Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | CAJ |
Entity Registrant Name | CANON INC |
Entity Central Index Key | 0000016988 |
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 Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 1,079,749,823 |
Consolidated Balance Sheets
Consolidated Balance Sheets - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents (Note 1) | ¥ 520,645 | ¥ 721,814 |
Short-term investments (Note 2) | 956 | 1,965 |
Trade receivables, net (Notes 3 and 15) | 612,953 | 650,872 |
Inventories (Notes 4 and 15) | 611,281 | 570,033 |
Prepaid expenses and other current assets (Notes 6, 15 and 18) | 304,346 | 287,965 |
Total current assets | 2,050,181 | 2,232,649 |
Noncurrent receivables (Note 19) | 18,230 | 35,444 |
Investments (Note 2) | 42,556 | 48,320 |
Property, plant and equipment, net (Notes 5 and 6) | 1,090,992 | 1,126,620 |
Intangible assets, net (Notes 7 and 8) | 391,021 | 420,972 |
Goodwill (Notes 7 and 8) | 908,511 | 936,722 |
Other assets (Notes 6, 11 and 12) | 397,974 | 397,564 |
Total assets | 4,899,465 | 5,198,291 |
Current liabilities: | ||
Short-term loans and current portion of long-term debt (Note 9) | 38,527 | 39,328 |
Trade payables (Note 10) | 352,489 | 380,654 |
Accrued income taxes (Note 12) | 41,264 | 77,501 |
Accrued expenses (Notes 11, 15 and 19) | 321,137 | 330,188 |
Other current liabilities (Notes 5, 15 and 18) | 276,237 | 281,809 |
Total current liabilities | 1,029,654 | 1,109,480 |
Long-term debt, excluding current installments (Notes 9 and 20) | 361,962 | 493,238 |
Accrued pension and severance cost (Note 11) | 382,789 | 365,582 |
Other noncurrent liabilities (Note 12) | 107,147 | 133,816 |
Total liabilities | 1,881,552 | 2,102,116 |
Commitments and contingent liabilities (Note 19) | ||
Canon Inc. shareholders' equity: | ||
Common stock Authorized 3,000,000,000 shares; issued 1,333,763,464 shares in 2018 and 2017 | 174,762 | 174,762 |
Additional paid-in capital | 404,389 | 401,386 |
Legal reserve (Note 13) | 67,116 | 66,879 |
Retained earnings (Note 13) | 3,508,908 | 3,429,312 |
Accumulated other comprehensive income (loss) (Note 14) | (269,071) | (143,228) |
Treasury stock, at cost; 254,013,641 shares in 2018 and 254,007,681 shares in 2017 | (1,058,502) | (1,058,481) |
Total Canon Inc. shareholders' equity | 2,827,602 | 2,870,630 |
Noncontrolling interests | 190,311 | 225,545 |
Total equity | 3,017,913 | 3,096,175 |
Total liabilities and equity | ¥ 4,899,465 | ¥ 5,198,291 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
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 | 254,013,641 | 254,007,681 |
Consolidated Statements of Inco
Consolidated Statements of Income - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net sales | ¥ 3,951,937 | ¥ 4,080,015 | ¥ 3,401,487 | |
Cost of Sales | 2,116,383 | 2,089,461 | 1,729,489 | |
Gross profit | 1,835,554 | 1,990,554 | 1,671,998 | |
Operating expenses (Notes 1, 5, 8, 11, 15, 16, 19 and 21): | ||||
Selling, general and administrative expenses | 1,176,760 | 1,301,666 | 1,149,036 | |
Research and development expenses | 315,842 | 333,371 | 306,537 | |
Impairment losses on goodwill | [1],[2] | 33,912 | ||
Operating expenses | 1,492,602 | 1,668,949 | 1,455,573 | |
Operating profit | 342,952 | 321,605 | 216,425 | |
Other income (deductions): | ||||
Interest and dividend income | 6,604 | 6,012 | 4,762 | |
Interest expense | (797) | (818) | (1,061) | |
Other, net (Notes 1, 2, 11, 14 and 18) | 14,133 | 27,085 | 24,525 | |
Other income (deductions) | 19,940 | 32,279 | 28,226 | |
Income before income taxes | 362,892 | 353,884 | 244,651 | |
Income taxes (Note 12) | 96,150 | 98,024 | 82,681 | |
Consolidated net income | 266,742 | 255,860 | 161,970 | |
Less: Net income attributable to noncontrolling interests | 13,987 | 13,937 | 11,320 | |
Net income attributable to Canon Inc. | ¥ 252,755 | ¥ 241,923 | ¥ 150,650 | |
Net income attributable to Canon Inc. shareholders per share (Note 17): | ||||
Basic | ¥ 234.09 | ¥ 222.88 | ¥ 137.95 | |
Diluted | 234.08 | 222.88 | 137.95 | |
Cash dividends per share | ¥ 160 | ¥ 160 | ¥ 150 | |
Products And Equipment | ||||
Net sales | ¥ 3,194,724 | ¥ 3,521,156 | ¥ 2,986,188 | |
Cost of Sales | 1,762,171 | 1,875,581 | 1,574,679 | |
Services | ||||
Net sales | 757,213 | 558,859 | 415,299 | |
Cost of Sales | ¥ 354,212 | ¥ 213,880 | ¥ 154,810 | |
[1] | After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit's fair value. | |||
[2] | Based on the realignment of Canon's internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | ¥ 266,742 | ¥ 255,860 | ¥ 161,970 |
Other comprehensive income (loss), net of tax (Note 14): | |||
Foreign currency translation adjustments | (93,146) | 47,090 | (107,666) |
Net unrealized gains and losses on securities | (141) | (9,362) | 997 |
Net gains and losses on derivative instruments | 488 | 2,588 | (2,948) |
Pension liability adjustments | (30,570) | 21,207 | (70,355) |
Net change during the period | (123,369) | 61,523 | (179,972) |
Comprehensive income (loss) | 143,373 | 317,383 | (18,002) |
Less: Comprehensive income attributable to noncontrolling interests | 6,918 | 18,807 | 1,745 |
Comprehensive income (loss) attributable to Canon Inc. | ¥ 136,455 | ¥ 298,576 | ¥ (19,747) |
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 |
Balance at beginning of year 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 |
Equity transactions with noncontrolling interests and other | (4,985) | 27 | 258 | 285 | (5,270) | ||||
Dividends to Canon Inc. shareholders | (163,810) | (163,810) | (163,810) | ||||||
Dividends to noncontrolling interests | (4,077) | (4,077) | |||||||
Acquisition of subsidiaries | 1,047 | 1,047 | |||||||
Transfer to legal reserve | 1,269 | (1,269) | |||||||
Comprehensive income: | |||||||||
Net income | 161,970 | 150,650 | 150,650 | 11,320 | |||||
Other comprehensive income (loss), net of tax (Note 14): | |||||||||
Foreign currency translation adjustments | (107,666) | (101,257) | (101,257) | (6,409) | |||||
Net unrealized gains and losses on securities | 997 | 1,196 | 1,196 | (199) | |||||
Net gains and losses on derivative instruments | (2,948) | (2,924) | (2,924) | (24) | |||||
Pension liability adjustments | (70,355) | (67,412) | (67,412) | (2,943) | |||||
Comprehensive income (loss) | (18,002) | (19,747) | 1,745 | ||||||
Repurchases and reissuance of treasury stock | (14) | (1) | (13) | (14) | |||||
Balance at end of year at Dec. 31, 2016 | 2,994,622 | 174,762 | 401,385 | 66,558 | 3,350,728 | (199,881) | (1,010,423) | 2,783,129 | 211,493 |
Equity transactions with noncontrolling interests and other | 1 | 1 | (1) | ||||||
Dividends to Canon Inc. shareholders | (162,887) | (162,887) | (162,887) | ||||||
Dividends to noncontrolling interests | (4,814) | (4,814) | |||||||
Acquisition of subsidiaries | 60 | 60 | |||||||
Transfer to legal reserve | 321 | (321) | |||||||
Comprehensive income: | |||||||||
Net income | 255,860 | 241,923 | 241,923 | 13,937 | |||||
Other comprehensive income (loss), net of tax (Note 14): | |||||||||
Foreign currency translation adjustments | 47,090 | 44,168 | 44,168 | 2,922 | |||||
Net unrealized gains and losses on securities | (9,362) | (9,767) | (9,767) | 405 | |||||
Net gains and losses on derivative instruments | 2,588 | 2,562 | 2,562 | 26 | |||||
Pension liability adjustments | 21,207 | 19,690 | 19,690 | 1,517 | |||||
Comprehensive income (loss) | 317,383 | 298,576 | 18,807 | ||||||
Repurchases of treasury stock | (50,036) | (50,036) | (50,036) | ||||||
Reissuance of treasury stock | 1,847 | (131) | 1,978 | 1,847 | |||||
Balance at end of year at Dec. 31, 2017 | 3,096,175 | 174,762 | 401,386 | 66,879 | 3,429,312 | (143,228) | (1,058,481) | 2,870,630 | 225,545 |
Equity transactions with noncontrolling interests and other | (37,715) | 3,003 | (4,200) | (1,197) | (36,518) | ||||
Dividends to Canon Inc. shareholders | (178,159) | (178,159) | (178,159) | ||||||
Dividends to noncontrolling interests | (5,558) | (5,558) | |||||||
Transfer to legal reserve | 237 | (237) | |||||||
Comprehensive income: | |||||||||
Net income | 266,742 | 252,755 | 252,755 | 13,987 | |||||
Other comprehensive income (loss), net of tax (Note 14): | |||||||||
Foreign currency translation adjustments | (93,146) | (89,823) | (89,823) | (3,323) | |||||
Net unrealized gains and losses on securities | (141) | (141) | (141) | ||||||
Net gains and losses on derivative instruments | 488 | 488 | 488 | ||||||
Pension liability adjustments | (30,570) | (26,824) | (26,824) | (3,746) | |||||
Comprehensive income (loss) | 143,373 | 136,455 | 6,918 | ||||||
Repurchases of treasury stock | (25) | (25) | (25) | ||||||
Reissuance of treasury stock | 4 | 0 | 4 | 4 | |||||
Balance at end of year at Dec. 31, 2018 | 3,017,913 | ¥ 174,762 | ¥ 404,389 | ¥ 67,116 | 3,508,908 | (269,071) | ¥ (1,058,502) | 2,827,602 | 190,311 |
Cumulative effects of accounting standard update - adoption of ASU | ASU 2014-09 | ¥ (182) | (106) | ¥ (106) | ¥ (76) | |||||
Cumulative effects of accounting standard update - adoption of ASU | ASU 2016-01 | ¥ 5,343 | ¥ (5,343) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash flows from operating activities: | ||||
Consolidated net income | ¥ 266,742 | ¥ 255,860 | ¥ 161,970 | |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 251,554 | 261,881 | 250,096 | |
Loss on disposal of fixed assets | 5,726 | 6,935 | 5,203 | |
Equity in earnings of affiliated companies | (1,414) | (1,196) | (890) | |
Impairment losses on goodwill (Notes 8 and 21) | [1],[2] | 33,912 | ||
Gain on securities contributed to retirement benefit trust (Note 2) | (17,836) | |||
Deferred income taxes | (11,849) | (17,603) | 7,188 | |
(Increase) decrease in trade receivables | (17,724) | 3,563 | (4,155) | |
(Increase) decrease in inventories | (61,755) | 2,967 | 6,156 | |
Increase (decrease) in trade payables | (31,212) | 4,951 | 56,844 | |
Increase (decrease) in accrued income taxes | (35,284) | 46,296 | (16,456) | |
Increase (decrease) in accrued expenses | 2,541 | 18,503 | (5,256) | |
Increase (decrease) in accrued (prepaid) pension and severance cost | (17,738) | 522 | 5,489 | |
Other, net (Note 6) | 15,706 | (8,198) | 34,094 | |
Net cash provided by operating activities | 365,293 | 590,557 | 500,283 | |
Cash flows from investing activities: | ||||
Purchases of fixed assets (Note 5) | (191,399) | (189,484) | (206,971) | |
Proceeds from sale of fixed assets (Note 5) | 9,634 | 26,444 | 6,177 | |
Purchases of securities | (2,311) | (2,220) | (84) | |
Proceeds from sale and maturity of securities | 1,615 | 970 | 1,181 | |
Decrease in time deposits, net | 401 | 3,373 | 15,414 | |
Acquisitions of businesses, net of cash acquired (Note 7) | (13,346) | (6,557) | (649,570) | |
Other, net | (209) | 2,464 | (3,272) | |
Net cash used in investing activities | (195,615) | (165,010) | (837,125) | |
Cash flows from financing activities: | ||||
Proceeds from issuance of long-term debt (Note 9) | 439 | 1,570 | 610,552 | |
Repayments of long-term debt (Note 9) | (136,094) | (126,578) | (856) | |
Increase (decrease) in short-term loans, net (Note 9) | 2,501 | 5,628 | (80,580) | |
Transactions with noncontrolling interests | (37,942) | (4,993) | ||
Dividends paid | (178,159) | (162,887) | (163,810) | |
Repurchases and reissuance of treasury stock | (21) | (50,034) | (14) | |
Other, net | (5,554) | (8,163) | (4,607) | |
Net cash provided by (used in) financing activities | (354,830) | (340,464) | 355,692 | |
Effect of exchange rate changes on cash and cash equivalents | (16,017) | 6,538 | (22,270) | |
Net change in cash and cash equivalents | (201,169) | 91,621 | (3,420) | |
Cash and cash equivalents at beginning of year | 721,814 | 630,193 | 633,613 | |
Cash and cash equivalents at end of year | 520,645 | 721,814 | 630,193 | |
Supplemental disclosure for cash flow information, Cash paid during the year for: | ||||
Interest | 749 | 1,026 | 738 | |
Income taxes | ¥ 131,616 | ¥ 71,473 | ¥ 76,714 | |
[1] | After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit's fair value. | |||
[2] | Based on the realignment of Canon's internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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, medical system products and industry and other products. Office products consist mainly of office multifunction devices (“MFDs”), laser multifunction printers (“MFPs”), laser printers, digital continuous feed presses, digital sheet-fed wide-format X-ray Canon sells laser printers on an OEM basis to HP Inc.; such sales constituted 13.6%, 13.1% and 14.8% of consolidated net sales for the years ended December 31, 2018, 2017 and 2016, respectively, and are included in the Office Business Unit. Canon’s manufacturing operations are conducted primarily at 30 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 (“U.S. 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 accounts including: 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 net losses of ¥6,044 million, ¥9,775 million and ¥2 million for the years ended December 31, 2018, 2017 and 2016, 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 (g) Investments Investments consist primarily of time deposits with original maturities of more than three months, debt and equity securities and investments in affiliated companies. Canon classifies investments in debt securities as available-for-sale held-to-maturity Available-for-sales available-for-sales Available-for-sale available-for-sale available-for-sale Canon measures non-marketable 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. (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 net realizable value. Cost is determined by the average method for domestic inventories and principally by the first-in, first-out (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. 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 recognizes an impairment charge in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 7 years, trademarks are 15 years, patents and developed technology are from 7 years to 17 years, license fees are 7 years, and customer relationships are from 11 years to 15 years, respectively. Certain costs incurred in connection with developing or obtaining internal-use internal-use (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 (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, imaging system and medical system products, industrial equipment, supplies and related services under separate contractual arrangements. Revenue is recognized when, or as, control of promised goods or services transfers to customers in an amount that reflects the consideration to which Canon expects to be entitled in exchange for transferring these goods or services. For further information, please refer to Note 15. (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 ¥58,729 million, ¥61,207 million and ¥58,707 million for the years ended December 31, 2018, 2017 and 2016, respectively. (t) Shipping and Handling Costs Shipping and handling costs totaled ¥54,844 million, ¥52,953 million and ¥44,296 million for the years ended December 31, 2018, 2017 and 2016, 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) Recent Accounting Guidance Recently adopted accounting guidance In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Section C – Background Information and Basis for Conclusions, which is a new accounting standard related to revenue from contracts with customers, as amended. (Accounting Standards Codification (“ASC”) 606) 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. Canon adopted this standard from the quarter beginning January 1, 2018 with modified retrospective method of adoption to contracts that were not completed as of the adoption. The cumulative-effects to the retained earnings and the impact on the consolidated result of operations for the year ended December 31, 2018 from the adoption of this standard were not material. For further information, please refer to Note 15. In January 2016, the FASB issued ASU No. 2016-01, 825-10): available-for-sale In October 2016, the FASB issued ASU No. 2016-16, In March 2017, the FASB issued ASU No. 2017-07, Recently issued accounting guidance not yet adopted In February 2016, the FASB issued ASU No. 2016-02, In August 2017, the FASB issued ASU No. 2017-12, |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 2. Investments The cost, gross unrealized holding gains, gross unrealized holding losses and fair value for available-for-sale December 31, 2018 Cost Gross Gross Fair (Millions of yen) Current: Corporate bonds 630 — — 630 630 — — 630 December 31, 2017 Cost Gross Gross Fair (Millions of yen) Current: Corporate bonds 1,222 — — 1,222 1,222 — — 1,222 Noncurrent: Government bonds 305 — 16 289 Corporate bonds 640 182 — 822 Fund trusts* 122 2 — 124 Equity securities* 10,965 11,612 1,676 20,901 12,032 11,796 1,692 22,136 * After the adoption of ASU No. 2016-01, Maturities of available-for-sale Cost Fair value (Millions of yen) Due within one year 630 630 630 630 The unrealized and realized gains and losses related to debt securities were not significant for the years ended December 31, 2018, 2017 and 2016, respectively. The unrealized and realized gains and losses related to equity securities for the year ended December 31, 2018 are as follows: Millions of yen Year ended December 31, 2018 Net gains and (losses) recognized during the period on equity securities (6,092 ) Less: Net gains and (losses) recognized during the period on equity securities sold during the period 675 Unrealized gains and (losses) recognized during the period on equity securities still held at December 31. (6,767 ) Gross realized gains related to equity securities were ¥18,514 million and ¥750 million for the years ended December 31, 2017 and 2016, respectively. Gross realized losses, including write-downs for impairments that were other-than-temporary, were ¥42 million and ¥1,032 million for the years ended December 31, 2017, 2016, respectively. During the year ended December 31, 2017, Canon contributed certain marketable equity securities, not including those of its subsidiaries and affiliated companies, to an established employee retirement benefit trust, with no cash proceeds there on. The fair value of those securities at the time of contribution was ¥30,473 million. Upon contribution of those available-for-sale The carrying amount of non-marketable non-marketable Time deposits with original maturities of more than three months are ¥326 million and ¥743 million at December 31, 2018 and 2017, respectively, and are included in short-term investments in the accompanying consolidated balance sheets. Investments in affiliated companies accounted for by the equity method amounted to ¥21,312 million and ¥20,496 million at December 31, 2018 and 2017, respectively. Canon’s share of the net earnings in affiliated companies accounted for by the equity method, included in other income (deductions), were earnings of ¥1,414 million, ¥1,196 million and ¥890 million for the years ended December 31, 2018, 2017 and 2016 respectively. |
Trade Receivables
Trade Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Trade Receivables | Trade receivables are summarized as follows: December 31 2018 2017 (Millions of yen) Notes 29,878 37,077 Accounts 594,552 627,173 624,430 664,250 Less allowance for doubtful receivables (11,477 ) (13,378 ) 612,953 650,872 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories are summarized as follows: December 31 2018 2017 (Millions of yen) Finished goods 393,820 377,632 Work in process 165,003 144,251 Raw materials 52,458 48,150 611,281 570,033 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
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 2018 2017 (Millions of yen) Land 272,443 274,551 Buildings 1,629,927 1,638,202 Machinery and equipment 1,793,499 1,804,982 Construction in progress 67,045 46,940 3,762,914 3,764,675 Less accumulated depreciation (2,671,922 ) (2,638,055 ) 1,090,992 1,126,620 Depreciation expenses for the years ended December 31, 2018, 2017 and 2016 were ¥175,771 million, ¥189,712 million and ¥199,133 million, respectively. Amounts due for purchases of property, plant and equipment were ¥32,433 million and ¥23,432 million at December 31, 2018 and 2017, 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, 2018 | |
Leases [Abstract] | |
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. These receivables typically have terms ranging from 1 year to 7 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 2018 2017 (Millions of yen) Total minimum lease payments receivable 351,198 361,686 Unguaranteed residual values 12,661 15,055 Executory costs (2,112 ) (2,216 ) Unearned income (31,007 ) (32,286 ) 330,740 342,239 Less allowance for credit losses (2,675 ) (2,681 ) 328,065 339,558 Less current portion (111,629 ) (120,186 ) 216,436 219,372 The activity in the allowance for credit losses is as follows: Years ended December 31 2018 2017 (Millions of yen) Balance at beginning of year 2,681 2,325 Charge-offs (1,284 ) (1,523 ) Provision 938 1,436 Translation adjustments and other 340 443 Balance at end of year 2,675 2,681 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, 2018 and 2017 are not significant. The cost of equipment leased to customers under operating leases included in property, plant and equipment, net at December 31, 2018 and 2017 was ¥120,457 million and ¥103,078 million, respectively. Accumulated depreciation on equipment under operating leases at December 31, 2018 and 2017 was ¥82,698 million and ¥78,307 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, 2018. Financing leases Operating leases (Millions of yen) Year ending December 31: 2019 127,068 9,207 2020 98,772 6,409 2021 66,719 2,917 2022 37,181 1,202 2023 14,792 317 Thereafter 6,666 60 351,198 20,112 Canon has a syndication arrangement to sell its entire interests in finance receivables to a third-party financial institution. The transactions under the arrangement are accounted for as sales in accordance with ASC 860 “Transfers and Servicing.” The finance receivables sold and derecognized from its consolidated balance sheet was ¥21,909 million during the year ended December 31, 2018 and the amount remained uncollected was ¥22,956 million as of December 31, 2018. This amount includes uncollected finance receivables which were sold before 2018. Cash proceeds from the transaction are included in other, net under the cash flow from operating activities in the consolidated statement of cash flows. Canon continues to provide collection and administrative services for the financial institution. The amount associated with the servicing liability measured at fair value was not material as of December 31, 2018. Canon also retains limited recourse obligations which cover credit defaults. The recourse obligation was not material as of December 31, 2018. There were no significant transfers of finance receivables for the years ended December 31, 2017 and 2016. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions On March 17, 2016, Canon entered into a Shares and Other Securities Transfer Agreement with Toshiba Corporation and acquired the share options for consideration of cash to acquire all the ordinary shares of Toshiba Medical Systems Corporation which was renamed as Canon Medical Systems Corporation (“CMSC”), as of January 4, 2018, which was exercisable upon the clearances of necessary competition regulatory authorities. As such clearances were obtained, Canon exercised the share options and acquired all the ordinary shares of CMSC on December 19, 2016. The acquisition date was December 19, 2016 and the purchase price was ¥665,498 million, which approximates the fair value at that date. The acquisition was accounted for using the acquisition method of accounting. Acquisition-related costs were expensed as incurred and were not material. Under Phase V of the Excellent Global Corporation Plan, a five-year initiative that Canon has been implementing since 2016, “embracing the challenge of new growth through a grand strategic transformation” has been set as a basic policy. With regard to “strengthening and growing new businesses, and creating future businesses,” a particularly important strategy, Canon intends to develop medical system business within the realm of “safety and security,” as a next-generation pillar of growth. CMSC is one of the leading global companies in the medical equipment industry. Within the field of medical X-ray The purchase price allocation was based on estimated fair values of the assets acquired and liabilities assumed at acquisition date. Since the acquisition date of CMSC was near the balance sheet date in 2016, and CMSC is composed of various entities located around the world, the purchase price allocation was preliminary at December 31, 2016. The purchase price allocation was finalized in the fourth quarter of 2017. The certain underlying inputs for inventories and intangible assets have been updated during the measurement period. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at acquisition date. Preliminary Measurement Period Adjustment Final (Millions of yen) Cash and cash equivalents 25,301 — 25,301 Other current assets 169,545 (1,962 ) 167,583 Intangible assets 227,500 627 228,127 Other noncurrent assets 42,975 — 42,975 Total assets acquired 465,321 (1,335 ) 463,986 Current liabilities 199,223 (877 ) 198,346 Noncurrent liabilities 92,231 (1,049 ) 91,182 Total liabilities assumed 291,454 (1,926 ) 289,528 Noncontrolling interest 1,047 — 1,047 Net identifiable assets acquired 172,820 591 173,411 Goodwill 492,678 (591 ) 492,087 Net assets acquired 665,498 — 665,498 Intangible assets acquired, which are subject to amortization, mainly consist of customer relationships of ¥143,600 million, and patents and developed technology of ¥73,000 million. Canon has estimated the amortization period for the customer relationships, and patents and developed technology to be 15 years and 10 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 CMSC and Canon, such as accelerating entry into new fields, further improvement in quality through shared production technology and expanding business domains through the enhancement of R&D capabilities. None of the goodwill is expected to be deductible for tax purposes. Canon acquired businesses other than that described above during the years ended December 31, 2018 and 2017 that were not material to its consolidated financial statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Intangible assets subject to amortization acquired during the year ended December 31, 2018, including those recorded from businesses acquired, totaled ¥48,004 million, which primarily consist of software of ¥36,859 million, and patent and developed technology of ¥6,109 million. The weighted average amortization periods for intangible assets in total acquired during the year ended December 31, 2018 are approximately 6 years. The weighted average amortization periods for software, and patent and developed technology acquired during the year ended December 31, 2018 are approximately 5 years and 11 years, respectively. Intangible assets subject to amortization acquired during the year ended December 31, 2017, including those recorded from businesses acquired, totaled ¥35,112 million, which primarily consist of software of ¥33,437 million and customer relationships of ¥1,203 million. The weighted average amortization periods for intangible assets in total acquired during the year ended December 31, 2017 are approximately 5 years. The weighted average amortization periods for software and customer relationships acquired during the year ended December 31, 2017 are approximately 5 years and 8 years, respectively. The components of intangible assets subject to amortization at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Gross Accumulated Gross Accumulated (Millions of yen) Software 362,130 244,188 342,322 217,654 Customer relationships 156,679 27,263 162,832 22,463 Patents and developed technology 123,831 36,029 121,886 27,085 Trademarks 44,449 12,062 48,823 9,890 License fees 16,071 6,461 13,565 6,375 Other 19,319 9,859 18,592 8,136 722,479 335,862 708,020 291,603 Aggregate amortization expense for the years ended December 31, 2018, 2017 and 2016 was ¥75,783 million, ¥72,169 million and ¥50,963 million, respectively. Estimated amortization expense for intangible assets currently held for the next five years ending December 31 is ¥68,730 million in 2019, ¥54,115 million in 2020, ¥46,067 million in 2021, ¥37,158 million in 2022, and ¥31,202 million in 2023. Intangible assets not subject to amortization other than goodwill at December 31, 2018 and 2017 were not significant. 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, 2018 and 2017 were as follows: Year ended December 31, 2018 Office Imaging Medical Industry Unallocated Total (Millions of yen) Goodwill – gross 135,125 52,561 499,915 283,577 — 971,178 Accumulated impairment losses (22,069 ) — — (12,387 ) — (34,456 ) Balance at beginning of year 113,056 52,561 499,915 271,190 — 936,722 Goodwill acquired during the year — — 1,521 6,106 — 7,627 Translation adjustments and other (5,966 ) (3,891 ) (540 ) (25,441 ) — (35,838 ) Goodwill – gross 127,860 48,670 500,896 263,513 — 940,939 Accumulated impairment losses (20,770 ) — — (11,658 ) — (32,428 ) Balance at end of year 107,090 48,670 500,896 251,855 — 908,511 Year ended December 31, 2017 Office Imaging Medical Industry Unallocated *1 Total (Millions of yen) Balance at beginning of year *3 124,993 49,034 — 269,719 492,678 936,424 Goodwill acquired during the year 857 236 — 2,394 — 3,487 Transfer *1 — — 499,855 (7,177 ) (492,678 ) — Impairment loss *2, 3 (21,721 ) — — (12,191 ) — (33,912 ) Translation adjustments and other *3 8,927 3,291 60 18,445 — 30,723 Balance at end of year 113,056 52,561 499,915 271,190 — 936,722 *1 Canon did not complete the allocation of goodwill to the segments for impairment testing which was attributable to the acquisition of CMSC as of December 31, 2016. Based on the realignment of Canon’s internal reporting and management structure, Canon newly established Medical System Business Unit effective at the beginning of the second quarter of 2017. Goodwill related to CMSC as well as goodwill related to certain medical business which was previously included in Industry and Others Business Unit have been transferred to Medical System Business Unit. *2 After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit’s fair value. *3 Based on the realignment of Canon’s internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. |
Short-Term Loans and Long-Term
Short-Term Loans and Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
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, 2018 and 2017 were ¥35,887 million and ¥33,398 million, respectively. The weighted average interest rate on short-term borrowings outstanding at December 31, 2018 and 2017 were 0.43% and 0.52%, respectively. Long-term debt consisted of the following: December 31 2018 2017 (Millions of yen) Loan from the banks; bearing interest of 0.07% at December 31, 2018 and 0.06% at December 31, 2017 *1 360,000 490,000 Other debt *2 4,602 9,168 364,602 499,168 Less current portion (2,640 ) (5,930 ) 361,962 493,238 *1 Canon entered into the unsecured revolving credit facility contracts expiring in December 2021. Canon prepaid ¥130,000 million of the loan with cash flows generated during the year ended December 31, 2018. The outstanding loans under the credit facilities are ¥360,000 million at a floating interest of 0.07% and Canon has no unused credit facilities as of December 31, 2018. *2 The other debt consisted of term-loans and capital lease obligations as of December 31, 2018 and 2017. The aggregate annual maturities of long-term debt outstanding at December 31, 2018 were as follows: (Millions of yen) Year ending December 31: 2019 2,640 2020 638 2021 360,805 2022 427 2023 82 Thereafter 10 364,602 Both short-term and long-term bank loans are primarily 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, 2018 | |
Payables and Accruals [Abstract] | |
Trade Payables | 10. Trade Payables Trade payables are summarized as follows: December 31 2018 2017 (Millions of yen) Notes 68,140 81,002 Accounts 284,349 299,652 352,489 380,654 |
Employee Retirement and Severan
Employee Retirement and Severance Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
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. CMSC temporarily participated in Toshiba Corporate Pension Funds (“Toshiba Funds”) after CMSC was acquired by Canon in 2016. In April 2018, CMSC established a new pension provision which provides participants an equivalent level of benefits as compared to the Toshiba Funds. As of December 31, 2018, a majority of plan participants have been transferred from the Toshiba Funds into the new pension provision. Participants who have not transferred are still part of Toshiba Funds as of December 31, 2018. Canon calculated the projected benefit obligations for the participants with Toshiba Funds based on the benefit level of Toshiba Funds and included the proportional share of the plan assets of CMSC to which they have legal right in the following tables. 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 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year 929,630 906,007 423,579 392,086 Service cost 31,241 30,889 7,982 6,962 Interest cost 5,419 5,689 8,691 8,691 Plan participants’ contributions — — 1,535 1,644 Actuarial (gain) loss (1,844 ) 11,112 (24,297 ) (1,760 ) Benefits paid (33,477 ) (29,020 ) (10,135 ) (7,884 ) Acquisition — 4,239 — — Plan amendments (3,963 ) 1,149 3,257 (1,069 ) Curtailments and settlements — (435 ) (1,149 ) — Foreign currency exchange rate changes — — (23,514 ) 24,909 Projected benefit obligations at end of year 927,006 929,630 385,949 423,579 Change in plan assets: Fair value of plan assets at beginning of year 735,513 667,436 254,020 224,939 Actual return on plan assets (38,010 ) 47,376 (6,042 ) 14,262 Employer contributions 12,651 43,468 22,393 7,160 Plan participants’ contributions — — 1,535 1,644 Benefits paid (27,459 ) (23,967 ) (10,135 ) (7,884 ) Acquisition — 1,223 — — Settlements — (23 ) (1,150 ) — Foreign currency exchange rate changes — — (11,979 ) 13,899 Fair value of plan assets at end of year 682,695 735,513 248,642 254,020 Funded status at end of year (244,311 ) (194,117 ) (137,307 ) (169,559 ) Employer contributions for the year ended December 31, 2017 include contribution of equity securities to a retirement benefit trust. The fair value of those securities at the time of contribution was ¥30,473 million. Amounts recognized in the consolidated balance sheets at December 31, 2018 and 2017 are as follows: Japanese plans Foreign plans December 31 December 31 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Other assets 1,536 1,695 1,306 1,215 Accrued expenses (679 ) — (992 ) (1,004 ) Accrued pension and severance cost (245,168 ) (195,812 ) (137,621 ) (169,770 ) (244,311 ) (194,117 ) (137,307 ) (169,559 ) Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2018 and 2017 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Actuarial loss 267,355 221,106 95,121 105,883 Prior service credit (48,392 ) (57,430 ) (227 ) (3,638 ) 218,963 163,676 94,894 102,245 The accumulated benefit obligation for all defined benefit plans was as follows: Japanese plans Foreign plans December 31 December 31 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Accumulated benefit obligation 893,154 894,329 371,653 402,390 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 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations 918,736 924,536 384,167 420,383 Fair value of plan assets 672,889 728,724 245,554 249,609 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations 891,204 889,652 369,215 394,840 Fair value of plan assets 670,826 728,724 244,826 245,247 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, 2018, 2017 and 2016 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2018 2017 2016 2018 2017 2016 (Millions of yen) (Millions of yen) Service cost 31,241 30,889 29,367 7,982 6,962 6,816 Interest cost 5,419 5,689 8,238 8,691 8,691 8,792 Expected return on plan assets (21,983 ) (20,493 ) (19,443 ) (12,601 ) (10,722 ) (10,012 ) Amortization of prior service credit (13,001 ) (12,860 ) (13,230 ) (217 ) (83 ) 85 Amortization of actuarial loss 11,900 14,220 10,944 5,108 5,747 2,185 (Gain) loss on curtailments and settlements — (63 ) — — — — 13,576 17,382 15,876 8,963 10,595 7,866 Service cost component of net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans is included in cost of sales and operating expenses in the consolidated statements of income. The components other than the service cost component are included in other, net of other income (deductions) in the consolidated statements of income. Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2018 2017 2016 2018 2017 2016 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss 58,149 (15,771 ) 53,076 (5,654 ) (5,300 ) 47,365 Current year prior service credit (3,963 ) 1,149 (4,734 ) 3,257 (1,069 ) — Amortization of actuarial loss (11,900 ) (14,220 ) (10,944 ) (5,108 ) (5,747 ) (2,185 ) Amortization of prior service credit 13,001 12,860 13,230 217 83 (85 ) Curtailments and settlements — 19 — (63 ) — — 55,287 (15,963 ) 50,628 (7,351 ) (12,033 ) 45,095 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 (11,887 ) (57 ) Actuarial loss 15,230 4,852 Assumptions Weighted-average assumptions used to determine benefit obligations are as follows: Japanese plans Foreign plans December 31 December 31 2018 2017 2018 2017 Discount rate 0.6 % 0.6 % 2.4 % 2.2 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 1.9 % 1.8 % 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 2018 2017 2016 2018 2017 2016 Discount rate 0.6 % 0.7 % 1.1 % 2.2 % 2.2 % 3.0 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 3.0 % 1.8 % 2.1 % 2.0 % Expected long-term rate of return on plan assets 2.9 % 3.1 % 3.1 % 4.4 % 4.2 % 4.4 % 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 Canon’s model portfolio for Japanese plans consists of three major components: approximately 25% is invested in equity securities, approximately 50% 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 25% is invested in debt securities, and approximately 40% 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 21. The fair values of Canon’s pension plan assets at December 31, 2018 and 2017, by asset category, are as follows: December 31, 2018 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) 67,283 — — 67,283 — — — — Foreign companies 5,451 — — 5,451 8,567 — — 8,567 Pooled funds (b) — 137,712 — 137,712 — 49,312 — 49,312 Debt securities: Government bonds (c) 137,858 — — 137,858 — — — — Municipal bonds — 1,483 — 1,483 — 2,642 — 2,642 Corporate bonds — 12,595 — 12,595 — 6,318 — 6,318 Pooled funds (d) — 140,712 — 140,712 — 59,419 — 59,419 Mortgage backed securities (and other asset backed securities) — 8,489 — 8,489 — — — — Life insurance company general accounts — 123,747 — 123,747 — 9,019 — 9,019 Other assets — 30,009 1,451 31,460 — 95,844 — 95,844 Investment measured at net asset value — — — 15,905 — — — 17,521 210,592 454,747 1,451 682,695 8,567 222,554 — 248,642 December 31, 2017 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) 83,765 — — 83,765 — — — — Foreign companies 8,261 — — 8,261 32,240 — — 32,240 Pooled funds (f) — 164,946 — 164,946 — 73,968 — 73,968 Debt securities: Government bonds (g) 138,092 — — 138,092 9,343 — — 9,343 Municipal bonds — 1,166 — 1,166 — 2,901 — 2,901 Corporate bonds — 15,246 — 15,246 — 22,045 — 22,045 Pooled funds (h) — 130,507 — 130,507 — 25,821 — 25,821 Mortgage backed securities (and other asset backed securities) — 8,076 — 8,076 — 3 — 3 Life insurance company general accounts — 126,985 — 126,985 — 8,683 — 8,683 Other assets — 43,070 — 43,070 — 73,320 — 73,320 Investment measured at net asset value — — — 15,399 — — — 5,696 230,118 489,996 — 735,513 41,583 206,741 — 254,020 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥147 million. (b) These funds invest in listed equity securities consisting of approximately 30% Japanese companies and 70% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (c) This class includes approximately 90% Japanese government bonds and 10% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (d) These funds invest in approximately 30% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 35% foreign government bonds and 65% 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 ¥381 million. (f) These funds invest in listed equity securities consisting of approximately 30% Japanese companies and 70% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (g) This class includes approximately 90% Japanese government bonds and 10% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (h) These funds invest in approximately 30% Japanese government bonds, 45% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 70% foreign government bonds and 30% 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, investments in life insurance company general accounts and other assets. 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. Other assets are comprised principally of interest bearing cash and hedge funds. The fair value of Level 3 asset, consisting of hedge funds, was ¥1,451 million at December 31, 2018. Amounts of actual returns on, purchases and sales of these assets during the year ended December 31, 2018 were not significant. The fair values of plan assets for the participants with Toshiba Funds by each asset category are calculated based on a pro-rata Contributions Canon expects to contribute ¥13,089 million to its Japanese defined benefit pension plans and ¥19,311 million to its foreign defined benefit pension plans for the year ending December 31, 2019. 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: 2019 35,604 12,077 2020 36,896 12,214 2021 38,524 13,221 2022 41,775 13,927 2023 43,119 14,562 2024 – 2028 226,704 87,006 Multiemployer pension plans The amounts of cost recognized for the multiemployer pension plans primarily in the Netherlands for the years ended December 31, 2018, 2017 and 2016 were ¥4,452 million, ¥4,165 million and ¥3,482 million, respectively. The multiemployer pension plan in which the subsidiaries in the Netherlands participated was 102% funded as of December 31, 2017. 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, 2018, 2017 and 2016 were ¥19,570 million, ¥18,979 million and ¥17,603 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Domestic and foreign components of income before income taxes and the current and deferred income tax expense attributable to such income are summarized as follows: Year ended December 31, 2018 Japanese Foreign Total (Millions of yen) Income before income taxes 241,474 121,418 362,892 Income taxes: Current 75,556 32,443 107,999 Deferred (6,552 ) (5,297 ) (11,849 ) 69,004 27,146 96,150 Year ended December 31, 2017 Japanese Foreign Total (Millions of yen) Income before income taxes 276,149 77,735 353,884 Income taxes: Current 80,225 35,402 115,627 Deferred (7,453 ) (10,150 ) (17,603 ) 72,772 25,252 98,024 Year ended December 31, 2016 Japanese Foreign Total (Millions of yen) Income before income taxes 135,131 109,520 244,651 Income taxes: Current 47,687 27,806 75,493 Deferred 4,126 3,062 7,188 51,813 30,868 82,681 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 31%, 31% and 33% for the years ended December 31, 2018, 2017 and 2016, respectively. The statutory income tax rate utilized for deferred tax assets and liabilities which are expected to be settled or realized in the future period is approximately 31%. The adjustments of deferred tax assets and liabilities for amendments to the Japanese tax regulations enacted on March 29, 2016 which have been reflected in income taxes in the consolidated statements of income for the years ended December 31, 2016 were ¥3,498 million. The United States enacted tax reform legislation (the “Tax Reform Legislation”) on December 22, 2017. Due to the Tax Reform Legislation, the federal corporate income tax rate in the U.S. is reduced from 35% to 21% from the fiscal year commencing on January 1, 2018. The adjustment to deferred tax assets and liabilities for the tax rate change was tax benefit of ¥14,563 million for the year ended December 31, 2017. The impacts related to other changes from the Tax Reform Legislation are not material. 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 2018 2017 2016 Japanese statutory income tax rate 31.0 % 31.0 % 33.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes * 0.7 3.7 0.8 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (3.0 ) (2.1 ) (3.0 ) Tax credit for research and development expenses (3.4 ) (4.8 ) (3.0 ) Change in valuation allowance 0.4 1.7 (0.8 ) Effect of enacted changes in tax laws and rates on Japanese tax — — 1.4 Effect of enacted changes in U.S. tax laws — (3.6 ) — Other 0.8 1.8 5.4 Effective income tax rate 26.5 % 27.7 % 33.8 % * Expenses not deductible for tax purposes for the year ended December 31, 2017 primarily consist of impairment losses on goodwill. Net deferred income tax assets and liabilities are included in the accompanying consolidated balance sheets under the following captions: December 31 2018 2017 (Millions of yen) Other assets 160,541 150,854 Other noncurrent liabilities (70,336 ) (90,010 ) 90,205 60,844 The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below: December 31 2018 2017 (Millions of yen) Deferred tax assets: Inventories 10,739 11,921 Accrued business tax 2,361 4,705 Accrued pension and severance cost 105,933 98,114 Research and development – costs capitalized for tax purposes 4,690 5,383 Property, plant and equipment 33,738 33,488 Accrued expenses 28,015 30,126 Net operating losses carried forward 28,549 29,006 Other 38,683 38,526 252,708 251,269 Less valuation allowance (30,734 ) (30,783 ) Total deferred tax assets 221,974 220,486 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (7,615 ) (9,859 ) Tax deductible reserve (4,050 ) (4,396 ) Financing lease revenue (26,441 ) (38,287 ) Intangible assets (66,189 ) (74,377 ) Other (27,474 ) (32,723 ) Total deferred tax liabilities (131,769 ) (159,642 ) Net deferred tax assets 90,205 60,844 The net changes in the total valuation allowance were a decrease of ¥49 million, an increase of ¥4,096 million and a decrease of ¥6,244 million for the years ended December 31, 2018, 2017 and 2016, respectively. Based on 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 valuation allowance, at December 31, 2018. At December 31, 2018, Canon had net operating losses which can be carried forward for income tax purposes of ¥186,114 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 5,854 After one year through five years 26,802 After five years through ten years 38,687 After ten years through twenty years 48,642 Indefinite period 66,129 Total 186,114 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 ¥27,278 million for a portion of undistributed earnings of foreign subsidiaries of ¥1,001,310 million as of December 31, 2018 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. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended December 31 2018 2017 2016 (Millions of yen) Balance at beginning of year 10,282 7,318 6,056 Additions for tax positions of the current year 45 2,956 2,741 Additions for tax positions of prior years 178 250 — Reductions for tax positions of prior years (17 ) (915 ) (665 ) Settlements with tax authorities (1,286 ) — (370 ) Other (553 ) 673 (444 ) Balance at end of year* 8,649 10,282 7,318 * The total amounts of unrecognized tax benefits presented in other noncurrent liabilities in the consolidated balance sheets were offset by deferred tax assets in the amount of ¥2,043 million, ¥124 million and ¥32 million as of December 31, 2018, 2017 and 2016. The total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized, were ¥8,649 million and ¥10,282 million at December 31, 2018 and 2017, respectively. Although Canon believes its estimates and assumptions of unrecognized tax benefits are reasonable, uncertainty regarding the final determination of tax examination 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, 2018, 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, 2018 and 2017, and interest and penalties included in income taxes for the years ended December 31, 2018, 2017 and 2016 were 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 2017 with few exceptions. Canon is also no longer subject to a transfer pricing examination by the tax authority for years before 2017 with few exceptions. 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 2009 with few exceptions. The tax authorities are currently conducting income tax examinations of Canon’s income tax returns for years after 2008 in some foreign tax jurisdictions. |
Legal Reserve and Retained Earn
Legal Reserve and Retained Earnings | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
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 paid-in Cash dividends and appropriations to the legal reserve charged to retained earnings for the years ended December 31, 2018, 2017 and 2016 represent dividends paid out during those years and the related appropriations to the legal reserve. Retained earnings at December 31, 2018 did not reflect current year-end 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 ¥984,692 million at December 31, 2018. Retained earnings at December 31, 2018 included Canon’s equity in undistributed earnings of affiliated companies accounted for by the equity method in the amount of ¥18,265 million. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | 14. Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016 are as follows: Foreign Unrealized Gains and Pension Total (Millions of yen) Balance at December 31, 2015 87,038 14,055 182 (131,017 ) (29,742 ) Equity transactions with noncontrolling interests and other 259 — — (1 ) 258 Other comprehensive income (loss) before reclassifications (101,350 ) 814 938 (67,511 ) (167,109 ) Amounts reclassified from accumulated other comprehensive income (loss) 93 382 (3,862 ) 99 (3,288 ) Net change during the year (100,998 ) 1,196 (2,924 ) (67,413 ) (170,139 ) Balance at December 31, 2016 (13,960 ) 15,251 (2,742 ) (198,430 ) (199,881 ) Equity transactions with noncontrolling interests and other — — — — — Other comprehensive income (loss) before reclassifications 44,184 2,813 (1,452 ) 14,785 60,330 Amounts reclassified from accumulated other comprehensive income (loss) (16 ) (12,580 ) 4,014 4,905 (3,677 ) Net change during the year 44,168 (9,767 ) 2,562 19,690 56,653 Balance at December 31, 2017 30,208 5,484 (180 ) (178,740 ) (143,228 ) Cumulative effects of accounting standard update – adoption of ASU No. 2016-01 * — (5,343 ) — — (5,343 ) Equity transactions with noncontrolling interests and other (4,200 ) — — — (4,200 ) Other comprehensive income (loss) before reclassifications (89,823 ) — (457 ) (29,909 ) (120,189 ) Amounts reclassified from accumulated other comprehensive income (loss) — (141 ) 945 3,085 3,889 Net change during the year (94,023 ) (5,484 ) 488 (26,824 ) (125,843 ) Balance at December 31, 2018 (63,815 ) — 308 (205,564 ) (269,071 ) * Represents the impact of adopting the new accounting standard related to financial instruments. Please refer to Note 1(w) for more detailed information. Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016 are as follows: Amount reclassified from Year ended Year ended Year ended Affected line items in consolidated statements of income (Millions of yen) Foreign currency translation adjustments — (39 ) 139 Other, net — 12 (46 ) Income taxes — (27 ) 93 Consolidated net income — 11 — Net income attributable to noncontrolling interests — (16 ) 93 Net income attributable to Canon Inc. Unrealized gains and losses on securities (178 ) (18,472 ) 282 Other, net 37 5,727 (94 ) Income taxes (141 ) (12,745 ) 188 Consolidated net income — 165 194 Net income attributable to noncontrolling interests (141 ) (12,580 ) 382 Net income attributable to Canon Inc. Gains and losses on derivative instruments 1,341 5,772 (5,890 ) Other, net (392 ) (1,732 ) 2,049 Income taxes 949 4,040 (3,841 ) Consolidated net income (4 ) (26 ) (21 ) Net income attributable to noncontrolling interests 945 4,014 (3,862 ) Net income attributable to Canon Inc. Pension liability adjustments 3,853 7,005 (16 ) Other, net (699 ) (1,832 ) 164 Income taxes 3,154 5,173 148 Consolidated net income (69 ) (268 ) (49 ) Net income attributable to noncontrolling interests 3,085 4,905 99 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling interests 3,889 (3,677 ) (3,288 ) *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) 2018: Foreign currency translation adjustments Amount arising during the year (93,955 ) 809 (93,146 ) Reclassification adjustments for gains and losses realized in net income — — — Net change during the year (93,955 ) 809 (93,146 ) Net unrealized gains and losses on securities: Amount arising during the year — — — Reclassification adjustments for gains and losses realized in net income (178 ) 37 (141 ) Net change during the year (178 ) 37 (141 ) Net gains and losses on derivative instruments: Amount arising during the year (586 ) 125 (461 ) Reclassification adjustments for gains and losses realized in net income 1,341 (392 ) 949 Net change during the year 755 (267 ) 488 Pension liability adjustments: Amount arising during the year (51,789 ) 18,065 (33,724 ) Reclassification adjustments for gains and losses realized in net income 3,853 (699 ) 3,154 Net change during the year (47,936 ) 17,366 (30,570 ) Other comprehensive income (loss) (141,314 ) 17,945 (123,369 ) 2017: Foreign currency translation adjustments Amount arising during the year 47,825 (708 ) 47,117 Reclassification adjustments for gains and losses realized in net income (39 ) 12 (27 ) Net change during the year 47,786 (696 ) 47,090 Net unrealized gains and losses on securities: Amount arising during the year 5,100 (1,717 ) 3,383 Reclassification adjustments for gains and losses realized in net income (18,472 ) 5,727 (12,745 ) Net change during the year (13,372 ) 4,010 (9,362 ) Net gains and losses on derivative instruments: Amount arising during the year (2,080 ) 628 (1,452 ) Reclassification adjustments for gains and losses realized in net income 5,772 (1,732 ) 4,040 Net change during the year 3,692 (1,104 ) 2,588 Pension liability adjustments: Amount arising during the year 20,991 (4,957 ) 16,034 Reclassification adjustments for gains and losses realized in net income 7,005 (1,832 ) 5,173 Net change during the year 27,996 (6,789 ) 21,207 Other comprehensive income (loss) 66,102 (4,579 ) 61,523 2016: Foreign currency translation adjustments Amount arising during the year (108,280 ) 521 (107,759 ) Reclassification adjustments for gains and losses realized in net income 139 (46 ) 93 Net change during the year (108,141 ) 475 (107,666 ) Net unrealized gains and losses on securities: Amount arising during the year 1,184 (375 ) 809 Reclassification adjustments for gains and losses realized in net income 282 (94 ) 188 Net change during the year 1,466 (469 ) 997 Net gains and losses on derivative instruments: Amount arising during the year 1,619 (726 ) 893 Reclassification adjustments for gains and losses realized in net income (5,890 ) 2,049 (3,841 ) Net change during the year (4,271 ) 1,323 (2,948 ) Pension liability adjustments: Amount arising during the year (95,707 ) 25,204 (70,503 ) Reclassification adjustments for gains and losses realized in net income (16 ) 164 148 Net change during the year (95,723 ) 25,368 (70,355 ) Other comprehensive income (loss) (206,669 ) 26,697 (179,972 ) |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 15. Revenue 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 the customer obtains controls of these products. Revenue from sales of equipment that are sold with customer acceptance provisions related to their functionality including optical equipment such as semiconductor lithography equipment and FPD lithography equipment, and certain medical equipment such as CT systems and MRI systems, is recognized when the equipment is installed at the customer site and the agreed-upon specifications are objectively satisfied. Most of Canon’s service revenue is generated from office and medical system products which is recognized over time. For the service contracts of office products, the customer typically pays a variable amount based on usage, a stated fixed fee or a stated base fee plus a variable amount which frequently include the provision of consumables as well as break fix activities. The majority portion of service revenue from the office products is recognized as billed since invoiced amount directly correlates with the value to the customer of the underlying performance obligation to date. For the service contracts of medical system products, the customer typically pays a stated fixed fee for the stand ready maintenance service and revenue is recognized ratably over the contract period. The majority of service arrangements for office products are executed in combination with related products. Transaction prices for products and services need to be allocated to each performance obligation on a relative standalone selling price basis where significant judgements are required. Canon estimates the standalone selling price using a range of prices that would meet the allocation objective based on all the information that is reasonably available including market conditions and other observable inputs. If transaction prices of the product or service contracts are not within the acceptable range then the revenue is subject to allocation based on the estimated standalone selling prices. Canon recognizes the incremental costs of obtaining a contract as an expense when related office products are sold. Canon also provides leasing arrangement to the customers primarily for the sales of office products. Approximately 4% of total revenue is generated from these leasing arrangements for the year ended December 31, 2018. Revenue from the sale of these products under sales-type leases is recognized at the inception of the lease. Interest 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 product leases are bundled with maintenance contracts, revenue is allocated based upon the estimated standalone selling prices of the lease and non-lease non-lease The transaction prices that Canon is entitled to receive in exchange for transferring goods or services to the customer include certain forms of variable consideration, including product discounts, customer promotions and volume-based rebates mainly for imaging system products, which are sold predominantly through distributors and retailers. Canon includes estimated amounts in the transaction price only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Variable considerations are estimated based upon historical trends and other known factors at the time of sale, and are subsequently adjusted in each period based on current information. In addition, Canon may provide a right of return on our products for a short time period after a sale. These rights are accounted for as variable consideration when determining the transaction price, and accordingly Canon recognizes revenue based on the estimated amount to which Canon expects to be entitled after considering expected returns. Disaggregated revenue by timing is as follows. Disaggregated revenue by business unit, product and geographic area are described in Note 22. Office Imaging Medical Industry and Others Corporate and Consolidated (Millions of yen) 2018: Revenue recognized at a point in time 1,286,100 993,658 305,457 599,766 (106,318 ) 3,078,663 Revenue recognized over time 521,201 14,507 132,121 205,445 — 873,274 Total 1,807,301 1,008,165 437,578 805,211 (106,318 ) 3,951,937 Revenue recognized over time includes primarily revenue from maintenance service in the office and medical system products and sales of certain industrial equipment which do not have alternative use and for which Canon has enforceable right to payment to the customers for the performance completed to date. The adoption of the new revenue standard required the reconsideration of the scope of performance obligations related to service contracts, which has resulted in a change in classification of revenues between the products and service revenues. Specifically, certain revenue historically classified within products revenues, including consumables provided under the service contracts and certain outsourcing business, is currently classified within service revenues and cost of sales in the consolidated statement of income under the new revenue standard. Canon has started separating revenues and cost of sales into products and services in the consolidated statements of income starting from the quarter beginning January 1, 2018, including prior period’s presentation. However, prior period’s presentation is not retrospectively adjusted and is presented in accordance with the historical accounting policy. In addition, in conjunction with the application of the new standard, Canon has reclassified certain expenses related to service revenues from operating expenses to cost of sales in the accompanying consolidated statement of income. The amount reclassified for the year ended December 31, 2018 was ¥115,700 million. The reconsideration of the scope of performance obligations did not materially affect the timing of revenue recognition. The impacts of adoption of new revenue standard on Canon’s consolidated balance sheet as of December 31, 2018 and the consolidated statement of income for the year ended December 31, 2018 were as follows. Consolidated Balance Sheet December 31, 2018 As Reported Balance under Effect of (Millions of yen) Assets Trade receivables, net 612,953 657,419 (44,466 ) Inventories 611,281 614,243 (2,962 ) Prepaid expenses and other current assets 304,346 253,547 50,799 Other assets 397,974 397,949 25 Total assets 4,899,465 4,896,069 3,396 Liabilities and equity Accrued expenses 321,137 319,416 1,721 Other current liabilities 276,237 274,741 1,496 Total liabilities 1,881,552 1,878,335 3,217 Retained earnings 3,508,908 3,508,704 204 Noncontrolling interests 190,311 190,336 (25 ) Total equity 3,017,913 3,017,734 179 Consolidated Statement of Income For the year ended December 31, 2018 As Reported Amount under Effect of (Millions of yen) Net sales Products and Equipment 3,194,724 3,383,566 (188,842 ) Services 757,213 567,582 189,631 3,951,937 3,951,148 789 Cost of sales Products and Equipment 1,762,171 1,783,798 (21,627 ) Services 354,212 216,513 137,699 2,116,383 2,000,311 116,072 Gross profit 1,835,554 1,950,837 (115,283 ) Selling, general and administrative expenses 1,176,760 1,292,460 (115,700 ) Operating profit 342,952 342,535 417 Income before income taxes 362,892 362,475 417 Income taxes 96,150 96,094 56 Consolidated net income 266,742 266,381 361 Less: Net income attributable to noncontrolling interests 13,987 13,936 51 Net income attributable to Canon Inc. 252,755 252,445 310 Canon recognized contract assets primarily for unbilled receivables mainly arising from services contracts for office products totaled to ¥42,915 million at the adoption date and included in prepaid expenses and other current assets in the consolidated balance sheet with an offsetting impact to trade receivables. Contract assets at December 31, 2018 were ¥50,799 million. Canon typically bills to the customer when performance obligation is satisfied and collects the payment in relatively short term except for certain maintenance service of office and medical products and certain industrial equipment for which Canon occasionally receives the payment in advance from customers. The amount received in excess of revenue recognized is recognized as deferred revenue until the performance obligation for distinct goods or services are satisfied. Deferred revenue at December 31, 2018 and 2017 were ¥123,686 million and ¥125,965 million, respectively, and are included in other current liabilities in the accompanying consolidated balance sheets. Revenue recognized for the year ended December 31, 2018, which had been included in the deferred revenue balance at December 31, 2017, was ¥104,678 million. Remaining performance obligations for products and equipment at December 31, 2018 primarily arise from the sales of certain industrial equipment, amounting to ¥72,708 million, 75% of which is expected to be recognized as revenue within one year and remaining 25% is within two years. Disclosure of remaining performance obligations is not required for the majority of service since the revenue is recognized as billed basis applying the right to invoice practical expedient or is generated from the contracts with original expected duration of less than one year. The portion of fixed maintenance service contract for office and medical products with original expected duration of more than one year is approximately 11% of total service revenue and the average remaining period for these fixed contracts as of December 31, 2018 is about 2 years. Taxes collected from customers and remitted to governmental authorities are excluded from revenues in the consolidated statements of income. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 16. Stock-Based Compensation On May 2, 2018, based on the approval of the shareholders, the Company granted stock options to its directors and executive officers to acquire 74,000 shares of common stock. Those to whom stock acquisition rights are granted (the “Holder(s)”) shall be entitled to exercise all the stock acquisition rights together within 10 days (in case the last day is not a business day, the following business day) from after the date when they cease to hold any position as a director or an executive officer of the Company. These option awards have a 30 year exercisable period. The grant-date fair value per share of the stock options granted during the year ended December 31, 2018 was ¥2,948. 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. The compensation cost recognized for these stock options for the years ended December 31, 2018 was ¥218 million and 2017 and 2016 was nil, and it is included in selling, general and administrative expenses in the consolidated statements of income. The fair value of the option award was estimated on the date of grant using the Black-Sholes option pricing model that incorporates the assumptions presented below: Year ended December 31, 2018 Expected term of option (in years) 6.0 Expected volatility 23.02 % Dividend yield 4.14 % Risk-free interest rate (0.07 %) A summary of option activity under the stock option plans as of and for the years ended December 31, 2018, 2017 and 2016 is presented below: Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2016 1,296,000 4,263 0.4 — Exercised — — Forfeited/Expired (693,000 ) 4,500 Outstanding at December 31, 2016 603,000 3,990 0.2 — Exercised — — Forfeited/Expired (603,000 ) 3,990 Outstanding at December 31, 2017 — — — Granted 74,000 1 Exercised — — Forfeited/Expired — — Outstanding at December 31, 2018 74,000 1 29.3 222 Exercisable at December 31, 2018 74,000 1 29.3 222 The total fair value of shares vested during the years ended December 31, 2018 was ¥218 million and 2017 and 2016 was nil .Cash received from the exercise of stock options for the years ended December 31, 2018, 2017 and 2016 was nil. |
Net Income Attributable to Cano
Net Income Attributable to Canon Inc. Shareholders per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Canon Inc. Shareholders per Share | 17. 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 2018 2017 2016 (Millions of yen) Net income attributable to Canon Inc. 252,755 241,923 150,650 (Number of shares) Average common shares outstanding 1,079,753,008 1,085,439,370 1,092,070,680 Effect of dilutive securities: Stock options 49,319 — — Diluted common shares outstanding 1,079,802,327 1,085,439,370 1,092,070,680 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 234.09 222.88 137.95 Diluted 234.08 222.88 137.95 The computation of diluted net income attributable to Canon Inc. shareholders per share for the years ended December 31, 2017 and 2016 excludes outstanding stock options because the effect would be anti-dilutive. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 18. 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 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 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, 2018 and 2017 are set forth below: December 31 2018 2017 (Millions of yen) To sell foreign currencies 230,505 272,563 To buy foreign currencies 30,816 46,168 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, 2018 and 2017. Derivatives designated as hedging instruments Fair value December 31 Balance sheet location 2018 2017 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 521 255 Liabilities: Foreign exchange contracts Other current liabilities 323 367 Derivatives not designated as hedging instruments Fair value December 31 Balance sheet location 2018 2017 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 2,622 289 Liabilities: Foreign exchange contracts Other current liabilities 443 2,892 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, 2018, 2017 and 2016. 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) 2018: Foreign exchange contracts (586 ) Other, net (1,341 ) Other, net (682 ) 2017: Foreign exchange contracts (2,080 ) Other, net (5,772 ) Other, net (332 ) 2016: Foreign exchange contracts 1,619 Other, net 5,890 Other, net (311 ) Derivatives not designated as hedging instruments Gain (loss) recognized in income on derivative Years ended December 31 Location 2018 2017 2016 (Millions of yen) Foreign exchange contracts Other, net 5,284 (7,932 ) 7,018 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 19. Commitments and Contingent Liabilities Commitments At December 31, 2018, commitments outstanding for the purchase of property, plant and equipment approximated ¥54,905 million, and commitments outstanding for the purchase of parts and raw materials approximated ¥120,344 million. Canon occupies sales offices and other facilities under lease arrangements accounted for as operating leases. Deposits made under such arrangements aggregated ¥12,728 million and ¥13,740 million at December 31, 2018 and 2017, respectively, and are included in noncurrent receivables in the accompanying consolidated balance sheets. Rental expenses of cancelable and noncancelable operating leases amounted to ¥49,394 million, ¥47,619 million and ¥42,714 million for the years ended December 31, 2018, 2017 and 2016, 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, 2018 are as follows: (Millions of yen) Year ending December 31: 2019 29,817 2020 23,402 2021 17,837 2022 13,565 2023 10,165 Thereafter 20,298 Total future minimum lease payments 115,084 Guarantees Canon provides guarantees for its employees, affiliates and other companies. The guarantees for the employees are principally made for their housing loans. The guarantees for affiliates and other companies are made for their lease obligations and bank loans to ensure that those companies operate with less financial risk. Canon would have to perform under a guarantee if the borrower defaults on a payment within the contract terms. The contract terms are 1 year to 30 years in case of employees with housing loans, and 1 year to 7 years in case of affiliates and other companies with lease obligations and bank loans. The maximum amount of undiscounted payments Canon would have had to make in the event of default is ¥4,458 million at December 31, 2018. The carrying amounts of the liabilities recognized for Canon’s obligations as a guarantor under those guarantees at December 31, 2018 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, 2018 and 2017 are summarized as follows: Years ended December 31 2018 2017 (Millions of yen) Balance at beginning of year 17,452 13,168 Additions 18,870 18,893 Utilization (14,707 ) (12,957 ) Other (4,297 ) (1,652 ) Balance at end of year 17,318 17,452 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, 2018 | |
Investments, All Other Investments [Abstract] | |
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk | 20. 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, 2018 and 2017 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 21, and Note 18, respectively. December 31 2018 2017 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments (364,602 ) (364,570 ) (499,168 ) (499,126 ) 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 21. 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, 2018 and 2017, one customer accounted for approximately 12% and 8% 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, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 21. 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, 2018 and 2017. December 31, 2018 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 70,500 — 70,500 Short-term investments: Available-for-sale: Corporate bonds 630 — — 630 Investments: Available-for-sale: Government bonds — — — — Corporate bonds — — — — Fund trusts and others 630 408 — 1,038 Equity securities 13,787 — — 13,787 Prepaid expenses and other current assets: Derivatives — 3,143 — 3,143 Total assets 15,047 74,051 — 89,098 Liabilities: Other current liabilities: Derivatives — 766 — 766 Total liabilities — 766 — 766 December 31, 2017 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 70,500 — 70,500 Short-term investments: Available-for-sale: Corporate bonds 1,222 — — 1,222 Investments: Available-for-sale: Government bonds 289 — — 289 Corporate bonds 605 217 — 822 Fund trusts 13 111 — 124 Equity securities 20,901 — — 20,901 Prepaid expenses and other current assets: Derivatives — 544 — 544 Total assets 23,030 71,372 — 94,402 Liabilities: Other current liabilities: Derivatives — 3,259 — 3,259 Total liabilities — 3,259 — 3,259 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. 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. Assets and liabilities measured at fair value on a nonrecurring basis There were no assets or liabilities to be measured at fair value on a nonrecurring basis during the year ended December 31, 2018. The following table presents the Canon’s asset that was measured at fair value on a nonrecurring basis consistent with the fair value hierarchy and related impairment charge recognized during the year ended December 31, 2017. Year ended December 31, 2017 Total loss Fair value Level 1 Level 2 Level 3 Total (Millions of yen) Asset: Goodwill (33,912 ) — — 29,370 29,370 Goodwill was classified as Level 3 items and valued based on an income approach using unobservable inputs. Canon performed the annual goodwill impairment test as of October 1, 2017, which indicated that the fair value of the reporting unit was less than its carrying value. Canon recognized the impairment charge for the amount representing the excess of the carrying amount over the reporting unit’s fair value. The fair value for the reporting unit was measured based on the discounted cash flow method with 6.0% of weighted average cost of capital and estimated future cash flows. Future cash flows are based on management’s estimates of projected revenues, gross profits, operating expenses, a long-term growth rate, taking into consideration industry trends and market conditions. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 22. Segment Information Canon operates its business in four segments: the Office Business Unit, the Imaging System Business Unit, the Medical 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. Based on the realignment of Canon’s internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. Segment information for the year ended December 31, 2018 have reflected this change. Prior period amounts also have been restated. Canon newly established Medical System Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Operating results for the year ended December 31, 2017 have been reclassified and for the year ended December 31, 2016 have not been restated since they have not been material. Total assets as of December 31, 2016 have been restated. The primary products included in each segment are as follows: Office Business Unit: Office multifunction devices (MFDs) / Laser multifunction printers (MFPs) / Laser printers / Digital continuous feed presses / Digital sheet-fed 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 Medical System Business Unit: Digital radiography systems / Diagnostic X-ray Industry and Others Business Unit: Semiconductor lithography equipment / FPD (Flat panel display) lithography 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. While Canon previously disclosed operating profit as segment profit, Canon has newly adopted income before income taxes as segment profit for the year ended December 31, 2018. Due to the increase of other income (deductions) from the adoption of ASU No. 2017-07, Information about operating results and assets for each segment as of and for the years ended December 31, 2018, 2017 and 2016 is as follows: Office Imaging Medical System Industry and Corporate and Consolidated (Millions of yen) 2018: Net sales: External customers 1,804,002 1,007,365 437,305 703,265 — 3,951,937 Intersegment 3,299 800 273 101,946 (106,318 ) — Total 1,807,301 1,008,165 437,578 805,211 (106,318 ) 3,951,937 Operating cost and expenses 1,586,497 891,210 408,739 739,665 (17,126 ) 3,608,985 Operating profit 220,804 116,955 28,839 65,546 (89,192 ) 342,952 Other income (deductions) 8,383 4,299 640 2,061 4,557 19,940 Income before income taxes 229,187 121,254 29,479 67,607 (84,635 ) 362,892 Total assets 923,261 393,004 247,282 383,568 2,952,350 4,899,465 Depreciation and amortization 64,964 40,541 9,365 38,582 98,102 251,554 Capital expenditures 48,127 25,796 7,454 24,091 95,036 200,504 2017: Net sales: External customers 1,802,542 1,135,584 434,985 706,904 — 4,080,015 Intersegment 2,240 604 1,202 85,946 (89,992 ) — Total 1,804,782 1,136,188 436,187 792,850 (89,992 ) 4,080,015 Operating cost and expenses 1,615,521 962,663 414,246 752,122 13,858 3,758,410 Operating profit 189,261 173,525 21,941 40,728 (103,850 ) 321,605 Other income (deductions) 6,108 2,388 564 1,339 21,880 32,279 Income before income taxes 195,369 175,913 22,505 42,067 (81,970 ) 353,884 Total assets 946,213 387,088 238,824 376,064 3,250,102 5,198,291 Depreciation and amortization 72,346 41,695 5,212 39,736 102,892 261,881 Impairment losses on goodwill 21,721 — — 12,191 — 33,912 Capital expenditures 46,769 28,508 8,963 16,620 80,529 181,389 2016: Net sales: External customers 1,743,039 1,094,291 — 564,157 — 3,401,487 Intersegment 2,957 998 — 82,326 (86,281 ) — Total 1,745,996 1,095,289 — 646,483 (86,281 ) 3,401,487 Operating cost and expenses 1,583,588 953,567 — 641,082 6,825 3,185,062 Operating profit 162,408 141,722 — 5,401 (93,106 ) 216,425 Other income (deductions) 7,467 2,691 — 1,658 16,410 28,226 Income before income taxes 169,875 144,413 — 7,059 (76,696 ) 244,651 Total assets 947,602 391,661 204,755 354,602 3,239,909 5,138,529 Depreciation and amortization 76,500 47,386 — 42,872 83,338 250,096 Capital expenditures 71,841 25,564 — 29,694 81,280 208,379 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. Amortization costs of identified intangible assets resulting from the purchase price allocation of CMSC are also included in corporate 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, identified intangible assets from acquisitions and corporate properties. Capital expenditures represent the additions to property, plant and equipment and intangible assets measured on an accrual basis. Information about sales by product to external customers for each segment for the years ended December 31, 2018, 2017 and 2016 is as follows: Years ended December 31 2018 2017 2016 (Millions of yen) Office Monochrome copiers 280,035 287,823 289,532 Color copiers 403,522 405,576 386,193 Printers 702,378 702,491 664,846 Others 418,067 406,652 402,468 Total 1,804,002 1,802,542 1,743,039 Imaging System Cameras 599,578 702,598 666,868 Inkjet printers 318,382 333,721 329,066 Others 89,405 99,265 98,357 Total 1,007,365 1,135,584 1,094,291 Medical System Diagnostic equipment 437,305 434,985 — Industry and Others Lithography equipment 199,722 193,113 121,090 Others 503,543 513,791 443,067 Total 703,265 706,904 564,157 Consolidated 3,951,937 4,080,015 3,401,487 Information by major geographic area as of and for the years ended December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 (Millions of yen) Net sales: Japan 869,577 884,828 706,979 Americas 1,076,402 1,107,515 963,544 Europe 1,015,428 1,028,415 913,523 Asia and Oceania 990,530 1,059,257 817,441 Total 3,951,937 4,080,015 3,401,487 Long-lived assets: Japan 1,046,065 1,081,522 1,163,374 Americas 129,989 141,937 147,129 Europe 169,357 174,889 166,734 Asia and Oceania 136,602 149,244 164,007 Total 1,482,013 1,547,592 1,641,244 Net sales are attributed to areas based on the location where the product is shipped and the service is performed 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 ¥995,245 million, ¥1,022,305 million and ¥884,083 million for the years ended December 31, 2018, 2017 and 2016, respectively. Long-lived |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts Balance at Addition- Deduction Translation and other Balance (Millions of yen) Year ended December 31, 2018: Allowance for doubtful receivables Trade receivables 13,378 1,347 (2,789 ) (459 ) 11,477 Finance receivables 2,681 938 (1,284 ) 340 2,675 Year ended December 31, 2017: Allowance for doubtful receivables Trade receivables 11,075 3,574 (1,787 ) 516 13,378 Finance receivables 2,325 1,436 (1,523 ) 443 2,681 Year ended December 31, 2016: Allowance for doubtful receivables Trade receivables 12,077 1,460 (1,824 ) (638 ) 11,075 Finance receivables 2,878 398 (978 ) 27 2,325 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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 (“U.S. 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 accounts including: 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 net losses of ¥6,044 million, ¥9,775 million and ¥2 million for the years ended December 31, 2018, 2017 and 2016, 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 |
Investments | (g) Investments Investments consist primarily of time deposits with original maturities of more than three months, debt and equity securities and investments in affiliated companies. Canon classifies investments in debt securities as available-for-sale held-to-maturity Available-for-sales available-for-sales Available-for-sale available-for-sale available-for-sale Canon measures non-marketable 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. |
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 net realizable value. Cost is determined by the average method for domestic inventories and principally by the first-in, first-out |
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. 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 recognizes an impairment charge in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 7 years, trademarks are 15 years, patents and developed technology are from 7 years to 17 years, license fees are 7 years, and customer relationships are from 11 years to 15 years, respectively. Certain costs incurred in connection with developing or obtaining internal-use internal-use |
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 |
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, imaging system and medical system products, industrial equipment, supplies and related services under separate contractual arrangements. Revenue is recognized when, or as, control of promised goods or services transfers to customers in an amount that reflects the consideration to which Canon expects to be entitled in exchange for transferring these goods or services. For further information, please refer to Note 15. |
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 ¥58,729 million, ¥61,207 million and ¥58,707 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Shipping and Handling Costs | (t) Shipping and Handling Costs Shipping and handling costs totaled ¥54,844 million, ¥52,953 million and ¥44,296 million for the years ended December 31, 2018, 2017 and 2016, 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. |
Recent Accounting Guidance | (w) Recent Accounting Guidance Recently adopted accounting guidance In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Section C – Background Information and Basis for Conclusions, which is a new accounting standard related to revenue from contracts with customers, as amended. (Accounting Standards Codification (“ASC”) 606) 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. Canon adopted this standard from the quarter beginning January 1, 2018 with modified retrospective method of adoption to contracts that were not completed as of the adoption. The cumulative-effects to the retained earnings and the impact on the consolidated result of operations for the year ended December 31, 2018 from the adoption of this standard were not material. For further information, please refer to Note 15. In January 2016, the FASB issued ASU No. 2016-01, 825-10): available-for-sale In October 2016, the FASB issued ASU No. 2016-16, In March 2017, the FASB issued ASU No. 2017-07, Recently issued accounting guidance not yet adopted In February 2016, the FASB issued ASU No. 2016-02, In August 2017, the FASB issued ASU No. 2017-12, |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-For-Sale Debt Securities and Equity Securities Included in Short-Term Investments and Investments By Major Security Type | The cost, gross unrealized holding gains, gross unrealized holding losses and fair value for available-for-sale December 31, 2018 Cost Gross Gross Fair (Millions of yen) Current: Corporate bonds 630 — — 630 630 — — 630 December 31, 2017 Cost Gross Gross Fair (Millions of yen) Current: Corporate bonds 1,222 — — 1,222 1,222 — — 1,222 Noncurrent: Government bonds 305 — 16 289 Corporate bonds 640 182 — 822 Fund trusts* 122 2 — 124 Equity securities* 10,965 11,612 1,676 20,901 12,032 11,796 1,692 22,136 * After the adoption of ASU No. 2016-01, |
Maturities of Available-For-Sale Debt Securities Included in Short-Term Investments | Maturities of available-for-sale Cost Fair value (Millions of yen) Due within one year 630 630 630 630 |
Schedule of unrealized and Realized Gains and Losses Equity Securities | The unrealized and realized gains and losses related to equity securities for the year ended December 31, 2018 are as follows: Millions of yen Year ended December 31, 2018 Net gains and (losses) recognized during the period on equity securities (6,092 ) Less: Net gains and (losses) recognized during the period on equity securities sold during the period 675 Unrealized gains and (losses) recognized during the period on equity securities still held at December 31. (6,767 ) |
Trade Receivables (Tables)
Trade Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Trade Receivables | Trade receivables are summarized as follows: December 31 2018 2017 (Millions of yen) Notes 29,878 37,077 Accounts 594,552 627,173 624,430 664,250 Less allowance for doubtful receivables (11,477 ) (13,378 ) 612,953 650,872 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: December 31 2018 2017 (Millions of yen) Finished goods 393,820 377,632 Work in process 165,003 144,251 Raw materials 52,458 48,150 611,281 570,033 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment are stated at cost less accumulated depreciation and are summarized as follows: December 31 2018 2017 (Millions of yen) Land 272,443 274,551 Buildings 1,629,927 1,638,202 Machinery and equipment 1,793,499 1,804,982 Construction in progress 67,045 46,940 3,762,914 3,764,675 Less accumulated depreciation (2,671,922 ) (2,638,055 ) 1,090,992 1,126,620 |
Finance Receivables and Opera_2
Finance Receivables and Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Components of Finance Receivables | 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 2018 2017 (Millions of yen) Total minimum lease payments receivable 351,198 361,686 Unguaranteed residual values 12,661 15,055 Executory costs (2,112 ) (2,216 ) Unearned income (31,007 ) (32,286 ) 330,740 342,239 Less allowance for credit losses (2,675 ) (2,681 ) 328,065 339,558 Less current portion (111,629 ) (120,186 ) 216,436 219,372 |
Activity in Allowance for Credit Losses | The activity in the allowance for credit losses is as follows: Years ended December 31 2018 2017 (Millions of yen) Balance at beginning of year 2,681 2,325 Charge-offs (1,284 ) (1,523 ) Provision 938 1,436 Translation adjustments and other 340 443 Balance at end of year 2,675 2,681 |
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, 2018. Financing leases Operating leases (Millions of yen) Year ending December 31: 2019 127,068 9,207 2020 98,772 6,409 2021 66,719 2,917 2022 37,181 1,202 2023 14,792 317 Thereafter 6,666 60 351,198 20,112 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Canon Medical Systems Corporation (CMSC) | |
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. Preliminary Measurement Period Adjustment Final (Millions of yen) Cash and cash equivalents 25,301 — 25,301 Other current assets 169,545 (1,962 ) 167,583 Intangible assets 227,500 627 228,127 Other noncurrent assets 42,975 — 42,975 Total assets acquired 465,321 (1,335 ) 463,986 Current liabilities 199,223 (877 ) 198,346 Noncurrent liabilities 92,231 (1,049 ) 91,182 Total liabilities assumed 291,454 (1,926 ) 289,528 Noncontrolling interest 1,047 — 1,047 Net identifiable assets acquired 172,820 591 173,411 Goodwill 492,678 (591 ) 492,087 Net assets acquired 665,498 — 665,498 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets Subject to Amortization | The components of intangible assets subject to amortization at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Gross Accumulated Gross Accumulated (Millions of yen) Software 362,130 244,188 342,322 217,654 Customer relationships 156,679 27,263 162,832 22,463 Patents and developed technology 123,831 36,029 121,886 27,085 Trademarks 44,449 12,062 48,823 9,890 License fees 16,071 6,461 13,565 6,375 Other 19,319 9,859 18,592 8,136 722,479 335,862 708,020 291,603 |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows: Year ended December 31, 2018 Office Imaging Medical Industry Unallocated Total (Millions of yen) Goodwill – gross 135,125 52,561 499,915 283,577 — 971,178 Accumulated impairment losses (22,069 ) — — (12,387 ) — (34,456 ) Balance at beginning of year 113,056 52,561 499,915 271,190 — 936,722 Goodwill acquired during the year — — 1,521 6,106 — 7,627 Translation adjustments and other (5,966 ) (3,891 ) (540 ) (25,441 ) — (35,838 ) Goodwill – gross 127,860 48,670 500,896 263,513 — 940,939 Accumulated impairment losses (20,770 ) — — (11,658 ) — (32,428 ) Balance at end of year 107,090 48,670 500,896 251,855 — 908,511 Year ended December 31, 2017 Office Imaging Medical Industry Unallocated *1 Total (Millions of yen) Balance at beginning of year *3 124,993 49,034 — 269,719 492,678 936,424 Goodwill acquired during the year 857 236 — 2,394 — 3,487 Transfer *1 — — 499,855 (7,177 ) (492,678 ) — Impairment loss *2, 3 (21,721 ) — — (12,191 ) — (33,912 ) Translation adjustments and other *3 8,927 3,291 60 18,445 — 30,723 Balance at end of year 113,056 52,561 499,915 271,190 — 936,722 *1 Canon did not complete the allocation of goodwill to the segments for impairment testing which was attributable to the acquisition of CMSC as of December 31, 2016. Based on the realignment of Canon’s internal reporting and management structure, Canon newly established Medical System Business Unit effective at the beginning of the second quarter of 2017. Goodwill related to CMSC as well as goodwill related to certain medical business which was previously included in Industry and Others Business Unit have been transferred to Medical System Business Unit. *2 After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit’s fair value. *3 Based on the realignment of Canon’s internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. |
Short-Term Loans and Long-Ter_2
Short-Term Loans and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: December 31 2018 2017 (Millions of yen) Loan from the banks; bearing interest of 0.07% at December 31, 2018 and 0.06% at December 31, 2017 *1 360,000 490,000 Other debt *2 4,602 9,168 364,602 499,168 Less current portion (2,640 ) (5,930 ) 361,962 493,238 *1 Canon entered into the unsecured revolving credit facility contracts expiring in December 2021. Canon prepaid ¥130,000 million of the loan with cash flows generated during the year ended December 31, 2018. The outstanding loans under the credit facilities are ¥360,000 million at a floating interest of 0.07% and Canon has no unused credit facilities as of December 31, 2018. *2 The other debt consisted of term-loans and capital lease obligations as of December 31, 2018 and 2017. |
Aggregate Annual Maturities of Long-Term Debt Outstanding | The aggregate annual maturities of long-term debt outstanding at December 31, 2018 were as follows: (Millions of yen) Year ending December 31: 2019 2,640 2020 638 2021 360,805 2022 427 2023 82 Thereafter 10 364,602 |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Trade Payables | Trade payables are summarized as follows: December 31 2018 2017 (Millions of yen) Notes 68,140 81,002 Accounts 284,349 299,652 352,489 380,654 |
Employee Retirement and Sever_2
Employee Retirement and Severance Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Reconciliations of Beginning and Ending Balances of 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 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year 929,630 906,007 423,579 392,086 Service cost 31,241 30,889 7,982 6,962 Interest cost 5,419 5,689 8,691 8,691 Plan participants’ contributions — — 1,535 1,644 Actuarial (gain) loss (1,844 ) 11,112 (24,297 ) (1,760 ) Benefits paid (33,477 ) (29,020 ) (10,135 ) (7,884 ) Acquisition — 4,239 — — Plan amendments (3,963 ) 1,149 3,257 (1,069 ) Curtailments and settlements — (435 ) (1,149 ) — Foreign currency exchange rate changes — — (23,514 ) 24,909 Projected benefit obligations at end of year 927,006 929,630 385,949 423,579 Change in plan assets: Fair value of plan assets at beginning of year 735,513 667,436 254,020 224,939 Actual return on plan assets (38,010 ) 47,376 (6,042 ) 14,262 Employer contributions 12,651 43,468 22,393 7,160 Plan participants’ contributions — — 1,535 1,644 Benefits paid (27,459 ) (23,967 ) (10,135 ) (7,884 ) Acquisition — 1,223 — — Settlements — (23 ) (1,150 ) — Foreign currency exchange rate changes — — (11,979 ) 13,899 Fair value of plan assets at end of year 682,695 735,513 248,642 254,020 Funded status at end of year (244,311 ) (194,117 ) (137,307 ) (169,559 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets at December 31, 2018 and 2017 are as follows: Japanese plans Foreign plans December 31 December 31 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Other assets 1,536 1,695 1,306 1,215 Accrued expenses (679 ) — (992 ) (1,004 ) Accrued pension and severance cost (245,168 ) (195,812 ) (137,621 ) (169,770 ) (244,311 ) (194,117 ) (137,307 ) (169,559 ) |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Before Effect of Income Taxes | Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2018 and 2017 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Actuarial loss 267,355 221,106 95,121 105,883 Prior service credit (48,392 ) (57,430 ) (227 ) (3,638 ) 218,963 163,676 94,894 102,245 |
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 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Accumulated benefit obligation 893,154 894,329 371,653 402,390 |
Pension Plans with Projected and 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 2018 2017 2018 2017 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations 918,736 924,536 384,167 420,383 Fair value of plan assets 672,889 728,724 245,554 249,609 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations 891,204 889,652 369,215 394,840 Fair value of plan assets 670,826 728,724 244,826 245,247 |
Components of Net Periodic Benefit Cost | Net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans for the years ended December 31, 2018, 2017 and 2016 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2018 2017 2016 2018 2017 2016 (Millions of yen) (Millions of yen) Service cost 31,241 30,889 29,367 7,982 6,962 6,816 Interest cost 5,419 5,689 8,238 8,691 8,691 8,792 Expected return on plan assets (21,983 ) (20,493 ) (19,443 ) (12,601 ) (10,722 ) (10,012 ) Amortization of prior service credit (13,001 ) (12,860 ) (13,230 ) (217 ) (83 ) 85 Amortization of actuarial loss 11,900 14,220 10,944 5,108 5,747 2,185 (Gain) loss on curtailments and settlements — (63 ) — — — — 13,576 17,382 15,876 8,963 10,595 7,866 |
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, 2018, 2017 and 2016 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2018 2017 2016 2018 2017 2016 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss 58,149 (15,771 ) 53,076 (5,654 ) (5,300 ) 47,365 Current year prior service credit (3,963 ) 1,149 (4,734 ) 3,257 (1,069 ) — Amortization of actuarial loss (11,900 ) (14,220 ) (10,944 ) (5,108 ) (5,747 ) (2,185 ) Amortization of prior service credit 13,001 12,860 13,230 217 83 (85 ) Curtailments and settlements — 19 — (63 ) — — 55,287 (15,963 ) 50,628 (7,351 ) (12,033 ) 45,095 |
Summary of Defined Benefit Pension Plans Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Cost over Next Year | 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 (11,887 ) (57 ) Actuarial loss 15,230 4,852 |
Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted-average assumptions used to determine benefit obligations are as follows: Japanese plans Foreign plans December 31 December 31 2018 2017 2018 2017 Discount rate 0.6 % 0.6 % 2.4 % 2.2 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 1.9 % 1.8 % 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 2018 2017 2016 2018 2017 2016 Discount rate 0.6 % 0.7 % 1.1 % 2.2 % 2.2 % 3.0 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 3.0 % 1.8 % 2.1 % 2.0 % Expected long-term rate of return on plan assets 2.9 % 3.1 % 3.1 % 4.4 % 4.2 % 4.4 % |
Fair Values of Company's Pension Plans Assets | The three levels of input used to measure fair value are more fully described in Note 21. The fair values of Canon’s pension plan assets at December 31, 2018 and 2017, by asset category, are as follows: December 31, 2018 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) 67,283 — — 67,283 — — — — Foreign companies 5,451 — — 5,451 8,567 — — 8,567 Pooled funds (b) — 137,712 — 137,712 — 49,312 — 49,312 Debt securities: Government bonds (c) 137,858 — — 137,858 — — — — Municipal bonds — 1,483 — 1,483 — 2,642 — 2,642 Corporate bonds — 12,595 — 12,595 — 6,318 — 6,318 Pooled funds (d) — 140,712 — 140,712 — 59,419 — 59,419 Mortgage backed securities (and other asset backed securities) — 8,489 — 8,489 — — — — Life insurance company general accounts — 123,747 — 123,747 — 9,019 — 9,019 Other assets — 30,009 1,451 31,460 — 95,844 — 95,844 Investment measured at net asset value — — — 15,905 — — — 17,521 210,592 454,747 1,451 682,695 8,567 222,554 — 248,642 December 31, 2017 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) 83,765 — — 83,765 — — — — Foreign companies 8,261 — — 8,261 32,240 — — 32,240 Pooled funds (f) — 164,946 — 164,946 — 73,968 — 73,968 Debt securities: Government bonds (g) 138,092 — — 138,092 9,343 — — 9,343 Municipal bonds — 1,166 — 1,166 — 2,901 — 2,901 Corporate bonds — 15,246 — 15,246 — 22,045 — 22,045 Pooled funds (h) — 130,507 — 130,507 — 25,821 — 25,821 Mortgage backed securities (and other asset backed securities) — 8,076 — 8,076 — 3 — 3 Life insurance company general accounts — 126,985 — 126,985 — 8,683 — 8,683 Other assets — 43,070 — 43,070 — 73,320 — 73,320 Investment measured at net asset value — — — 15,399 — — — 5,696 230,118 489,996 — 735,513 41,583 206,741 — 254,020 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥147 million. (b) These funds invest in listed equity securities consisting of approximately 30% Japanese companies and 70% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (c) This class includes approximately 90% Japanese government bonds and 10% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (d) These funds invest in approximately 30% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 35% foreign government bonds and 65% 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 ¥381 million. (f) These funds invest in listed equity securities consisting of approximately 30% Japanese companies and 70% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (g) This class includes approximately 90% Japanese government bonds and 10% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (h) These funds invest in approximately 30% Japanese government bonds, 45% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 70% foreign government bonds and 30% corporate bonds for foreign plans. |
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: 2019 35,604 12,077 2020 36,896 12,214 2021 38,524 13,221 2022 41,775 13,927 2023 43,119 14,562 2024 – 2028 226,704 87,006 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes and Current and Deferred Income Tax Expense | Domestic and foreign components of income before income taxes and the current and deferred income tax expense attributable to such income are summarized as follows: Year ended December 31, 2018 Japanese Foreign Total (Millions of yen) Income before income taxes 241,474 121,418 362,892 Income taxes: Current 75,556 32,443 107,999 Deferred (6,552 ) (5,297 ) (11,849 ) 69,004 27,146 96,150 Year ended December 31, 2017 Japanese Foreign Total (Millions of yen) Income before income taxes 276,149 77,735 353,884 Income taxes: Current 80,225 35,402 115,627 Deferred (7,453 ) (10,150 ) (17,603 ) 72,772 25,252 98,024 Year ended December 31, 2016 Japanese Foreign Total (Millions of yen) Income before income taxes 135,131 109,520 244,651 Income taxes: Current 47,687 27,806 75,493 Deferred 4,126 3,062 7,188 51,813 30,868 82,681 |
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 2018 2017 2016 Japanese statutory income tax rate 31.0 % 31.0 % 33.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes * 0.7 3.7 0.8 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (3.0 ) (2.1 ) (3.0 ) Tax credit for research and development expenses (3.4 ) (4.8 ) (3.0 ) Change in valuation allowance 0.4 1.7 (0.8 ) Effect of enacted changes in tax laws and rates on Japanese tax — — 1.4 Effect of enacted changes in U.S. tax laws — (3.6 ) — Other 0.8 1.8 5.4 Effective income tax rate 26.5 % 27.7 % 33.8 % * Expenses not deductible for tax purposes for the year ended December 31, 2017 primarily consist of impairment losses on goodwill. |
Captions of Net Deferred Income Tax Assets and Liabilities Included in Consolidated Balance Sheets | Net deferred income tax assets and liabilities are included in the accompanying consolidated balance sheets under the following captions: December 31 2018 2017 (Millions of yen) Other assets 160,541 150,854 Other noncurrent liabilities (70,336 ) (90,010 ) 90,205 60,844 |
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, 2018 and 2017 are presented below: December 31 2018 2017 (Millions of yen) Deferred tax assets: Inventories 10,739 11,921 Accrued business tax 2,361 4,705 Accrued pension and severance cost 105,933 98,114 Research and development – costs capitalized for tax purposes 4,690 5,383 Property, plant and equipment 33,738 33,488 Accrued expenses 28,015 30,126 Net operating losses carried forward 28,549 29,006 Other 38,683 38,526 252,708 251,269 Less valuation allowance (30,734 ) (30,783 ) Total deferred tax assets 221,974 220,486 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (7,615 ) (9,859 ) Tax deductible reserve (4,050 ) (4,396 ) Financing lease revenue (26,441 ) (38,287 ) Intangible assets (66,189 ) (74,377 ) Other (27,474 ) (32,723 ) Total deferred tax liabilities (131,769 ) (159,642 ) Net deferred tax assets 90,205 60,844 |
Amounts and Period Ranges of Operating Losses Carried Forward 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 5,854 After one year through five years 26,802 After five years through ten years 38,687 After ten years through twenty years 48,642 Indefinite period 66,129 Total 186,114 |
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 2018 2017 2016 (Millions of yen) Balance at beginning of year 10,282 7,318 6,056 Additions for tax positions of the current year 45 2,956 2,741 Additions for tax positions of prior years 178 250 — Reductions for tax positions of prior years (17 ) (915 ) (665 ) Settlements with tax authorities (1,286 ) — (370 ) Other (553 ) 673 (444 ) Balance at end of year* 8,649 10,282 7,318 * The total amounts of unrecognized tax benefits presented in other noncurrent liabilities in the consolidated balance sheets were offset by deferred tax assets in the amount of ¥2,043 million, ¥124 million and ¥32 million as of December 31, 2018, 2017 and 2016. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016 are as follows: Foreign Unrealized Gains and Pension Total (Millions of yen) Balance at December 31, 2015 87,038 14,055 182 (131,017 ) (29,742 ) Equity transactions with noncontrolling interests and other 259 — — (1 ) 258 Other comprehensive income (loss) before reclassifications (101,350 ) 814 938 (67,511 ) (167,109 ) Amounts reclassified from accumulated other comprehensive income (loss) 93 382 (3,862 ) 99 (3,288 ) Net change during the year (100,998 ) 1,196 (2,924 ) (67,413 ) (170,139 ) Balance at December 31, 2016 (13,960 ) 15,251 (2,742 ) (198,430 ) (199,881 ) Equity transactions with noncontrolling interests and other — — — — — Other comprehensive income (loss) before reclassifications 44,184 2,813 (1,452 ) 14,785 60,330 Amounts reclassified from accumulated other comprehensive income (loss) (16 ) (12,580 ) 4,014 4,905 (3,677 ) Net change during the year 44,168 (9,767 ) 2,562 19,690 56,653 Balance at December 31, 2017 30,208 5,484 (180 ) (178,740 ) (143,228 ) Cumulative effects of accounting standard update – adoption of ASU No. 2016-01 * — (5,343 ) — — (5,343 ) Equity transactions with noncontrolling interests and other (4,200 ) — — — (4,200 ) Other comprehensive income (loss) before reclassifications (89,823 ) — (457 ) (29,909 ) (120,189 ) Amounts reclassified from accumulated other comprehensive income (loss) — (141 ) 945 3,085 3,889 Net change during the year (94,023 ) (5,484 ) 488 (26,824 ) (125,843 ) Balance at December 31, 2018 (63,815 ) — 308 (205,564 ) (269,071 ) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016 are as follows: Amount reclassified from Year ended Year ended Year ended Affected line items in consolidated statements of income (Millions of yen) Foreign currency translation adjustments — (39 ) 139 Other, net — 12 (46 ) Income taxes — (27 ) 93 Consolidated net income — 11 — Net income attributable to noncontrolling interests — (16 ) 93 Net income attributable to Canon Inc. Unrealized gains and losses on securities (178 ) (18,472 ) 282 Other, net 37 5,727 (94 ) Income taxes (141 ) (12,745 ) 188 Consolidated net income — 165 194 Net income attributable to noncontrolling interests (141 ) (12,580 ) 382 Net income attributable to Canon Inc. Gains and losses on derivative instruments 1,341 5,772 (5,890 ) Other, net (392 ) (1,732 ) 2,049 Income taxes 949 4,040 (3,841 ) Consolidated net income (4 ) (26 ) (21 ) Net income attributable to noncontrolling interests 945 4,014 (3,862 ) Net income attributable to Canon Inc. Pension liability adjustments 3,853 7,005 (16 ) Other, net (699 ) (1,832 ) 164 Income taxes 3,154 5,173 148 Consolidated net income (69 ) (268 ) (49 ) Net income attributable to noncontrolling interests 3,085 4,905 99 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling interests 3,889 (3,677 ) (3,288 ) *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) 2018: Foreign currency translation adjustments Amount arising during the year (93,955 ) 809 (93,146 ) Reclassification adjustments for gains and losses realized in net income — — — Net change during the year (93,955 ) 809 (93,146 ) Net unrealized gains and losses on securities: Amount arising during the year — — — Reclassification adjustments for gains and losses realized in net income (178 ) 37 (141 ) Net change during the year (178 ) 37 (141 ) Net gains and losses on derivative instruments: Amount arising during the year (586 ) 125 (461 ) Reclassification adjustments for gains and losses realized in net income 1,341 (392 ) 949 Net change during the year 755 (267 ) 488 Pension liability adjustments: Amount arising during the year (51,789 ) 18,065 (33,724 ) Reclassification adjustments for gains and losses realized in net income 3,853 (699 ) 3,154 Net change during the year (47,936 ) 17,366 (30,570 ) Other comprehensive income (loss) (141,314 ) 17,945 (123,369 ) 2017: Foreign currency translation adjustments Amount arising during the year 47,825 (708 ) 47,117 Reclassification adjustments for gains and losses realized in net income (39 ) 12 (27 ) Net change during the year 47,786 (696 ) 47,090 Net unrealized gains and losses on securities: Amount arising during the year 5,100 (1,717 ) 3,383 Reclassification adjustments for gains and losses realized in net income (18,472 ) 5,727 (12,745 ) Net change during the year (13,372 ) 4,010 (9,362 ) Net gains and losses on derivative instruments: Amount arising during the year (2,080 ) 628 (1,452 ) Reclassification adjustments for gains and losses realized in net income 5,772 (1,732 ) 4,040 Net change during the year 3,692 (1,104 ) 2,588 Pension liability adjustments: Amount arising during the year 20,991 (4,957 ) 16,034 Reclassification adjustments for gains and losses realized in net income 7,005 (1,832 ) 5,173 Net change during the year 27,996 (6,789 ) 21,207 Other comprehensive income (loss) 66,102 (4,579 ) 61,523 2016: Foreign currency translation adjustments Amount arising during the year (108,280 ) 521 (107,759 ) Reclassification adjustments for gains and losses realized in net income 139 (46 ) 93 Net change during the year (108,141 ) 475 (107,666 ) Net unrealized gains and losses on securities: Amount arising during the year 1,184 (375 ) 809 Reclassification adjustments for gains and losses realized in net income 282 (94 ) 188 Net change during the year 1,466 (469 ) 997 Net gains and losses on derivative instruments: Amount arising during the year 1,619 (726 ) 893 Reclassification adjustments for gains and losses realized in net income (5,890 ) 2,049 (3,841 ) Net change during the year (4,271 ) 1,323 (2,948 ) Pension liability adjustments: Amount arising during the year (95,707 ) 25,204 (70,503 ) Reclassification adjustments for gains and losses realized in net income (16 ) 164 148 Net change during the year (95,723 ) 25,368 (70,355 ) Other comprehensive income (loss) (206,669 ) 26,697 (179,972 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue By Timing | Disaggregated revenue by timing is as follows. Disaggregated revenue by business unit, product and geographic area are described in Note 22. Office Imaging Medical Industry and Others Corporate and Consolidated (Millions of yen) 2018: Revenue recognized at a point in time 1,286,100 993,658 305,457 599,766 (106,318 ) 3,078,663 Revenue recognized over time 521,201 14,507 132,121 205,445 — 873,274 Total 1,807,301 1,008,165 437,578 805,211 (106,318 ) 3,951,937 |
Schedule of Impact of Adoption of Revenue Standard on Consolidated Financial Statements | The impacts of adoption of new revenue standard on Canon’s consolidated balance sheet as of December 31, 2018 and the consolidated statement of income for the year ended December 31, 2018 were as follows. Consolidated Balance Sheet December 31, 2018 As Reported Balance under Effect of (Millions of yen) Assets Trade receivables, net 612,953 657,419 (44,466 ) Inventories 611,281 614,243 (2,962 ) Prepaid expenses and other current assets 304,346 253,547 50,799 Other assets 397,974 397,949 25 Total assets 4,899,465 4,896,069 3,396 Liabilities and equity Accrued expenses 321,137 319,416 1,721 Other current liabilities 276,237 274,741 1,496 Total liabilities 1,881,552 1,878,335 3,217 Retained earnings 3,508,908 3,508,704 204 Noncontrolling interests 190,311 190,336 (25 ) Total equity 3,017,913 3,017,734 179 Consolidated Statement of Income For the year ended December 31, 2018 As Reported Amount under Effect of (Millions of yen) Net sales Products and Equipment 3,194,724 3,383,566 (188,842 ) Services 757,213 567,582 189,631 3,951,937 3,951,148 789 Cost of sales Products and Equipment 1,762,171 1,783,798 (21,627 ) Services 354,212 216,513 137,699 2,116,383 2,000,311 116,072 Gross profit 1,835,554 1,950,837 (115,283 ) Selling, general and administrative expenses 1,176,760 1,292,460 (115,700 ) Operating profit 342,952 342,535 417 Income before income taxes 362,892 362,475 417 Income taxes 96,150 96,094 56 Consolidated net income 266,742 266,381 361 Less: Net income attributable to noncontrolling interests 13,987 13,936 51 Net income attributable to Canon Inc. 252,755 252,445 310 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Fair Value Assumptions Used to Estimate Fair Value of Option | The fair value of the option award was estimated on the date of grant using the Black-Sholes option pricing model that incorporates the assumptions presented below: Year ended December 31, 2018 Expected term of option (in years) 6.0 Expected volatility 23.02 % Dividend yield 4.14 % Risk-free interest rate (0.07 %) |
Summary of Option Activity Under Stock Option Plans | A summary of option activity under the stock option plans as of and for the years ended December 31, 2018, 2017 and 2016 is presented below: Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2016 1,296,000 4,263 0.4 — Exercised — — Forfeited/Expired (693,000 ) 4,500 Outstanding at December 31, 2016 603,000 3,990 0.2 — Exercised — — Forfeited/Expired (603,000 ) 3,990 Outstanding at December 31, 2017 — — — Granted 74,000 1 Exercised — — Forfeited/Expired — — Outstanding at December 31, 2018 74,000 1 29.3 222 Exercisable at December 31, 2018 74,000 1 29.3 222 |
Net Income Attributable to Ca_2
Net Income Attributable to Canon Inc. Shareholders per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Attributable to Canon Inc. Shareholders Per Share Computations | 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 2018 2017 2016 (Millions of yen) Net income attributable to Canon Inc. 252,755 241,923 150,650 (Number of shares) Average common shares outstanding 1,079,753,008 1,085,439,370 1,092,070,680 Effect of dilutive securities: Stock options 49,319 — — Diluted common shares outstanding 1,079,802,327 1,085,439,370 1,092,070,680 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 234.09 222.88 137.95 Diluted 234.08 222.88 137.95 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contract Amounts of Foreign Exchange Contracts | Contract amounts of foreign exchange contracts at December 31, 2018 and 2017 are set forth below: December 31 2018 2017 (Millions of yen) To sell foreign currencies 230,505 272,563 To buy foreign currencies 30,816 46,168 |
Designated as Hedging Instrument | |
Fair Value of Derivative Instruments in 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, 2018 and 2017. Derivatives designated as hedging instruments Fair value December 31 Balance sheet location 2018 2017 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 521 255 Liabilities: Foreign exchange contracts Other current liabilities 323 367 |
Not Designated as Hedging Instrument | |
Fair Value of Derivative Instruments in Consolidated Balance Sheets | Derivatives not designated as hedging instruments Fair value December 31 Balance sheet location 2018 2017 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 2,622 289 Liabilities: Foreign exchange contracts Other current liabilities 443 2,892 |
Effect of Derivative Instruments in Consolidated Statements of Income | Derivatives not designated as hedging instruments Gain (loss) recognized in income on derivative Years ended December 31 Location 2018 2017 2016 (Millions of yen) Foreign exchange contracts Other, net 5,284 (7,932 ) 7,018 |
Cash Flow Hedging | Designated as Hedging Instrument | |
Effect of Derivative Instruments in Consolidated Statements of Income | 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) 2018: Foreign exchange contracts (586 ) Other, net (1,341 ) Other, net (682 ) 2017: Foreign exchange contracts (2,080 ) Other, net (5,772 ) Other, net (332 ) 2016: Foreign exchange contracts 1,619 Other, net 5,890 Other, net (311 ) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2018 are as follows: (Millions of yen) Year ending December 31: 2019 29,817 2020 23,402 2021 17,837 2022 13,565 2023 10,165 Thereafter 20,298 Total future minimum lease payments 115,084 |
Changes in Accrued Product Warranty Costs | Changes in accrued product warranty costs for the years ended December 31, 2018 and 2017 are summarized as follows: Years ended December 31 2018 2017 (Millions of yen) Balance at beginning of year 17,452 13,168 Additions 18,870 18,893 Utilization (14,707 ) (12,957 ) Other (4,297 ) (1,652 ) Balance at end of year 17,318 17,452 |
Disclosures about the Fair Va_2
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Estimated Fair Values of Canon's Financial Instruments | The estimated fair values of Canon’s financial instruments at December 31, 2018 and 2017 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 21, and Note 18, respectively. December 31 2018 2017 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments (364,602 ) (364,570 ) (499,168 ) (499,126 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
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, 2018 and 2017. December 31, 2018 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 70,500 — 70,500 Short-term investments: Available-for-sale: Corporate bonds 630 — — 630 Investments: Available-for-sale: Government bonds — — — — Corporate bonds — — — — Fund trusts and others 630 408 — 1,038 Equity securities 13,787 — — 13,787 Prepaid expenses and other current assets: Derivatives — 3,143 — 3,143 Total assets 15,047 74,051 — 89,098 Liabilities: Other current liabilities: Derivatives — 766 — 766 Total liabilities — 766 — 766 December 31, 2017 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 70,500 — 70,500 Short-term investments: Available-for-sale: Corporate bonds 1,222 — — 1,222 Investments: Available-for-sale: Government bonds 289 — — 289 Corporate bonds 605 217 — 822 Fund trusts 13 111 — 124 Equity securities 20,901 — — 20,901 Prepaid expenses and other current assets: Derivatives — 544 — 544 Total assets 23,030 71,372 — 94,402 Liabilities: Other current liabilities: Derivatives — 3,259 — 3,259 Total liabilities — 3,259 — 3,259 |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents the Canon’s asset that was measured at fair value on a nonrecurring basis consistent with the fair value hierarchy and related impairment charge recognized during the year ended December 31, 2017. Year ended December 31, 2017 Total loss Fair value Level 1 Level 2 Level 3 Total (Millions of yen) Asset: Goodwill (33,912 ) — — 29,370 29,370 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Information about Operating Results and Assets for Each Segment | Information about operating results and assets for each segment as of and for the years ended December 31, 2018, 2017 and 2016 is as follows: Office Imaging Medical System Industry and Corporate and Consolidated (Millions of yen) 2018: Net sales: External customers 1,804,002 1,007,365 437,305 703,265 — 3,951,937 Intersegment 3,299 800 273 101,946 (106,318 ) — Total 1,807,301 1,008,165 437,578 805,211 (106,318 ) 3,951,937 Operating cost and expenses 1,586,497 891,210 408,739 739,665 (17,126 ) 3,608,985 Operating profit 220,804 116,955 28,839 65,546 (89,192 ) 342,952 Other income (deductions) 8,383 4,299 640 2,061 4,557 19,940 Income before income taxes 229,187 121,254 29,479 67,607 (84,635 ) 362,892 Total assets 923,261 393,004 247,282 383,568 2,952,350 4,899,465 Depreciation and amortization 64,964 40,541 9,365 38,582 98,102 251,554 Capital expenditures 48,127 25,796 7,454 24,091 95,036 200,504 2017: Net sales: External customers 1,802,542 1,135,584 434,985 706,904 — 4,080,015 Intersegment 2,240 604 1,202 85,946 (89,992 ) — Total 1,804,782 1,136,188 436,187 792,850 (89,992 ) 4,080,015 Operating cost and expenses 1,615,521 962,663 414,246 752,122 13,858 3,758,410 Operating profit 189,261 173,525 21,941 40,728 (103,850 ) 321,605 Other income (deductions) 6,108 2,388 564 1,339 21,880 32,279 Income before income taxes 195,369 175,913 22,505 42,067 (81,970 ) 353,884 Total assets 946,213 387,088 238,824 376,064 3,250,102 5,198,291 Depreciation and amortization 72,346 41,695 5,212 39,736 102,892 261,881 Impairment losses on goodwill 21,721 — — 12,191 — 33,912 Capital expenditures 46,769 28,508 8,963 16,620 80,529 181,389 2016: Net sales: External customers 1,743,039 1,094,291 — 564,157 — 3,401,487 Intersegment 2,957 998 — 82,326 (86,281 ) — Total 1,745,996 1,095,289 — 646,483 (86,281 ) 3,401,487 Operating cost and expenses 1,583,588 953,567 — 641,082 6,825 3,185,062 Operating profit 162,408 141,722 — 5,401 (93,106 ) 216,425 Other income (deductions) 7,467 2,691 — 1,658 16,410 28,226 Income before income taxes 169,875 144,413 — 7,059 (76,696 ) 244,651 Total assets 947,602 391,661 204,755 354,602 3,239,909 5,138,529 Depreciation and amortization 76,500 47,386 — 42,872 83,338 250,096 Capital expenditures 71,841 25,564 — 29,694 81,280 208,379 |
Product Sales to External Customers for Each Segment | Information about sales by product to external customers for each segment for the years ended December 31, 2018, 2017 and 2016 is as follows: Years ended December 31 2018 2017 2016 (Millions of yen) Office Monochrome copiers 280,035 287,823 289,532 Color copiers 403,522 405,576 386,193 Printers 702,378 702,491 664,846 Others 418,067 406,652 402,468 Total 1,804,002 1,802,542 1,743,039 Imaging System Cameras 599,578 702,598 666,868 Inkjet printers 318,382 333,721 329,066 Others 89,405 99,265 98,357 Total 1,007,365 1,135,584 1,094,291 Medical System Diagnostic equipment 437,305 434,985 — Industry and Others Lithography equipment 199,722 193,113 121,090 Others 503,543 513,791 443,067 Total 703,265 706,904 564,157 Consolidated 3,951,937 4,080,015 3,401,487 |
Information by Major Geographic Area | Information by major geographic area as of and for the years ended December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 (Millions of yen) Net sales: Japan 869,577 884,828 706,979 Americas 1,076,402 1,107,515 963,544 Europe 1,015,428 1,028,415 913,523 Asia and Oceania 990,530 1,059,257 817,441 Total 3,951,937 4,080,015 3,401,487 Long-lived assets: Japan 1,046,065 1,081,522 1,163,374 Americas 129,989 141,937 147,129 Europe 169,357 174,889 166,734 Asia and Oceania 136,602 149,244 164,007 Total 1,482,013 1,547,592 1,641,244 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2018JPY (¥)Entity | Dec. 31, 2017JPY (¥) | Dec. 31, 2016JPY (¥) | Jan. 01, 2019JPY (¥) | Jan. 01, 2018JPY (¥) | |
Significant Accounting Policies [Line Items] | |||||
Foreign currency exchange gains (losses) | ¥ 6,044 | ¥ 9,775 | ¥ 2 | ||
Advertising expenses | ¥ 58,729 | 61,207 | 58,707 | ||
Accounting Standards Update 2016-02 [Member] | Subsequent Event | |||||
Significant Accounting Policies [Line Items] | |||||
Right of use assets and lease obligations for operating leases | ¥ 125,649 | ||||
Trademarks | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible assets, useful life | 15 years | ||||
License Fees | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible assets, useful life | 7 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 | 11 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 | ||||
Maximum | Computer software, intangible asset | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible assets, useful life | 7 years | ||||
Maximum | Patents and developed technology | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible assets, useful life | 17 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 | ||||
Retained Earnings | Adjustments for New Accounting Pronouncement | |||||
Significant Accounting Policies [Line Items] | |||||
Increase (decrease) in retained earnings | ¥ 5,343 | ||||
Available-for-sale Securities | |||||
Significant Accounting Policies [Line Items] | |||||
Cash equivalents | ¥ 70,500 | 70,500 | |||
Selling, General and Administrative Expenses | |||||
Significant Accounting Policies [Line Items] | |||||
Shipping and handling cost | ¥ 54,844 | 52,953 | 44,296 | ||
Selling, General and Administrative Expenses | Accounting Standards Update 2017-07 | |||||
Significant Accounting Policies [Line Items] | |||||
Other components of net benefit cost resulted in reclassification | 4,419 | 4,161 | |||
Cost of Sales | Accounting Standards Update 2017-07 | |||||
Significant Accounting Policies [Line Items] | |||||
Other components of net benefit cost resulted in reclassification | 2,137 | 1,835 | |||
Research and Development Expense | Accounting Standards Update 2017-07 | |||||
Significant Accounting Policies [Line Items] | |||||
Other components of net benefit cost resulted in reclassification | ¥ 3,318 | ¥ 6,445 | |||
Consolidated Net Sales | HP Inc. | Office Business Unit | Customer Concentration Risk | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 13.60% | 13.10% | 14.80% | ||
Foreign | |||||
Significant Accounting Policies [Line Items] | |||||
Number of manufacturing plants | Entity | 18 | ||||
Japan | |||||
Significant Accounting Policies [Line Items] | |||||
Number of manufacturing plants | Entity | 30 |
Investments (Available-For-Sale
Investments (Available-For-Sale Debt Securities and Equity Securities Included in Short-Term Investments and Investments By Major Security Type) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Fair value | ¥ 30,473 | ||
Available for sale Securities Current | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | ¥ 630 | 1,222 | |
Fair value | 630 | 1,222 | |
Available for sale Securities Current | Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 630 | 1,222 | |
Fair value | ¥ 630 | 1,222 | |
Available for sale Securities Non Current | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 12,032 | ||
Gross unrealized holding gains | 11,796 | ||
Gross unrealized holding losses | 1,692 | ||
Fair value | 22,136 | ||
Available for sale Securities Non Current | Government Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 305 | ||
Gross unrealized holding losses | 16 | ||
Fair value | 289 | ||
Available for sale Securities Non Current | Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | 640 | ||
Gross unrealized holding gains | 182 | ||
Fair value | 822 | ||
Available for sale Securities Non Current | Fund Trusts | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | [1] | 122 | |
Gross unrealized holding gains | [1] | 2 | |
Fair value | [1] | 124 | |
Available for sale Securities Non Current | Equity Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost | [1] | 10,965 | |
Gross unrealized holding gains | [1] | 11,612 | |
Gross unrealized holding losses | [1] | 1,676 | |
Fair value | [1] | ¥ 20,901 | |
[1] | After the adoption of ASU No. 2016-01, equity investments are measured at fair value with changes in the fair value recognized in net income from the quarter beginning January 1, 2018. |
Investments (Maturities of Avai
Investments (Maturities of Available-For-Sale Debt Securities Included in Short-Term Investments) (Detail) ¥ in Millions | Dec. 31, 2018JPY (¥) |
Cost | |
Due within one year | ¥ 630 |
Available-for-sale Debt Securities, Amortized Cost Basis | 630 |
Fair value | |
Due within one year | 630 |
Available-for-sale Securities, Debt Securities | ¥ 630 |
Investments - Schedule of unrea
Investments - Schedule of unrealized and Realized Gains and Losses Equity Securities (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2018JPY (¥) | |
Realized Investment Gains (Losses) [Abstract] | |
Net gains and (losses) recognized during the period on equity securities | ¥ (6,092) |
Less: Net gains and (losses) recognized during the period on equity securities sold during the period | 675 |
Unrealized gains and (losses) recognized during the period on equity securities still held at December 31. | ¥ (6,767) |
Investments - Additional Inform
Investments - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Abstract] | |||
Gross realized gains | ¥ 18,514 | ¥ 750 | |
Gross realized losses | 42 | 1,032 | |
Fair value of securities at the time of contribution | 30,473 | ||
Unrealized gains | 17,836 | ||
Carrying amount of non-marketable equity securities without readily determinable fair value | ¥ 4,629 | ||
Aggregate cost of non-marketable equity securities accounted for under the cost method | 3,760 | ||
Time deposits with original maturities of more than three months | 326 | 743 | |
Investments in affiliated companies accounted for by the equity method | 21,312 | 20,496 | |
Canon's share of net earnings in affiliated companies accounted for by the equity method, included in other income (deductions) | ¥ 1,414 | ¥ 1,196 | ¥ 890 |
Trade Receivables (Schedule of
Trade Receivables (Schedule of Trade Receivables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Notes | ¥ 29,878 | ¥ 37,077 |
Accounts | 594,552 | 627,173 |
Trade Accounts And Notes Receivable Gross Current, Total | 624,430 | 664,250 |
Less allowance for doubtful receivables | (11,477) | (13,378) |
Trade receivables, net | ¥ 612,953 | ¥ 650,872 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | ¥ 393,820 | ¥ 377,632 |
Work in process | 165,003 | 144,251 |
Raw materials | 52,458 | 48,150 |
Inventories | ¥ 611,281 | ¥ 570,033 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land | ¥ 272,443 | ¥ 274,551 |
Buildings | 1,629,927 | 1,638,202 |
Machinery and equipment | 1,793,499 | 1,804,982 |
Construction in progress | 67,045 | 46,940 |
Property, Plant and Equipment, Gross, Total | 3,762,914 | 3,764,675 |
Less accumulated depreciation | (2,671,922) | (2,638,055) |
Property, plant and equipment, net (Notes 5 and 6) | ¥ 1,090,992 | ¥ 1,126,620 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Number Of Shares Outstanding Basic And Diluted Proforma [Abstract] | |||
Depreciation expenses | ¥ 175,771 | ¥ 189,712 | ¥ 199,133 |
Amount due for purchase of property, plant and equipment | ¥ 32,433 | ¥ 23,432 |
Finance Receivables and Opera_3
Finance Receivables and Operating Leases - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases Disclosure [Line Items] | ||
Proceeds from sale of lease finance receivables | ¥ 21,909 | |
Financing receivables | 328,065 | ¥ 339,558 |
Uncollectible Receivables [Member] | ||
Leases Disclosure [Line Items] | ||
Financing receivables | ¥ 22,956 | |
Minimum | ||
Leases Disclosure [Line Items] | ||
Term of financing receivables | 1 year | |
Maximum | ||
Leases Disclosure [Line Items] | ||
Term of financing receivables | 7 years | |
Equipment Leased to Customer | ||
Leases Disclosure [Line Items] | ||
Property, plant and equipment lease | ¥ 120,457 | 103,078 |
Accumulated depreciation on property, plant and equipment lease | ¥ 82,698 | ¥ 78,307 |
Finance Receivables and Opera_4
Finance Receivables and Operating Leases (Components of Finance Receivables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Leases [Abstract] | |||
Total minimum lease payments receivable | ¥ 351,198 | ¥ 361,686 | |
Unguaranteed residual values | 12,661 | 15,055 | |
Executory costs | (2,112) | (2,216) | |
Unearned income | (31,007) | (32,286) | |
Financing Receivable, Gross, Total | 330,740 | 342,239 | |
Less allowance for credit losses | (2,675) | (2,681) | ¥ (2,325) |
Capital Leases, Net Investment in Direct Financing and Sales Type Leases, Total | 328,065 | 339,558 | |
Less current portion | (111,629) | (120,186) | |
Capital Leases, Lessor Balance Sheet, Net Investment in Direct Financing and Sales Type Leases, Noncurrent, Total | 216,436 | 219,372 | |
Capital Leases, Net Investment in Direct Financing and Sales Type Leases, Total | ¥ 328,065 | ¥ 339,558 |
Finance Receivables and Opera_5
Finance Receivables and Operating Leases (Activity in Allowance for Credit Losses) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Balance at beginning of year | ¥ 2,681 | ¥ 2,325 |
Charge-offs | (1,284) | (1,523) |
Provision | 938 | 1,436 |
Translation adjustments and other | 340 | 443 |
Balance at end of year | ¥ 2,675 | ¥ 2,681 |
Finance Receivables and Opera_6
Finance Receivables and Operating Leases (Future Minimum Lease Payments to be Received Under Financing Leases and Noncancelable Operating Leases) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financing leases | ||
2019 | ¥ 127,068 | |
2020 | 98,772 | |
2021 | 66,719 | |
2022 | 37,181 | |
2023 | 14,792 | |
Thereafter | 6,666 | |
Total minimum lease payments receivable | 351,198 | ¥ 361,686 |
Operating leases | ||
2019 | 9,207 | |
2020 | 6,409 | |
2021 | 2,917 | |
2022 | 1,202 | |
2023 | 317 | |
Thereafter | 60 | |
Operating Leases, Future Minimum Payments Receivable, Total | ¥ 20,112 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - JPY (¥) ¥ in Millions | Dec. 19, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 228,127 | ||
Weighted average amortization period for acquired intangible assets | 6 years | 5 years | |
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Weighted average amortization period for acquired intangible assets | 8 years | ||
Patents and developed technology | |||
Business Acquisition [Line Items] | |||
Weighted average amortization period for acquired intangible assets | 11 years | ||
Canon Medical Systems Corporation (CMSC) | |||
Business Acquisition [Line Items] | |||
Purchase price | ¥ 665,498 | ||
Weighted average amortization period for acquired intangible assets | 13 years | ||
Canon Medical Systems Corporation (CMSC) | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 143,600 | ||
Amortization period for acquired intangible assets | 15 years | ||
Canon Medical Systems Corporation (CMSC) | Patents and developed technology | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, subject to amortization | ¥ 73,000 | ||
Amortization period for acquired intangible assets | 10 years |
Acquisitions (Summary of Fair V
Acquisitions (Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date, Toshiba Medical Systems Corporation (TMSC)) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 19, 2016 |
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | ¥ 25,301 | ||||
Other current assets | 167,583 | ||||
Intangible assets | 228,127 | ||||
Other noncurrent assets | 42,975 | ||||
Total assets acquired | 463,986 | ||||
Current liabilities | 198,346 | ||||
Noncurrent liabilities | 91,182 | ||||
Total liabilities assumed | 289,528 | ||||
Noncontrolling interest | 1,047 | ||||
Net identifiable assets acquired | 173,411 | ||||
Goodwill | ¥ 908,511 | ¥ 936,722 | ¥ 936,424 | 492,087 | |
Net assets acquired | 665,498 | ||||
Preliminary | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 25,301 | ||||
Other current assets | 169,545 | ||||
Intangible assets | 227,500 | ||||
Other noncurrent assets | 42,975 | ||||
Total assets acquired | 465,321 | ||||
Current liabilities | 199,223 | ||||
Noncurrent liabilities | 92,231 | ||||
Total liabilities assumed | 291,454 | ||||
Noncontrolling interest | 1,047 | ||||
Net identifiable assets acquired | 172,820 | ||||
Goodwill | 492,678 | ||||
Net assets acquired | 665,498 | ||||
Measurement Period Adjustment | |||||
Business Acquisition [Line Items] | |||||
Other current assets | (1,962) | ||||
Intangible assets | 627 | ||||
Total assets acquired | (1,335) | ||||
Current liabilities | (877) | ||||
Noncurrent liabilities | (1,049) | ||||
Total liabilities assumed | (1,926) | ||||
Net identifiable assets acquired | 591 | ||||
Goodwill | ¥ (591) | ||||
[1] | Based on the realignment of Canon's internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 48,004 | ¥ 35,112 | |
Weighted average amortization period for acquired intangible assets | 6 years | 5 years | |
Aggregate amortization expense | ¥ 75,783 | ¥ 72,169 | ¥ 50,963 |
Estimated amortization expense for intangible assets, 2019 | 68,730 | ||
Estimated amortization expense for intangible assets, 2020 | 54,115 | ||
Estimated amortization expense for intangible assets, 2021 | 46,067 | ||
Estimated amortization expense for intangible assets, 2022 | 37,158 | ||
Estimated amortization expense for intangible assets, 2023 | 31,202 | ||
Computer software, intangible asset | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 36,859 | ¥ 33,437 | |
Weighted average amortization period for acquired intangible assets | 5 years | 5 years | |
Patents and developed technology | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 6,109 | ||
Weighted average amortization period for acquired intangible assets | 11 years | ||
Customer Relationships | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 1,203 | ||
Weighted average amortization period for acquired intangible assets | 8 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Components of Intangible Assets Subject to Amortization) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | ¥ 722,479 | ¥ 708,020 |
Accumulated amortization | 335,862 | 291,603 |
Computer software, intangible asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 362,130 | 342,322 |
Accumulated amortization | 244,188 | 217,654 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 156,679 | 162,832 |
Accumulated amortization | 27,263 | 22,463 |
Patents and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 123,831 | 121,886 |
Accumulated amortization | 36,029 | 27,085 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 44,449 | 48,823 |
Accumulated amortization | 12,062 | 9,890 |
License Fees | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 16,071 | 13,565 |
Accumulated amortization | 6,461 | 6,375 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 19,319 | 18,592 |
Accumulated amortization | ¥ 9,859 | ¥ 8,136 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill by Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Goodwill [Line Items] | ||||
Goodwill - gross | ¥ 940,939 | ¥ 971,178 | ||
Accumulated impairment losses | (32,428) | (34,456) | ||
Balance at beginning of year | 936,722 | 936,424 | [1] | |
Goodwill acquired during the year | 7,627 | 3,487 | ||
Impairment loss | [1],[2] | (33,912) | ||
Translation adjustments and other | (35,838) | 30,723 | [1] | |
Balance at end of year | 908,511 | 936,722 | ||
Office Business Unit | ||||
Goodwill [Line Items] | ||||
Goodwill - gross | 127,860 | 135,125 | ||
Accumulated impairment losses | (20,770) | (22,069) | ||
Balance at beginning of year | 113,056 | 124,993 | [1] | |
Goodwill acquired during the year | 857 | |||
Impairment loss | [1],[2] | (21,721) | ||
Translation adjustments and other | (5,966) | 8,927 | [1] | |
Balance at end of year | 107,090 | 113,056 | ||
Imaging System Business Unit | ||||
Goodwill [Line Items] | ||||
Goodwill - gross | 48,670 | 52,561 | ||
Balance at beginning of year | 52,561 | 49,034 | [1] | |
Goodwill acquired during the year | 236 | |||
Translation adjustments and other | (3,891) | 3,291 | [1] | |
Balance at end of year | 48,670 | 52,561 | ||
Medical System Business Unit | ||||
Goodwill [Line Items] | ||||
Goodwill - gross | 500,896 | 499,915 | ||
Balance at beginning of year | 499,915 | |||
Goodwill acquired during the year | 1,521 | |||
Transfer | [3] | 499,855 | ||
Translation adjustments and other | (540) | 60 | [1] | |
Balance at end of year | 500,896 | 499,915 | ||
Industry and Others Business Unit | ||||
Goodwill [Line Items] | ||||
Goodwill - gross | 263,513 | 283,577 | ||
Accumulated impairment losses | (11,658) | (12,387) | ||
Balance at beginning of year | 271,190 | 269,719 | [1] | |
Goodwill acquired during the year | 6,106 | 2,394 | ||
Transfer | [3] | (7,177) | ||
Impairment loss | [1],[2] | (12,191) | ||
Translation adjustments and other | (25,441) | 18,445 | [1] | |
Balance at end of year | ¥ 251,855 | 271,190 | ||
Unallocated | ||||
Goodwill [Line Items] | ||||
Balance at beginning of year | [1],[3] | 492,678 | ||
Transfer | [3] | ¥ (492,678) | ||
[1] | Based on the realignment of Canon's internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. | |||
[2] | After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit's fair value. | |||
[3] | Canon did not complete the allocation of goodwill to the segments for impairment testing which was attributable to the acquisition of CMSC as of December 31, 2016. Based on the realignment of Canon's internal reporting and management structure, Canon newly established Medical System Business Unit effective at the beginning of the second quarter of 2017. Goodwill related to CMSC as well as goodwill related to certain medical business which was previously included in Industry and Others Business Unit have been transferred to Medical System Business Unit. |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill by Segment) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Goodwill [Line Items] | ||||
Goodwill, Impairment Loss | [1],[2] | ¥ 33,912 | ||
Goodwill translation adjustment | ¥ (35,838) | 30,723 | [2] | |
Office Business Unit | ||||
Goodwill [Line Items] | ||||
Goodwill, Impairment Loss | [1],[2] | 21,721 | ||
Goodwill translation adjustment | (5,966) | 8,927 | [2] | |
Industry and Others Business Unit | ||||
Goodwill [Line Items] | ||||
Transfer of goodwill between segments | [3] | (7,177) | ||
Goodwill, Impairment Loss | [1],[2] | 12,191 | ||
Goodwill translation adjustment | ¥ (25,441) | 18,445 | [2] | |
Restatement Adjustment | ||||
Goodwill [Line Items] | ||||
Transfer of goodwill between segments | 11,263 | |||
Restatement Adjustment | Office Business Unit | ||||
Goodwill [Line Items] | ||||
Goodwill, Impairment Loss | (12,191) | |||
Goodwill translation adjustment | 928 | |||
Restatement Adjustment | Industry and Others Business Unit | ||||
Goodwill [Line Items] | ||||
Goodwill, Impairment Loss | 12,191 | |||
Goodwill translation adjustment | ¥ (928) | |||
[1] | After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit's fair value. | |||
[2] | Based on the realignment of Canon's internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. | |||
[3] | Canon did not complete the allocation of goodwill to the segments for impairment testing which was attributable to the acquisition of CMSC as of December 31, 2016. Based on the realignment of Canon's internal reporting and management structure, Canon newly established Medical System Business Unit effective at the beginning of the second quarter of 2017. Goodwill related to CMSC as well as goodwill related to certain medical business which was previously included in Industry and Others Business Unit have been transferred to Medical System Business Unit. |
Short-Term Loans and Long-Ter_3
Short-Term Loans and Long-Term Debt - Additional Information (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Short-term loans consisting of bank borrowings | ¥ 35,887 | ¥ 33,398 |
Weighted average interest rate on short-term borrowings | 0.43% | 0.52% |
Short-Term Loans and Long-Ter_4
Short-Term Loans and Long-Term Debt (Schedule of Long-Term Debt) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Loan from the banks; bearing interest of 0.07% at December 31, 2018 and 0.06% at December 31, 2017 | [1] | ¥ 360,000 | ¥ 490,000 |
Other debt | [2] | 4,602 | 9,168 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | 364,602 | 499,168 | |
Less current portion | (2,640) | (5,930) | |
Long-term debt, excluding current installments (Notes 9 and 20) | 361,962 | 493,238 | |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | ¥ 364,602 | ¥ 499,168 | |
[1] | Canon entered into the unsecured revolving credit facility contracts expiring in December 2021. Canon prepaid ¥130,000 million of the loan with cash flows generated during the year ended December 31, 2018. The outstanding loans under the credit facilities are ¥360,000 million at a floating interest of 0.07% and Canon has no unused credit facilities as of December 31, 2018. | ||
[2] | The other debt consisted of term-loans and capital lease obligations as of December 31, 2018 and 2017. |
Short-Term Loans and Long-Ter_5
Short-Term Loans and Long-Term Debt (Schedule of Long-Term Debt) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Disclosure [Abstract] | |||
Loan from the banks, maturity date after refinancing | Dec. 31, 2021 | ||
Loan principle prepaid | ¥ 130,000 | ||
Loan from the banks | [1] | ¥ 360,000 | ¥ 490,000 |
Loan from the banks, floating interest rate | [1] | 0.07% | 0.06% |
Unused line of credit | ¥ 0 | ||
[1] | Canon entered into the unsecured revolving credit facility contracts expiring in December 2021. Canon prepaid ¥130,000 million of the loan with cash flows generated during the year ended December 31, 2018. The outstanding loans under the credit facilities are ¥360,000 million at a floating interest of 0.07% and Canon has no unused credit facilities as of December 31, 2018. |
Short-Term Loans and Long-Ter_6
Short-Term Loans and Long-Term Debt (Aggregate Annual Maturities of Long-Term Debt Outstanding) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
2019 | ¥ 2,640 | |
2020 | 638 | |
2021 | 360,805 | |
2022 | 427 | |
2023 | 82 | |
Thereafter | 10 | |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | ¥ 364,602 | ¥ 499,168 |
Trade Payables (Schedule of Tra
Trade Payables (Schedule of Trade Payables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Notes | ¥ 68,140 | ¥ 81,002 |
Accounts | 284,349 | 299,652 |
Trade payables (Note 10) | ¥ 352,489 | ¥ 380,654 |
Employee Retirement and Sever_3
Employee Retirement and Severance Benefits (Reconciliations of Beginning and Ending Balances of Benefit Obligations and Fair Value of Plan Assets) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Japan | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | ¥ 929,630 | ¥ 906,007 | |
Service cost | 31,241 | 30,889 | ¥ 29,367 |
Interest cost | 5,419 | 5,689 | 8,238 |
Actuarial (gain) loss | (1,844) | 11,112 | |
Benefits paid | (33,477) | (29,020) | |
Acquisition | 4,239 | ||
Plan amendments | (3,963) | 1,149 | |
Curtailments and settlements | (435) | ||
Projected benefit obligations at end of year | 927,006 | 929,630 | 906,007 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 735,513 | 667,436 | |
Actual return on plan assets | (38,010) | 47,376 | |
Employer contributions | 12,651 | 43,468 | |
Benefits paid | (27,459) | (23,967) | |
Acquisition | 1,223 | ||
Settlements | (23) | ||
Fair value of plan assets at end of year | 682,695 | 735,513 | 667,436 |
Funded status at end of year | (244,311) | (194,117) | |
Foreign Plans | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | 423,579 | 392,086 | |
Service cost | 7,982 | 6,962 | 6,816 |
Interest cost | 8,691 | 8,691 | 8,792 |
Plan participants' contributions | 1,535 | 1,644 | |
Actuarial (gain) loss | (24,297) | (1,760) | |
Benefits paid | (10,135) | (7,884) | |
Plan amendments | 3,257 | (1,069) | |
Curtailments and settlements | (1,149) | ||
Foreign currency exchange rate changes | (23,514) | 24,909 | |
Projected benefit obligations at end of year | 385,949 | 423,579 | 392,086 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 254,020 | 224,939 | |
Actual return on plan assets | (6,042) | 14,262 | |
Employer contributions | 22,393 | 7,160 | |
Plan participants' contributions | 1,535 | 1,644 | |
Benefits paid | (10,135) | (7,884) | |
Settlements | (1,150) | ||
Foreign currency exchange rate changes | (11,979) | 13,899 | |
Fair value of plan assets at end of year | 248,642 | 254,020 | ¥ 224,939 |
Funded status at end of year | ¥ (137,307) | ¥ (169,559) |
Employee Retirement and Sever_4
Employee Retirement and Severance Benefits - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |
Employee Benefits Disclosure [Line Items] | ||||
Fair value of securities at the time of contribution | ¥ 30,473 | |||
Multiemployer pension plan contribution | ¥ 4,452 | ¥ 4,165 | ¥ 3,482 | |
Multiemployer plans collective bargaining arrangements, percentage of contribution | 102.00% | |||
Defined contribution pension plans, cost recognized | 19,570 | ¥ 18,979 | 17,603 | |
Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | 1,451 | |||
Japan | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | 682,695 | 735,513 | 667,436 | |
Japan | Scenario, Forecast | ||||
Employee Benefits Disclosure [Line Items] | ||||
Expected contribution in defined benefit pension plan for the year ending December 31, 2018 | ¥ 13,089 | |||
Japan | Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 1,451 | |||
Japan | Equity Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 25.00% | |||
Japan | Debt Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 50.00% | |||
Japan | Life Insurance Company General Accounts | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 25.00% | |||
Fair value of plan assets | ¥ 123,747 | 126,985 | ||
Foreign Plans | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 248,642 | 254,020 | ¥ 224,939 | |
Foreign Plans | Scenario, Forecast | ||||
Employee Benefits Disclosure [Line Items] | ||||
Expected contribution in defined benefit pension plan for the year ending December 31, 2018 | ¥ 19,311 | |||
Foreign Plans | Equity Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 35.00% | |||
Foreign Plans | Debt Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 25.00% | |||
Foreign Plans | Life Insurance Company General Accounts | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 9,019 | ¥ 8,683 | ||
Foreign Plans | Real estate assets | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 40.00% |
Employee Retirement and Sever_5
Employee Retirement and Severance Benefits (Amounts Recognized in Consolidated Balance Sheets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension and severance cost | ¥ (382,789) | ¥ (365,582) |
Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 1,536 | 1,695 |
Accrued expenses | (679) | |
Accrued pension and severance cost | (245,168) | (195,812) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | (244,311) | (194,117) |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 1,306 | 1,215 |
Accrued expenses | (992) | (1,004) |
Accrued pension and severance cost | (137,621) | (169,770) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | ¥ (137,307) | ¥ (169,559) |
Employee Retirement and Sever_6
Employee Retirement and Severance Benefits (Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Before Effect of Income Taxes) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Japan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | ¥ 267,355 | ¥ 221,106 |
Prior service credit | (48,392) | (57,430) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax, Total | 218,963 | 163,676 |
Foreign Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | 95,121 | 105,883 |
Prior service credit | (227) | (3,638) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax, Total | ¥ 94,894 | ¥ 102,245 |
Employee Retirement and Sever_7
Employee Retirement and Severance Benefits (Accumulated Benefit Obligation for All Defined Benefit Plans) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 893,154 | ¥ 894,329 |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 371,653 | ¥ 402,390 |
Employee Retirement and Sever_8
Employee Retirement and Severance Benefits (Pension Plans with Projected and Accumulated Benefit Obligations in Excess of Plan Assets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Japan | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | ¥ 918,736 | ¥ 924,536 |
Fair value of plan assets | 672,889 | 728,724 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 891,204 | 889,652 |
Fair value of plan assets | 670,826 | 728,724 |
Foreign Plans | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | 384,167 | 420,383 |
Fair value of plan assets | 245,554 | 249,609 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 369,215 | 394,840 |
Fair value of plan assets | ¥ 244,826 | ¥ 245,247 |
Employee Retirement and Sever_9
Employee Retirement and Severance Benefits (Components of Net Periodic Benefit Cost) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | ¥ 31,241 | ¥ 30,889 | ¥ 29,367 |
Interest cost | 5,419 | 5,689 | 8,238 |
Expected return on plan assets | (21,983) | (20,493) | (19,443) |
Amortization of prior service credit | (13,001) | (12,860) | (13,230) |
Amortization of actuarial loss | 11,900 | 14,220 | 10,944 |
(Gain) loss on curtailments and settlements | (63) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 13,576 | 17,382 | 15,876 |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 7,982 | 6,962 | 6,816 |
Interest cost | 8,691 | 8,691 | 8,792 |
Expected return on plan assets | (12,601) | (10,722) | (10,012) |
Amortization of prior service credit | (217) | (83) | 85 |
Amortization of actuarial loss | 5,108 | 5,747 | 2,185 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | ¥ 8,963 | ¥ 10,595 | ¥ 7,866 |
Employee Retirement and Seve_10
Employee Retirement and Severance Benefits (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, other comprehensive income loss adjustment before tax | ¥ 47,936 | ¥ (27,996) | ¥ 95,723 |
Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | 58,149 | (15,771) | 53,076 |
Current year prior service credit | (3,963) | 1,149 | (4,734) |
Amortization of actuarial loss | (11,900) | (14,220) | (10,944) |
Amortization of prior service credit | 13,001 | 12,860 | 13,230 |
Curtailments and settlements | 19 | ||
Defined benefit plan, other comprehensive income loss adjustment before tax | 55,287 | (15,963) | 50,628 |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | (5,654) | (5,300) | 47,365 |
Current year prior service credit | 3,257 | (1,069) | |
Amortization of actuarial loss | (5,108) | (5,747) | (2,185) |
Amortization of prior service credit | 217 | 83 | (85) |
Curtailments and settlements | (63) | ||
Defined benefit plan, other comprehensive income loss adjustment before tax | ¥ (7,351) | ¥ (12,033) | ¥ 45,095 |
Employee Retirement and Seve_11
Employee Retirement and Severance Benefits (Summary of Defined Benefit Pension Plans Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Cost over Next Year) (Detail) ¥ in Millions | Dec. 31, 2018JPY (¥) |
Japan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | ¥ (11,887) |
Actuarial loss | 15,230 |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (57) |
Actuarial loss | ¥ 4,852 |
Employee Retirement and Seve_12
Employee Retirement and Severance Benefits (Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Japan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 0.60% | 0.60% | |
Assumed rate of increase in future compensation levels | 2.60% | 2.60% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 0.60% | 0.70% | 1.10% |
Assumed rate of increase in future compensation levels | 2.60% | 2.60% | 3.00% |
Expected long-term rate of return on plan assets | 2.90% | 3.10% | 3.10% |
Foreign Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.40% | 2.20% | |
Assumed rate of increase in future compensation levels | 1.90% | 1.80% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.20% | 2.20% | 3.00% |
Assumed rate of increase in future compensation levels | 1.80% | 2.10% | 2.00% |
Expected long-term rate of return on plan assets | 4.40% | 4.20% | 4.40% |
Employee Retirement and Seve_13
Employee Retirement and Severance Benefits (Fair Values of Company's Pension Plans Assets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Fair Value, Inputs, Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | ¥ 1,451 | |||||
Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 682,695 | ¥ 735,513 | ¥ 667,436 | |||
Japan | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [1] | 137,712 | 164,946 | |||
Japan | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [2] | 137,858 | 138,092 | |||
Japan | Japanese Companies Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 67,283 | [3] | 83,765 | [4] | ||
Japan | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 5,451 | 8,261 | ||||
Japan | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,483 | 1,166 | ||||
Japan | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 12,595 | 15,246 | ||||
Japan | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 140,712 | [5] | 130,507 | [6] | ||
Japan | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 8,489 | 8,076 | ||||
Japan | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 123,747 | 126,985 | ||||
Japan | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 31,460 | 43,070 | ||||
Japan | Investment Measured at Net Asset Value | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 15,905 | 15,399 | ||||
Japan | Fair Value, Inputs, Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 210,592 | 230,118 | ||||
Japan | Fair Value, Inputs, Level 1 | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [2] | 137,858 | 138,092 | |||
Japan | Fair Value, Inputs, Level 1 | Japanese Companies Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 67,283 | [3] | 83,765 | [4] | ||
Japan | Fair Value, Inputs, Level 1 | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 5,451 | 8,261 | ||||
Japan | Fair Value, Inputs, Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 454,747 | 489,996 | ||||
Japan | Fair Value, Inputs, Level 2 | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [1] | 137,712 | 164,946 | |||
Japan | Fair Value, Inputs, Level 2 | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,483 | 1,166 | ||||
Japan | Fair Value, Inputs, Level 2 | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 12,595 | 15,246 | ||||
Japan | Fair Value, Inputs, Level 2 | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 140,712 | [5] | 130,507 | [6] | ||
Japan | Fair Value, Inputs, Level 2 | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 8,489 | 8,076 | ||||
Japan | Fair Value, Inputs, Level 2 | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 123,747 | 126,985 | ||||
Japan | Fair Value, Inputs, Level 2 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 30,009 | 43,070 | ||||
Japan | Fair Value, Inputs, Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,451 | |||||
Japan | Fair Value, Inputs, Level 3 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,451 | |||||
Foreign Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 248,642 | 254,020 | ¥ 224,939 | |||
Foreign Plans | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [1] | 49,312 | 73,968 | |||
Foreign Plans | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [2] | 9,343 | ||||
Foreign Plans | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 8,567 | 32,240 | ||||
Foreign Plans | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 2,642 | 2,901 | ||||
Foreign Plans | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 6,318 | 22,045 | ||||
Foreign Plans | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 59,419 | [5] | 25,821 | [6] | ||
Foreign Plans | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 3 | |||||
Foreign Plans | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 9,019 | 8,683 | ||||
Foreign Plans | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 95,844 | 73,320 | ||||
Foreign Plans | Investment Measured at Net Asset Value | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 17,521 | 5,696 | ||||
Foreign Plans | Fair Value, Inputs, Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 8,567 | 41,583 | ||||
Foreign Plans | Fair Value, Inputs, Level 1 | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [2] | 9,343 | ||||
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 | 8,567 | 32,240 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 222,554 | 206,741 | ||||
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 | [1] | 49,312 | 73,968 | |||
Foreign Plans | Fair Value, Inputs, Level 2 | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 2,642 | 2,901 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 6,318 | 22,045 | ||||
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 | 59,419 | [5] | 25,821 | [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 | 3 | |||||
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 | 9,019 | 8,683 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | ¥ 95,844 | ¥ 73,320 | ||||
[1] | These funds invest in listed equity securities consisting of approximately 30% Japanese companies and 70% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. | |||||
[2] | This class includes approximately 90% Japanese government bonds and 10% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. | |||||
[3] | The plan's equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥147 million. | |||||
[4] | The plan's equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥381 million. | |||||
[5] | These funds invest in approximately 30% Japanese government bonds, 50% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 35% foreign government bonds and 65% corporate bonds for foreign plans. | |||||
[6] | These funds invest in approximately 30% Japanese government bonds, 45% foreign government bonds, 5% Japanese municipal bonds, and 20% corporate bonds for Japanese plans. These funds invest in approximately 70% foreign government bonds and 30% corporate bonds for foreign plans. |
Employee Retirement and Seve_14
Employee Retirement and Severance Benefits (Fair Values of Company's Pension Plans Assets) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pooled Equity Securities Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount of Employer and Related Party Securities Included in Plan Assets | ¥ 147 | ¥ 381 |
Pooled Equity Securities Funds | Japanese Companies Equity Securities | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 30.00% | 30.00% |
Pooled Equity Securities Funds | Foreign Corporate Equity Securities | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 70.00% | 70.00% |
Government Bonds | Japanese Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 90.00% | 90.00% |
Government Bonds | Foreign Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 10.00% | 10.00% |
Pooled Debt Securities Funds | Japanese Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 30.00% | 30.00% |
Pooled Debt Securities Funds | Foreign Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 50.00% | 45.00% |
Pooled Debt Securities Funds | Foreign Government Bonds | Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 35.00% | 70.00% |
Pooled Debt Securities Funds | Japanese Municipal Bonds Securities | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 5.00% | 5.00% |
Pooled Debt Securities Funds | Corporate Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 15.00% | 20.00% |
Pooled Debt Securities Funds | Corporate Bonds | Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 65.00% | 30.00% |
Employee Retirement and Seve_15
Employee Retirement and Severance Benefits (Estimated Future Benefit Payments) (Detail) ¥ in Millions | Dec. 31, 2018JPY (¥) |
Japan | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2019 | ¥ 35,604 |
Year ending December 31, 2020 | 36,896 |
Year ending December 31, 2021 | 38,524 |
Year ending December 31, 2022 | 41,775 |
Year ending December 31, 2023 | 43,119 |
Year ending December 31, 2024 - 2028 | 226,704 |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2019 | 12,077 |
Year ending December 31, 2020 | 12,214 |
Year ending December 31, 2021 | 13,221 |
Year ending December 31, 2022 | 13,927 |
Year ending December 31, 2023 | 14,562 |
Year ending December 31, 2024 - 2028 | ¥ 87,006 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Income Taxes and Current and Deferred Income Tax Expense) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Income before income taxes | ¥ 362,892 | ¥ 353,884 | ¥ 244,651 |
Income taxes: | |||
Current | 107,999 | 115,627 | 75,493 |
Deferred | (11,849) | (17,603) | 7,188 |
Income taxes | 96,150 | 98,024 | 82,681 |
Domestic Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 241,474 | 276,149 | 135,131 |
Income taxes: | |||
Current | 75,556 | 80,225 | 47,687 |
Deferred | (6,552) | (7,453) | 4,126 |
Income taxes | 69,004 | 72,772 | 51,813 |
Foreign Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 121,418 | 77,735 | 109,520 |
Income taxes: | |||
Current | 32,443 | 35,402 | 27,806 |
Deferred | (5,297) | (10,150) | 3,062 |
Income taxes | ¥ 27,146 | ¥ 25,252 | ¥ 30,868 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Effective income tax rate | 31.00% | 31.00% | 33.00% |
Net increase (decrease) in the total valuation allowance | ¥ (49) | ¥ 4,096 | ¥ (6,244) |
Net operating losses which can be carried forward for income tax purposes to reduce future taxable income | 186,114 | ||
Deferred tax liabilities not recognized for a portion of undistributed earnings of foreign subsidiaries | 27,278 | ||
Undistributed earnings of subsidiaries for which tax liabilities were not recognized earlier | 1,001,310 | ||
Total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized | ¥ 8,649 | ¥ 10,282 | |
UNITED STATES | Foreign Country | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 21.00% | 35.00% | |
Adjustment in net deferred tax assets | ¥ 14,563 | ||
Reduction in Taxes | |||
Income Taxes [Line Items] | |||
Adjustments of deferred tax assets and liabilities for amendments to the Japanese tax regulations | ¥ 3,498 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Japanese Statutory Income Tax Rate and Effective Income Tax Rate) (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
Japanese statutory income tax rate | 31.00% | 31.00% | 33.00% | |
Increase (reduction) in income taxes resulting from: | ||||
Expenses not deductible for tax purposes | [1] | 0.70% | 3.70% | 0.80% |
Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate | (3.00%) | (2.10%) | (3.00%) | |
Tax credit for research and development expenses | (3.40%) | (4.80%) | (3.00%) | |
Change in valuation allowance | 0.40% | 1.70% | (0.80%) | |
Effect of enacted changes in tax laws and rates on Japanese tax | 1.40% | |||
Effect of enacted changes in U.S. tax laws | (3.60%) | |||
Other | 0.80% | 1.80% | 5.40% | |
Effective income tax rate | 26.50% | 27.70% | 33.80% | |
[1] | Expenses not deductible for tax purposes for the year ended December 31, 2017 primarily consist of impairment losses on goodwill. |
Income Taxes (Captions of Net D
Income Taxes (Captions of Net Deferred Income Tax Assets and Liabilities Included in Consolidated Balance Sheets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Other assets | ¥ 160,541 | ¥ 150,854 |
Other noncurrent liabilities | (70,336) | (90,010) |
Net deferred tax assets | ¥ 90,205 | ¥ 60,844 |
Income Taxes (Tax Effects of Te
Income Taxes (Tax Effects of Temporary Differences to Deferred Tax Assets and Deferred Tax Liabilities) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Inventories | ¥ 10,739 | ¥ 11,921 |
Accrued business tax | 2,361 | 4,705 |
Accrued pension and severance cost | 105,933 | 98,114 |
Research and development - costs capitalized for tax purposes | 4,690 | 5,383 |
Property, plant and equipment | 33,738 | 33,488 |
Accrued expenses | 28,015 | 30,126 |
Net operating losses carried forward | 28,549 | 29,006 |
Other | 38,683 | 38,526 |
Deferred Tax Assets, Gross, Total | 252,708 | 251,269 |
Less valuation allowance | (30,734) | (30,783) |
Total deferred tax assets | 221,974 | 220,486 |
Deferred tax liabilities: | ||
Undistributed earnings of foreign subsidiaries | (7,615) | (9,859) |
Tax deductible reserve | (4,050) | (4,396) |
Financing lease revenue | (26,441) | (38,287) |
Intangible assets | (66,189) | (74,377) |
Other | (27,474) | (32,723) |
Total deferred tax liabilities | (131,769) | (159,642) |
Net deferred tax assets | ¥ 90,205 | ¥ 60,844 |
Income Taxes (Amounts and Perio
Income Taxes (Amounts and Period Ranges of Operating Losses Carried Forward Available to Reduce Future Taxable Income) (Detail) ¥ in Millions | Dec. 31, 2018JPY (¥) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 186,114 |
Within one year | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 5,854 |
After one year through five years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 26,802 |
After five years through ten years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 38,687 |
After ten years through twenty years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 48,642 |
Indefinite period | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 66,129 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Income Tax Disclosure [Abstract] | ||||||
Balance at beginning of year | ¥ 10,282 | [1] | ¥ 7,318 | [1] | ¥ 6,056 | |
Additions for tax positions of the current year | 45 | 2,956 | 2,741 | |||
Additions for tax positions of prior years | 178 | 250 | ||||
Reductions for tax positions of prior years | (17) | (915) | (665) | |||
Settlements with tax authorities | (1,286) | (370) | ||||
Other | (553) | 673 | (444) | |||
Balance at end of year | [1] | 8,649 | 10,282 | 7,318 | ||
Unrecognized tax benefits, offset | ¥ 2,043 | ¥ 124 | ¥ 32 | |||
[1] | The total amounts of unrecognized tax benefits presented in other noncurrent liabilities in the consolidated balance sheets were offset by deferred tax assets in the amount of ¥2,043 million, ¥124 million and ¥32 million as of December 31, 2018, 2017 and 2016. |
Legal Reserve and Retained Ea_2
Legal Reserve and Retained Earnings - Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2018JPY (¥) | |
Uncategorized [Abstract] | |
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 | ¥ 86,380 |
Amount available for dividends under the Corporation Law of Japan | 984,692 |
Retained earnings included Canon's equity in undistributed earnings of affiliated companies accounted for by the equity method | ¥ 18,265 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Changes in Accumulated Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | ¥ 3,096,175 | ¥ 2,994,622 | ¥ 3,184,463 |
Equity transactions with noncontrolling interests and other | (37,715) | (4,985) | |
Net change during the period | (123,369) | 61,523 | (179,972) |
Balance at end of year | 3,017,913 | 3,096,175 | 2,994,622 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 30,208 | (13,960) | 87,038 |
Equity transactions with noncontrolling interests and other | (4,200) | 259 | |
Other comprehensive income (loss) before reclassifications | (89,823) | 44,184 | (101,350) |
Amounts reclassified from accumulated other comprehensive income (loss) | (16) | 93 | |
Net change during the period | (94,023) | 44,168 | (100,998) |
Balance at end of year | (63,815) | 30,208 | (13,960) |
Unrealized gains and losses on securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 5,484 | 15,251 | 14,055 |
Other comprehensive income (loss) before reclassifications | 2,813 | 814 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (141) | (12,580) | 382 |
Net change during the period | (5,484) | (9,767) | 1,196 |
Balance at end of year | 5,484 | 15,251 | |
Unrealized gains and losses on securities | ASU 2016-01 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative effects of accounting standard update - adoption of ASU No. 2016-01 | (5,343) | ||
Gains and losses on derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (180) | (2,742) | 182 |
Other comprehensive income (loss) before reclassifications | (457) | (1,452) | 938 |
Amounts reclassified from accumulated other comprehensive income (loss) | 945 | 4,014 | (3,862) |
Net change during the period | 488 | 2,562 | (2,924) |
Balance at end of year | 308 | (180) | (2,742) |
Pension liability adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (178,740) | (198,430) | (131,017) |
Equity transactions with noncontrolling interests and other | (1) | ||
Other comprehensive income (loss) before reclassifications | (29,909) | 14,785 | (67,511) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,085 | 4,905 | 99 |
Net change during the period | (26,824) | 19,690 | (67,413) |
Balance at end of year | (205,564) | (178,740) | (198,430) |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (143,228) | (199,881) | (29,742) |
Equity transactions with noncontrolling interests and other | (4,200) | 258 | |
Other comprehensive income (loss) before reclassifications | (120,189) | 60,330 | (167,109) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,889 | (3,677) | (3,288) |
Net change during the period | (125,843) | 56,653 | (170,139) |
Balance at end of year | (269,071) | ¥ (143,228) | ¥ (199,881) |
AOCI Attributable to Parent | ASU 2016-01 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative effects of accounting standard update - adoption of ASU No. 2016-01 | ¥ (5,343) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | ¥ (14,133) | ¥ (27,085) | ¥ (24,525) | |
Income taxes | 96,150 | 98,024 | 82,681 | |
Consolidated net income | (266,742) | (255,860) | (161,970) | |
Net income attributable to noncontrolling interests | 13,987 | 13,937 | 11,320 | |
Net income attributable to Canon Inc. | (252,755) | (241,923) | (150,650) | |
Total amount reclassified, net of tax and noncontrolling interests | [1] | 3,889 | (3,677) | (3,288) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | (39) | 139 | |
Income taxes | [1] | 12 | (46) | |
Consolidated net income | [1] | (27) | 93 | |
Net income attributable to noncontrolling interests | [1] | 11 | ||
Net income attributable to Canon Inc. | [1] | (16) | 93 | |
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] | (178) | (18,472) | 282 |
Income taxes | [1] | 37 | 5,727 | (94) |
Consolidated net income | [1] | (141) | (12,745) | 188 |
Net income attributable to noncontrolling interests | [1] | 165 | 194 | |
Net income attributable to Canon Inc. | [1] | (141) | (12,580) | 382 |
Reclassification out of Accumulated Other Comprehensive Income | Gains and losses on derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | 1,341 | 5,772 | (5,890) |
Income taxes | [1] | (392) | (1,732) | 2,049 |
Consolidated net income | [1] | 949 | 4,040 | (3,841) |
Net income attributable to noncontrolling interests | [1] | (4) | (26) | (21) |
Net income attributable to Canon Inc. | [1] | 945 | 4,014 | (3,862) |
Reclassification out of Accumulated Other Comprehensive Income | Pension liability adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | 3,853 | 7,005 | (16) |
Income taxes | [1] | (699) | (1,832) | 164 |
Consolidated net income | [1] | 3,154 | 5,173 | 148 |
Net income attributable to noncontrolling interests | [1] | (69) | (268) | (49) |
Net income attributable to Canon Inc. | [1] | ¥ 3,085 | ¥ 4,905 | ¥ 99 |
[1] | Amounts in parentheses indicate gains in consolidated statements of income. |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) (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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign currency translation adjustments, Before-tax amount | |||
Amount arising during the year, Before-tax amount | ¥ (93,955) | ¥ 47,825 | ¥ (108,280) |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | (39) | 139 | |
Net change during the year, Before-tax amount | (93,955) | 47,786 | (108,141) |
Net unrealized gains and losses on securities, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | 5,100 | 1,184 | |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | (178) | (18,472) | 282 |
Net change during the year, Before-tax amount | (178) | (13,372) | 1,466 |
Net gains and losses on derivative instruments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | (586) | (2,080) | 1,619 |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 1,341 | 5,772 | (5,890) |
Net change during the year, Before-tax amount | 755 | 3,692 | (4,271) |
Pension liability adjustments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | (51,789) | 20,991 | (95,707) |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 3,853 | 7,005 | (16) |
Net change during the year, Before-tax amount | (47,936) | 27,996 | (95,723) |
Other Comprehensive Income (Loss), Before-tax amount | (141,314) | 66,102 | (206,669) |
Foreign currency translation adjustments, Tax (expense) or benefit | |||
Amount arising during the year, Tax (expense) or benefit | 809 | (708) | 521 |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | 12 | (46) | |
Net change during the year, Tax (expense) or benefit | 809 | (696) | 475 |
Net unrealized gains and losses on securities, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | (1,717) | (375) | |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | 37 | 5,727 | (94) |
Net change during the year, Tax (expense) or benefit | 37 | 4,010 | (469) |
Net gains and losses on derivative instruments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | 125 | 628 | (726) |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (392) | (1,732) | 2,049 |
Net change during the year, Tax (expense) or benefit | (267) | (1,104) | 1,323 |
Pension liability adjustments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | 18,065 | (4,957) | 25,204 |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (699) | (1,832) | 164 |
Net change during the year, Tax (expense) or benefit | 17,366 | (6,789) | 25,368 |
Other comprehensive income (loss), Tax (expense) or benefit | 17,945 | (4,579) | 26,697 |
Foreign currency translation adjustments, Net-of-tax amount | |||
Amount arising during the year, Net-of-tax amount | (93,146) | 47,117 | (107,759) |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | (27) | 93 | |
Net change during the year, Net-of-tax amount | (93,146) | 47,090 | (107,666) |
Net unrealized gains and losses on securities, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | 3,383 | 809 | |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | (141) | (12,745) | 188 |
Net change during the year, Net-of-tax amount | (141) | (9,362) | 997 |
Net gains and losses on derivative instruments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | (461) | (1,452) | 893 |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 949 | 4,040 | (3,841) |
Net change during the year, Net-of-tax amount | 488 | 2,588 | (2,948) |
Pension liability adjustments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | (33,724) | 16,034 | (70,503) |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 3,154 | 5,173 | 148 |
Net change during the year, Net-of-tax amount | (30,570) | 21,207 | (70,355) |
Other comprehensive income (loss), Net-of-tax amount | ¥ (123,369) | ¥ 61,523 | ¥ (179,972) |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenues from leasing arrangements | 4.00% | |||
Operating expenses | ¥ (1,492,602) | ¥ (1,668,949) | ¥ (1,455,573) | |
Contract assets | 50,799 | |||
Deferred revenue, revenue recognized | 104,678 | |||
Revenue remaining performance obligation | ¥ 72,708 | |||
Revenue remaining performance obligation, percentage within a year | 75.00% | |||
Revenue remaining performance obligation, percentage within two year | 25.00% | |||
Fixed maintenance service contract as percentage of service revenue | 11.00% | |||
Fixed maintenance service contract remaining period | 2 years | |||
Other Current Liabilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | ¥ 123,686 | ¥ 125,965 | ||
Office Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract assets | ¥ 42,915 | |||
Effect of Change | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating expenses | ¥ 115,700 |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregated Revenue By Timing) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | ¥ 3,951,937 | ¥ 4,080,015 | ¥ 3,401,487 |
Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,804,002 | 1,802,542 | 1,743,039 |
Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,007,365 | 1,135,584 | 1,094,291 |
Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 437,305 | 434,985 | |
Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 703,265 | 706,904 | 564,157 |
Revenue Recognized at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,078,663 | ||
Revenue Recognized Overtime | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 873,274 | ||
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,951,937 | 4,080,015 | 3,401,487 |
Operating Segments | Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,807,301 | 1,804,782 | 1,745,996 |
Operating Segments | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,008,165 | 1,136,188 | 1,095,289 |
Operating Segments | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 437,578 | 436,187 | |
Operating Segments | Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 805,211 | 792,850 | 646,483 |
Operating Segments | Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (106,318) | (89,992) | (86,281) |
Operating Segments | Revenue Recognized at a Point in Time | Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,286,100 | ||
Operating Segments | Revenue Recognized at a Point in Time | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 993,658 | ||
Operating Segments | Revenue Recognized at a Point in Time | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 305,457 | ||
Operating Segments | Revenue Recognized at a Point in Time | Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 599,766 | ||
Operating Segments | Revenue Recognized Overtime | Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 521,201 | ||
Operating Segments | Revenue Recognized Overtime | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 14,507 | ||
Operating Segments | Revenue Recognized Overtime | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 132,121 | ||
Operating Segments | Revenue Recognized Overtime | Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 205,445 | ||
Intersegment Eliminations | Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,299 | 2,240 | 2,957 |
Intersegment Eliminations | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 800 | 604 | 998 |
Intersegment Eliminations | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 273 | 1,202 | |
Intersegment Eliminations | Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 101,946 | 85,946 | 82,326 |
Intersegment Eliminations | Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (106,318) | ¥ (89,992) | ¥ (86,281) |
Intersegment Eliminations | Revenue Recognized at a Point in Time | Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | ¥ (106,318) |
Revenue (Schedule of Impact of
Revenue (Schedule of Impact of Adoption of Revenue Standard on Consolidated Financial Statements) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets | ||||
Trade receivables, net | ¥ 612,953 | ¥ 650,872 | ||
Inventories | 611,281 | 570,033 | ||
Prepaid expenses and other current assets | 304,346 | 287,965 | ||
Other assets | 397,974 | 397,564 | ||
Total assets | 4,899,465 | 5,198,291 | ¥ 5,138,529 | |
Liabilities and equity | ||||
Accrued expenses | 321,137 | 330,188 | ||
Other current liabilities | 276,237 | 281,809 | ||
Total liabilities | 1,881,552 | 2,102,116 | ||
Retained earnings | 3,508,908 | 3,429,312 | ||
Noncontrolling interests | 190,311 | 225,545 | ||
Total equity | 3,017,913 | 3,096,175 | 2,994,622 | ¥ 3,184,463 |
Net sales | 3,951,937 | 4,080,015 | 3,401,487 | |
Cost of Sales | 2,116,383 | 2,089,461 | 1,729,489 | |
Gross profit | 1,835,554 | 1,990,554 | 1,671,998 | |
Selling, general and administrative expenses | 1,176,760 | 1,301,666 | 1,149,036 | |
Operating profit | 342,952 | 321,605 | 216,425 | |
Income before income taxes | 362,892 | 353,884 | 244,651 | |
Income taxes | 96,150 | 98,024 | 82,681 | |
Consolidated net income | 266,742 | 255,860 | 161,970 | |
Less: Net income attributable to noncontrolling interests | 13,987 | 13,937 | 11,320 | |
Net income attributable to Canon Inc. | 252,755 | 241,923 | 150,650 | |
Products And Equipment | ||||
Liabilities and equity | ||||
Net sales | 3,194,724 | 3,521,156 | 2,986,188 | |
Cost of Sales | 1,762,171 | 1,875,581 | 1,574,679 | |
Services | ||||
Liabilities and equity | ||||
Net sales | 757,213 | 558,859 | 415,299 | |
Cost of Sales | 354,212 | ¥ 213,880 | ¥ 154,810 | |
ASU 2014-09 | Balances/Amount Under Historical Accounting Policy | ||||
Assets | ||||
Trade receivables, net | 657,419 | |||
Inventories | 614,243 | |||
Prepaid expenses and other current assets | 253,547 | |||
Other assets | 397,949 | |||
Total assets | 4,896,069 | |||
Liabilities and equity | ||||
Accrued expenses | 319,416 | |||
Other current liabilities | 274,741 | |||
Total liabilities | 1,878,335 | |||
Retained earnings | 3,508,704 | |||
Noncontrolling interests | 190,336 | |||
Total equity | 3,017,734 | |||
Net sales | 3,951,148 | |||
Cost of Sales | 2,000,311 | |||
Gross profit | 1,950,837 | |||
Selling, general and administrative expenses | 1,292,460 | |||
Operating profit | 342,535 | |||
Income before income taxes | 362,475 | |||
Income taxes | 96,094 | |||
Consolidated net income | 266,381 | |||
Less: Net income attributable to noncontrolling interests | 13,936 | |||
Net income attributable to Canon Inc. | 252,445 | |||
ASU 2014-09 | Effect of Change | ||||
Assets | ||||
Trade receivables, net | (44,466) | |||
Inventories | (2,962) | |||
Prepaid expenses and other current assets | 50,799 | |||
Other assets | 25 | |||
Total assets | 3,396 | |||
Liabilities and equity | ||||
Accrued expenses | 1,721 | |||
Other current liabilities | 1,496 | |||
Total liabilities | 3,217 | |||
Retained earnings | 204 | |||
Noncontrolling interests | (25) | |||
Total equity | 179 | |||
Net sales | 789 | |||
Cost of Sales | 116,072 | |||
Gross profit | (115,283) | |||
Selling, general and administrative expenses | (115,700) | |||
Operating profit | 417 | |||
Income before income taxes | 417 | |||
Income taxes | 56 | |||
Consolidated net income | 361 | |||
Less: Net income attributable to noncontrolling interests | 51 | |||
Net income attributable to Canon Inc. | 310 | |||
ASU 2014-09 | Products And Equipment | Balances/Amount Under Historical Accounting Policy | ||||
Liabilities and equity | ||||
Net sales | 3,383,566 | |||
Cost of Sales | 1,783,798 | |||
ASU 2014-09 | Products And Equipment | Effect of Change | ||||
Liabilities and equity | ||||
Net sales | (188,842) | |||
Cost of Sales | (21,627) | |||
ASU 2014-09 | Services | Balances/Amount Under Historical Accounting Policy | ||||
Liabilities and equity | ||||
Net sales | 567,582 | |||
Cost of Sales | 216,513 | |||
ASU 2014-09 | Services | Effect of Change | ||||
Liabilities and equity | ||||
Net sales | 189,631 | |||
Cost of Sales | ¥ 137,699 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | May 02, 2018 | May 01, 2011 | May 01, 2010 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2011 | Dec. 31, 2010 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Number of common stock shares authorized to be acquired under stock options granted | 74,000 | 912,000 | 890,000 | |||||
Exercisable period (in years) | 30 years | 4 years | 4 years | |||||
Grant-date fair value per share of stock options | ¥ 2,948 | ¥ 772 | ¥ 988 | |||||
Vesting period | 2 years | 2 years | ||||||
Recognized compensation cost for stock options | ¥ 218 | ¥ 0 | ¥ 0 | |||||
Fair value of shares vested | 218 | 0 | 0 | |||||
Cash received from the exercise of stock options | ¥ 0 | ¥ 0 | ¥ 0 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Fair Value Assumptions Used to Estimate Fair Value of Option) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected term of option (in years) | 6 years |
Expected volatility | 23.02% |
Dividend yield | 4.14% |
Risk-free interest rate | (0.07%) |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Option Activity Under Stock Option Plans) (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||||
Outstanding at beginning of year | 603,000 | 1,296,000 | ||
Granted | 74,000 | |||
Exercised | 0 | 0 | 0 | |
Forfeited/Expired | (603,000) | (693,000) | ||
Outstanding at end of year | 74,000 | 603,000 | 1,296,000 | |
Exercisable at end of year | 74,000 | |||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of year | ¥ 3,990 | ¥ 4,263 | ||
Granted | ¥ 1 | |||
Exercised | 0 | 0 | 0 | |
Forfeited/Expired | ¥ 3,990 | 4,500 | ||
Outstanding at end of year | 1 | ¥ 3,990 | ¥ 4,263 | |
Exercisable at end of year | ¥ 1 | |||
Weighted-Average Remaining Contractual Term | ||||
Outstanding at end of year | 2 months 12 days | 4 months 24 days | ||
Exercisable at end of year | 29 years 3 months 18 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at end of year | ¥ 222 | |||
Exercisable at end of year | ¥ 222 |
Net Income Attributable to Ca_3
Net Income Attributable to Canon Inc. Shareholders per Share (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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share Basic Numerator [Abstract] | |||
Net income attributable to Canon Inc. | ¥ 252,755 | ¥ 241,923 | ¥ 150,650 |
Average common shares outstanding | 1,079,753,008 | 1,085,439,370 | 1,092,070,680 |
Stock options | 49,319 | ||
Diluted common shares outstanding | 1,079,802,327 | 1,085,439,370 | 1,092,070,680 |
Net income attributable to Canon Inc. shareholders per share: | |||
Basic | ¥ 234.09 | ¥ 222.88 | ¥ 137.95 |
Diluted | ¥ 234.08 | ¥ 222.88 | ¥ 137.95 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Contract Amounts of Foreign Exchange Contracts) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
To sell foreign currencies | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 230,505 | ¥ 272,563 |
To buy foreign currencies | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 30,816 | ¥ 46,168 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Fair Value of Derivative Instruments in Consolidated Balance Sheets) (Detail) - Foreign Exchange Contract - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets designated as Hedging Instrument | ¥ 521 | ¥ 255 |
Derivative assets not designated as Hedging Instrument | 2,622 | 289 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities designated as hedging instruments | 323 | 367 |
Derivatives liabilities not designated as hedging instruments | ¥ 443 | ¥ 2,892 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Effect of Derivative Instruments in Consolidated Statements of Income) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | ¥ (586) | ¥ (2,080) | ¥ 1,619 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | (586) | (2,080) | 1,619 |
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (1,341) | (5,772) | 5,890 |
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | (682) | (332) | (311) |
Other Nonoperating Income Expense | Not Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income on derivative | ¥ 5,284 | ¥ (7,932) | ¥ 7,018 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Deposits made under lease arrangements included in noncurrent receivables | ¥ 12,728 | ¥ 13,740 | |
Rental expenses of cancelable and noncancelable operating leases | 49,394 | ¥ 47,619 | ¥ 42,714 |
Guarantees, maximum amount of undiscounted payments in case of borrower's default | ¥ 4,458 | ||
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 with lease obligations and bank loans | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee contract period | 1 year | ||
Affiliates and other companies with lease obligations and bank loans | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee contract period | 7 years | ||
Purchase of Property, Plant and Equipment | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Commitments outstanding | ¥ 54,905 | ||
Purchase of Parts and Raw Materials | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Commitments outstanding | ¥ 120,344 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Future Minimum Lease Payments Required Under Noncancelable Operating Leases) (Detail) ¥ in Millions | Dec. 31, 2018JPY (¥) |
Leases [Abstract] | |
2019 | ¥ 29,817 |
2020 | 23,402 |
2021 | 17,837 |
2022 | 13,565 |
2023 | 10,165 |
Thereafter | 20,298 |
Total future minimum lease payments | ¥ 115,084 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Changes in Accrued Product Warranty Costs) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of year | ¥ 17,452 | ¥ 13,168 |
Additions | 18,870 | 18,893 |
Utilization | (14,707) | (12,957) |
Other | (4,297) | (1,652) |
Balance at end of year | ¥ 17,318 | ¥ 17,452 |
Disclosures about the Fair Va_3
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk (Estimated Fair Values of Canon's Financial Instruments) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
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 | ¥ (364,602) | ¥ (499,168) |
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 | ¥ (364,570) | ¥ (499,126) |
Disclosures about the Fair Va_4
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Trade Receivables | Credit Concentration Risk from Single Customer | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 12.00% | 8.00% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) - Fair Value, Measurements, Recurring - JPY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and cash equivalents | ¥ 70,500 | ¥ 70,500 |
Prepaid expenses and other current assets: | ||
Derivatives | 3,143 | 544 |
Total assets | 89,098 | 94,402 |
Other current liabilities: | ||
Derivatives | 766 | 3,259 |
Total liabilities | 766 | 3,259 |
Corporate Bonds | ||
Short-term investments: | ||
Available-for-sale | 630 | 1,222 |
Investments: | ||
Available-for-sale | 822 | |
Government Bonds | ||
Investments: | ||
Available-for-sale | 289 | |
Fund Trusts and Others | ||
Investments: | ||
Available-for-sale | 1,038 | |
Equity Securities | ||
Investments: | ||
Available-for-sale | 13,787 | 20,901 |
Fund Trusts | ||
Investments: | ||
Available-for-sale | 124 | |
Fair Value, Inputs, Level 1 | ||
Prepaid expenses and other current assets: | ||
Total assets | 15,047 | 23,030 |
Fair Value, Inputs, Level 1 | Corporate Bonds | ||
Short-term investments: | ||
Available-for-sale | 630 | 1,222 |
Investments: | ||
Available-for-sale | 605 | |
Fair Value, Inputs, Level 1 | Government Bonds | ||
Investments: | ||
Available-for-sale | 289 | |
Fair Value, Inputs, Level 1 | Fund Trusts and Others | ||
Investments: | ||
Available-for-sale | 630 | |
Fair Value, Inputs, Level 1 | Equity Securities | ||
Investments: | ||
Available-for-sale | 13,787 | 20,901 |
Fair Value, Inputs, Level 1 | Fund Trusts | ||
Investments: | ||
Available-for-sale | 13 | |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and cash equivalents | 70,500 | 70,500 |
Prepaid expenses and other current assets: | ||
Derivatives | 3,143 | 544 |
Total assets | 74,051 | 71,372 |
Other current liabilities: | ||
Derivatives | 766 | 3,259 |
Total liabilities | 766 | 3,259 |
Fair Value, Inputs, Level 2 | Corporate Bonds | ||
Investments: | ||
Available-for-sale | 217 | |
Fair Value, Inputs, Level 2 | Fund Trusts and Others | ||
Investments: | ||
Available-for-sale | ¥ 408 | |
Fair Value, Inputs, Level 2 | Fund Trusts | ||
Investments: | ||
Available-for-sale | ¥ 111 |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Nonrecurring Basis) (Detail) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017JPY (¥) | ||
Asset: | ||
Goodwill | ¥ (33,912) | [1],[2] |
Fair Value, Measurements, Nonrecurring | ||
Asset: | ||
Goodwill | 29,370 | |
Asset: | ||
Goodwill | (33,912) | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Asset: | ||
Goodwill | ¥ 29,370 | |
[1] | After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit's fair value. | |
[2] | Based on the realignment of Canon's internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Measurement Input, Discount Rate | Fair Value, Inputs, Level 3 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value inputs measurement discounted cash flow method | 6.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018JPY (¥)Segment | Dec. 31, 2017JPY (¥) | Dec. 31, 2016JPY (¥) | |
Revenue, Major Customer [Line Items] | |||
Operating business segments | Segment | 4 | ||
Description of geographic concentration risk related to consolidated net sales | 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 | ¥ 3,951,937 | ¥ 4,080,015 | ¥ 3,401,487 |
UNITED STATES | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 995,245 | ¥ 1,022,305 | ¥ 884,083 |
Segment Information (Informatio
Segment Information (Information about Operating Results and Assets for Each Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net sales: | ||||
Net sales | ¥ 3,951,937 | ¥ 4,080,015 | ¥ 3,401,487 | |
Operating cost and expenses | 3,608,985 | 3,758,410 | 3,185,062 | |
Operating profit | 342,952 | 321,605 | 216,425 | |
Other income (deductions) | 19,940 | 32,279 | 28,226 | |
Income before income taxes | 362,892 | 353,884 | 244,651 | |
Total assets | 4,899,465 | 5,198,291 | 5,138,529 | |
Depreciation and amortization | 251,554 | 261,881 | 250,096 | |
Impairment losses on goodwill | [1],[2] | 33,912 | ||
Capital expenditures | 200,504 | 181,389 | 208,379 | |
Office Business Unit | ||||
Net sales: | ||||
Net sales | 1,804,002 | 1,802,542 | 1,743,039 | |
Operating cost and expenses | 1,586,497 | 1,615,521 | 1,583,588 | |
Operating profit | 220,804 | 189,261 | 162,408 | |
Other income (deductions) | 8,383 | 6,108 | 7,467 | |
Income before income taxes | 229,187 | 195,369 | 169,875 | |
Total assets | 923,261 | 946,213 | 947,602 | |
Depreciation and amortization | 64,964 | 72,346 | 76,500 | |
Impairment losses on goodwill | [1],[2] | 21,721 | ||
Capital expenditures | 48,127 | 46,769 | 71,841 | |
Imaging System Business Unit | ||||
Net sales: | ||||
Net sales | 1,007,365 | 1,135,584 | 1,094,291 | |
Operating cost and expenses | 891,210 | 962,663 | 953,567 | |
Operating profit | 116,955 | 173,525 | 141,722 | |
Other income (deductions) | 4,299 | 2,388 | 2,691 | |
Income before income taxes | 121,254 | 175,913 | 144,413 | |
Total assets | 393,004 | 387,088 | 391,661 | |
Depreciation and amortization | 40,541 | 41,695 | 47,386 | |
Capital expenditures | 25,796 | 28,508 | 25,564 | |
Medical System Business Unit | ||||
Net sales: | ||||
Net sales | 437,305 | 434,985 | ||
Operating cost and expenses | 408,739 | 414,246 | ||
Operating profit | 28,839 | 21,941 | ||
Other income (deductions) | 640 | 564 | ||
Income before income taxes | 29,479 | 22,505 | ||
Total assets | 247,282 | 238,824 | 204,755 | |
Depreciation and amortization | 9,365 | 5,212 | ||
Capital expenditures | 7,454 | 8,963 | ||
Industry and Others Business Unit | ||||
Net sales: | ||||
Net sales | 703,265 | 706,904 | 564,157 | |
Operating cost and expenses | 739,665 | 752,122 | 641,082 | |
Operating profit | 65,546 | 40,728 | 5,401 | |
Other income (deductions) | 2,061 | 1,339 | 1,658 | |
Income before income taxes | 67,607 | 42,067 | 7,059 | |
Total assets | 383,568 | 376,064 | 354,602 | |
Depreciation and amortization | 38,582 | 39,736 | 42,872 | |
Impairment losses on goodwill | [1],[2] | 12,191 | ||
Capital expenditures | 24,091 | 16,620 | 29,694 | |
Corporate and Eliminations | ||||
Net sales: | ||||
Operating cost and expenses | (17,126) | 13,858 | 6,825 | |
Operating profit | (89,192) | (103,850) | (93,106) | |
Other income (deductions) | 4,557 | 21,880 | 16,410 | |
Income before income taxes | (84,635) | (81,970) | (76,696) | |
Total assets | 2,952,350 | 3,250,102 | 3,239,909 | |
Depreciation and amortization | 98,102 | 102,892 | 83,338 | |
Capital expenditures | 95,036 | 80,529 | 81,280 | |
Operating Segments | ||||
Net sales: | ||||
Net sales | 3,951,937 | 4,080,015 | 3,401,487 | |
Operating Segments | Office Business Unit | ||||
Net sales: | ||||
Net sales | 1,807,301 | 1,804,782 | 1,745,996 | |
Operating Segments | Imaging System Business Unit | ||||
Net sales: | ||||
Net sales | 1,008,165 | 1,136,188 | 1,095,289 | |
Operating Segments | Medical System Business Unit | ||||
Net sales: | ||||
Net sales | 437,578 | 436,187 | ||
Operating Segments | Industry and Others Business Unit | ||||
Net sales: | ||||
Net sales | 805,211 | 792,850 | 646,483 | |
Operating Segments | Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | (106,318) | (89,992) | (86,281) | |
Intersegment Eliminations | Office Business Unit | ||||
Net sales: | ||||
Net sales | 3,299 | 2,240 | 2,957 | |
Intersegment Eliminations | Imaging System Business Unit | ||||
Net sales: | ||||
Net sales | 800 | 604 | 998 | |
Intersegment Eliminations | Medical System Business Unit | ||||
Net sales: | ||||
Net sales | 273 | 1,202 | ||
Intersegment Eliminations | Industry and Others Business Unit | ||||
Net sales: | ||||
Net sales | 101,946 | 85,946 | 82,326 | |
Intersegment Eliminations | Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | ¥ (106,318) | ¥ (89,992) | ¥ (86,281) | |
[1] | After entering the commercial printing business through the acquisition of Océ N.V. in 2010, the market environment surrounding this business has become significantly competitive and rapid technological changes have required increasing investments into R&D. These factors resulted in lower operating margin than expected, which led to the decline in the estimated fair value of this business which was determined based on the income approach. As the result of the annual goodwill impairment test as of October 1, 2017, it was determined that the estimated fair value of commercial printing business was less than its carrying value of the reporting unit. Based on the accounting policy described in Note 1, Canon recognized an impairment charge of ¥33,912 million representing the excess of the carrying amount over the reporting unit's fair value. | |||
[2] | Based on the realignment of Canon's internal reporting and management structure, from the beginning of the third quarter of 2018, Canon has reclassified certain businesses from Office Business Unit to Industry and Others Business Unit. The goodwill balance at the beginning of the year ended December 31, 2017 has been restated to reflect the transfer of ¥11,263 million in goodwill between the segments. Impairment loss of ¥12,191 million and translation adjustments and other of ¥928 million for the year ended December 31, 2017 related to the reclassified business were restated from Office Business Unit to Industry and Others Business Unit, accordingly. |
Segment Information (Product Sa
Segment Information (Product Sales to External Customers for Each Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 3,951,937 | ¥ 4,080,015 | ¥ 3,401,487 |
Office Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 1,804,002 | 1,802,542 | 1,743,039 |
Office Business Unit | Monochrome Copiers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 280,035 | 287,823 | 289,532 |
Office Business Unit | Color Copiers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 403,522 | 405,576 | 386,193 |
Office Business Unit | Printers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 702,378 | 702,491 | 664,846 |
Office Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 418,067 | 406,652 | 402,468 |
Imaging System Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 1,007,365 | 1,135,584 | 1,094,291 |
Imaging System Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 89,405 | 99,265 | 98,357 |
Imaging System Business Unit | Cameras | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 599,578 | 702,598 | 666,868 |
Imaging System Business Unit | Inkjet Printers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 318,382 | 333,721 | 329,066 |
Medical System Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 437,305 | 434,985 | |
Industry and Others Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 703,265 | 706,904 | 564,157 |
Industry and Others Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 503,543 | 513,791 | 443,067 |
Industry and Others Business Unit | Lithography Equipment | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 199,722 | ¥ 193,113 | ¥ 121,090 |
Segment Information (Informat_2
Segment Information (Information by Major Geographic Area) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales: | |||
Net sales | ¥ 3,951,937 | ¥ 4,080,015 | ¥ 3,401,487 |
Long-lived assets: | |||
Long-lived assets | 1,482,013 | 1,547,592 | 1,641,244 |
Japan | |||
Long-lived assets: | |||
Long-lived assets | 1,046,065 | 1,081,522 | 1,163,374 |
Americas | |||
Long-lived assets: | |||
Long-lived assets | 129,989 | 141,937 | 147,129 |
Europe | |||
Long-lived assets: | |||
Long-lived assets | 169,357 | 174,889 | 166,734 |
Asia and Oceania | |||
Long-lived assets: | |||
Long-lived assets | 136,602 | 149,244 | 164,007 |
Japan | |||
Net sales: | |||
Net sales | 869,577 | 884,828 | 706,979 |
America | |||
Net sales: | |||
Net sales | 1,076,402 | 1,107,515 | 963,544 |
Europe | |||
Net sales: | |||
Net sales | 1,015,428 | 1,028,415 | 913,523 |
Asia and Oceania | |||
Net sales: | |||
Net sales | ¥ 990,530 | ¥ 1,059,257 | ¥ 817,441 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade Receivables | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | ¥ 13,378 | ¥ 11,075 | ¥ 12,077 |
Addition- charged to income | 1,347 | 3,574 | 1,460 |
Deduction bad debts written off | (2,789) | (1,787) | (1,824) |
Translation adjustments and other | (459) | 516 | (638) |
Balance at end of period | 11,477 | 13,378 | 11,075 |
Finance Receivables | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 2,681 | 2,325 | 2,878 |
Addition- charged to income | 938 | 1,436 | 398 |
Deduction bad debts written off | (1,284) | (1,523) | (978) |
Translation adjustments and other | 340 | 443 | 27 |
Balance at end of period | ¥ 2,675 | ¥ 2,681 | ¥ 2,325 |