating cost and expenses 2,245,930 1,018,661 1,135,515 1,522,244 (2,558,587 ) 3,363,763 Operating profit ¥ 343,249 ¥ 23,874 ¥ 12,271 ¥ 67,717 ¥ (83,622 ) ¥ 363,489 Total assets ¥ 1,134,484 ¥ 531,122 ¥ 484,858 ¥ 674,672 ¥ 1,635,482 ¥ 4,460,618 2013: Net sales: External customers ¥ 797,501 ¥ 1,056,096 ¥ 1,124,603 ¥ 753,180 ¥ — ¥ 3,731,380 Intersegment 1,855,181 11,774 53,281 881,765 (2,802,001 ) — Total 2,652,682 1,067,870 1,177,884 1,634,945 (2,802,001 ) 3,731,380 Operating cost and expenses 2,326,351 1,043,487 1,171,357 1,574,125 (2,721,217 ) 3,394,103 Operating profit ¥ 326,331 ¥ 24,383 ¥ 6,527 ¥ 60,820 ¥ (80,784 ) ¥ 337,277 Total assets ¥ 1,152,398 ¥ 447,039 ¥ 496,549 ¥ 631,827 ¥ 1,514,897 ¥ 4,242,710 |
Basis of Presentation and Sig51
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) ¥ in Millions | Apr. 15, 2015 | Dec. 31, 2015JPY (¥)Entity | Dec. 31, 2014JPY (¥) | Dec. 31, 2013JPY (¥) |
Significant Accounting Policies [Line Items] | ||||
Foreign currency exchange gains (losses) | ¥ (22,149) | ¥ 2,628 | ¥ (1,992) | |
Advertising expenses | 80,907 | 79,765 | 86,398 | |
Shipping and handling cost | 52,504 | 49,576 | ¥ 47,460 | |
Deferred tax assets | 55,108 | 61,943 | ||
Deferred tax liabilities | ¥ 2,682 | 3,456 | ||
Computer software, intangible asset | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 5 years | |||
Trademarks | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 15 years | 15 years | ||
Patents and developed technology | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 7 years | |||
License Fees | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 7 years | |||
Maximum | Computer software, intangible asset | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 5 years | |||
Maximum | Patents and developed technology | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 16 years | |||
Maximum | Customer Relationships | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 15 years | |||
Maximum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 60 years | |||
Maximum | Machinery and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 20 years | |||
Maximum | Assets Leased to Others | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 5 years | |||
Minimum | Computer software, intangible asset | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 3 years | |||
Minimum | Patents and developed technology | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 7 years | |||
Minimum | Customer Relationships | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 8 years | |||
Minimum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 3 years | |||
Minimum | Machinery and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 1 year | |||
Minimum | Assets Leased to Others | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 2 years | |||
Available-for-sale Securities | ||||
Significant Accounting Policies [Line Items] | ||||
Cash equivalents | ¥ 80,870 | ¥ 139,240 | ||
Consolidated Net Sales | Segment Concentration Risk | Intersegment Eliminations | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 2.60% | 2.50% | 2.40% | |
Consolidated Net Sales | Office Business Unit | Segment Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 55.50% | 55.80% | 53.60% | |
Consolidated Net Sales | Imaging System Business Unit | Segment Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 33.30% | 36.00% | 38.80% | |
Consolidated Net Sales | Industry and Others Business Unit | Segment Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 13.80% | 10.70% | 10.00% | |
Consolidated Net Sales | HP Inc. | Customer Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 17.80% | 17.40% | 17.60% | |
Foreign | ||||
Significant Accounting Policies [Line Items] | ||||
Number of manufacturing plants | Entity | 18 | |||
Foreign | Consolidated Net Sales | Geographic Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 81.20% | 80.60% | 80.80% | |
Americas | Consolidated Net Sales | Geographic Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 30.10% | 27.80% | 28.40% | |
Europe | Consolidated Net Sales | Geographic Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 28.30% | 29.30% | 30.10% | |
Asia and Oceania | Consolidated Net Sales | Geographic Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 22.80% | 23.50% | 22.30% | |
Japan | ||||
Significant Accounting Policies [Line Items] | ||||
Number of manufacturing plants | Entity | 28 |
Available-For-Sale Securities I
Available-For-Sale Securities Included in Investments By Major Security Type (Detail) - Available for sale Securities Non Current - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | ¥ 20,828 | ¥ 21,832 |
Gross unrealized holding gains | 23,678 | 19,918 |
Gross unrealized holding losses | 1,105 | 52 |
Fair value | 43,401 | 41,698 |
Government Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 298 | 331 |
Gross unrealized holding losses | 11 | 6 |
Fair value | 287 | 325 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 6 | 512 |
Gross unrealized holding gains | 195 | 153 |
Gross unrealized holding losses | 29 | |
Fair value | 201 | 636 |
Fund Trusts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 63 | 84 |
Gross unrealized holding gains | 1 | |
Fair value | 64 | 84 |
Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 20,461 | 20,905 |
Gross unrealized holding gains | 23,482 | 19,765 |
Gross unrealized holding losses | 1,094 | 17 |
Fair value | ¥ 42,849 | ¥ 40,653 |
Maturities of Available-For-Sal
Maturities of Available-For-Sale Debt Securities Included in Investments (Detail) ¥ in Millions | Dec. 31, 2015JPY (¥) |
Cost | |
Due after five years | ¥ 304 |
Available-for-sale Debt Securities, Amortized Cost Basis | 304 |
Fair value | |
Due after five years | 488 |
Available-for-sale Securities, Debt Securities | ¥ 488 |
Investments - Additional Inform
Investments - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Investments [Line Items] | |||
Gross realized gains | ¥ 329 | ¥ 2,540 | ¥ 2,360 |
Gross realized losses | 31 | 31 | 2 |
Short-term investments | 20,651 | 71,863 | |
Aggregate cost of non-marketable equity securities accounted for under the cost method | 2,570 | 1,164 | |
Investments in affiliated companies accounted for by the equity method | 20,415 | 20,863 | |
Canon's share of net earnings (losses) in affiliated companies accounted for by the equity method, included in other income (deductions) | 447 | 478 | ¥ (664) |
Bank Time Deposits | |||
Schedule of Investments [Line Items] | |||
Short-term investments | ¥ 20,651 | ¥ 71,863 |
Trade Receivables (Detail)
Trade Receivables (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | ¥ 17,614 | ¥ 18,476 |
Accounts | 582,464 | 619,321 |
Trade Accounts And Notes Receivable Gross Current, Total | 600,078 | 637,797 |
Less allowance for doubtful receivables | (12,077) | (12,122) |
Trade receivables, net (Note 3) | ¥ 588,001 | ¥ 625,675 |
Inventories (Detail)
Inventories (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Finished goods | ¥ 357,115 | ¥ 363,685 |
Work in process | 130,258 | 144,394 |
Raw materials | 14,522 | 20,088 |
Inventories (Note 4) | ¥ 501,895 | ¥ 528,167 |
Property, Plant and Equipment57
Property, Plant and Equipment (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Land | ¥ 282,786 | ¥ 286,336 |
Buildings | 1,632,604 | 1,609,667 |
Machinery and equipment | 1,813,116 | 1,822,026 |
Construction in progress | 61,952 | 70,759 |
Property, Plant and Equipment, Gross, Total | 3,790,458 | 3,788,788 |
Less accumulated depreciation | (2,570,806) | (2,519,259) |
Property, plant and equipment, net (Notes 5 and 6) | ¥ 1,219,652 | ¥ 1,269,529 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant, and Equipment Disclosure [Line Items] | |||
Depreciation expenses | ¥ 223,759 | ¥ 213,739 | ¥ 223,158 |
Amount due for purchase of property, plant and equipment | ¥ 30,789 | ¥ 40,483 |
Finance Receivables and Opera59
Finance Receivables and Operating Leases - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum | ||
Leases Disclosure [Line Items] | ||
Term of financing receivables | 1 year | |
Maximum | ||
Leases Disclosure [Line Items] | ||
Term of financing receivables | 6 years | |
Equipment Leased to Customer | ||
Leases Disclosure [Line Items] | ||
Property, plant and equipment lease | ¥ 108,746 | ¥ 113,997 |
Accumulated depreciation on property, plant and equipment lease | ¥ 82,916 | ¥ 87,338 |
Components of Finance Receivabl
Components of Finance Receivables (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Leases Disclosure [Line Items] | |||
Total minimum lease payments receivable | ¥ 318,066 | ¥ 308,733 | |
Unguaranteed residual values | 14,271 | 13,924 | |
Executory costs | (888) | (1,680) | |
Unearned income | (31,920) | (31,919) | |
Financing Receivable, Gross , Total | 299,529 | 289,058 | |
Less allowance for credit losses | (2,878) | (6,276) | ¥ (7,323) |
Capital Leases, Net Investment in Direct Financing and Sales Type Leases, Total | 296,651 | 282,782 | |
Less current portion | (109,220) | (102,920) | |
Capital Leases, Lessor Balance Sheet, Net Investment in Direct Financing and Sales Type Leases, Noncurrent, Total | 187,431 | 179,862 | |
Capital Leases, Net Investment in Direct Financing and Sales Type Leases | ¥ 296,651 | ¥ 282,782 |
Activity in Allowance for Credi
Activity in Allowance for Credit Losses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of year | ¥ 6,276 | ¥ 7,323 |
Charge-offs | (1,343) | (1,171) |
Provision | 55 | 154 |
Translation adjustments and other | (2,110) | (30) |
Balance at end of year | ¥ 2,878 | ¥ 6,276 |
Future Minimum Lease Payments t
Future Minimum Lease Payments to be Received Under Financing Leases and Noncancelable Operating Leases (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing leases | ||
2,016 | ¥ 127,714 | |
2,017 | 90,137 | |
2,018 | 57,828 | |
2,019 | 30,501 | |
2,020 | 11,165 | |
Thereafter | 721 | |
Total minimum lease payments receivable | 318,066 | ¥ 308,733 |
Operating leases | ||
2,016 | 8,709 | |
2,017 | 5,307 | |
2,018 | 3,308 | |
2,019 | 1,786 | |
2,020 | 490 | |
Thereafter | 206 | |
Operating Leases, Future Minimum Payments Receivable, Total | ¥ 19,806 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - JPY (¥) ¥ in Millions | Apr. 15, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Weighted average amortization period for acquired intangible assets | 13 years | ||
Goodwill acquired during the year | ¥ 270,567 | ¥ 44,131 | |
Axis AB (Axis) | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 76.10% | ||
Payments to acquire businesses, gross | ¥ 244,725 | ||
Percentage of ownership acquired from noncontrolling shareholders | 9.00% | ||
Percentage of the total outstanding shares of Axis represented by the interest | 85.10% | ||
Fair value of noncontrolling interest | ¥ 77,086 | ||
Noncontrolling interest related to acquired shares of Axis | 23.90% | ||
Amounts of net sales of Axis included in the parent company's consolidated statement of income | ¥ 72,602 | ||
Other net assets acquired | ¥ 2,053 | ||
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | 70,671 | ||
Intangible assets acquired, subject to amortization | ¥ 30,696 | ||
Weighted average amortization period for acquired intangible assets | 9 years | ||
Deferred tax liabilities | ¥ 8,789 | ||
Other net assets acquired | 4,633 | ||
Goodwill acquired during the year | 44,131 | ||
Customer Relationships | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 1,628 | ||
Weighted average amortization period for acquired intangible assets | 6 years | ||
Computer software, intangible asset | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 289 | ||
Amortization period for acquired intangible assets | 5 years | ||
Weighted average amortization period for acquired intangible assets | 5 years | 4 years | |
Computer software, intangible asset | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 13,290 | ||
Weighted average amortization period for acquired intangible assets | 7 years | ||
In Process Research and Development | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, not subject to amortization | ¥ 11,937 | ||
Other | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 3,841 | ||
Trademarks | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 42,880 | ||
Amortization period for acquired intangible assets | 15 years | 15 years | |
Weighted average amortization period for acquired intangible assets | 15 years | ||
Patents and developed technology | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 17,823 | ||
Amortization period for acquired intangible assets | 7 years | ||
Weighted average amortization period for acquired intangible assets | 7 years |
Summary of Fair Values of Asset
Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Apr. 15, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | ¥ 478,943 | ¥ 211,336 | ¥ 161,640 | |
Axis AB (Axis) | ||||
Business Acquisition [Line Items] | ||||
Current assets | ¥ 31,365 | |||
Intangible assets | 60,992 | |||
Goodwill | 259,863 | |||
Other noncurrent assets | 2,053 | |||
Non-current assets | 322,908 | |||
Total assets acquired | 354,273 | |||
Total liabilities assumed | 32,462 | |||
Net assets acquired | ¥ 321,811 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions | Apr. 15, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible assets developed or acquired | ¥ 113,216 | ¥ 62,189 | ||
Weighted average amortization period for acquired intangible assets | 13 years | |||
Aggregate amortization expense | 49,568 | 49,741 | ¥ 52,015 | |
Estimated amortization expense for intangible assets, 2016 | 48,094 | |||
Estimated amortization expense for intangible assets, 2017 | 38,852 | |||
Estimated amortization expense for intangible assets, 2018 | 29,155 | |||
Estimated amortization expense for intangible assets, 2019 | 20,589 | |||
Estimated amortization expense for intangible assets, 2020 | 15,736 | |||
Intangible assets not subject to amortization other than goodwill | 17,943 | 18,067 | ||
Trademarks | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible assets developed or acquired | ¥ 42,949 | |||
Weighted average amortization period for acquired intangible assets | 15 years | |||
Computer software, intangible asset | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible assets developed or acquired | ¥ 39,817 | ¥ 54,686 | ||
Weighted average amortization period for acquired intangible assets | 5 years | 4 years | ||
Patents and developed technology | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible assets developed or acquired | ¥ 18,083 | |||
Weighted average amortization period for acquired intangible assets | 7 years | |||
Intangible Assets | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Weighted average amortization period for acquired intangible assets | 9 years | 5 years |
Components of Intangible Assets
Components of Intangible Assets Subject to Amortization (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | ¥ 447,792 | ¥ 427,012 |
Accumulated amortization | 224,527 | 267,791 |
Computer software, intangible asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 308,348 | 312,069 |
Accumulated amortization | 181,972 | 185,885 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 17,159 | 53,494 |
Accumulated amortization | 10,173 | 46,713 |
Patents and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 39,685 | 22,371 |
Accumulated amortization | 16,123 | 13,845 |
License Fees | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 15,669 | 11,765 |
Accumulated amortization | 5,617 | 7,860 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 17,070 | 16,455 |
Accumulated amortization | 7,690 | 7,351 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 49,861 | 10,858 |
Accumulated amortization | ¥ 2,952 | ¥ 6,137 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Balance at beginning of year | ¥ 211,336 | ¥ 161,640 |
Goodwill acquired during the year | 270,567 | 44,131 |
Translation adjustments and other | (2,960) | 5,565 |
Balance at end of year | 478,943 | 211,336 |
Office Business Unit | ||
Goodwill [Line Items] | ||
Balance at beginning of year | 145,335 | 139,412 |
Goodwill acquired during the year | 10,373 | 3,971 |
Translation adjustments and other | (13,157) | 1,952 |
Balance at end of year | 142,551 | 145,335 |
Imaging System Business Unit | ||
Goodwill [Line Items] | ||
Balance at beginning of year | 21,780 | 13,877 |
Goodwill acquired during the year | 31,367 | 7,424 |
Translation adjustments and other | 327 | 479 |
Balance at end of year | 53,474 | 21,780 |
Industry and Others Business Unit | ||
Goodwill [Line Items] | ||
Balance at beginning of year | 44,221 | 8,351 |
Goodwill acquired during the year | 228,827 | 32,736 |
Translation adjustments and other | 9,870 | 3,134 |
Balance at end of year | ¥ 282,918 | ¥ 44,221 |
Short-Term Loans and Long-Ter68
Short-Term Loans and Long-Term Debt - Additional Information (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Line Items] | ||
Short-term loans consisting of bank borrowings | ¥ 26 | ¥ 3 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Loans, principally from banks, maturing in installments through 2020; bearing weighted average interest of 1.81% and 2.79% at December 31, 2015 and 2014, respectively. | ¥ 73 | ¥ 145 |
Capital lease obligations | 1,470 | 2,018 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | 1,543 | 2,163 |
Less current portion | (662) | (1,015) |
Long-term debt, excluding current installments (Note 9) | 881 | 1,148 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | ¥ 1,543 | ¥ 2,163 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Loans, principally from banks, weighted average interest rate | 1.81% | 2.79% |
Loans, principally from banks, maturity year | 2,020 |
Aggregate Annual Maturities of
Aggregate Annual Maturities of Long-Term Debt Outstanding (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
2,016 | ¥ 662 | |
2,017 | 452 | |
2,018 | 281 | |
2,019 | 121 | |
2,020 | 27 | |
Thereafter | 0 | |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | ¥ 1,543 | ¥ 2,163 |
Trade Payables (Detail)
Trade Payables (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable [Line Items] | ||
Notes | ¥ 16,706 | ¥ 14,112 |
Accounts | 261,549 | 296,102 |
Trade payables (Note 10) | ¥ 278,255 | ¥ 310,214 |
Employee Retirement and Sever73
Employee Retirement and Severance Benefits - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefits Disclosure [Line Items] | |||
Multiemployer pension plan contribution | ¥ 3,864 | ¥ 2,815 | |
Multiemployer pension plans,collective bargaining agreements, percentage of participants | 102.00% | ||
Defined contribution pension plans | 17,277 | ¥ 15,077 | ¥ 14,383 |
Fair Value, Inputs, Level 3 | |||
Employee Benefits Disclosure [Line Items] | |||
Fair Value of plan assets | 779 | 1,600 | |
Foreign Plans | |||
Employee Benefits Disclosure [Line Items] | |||
(Gain) loss on curtailments and settlements | (9,370) | 146 | |
Fair Value of plan assets | 217,870 | 221,421 | 360,527 |
Expected contribution in defined benefit pension plan for the year ending December 31, 2016 | ¥ 8,706 | ||
Foreign Plans | Equity Securities | |||
Employee Benefits Disclosure [Line Items] | |||
Invested in other plan assets | 35.00% | ||
Foreign Plans | Debt Securities | |||
Employee Benefits Disclosure [Line Items] | |||
Invested in other plan assets | 35.00% | ||
Foreign Plans | Life Insurance Company General Accounts | |||
Employee Benefits Disclosure [Line Items] | |||
Fair Value of plan assets | ¥ 6,190 | 7,049 | |
Foreign Plans | Real estate assets | |||
Employee Benefits Disclosure [Line Items] | |||
Invested in other plan assets | 30.00% | ||
Japanese Plans | |||
Employee Benefits Disclosure [Line Items] | |||
Fair Value of plan assets | ¥ 626,575 | 622,121 | ¥ 581,996 |
Expected contribution in defined benefit pension plan for the year ending December 31, 2016 | ¥ 12,015 | ||
Japanese Plans | Equity Securities | |||
Employee Benefits Disclosure [Line Items] | |||
Invested in other plan assets | 20.00% | ||
Japanese Plans | Debt Securities | |||
Employee Benefits Disclosure [Line Items] | |||
Invested in other plan assets | 55.00% | ||
Japanese Plans | Life Insurance Company General Accounts | |||
Employee Benefits Disclosure [Line Items] | |||
Invested in other plan assets | 25.00% | ||
Fair Value of plan assets | ¥ 125,759 | 123,575 | |
Japanese Plans | Fair Value, Inputs, Level 3 | |||
Employee Benefits Disclosure [Line Items] | |||
Fair Value of plan assets | ¥ 779 | ¥ 1,600 |
Reconciliations of Beginning an
Reconciliations of Beginning and Ending Balances of Benefit Obligations and Fair Value of Plan Assets (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Japanese Plans | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | ¥ 760,331 | ¥ 684,842 | |
Service cost | 30,009 | 26,445 | ¥ 26,005 |
Interest cost | 8,008 | 10,772 | 11,655 |
Actuarial (gain) loss | 7,481 | 59,496 | |
Benefits paid | (24,479) | (21,224) | |
Projected benefit obligations at end of year | 781,350 | 760,331 | 684,842 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 622,121 | 581,996 | |
Actual return on plan assets | 17,541 | 43,714 | |
Employer contributions | 8,701 | 15,676 | |
Benefits paid | (21,788) | (19,265) | |
Fair value of plan assets at end of year | 626,575 | 622,121 | 581,996 |
Funded status at end of year | (154,775) | (138,210) | |
Foreign Plans | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | 364,662 | 486,572 | |
Service cost | 7,760 | 6,801 | 9,448 |
Interest cost | 10,572 | 10,654 | 14,299 |
Plan participants' contributions | 1,830 | 1,522 | |
Actuarial (gain) loss | (5,534) | 44,580 | |
Benefits paid | (6,795) | (7,352) | |
Plan amendments | (2,655) | ||
Curtailments and settlements | (191,179) | ||
Foreign currency exchange rate changes | (20,160) | 13,064 | |
Projected benefit obligations at end of year | 349,680 | 364,662 | 486,572 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 221,421 | 360,527 | |
Actual return on plan assets | 21 | 17,851 | |
Employer contributions | 10,864 | 6,470 | |
Plan participants' contributions | 1,830 | 1,522 | |
Benefits paid | (6,795) | (7,041) | |
Settlements | (165,640) | ||
Foreign currency exchange rate changes | (9,471) | 7,732 | |
Fair value of plan assets at end of year | 217,870 | 221,421 | ¥ 360,527 |
Funded status at end of year | ¥ (131,810) | ¥ (143,241) |
Amounts Recognized in Consolida
Amounts Recognized in Consolidated Balance Sheets (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension and severance cost | ¥ (296,262) | ¥ (280,928) |
Japanese Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 814 | 532 |
Accrued pension and severance cost | (155,589) | (138,742) |
Defined Benefit Plan, Amounts Recognized in Balance Sheet, Total | (154,775) | (138,210) |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 9,986 | |
Accrued expenses | (1,123) | (1,055) |
Accrued pension and severance cost | (140,673) | (142,186) |
Defined Benefit Plan, Amounts Recognized in Balance Sheet, Total | ¥ (131,810) | ¥ (143,241) |
Amounts Recognized in Accumulat
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Before Effect of Income Taxes (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Japanese Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | ¥ 208,946 | ¥ 209,829 |
Prior service credit | (79,935) | (92,527) |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 129,011 | 117,302 |
Foreign Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | 71,750 | 69,287 |
Prior service credit | (2,567) | (57) |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | ¥ 69,183 | ¥ 69,230 |
Accumulated Benefit Obligation
Accumulated Benefit Obligation for All Defined Benefit Plans (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Japanese Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 740,545 | ¥ 720,034 |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 338,160 | ¥ 343,023 |
Pension Plans with Projected an
Pension Plans with Projected and Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Japanese Plans | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | ¥ 777,458 | ¥ 756,941 |
Fair value of plan assets | 621,869 | 618,199 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 731,537 | 716,940 |
Fair value of plan assets | 615,963 | 618,199 |
Foreign Plans | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | 346,749 | 364,662 |
Fair value of plan assets | 204,953 | 221,421 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 331,351 | 339,305 |
Fair value of plan assets | ¥ 200,891 | ¥ 216,560 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Japanese Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | ¥ 30,009 | ¥ 26,445 | ¥ 26,005 |
Interest cost | 8,008 | 10,772 | 11,655 |
Expected return on plan assets | (19,579) | (18,018) | (15,273) |
Amortization of prior service credit | (12,592) | (12,800) | (12,306) |
Amortization of actuarial loss | 10,402 | 10,023 | 13,546 |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | 16,248 | 16,422 | 23,627 |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 7,760 | 6,801 | 9,448 |
Interest cost | 10,572 | 10,654 | 14,299 |
Expected return on plan assets | (11,857) | (10,637) | (13,949) |
Amortization of prior service credit | (145) | (61) | (143) |
Amortization of actuarial loss | 3,839 | 1,698 | 2,005 |
(Gain) loss on curtailments and settlements | (9,370) | 146 | |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | ¥ 10,169 | ¥ (915) | ¥ 11,806 |
Other Changes in Plan Assets an
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | ¥ (13,166) | ¥ (71,166) | ¥ 51,860 |
Japanese Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | 9,519 | 33,800 | (54,150) |
Amortization of actuarial loss | (10,402) | (10,023) | (13,546) |
Amortization of prior service credit | 12,592 | 12,800 | 12,306 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax, Total | 11,709 | 36,577 | (55,390) |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | 6,302 | 37,366 | 2,290 |
Current year prior service credit | (2,655) | ||
Amortization of actuarial loss | (3,839) | (1,698) | (2,005) |
Amortization of prior service credit | 145 | 61 | 143 |
Curtailments and settlements | (16,725) | (358) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax, Total | ¥ (47) | ¥ 19,004 | ¥ 70 |
Summary of Defined Benefit Pens
Summary of Defined Benefit Pension Plans Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Cost over Next Year (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2015JPY (¥) | |
Japanese Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | ¥ (12,785) |
Actuarial loss | 10,830 |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (132) |
Actuarial loss | ¥ 3,213 |
Weighted-Average Assumptions Us
Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Japanese Plans | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 1.10% | 1.10% |
Assumed rate of increase in future compensation levels | 3.00% | 3.00% |
Foreign Plans | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.00% | 2.90% |
Assumed rate of increase in future compensation levels | 2.00% | 2.00% |
Weighted-Average Assumptions 83
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Japanese Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 1.10% | 1.60% | 1.80% |
Assumed rate of increase in future compensation levels | 3.00% | 3.00% | 3.00% |
Expected long-term rate of return on plan assets | 3.10% | 3.10% | 3.10% |
Foreign Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.90% | 3.90% | 3.60% |
Assumed rate of increase in future compensation levels | 2.00% | 2.30% | 2.20% |
Expected long-term rate of return on plan assets | 5.60% | 4.90% | 5.20% |
Fair Values of Company's Pensio
Fair Values of Company's Pension Plans Assets (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Fair Value, Inputs, Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | ¥ 779 | ¥ 1,600 | ||||
Japanese Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 626,575 | 622,121 | ¥ 581,996 | |||
Japanese Plans | Japanese Companies Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 49,847 | [1] | 51,805 | [2] | ||
Japanese Plans | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 3,287 | 10,233 | ||||
Japanese Plans | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [3] | 125,850 | 124,388 | |||
Japanese Plans | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [4] | 142,015 | 143,431 | |||
Japanese Plans | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,248 | 573 | ||||
Japanese Plans | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 13,532 | 11,775 | ||||
Japanese Plans | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 120,364 | [5] | 118,606 | [6] | ||
Japanese Plans | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 10,462 | 12,310 | ||||
Japanese Plans | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 125,759 | 123,575 | ||||
Japanese Plans | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 34,211 | 25,425 | ||||
Japanese Plans | Fair Value, Inputs, Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 195,149 | 205,469 | ||||
Japanese Plans | Fair Value, Inputs, Level 1 | Japanese Companies Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 49,847 | [1] | 51,805 | [2] | ||
Japanese Plans | Fair Value, Inputs, Level 1 | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 3,287 | 10,233 | ||||
Japanese Plans | Fair Value, Inputs, Level 1 | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [4] | 142,015 | 143,431 | |||
Japanese Plans | Fair Value, Inputs, Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 430,647 | 415,052 | ||||
Japanese Plans | Fair Value, Inputs, Level 2 | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [3] | 125,850 | 124,388 | |||
Japanese Plans | Fair Value, Inputs, Level 2 | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,248 | 573 | ||||
Japanese Plans | Fair Value, Inputs, Level 2 | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 13,532 | 11,775 | ||||
Japanese Plans | Fair Value, Inputs, Level 2 | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 120,364 | [5] | 118,606 | [6] | ||
Japanese Plans | Fair Value, Inputs, Level 2 | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 10,462 | 12,310 | ||||
Japanese Plans | Fair Value, Inputs, Level 2 | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 125,759 | 123,575 | ||||
Japanese Plans | Fair Value, Inputs, Level 2 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 33,432 | 23,825 | ||||
Japanese Plans | Fair Value, Inputs, Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 779 | 1,600 | ||||
Japanese Plans | Fair Value, Inputs, Level 3 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 779 | 1,600 | ||||
Foreign Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 217,870 | 221,421 | ¥ 360,527 | |||
Foreign Plans | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 18,661 | 31,963 | ||||
Foreign Plans | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [3] | 66,296 | 74,744 | |||
Foreign Plans | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [4] | 48 | 7,899 | |||
Foreign Plans | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 2,587 | 3,221 | ||||
Foreign Plans | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 21,009 | 24,014 | ||||
Foreign Plans | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 34,564 | [5] | 23,260 | [6] | ||
Foreign Plans | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 137 | |||||
Foreign Plans | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 6,190 | 7,049 | ||||
Foreign Plans | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 68,378 | 49,271 | ||||
Foreign Plans | Fair Value, Inputs, Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 18,709 | 39,862 | ||||
Foreign Plans | Fair Value, Inputs, Level 1 | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 18,661 | 31,963 | ||||
Foreign Plans | Fair Value, Inputs, Level 1 | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [4] | 48 | 7,899 | |||
Foreign Plans | Fair Value, Inputs, Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 199,161 | 181,559 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [3] | 66,296 | 74,744 | |||
Foreign Plans | Fair Value, Inputs, Level 2 | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 2,587 | 3,221 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 21,009 | 24,014 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 34,564 | [5] | 23,260 | [6] | ||
Foreign Plans | Fair Value, Inputs, Level 2 | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 137 | |||||
Foreign Plans | Fair Value, Inputs, Level 2 | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 6,190 | 7,049 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | ¥ 68,378 | ¥ 49,271 | ||||
[1] | The plan's equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥325 million. | |||||
[2] | The plan's equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥197 million. | |||||
[3] | These funds invest in listed equity securities consisting of approximately 25% Japanese companies and 75% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. | |||||
[4] | This class includes approximately 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. | |||||
[5] | These funds invest in approximately 25% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 75% foreign government bonds and 25% corporate bonds for foreign plans. | |||||
[6] | These funds invest in approximately 25% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 85% foreign government bonds and 15% corporate bonds for foreign plans. |
Fair Values of Company's Pens85
Fair Values of Company's Pension Plans Assets (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount of Employer and Related Party Securities Included in Plan Assets | ¥ 325 | ¥ 197 |
Japanese Companies Equity Securities | Japanese Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 25.00% | 25.00% |
Foreign Corporate Equity Securities | Japanese Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 75.00% | 75.00% |
Government Bonds | Japanese Plans | Japanese Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 85.00% | 85.00% |
Government Bonds | Japanese Plans | Foreign Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 15.00% | 15.00% |
Pooled Debt Securities Funds | Japanese Plans | Japanese Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 25.00% | 25.00% |
Pooled Debt Securities Funds | Japanese Plans | Foreign Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 50.00% | 50.00% |
Pooled Debt Securities Funds | Japanese Plans | Japanese Municipal Bonds Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 5.00% | 5.00% |
Pooled Debt Securities Funds | Japanese Plans | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 20.00% | 20.00% |
Pooled Debt Securities Funds | Foreign Plans | Foreign Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 75.00% | 85.00% |
Pooled Debt Securities Funds | Foreign Plans | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 25.00% | 15.00% |
Expected Future Service Benefit
Expected Future Service Benefit Payments (Detail) ¥ in Millions | Dec. 31, 2015JPY (¥) |
Japanese Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2016 | ¥ 20,023 |
Year ending December 31, 2017 | 21,351 |
Year ending December 31, 2018 | 23,280 |
Year ending December 31, 2019 | 23,359 |
Year ending December 31, 2020 | 27,886 |
Year ending December 31, 2021 - 2025 | 170,161 |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2016 | 9,836 |
Year ending December 31, 2017 | 10,165 |
Year ending December 31, 2018 | 9,843 |
Year ending December 31, 2019 | 11,036 |
Year ending December 31, 2020 | 11,686 |
Year ending December 31, 2021 - 2025 | ¥ 67,899 |
Components of Income Before Inc
Components of Income Before Income Taxes and Current and Deferred Income Tax Expense (Benefit) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Income before income taxes | ¥ 347,438 | ¥ 383,239 | ¥ 347,604 |
Income taxes: | |||
Current | 111,433 | 109,071 | 91,297 |
Deferred | 4,672 | 8,929 | 16,791 |
Income taxes | 116,105 | 118,000 | 108,088 |
Domestic Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 228,871 | 277,041 | 251,351 |
Income taxes: | |||
Current | 80,020 | 83,221 | 75,134 |
Deferred | 3,414 | 6,796 | 4,005 |
Income taxes | 83,434 | 90,017 | 79,139 |
Foreign Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 118,567 | 106,198 | 96,253 |
Income taxes: | |||
Current | 31,413 | 25,850 | 16,163 |
Deferred | 1,258 | 2,133 | 12,786 |
Income taxes | ¥ 32,671 | ¥ 27,983 | ¥ 28,949 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||||
Japanese statutory income tax rate | 35.00% | 38.00% | 38.00% | ||
Net increase (decrease) in the total valuation allowance | ¥ (4,567) | ¥ 2,443 | ¥ 2,888 | ||
Net operating losses which can be carried forward for income tax purposes to reduce future taxable income | 200,994 | ||||
Deferred tax liabilities not recognized for a portion of undistributed earnings of foreign subsidiaries | 28,500 | ||||
Undistributed earnings of subsidiaries for which tax liabilities were not recognized earlier | 940,931 | ||||
Total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized | 6,056 | ¥ 6,431 | |||
Scenario, Forecast | |||||
Income Taxes [Line Items] | |||||
Japanese statutory income tax rate | 32.00% | 33.00% | |||
Reduction in Taxes | |||||
Income Taxes [Line Items] | |||||
Adjustments of deferred tax assets and liabilities for tax rate | ¥ 6,456 |
Reconciliation of Japanese Stat
Reconciliation of Japanese Statutory Income Tax Rate and Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | |||
Japanese statutory income tax rate | 35.00% | 38.00% | 38.00% |
Increase (reduction) in income taxes resulting from: | |||
Expenses not deductible for tax purposes | 0.80% | 0.70% | 0.90% |
Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate | (2.90%) | (3.70%) | (3.30%) |
Tax credit for research and development expenses | (4.80%) | (5.00%) | (5.40%) |
Change in valuation allowance | (0.40%) | (0.50%) | 0.20% |
Effect of enacted changes in tax laws and rates on Japanese tax | 1.90% | 0.80% | |
Other | 3.80% | 0.50% | 0.70% |
Effective income tax rate | 33.40% | 30.80% | 31.10% |
Deferred Income Tax Assets and
Deferred Income Tax Assets and Liabilities (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Prepaid expenses and other current assets | ¥ 55,108 | ¥ 61,943 |
Other assets | 113,687 | 117,636 |
Other current liabilities | (2,682) | (3,456) |
Other noncurrent liabilities | (96,243) | (80,459) |
Net deferred tax assets | ¥ 69,870 | ¥ 95,664 |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences to Deferred Tax Assets and Deferred Tax Liabilities (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Inventories | ¥ 15,298 | ¥ 16,085 |
Accrued business tax | 3,293 | 3,951 |
Accrued pension and severance cost | 77,420 | 79,392 |
Research and development - costs capitalized for tax purposes | 6,906 | 8,616 |
Property, plant and equipment | 24,281 | 29,558 |
Accrued expenses | 39,881 | 43,706 |
Net operating losses carried forward | 33,526 | 38,351 |
Other | 33,808 | 34,673 |
Deferred Tax Assets, Gross, Total | 234,413 | 254,332 |
Less valuation allowance | (32,931) | (37,498) |
Total deferred tax assets | 201,482 | 216,834 |
Deferred tax liabilities: | ||
Undistributed earnings of foreign subsidiaries | (10,400) | (10,368) |
Net unrealized gains on securities | (7,354) | (6,801) |
Tax deductible reserve | (4,974) | (5,696) |
Financing lease revenue | (54,280) | (58,958) |
Prepaid pension and severance cost | (1,104) | (1,671) |
Intangible assets | (21,106) | (7,283) |
Other | (32,394) | (30,393) |
Total deferred tax liabilities | (131,612) | (121,170) |
Net deferred tax assets | ¥ 69,870 | ¥ 95,664 |
Periods Available to Reduce Fut
Periods Available to Reduce Future Taxable Income (Detail) ¥ in Millions | Dec. 31, 2015JPY (¥) |
Tax Credit Carryforward [Line Items] | |
Within one year | ¥ 6,138 |
After one year through five years | 36,317 |
After five years through ten years | 58,462 |
After ten years through twenty years | 62,270 |
Indefinite period | 37,807 |
Total | ¥ 200,994 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits [Line Items] | |||
Balance at beginning of year | ¥ 6,431 | ¥ 6,201 | ¥ 7,711 |
Additions for tax positions of the current year | 2,174 | 1,649 | 312 |
Additions for tax positions of prior years | 165 | 216 | 388 |
Reductions for tax positions of prior years | (1,180) | (114) | (3,141) |
Settlements with tax authorities | (505) | (1,808) | (347) |
Other | (1,029) | 287 | 1,278 |
Balance at end of year | ¥ 6,056 | ¥ 6,431 | ¥ 6,201 |
Legal Reserve and Retained Ea94
Legal Reserve and Retained Earnings - Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2015JPY (¥) | |
Stockholders Equity Note [Line Items] | |
Percentage of legal reserve appropriated from distributions from retained earnings paid by Canon Inc. and its subsidiaries | 10.00% |
Appropriations not required if percentage of additional paid in capital and legal reserve equals specific percentage of respective stated capital | 25.00% |
Year end dividends approved by shareholders | ¥ 81,905 |
Amount available for dividends under the Corporation Law of Japan | 970,771 |
Retained earnings included Canon's equity in undistributed earnings of affiliated companies accounted for by the equity method | ¥ 17,129 |
Change in Accumulated Other Com
Change in Accumulated Other Comprehensive Income (Loss) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | ¥ 28,286 | ¥ (80,646) | ¥ (367,249) |
Equity transactions with noncontrolling interests and other | 73 | (22) | (655) |
Other comprehensive income (loss) before reclassifications | (62,312) | 96,702 | 276,842 |
Amounts reclassified from accumulated other comprehensive income (loss) | 4,211 | 12,252 | 10,416 |
Net change during the period | (58,028) | 108,932 | 286,603 |
Balance at end of year | (29,742) | 28,286 | (80,646) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 144,557 | 1,734 | (247,734) |
Equity transactions with noncontrolling interests and other | 73 | 10 | (323) |
Other comprehensive income (loss) before reclassifications | (57,592) | 142,813 | 249,791 |
Net change during the period | (57,519) | 142,823 | 249,468 |
Balance at end of year | 87,038 | 144,557 | 1,734 |
Unrealized gains and losses on securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 12,546 | 10,242 | 4,146 |
Equity transactions with noncontrolling interests and other | 3 | (1) | |
Other comprehensive income (loss) before reclassifications | 1,691 | 3,933 | 7,449 |
Amounts reclassified from accumulated other comprehensive income (loss) | (182) | (1,632) | (1,352) |
Net change during the period | 1,509 | 2,304 | 6,096 |
Balance at end of year | 14,055 | 12,546 | 10,242 |
Gains and losses on derivatives instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (2,603) | (2,408) | (4,462) |
Equity transactions with noncontrolling interests and other | (2) | ||
Other comprehensive income (loss) before reclassifications | (256) | (2,204) | (7,551) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,041 | 2,009 | 9,607 |
Net change during the period | 2,785 | (195) | 2,054 |
Balance at end of year | 182 | (2,603) | (2,408) |
Pension liability adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (126,214) | (90,214) | (119,199) |
Equity transactions with noncontrolling interests and other | (35) | (329) | |
Other comprehensive income (loss) before reclassifications | (6,155) | (47,840) | 27,153 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,352 | 11,875 | 2,161 |
Net change during the period | (4,803) | (36,000) | 28,985 |
Balance at end of year | ¥ (131,017) | ¥ (126,214) | ¥ (90,214) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | ¥ 12,689 | ¥ (12,344) | ¥ (4,298) | |
Income taxes | 116,105 | 118,000 | 108,088 | |
Consolidated net income | (231,333) | (265,239) | (239,516) | |
Net income attributable to noncontrolling interests | 11,124 | 10,442 | 9,033 | |
Net income attributable to Canon Inc. | (220,209) | (254,797) | (230,483) | |
Total amount reclassified, net of tax and noncontrolling interests | (4,211) | (12,252) | (10,416) | |
Unrealized gains and losses on securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amount reclassified, net of tax and noncontrolling interests | 182 | 1,632 | 1,352 | |
Gains and losses on derivatives instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amount reclassified, net of tax and noncontrolling interests | (3,041) | (2,009) | (9,607) | |
Pension liability adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amount reclassified, net of tax and noncontrolling interests | (1,352) | (11,875) | (2,161) | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amount reclassified, net of tax and noncontrolling interests | [1] | 4,211 | 12,252 | 10,416 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains and losses on securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | (298) | (2,509) | (2,358) |
Income taxes | [1] | 104 | 879 | 613 |
Consolidated net income | [1] | (194) | (1,630) | (1,745) |
Net income attributable to noncontrolling interests | [1] | 12 | (2) | 393 |
Net income attributable to Canon Inc. | [1] | (182) | (1,632) | (1,352) |
Reclassification out of Accumulated Other Comprehensive Income | Gains and losses on derivatives instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | 4,217 | 3,260 | 15,387 |
Income taxes | [1] | (1,180) | (1,248) | (5,780) |
Consolidated net income | [1] | 3,037 | 2,012 | 9,607 |
Net income attributable to noncontrolling interests | [1] | 4 | (3) | |
Net income attributable to Canon Inc. | [1] | 3,041 | 2,009 | 9,607 |
Reclassification out of Accumulated Other Comprehensive Income | Pension liability adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | 1,504 | 15,585 | 3,460 |
Income taxes | [1] | (175) | (3,710) | (1,037) |
Consolidated net income | [1] | 1,329 | 11,875 | 2,423 |
Net income attributable to noncontrolling interests | [1] | 23 | (262) | |
Net income attributable to Canon Inc. | [1] | ¥ 1,352 | ¥ 11,875 | ¥ 2,161 |
[1] | Amounts in parentheses indicate gains in consolidated statements of income. |
Tax Effects Allocated to Other
Tax Effects Allocated to Other Comprehensive Income (Loss) and Reclassification Adjustments, Including Amounts Attributable to Noncontrolling Interests (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation adjustments, Before-tax amount | ¥ (56,054) | ¥ 144,826 | ¥ 253,707 |
Net unrealized gains and losses on securities, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | 3,249 | 6,379 | 12,669 |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | (298) | (2,509) | (2,358) |
Net change during the year, Before-tax amount | 2,951 | 3,870 | 10,311 |
Net gains and losses on derivative instruments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | 52 | (3,309) | (12,145) |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 4,217 | 3,260 | 15,387 |
Net change during the year, Before-tax amount | 4,269 | (49) | 3,242 |
Pension liability adjustments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | (13,166) | (71,166) | 51,860 |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 1,504 | 15,585 | 3,460 |
Net change during the year, Before-tax amount | (11,662) | (55,581) | 55,320 |
Other Comprehensive Income (Loss), Before-tax amount | (60,496) | 93,066 | 322,580 |
Foreign currency translation adjustments, Tax (expense) or benefit | 550 | (992) | (2,131) |
Net unrealized gains and losses on securities, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | (1,045) | (2,225) | (4,312) |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | 104 | 879 | 613 |
Net change during the year, Tax (expense) or benefit | (941) | (1,346) | (3,699) |
Net gains and losses on derivative instruments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | (304) | 1,102 | 4,594 |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (1,180) | (1,248) | (5,780) |
Net change during the year, Tax (expense) or benefit | (1,484) | (146) | (1,186) |
Pension liability adjustments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | 5,294 | 21,306 | (21,614) |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (175) | (3,710) | (1,037) |
Net change during the year, Tax (expense) or benefit | 5,119 | 17,596 | (22,651) |
Other comprehensive income (loss), Tax (expense) or benefit | 3,244 | 15,112 | (29,667) |
Foreign currency translation adjustments, Net-of-tax amount | (55,504) | 143,834 | 251,576 |
Net unrealized gains and losses on securities, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | 2,204 | 4,154 | 8,357 |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | (194) | (1,630) | (1,745) |
Net change during the year, Net-of-tax amount | 2,010 | 2,524 | 6,612 |
Net gains and losses on derivative instruments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | (252) | (2,207) | (7,551) |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 3,037 | 2,012 | 9,607 |
Net change during the year, Net-of-tax amount | 2,785 | (195) | 2,056 |
Pension liability adjustments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | (7,872) | (49,860) | 30,246 |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 1,329 | 11,875 | 2,423 |
Net change during the year, Net-of-tax amount | (6,543) | (37,985) | 32,669 |
Other comprehensive income (loss), Net-of-tax amount | ¥ (57,252) | ¥ 108,178 | ¥ 292,913 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | May. 01, 2011 | May. 01, 2010 | May. 01, 2009 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Number of common stock shares authorized to be acquired under stock options granted | 912,000 | 890,000 | 954,000 | ||||||
Vesting period | 2 years | 2 years | 2 years | ||||||
Exercisable period (in years) | 4 years | 4 years | 4 years | ||||||
Grant-date fair value per share of stock options | ¥ 772 | ¥ 988 | ¥ 699 | ||||||
Recognized compensation cost for stock options | ¥ 0 | ¥ 0 | ¥ 95 | ||||||
Fair value of vested shares | 0 | 0 | 570 | ||||||
Cash received from the exercise of stock options | ¥ 826 | ¥ 221 | ¥ 28 |
Summary of Option Activity Unde
Summary of Option Activity Under Stock Option Plans (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | ||||
Outstanding at beginning of year | 1,861,800 | 2,657,400 | 2,726,400 | |
Exercised | (249,600) | (67,200) | (8,600) | |
Forfeited | (60,400) | |||
Forfeited/Expired | (316,200) | (728,400) | ||
Outstanding at end of year | 1,296,000 | 1,861,800 | 2,657,400 | 2,726,400 |
Exercisable at end of year | 1,296,000 | |||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of year | ¥ 4,036 | ¥ 4,245 | ¥ 4,247 | |
Exercised | 3,311 | 3,287 | 3,287 | |
Forfeited | 4,461 | |||
Forfeited/Expired | 3,678 | 4,869 | ||
Outstanding at end of year | 4,263 | ¥ 4,036 | ¥ 4,245 | ¥ 4,247 |
Exercisable at end of year | ¥ 4,263 | |||
Weighted-Average Remaining Contractual Term | ||||
Outstanding at end of year | 4 months 24 days | 8 months 12 days | 1 year | 1 year 7 months 6 days |
Exercisable at end of year | 4 months 24 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | ¥ 248 | ¥ 28 | ¥ 37 | |
Outstanding at end of year | ¥ 248 | ¥ 28 | ¥ 37 | |
Exercisable at end of year | ¥ 0 |
Reconciliation of Numerators an
Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Attributable to Canon Inc. Shareholders Per Share Computations (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Disclosure [Line Items] | |||
Net income attributable to Canon Inc. | ¥ 220,209 | ¥ 254,797 | ¥ 230,483 |
Average common shares outstanding | 1,092,017,955 | 1,112,509,931 | 1,147,933,835 |
Stock options | 34,931 | 4,393 | 8,466 |
Diluted common shares outstanding | 1,092,052,886 | 1,112,514,324 | 1,147,942,301 |
Net income attributable to Canon Inc. shareholders per share: | |||
Basic | ¥ 201.65 | ¥ 229.03 | ¥ 200.78 |
Diluted | ¥ 201.65 | ¥ 229.03 | ¥ 200.78 |
Contract Amounts of Foreign Exc
Contract Amounts of Foreign Exchange Contracts (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Foreign currency to sell | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 228,053 | ¥ 358,862 |
Foreign currency to buy | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 37,540 | ¥ 21,365 |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments in Consolidated Balance Sheet (Detail) - Foreign Exchange Contract - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets designated as Hedging Instrument | ¥ 373 | ¥ 8 |
Derivative assets not designated as Hedging Instrument | 1,112 | 257 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities designated as hedging instruments | 534 | 1,597 |
Derivatives liabilities not designated as hedging instruments | ¥ 90 | ¥ 9,570 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statements of Income (Detail) - Cash Flow Hedging - Foreign Exchange Contract - Other Nonoperating Income Expense - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | ¥ 52 | ¥ (3,309) | ¥ (12,145) |
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (4,217) | (3,260) | (15,387) |
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | ¥ (131) | ¥ (145) | ¥ (111) |
Derivatives not Designated as H
Derivatives not Designated as Hedging Instruments (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Nonoperating Income Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income on derivative | ¥ 1,099 | ¥ (21,728) | ¥ (61,787) |
Commitments and Contingent L105
Commitments and Contingent Liabilities - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Deposits made under lease arrangements included in noncurrent receivables | ¥ 13,561 | ¥ 13,847 | |
Rental expenses under the operating lease arrangements | 46,483 | ¥ 43,215 | ¥ 44,562 |
Maximum amount of undiscounted payments in case of default | ¥ 7,685 | ||
Employees with Housing Loan | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee contract period | 1 year | ||
Employees with Housing Loan | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee contract period | 30 years | ||
Affiliates and Other Companies | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee contract period | 1 year | ||
Affiliates and Other Companies | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee contract period | 5 years | ||
Purchase of Property, Plant and Equipment | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Commitments outstanding | ¥ 43,059 | ||
Purchase of Parts and Raw Materials | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Commitments outstanding | ¥ 75,439 |
Future Minimum Lease Payments R
Future Minimum Lease Payments Required Under Noncancelable Operating Leases (Detail) ¥ in Millions | Dec. 31, 2015JPY (¥) |
Schedule of Operating Leases [Line Items] | |
2,016 | ¥ 26,294 |
2,017 | 20,328 |
2,018 | 13,855 |
2,019 | 8,847 |
2,020 | 6,115 |
Thereafter | 12,153 |
Total future minimum lease payments | ¥ 87,592 |
Changes in Accrued Product Warr
Changes in Accrued Product Warranty Costs (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Product Warranty in Guarantees [Line Items] | ||
Balance at beginning of year | ¥ 11,564 | ¥ 10,890 |
Additions | 18,942 | 15,699 |
Utilization | (12,404) | (12,039) |
Other | (4,088) | (2,986) |
Balance at end of year | ¥ 14,014 | ¥ 11,564 |
Estimated Fair Values of Canon'
Estimated Fair Values of Canon's Financial Instruments (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current installments | ¥ (1,543) | ¥ (2,163) |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current installments | ¥ (1,507) | ¥ (2,146) |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments and Concentrations of Credit Risk - Additional Information (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Percentage of consolidated trade receivables accounted by single customer | 15.00% | 16.00% |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and cash equivalents | ¥ 80,870 | ¥ 139,240 |
Derivatives | 1,485 | 265 |
Total assets | 125,756 | 181,203 |
Liabilities: | ||
Derivatives | 624 | 11,167 |
Total liabilities | 624 | 11,167 |
Government Bonds | ||
Assets: | ||
Available-for-sale (noncurrent) | 287 | 325 |
Corporate Bonds | ||
Assets: | ||
Available-for-sale (noncurrent) | 201 | 636 |
Fund Trusts | ||
Assets: | ||
Available-for-sale (noncurrent) | 64 | 84 |
Equity Securities | ||
Assets: | ||
Available-for-sale (noncurrent) | 42,849 | 40,653 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total assets | 43,148 | 40,990 |
Fair Value, Inputs, Level 1 | Government Bonds | ||
Assets: | ||
Available-for-sale (noncurrent) | 287 | 325 |
Fair Value, Inputs, Level 1 | Fund Trusts | ||
Assets: | ||
Available-for-sale (noncurrent) | 12 | 12 |
Fair Value, Inputs, Level 1 | Equity Securities | ||
Assets: | ||
Available-for-sale (noncurrent) | 42,849 | 40,653 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and cash equivalents | 80,870 | 139,240 |
Derivatives | 1,485 | 265 |
Total assets | 82,608 | 139,739 |
Liabilities: | ||
Derivatives | 624 | 11,167 |
Total liabilities | 624 | 11,167 |
Fair Value, Inputs, Level 2 | Corporate Bonds | ||
Assets: | ||
Available-for-sale (noncurrent) | 201 | 162 |
Fair Value, Inputs, Level 2 | Fund Trusts | ||
Assets: | ||
Available-for-sale (noncurrent) | ¥ 52 | 72 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Total assets | 474 | |
Fair Value, Inputs, Level 3 | Corporate Bonds | ||
Assets: | ||
Available-for-sale (noncurrent) | ¥ 474 |
Changes in Level 3 Assets Measu
Changes in Level 3 Assets Measured on Recurring Basis (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of year | ¥ 474 | ¥ 340 |
Total gains or losses (realized or unrealized): | ||
Included in earnings | 0 | 0 |
Included in other comprehensive income (loss) | 22 | (18) |
Purchases, issuances, and settlements | (496) | 152 |
Balance at end of year | ¥ 0 | ¥ 474 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015JPY (¥)Segment | Dec. 31, 2014JPY (¥) | Dec. 31, 2013JPY (¥) | |
Revenue, Major Customer [Line Items] | |||
Operating business segments | Segment | 3 | ||
Minimum sales as a percentage of net consolidated sales to conduct business in any individual country | 10.00% | 10.00% | 10.00% |
Net sales | ¥ 3,800,271 | ¥ 3,727,252 | ¥ 3,731,380 |
UNITED STATES | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 1,047,838 | ¥ 938,411 | ¥ 960,213 |
Information about Operating Res
Information about Operating Results and Assets for Each Segment (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales: | |||
Net sales | ¥ 3,800,271 | ¥ 3,727,252 | ¥ 3,731,380 |
Operating cost and expenses | 3,445,061 | 3,363,763 | 3,394,103 |
Operating profit | 355,210 | 363,489 | 337,277 |
Total assets | 4,427,773 | 4,460,618 | 4,242,710 |
Depreciation and amortization | 273,327 | 263,480 | 275,173 |
Capital expenditures | 243,130 | 224,760 | 227,478 |
Office Business Unit | |||
Net sales: | |||
Net sales | 2,108,246 | 2,075,788 | 1,993,898 |
Operating cost and expenses | 1,820,230 | 1,786,675 | 1,733,165 |
Operating profit | 290,586 | 292,057 | 266,908 |
Total assets | 1,020,758 | 1,025,499 | 954,803 |
Depreciation and amortization | 86,206 | 87,058 | 88,344 |
Capital expenditures | 73,819 | 69,704 | 54,644 |
Imaging System Business Unit | |||
Net sales: | |||
Net sales | 1,262,667 | 1,342,501 | 1,448,186 |
Operating cost and expenses | 1,080,396 | 1,148,593 | 1,245,144 |
Operating profit | 183,439 | 194,601 | 203,794 |
Total assets | 452,283 | 517,524 | 584,856 |
Depreciation and amortization | 52,070 | 53,912 | 56,564 |
Capital expenditures | 38,337 | 31,124 | 44,112 |
Industry and Others Business Unit | |||
Net sales: | |||
Net sales | 429,358 | 308,963 | 289,296 |
Operating cost and expenses | 537,730 | 420,566 | 400,201 |
Operating profit | (13,079) | (21,801) | (25,331) |
Total assets | 332,252 | 342,695 | 328,202 |
Depreciation and amortization | 45,064 | 37,544 | 37,072 |
Capital expenditures | 24,241 | 15,976 | 27,040 |
Corporate and Eliminations | |||
Net sales: | |||
Operating cost and expenses | 6,705 | 7,929 | 15,593 |
Operating profit | (105,736) | (101,368) | (108,094) |
Total assets | 2,622,480 | 2,574,900 | 2,374,849 |
Depreciation and amortization | 89,987 | 84,966 | 93,193 |
Capital expenditures | 106,733 | 107,956 | 101,682 |
Operating Segments | |||
Net sales: | |||
Net sales | 3,800,271 | 3,727,252 | 3,731,380 |
Operating Segments | Office Business Unit | |||
Net sales: | |||
Net sales | 2,110,816 | 2,078,732 | 2,000,073 |
Operating Segments | Imaging System Business Unit | |||
Net sales: | |||
Net sales | 1,263,835 | 1,343,194 | 1,448,938 |
Operating Segments | Industry and Others Business Unit | |||
Net sales: | |||
Net sales | 524,651 | 398,765 | 374,870 |
Operating Segments | Corporate and Eliminations | |||
Net sales: | |||
Net sales | (99,031) | (93,439) | (92,501) |
Intersegment Eliminations | Office Business Unit | |||
Net sales: | |||
Net sales | (2,570) | (2,944) | (6,175) |
Intersegment Eliminations | Imaging System Business Unit | |||
Net sales: | |||
Net sales | (1,168) | (693) | (752) |
Intersegment Eliminations | Industry and Others Business Unit | |||
Net sales: | |||
Net sales | (95,293) | (89,802) | (85,574) |
Intersegment Eliminations | Corporate and Eliminations | |||
Net sales: | |||
Net sales | ¥ 99,031 | ¥ 93,439 | ¥ 92,501 |
Product Sales to External Custo
Product Sales to External Customers by Business Unit (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 3,800,271 | ¥ 3,727,252 | ¥ 3,731,380 |
Office Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 2,108,246 | 2,075,788 | 1,993,898 |
Office Business Unit | Monochrome Copiers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 328,061 | 322,398 | 312,973 |
Office Business Unit | Color Copiers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 421,209 | 401,447 | 381,848 |
Office Business Unit | Printers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 857,369 | 862,000 | 841,436 |
Office Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 501,607 | 489,943 | 457,641 |
Imaging System Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 1,262,667 | 1,342,501 | 1,448,186 |
Imaging System Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 117,381 | 114,359 | 111,599 |
Imaging System Business Unit | Cameras | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 782,623 | 861,196 | 973,517 |
Imaging System Business Unit | Inkjet Printers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 362,663 | 366,946 | 363,070 |
Industry and Others Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 429,358 | 308,963 | 289,296 |
Industry and Others Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 305,471 | 218,568 | 227,180 |
Industry and Others Business Unit | Lithography Equipment | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 123,887 | ¥ 90,395 | ¥ 62,116 |
Information by Major Geographic
Information by Major Geographic Area (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales: | |||
Net sales | ¥ 3,800,271 | ¥ 3,727,252 | ¥ 3,731,380 |
Japan | |||
Net sales: | |||
Net sales | 847,669 | 836,801 | 797,501 |
Americas | |||
Net sales: | |||
Net sales | 1,138,830 | 1,033,797 | 1,056,096 |
Europe | |||
Net sales: | |||
Net sales | 1,077,033 | 1,088,293 | 1,124,603 |
Asia and Oceania | |||
Net sales: | |||
Net sales | 736,739 | 768,361 | 753,180 |
Reportable Geographical Components | |||
Net sales: | |||
Net sales | 3,800,271 | 3,727,252 | 3,731,380 |
Long-lived assets: | |||
Long-lived assets | 1,460,860 | 1,446,817 | 1,423,805 |
Reportable Geographical Components | Japan | |||
Net sales: | |||
Net sales | 714,280 | 724,317 | 715,863 |
Long-lived assets: | |||
Long-lived assets | 937,716 | 950,719 | 984,231 |
Reportable Geographical Components | Americas | |||
Net sales: | |||
Net sales | 1,144,422 | 1,036,500 | 1,059,501 |
Long-lived assets: | |||
Long-lived assets | 150,105 | 157,748 | 131,660 |
Reportable Geographical Components | Europe | |||
Net sales: | |||
Net sales | 1,074,366 | 1,090,484 | 1,124,929 |
Long-lived assets: | |||
Long-lived assets | 183,451 | 127,700 | 111,609 |
Reportable Geographical Components | Asia and Oceania | |||
Net sales: | |||
Net sales | 867,203 | 875,951 | 831,087 |
Long-lived assets: | |||
Long-lived assets | ¥ 189,588 | ¥ 210,650 | ¥ 196,305 |
Geographic Supplemental Informa
Geographic Supplemental Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales: | |||
Net sales | ¥ 3,800,271 | ¥ 3,727,252 | ¥ 3,731,380 |
Operating cost and expenses | 3,445,061 | 3,363,763 | 3,394,103 |
Operating profit | 355,210 | 363,489 | 337,277 |
Total assets | 4,427,773 | 4,460,618 | 4,242,710 |
Japan | |||
Net sales: | |||
Net sales | 847,669 | 836,801 | 797,501 |
Operating cost and expenses | 2,285,780 | 2,245,930 | 2,326,351 |
Operating profit | 327,729 | 343,249 | 326,331 |
Total assets | 969,805 | 1,134,484 | 1,152,398 |
Americas | |||
Net sales: | |||
Net sales | 1,138,830 | 1,033,797 | 1,056,096 |
Operating cost and expenses | 1,130,099 | 1,018,661 | 1,043,487 |
Operating profit | 29,800 | 23,874 | 24,383 |
Total assets | 544,395 | 531,122 | 447,039 |
Europe | |||
Net sales: | |||
Net sales | 1,077,033 | 1,088,293 | 1,124,603 |
Operating cost and expenses | 1,165,218 | 1,135,515 | 1,171,357 |
Operating profit | 18,490 | 12,271 | 6,527 |
Total assets | 409,357 | 484,858 | 496,549 |
Asia and Oceania | |||
Net sales: | |||
Net sales | 736,739 | 768,361 | 753,180 |
Operating cost and expenses | 1,582,113 | 1,522,244 | 1,574,125 |
Operating profit | 66,021 | 67,717 | 60,820 |
Total assets | 620,090 | 674,672 | 631,827 |
Corporate and Eliminations | |||
Net sales: | |||
Operating cost and expenses | (2,718,149) | (2,558,587) | (2,721,217) |
Operating profit | (86,830) | (83,622) | (80,784) |
Total assets | 1,884,126 | 1,635,482 | 1,514,897 |
Geography Eliminations | Japan | |||
Net sales: | |||
Net sales | (1,765,840) | (1,752,378) | (1,855,181) |
Geography Eliminations | Americas | |||
Net sales: | |||
Net sales | (21,069) | (8,738) | (11,774) |
Geography Eliminations | Europe | |||
Net sales: | |||
Net sales | (106,675) | (59,493) | (53,281) |
Geography Eliminations | Asia and Oceania | |||
Net sales: | |||
Net sales | (911,395) | (821,600) | (881,765) |
Geography Eliminations | Corporate and Eliminations | |||
Net sales: | |||
Net sales | 2,804,979 | 2,642,209 | 2,802,001 |
Operating Segments | |||
Net sales: | |||
Net sales | 3,800,271 | 3,727,252 | 3,731,380 |
Operating Segments | Japan | |||
Net sales: | |||
Net sales | 2,613,509 | 2,589,179 | 2,652,682 |
Operating Segments | Americas | |||
Net sales: | |||
Net sales | 1,159,899 | 1,042,535 | 1,067,870 |
Operating Segments | Europe | |||
Net sales: | |||
Net sales | 1,183,708 | 1,147,786 | 1,177,884 |
Operating Segments | Asia and Oceania | |||
Net sales: | |||
Net sales | 1,648,134 | 1,589,961 | 1,634,945 |
Operating Segments | Corporate and Eliminations | |||
Net sales: | |||
Net sales | ¥ (2,804,979) | ¥ (2,642,209) | ¥ (2,802,001) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - JPY (¥) ¥ in Billions | Mar. 17, 2016 | Mar. 30, 2016 |
Subsequent Event [Line Items] | ||
Excellent Global Corporation Plan, initiative period | 5 years | |
Toshiba Medical Systems Corporation | ||
Subsequent Event [Line Items] | ||
Approved date of acquisition | Mar. 17, 2016 | |
Total consideration | ¥ 665.5 | |
Loans payable to bank | ¥ 660 | |
Debt instrument due date | Sep. 30, 2016 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Trade Receivables | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | ¥ 12,122 | ¥ 12,730 | ¥ 12,970 |
Addition- charged to income | 2,180 | 878 | 1,235 |
Deduction bad debts written off | (1,745) | (2,236) | (4,173) |
Translation adjustments and other | (480) | 750 | 2,698 |
Balance at end of period | 12,077 | 12,122 | 12,730 |
Finance Receivables | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 6,276 | 7,323 | 6,908 |
Addition- charged to income | 55 | 154 | 212 |
Deduction bad debts written off | (1,343) | (1,171) | (1,278) |
Translation adjustments and other | (2,110) | (30) | 1,481 |
Balance at end of period | ¥ 2,878 | ¥ 6,276 | ¥ 7,323 |