Cover
Cover | 12 Months Ended |
Dec. 31, 2019shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | CANON INC |
Entity Central Index Key | 0000016988 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Incorporation, State or Country Code | M0 |
Entity File Number | 001-15122 |
Entity Address, Address Line One | 30-2, Shimomaruko 3-chome |
Entity Address, City or Town | Ohta-ku |
Entity Address, Country | JP |
Entity Address, Postal Zip Code | 146-8501 |
Entity Common Stock, Shares Outstanding | 1,063,834,471 |
Common stock | |
Title of 12(b) Security | Common Stock (the “shares”) |
No Trading Symbol Flag | true |
American Depositary Shares | |
Trading Symbol | CAJ |
Security Exchange Name | NYSE |
Title of 12(b) Security | American Depositary Shares (“ADSs”), each of which represents one share |
Business Contact | |
Entity Address, Address Line One | 30-2, Shimomaruko 3-chome |
Entity Address, City or Town | Ohta-ku |
Entity Address, Country | JP |
Entity Address, Postal Zip Code | 146-8501 |
Contact Personnel Name | Sachiho Tanino |
City Area Code | +81-3 |
Local Phone Number | 3758-2111 |
Consolidated Balance Sheets
Consolidated Balance Sheets - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents (Note 1) | ¥ 412,814 | ¥ 520,645 |
Short-term investments (Note 2) | 1,767 | 956 |
Trade receivables, net (Note 3) | 559,836 | 612,953 |
Inventories (Note 4) | 584,756 | 611,281 |
Prepaid expenses and other current assets (Notes 6, 14 and 17) | 286,792 | 304,346 |
Total current assets | 1,845,965 | 2,050,181 |
Noncurrent receivables (Note 19) | 17,135 | 18,230 |
Investments (Note 2) | 48,361 | 42,556 |
Property, plant and equipment, net (Notes 5 and 6) | 1,089,671 | 1,090,992 |
Operating lease right-of-use assets (Note 18) | 114,418 | |
Intangible assets, net (Note 7) | 347,921 | 391,021 |
Goodwill (Note 7) | 898,661 | 908,511 |
Other assets (Notes 6, 10 and 11) | 406,219 | 397,974 |
Total assets | 4,768,351 | 4,899,465 |
Current liabilities: | ||
Short-term loans and current portion of long-term debt (Note 8) | 42,034 | 38,527 |
Trade payables (Note 9) | 305,312 | 352,489 |
Accrued income taxes (Note 11) | 18,801 | 41,264 |
Accrued expenses (Notes 10 and 19) | 324,891 | 321,137 |
Current operating lease liabilities (Note 18) | 31,884 | |
Other current liabilities (Notes 5, 14 and 17) | 237,576 | 276,237 |
Total current liabilities | 960,498 | 1,029,654 |
Long-term debt, excluding current installments (Notes 8 and 20) | 357,340 | 361,962 |
Accrued pension and severance cost (Note 10) | 368,507 | 382,789 |
Noncurrent operating lease liabilities (Note 18) | 83,688 | |
Other noncurrent liabilities (Note 11) | 106,400 | 107,147 |
Total liabilities | 1,876,433 | 1,881,552 |
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 2019 and 2018 | 174,762 | 174,762 |
Additional paid-in capital | 405,017 | 404,389 |
Legal reserve (Note 12) | 67,572 | 67,116 |
Retained earnings (Note 12) | 3,462,182 | 3,508,908 |
Accumulated other comprehensive income (loss) (Note 13) | (308,442) | (269,071) |
Treasury stock, at cost; 269,928,993 shares in 2019 and 254,013,641 shares in 2018 | (1,108,496) | (1,058,502) |
Total Canon Inc. shareholders' equity | 2,692,595 | 2,827,602 |
Noncontrolling interests | 199,323 | 190,311 |
Total equity | 2,891,918 | 3,017,913 |
Total liabilities and equity | ¥ 4,768,351 | ¥ 4,899,465 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 269,928,993 | 254,013,641 |
Consolidated Statements of Inco
Consolidated Statements of Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales (Notes 6,14 and 17) | ¥ 3,593,299 | ¥ 3,951,937 | ¥ 4,080,015 |
Cost of sales (Notes 5, 7, 10, and 18) | 1,983,266 | 2,116,383 | 2,089,461 |
Gross profit | 1,610,033 | 1,835,554 | 1,990,554 |
Operating expenses (Notes 1, 5, 7, 10, 15, 18 and 19): | |||
Selling, general and administrative expenses | 1,136,863 | 1,176,760 | 1,301,666 |
Research and development expenses | 298,503 | 315,842 | 333,371 |
Impairment losses on goodwill | 33,912 | ||
Operating expenses | 1,435,366 | 1,492,602 | 1,668,949 |
Operating profit | 174,667 | 342,952 | 321,605 |
Other income (deductions): | |||
Interest and dividend income | 5,526 | 6,604 | 6,012 |
Interest expense | (1,038) | (797) | (818) |
Other, net (Notes 1, 2,10, 13 and 17) | 16,585 | 14,133 | 27,085 |
Other income (deductions) | 21,073 | 19,940 | 32,279 |
Income before income taxes | 195,740 | 362,892 | 353,884 |
Income taxes (Note 11) | 56,223 | 96,150 | 98,024 |
Consolidated net income | 139,517 | 266,742 | 255,860 |
Less: Net income attributable to noncontrolling interests | 14,412 | 13,987 | 13,937 |
Net income attributable to Canon Inc. | ¥ 125,105 | ¥ 252,755 | ¥ 241,923 |
Net income attributable to Canon Inc. shareholders per share (Note 16): | |||
Basic | ¥ 116.93 | ¥ 234.09 | ¥ 222.88 |
Diluted | 116.91 | 234.08 | 222.88 |
Cash dividends per share | ¥ 160 | ¥ 160 | ¥ 160 |
Products And Equipment | |||
Net sales (Notes 6,14 and 17) | ¥ 2,835,428 | ¥ 3,194,724 | ¥ 3,521,156 |
Cost of sales (Notes 5, 7, 10, and 18) | 1,627,858 | 1,762,171 | 1,875,581 |
Services | |||
Net sales (Notes 6,14 and 17) | 757,871 | 757,213 | 558,859 |
Cost of sales (Notes 5, 7, 10, and 18) | ¥ 355,408 | ¥ 354,212 | ¥ 213,880 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | ¥ 139,517 | ¥ 266,742 | ¥ 255,860 |
Other comprehensive income (loss), net of tax (Note 13): | |||
Foreign currency translation adjustments | (32,157) | (93,146) | 47,090 |
Net unrealized gains and losses on securities | (141) | (9,362) | |
Net gains and losses on derivative instruments | (1,068) | 488 | 2,588 |
Pension liability adjustments | (3,630) | (30,570) | 21,207 |
Net change during the period | (36,855) | (123,369) | 61,523 |
Comprehensive income (loss) | 102,662 | 143,373 | 317,383 |
Less: Comprehensive income attributable to noncontrolling interests | 16,382 | 6,918 | 18,807 |
Comprehensive income (loss) attributable to Canon Inc. | ¥ 86,280 | ¥ 136,455 | ¥ 298,576 |
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, 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 | |||||||
Transfers 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 13): | |||||||||
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) | |||||||
Transfers 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 13): | |||||||||
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) | |||||||
Equity transactions with noncontrolling interests and other | (1,596) | 641 | (424) | 217 | (1,813) | ||||
Dividends to Canon Inc. shareholders | (171,487) | (171,487) | (171,487) | ||||||
Dividends to noncontrolling interests | (5,557) | (5,557) | |||||||
Transfers to legal reserve | 456 | (456) | |||||||
Comprehensive income: | |||||||||
Net income | 139,517 | 125,105 | 125,105 | 14,412 | |||||
Other comprehensive income (loss), net of tax (Note 13): | |||||||||
Foreign currency translation adjustments | (32,157) | (32,043) | (32,043) | (114) | |||||
Net gains and losses on derivative instruments | (1,068) | (1,073) | (1,073) | 5 | |||||
Pension liability adjustments | (3,630) | (5,709) | (5,709) | 2,079 | |||||
Comprehensive income (loss) | 102,662 | 86,280 | 16,382 | ||||||
Repurchases of treasury stock | (50,015) | (50,015) | (50,015) | ||||||
Reissuance of treasury stock | (2) | (13) | (10) | 21 | (2) | ||||
Balance at end of year at Dec. 31, 2019 | ¥ 2,891,918 | ¥ 174,762 | ¥ 405,017 | ¥ 67,572 | 3,462,182 | (308,442) | ¥ (1,108,496) | ¥ 2,692,595 | ¥ 199,323 |
Cumulative effects of accounting standard update - adoption of ASU | ASU 2017-12 | ¥ 122 | ¥ (122) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Consolidated net income | ¥ 139,517 | ¥ 266,742 | ¥ 255,860 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
Depreciation and amortization | 237,327 | 251,554 | 261,881 |
Loss on disposal of fixed assets | 5,991 | 5,726 | 6,935 |
Equity in earnings of affiliated companies | 311 | (1,414) | (1,196) |
Impairment losses on goodwill | 33,912 | ||
Gain on securities contributed to retirement benefit trust | (17,836) | ||
Deferred income taxes | (6,446) | (11,849) | (17,603) |
(Increase) decrease in trade receivables | 43,504 | (17,724) | 3,563 |
(Increase) decrease in inventories | 19,895 | (61,755) | 2,967 |
Increase (decrease) in trade payables | (35,509) | (31,212) | 4,951 |
Increase (decrease) in accrued income taxes | (22,279) | (35,284) | 46,296 |
Increase in accrued expenses | 9,491 | 2,541 | 18,503 |
Increase (decrease) in accrued (prepaid) pension and severance cost | (13,722) | (17,738) | 522 |
Other, net (Note 6) | (19,619) | 15,706 | (8,198) |
Net cash provided by operating activities | 358,461 | 365,293 | 590,557 |
Cash flows from investing activities: | |||
Purchases of fixed assets (Note 5) | (215,671) | (191,399) | (189,484) |
Proceeds from sale of fixed assets (Note 5) | 885 | 9,634 | 26,444 |
Purchases of securities | (4,907) | (2,311) | (2,220) |
Proceeds from sale and maturity of securities | 828 | 1,615 | 970 |
(Increase) decrease in time deposits, net | (1,511) | 401 | 3,373 |
Acquisitions of businesses, net of cash acquired | (8,880) | (13,346) | (6,557) |
Other, net | 688 | (209) | 2,464 |
Net cash used in investing activities | (228,568) | (195,615) | (165,010) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt (Note 8) | 439 | 1,570 | |
Repayments of long-term debt (Note 8) | (8,678) | (136,094) | (126,578) |
Increase in short-term loans, net (Note 8) | 4,913 | 2,501 | 5,628 |
Transactions with noncontrolling interests | (1,769) | (37,942) | |
Dividends paid | (171,487) | (178,159) | (162,887) |
Repurchases and reissuance of treasury stock | (50,012) | (21) | (50,034) |
Other, net | (5,557) | (5,554) | (8,163) |
Net cash provided by (used in) financing activities | (232,590) | (354,830) | (340,464) |
Effect of exchange rate changes on cash and cash equivalents | (5,134) | (16,017) | 6,538 |
Net change in cash and cash equivalents | (107,831) | (201,169) | 91,621 |
Cash and cash equivalents at beginning of year | 520,645 | 721,814 | 630,193 |
Cash and cash equivalents at end of year | 412,814 | 520,645 | 721,814 |
Supplemental disclosure for cash flow information, Cash paid during the year for: | |||
Interest | 888 | 749 | 1,026 |
Income taxes | ¥ 77,654 | ¥ 131,616 | ¥ 71,473 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 13.0%, 13.6% and 13.1% of consolidated net sales for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in the Office Business Unit. Canon’s manufacturing operations are conducted primarily at 29 plants in Japan and 14 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 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 (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 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 ¥4,236 million, ¥6,044 million and ¥9,775 million for the years ended December 31, 2019, 2018 and 2017, respec t (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-sale available-for-sale Available-for-sale available-for-sale earnings and the amount related to all other factors is recognized in other comprehensive income (loss). For 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 (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. obtains certain software to be sold where related costs are capitalized after establishment of technological feasibility. (n) 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. ( o 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 measured 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 ( p 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. ( q 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. ( r 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 4 (s) Research and Development Research and development costs are expensed as incurred. ( t Advertising Costs Advertising costs are expensed as incurred. Advertising expenses were ¥46,665 million, ¥58,729 million ( u Shipping and Handling Costs Shipping and handling costs totaled ¥51,718 million, ¥54,844 million and ¥52,953 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in selling, general and administrative expenses in the consolidated statements of income. ( v Derivative Financial Instruments All derivatives are recognized at fair value and are included in prepaid expenses 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, and reclassified in the same income statement line item in which the earnings effect of the hedged 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. ( w Guarantees Canon recognizes, at the inception of a guarantee, a liability for the fair value of the obligation it has undertaken in issuing guarantees. ( x Recent Accounting Guidance Recently adopted accounting guidance In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, requires lessees to recognize most leases on their balance sheets but recognize expenses on their income statements in a manner similar to the previous guidance. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. The FASB also modified the definition of a lease. Additionally, this guidance expands the qualitative and quantitative disclosures related to leases. This guidance is effective for annual reporting periods beginning after December 15, 2018. Canon applied the guidance from the quarter beginning January 1, 2019. Canon applied the package of practical expedients that allows it not to reassess whether any existing contracts at or expired contracts prior to the adoption date are or contain leases, lease classification and whether initial direct costs qualify for capitalization, in addition to the short term lease exception. Canon also adopted the transition method for which no restatement of comparative periods and no reassessment of land easements not previously accounted for as a lease that existed at or expired prior to the adoption date are required. The right of use assets for operating leases recognized at January 1, 2019 million. The corresponding lease liabilities were also recognized. The adoption of this guidance did not have a material impact on its consolidated results of operation. For further information, please refer to Notes 6 and 1 8 In August 2017, the FASB issued ASU No. 2017-12, previously Recently issued accounting guidance not yet adopted In June 2016, the FASB issued ASU No. 2016-13, will (k) Property, Plant and Equipment (continued) 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 years to years . (l) Leases As for lessor accounting, Canon provides leasing arrangement to its customers primarily for the sales of office products. 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 As for lessee accounting, Canon has operating and finance leases for various assets including office buildings, warehouses, employees’ accommodations, and vehicles. Canon determines if an arrangement is a lease at the inception of each contract. Some of the contracts include options to extend or to terminate the lease. Canon takes such options into accounts to determine the lease term when it is reasonably certain that it will exercise these options. Canon’s lease arrangements do not contain material residual value guarantees or material restrictive covenants. As a rate implicit in the most of Canon’s leases cannot be determined, Canon uses incremental borrowing rate based on the information available at commencement to determine the present values of lease payments. Canon has lease contracts with lease and non-lease non-lease associated ( m Goodwill and o i a 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 8 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 8 years to 15 years, respectively. Certain costs incurred in connection with developing or obtaining internal-use internal-use |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 2. Investments The unrealized and realized gains and losses related to equity securities for the year ended December 31, 2019 and 2018 are as follows: Years ended December 31 2019 2018 (Millions of yen) Net gains and (losses) recognized during the period on equity securities 2,148 (6,092 ) Less: Net gains and (losses) recognized during the period on equity securities sold during the period (76 ) 675 Unrealized gains and (losses) recognized during the period on equity securities still held at December 31. 2,224 (6,767 ) Gross realized gains related to equity securities were ¥18,514 million for the year ended December 31, 2017. Gross realized losses, including write-downs for impairments that were other-than-temporary, were ¥42 million for the years ended December 31, 2017. During the year ended December 31, 201 7 available-for-sale The carrying amount of non-marketable million at December 31, 2019 and 2018, respectively. The impairment or other adjustments resulting from observable price changes recorded during the year ended December 31, 2019 and 2018 were not significant. The unrealized and realized gains and losses related to debt securities were not significant for the years ended December 31, 2019, 2018 and 2017, respectively. Time deposits with original maturities of more than three months are ¥1,767 million and ¥326 million at December 31, 2019 and 2018, 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 ¥19,988 million and ¥21,312 million at December 31, 2019 and 2018, respectively. Canon’s share of the net earnings in affiliated companies accounted for by the equity method, included in other income (deductions), were losses of ¥311 million for the year ended December 31, 2019, and earnings of ¥1,414 million and ¥1,196 million for the years ended December 31, 2018 and 2017 respectively. |
Trade Receivables
Trade Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Trade Receivables | 3. Trade Receivables Trade receivables are summarized as follows: December 31 2019 2018 (Millions of yen) Notes 32,952 29,878 Accounts 537,243 594,552 570,195 624,430 Less allowance for doubtful receivables (10,359 ) (11,477 ) 559,836 612,953 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories are summarized as follows: December 31 2019 2018 (Millions of yen) Finished goods 367,332 393,820 Work in process 165,399 165,003 Raw materials 52,025 52,458 584,756 611,281 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 (Millions of yen) Land 273,014 272,443 Buildings 1,658,270 1,629,683 Machinery and equipment 1,802,624 1,789,226 Construction in progress 77,953 67,045 Finance lease right-of-use assets 4,999 4,517 3,816,860 3,762,914 Less accumulated depreciation (2,727,189 ) (2,671,922 ) 1,089,671 1,090,992 After the adoption of ASU No. 2016-02 right-of-use Depreciation expenses for the years ended December 31, 2019, 2018 and 2017 were ¥170,418 million, ¥175,771 million and ¥189,712 Amounts due for purchases of property, plant and equipment were ¥30,601 million and ¥32,433 million at December 31, 2019 and 2018, 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. |
Lessor Accounting
Lessor Accounting | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessor accounting | 6. Lessor Accounting Lease income is included in Products and Equipment sales in the accompanying consolidated statement of income. Supplemental income statement information is as follows: Year ended December 31, 2019 (Millions o f yen) Lease income – sales-type and direct financing leases Revenue at lease commencement 114,312 Interest income on lease receivables 20,382 134,694 Lease income – operating leases 25,403 Variable lease income 6,216 166,313 Finance Receivables and Operating Leases Finance receivables represent financing leases which consist of sales-type leases and direct December 31 2019 2018 (Million s Total minimum lease payments receivable 360,146 351,198 Unguaranteed residual values 13,070 12,661 Executory costs — (2,112 ) Unearned income (33,338 ) (31,007 ) 339,878 330,740 Less allowance for credit losses (2,627 ) (2,675 ) 337,251 328,065 Less current portion (113,892 ) (111,629 ) 223,359 216,436 Allowance for Credit Losses The activities in the allowance for credit losses are as follows: Years ended December 31 2019 2018 (Millions of yen) Balance at beginning of year 2,675 2,681 Charge-offs (1,653 ) (1,284 ) Provision 1,495 938 Translation adjustments and other 110 340 Balance at end of year 2,627 2,675 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 is 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 are individually evaluated for impairment at December 31, 2019 and December 31, 2018 are not significant. Equipment leased to customers The cost of equipment leased to customers under operating leases included in property, plant and equipment, net at December 31, 2019 and 2018 was ¥116,681 million and ¥120,457 million, respectively. Accumulated depreciation on equipment under operating leases at December 31, 2019 and 2018 was ¥82,633 million and ¥82,698 million, respectively. Maturity Analysis The following is a schedule by year of the future minimum lease payments to be received under finance leases and non-cancellable operating leases at December 31, 2019 . Financ ing Operating lease s (Millions of yen) Year ending December 31: 2020 128,674 9,893 2021 100,569 6,115 2022 68,921 3,593 2023 39,314 1,116 2024 16,363 401 Thereafter 6,305 56 360,146 21,174 Information about transferring finance receivables Canon has syndication arrangements to sell its entire interests in finance receivables to the third-party financial institutions. The transactions under the arrangements are accounted for as sales in accordance with ASC 860 “Transfers and Servicing.” The sales ¥11,710 million and ¥21,909 million for the year ended December 31, 2019 and 2018. The amount remained uncollected were ¥28,616 million and ¥22,956 million at December 31, 2019 and 2018, respectively. Cash proceeds from the transaction s |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 7 Goodwill and Other Intangible Assets Intangible assets subject to amortization acquired during the year ended December 31, 2019, including those recorded from businesses acquired, totaled ¥34,259 million, which primarily consist of software of ¥32,334 million. The weighted average amortization periods is 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. The components of intangible assets subject to amortization at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Gross Accumulated Gross Accumulated (Millions of yen) Software 370,178 262,405 362,130 244,188 Customer relationships 153,708 35,276 156,679 27,263 Patents and developed technology 123,609 46,263 123,831 36,029 Trademarks 41,688 13,582 44,449 12,062 License fees 15,944 8,482 16,071 6,461 Other 18,972 11,846 19,319 9,859 724,099 377,854 722,479 335,862 Aggregate amortization expense for the years ended December 31, 2019, 2018 and 2017 was ¥66,909 million, ¥75,783 million and ¥72,169 million, respectively. Estimated amortization expense for intangible assets currently held for the next five years ending December 31 is ¥58,646 million in 2020, ¥51,386 million in 2021, ¥42,866 million in 2022, ¥32,678 million in 2023, and ¥27,818 million in 2024. Intangible assets not subject to amortization other than goodwill at December 31, 2019 and 2018 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, 2019 and 2018 were as follows: Year ended December 31, 2019 Office Imaging Medical Industry and Total (Millions of yen) Goodwill – gross 127,860 48,670 500,896 263,513 940,939 Accumulated impairment losses (20,770 ) — — (11,658 ) (32,428 ) Balance at beginning of year 107,090 48,670 500,896 251,855 908,511 Goodwill acquired during the year — — 8,330 — 8,330 Translation adjustments and other (2,518 ) (1,717 ) (319 ) (13,626 ) (18,180 ) Goodwill – gross 124,613 46,953 508,907 249,478 929,951 Accumulated impairment losses (20,041 ) — — (11,249 ) (31,290 ) Balance at end of year 104,572 46,953 508,907 238,229 898,661 Year ended December 31, 2018 Office Imaging Medical Industry and 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 |
Short-Term Loans and Long-Term
Short-Term Loans and Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Loans and Long-Term Debt | 8. Short-Term Loans and Long-Term Debt Short-term loans consisting of bank borrowings at December 31, 2019 and 2018 were ¥40,800 million and ¥35,887 million, respectively. The weighted average interest rate on short-term borrowings outstanding at December 31, 2019 and 2018 were 0.21% and 0.43%, respectively. Unused overdraft facilities at December 31, 2019 were ¥150,000 million. The overdraft facilities bear interest at a rate equal to a base rate plus a spread Long-term debt consisted of the following: December 31 2019 2018 (Millions of yen) Loan from banks; bearing interest of 0.08% at December 31, 2019 and 0.07% at December 31, 2018 *1 354,000 360,000 Other debt *2 4,574 4,602 358,574 364,602 Less current portion (1,234 ) (2,640 ) 357,340 361,962 *1 Canon has the unsecured revolving credit facility contracts expiring December 2021 million of the loan with cash flows generated during the year ended December 31, 2019. The outstanding loans under the credit facilities are *2 The other debt consisted of term-loans and finance The aggregate annual maturities of long-term debt outstanding at December 31, 2019 were as follows: (Millions of yen) Year ending December 31: 2020 1,234 2021 355,199 2022 821 2023 487 2024 203 Thereafter 630 358,574 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, 2019 | |
Payables and Accruals [Abstract] | |
Trade Payables | 9 Trade Payables Trade payables are summarized as follows: December 31 2019 2018 (Millions of yen) Notes 56,865 68,140 Accounts 248,447 284,349 305,312 352,489 |
Employee Retirement and Severan
Employee Retirement and Severance Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Retirement and Severance Benefits | 10. 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. Canon Medical Systems Corporation (“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 had been transferred from the Toshiba Funds into the new pension provision. Canon calculated the projected benefit obligations for the remaining participants within the Toshiba Funds based on the benefit level of the Toshiba Funds and included the proportional share of the plan assets to which CMSC had a legal right in the following tables for the remaining participants as of December 31, 2018. In March 2019, CMSC settled the pension obligations attributed to the remaining participants within the Toshiba Funds. The loss recognized due to the settlement in the consolidated statement of income for the year ended December 31, 2019 was not significant. 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 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year 927,006 929,630 385,949 423,579 Service cost 30,903 31,241 6,264 7,982 Interest cost 5,074 5,419 8,643 8,691 Plan participants’ contributions — — 1,432 1,535 Actuarial (gain) loss 15,289 (1,844 ) 52,261 (24,297 ) Benefits paid (35,372 ) (33,477 ) (10,863 ) (10,135 ) Plan amendments — (3,963 ) 362 3,257 Curtailments and settlements (17,510 ) — (3,608 ) (1,149 ) Foreign currency exchange rate changes — — (816 ) (23,514 ) Projected benefit obligations at end of year 925,390 927,006 439,624 385,949 Change in plan assets: Fair value of plan assets at beginning of year 682,695 735,513 248,642 254,020 Actual return on plan assets 54,170 (38,010 ) 35,298 (6,042 ) Employer contributions 12,367 12,651 18,016 22,393 Plan participants’ contributions — — 1,432 1,535 Benefits paid (28,549 ) (27,459 ) (10,863 ) (10,135 ) Settlements (16,514 ) — — (1,150 ) Foreign currency exchange rate changes — — 2,304 (11,979 ) Fair value of plan assets at end of year 704,169 682,695 294,829 248,642 Funded status at end of year (221,221 ) (244,311 ) (144,795 ) (137,307 ) Amounts recognized in the consolidated balance sheets at December 31, 2019 and 2018 are as follows: Japanese plans Foreign plans December 31 December 31 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Other assets 1,904 1,536 2,342 1,306 Accrued expenses (818 ) (679 ) (937 ) (992 ) Accrued pension and severance cost (222,307 ) (245,168 ) (146,200 ) (137,621 ) (221,221 ) (244,311 ) (144,795 ) (137,307 ) Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2019 and 2018 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Actuarial loss 231,811 267,355 118,247 95,121 Prior service credit (36,506 ) (48,392 ) 268 (227 ) 195,305 218,963 118,515 94,894 The accumulated benefit obligation for all defined benefit plans was as follows: Japanese plans Foreign plans December 31 December 31 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Accumulated benefit obligation 892,154 893,154 421,460 371,653 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 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations 916,562 918,736 437,780 384,167 Fair value of plan assets 693,437 672,889 290,643 245,554 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations 887,138 891,204 414,729 369,215 Fair value of plan assets 688,754 670,826 285,341 244,826 Net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans for the years ended December 31, 2019, 2018 and 2017 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2019 2018 2017 2019 2018 2017 (Millions of yen) (Millions of yen) Service cost 30,903 31,241 30,889 6,264 7,982 6,962 Interest cost 5,074 5,419 5,689 8,643 8,691 8,691 Expected return on plan assets (19,553 ) (21,983 ) (20,493 ) (11,919 ) (12,601 ) (10,722 ) Amortization of prior service credit (11,877 ) (13,001 ) (12,860 ) (133 ) (217 ) (83 ) Amortization of actuarial loss 15,247 11,900 14,220 4,345 5,108 5,747 (Gain) loss on curtailments and settlements (36 ) — (63 ) (2,197 ) — — 19,758 13,576 17,382 5,003 8,963 10,595 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, 2019, 2018 and 2017 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2019 2018 2017 2019 2018 2017 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss (19,328 ) 58,149 (15,771 ) 28,882 (5,654 ) (5,300 ) Current year prior service credit — (3,963 ) 1,149 362 3,257 (1,069 ) Amortization of actuarial loss (15,247 ) (11,900 ) (14,220 ) (4,345 ) (5,108 ) (5,747 ) Amortization of prior service credit 11,877 13,001 12,860 133 217 83 Curtailments and settlements (960 ) — 19 (1,411 ) (63 ) — (23,658 ) 55,287 (15,963 ) 23,621 (7,351 ) (12,033 ) 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 (8,736 ) (123 ) Actuarial loss 12,506 6,073 Assumptions Weighted-average assumptions used to determine benefit obligations are as follows: Japanese plans Foreign plans December 31 December 31 2019 2018 2019 2018 Discount rate 0.5 % 0.6 % 1.6 % 2.4 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 1.0 % 1.9 % 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 2019 2018 2017 2019 2018 2017 Discount rate 0.6 % 0.6 % 0.7 % 2.4 % 2.2 % 2.2 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 2.6 % 1.9 % 1.8 % 2.1 % Expected long-term rate of return on plan assets 3.0 % 2.9 % 3.1 % 5.2 % 4.4 % 4.2 % Canon determines the expected long-term rate of return based on the expected long-term return of the various asset categories in which it invests. Canon considers the current expectations for future returns and the actual historical returns of each plan asset category. Plan assets Canon’s investment policies are designed to ensure adequate plan assets are available to provide future payments of pension benefits to eligible participants. Taking into account the expected long-term rate of return on plan assets, Canon formulates a “model” portfolio comprised of the optimal combination of equity securities and debt securities. Plan assets are invested in individual equity and debt securities using the guidelines of the “model” portfolio in order to produce a total return that will match the expected return on a mid-term 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 20% is invested in debt securities, and approximately 45% 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, 2019 and 2018, by asset category, are as follows: December 31, 2019 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) 77,484 — — 77,484 — — — — Foreign companies 5,164 — — 5,164 10,298 — — 10,298 Pooled funds (b) — 164,662 — 164,662 63,557 63,557 Debt securities: Government bonds (c) 130,180 — — 130,180 — — — — Municipal bonds — 1,202 — 1,202 — 2,302 — 2,302 Corporate bonds — 11,711 — 11,711 — 6,472 — 6,472 Pooled funds (d) — 136,655 — 136,655 — 64,259 — 64,259 Mortgage backed securities (and other asset backed securities) — 12,090 — 12,090 — 2,511 — 2,511 Life insurance company general accounts — 121,573 — 121,573 — 9,676 — 9,676 Other assets — 26,979 218 27,197 — 115,102 — 115,102 Investment measured at net asset value — — — 16,251 — — — 20,652 212,828 474,872 218 704,169 10,298 263,879 — 294,829 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 ( e 67,283 — — 67,283 — — — — Foreign companies 5,451 — — 5,451 8,567 — — 8,567 Pooled funds ( f — 137,712 — 137,712 — 49,312 — 49,312 Debt securities: Government bonds ( g 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 ( h — 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 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥118 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 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (d) These funds invest in approximately 25% Japanese government bonds, 55% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 75% foreign government bonds and 25% corporate bonds for foreign plans. (e) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥147 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, 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. 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 s ere and ¥ 1,451 million at December 31, 2019 and 2018, respectively. Amounts of actual returns on, purchases and sales of these assets during the years ended December 31, 2019 and 2018 were not significant. The fair values of plan assets for the participants with Toshiba Funds by each asset category in 2018 were pro-rata Contributions Canon expects to contribute ¥13,257 million to its Japanese defined benefit pension plans and ¥18,985 million to its foreign defined benefit pension plans for the year ending December 31, 2020. 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: 2020 37,164 12,564 2021 38,203 13,181 2022 41,146 14,083 2023 42,625 14,947 2024 42,803 15,742 2025 – 2029 222,813 94,532 Multiemployer pension plans The amounts of cost recognized for the multiemployer pension plans primarily in the Netherlands for the years ended December 31, 2019, 2018 and 2017 were ¥4,321 million, ¥4,452 million and ¥4,165 million, respectively. The multiemployer pension plan in which the subsidiaries in the Netherlands participated was 98% funded as of December 31, 201 8 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, 2019, 2018 and 2017 were ¥17,414 million, ¥19,570 million and ¥18,979 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 1 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, 2019 Japanese Foreign Total (Millions of yen) Income before income taxes 107,329 88,411 195,740 Income taxes: Current 39,483 23,186 62,669 Deferred (4,199 ) (2,247 ) (6,446 ) 35,284 20,939 56,223 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 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% for the years ended December 31, 2019, 2018 and 2017. 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. wa a Legislation 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 2019 2018 2017 Japanese statutory income tax rate 31.0 % 31.0 % 31.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes * 1.7 0.7 3.7 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (4.5 ) (3.0 ) (2.1 ) Tax credit for research and development expenses (2.3 ) (3.4 ) (4.8 ) Change in valuation allowance 0.0 0.4 1.7 Effect of enacted changes in U.S. tax laws — — (3.6 ) Deferred tax liabilities on undistributed earnings of foreign subsidiaries 2.3 0.9 1.1 Other 0.5 (0.1 ) 0.7 Effective income tax rate 28.7 % 26.5 % 27.7 % * 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 2019 2018 (Millions of yen) Other assets 153,948 160,541 Other noncurrent liabilities (59,888 ) (70,336 ) 94,060 90,205 The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below: December 31 2019 2018 (Millions of yen) Deferred tax assets: Inventories 10,225 10,739 Accrued business tax 1,282 2,361 Accrued pension and severance cost 107,463 105,933 Research and development – costs capitalized for tax purposes 4,751 4,690 Property, plant and equipment 32,040 33,738 Operating lease liabilities 25,646 — Accrued expenses 25,845 28,015 Net operating losses carried forward 21,294 28,549 Other 41,759 38,683 270,305 252,708 Less valuation allowance (27,678 ) (30,734 ) Total deferred tax assets 242,627 221,974 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (8,769 ) (7,615 ) Tax deductible reserve (4,050 ) (4,050 ) Financing lease revenue (19,029 ) (26,441 ) Operating lease right-of-use assets (25,249 ) — Intangible assets (59,350 ) (66,189 ) Other (32,120 ) (27,474 ) Total deferred tax liabilities (148,567 ) (131,769 ) Net deferred tax assets 94,060 90,205 The net changes in the total valuation allowance were a decrease of ¥3,056 million, a decrease of ¥49 million and an increase of ¥4,096 million for the years ended December 31, 2019, 2018 and 2017, 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, 2019. At December 31, 2019, Canon had net operating losses which can be carried forward for income tax purposes of ¥130,907 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 1,980 After one year through five years 28,550 After five years through ten years 31,871 After ten years through twenty years 17,137 Indefinite period 51,369 130,907 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 ¥24,886 million for a portion of undistributed earnings of foreign subsidiaries of ¥994,886 million as of December 31, 2019 because Canon intends to permanently reinvest such undistributed earnings of foreign subsidiaries. Deferred tax liabilities will be recognized when such undistributed earnings are no longer permanently reinvested. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended December 31 2019 2018 2017 (Millions of yen) Balance at beginning of year 8,649 10,282 7,318 Additions for tax positions of the current year — 45 2,956 Additions for tax positions of prior years 204 178 250 Reductions for tax positions of prior years (44 ) (17 ) (915 ) Settlements with tax authorities (402 ) (1,286 ) — Other (287 ) (553 ) 673 Balance at end of year * 8,120 8,649 10,282 * The unrecognized tax benefits were offset by deferred tax assets in the amount of , respectively, and reported under “other noncurrent liabilities” on the consolidated balance sheets. The total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized, were ¥8,120 million and ¥8,649 million at December 31, 2019 and 2018, 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, 2019, 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, 2019 and 2018, and interest and penalties included in income taxes for the years ended December 31, 2019, 2018 and 2017 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 |
Legal Reserve and Retained Earn
Legal Reserve and Retained Earnings | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Legal Reserve and Retained Earnings | 12. 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, 2019, 2018 and 2017 represent dividends paid out during those years and the related appropriations to the legal reserve. Retained earnings at December 31, 2019 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 ¥853,374 million at December 31, 2019. Retained earnings at December 31, 2019 included Canon’s equity in undistributed earnings of affiliated companies accounted for by the equity method in the amount of ¥17,657 million. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | 13. Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 are as follows: Foreign Unrealized Gains and Pension Total (Millions of yen) 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 ) (141 ) 488 (26,824 ) (120,500 ) Balance at December 31, 2018 (63,815 ) — 308 (205,564 ) (269,071 ) Cumulative effects of accounting standard update – adoption of ASU No. 2017-12 * — — (122 ) — (122 ) Equity transactions with noncontrolling interests and other (424 ) — — — (424 ) Other comprehensive income (loss) before reclassifications (31,889 ) — (1,723 ) (12,763 ) (46,375 ) Amounts reclassified from accumulated other comprehensive income (loss) (154 ) — 650 7,054 7,550 Net change during the year (32,467 ) — (1,073 ) (5,709 ) (39,249 ) Balance at December 31, 2019 (96,282 ) — (887 ) (211,273 ) (308,442 ) Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 are as follows: Amount reclassified from Year ended Year ended Year ended Affected line items in (Millions of yen) Foreign currency translation adjustments (154 ) — (39 ) Other, net — — 12 Income taxes (154 ) — (27 ) Consolidated net income — — 11 Net income attributable to noncontrolling interests (154 ) — (16 ) Net income attributable to Canon Inc. Unrealized gains and losses on — (178 ) (18,472 ) Other, net — 37 5,727 Income taxes — (141 ) (12,745 ) Consolidated net income — — 165 Net income attributable to noncontrolling interests — (141 ) (12,580 ) Net income attributable to Canon Inc. Gains and losses on derivative instruments 661 1,341 5,772 *2 (2 ) (392 ) (1,732 ) Income taxes 659 949 4,040 Consolidated net income (9 ) (4 ) (26 ) Net income attributable to noncontrolling interests 650 945 4,014 Net income attributable to Canon Inc. Pension liability adjustments 9,953 3,853 7,005 Other, net (2,523 ) (699 ) (1,832 ) Income taxes 7,430 3,154 5,173 Consolidated net income (376 ) (69 ) (268 ) Net income attributable to noncontrolling interests 7,054 3,085 4,905 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling i 7,550 3,889 (3,677 ) *1 Amounts in parentheses indicate gains in consolidated statements of income. *2 After the adoption of ASU No 2017-12, 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) 2019: Foreign currency translation adjustments Amount arising during the year (32,396 ) 393 (32,003 ) Reclassification adjustments for gains and losses realized in net income (154 ) — (154 ) Net change during the year (32,550 ) 393 (32,157 ) Net unrealized gains and losses on securities: Amount arising during the year — — — Reclassification adjustments for gains and losses realized in net income — — — Net change during the year — — — Net gains and losses on derivative instruments: Amount arising during the year (2,180 ) 453 (1,727 ) Reclassification adjustments for gains and losses realized in net income 661 (2 ) 659 Net change during the year (1,519 ) 451 (1,068 ) Pension liability adjustments: Amount arising during the year (9,916 ) (1,144 ) (11,060 ) Reclassification adjustments for gains and losses realized in net income 9,953 (2,523 ) 7,430 Net change during the year 37 (3,667 ) (3,630 ) Other comprehensive income (loss) (34,032 ) (2,823 ) (36,855 ) 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 ) Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 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 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 1 4 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 the 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 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. 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 Corporate Consolidated (Millions of yen) 2019: Revenue recognized at a point in time 1,187,306 793,832 290,702 582,156 (93,180 ) 2,760,816 Revenue recognized over time 515,289 13,582 147,823 155,789 — 832,483 Total 1,702,595 807,414 438,525 737,945 (93,180 ) 3,593,299 Office Imaging Medical Industry and Others Corporate Consolidated (Millions of yen) 2018: Revenue recognized at a point in time 1,286,100 957,518 305,457 635,906 (106,318 ) 3,078,663 Revenue recognized over time 521,201 12,917 132,121 207,035 — 873,274 Total 1,807,301 970,435 437,578 842,941 (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. Canon recognizes contract assets primarily for unbilled receivables mainly arising from services contracts for office products. Contract assets at December 31, 2019 and 2018 were ¥43,783 million and ¥50,799 million, respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. Canon typically bills to the customer when the 113,030 123,686 88,306 Remaining performance obligations for products and equipment at December 31, 2019 primarily arise from the sales of certain industrial equipment, amounting to ¥ 114,617 million, two s related on an 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, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 1 5 Stock-Based Compensation On April 26, 2019, based on the approval of the shareholders, the Company granted stock options to its directors and executive officers to acquire 116,300 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, 2019 was ¥2,281. 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. T s 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 The compensation cost recognized for these stock options for the years ended December 31, 2019 was ¥265 million and 2018 was ¥218 million and 2017 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, 2019 Year ended December 31, 201 8 Expected term of option (in years) 6.0 6.0 Expected volatility 19.97 % 23.02 % Dividend yield 5.05 % 4.14 % Risk-free interest rate (0.16 %) (0.07 %) A summary of option activity under the stock option plans as of and for the years ended December 31, 2019, 2018 and 2017 is presented below: Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2017 603,000 3,990 0.2 — Forfeited/Expired (603,000 ) 3,990 Outstanding at December 31, 2017 — — — Granted 74,000 1 Outstanding at December 31, 2018 74,000 1 29.3 222 Granted 116,300 1 Exercised (4,500 ) 1 Outstanding at December 31, 2019 185,800 1 29.0 555 Exercisable at December 31, 2019 185,800 1 29.0 555 The total fair value s and 2018 were and , respectivel y , nil year ended December 31, 2019 was not significant, and for the nil |
Net Income Attributable to Cano
Net Income Attributable to Canon Inc. Shareholders per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Canon Inc. Shareholders per Share | 1 6 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 2019 2018 2017 (Millions of yen) Basic 125,105 252,755 241,923 Diluted net income attributable to C anon Inc. 125,103 252,755 241,923 (Number of shares) Average common shares outstanding 1,069,956,767 1,079,753,008 1,085,439,370 Effect of dilutive securities: Stock options 158,173 49,319 – Diluted common shares outstanding 1,070,114,940 1,079,802,327 1,085,439,370 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 116.93 234.09 222.88 Diluted 116.91 234.08 222.88 The computation of diluted net income attributable to Canon Inc. shareholders per share for the year ended December 31, 2017 excludes outstanding stock options because the effect would be anti-dilutive. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 1 7 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 in the same period as the hedged items affect earnings. Substantially all amounts recorded in accumulated other comprehensive income (loss) as of December 31, 2019 are expected to be recognized in net sales over the next twelve months. After the adoption of ASU No. 2017-12 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, 2019 and 2018 are set forth below: December 31 2019 2018 (Millions of yen) To sell foreign currencies 180,242 230,505 To buy foreign currencies 32,618 30,816 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, 2019 and 2018. Derivatives designated as hedging instruments Fair value December 31 Balance sheet location 2019 2018 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 34 521 Liabilities: Foreign exchange contracts Other current liabilities 828 323 Derivatives not designated as hedging instruments Fair value December 31 Balance sheet location 2019 2018 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 317 2,622 Liabilities: Foreign exchange contracts Other current liabilities 1,745 443 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, 2019, 2018 and 2017. Derivatives in cash flow hedging relationships Year ended December 31 Gain (loss) Gain (loss) reclassified from income Amount Location Amount (Millions of yen) 2019: Foreign exchange contracts (2,180 ) Net sales (661 ) 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 ) Derivatives not designated as hedging instruments Gain (loss) recognized in income on derivative Years ended December 31 Location 2019 2018 2017 (Millions of yen) Foreign exchange contracts Other, net 805 5,284 (7,932 ) |
Lessee Accounting
Lessee Accounting | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee Accounting | 18. Lessee Accounting Lease costs are included in cost of goods sold or selling general and administrative expense in accompanying consolidated statement of income. Supplemental income statement information is as follows: Year ended (Millions of yen) Operating lease cost 43,236 Short-term lease cost 14,374 Other lease cost 168 57,778 Operating lease cashflow Supplemental cash flow information is as follows. Year ended (Millions of yen) Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases 41,368 Noncash activity – Rights of use assets obtained in exchange for lease liabilities Operating leases 33,939 Maturity Analysis The following is a schedule by year of the future minimum lease payments under operating leases at December 31, 2019. ( ) Year ending December 31: 2020 34,317 2021 26,094 2022 18,924 2023 13,950 2024 10,280 Thereafter 19,108 Total future minimum lease payments 122,673 Less Imputed Interest (7,101 ) 115,572 Remaining lease term and discount rate The following is remaining lease term and discount rate under operating leases at December 31, 2019. December 31, 2019 Weighted-average remaining lease term 62 months Weighted-average discount rate 2.2 % |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 19. Commitments and Contingent Liabilities Commitments At December 31, 2019, commitments outstanding for the purchase of property, plant and equipment approximated ¥ 36,241 112,831 Guarantees Canon occupies sales offices and other facilities under lease arrangements accounted for as operating leases. Deposits mainly for restoration 11,778 12,728 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 15 1 5 2,987 Canon also offers assurance-type warranties under which it generally guarantees the performance of products delivered and services rendered for a certain period or term. Estimated product warranty costs are recorded at the time revenue is recognized and are included in selling, general and administrative expenses in the accompanying consolidated statements of income. Estimates for accrued product warranty costs are based on historical experience. Accrued product warranty costs are included in accrued expenses in the accompanying consolidated balance sheets and the changes for the years ended December 31, 2019 and 2018 are summarized as follows: Years ended December 31 2019 2018 (Millions of yen) Balance at beginning of year 17,318 17,452 Additions 15,945 18,870 Utilization (14,488 ) (14,707 ) Other (2,929 ) (4,297 ) Balance at end of year 15,846 17,318 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, |
Disclosures about the Fair Valu
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 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, and the fair values of these instruments approximate their carrying amounts. The summary also excludes investments and derivative instruments which are disclosed in Note 2 and Note 21, and Note 17, respectively. December 31 2019 2018 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments (354,444 ) (354,444 ) (364,602 ) (364,570 ) 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, 2019 and 2018, one customer accounted for approximately 10 12 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018. December 31, 2019 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 506 — 506 Investments: Fund trusts and others 489 241 — 730 Equity securities 16,740 — — 16,740 Prepaid expenses and other current assets: Derivatives — 351 — 351 Total assets 17,229 1,098 — 18,327 Liabilities: Other current liabilities: Derivatives — 2,573 — 2,573 Total liabilities — 2,573 — 2,573 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: 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 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 significant assets or liabilities to be measured at fair value on a nonrecurring basis during the year ended December 31, 2019 and 2018. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 22. Segment Information Canon operates its business in four Based on the realignment of Canon’s internal reporting and management structure, from the beginning of the first quarter of 2019, Canon has reclassified certain businesses from the the Unit. Segment information for the year ended December 31, 2019 has reflected these changes. Prior period amounts also have been restated. 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 / Interchangeable lenses / Compact photo printers /Inkjet printers / Large format inkjet printers / Commercial photo printers / Image scanners / Calculators Medical System Business Unit: Digital radiography systems / Diagnostic X-ray Computed tomography (CT) systems / Magnetic resonance imaging (MRI) systems / Diagnostic ultrasound systems / Clinical chemistry analyzers / Ophthalmic equipment 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 / Network cameras / Digital camcorders / Digital cinema cameras / Multimedia projectors / Broadcast equipment / Micromotors / 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. Information about operating results and assets for each segment as of and for the years ended December 31, 2019, 2018 and 2017 is as follows: Office Imaging Medical System Industry and Corporate and Consolidated (Millions of yen) 2019: Net sales: External customers 1,699,653 806,425 437,456 648,165 1,600 3,593,299 Intersegment 2,942 989 1,069 89,780 (94,780 ) — Total 1,702,595 807,414 438,525 737,945 (93,180 ) 3,593,299 Operating cost and expenses * 1,533,688 759,247 411,781 722,464 (8,548 ) 3,418,632 Operating profit 168,907 48,167 26,744 15,481 (84,632 ) 174,667 Other income (deductions) 5,390 1,499 539 82 13,563 21,073 Income before income taxes 174,297 49,666 27,283 15,563 (71,069 ) 195,740 Total assets 863,381 313,141 273,525 424,911 2,893,393 4,768,351 Depreciation and amortization 58,373 35,805 11,760 41,420 89,969 237,327 Capital expenditures 51,623 24,016 7,074 33,515 95,000 211,228 2018: Net sales: External customers 1,804,002 969,660 437,305 740,970 — 3,951,937 Intersegment 3,299 775 273 101,971 (106,318 ) — Total 1,807,301 970,435 437,578 842,941 (106,318 ) 3,951,937 Operating cost and expenses 1,586,497 843,599 408,739 787,276 (17,126 ) 3,608,985 Operating profit 220,804 126,836 28,839 55,665 (89,192 ) 342,952 Other income (deductions) 8,383 4,179 640 2,181 4,557 19,940 Income before income taxes 229,187 131,015 29,479 57,846 (84,635 ) 362,892 Total assets 923,261 371,944 247,282 404,628 2,952,350 4,899,465 Depreciation and amortization 64,964 38,054 9,365 41,069 98,102 251,554 Capital expenditures 48,127 25,712 7,454 24,175 95,036 200,504 2017: Net sales: External customers 1,802,542 1,098,525 434,985 743,963 — 4,080,015 Intersegment 2,240 600 1,202 85,950 (89,992 ) — Total 1,804,782 1,099,125 436,187 829,913 (89,992 ) 4,080,015 Operating cost and expenses 1,615,521 922,838 414,246 791,947 13,858 3,758,410 Operating profit 189,261 176,287 21,941 37,966 (103,850 ) 321,605 Other income (deductions) 6,108 2,572 564 1,155 21,880 32,279 Income before income taxes 195,369 178,859 22,505 39,121 (81,970 ) 353,884 Total assets 946,213 368,410 238,824 394,742 3,250,102 5,198,291 Depreciation and amortization 72,346 39,694 5,212 41,737 102,892 261,881 Impairment losses on goodwill 21,721 — — 12,191 — 33,912 Capital expenditures 46,769 27,220 8,963 17,908 80,529 181,389 * During 2019, the Company implemented a restructuring plan centered in Europe with the goal of reorganizing sales structure and improving profitability mainly in the the is 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, 2019, 2018 and 2017 is as follows: Years ended December 31 2019 2018 2017 (Millions of yen) Office Monochrome copiers 261,964 280,035 287,823 Color copiers 382,845 403,522 405,576 Printers 624,601 702,378 702,491 Others 430,243 418,067 406,652 Total 1,699,653 1,804,002 1,802,542 Imaging System Cameras 466,306 594,567 702,598 Inkjet printers 285,821 318,382 333,721 Others 54,298 56,711 62,206 Total 806,425 969,660 1,098,525 Medical System Diagnostic equipment 437,456 437,305 434,985 Industry and Others Lithography equipment 157,160 199,722 193,113 Others 491,005 541,248 550,850 Total 648,165 740,970 743,963 Corporate 1,600 — — Consolidated 3,593,299 3,951,937 4,080,015 Information by major geographic area as of and for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 (Millions of yen) Net sales: Japan 872,534 869,577 884,828 Americas 1,029,078 1,076,402 1,107,515 Europe 882,480 1,015,428 1,028,415 Asia and Oceania 809,207 990,530 1,059,257 Total 3,593,299 3,951,937 4,080,015 Long-lived assets: Japan 1,053,074 1,046,065 1,081,522 Americas 148,669 129,989 141,937 Europe 191,050 169,357 174,889 Asia and Oceania 159,217 136,602 149,244 Total 1,552,010 1,482,013 1,547,592 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 ¥ 958,442 995,245 1,022,305 Long-lived equipment, intangible assets, and operating lease right-of-use assets for each geographic area. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 23. Subsequent Event s On January 17, 2020, Canon borrowed ¥100,000 million under its existing overdraft facilities with Mizuho Bank, Ltd. and MUFG Bank, Ltd. for required operating funds. Additionally, on March 19, 2020, Canon borrowed ¥50,000 million under its existing overdraft facilities with Mizuho Bank, Ltd. and MUFG Bank, Ltd. for required operating funds. The overdraft facilities bear interest at a rate equal to a base rate plus a spread. On February 25, 2020, the Board of Directors of the Company approved and implemented a plan to repurchase up to 19.2 million shares of the Company’s common stock at a cost of up to ¥50,000 million for the period from February 26, 2020 to May 27, 2020. Such repurchases are intended to improve capital efficiency and ensure flexible capital strategy. Common stock repurchased in the Tokyo Stock Exchange between February 26, 2020 and March 6, 2020 under the aforementioned plan was 18,093,400 shares at a cost of ¥50,000 million. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
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 end of (Millions of yen) Year ended December 31, 2019: Allowance for doubtful receivables Trade receivables 11,477 1,840 (2,189 ) (769 ) 10,359 Finance receivables 2,675 1,495 (1,653 ) 110 2,627 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 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 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 |
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 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 ¥4,236 million, ¥6,044 million and ¥9,775 million for the years ended December 31, 2019, 2018 and 2017, respec t |
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-sale available-for-sale Available-for-sale available-for-sale earnings and the amount related to all other factors is recognized in other comprehensive income (loss). For 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 |
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 years to years . |
Leases | (l) Leases As for lessor accounting, Canon provides leasing arrangement to its customers primarily for the sales of office products. 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 As for lessee accounting, Canon has operating and finance leases for various assets including office buildings, warehouses, employees’ accommodations, and vehicles. Canon determines if an arrangement is a lease at the inception of each contract. Some of the contracts include options to extend or to terminate the lease. Canon takes such options into accounts to determine the lease term when it is reasonably certain that it will exercise these options. Canon’s lease arrangements do not contain material residual value guarantees or material restrictive covenants. As a rate implicit in the most of Canon’s leases cannot be determined, Canon uses incremental borrowing rate based on the information available at commencement to determine the present values of lease payments. Canon has lease contracts with lease and non-lease non-lease associated |
Goodwill and Other Intangible Assets | ( m Goodwill and o i a 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 8 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 8 years to 15 years, respectively. Certain costs incurred in connection with developing or obtaining internal-use internal-use obtains certain software to be sold where related costs are capitalized after establishment of technological feasibility. |
Environmental Liabilities | (n) 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 | ( o 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 measured 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 | ( p 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 | ( q 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 | ( r 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 4 |
Research and Development Costs | (s) Research and Development Research and development costs are expensed as incurred. |
Advertising Costs | ( t Advertising Costs Advertising costs are expensed as incurred. Advertising expenses were ¥46,665 million, ¥58,729 million |
Shipping and Handling Costs | ( u Shipping and Handling Costs Shipping and handling costs totaled ¥51,718 million, ¥54,844 million and ¥52,953 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in selling, general and administrative expenses in the consolidated statements of income. |
Derivative Financial Instruments | ( v Derivative Financial Instruments All derivatives are recognized at fair value and are included in prepaid expenses 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, and reclassified in the same income statement line item in which the earnings effect of the hedged 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 | ( w 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 | ( x Recent Accounting Guidance Recently adopted accounting guidance In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, requires lessees to recognize most leases on their balance sheets but recognize expenses on their income statements in a manner similar to the previous guidance. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. The FASB also modified the definition of a lease. Additionally, this guidance expands the qualitative and quantitative disclosures related to leases. This guidance is effective for annual reporting periods beginning after December 15, 2018. Canon applied the guidance from the quarter beginning January 1, 2019. Canon applied the package of practical expedients that allows it not to reassess whether any existing contracts at or expired contracts prior to the adoption date are or contain leases, lease classification and whether initial direct costs qualify for capitalization, in addition to the short term lease exception. Canon also adopted the transition method for which no restatement of comparative periods and no reassessment of land easements not previously accounted for as a lease that existed at or expired prior to the adoption date are required. The right of use assets for operating leases recognized at January 1, 2019 million. The corresponding lease liabilities were also recognized. The adoption of this guidance did not have a material impact on its consolidated results of operation. For further information, please refer to Notes 6 and 1 8 In August 2017, the FASB issued ASU No. 2017-12, previously Recently issued accounting guidance not yet adopted In June 2016, the FASB issued ASU No. 2016-13, will |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
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, 2019 and 2018 are as follows: Years ended December 31 2019 2018 (Millions of yen) Net gains and (losses) recognized during the period on equity securities 2,148 (6,092 ) Less: Net gains and (losses) recognized during the period on equity securities sold during the period (76 ) 675 Unrealized gains and (losses) recognized during the period on equity securities still held at December 31. 2,224 (6,767 ) |
Trade Receivables (Tables)
Trade Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Trade Receivables | Trade receivables are summarized as follows: December 31 2019 2018 (Millions of yen) Notes 32,952 29,878 Accounts 537,243 594,552 570,195 624,430 Less allowance for doubtful receivables (10,359 ) (11,477 ) 559,836 612,953 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: December 31 2019 2018 (Millions of yen) Finished goods 367,332 393,820 Work in process 165,399 165,003 Raw materials 52,025 52,458 584,756 611,281 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 (Millions of yen) Land 273,014 272,443 Buildings 1,658,270 1,629,683 Machinery and equipment 1,802,624 1,789,226 Construction in progress 77,953 67,045 Finance lease right-of-use assets 4,999 4,517 3,816,860 3,762,914 Less accumulated depreciation (2,727,189 ) (2,671,922 ) 1,089,671 1,090,992 |
Lessor Accounting (Tables)
Lessor Accounting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of lease income | Year ended December 31, 2019 (Millions o f yen) Lease income – sales-type and direct financing leases Revenue at lease commencement 114,312 Interest income on lease receivables 20,382 134,694 Lease income – operating leases 25,403 Variable lease income 6,216 166,313 |
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 2019 2018 (Million s Total minimum lease payments receivable 360,146 351,198 Unguaranteed residual values 13,070 12,661 Executory costs — (2,112 ) Unearned income (33,338 ) (31,007 ) 339,878 330,740 Less allowance for credit losses (2,627 ) (2,675 ) 337,251 328,065 Less current portion (113,892 ) (111,629 ) 223,359 216,436 |
Activity in Allowance for Credit Losses | The activities in the allowance for credit losses are as follows: Years ended December 31 2019 2018 (Millions of yen) Balance at beginning of year 2,675 2,681 Charge-offs (1,653 ) (1,284 ) Provision 1,495 938 Translation adjustments and other 110 340 Balance at end of year 2,627 2,675 |
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 finance leases and non-cancellable operating leases at December 31, 2019 . Financ ing Operating lease s (Millions of yen) Year ending December 31: 2020 128,674 9,893 2021 100,569 6,115 2022 68,921 3,593 2023 39,314 1,116 2024 16,363 401 Thereafter 6,305 56 360,146 21,174 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets Subject to Amortization | The components of intangible assets subject to amortization at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Gross Accumulated Gross Accumulated (Millions of yen) Software 370,178 262,405 362,130 244,188 Customer relationships 153,708 35,276 156,679 27,263 Patents and developed technology 123,609 46,263 123,831 36,029 Trademarks 41,688 13,582 44,449 12,062 License fees 15,944 8,482 16,071 6,461 Other 18,972 11,846 19,319 9,859 724,099 377,854 722,479 335,862 |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment for the years ended December 31, 2019 and 2018 were as follows: Year ended December 31, 2019 Office Imaging Medical Industry and Total (Millions of yen) Goodwill – gross 127,860 48,670 500,896 263,513 940,939 Accumulated impairment losses (20,770 ) — — (11,658 ) (32,428 ) Balance at beginning of year 107,090 48,670 500,896 251,855 908,511 Goodwill acquired during the year — — 8,330 — 8,330 Translation adjustments and other (2,518 ) (1,717 ) (319 ) (13,626 ) (18,180 ) Goodwill – gross 124,613 46,953 508,907 249,478 929,951 Accumulated impairment losses (20,041 ) — — (11,249 ) (31,290 ) Balance at end of year 104,572 46,953 508,907 238,229 898,661 Year ended December 31, 2018 Office Imaging Medical Industry and 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 |
Short-Term Loans and Long-Ter_2
Short-Term Loans and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: December 31 2019 2018 (Millions of yen) Loan from banks; bearing interest of 0.08% at December 31, 2019 and 0.07% at December 31, 2018 *1 354,000 360,000 Other debt *2 4,574 4,602 358,574 364,602 Less current portion (1,234 ) (2,640 ) 357,340 361,962 *1 Canon has the unsecured revolving credit facility contracts expiring December 2021 million of the loan with cash flows generated during the year ended December 31, 2019. The outstanding loans under the credit facilities are *2 The other debt consisted of term-loans and finance |
Aggregate Annual Maturities of Long-Term Debt Outstanding | The aggregate annual maturities of long-term debt outstanding at December 31, 2019 were as follows: (Millions of yen) Year ending December 31: 2020 1,234 2021 355,199 2022 821 2023 487 2024 203 Thereafter 630 358,574 |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Trade Payables | Trade payables are summarized as follows: December 31 2019 2018 (Millions of yen) Notes 56,865 68,140 Accounts 248,447 284,349 305,312 352,489 |
Employee Retirement and Sever_2
Employee Retirement and Severance Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year 927,006 929,630 385,949 423,579 Service cost 30,903 31,241 6,264 7,982 Interest cost 5,074 5,419 8,643 8,691 Plan participants’ contributions — — 1,432 1,535 Actuarial (gain) loss 15,289 (1,844 ) 52,261 (24,297 ) Benefits paid (35,372 ) (33,477 ) (10,863 ) (10,135 ) Plan amendments — (3,963 ) 362 3,257 Curtailments and settlements (17,510 ) — (3,608 ) (1,149 ) Foreign currency exchange rate changes — — (816 ) (23,514 ) Projected benefit obligations at end of year 925,390 927,006 439,624 385,949 Change in plan assets: Fair value of plan assets at beginning of year 682,695 735,513 248,642 254,020 Actual return on plan assets 54,170 (38,010 ) 35,298 (6,042 ) Employer contributions 12,367 12,651 18,016 22,393 Plan participants’ contributions — — 1,432 1,535 Benefits paid (28,549 ) (27,459 ) (10,863 ) (10,135 ) Settlements (16,514 ) — — (1,150 ) Foreign currency exchange rate changes — — 2,304 (11,979 ) Fair value of plan assets at end of year 704,169 682,695 294,829 248,642 Funded status at end of year (221,221 ) (244,311 ) (144,795 ) (137,307 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets at December 31, 2019 and 2018 are as follows: Japanese plans Foreign plans December 31 December 31 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Other assets 1,904 1,536 2,342 1,306 Accrued expenses (818 ) (679 ) (937 ) (992 ) Accrued pension and severance cost (222,307 ) (245,168 ) (146,200 ) (137,621 ) (221,221 ) (244,311 ) (144,795 ) (137,307 ) |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Before Effect of Income Taxes | Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2019 and 2018 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Actuarial loss 231,811 267,355 118,247 95,121 Prior service credit (36,506 ) (48,392 ) 268 (227 ) 195,305 218,963 118,515 94,894 |
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 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Accumulated benefit obligation 892,154 893,154 421,460 371,653 |
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 2019 2018 2019 2018 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations 916,562 918,736 437,780 384,167 Fair value of plan assets 693,437 672,889 290,643 245,554 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations 887,138 891,204 414,729 369,215 Fair value of plan assets 688,754 670,826 285,341 244,826 |
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, 2019, 2018 and 2017 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2019 2018 2017 2019 2018 2017 (Millions of yen) (Millions of yen) Service cost 30,903 31,241 30,889 6,264 7,982 6,962 Interest cost 5,074 5,419 5,689 8,643 8,691 8,691 Expected return on plan assets (19,553 ) (21,983 ) (20,493 ) (11,919 ) (12,601 ) (10,722 ) Amortization of prior service credit (11,877 ) (13,001 ) (12,860 ) (133 ) (217 ) (83 ) Amortization of actuarial loss 15,247 11,900 14,220 4,345 5,108 5,747 (Gain) loss on curtailments and settlements (36 ) — (63 ) (2,197 ) — — 19,758 13,576 17,382 5,003 8,963 10,595 |
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, 2019, 2018 and 2017 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2019 2018 2017 2019 2018 2017 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss (19,328 ) 58,149 (15,771 ) 28,882 (5,654 ) (5,300 ) Current year prior service credit — (3,963 ) 1,149 362 3,257 (1,069 ) Amortization of actuarial loss (15,247 ) (11,900 ) (14,220 ) (4,345 ) (5,108 ) (5,747 ) Amortization of prior service credit 11,877 13,001 12,860 133 217 83 Curtailments and settlements (960 ) — 19 (1,411 ) (63 ) — (23,658 ) 55,287 (15,963 ) 23,621 (7,351 ) (12,033 ) |
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 (8,736 ) (123 ) Actuarial loss 12,506 6,073 |
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 2019 2018 2019 2018 Discount rate 0.5 % 0.6 % 1.6 % 2.4 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 1.0 % 1.9 % 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 2019 2018 2017 2019 2018 2017 Discount rate 0.6 % 0.6 % 0.7 % 2.4 % 2.2 % 2.2 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 2.6 % 1.9 % 1.8 % 2.1 % Expected long-term rate of return on plan assets 3.0 % 2.9 % 3.1 % 5.2 % 4.4 % 4.2 % |
Fair Values of Company's Pension Plans Assets | The three levels of input used to measure fair value are more fully described in Note 21. The fair values of Canon’s pension plan assets at December 31, 2019 and 2018, by asset category, are as follows: December 31, 2019 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) 77,484 — — 77,484 — — — — Foreign companies 5,164 — — 5,164 10,298 — — 10,298 Pooled funds (b) — 164,662 — 164,662 63,557 63,557 Debt securities: Government bonds (c) 130,180 — — 130,180 — — — — Municipal bonds — 1,202 — 1,202 — 2,302 — 2,302 Corporate bonds — 11,711 — 11,711 — 6,472 — 6,472 Pooled funds (d) — 136,655 — 136,655 — 64,259 — 64,259 Mortgage backed securities (and other asset backed securities) — 12,090 — 12,090 — 2,511 — 2,511 Life insurance company general accounts — 121,573 — 121,573 — 9,676 — 9,676 Other assets — 26,979 218 27,197 — 115,102 — 115,102 Investment measured at net asset value — — — 16,251 — — — 20,652 212,828 474,872 218 704,169 10,298 263,879 — 294,829 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 ( e 67,283 — — 67,283 — — — — Foreign companies 5,451 — — 5,451 8,567 — — 8,567 Pooled funds ( f — 137,712 — 137,712 — 49,312 — 49,312 Debt securities: Government bonds ( g 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 ( h — 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 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥118 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 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (d) These funds invest in approximately 25% Japanese government bonds, 55% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 75% foreign government bonds and 25% corporate bonds for foreign plans. (e) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥147 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, 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. |
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: 2020 37,164 12,564 2021 38,203 13,181 2022 41,146 14,083 2023 42,625 14,947 2024 42,803 15,742 2025 – 2029 222,813 94,532 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Japanese Foreign Total (Millions of yen) Income before income taxes 107,329 88,411 195,740 Income taxes: Current 39,483 23,186 62,669 Deferred (4,199 ) (2,247 ) (6,446 ) 35,284 20,939 56,223 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 |
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 2019 2018 2017 Japanese statutory income tax rate 31.0 % 31.0 % 31.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes * 1.7 0.7 3.7 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (4.5 ) (3.0 ) (2.1 ) Tax credit for research and development expenses (2.3 ) (3.4 ) (4.8 ) Change in valuation allowance 0.0 0.4 1.7 Effect of enacted changes in U.S. tax laws — — (3.6 ) Deferred tax liabilities on undistributed earnings of foreign subsidiaries 2.3 0.9 1.1 Other 0.5 (0.1 ) 0.7 Effective income tax rate 28.7 % 26.5 % 27.7 % * 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 2019 2018 (Millions of yen) Other assets 153,948 160,541 Other noncurrent liabilities (59,888 ) (70,336 ) 94,060 90,205 |
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, 2019 and 2018 are presented below: December 31 2019 2018 (Millions of yen) Deferred tax assets: Inventories 10,225 10,739 Accrued business tax 1,282 2,361 Accrued pension and severance cost 107,463 105,933 Research and development – costs capitalized for tax purposes 4,751 4,690 Property, plant and equipment 32,040 33,738 Operating lease liabilities 25,646 — Accrued expenses 25,845 28,015 Net operating losses carried forward 21,294 28,549 Other 41,759 38,683 270,305 252,708 Less valuation allowance (27,678 ) (30,734 ) Total deferred tax assets 242,627 221,974 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (8,769 ) (7,615 ) Tax deductible reserve (4,050 ) (4,050 ) Financing lease revenue (19,029 ) (26,441 ) Operating lease right-of-use assets (25,249 ) — Intangible assets (59,350 ) (66,189 ) Other (32,120 ) (27,474 ) Total deferred tax liabilities (148,567 ) (131,769 ) Net deferred tax assets 94,060 90,205 |
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 1,980 After one year through five years 28,550 After five years through ten years 31,871 After ten years through twenty years 17,137 Indefinite period 51,369 130,907 |
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 2019 2018 2017 (Millions of yen) Balance at beginning of year 8,649 10,282 7,318 Additions for tax positions of the current year — 45 2,956 Additions for tax positions of prior years 204 178 250 Reductions for tax positions of prior years (44 ) (17 ) (915 ) Settlements with tax authorities (402 ) (1,286 ) — Other (287 ) (553 ) 673 Balance at end of year * 8,120 8,649 10,282 * The unrecognized tax benefits were offset by deferred tax assets in the amount of , respectively, and reported under “other noncurrent liabilities” on the consolidated balance sheets. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 are as follows: Foreign Unrealized Gains and Pension Total (Millions of yen) 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 ) (141 ) 488 (26,824 ) (120,500 ) Balance at December 31, 2018 (63,815 ) — 308 (205,564 ) (269,071 ) Cumulative effects of accounting standard update – adoption of ASU No. 2017-12 * — — (122 ) — (122 ) Equity transactions with noncontrolling interests and other (424 ) — — — (424 ) Other comprehensive income (loss) before reclassifications (31,889 ) — (1,723 ) (12,763 ) (46,375 ) Amounts reclassified from accumulated other comprehensive income (loss) (154 ) — 650 7,054 7,550 Net change during the year (32,467 ) — (1,073 ) (5,709 ) (39,249 ) Balance at December 31, 2019 (96,282 ) — (887 ) (211,273 ) (308,442 ) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 are as follows: Amount reclassified from Year ended Year ended Year ended Affected line items in (Millions of yen) Foreign currency translation adjustments (154 ) — (39 ) Other, net — — 12 Income taxes (154 ) — (27 ) Consolidated net income — — 11 Net income attributable to noncontrolling interests (154 ) — (16 ) Net income attributable to Canon Inc. Unrealized gains and losses on — (178 ) (18,472 ) Other, net — 37 5,727 Income taxes — (141 ) (12,745 ) Consolidated net income — — 165 Net income attributable to noncontrolling interests — (141 ) (12,580 ) Net income attributable to Canon Inc. Gains and losses on derivative instruments 661 1,341 5,772 *2 (2 ) (392 ) (1,732 ) Income taxes 659 949 4,040 Consolidated net income (9 ) (4 ) (26 ) Net income attributable to noncontrolling interests 650 945 4,014 Net income attributable to Canon Inc. Pension liability adjustments 9,953 3,853 7,005 Other, net (2,523 ) (699 ) (1,832 ) Income taxes 7,430 3,154 5,173 Consolidated net income (376 ) (69 ) (268 ) Net income attributable to noncontrolling interests 7,054 3,085 4,905 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling i 7,550 3,889 (3,677 ) *1 Amounts in parentheses indicate gains in consolidated statements of income. *2 After the adoption of ASU No 2017-12, |
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) 2019: Foreign currency translation adjustments Amount arising during the year (32,396 ) 393 (32,003 ) Reclassification adjustments for gains and losses realized in net income (154 ) — (154 ) Net change during the year (32,550 ) 393 (32,157 ) Net unrealized gains and losses on securities: Amount arising during the year — — — Reclassification adjustments for gains and losses realized in net income — — — Net change during the year — — — Net gains and losses on derivative instruments: Amount arising during the year (2,180 ) 453 (1,727 ) Reclassification adjustments for gains and losses realized in net income 661 (2 ) 659 Net change during the year (1,519 ) 451 (1,068 ) Pension liability adjustments: Amount arising during the year (9,916 ) (1,144 ) (11,060 ) Reclassification adjustments for gains and losses realized in net income 9,953 (2,523 ) 7,430 Net change during the year 37 (3,667 ) (3,630 ) Other comprehensive income (loss) (34,032 ) (2,823 ) (36,855 ) 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 ) Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 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 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Corporate Consolidated (Millions of yen) 2019: Revenue recognized at a point in time 1,187,306 793,832 290,702 582,156 (93,180 ) 2,760,816 Revenue recognized over time 515,289 13,582 147,823 155,789 — 832,483 Total 1,702,595 807,414 438,525 737,945 (93,180 ) 3,593,299 Office Imaging Medical Industry and Others Corporate Consolidated (Millions of yen) 2018: Revenue recognized at a point in time 1,286,100 957,518 305,457 635,906 (106,318 ) 3,078,663 Revenue recognized over time 521,201 12,917 132,121 207,035 — 873,274 Total 1,807,301 970,435 437,578 842,941 (106,318 ) 3,951,937 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Year ended December 31, 201 8 Expected term of option (in years) 6.0 6.0 Expected volatility 19.97 % 23.02 % Dividend yield 5.05 % 4.14 % Risk-free interest rate (0.16 %) (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, 2019, 2018 and 2017 is presented below: Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2017 603,000 3,990 0.2 — Forfeited/Expired (603,000 ) 3,990 Outstanding at December 31, 2017 — — — Granted 74,000 1 Outstanding at December 31, 2018 74,000 1 29.3 222 Granted 116,300 1 Exercised (4,500 ) 1 Outstanding at December 31, 2019 185,800 1 29.0 555 Exercisable at December 31, 2019 185,800 1 29.0 555 |
Net Income Attributable to Ca_2
Net Income Attributable to Canon Inc. Shareholders per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 2017 (Millions of yen) Basic 125,105 252,755 241,923 Diluted net income attributable to C anon Inc. 125,103 252,755 241,923 (Number of shares) Average common shares outstanding 1,069,956,767 1,079,753,008 1,085,439,370 Effect of dilutive securities: Stock options 158,173 49,319 – Diluted common shares outstanding 1,070,114,940 1,079,802,327 1,085,439,370 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 116.93 234.09 222.88 Diluted 116.91 234.08 222.88 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contract Amounts of Foreign Exchange Contracts | Contract amounts of foreign exchange contracts at December 31, 2019 and 2018 are set forth below: December 31 2019 2018 (Millions of yen) To sell foreign currencies 180,242 230,505 To buy foreign currencies 32,618 30,816 |
Designated as Hedging Instrument | |
Fair Value of Derivative Instruments in Consolidated Balance Sheets | Derivatives designated as hedging instruments Fair value December 31 Balance sheet location 2019 2018 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 34 521 Liabilities: Foreign exchange contracts Other current liabilities 828 323 |
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 2019 2018 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 317 2,622 Liabilities: Foreign exchange contracts Other current liabilities 1,745 443 |
Cash Flow Hedging | Designated as Hedging Instrument | |
Effect of Derivative Instruments in Consolidated Statements of Income | Derivatives in cash flow hedging relationships Year ended December 31 Gain (loss) Gain (loss) reclassified from income Amount Location Amount (Millions of yen) 2019: Foreign exchange contracts (2,180 ) Net sales (661 ) 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 ) |
Cash Flow Hedging | Not Designated as Hedging Instrument | |
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 2019 2018 2017 (Millions of yen) Foreign exchange contracts Other, net 805 5,284 (7,932 ) |
Lessee Accounting (Tables)
Lessee Accounting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Income Statement | Supplemental income statement information is as follows: Year ended (Millions of yen) Operating lease cost 43,236 Short-term lease cost 14,374 Other lease cost 168 57,778 |
Supplemental Cash Flow Information | Supplemental cash flow information is as follows. Year ended (Millions of yen) Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases 41,368 Noncash activity – Rights of use assets obtained in exchange for lease liabilities Operating leases 33,939 |
Schedule Of Future Minimum Rental Payments For Operating Leases | The following is a schedule by year of the future minimum lease payments under operating leases at December 31, 2019. ( ) Year ending December 31: 2020 34,317 2021 26,094 2022 18,924 2023 13,950 2024 10,280 Thereafter 19,108 Total future minimum lease payments 122,673 Less Imputed Interest (7,101 ) 115,572 |
Summary of Remaining Lease Termand Discount Rate | The following is remaining lease term and discount rate under operating leases at December 31, 2019. December 31, 2019 Weighted-average remaining lease term 62 months Weighted-average discount rate 2.2 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Accrued Product Warranty Costs | Accrued product warranty costs are included in accrued expenses in the accompanying consolidated balance sheets and the changes for the years ended December 31, 2019 and 2018 are summarized as follows: Years ended December 31 2019 2018 (Millions of yen) Balance at beginning of year 17,318 17,452 Additions 15,945 18,870 Utilization (14,488 ) (14,707 ) Other (2,929 ) (4,297 ) Balance at end of year 15,846 17,318 |
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, 2019 | |
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, 2019 and 2018 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, and the fair values of these instruments approximate their carrying amounts. The summary also excludes investments and derivative instruments which are disclosed in Note 2 and Note 21, and Note 17, respectively. December 31 2019 2018 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments (354,444 ) (354,444 ) (364,602 ) (364,570 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018. December 31, 2019 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 506 — 506 Investments: Fund trusts and others 489 241 — 730 Equity securities 16,740 — — 16,740 Prepaid expenses and other current assets: Derivatives — 351 — 351 Total assets 17,229 1,098 — 18,327 Liabilities: Other current liabilities: Derivatives — 2,573 — 2,573 Total liabilities — 2,573 — 2,573 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: 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 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. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017 is as follows: Office Imaging Medical System Industry and Corporate and Consolidated (Millions of yen) 2019: Net sales: External customers 1,699,653 806,425 437,456 648,165 1,600 3,593,299 Intersegment 2,942 989 1,069 89,780 (94,780 ) — Total 1,702,595 807,414 438,525 737,945 (93,180 ) 3,593,299 Operating cost and expenses * 1,533,688 759,247 411,781 722,464 (8,548 ) 3,418,632 Operating profit 168,907 48,167 26,744 15,481 (84,632 ) 174,667 Other income (deductions) 5,390 1,499 539 82 13,563 21,073 Income before income taxes 174,297 49,666 27,283 15,563 (71,069 ) 195,740 Total assets 863,381 313,141 273,525 424,911 2,893,393 4,768,351 Depreciation and amortization 58,373 35,805 11,760 41,420 89,969 237,327 Capital expenditures 51,623 24,016 7,074 33,515 95,000 211,228 2018: Net sales: External customers 1,804,002 969,660 437,305 740,970 — 3,951,937 Intersegment 3,299 775 273 101,971 (106,318 ) — Total 1,807,301 970,435 437,578 842,941 (106,318 ) 3,951,937 Operating cost and expenses 1,586,497 843,599 408,739 787,276 (17,126 ) 3,608,985 Operating profit 220,804 126,836 28,839 55,665 (89,192 ) 342,952 Other income (deductions) 8,383 4,179 640 2,181 4,557 19,940 Income before income taxes 229,187 131,015 29,479 57,846 (84,635 ) 362,892 Total assets 923,261 371,944 247,282 404,628 2,952,350 4,899,465 Depreciation and amortization 64,964 38,054 9,365 41,069 98,102 251,554 Capital expenditures 48,127 25,712 7,454 24,175 95,036 200,504 2017: Net sales: External customers 1,802,542 1,098,525 434,985 743,963 — 4,080,015 Intersegment 2,240 600 1,202 85,950 (89,992 ) — Total 1,804,782 1,099,125 436,187 829,913 (89,992 ) 4,080,015 Operating cost and expenses 1,615,521 922,838 414,246 791,947 13,858 3,758,410 Operating profit 189,261 176,287 21,941 37,966 (103,850 ) 321,605 Other income (deductions) 6,108 2,572 564 1,155 21,880 32,279 Income before income taxes 195,369 178,859 22,505 39,121 (81,970 ) 353,884 Total assets 946,213 368,410 238,824 394,742 3,250,102 5,198,291 Depreciation and amortization 72,346 39,694 5,212 41,737 102,892 261,881 Impairment losses on goodwill 21,721 — — 12,191 — 33,912 Capital expenditures 46,769 27,220 8,963 17,908 80,529 181,389 * During 2019, the Company implemented a restructuring plan centered in Europe with the goal of reorganizing sales structure and improving profitability mainly in the the is |
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, 2019, 2018 and 2017 is as follows: Years ended December 31 2019 2018 2017 (Millions of yen) Office Monochrome copiers 261,964 280,035 287,823 Color copiers 382,845 403,522 405,576 Printers 624,601 702,378 702,491 Others 430,243 418,067 406,652 Total 1,699,653 1,804,002 1,802,542 Imaging System Cameras 466,306 594,567 702,598 Inkjet printers 285,821 318,382 333,721 Others 54,298 56,711 62,206 Total 806,425 969,660 1,098,525 Medical System Diagnostic equipment 437,456 437,305 434,985 Industry and Others Lithography equipment 157,160 199,722 193,113 Others 491,005 541,248 550,850 Total 648,165 740,970 743,963 Corporate 1,600 — — Consolidated 3,593,299 3,951,937 4,080,015 |
Information by Major Geographic Area | Information by major geographic area as of and for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 (Millions of yen) Net sales: Japan 872,534 869,577 884,828 Americas 1,029,078 1,076,402 1,107,515 Europe 882,480 1,015,428 1,028,415 Asia and Oceania 809,207 990,530 1,059,257 Total 3,593,299 3,951,937 4,080,015 Long-lived assets: Japan 1,053,074 1,046,065 1,081,522 Americas 148,669 129,989 141,937 Europe 191,050 169,357 174,889 Asia and Oceania 159,217 136,602 149,244 Total 1,552,010 1,482,013 1,547,592 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019JPY (¥)Entity | Dec. 31, 2018JPY (¥) | Dec. 31, 2017JPY (¥) | Jan. 01, 2019JPY (¥) | |
Significant Accounting Policies [Line Items] | ||||
Foreign currency exchange gains (losses) | ¥ (4,236) | ¥ (6,044) | ¥ (9,775) | |
Advertising expenses | 46,665 | 58,729 | 61,207 | |
Right of use assets and lease obligations for operating leases | ¥ 114,418 | |||
Accounting Standards Update 2016-02 [Member] | ||||
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 | 8 years | |||
Minimum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 3 years | |||
Minimum | Machinery and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 1 year | |||
Minimum | Assets Leased to Others | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation period | 2 years | |||
Maximum | Computer software, intangible asset | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful life | 8 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 | 50 years | |||
Available-for-sale Securities | ||||
Significant Accounting Policies [Line Items] | ||||
Cash equivalents | ¥ 506 | 70,500 | ||
Selling, General and Administrative Expenses | ||||
Significant Accounting Policies [Line Items] | ||||
Shipping and handling cost | ¥ 51,718 | ¥ 54,844 | ¥ 52,953 | |
Consolidated Net Sales | HP Inc. | Office Business Unit | Customer Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 13.00% | 13.60% | 13.10% | |
Foreign | ||||
Significant Accounting Policies [Line Items] | ||||
Number of manufacturing plants | Entity | 29 | |||
Japan | ||||
Significant Accounting Policies [Line Items] | ||||
Number of manufacturing plants | Entity | 14 |
Investments - Schedule of unrea
Investments - Schedule of unrealized and Realized Gains and Losses Equity Securities (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Realized Investment Gains (Losses) [Abstract] | ||
Net gains and (losses) recognized during the period on equity securities | ¥ 2,148 | ¥ (6,092) |
Less: Net gains and (losses) recognized during the period on equity securities sold during the period | (76) | 675 |
Unrealized gains and (losses) recognized during the period on equity securities still held at December 31. | ¥ 2,224 | ¥ (6,767) |
Investments - Additional Inform
Investments - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Abstract] | |||
Gross realized gains | ¥ 18,514 | ||
Gross realized losses | 42 | ||
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 | ¥ 8,448 | ¥ 4,629 | |
Time deposits with original maturities of more than three months | 1,767 | 326 | |
Investments in affiliated companies accounted for by the equity method | 19,988 | 21,312 | |
Canon's share of net earnings in affiliated companies accounted for by the equity method, included in other income (deductions) | ¥ (311) | ¥ 1,414 | ¥ 1,196 |
Trade Receivables (Schedule of
Trade Receivables (Schedule of Trade Receivables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Notes | ¥ 32,952 | ¥ 29,878 |
Accounts | 537,243 | 594,552 |
Trade Accounts And Notes Receivable Gross Current, Total | 570,195 | 624,430 |
Less allowance for doubtful receivables | (10,359) | (11,477) |
Trade receivables, net | ¥ 559,836 | ¥ 612,953 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | ¥ 367,332 | ¥ 393,820 |
Work in process | 165,399 | 165,003 |
Raw materials | 52,025 | 52,458 |
Inventories | ¥ 584,756 | ¥ 611,281 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | ¥ 273,014 | ¥ 272,443 |
Buildings | 1,658,270 | 1,629,683 |
Machinery and equipment | 1,802,624 | 1,789,226 |
Construction in progress | 77,953 | 67,045 |
Finance lease right-of-use assets | 4,999 | 4,517 |
Property, Plant and Equipment, Gross, Total | 3,816,860 | 3,762,914 |
Less accumulated depreciation | (2,727,189) | (2,671,922) |
Property, plant and equipment, net (Notes 5 and 6) | ¥ 1,089,671 | ¥ 1,090,992 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Number Of Shares Outstanding Basic And Diluted Proforma [Abstract] | |||
Depreciation expenses | ¥ 170,418 | ¥ 175,771 | ¥ 189,712 |
Amount due for purchase of property, plant and equipment | ¥ 30,601 | ¥ 32,433 |
Lessor Accounting - Additional
Lessor Accounting - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases Disclosure [Line Items] | ||
Proceeds from sale of lease finance receivables | ¥ 11,710 | ¥ 21,909 |
Financing receivables | 337,251 | 328,065 |
Uncollectible Receivables [Member] | ||
Leases Disclosure [Line Items] | ||
Financing receivables | ¥ 28,616 | 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 | ¥ 116,681 | 120,457 |
Accumulated depreciation on property, plant and equipment lease | ¥ 82,633 | ¥ 82,698 |
Lessor Accounting (Summary of L
Lessor Accounting (Summary of Lease Income) (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019JPY (¥) | |
Sales Type And Direct Financing Leases Income [Abstract] | |
Revenue at lease commencement | ¥ 114,312 |
Interest income on lease receivables | 20,382 |
Sales-type and direct financing leases income total | 134,694 |
Lease income – operating leases | 25,403 |
Variable lease income | 6,216 |
Total lease income | ¥ 166,313 |
Lessor Accounting (Components o
Lessor Accounting (Components of Finance Receivables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Leases [Abstract] | |||
Total minimum lease payments receivable | ¥ 360,146 | ¥ 351,198 | |
Unguaranteed residual values | 13,070 | 12,661 | |
Executory costs | (2,112) | ||
Unearned income | (33,338) | (31,007) | |
Aggregated net investment in finance leases | 339,878 | 330,740 | |
Less allowance for credit losses | (2,627) | (2,675) | ¥ (2,681) |
Total | 337,251 | 328,065 | |
Less current portion | (113,892) | (111,629) | |
Total | ¥ 223,359 | ¥ 216,436 |
Lessor Accounting (Activity in
Lessor Accounting (Activity in Allowance for Credit Losses) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Balance at beginning of year | ¥ 2,675 | ¥ 2,681 |
Charge-offs | (1,653) | (1,284) |
Provision | 1,495 | 938 |
Translation adjustments and other | 110 | 340 |
Balance at end of year | ¥ 2,627 | ¥ 2,675 |
Lessor Accounting (Future Minim
Lessor Accounting (Future Minimum Lease Payments to be Received Under Financing Leases and Noncancelable Operating Leases) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing leases | ||
2020 | ¥ 128,674 | |
2021 | 100,569 | |
2022 | 68,921 | |
2023 | 39,314 | |
2024 | 16,363 | |
Thereafter | 6,305 | |
Total minimum lease payments receivable | 360,146 | ¥ 351,198 |
Operating leases | ||
2020 | 9,893 | |
2021 | 6,115 | |
2022 | 3,593 | |
2023 | 1,116 | |
2024 | 401 | |
Thereafter | 56 | |
Operating Leases, Future Minimum Payments Receivable, Total | ¥ 21,174 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 34,259 | ¥ 48,004 | |
Weighted average amortization period for acquired intangible assets | 5 years | 6 years | |
Aggregate amortization expense | ¥ 66,909 | ¥ 75,783 | ¥ 72,169 |
Estimated amortization expense for intangible assets, 2020 | 58,646 | ||
Estimated amortization expense for intangible assets, 2021 | 51,386 | ||
Estimated amortization expense for intangible assets, 2022 | 42,866 | ||
Estimated amortization expense for intangible assets, 2023 | 32,678 | ||
Estimated amortization expense for intangible assets, 2024 | 27,818 | ||
Computer software, intangible asset | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 32,334 | ¥ 36,859 | |
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 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Components of Intangible Assets Subject to Amortization) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | ¥ 724,099 | ¥ 722,479 |
Accumulated amortization | 377,854 | 335,862 |
Computer software, intangible asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 370,178 | 362,130 |
Accumulated amortization | 262,405 | 244,188 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 153,708 | 156,679 |
Accumulated amortization | 35,276 | 27,263 |
Patents and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 123,609 | 123,831 |
Accumulated amortization | 46,263 | 36,029 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 41,688 | 44,449 |
Accumulated amortization | 13,582 | 12,062 |
License Fees | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 15,944 | 16,071 |
Accumulated amortization | 8,482 | 6,461 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 18,972 | 19,319 |
Accumulated amortization | ¥ 11,846 | ¥ 9,859 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill - gross | ¥ 929,951 | ¥ 940,939 | ¥ 971,178 |
Accumulated impairment losses | (31,290) | (32,428) | (34,456) |
Balance at beginning of year | 908,511 | 936,722 | |
Goodwill acquired during the year | 8,330 | 7,627 | |
Translation adjustments and other | (18,180) | (35,838) | |
Balance at end of year | 898,661 | 908,511 | |
Office Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 124,613 | 127,860 | 135,125 |
Accumulated impairment losses | (20,041) | (20,770) | (22,069) |
Balance at beginning of year | 107,090 | 113,056 | |
Translation adjustments and other | (2,518) | (5,966) | |
Balance at end of year | 104,572 | 107,090 | |
Imaging System Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 46,953 | 48,670 | 52,561 |
Balance at beginning of year | 48,670 | 52,561 | |
Translation adjustments and other | (1,717) | (3,891) | |
Balance at end of year | 46,953 | 48,670 | |
Medical System Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 508,907 | 500,896 | 499,915 |
Balance at beginning of year | 500,896 | 499,915 | |
Goodwill acquired during the year | 8,330 | 1,521 | |
Translation adjustments and other | (319) | (540) | |
Balance at end of year | 508,907 | 500,896 | |
Industry and Others Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 249,478 | 263,513 | 283,577 |
Accumulated impairment losses | (11,249) | (11,658) | ¥ (12,387) |
Balance at beginning of year | 251,855 | 271,190 | |
Goodwill acquired during the year | 6,106 | ||
Translation adjustments and other | (13,626) | (25,441) | |
Balance at end of year | ¥ 238,229 | ¥ 251,855 |
Short-Term Loans and Long-Ter_3
Short-Term Loans and Long-Term Debt - Additional Information (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Short-term loans consisting of bank borrowings | ¥ 40,800 | ¥ 35,887 |
Weighted average interest rate on short-term borrowings | 0.21% | 0.43% |
Unused borrowing capacity | ¥ 150,000 |
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, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Loan from the banks; bearing interest of 0.07% at December 31, 2019 and 0.06% at December 31, 2018 | [1] | ¥ 354,000 | ¥ 360,000 |
Other debt | [2] | 4,574 | 4,602 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | 358,574 | 364,602 | |
Less current portion | (1,234) | (2,640) | |
Long-term debt, excluding current installments (Notes 9 and 20) | ¥ 357,340 | ¥ 361,962 | |
[1] | Canon has the unsecured revolving credit facility contracts expiring in December 2021. Canon prepaid ¥6,000 million of the loan with cash flows generated during the year ended December 31, 2019. The outstanding loans under the credit facilities are ¥354,000 million at a floating interest of 0.08% and Canon has no unused credit facilities as of December 31, 2019. | ||
[2] | The other debt consisted of term-loans and finance lease obligations as of December 31, 2019 and 2018. |
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, 2019 | Dec. 31, 2018 | ||
Debt Disclosure [Abstract] | |||
Loan from the banks, maturity date after refinancing | [1] | Dec. 31, 2021 | |
Loan principle prepaid | [1] | ¥ 6,000 | |
Loan from the banks | [1] | ¥ 354,000 | ¥ 360,000 |
Loan from the banks, floating interest rate | [1] | 0.08% | 0.07% |
Unused line of credit | ¥ 0 | ||
[1] | Canon has the unsecured revolving credit facility contracts expiring in December 2021. Canon prepaid ¥6,000 million of the loan with cash flows generated during the year ended December 31, 2019. The outstanding loans under the credit facilities are ¥354,000 million at a floating interest of 0.08% and Canon has no unused credit facilities as of December 31, 2019. |
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, 2019 | Dec. 31, 2018 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
2020 | ¥ 1,234 | |
2021 | 355,199 | |
2022 | 821 | |
2023 | 487 | |
2024 | 203 | |
Thereafter | 630 | |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | ¥ 358,574 | ¥ 364,602 |
Trade Payables (Schedule of Tra
Trade Payables (Schedule of Trade Payables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Notes | ¥ 56,865 | ¥ 68,140 |
Accounts | 248,447 | 284,349 |
Trade payables | ¥ 305,312 | ¥ 352,489 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Japan | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | ¥ 927,006 | ¥ 929,630 | |
Service cost | 30,903 | 31,241 | ¥ 30,889 |
Interest cost | 5,074 | 5,419 | 5,689 |
Actuarial (gain) loss | 15,289 | (1,844) | |
Benefits paid | (35,372) | (33,477) | |
Plan amendments | (3,963) | ||
Curtailments and settlements | (17,510) | ||
Foreign currency exchange rate changes | 0 | ||
Projected benefit obligations at end of year | 925,390 | 927,006 | 929,630 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 682,695 | 735,513 | |
Actual return on plan assets | 54,170 | (38,010) | |
Employer contributions | 12,367 | 12,651 | |
Benefits paid | (28,549) | (27,459) | |
Settlements | (16,514) | ||
Fair value of plan assets at end of year | 704,169 | 682,695 | 735,513 |
Funded status at end of year | (221,221) | (244,311) | |
Foreign Plans | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | 385,949 | 423,579 | |
Service cost | 6,264 | 7,982 | 6,962 |
Interest cost | 8,643 | 8,691 | 8,691 |
Plan participants' contributions | 1,432 | 1,535 | |
Actuarial (gain) loss | 52,261 | (24,297) | |
Benefits paid | (10,863) | (10,135) | |
Plan amendments | 362 | 3,257 | |
Curtailments and settlements | (3,608) | (1,149) | |
Foreign currency exchange rate changes | (816) | (23,514) | |
Projected benefit obligations at end of year | 439,624 | 385,949 | 423,579 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 248,642 | 254,020 | |
Actual return on plan assets | 35,298 | (6,042) | |
Employer contributions | 18,016 | 22,393 | |
Plan participants' contributions | 1,432 | 1,535 | |
Benefits paid | (10,863) | (10,135) | |
Settlements | 0 | (1,150) | |
Foreign currency exchange rate changes | 2,304 | (11,979) | |
Fair value of plan assets at end of year | 294,829 | 248,642 | ¥ 254,020 |
Funded status at end of year | ¥ (144,795) | ¥ (137,307) |
Employee Retirement and Sever_4
Employee Retirement and Severance Benefits - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | |
Employee Benefits Disclosure [Line Items] | ||||
Multiemployer pension plan contribution | ¥ 4,321 | ¥ 4,452 | ¥ 4,165 | |
Multiemployer plans collective bargaining arrangements, percentage of contribution | 98.00% | |||
Defined contribution pension plans, cost recognized | 17,414 | ¥ 19,570 | 18,979 | |
Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | 218 | 1,451 | ||
Japan | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | 704,169 | 682,695 | 735,513 | |
Japan | Scenario, Forecast | ||||
Employee Benefits Disclosure [Line Items] | ||||
Expected contribution in defined benefit pension plan for the year ending December 31, 2020 | ¥ 13,257 | |||
Japan | Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 218 | 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 | ¥ 121,573 | 123,747 | ||
Foreign Plans | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 294,829 | 248,642 | ¥ 254,020 | |
Foreign Plans | Scenario, Forecast | ||||
Employee Benefits Disclosure [Line Items] | ||||
Expected contribution in defined benefit pension plan for the year ending December 31, 2020 | ¥ 18,985 | |||
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 | 20.00% | |||
Foreign Plans | Life Insurance Company General Accounts | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 9,676 | ¥ 9,019 | ||
Foreign Plans | Real estate assets | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 45.00% |
Employee Retirement and Sever_5
Employee Retirement and Severance Benefits (Amounts Recognized in Consolidated Balance Sheets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension and severance cost | ¥ (368,507) | ¥ (382,789) |
Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 1,904 | 1,536 |
Accrued expenses | (818) | (679) |
Accrued pension and severance cost | (222,307) | (245,168) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | (221,221) | (244,311) |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 2,342 | 1,306 |
Accrued expenses | (937) | (992) |
Accrued pension and severance cost | (146,200) | (137,621) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | ¥ (144,795) | ¥ (137,307) |
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, 2019 | Dec. 31, 2018 |
Japan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | ¥ 231,811 | ¥ 267,355 |
Prior service credit | (36,506) | (48,392) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax, Total | 195,305 | 218,963 |
Foreign Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | 118,247 | 95,121 |
Prior service credit | 268 | (227) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax, Total | ¥ 118,515 | ¥ 94,894 |
Employee Retirement and Sever_7
Employee Retirement and Severance Benefits (Accumulated Benefit Obligation for All Defined Benefit Plans) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 892,154 | ¥ 893,154 |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 421,460 | ¥ 371,653 |
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, 2019 | Dec. 31, 2018 |
Japan | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | ¥ 916,562 | ¥ 918,736 |
Fair value of plan assets | 693,437 | 672,889 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 887,138 | 891,204 |
Fair value of plan assets | 688,754 | 670,826 |
Foreign Plans | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | 437,780 | 384,167 |
Fair value of plan assets | 290,643 | 245,554 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 414,729 | 369,215 |
Fair value of plan assets | ¥ 285,341 | ¥ 244,826 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | ¥ 30,903 | ¥ 31,241 | ¥ 30,889 |
Interest cost | 5,074 | 5,419 | 5,689 |
Expected return on plan assets | (19,553) | (21,983) | (20,493) |
Amortization of prior service credit | (11,877) | (13,001) | (12,860) |
Amortization of actuarial loss | 15,247 | 11,900 | 14,220 |
(Gain) loss on curtailments and settlements | (36) | (63) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 19,758 | 13,576 | 17,382 |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6,264 | 7,982 | 6,962 |
Interest cost | 8,643 | 8,691 | 8,691 |
Expected return on plan assets | (11,919) | (12,601) | (10,722) |
Amortization of prior service credit | (133) | (217) | (83) |
Amortization of actuarial loss | 4,345 | 5,108 | 5,747 |
(Gain) loss on curtailments and settlements | (2,197) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | ¥ 5,003 | ¥ 8,963 | ¥ 10,595 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, other comprehensive income loss adjustment before tax | ¥ (37) | ¥ 47,936 | ¥ (27,996) |
Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | (19,328) | 58,149 | (15,771) |
Current year prior service credit | (3,963) | 1,149 | |
Amortization of actuarial loss | (15,247) | (11,900) | (14,220) |
Amortization of prior service credit | 11,877 | 13,001 | 12,860 |
Curtailments and settlements | (960) | 19 | |
Defined benefit plan, other comprehensive income loss adjustment before tax | (23,658) | 55,287 | (15,963) |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | 28,882 | (5,654) | (5,300) |
Current year prior service credit | 362 | 3,257 | (1,069) |
Amortization of actuarial loss | (4,345) | (5,108) | (5,747) |
Amortization of prior service credit | 133 | 217 | 83 |
Curtailments and settlements | (1,411) | (63) | |
Defined benefit plan, other comprehensive income loss adjustment before tax | ¥ 23,621 | ¥ (7,351) | ¥ (12,033) |
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, 2019JPY (¥) |
Japan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | ¥ (8,736) |
Actuarial loss | 12,506 |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (123) |
Actuarial loss | ¥ 6,073 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Japan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 0.50% | 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% | 0.60% | 0.70% |
Assumed rate of increase in future compensation levels | 2.60% | 2.60% | 2.60% |
Expected long-term rate of return on plan assets | 3.00% | 2.90% | 3.10% |
Foreign Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 1.60% | 2.40% | |
Assumed rate of increase in future compensation levels | 1.00% | 1.90% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.40% | 2.20% | 2.20% |
Assumed rate of increase in future compensation levels | 1.90% | 1.80% | 2.10% |
Expected long-term rate of return on plan assets | 5.20% | 4.40% | 4.20% |
Employee Retirement and Seve_13
Employee Retirement and Severance Benefits (Fair Values of Company's Pension Plans Assets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Fair Value, Inputs, Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | ¥ 218 | ¥ 1,451 | ||||
Japan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 704,169 | 682,695 | ¥ 735,513 | |||
Japan | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [1] | 164,662 | 137,712 | |||
Japan | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 130,180 | [2] | 137,858 | [3] | ||
Japan | Japanese Companies Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 77,484 | [4] | 67,283 | [5] | ||
Japan | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 5,164 | 5,451 | ||||
Japan | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,202 | 1,483 | ||||
Japan | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 11,711 | 12,595 | ||||
Japan | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 136,655 | [6] | 140,712 | [7] | ||
Japan | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 12,090 | 8,489 | ||||
Japan | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 121,573 | 123,747 | ||||
Japan | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 27,197 | 31,460 | ||||
Japan | Investment Measured at Net Asset Value | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 16,251 | 15,905 | ||||
Japan | Fair Value, Inputs, Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 212,828 | 210,592 | ||||
Japan | Fair Value, Inputs, Level 1 | Government Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 130,180 | [2] | 137,858 | [3] | ||
Japan | Fair Value, Inputs, Level 1 | Japanese Companies Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 77,484 | [4] | 67,283 | [5] | ||
Japan | Fair Value, Inputs, Level 1 | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 5,164 | 5,451 | ||||
Japan | Fair Value, Inputs, Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 474,872 | 454,747 | ||||
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] | 164,662 | 137,712 | |||
Japan | Fair Value, Inputs, Level 2 | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 1,202 | 1,483 | ||||
Japan | Fair Value, Inputs, Level 2 | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 11,711 | 12,595 | ||||
Japan | Fair Value, Inputs, Level 2 | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 136,655 | [6] | 140,712 | [7] | ||
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 | 12,090 | 8,489 | ||||
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 | 121,573 | 123,747 | ||||
Japan | Fair Value, Inputs, Level 2 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 26,979 | 30,009 | ||||
Japan | Fair Value, Inputs, Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 218 | 1,451 | ||||
Japan | Fair Value, Inputs, Level 3 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 218 | 1,451 | ||||
Foreign Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 294,829 | 248,642 | ¥ 254,020 | |||
Foreign Plans | Pooled Equity Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | [1] | 63,557 | 49,312 | |||
Foreign Plans | Foreign Corporate Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 10,298 | 8,567 | ||||
Foreign Plans | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 2,302 | 2,642 | ||||
Foreign Plans | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 6,472 | 6,318 | ||||
Foreign Plans | Pooled Debt Securities Funds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 64,259 | [6] | 59,419 | [7] | ||
Foreign Plans | Mortgage and Asset Backed Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 2,511 | |||||
Foreign Plans | Life Insurance Company General Accounts | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 9,676 | 9,019 | ||||
Foreign Plans | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 115,102 | 95,844 | ||||
Foreign Plans | Investment Measured at Net Asset Value | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 20,652 | 17,521 | ||||
Foreign Plans | Fair Value, Inputs, Level 1 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 10,298 | 8,567 | ||||
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 | 10,298 | 8,567 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 263,879 | 222,554 | ||||
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] | 63,557 | 49,312 | |||
Foreign Plans | Fair Value, Inputs, Level 2 | Municipal Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 2,302 | 2,642 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Corporate Bonds | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | 6,472 | 6,318 | ||||
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 | 64,259 | [6] | 59,419 | [7] | ||
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 | 2,511 | |||||
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 | 9,676 | 9,019 | ||||
Foreign Plans | Fair Value, Inputs, Level 2 | Other Assets | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair values of Company's pension plans assets | ¥ 115,102 | ¥ 95,844 | ||||
[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 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. | |||||
[3] | This class includes approximately 90% Japanese government bonds and 10% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. | |||||
[4] | The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥118 million. | |||||
[5] | The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥147 million. | |||||
[6] | These funds invest in approximately 25% Japanese government bonds, 55% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 75% foreign government bonds and 25% corporate bonds for foreign plans. | |||||
[7] | 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. |
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, 2019 | Dec. 31, 2018 |
Pooled Equity Securities Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount of Employer and Related Party Securities Included in Plan Assets | ¥ 118 | ¥ 147 |
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 | 85.00% | 90.00% |
Government Bonds | Foreign Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 15.00% | 10.00% |
Pooled Debt Securities Funds | Japanese Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 25.00% | 30.00% |
Pooled Debt Securities Funds | Foreign Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 55.00% | 50.00% |
Pooled Debt Securities Funds | Foreign Government Bonds | Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 75.00% | 35.00% |
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% | 15.00% |
Pooled Debt Securities Funds | Corporate Bonds | Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 25.00% | 65.00% |
Employee Retirement and Seve_15
Employee Retirement and Severance Benefits (Estimated Future Benefit Payments) (Detail) ¥ in Millions | Dec. 31, 2019JPY (¥) |
Japan | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2020 | ¥ 37,164 |
Year ending December 31, 2021 | 38,203 |
Year ending December 31, 2022 | 41,146 |
Year ending December 31, 2023 | 42,625 |
Year ending December 31, 2024 | 42,803 |
Year ending December 31, 2025 - 2029 | 222,813 |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2020 | 12,564 |
Year ending December 31, 2021 | 13,181 |
Year ending December 31, 2022 | 14,083 |
Year ending December 31, 2023 | 14,947 |
Year ending December 31, 2024 | 15,742 |
Year ending December 31, 2025 - 2029 | ¥ 94,532 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Income before income taxes | ¥ 195,740 | ¥ 362,892 | ¥ 353,884 |
Income taxes: | |||
Current | 62,669 | 107,999 | 115,627 |
Deferred | (6,446) | (11,849) | (17,603) |
Income taxes | 56,223 | 96,150 | 98,024 |
Domestic Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 107,329 | 241,474 | 276,149 |
Income taxes: | |||
Current | 39,483 | 75,556 | 80,225 |
Deferred | (4,199) | (6,552) | (7,453) |
Income taxes | 35,284 | 69,004 | 72,772 |
Foreign Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 88,411 | 121,418 | 77,735 |
Income taxes: | |||
Current | 23,186 | 32,443 | 35,402 |
Deferred | (2,247) | (5,297) | (10,150) |
Income taxes | ¥ 20,939 | ¥ 27,146 | ¥ 25,252 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Effective income tax rate | 31.00% | 31.00% | 31.00% |
Net increase (decrease) in the total valuation allowance | ¥ 3,056 | ¥ 49 | ¥ 4,096 |
Net operating losses which can be carried forward for income tax purposes to reduce future taxable income | 130,907 | ||
Deferred tax liabilities not recognized for a portion of undistributed earnings of foreign subsidiaries | 24,886 | ||
Undistributed earnings of subsidiaries for which tax liabilities were not recognized earlier | 994,886 | ||
Total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized | ¥ 8,120 | ¥ 8,649 | |
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 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Japanese Statutory Income Tax Rate and Effective Income Tax Rate) (Detail) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Japanese statutory income tax rate | 31.00% | 31.00% | 31.00% | |
Increase (reduction) in income taxes resulting from: | ||||
Expenses not deductible for tax purposes | [1] | 1.70% | 0.70% | 3.70% |
Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate | (4.50%) | (3.00%) | (2.10%) | |
Tax credit for research and development expenses | (2.30%) | (3.40%) | (4.80%) | |
Change in valuation allowance | 0.00% | 0.40% | 1.70% | |
Effect of enacted changes in U.S. tax laws | (3.60%) | |||
Deferred tax liabilities on undistributed earnings of foreign subsidiaries | 2.30% | 0.90% | 1.10% | |
Other | 0.50% | (0.10%) | 0.70% | |
Effective income tax rate | 28.70% | 26.50% | 27.70% | |
[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, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Other assets | ¥ 153,948 | ¥ 160,541 |
Other noncurrent liabilities | (59,888) | (70,336) |
Net deferred tax assets | ¥ 94,060 | ¥ 90,205 |
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, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Inventories | ¥ 10,225 | ¥ 10,739 |
Accrued business tax | 1,282 | 2,361 |
Accrued pension and severance cost | 107,463 | 105,933 |
Research and development - costs capitalized for tax purposes | 4,751 | 4,690 |
Property, plant and equipment | 32,040 | 33,738 |
Operating lease liabilities | 25,646 | |
Accrued expenses | 25,845 | 28,015 |
Net operating losses carried forward | 21,294 | 28,549 |
Other | 41,759 | 38,683 |
Deferred Tax Assets, Gross, Total | 270,305 | 252,708 |
Less valuation allowance | (27,678) | (30,734) |
Total deferred tax assets | 242,627 | 221,974 |
Deferred tax liabilities: | ||
Undistributed earnings of foreign subsidiaries | (8,769) | (7,615) |
Tax deductible reserve | (4,050) | (4,050) |
Financing lease revenue | (19,029) | (26,441) |
Operating lease right-of-use assets | (25,249) | |
Intangible assets | (59,350) | (66,189) |
Other | (32,120) | (27,474) |
Total deferred tax liabilities | (148,567) | (131,769) |
Net deferred tax assets | ¥ 94,060 | ¥ 90,205 |
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, 2019JPY (¥) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 130,907 |
Within one year | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 1,980 |
After one year through five years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 28,550 |
After five years through ten years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 31,871 |
After ten years through twenty years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 17,137 |
Indefinite period | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 51,369 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income Tax Disclosure [Abstract] | ||||||
Balance at beginning of year | ¥ 8,649 | [1] | ¥ 10,282 | [1] | ¥ 7,318 | |
Additions for tax positions of the current year | 45 | 2,956 | ||||
Additions for tax positions of prior years | 204 | 178 | 250 | |||
Reductions for tax positions of prior years | (44) | (17) | (915) | |||
Settlements with tax authorities | (402) | (1,286) | ||||
Other | (287) | (553) | 673 | |||
Balance at end of year | [1] | 8,120 | 8,649 | 10,282 | ||
Unrecognized tax benefits, offset | ¥ 933 | ¥ 2,043 | ¥ 124 | |||
[1] | The unrecognized tax benefits were offset by deferred tax assets in the amount of ¥933 million, ¥2,043 million and ¥124 million as of December 31, 2019, 2018 and 2017, respectively, and reported under “other noncurrent liabilities” on the consolidated balance sheets. |
Legal Reserve and Retained Ea_2
Legal Reserve and Retained Earnings - Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019JPY (¥) | |
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 | ¥ 85,107 |
Amount available for dividends under the Corporation Law of Japan | 853,374 |
Retained earnings included Canon's equity in undistributed earnings of affiliated companies accounted for by the equity method | ¥ 17,657 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | ¥ 3,017,913 | ¥ 3,096,175 | ¥ 2,994,622 |
Equity transactions with noncontrolling interests and other | (1,596) | (37,715) | |
Net change during the year | (36,855) | (123,369) | 61,523 |
Balance at end of year | 2,891,918 | 3,017,913 | 3,096,175 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (63,815) | 30,208 | (13,960) |
Equity transactions with noncontrolling interests and other | (424) | (4,200) | |
Other comprehensive income (loss) before reclassifications | (31,889) | (89,823) | 44,184 |
Amounts reclassified from accumulated other comprehensive income (loss) | (154) | (16) | |
Net change during the year | (32,467) | (94,023) | 44,168 |
Balance at end of year | (96,282) | (63,815) | 30,208 |
Unrealized gains and losses on securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 5,484 | 15,251 | |
Other comprehensive income (loss) before reclassifications | 2,813 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (141) | (12,580) | |
Net change during the year | (141) | (9,767) | |
Balance at end of year | 5,484 | ||
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 | (5,343) | ||
Gains and losses on derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 308 | (180) | (2,742) |
Other comprehensive income (loss) before reclassifications | (1,723) | (457) | (1,452) |
Amounts reclassified from accumulated other comprehensive income (loss) | 650 | 945 | 4,014 |
Net change during the year | (1,073) | 488 | 2,562 |
Balance at end of year | (887) | 308 | (180) |
Gains and losses on derivative instruments | ASU 2017-12 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative effects of accounting standard update - adoption of ASU | (122) | ||
Pension liability adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (205,564) | (178,740) | (198,430) |
Other comprehensive income (loss) before reclassifications | (12,763) | (29,909) | 14,785 |
Amounts reclassified from accumulated other comprehensive income (loss) | 7,054 | 3,085 | 4,905 |
Net change during the year | (5,709) | (26,824) | 19,690 |
Balance at end of year | (211,273) | (205,564) | (178,740) |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (269,071) | (143,228) | (199,881) |
Equity transactions with noncontrolling interests and other | (424) | (4,200) | |
Other comprehensive income (loss) before reclassifications | (46,375) | (120,189) | 60,330 |
Amounts reclassified from accumulated other comprehensive income (loss) | 7,550 | 3,889 | (3,677) |
Net change during the year | (39,249) | (120,500) | 56,653 |
Balance at end of year | (308,442) | (269,071) | ¥ (143,228) |
AOCI Attributable to Parent | ASU 2016-01 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative effects of accounting standard update - adoption of ASU | ¥ (5,343) | ||
AOCI Attributable to Parent | ASU 2017-12 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative effects of accounting standard update - adoption of ASU | ¥ (122) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | ¥ (16,585) | ¥ (14,133) | ¥ (27,085) | |
Income taxes | 56,223 | 96,150 | 98,024 | |
Consolidated net income | (139,517) | (266,742) | (255,860) | |
Net income attributable to noncontrolling interests | 14,412 | 13,987 | 13,937 | |
Net income attributable to Canon Inc. | (125,105) | (252,755) | (241,923) | |
Total amount reclassified, net of tax and noncontrolling interests | [1] | 7,550 | 3,889 | (3,677) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | (154) | (39) | |
Income taxes | [1] | 12 | ||
Consolidated net income | [1] | (154) | (27) | |
Net income attributable to noncontrolling interests | [1] | 11 | ||
Net income attributable to Canon Inc. | [1] | (154) | (16) | |
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) | |
Income taxes | [1] | 37 | 5,727 | |
Consolidated net income | [1] | (141) | (12,745) | |
Net income attributable to noncontrolling interests | [1] | 165 | ||
Net income attributable to Canon Inc. | [1] | (141) | (12,580) | |
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],[2] | 661 | 1,341 | 5,772 |
Income taxes | [1] | (2) | (392) | (1,732) |
Consolidated net income | [1] | 659 | 949 | 4,040 |
Net income attributable to noncontrolling interests | [1] | (9) | (4) | (26) |
Net income attributable to Canon Inc. | [1] | 650 | 945 | 4,014 |
Reclassification out of Accumulated Other Comprehensive Income | Pension liability adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | [1] | 9,953 | 3,853 | 7,005 |
Income taxes | [1] | (2,523) | (699) | (1,832) |
Consolidated net income | [1] | 7,430 | 3,154 | 5,173 |
Net income attributable to noncontrolling interests | [1] | (376) | (69) | (268) |
Net income attributable to Canon Inc. | [1] | ¥ 7,054 | ¥ 3,085 | ¥ 4,905 |
[1] | Amounts in parentheses indicate gains in consolidated statements of income. | |||
[2] | After the adoption of ASU No 2017-12, gains and losses on derivative are reclassified into net sales, which had been classified into other, net. Please refer to Notes 1(x) and 17 for more detailed information. |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency translation adjustments, Before-tax amount | |||
Amount arising during the year, Before-tax amount | ¥ (32,396) | ¥ (93,955) | ¥ 47,825 |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | (154) | (39) | |
Net change during the year, Before-tax amount | (32,550) | (93,955) | 47,786 |
Net unrealized gains and losses on securities, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | 5,100 | ||
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | (178) | (18,472) | |
Net change during the year, Before-tax amount | (178) | (13,372) | |
Net gains and losses on derivative instruments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | (2,180) | (586) | (2,080) |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 661 | 1,341 | 5,772 |
Net change during the year, Before-tax amount | (1,519) | 755 | 3,692 |
Pension liability adjustments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | (9,916) | (51,789) | 20,991 |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 9,953 | 3,853 | 7,005 |
Net change during the year, Before-tax amount | 37 | (47,936) | 27,996 |
Other Comprehensive Income (Loss), Before-tax amount | (34,032) | (141,314) | 66,102 |
Foreign currency translation adjustments, Tax (expense) or benefit | |||
Amount arising during the year, Tax (expense) or benefit | 393 | 809 | (708) |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | 12 | ||
Net change during the year, Tax (expense) or benefit | 393 | 809 | (696) |
Net unrealized gains and losses on securities, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | (1,717) | ||
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | 37 | 5,727 | |
Net change during the year, Tax (expense) or benefit | 37 | 4,010 | |
Net gains and losses on derivative instruments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | 453 | 125 | 628 |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (2) | (392) | (1,732) |
Net change during the year, Tax (expense) or benefit | 451 | (267) | (1,104) |
Pension liability adjustments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | (1,144) | 18,065 | (4,957) |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (2,523) | (699) | (1,832) |
Net change during the year, Tax (expense) or benefit | (3,667) | 17,366 | (6,789) |
Other comprehensive income (loss), Tax (expense) or benefit | (2,823) | 17,945 | (4,579) |
Foreign currency translation adjustments, Net-of-tax amount | |||
Amount arising during the year, Net-of-tax amount | (32,003) | (93,146) | 47,117 |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | (154) | (27) | |
Net change during the year, Net-of-tax amount | (32,157) | (93,146) | 47,090 |
Net unrealized gains and losses on securities, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | 3,383 | ||
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | (141) | (12,745) | |
Net change during the year, Net-of-tax amount | (141) | (9,362) | |
Net gains and losses on derivative instruments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | (1,727) | (461) | (1,452) |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 659 | 949 | 4,040 |
Net change during the year, Net-of-tax amount | (1,068) | 488 | 2,588 |
Pension liability adjustments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | (11,060) | (33,724) | 16,034 |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 7,430 | 3,154 | 5,173 |
Net change during the year, Net-of-tax amount | (3,630) | (30,570) | 21,207 |
Other comprehensive income (loss), Net-of-tax amount | ¥ (36,855) | ¥ (123,369) | ¥ 61,523 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, revenue recognized | ¥ 88,306 | |
Revenue remaining performance obligation | ¥ 114,617 | |
Revenue remaining performance obligation, percentage within a year | 73.00% | |
Revenue remaining performance obligation, percentage within two year | 27.00% | |
Fixed maintenance service contract as percentage of service revenue | 12.00% | |
Fixed maintenance service contract remaining period | 2 years | |
Other Current Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | ¥ 113,030 | ¥ 123,686 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | ¥ 43,783 | ¥ 50,799 |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregated Revenue By Timing) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | ¥ 3,593,299 | ¥ 3,951,937 | ¥ 4,080,015 |
Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,699,653 | 1,804,002 | 1,802,542 |
Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 806,425 | 969,660 | 1,098,525 |
Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 437,456 | 437,305 | 434,985 |
Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 648,165 | 740,970 | 743,963 |
Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,600 | ||
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,593,299 | 3,951,937 | 4,080,015 |
Operating Segments | Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,702,595 | 1,807,301 | 1,804,782 |
Operating Segments | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 807,414 | 970,435 | 1,099,125 |
Operating Segments | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 438,525 | 437,578 | 436,187 |
Operating Segments | Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 737,945 | 842,941 | 829,913 |
Operating Segments | Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (93,180) | (106,318) | ¥ (89,992) |
Operating Segments | Revenue Recognized at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,760,816 | 3,078,663 | |
Operating Segments | Revenue Recognized at a Point in Time | Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,187,306 | 1,286,100 | |
Operating Segments | Revenue Recognized at a Point in Time | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 793,832 | 957,518 | |
Operating Segments | Revenue Recognized at a Point in Time | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 290,702 | 305,457 | |
Operating Segments | Revenue Recognized at a Point in Time | Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 582,156 | 635,906 | |
Operating Segments | Revenue Recognized at a Point in Time | Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (93,180) | (106,318) | |
Operating Segments | Revenue Recognized Overtime | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 832,483 | 873,274 | |
Operating Segments | Revenue Recognized Overtime | Office Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 515,289 | 521,201 | |
Operating Segments | Revenue Recognized Overtime | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 13,582 | 12,917 | |
Operating Segments | Revenue Recognized Overtime | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 147,823 | 132,121 | |
Operating Segments | Revenue Recognized Overtime | Industry and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | ¥ 155,789 | ¥ 207,035 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | Apr. 26, 2019 | May 02, 2018 | May 01, 2011 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Number of common stock shares authorized to be acquired under stock options granted | 116,300 | 74,000 | 912,000 | ||||
Exercisable period (in years) | 30 years | 30 years | 4 years | ||||
Grant-date fair value per share of stock options | ¥ 2,281 | ¥ 2,948 | ¥ 772 | ||||
Vesting period | 2 years | ||||||
Recognized compensation cost for stock options | ¥ 265 | ¥ 218 | ¥ 0 | ||||
Fair value of shares vested | 265 | 218 | 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, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected term of option (in years) | 6 years | 6 years |
Expected volatility | 19.97% | 23.02% |
Dividend yield | 5.05% | 4.14% |
Risk-free interest rate | (0.16%) | (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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding at beginning of year | 74,000 | 603,000 | |
Granted | 116,300 | 74,000 | |
Exercised | (4,500) | ||
Forfeited/Expired | (603,000) | ||
Outstanding at end of year | 185,800 | 74,000 | |
Exercisable at end of year | 185,800 | ||
Weighted-Average Exercise Price | |||
Outstanding at beginning of year | ¥ 1 | ¥ 3,990 | |
Granted | 1 | ¥ 1 | |
Exercised | 1 | ||
Forfeited/Expired | ¥ 3,990 | ||
Outstanding at end of year | 1 | ¥ 1 | |
Exercisable at end of year | ¥ 1 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding at end of year | 29 years | 29 years 3 months 18 days | 2 months 12 days |
Exercisable at end of year | 29 years | ||
Aggregate Intrinsic Value | |||
Outstanding at end of year | ¥ 555 | ¥ 222 | |
Exercisable at end of year | ¥ 555 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Basic Numerator [Abstract] | |||
Basic net income attributable to Canon Inc. | ¥ 125,105 | ¥ 252,755 | ¥ 241,923 |
Diluted net income attributable to Canon Inc. | ¥ 125,103 | ¥ 252,755 | ¥ 241,923 |
Average common shares outstanding | 1,069,956,767 | 1,079,753,008 | 1,085,439,370 |
Stock options | 158,173 | 49,319 | |
Diluted common shares outstanding | 1,070,114,940 | 1,079,802,327 | 1,085,439,370 |
Net income attributable to Canon Inc. shareholders per share: | |||
Basic | ¥ 116.93 | ¥ 234.09 | ¥ 222.88 |
Diluted | ¥ 116.91 | ¥ 234.08 | ¥ 222.88 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Contract Amounts of Foreign Exchange Contracts) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
To sell foreign currencies | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 180,242 | ¥ 230,505 |
To buy foreign currencies | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 32,618 | ¥ 30,816 |
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, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets designated as Hedging Instrument | ¥ 34 | ¥ 521 |
Derivative assets not designated as Hedging Instrument | 317 | 2,622 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities designated as hedging instruments | 828 | 323 |
Derivatives liabilities not designated as hedging instruments | ¥ 1,745 | ¥ 443 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | ¥ (2,180) | ¥ (586) | ¥ (2,080) |
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (661) | (1,341) | (5,772) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | (2,180) | (586) | (2,080) |
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (1,341) | (5,772) | |
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (661) | ||
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | (682) | (332) | |
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 | ¥ 805 | ¥ 5,284 | ¥ (7,932) |
Lessee Accounting (Supplemental
Lessee Accounting (Supplemental Income Statement Information) (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019JPY (¥) | |
Lease, Cost [Abstract] | |
Operating lease cost | ¥ 43,236 |
Short-term lease cost | 14,374 |
Other lease cost | 168 |
Total lease cost | ¥ 57,778 |
Lessee Accounting (Supplement_2
Lessee Accounting (Supplemental Cash Flow Information) (Details) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019JPY (¥) | |
Cash paid for amount included in the measurement of lease liabilities | |
Operating cash flows from operating leases | ¥ 41,368 |
Noncash activity – Rights of use assets obtained in exchange for lease liabilities | |
Operating leases | ¥ 33,939 |
Lessee Accounting (Future Minim
Lessee Accounting (Future Minimum Lease Payments) (Detail) ¥ in Millions | Dec. 31, 2019JPY (¥) |
Leases [Abstract] | |
2020 | ¥ 34,317 |
2021 | 26,094 |
2022 | 18,924 |
2023 | 13,950 |
2024 | 10,280 |
Thereafter | 19,108 |
Total future minimum lease payments | 122,673 |
Less Imputed Interest | (7,101) |
Operating leases | ¥ 115,572 |
Lessee Accounting (Remaining Le
Lessee Accounting (Remaining Lease Term And Discount Rate) (Detail) | Dec. 31, 2019 |
Lessee Disclosure [Abstract] | |
Weighted-average remaining lease term | 62 months |
Weighted-average discount rate | 2.20% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Line Items] | ||
Deposits made under lease arrangements included in noncurrent receivables | ¥ 11,778 | ¥ 12,728 |
Guarantees, maximum amount of undiscounted payments in case of borrower's default | ¥ 2,987 | |
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 | 15 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 | 5 years | |
Purchase of Property, Plant and Equipment | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments outstanding | ¥ 36,241 | |
Purchase of Parts and Raw Materials | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments outstanding | ¥ 112,831 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Changes in Accrued Product Warranty Costs) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of year | ¥ 17,318 | ¥ 17,452 |
Additions | 15,945 | 18,870 |
Utilization | (14,488) | (14,707) |
Other | (2,929) | (4,297) |
Balance at end of year | ¥ 15,846 | ¥ 17,318 |
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, 2019 | Dec. 31, 2018 |
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 | ¥ (354,444) | ¥ (364,602) |
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 | ¥ (354,444) | ¥ (364,570) |
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, 2019 | Dec. 31, 2018 | |
Consolidated Trade Receivables | Credit Concentration Risk from Single Customer | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 10.00% | 12.00% |
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, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | ¥ 506 | ¥ 70,500 |
Prepaid expenses and other current assets: | ||
Derivatives | 351 | 3,143 |
Total assets | 18,327 | 89,098 |
Other current liabilities: | ||
Derivatives | 2,573 | 766 |
Total liabilities | 2,573 | 766 |
Corporate Bonds | ||
Short-term investments: | ||
Available-for-sale | 630 | |
Fund Trusts and Others | ||
Investments: | ||
Available-for-sale | 730 | 1,038 |
Equity Securities | ||
Investments: | ||
Available-for-sale | 16,740 | 13,787 |
Fair Value, Inputs, Level 1 | ||
Prepaid expenses and other current assets: | ||
Total assets | 17,229 | 15,047 |
Fair Value, Inputs, Level 1 | Corporate Bonds | ||
Short-term investments: | ||
Available-for-sale | 630 | |
Fair Value, Inputs, Level 1 | Fund Trusts and Others | ||
Investments: | ||
Available-for-sale | 489 | 630 |
Fair Value, Inputs, Level 1 | Equity Securities | ||
Investments: | ||
Available-for-sale | 16,740 | 13,787 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and cash equivalents | 506 | 70,500 |
Prepaid expenses and other current assets: | ||
Derivatives | 351 | 3,143 |
Total assets | 1,098 | 74,051 |
Other current liabilities: | ||
Derivatives | 2,573 | 766 |
Total liabilities | 2,573 | 766 |
Fair Value, Inputs, Level 2 | Fund Trusts and Others | ||
Investments: | ||
Available-for-sale | ¥ 241 | ¥ 408 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019JPY (¥)Segment | Dec. 31, 2018JPY (¥) | Dec. 31, 2017JPY (¥) | |
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 | ¥ 3,593,299 | ¥ 3,951,937 | ¥ 4,080,015 |
UNITED STATES | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 958,442 | ¥ 995,245 | ¥ 1,022,305 |
Segment Information (Informatio
Segment Information (Information about Operating Results and Assets for Each Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net sales: | ||||
Net sales | ¥ 3,593,299 | ¥ 3,951,937 | ¥ 4,080,015 | |
Operating cost and expenses | 3,418,632 | [1] | 3,608,985 | 3,758,410 |
Operating profit | 174,667 | 342,952 | 321,605 | |
Other income (deductions) | 21,073 | 19,940 | 32,279 | |
Income before income taxes | 195,740 | 362,892 | 353,884 | |
Total assets | 4,768,351 | 4,899,465 | 5,198,291 | |
Depreciation and amortization | 237,327 | 251,554 | 261,881 | |
Impairment losses on goodwill | 33,912 | |||
Capital expenditures | 211,228 | 200,504 | 181,389 | |
Office Business Unit | ||||
Net sales: | ||||
Net sales | 1,699,653 | 1,804,002 | 1,802,542 | |
Operating cost and expenses | 1,533,688 | [1] | 1,586,497 | 1,615,521 |
Operating profit | 168,907 | 220,804 | 189,261 | |
Other income (deductions) | 5,390 | 8,383 | 6,108 | |
Income before income taxes | 174,297 | 229,187 | 195,369 | |
Total assets | 863,381 | 923,261 | 946,213 | |
Depreciation and amortization | 58,373 | 64,964 | 72,346 | |
Impairment losses on goodwill | 21,721 | |||
Capital expenditures | 51,623 | 48,127 | 46,769 | |
Imaging System Business Unit | ||||
Net sales: | ||||
Net sales | 806,425 | 969,660 | 1,098,525 | |
Operating cost and expenses | 759,247 | [1] | 843,599 | 922,838 |
Operating profit | 48,167 | 126,836 | 176,287 | |
Other income (deductions) | 1,499 | 4,179 | 2,572 | |
Income before income taxes | 49,666 | 131,015 | 178,859 | |
Total assets | 313,141 | 371,944 | 368,410 | |
Depreciation and amortization | 35,805 | 38,054 | 39,694 | |
Capital expenditures | 24,016 | 25,712 | 27,220 | |
Medical System Business Unit | ||||
Net sales: | ||||
Net sales | 437,456 | 437,305 | 434,985 | |
Operating cost and expenses | 411,781 | [1] | 408,739 | 414,246 |
Operating profit | 26,744 | 28,839 | 21,941 | |
Other income (deductions) | 539 | 640 | 564 | |
Income before income taxes | 27,283 | 29,479 | 22,505 | |
Total assets | 273,525 | 247,282 | 238,824 | |
Depreciation and amortization | 11,760 | 9,365 | 5,212 | |
Capital expenditures | 7,074 | 7,454 | 8,963 | |
Industry and Others Business Unit | ||||
Net sales: | ||||
Net sales | 648,165 | 740,970 | 743,963 | |
Operating cost and expenses | 722,464 | [1] | 787,276 | 791,947 |
Operating profit | 15,481 | 55,665 | 37,966 | |
Other income (deductions) | 82 | 2,181 | 1,155 | |
Income before income taxes | 15,563 | 57,846 | 39,121 | |
Total assets | 424,911 | 404,628 | 394,742 | |
Depreciation and amortization | 41,420 | 41,069 | 41,737 | |
Impairment losses on goodwill | 12,191 | |||
Capital expenditures | 33,515 | 24,175 | 17,908 | |
Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | 1,600 | |||
Operating cost and expenses | (8,548) | [1] | (17,126) | 13,858 |
Operating profit | (84,632) | (89,192) | (103,850) | |
Other income (deductions) | 13,563 | 4,557 | 21,880 | |
Income before income taxes | (71,069) | (84,635) | (81,970) | |
Total assets | 2,893,393 | 2,952,350 | 3,250,102 | |
Depreciation and amortization | 89,969 | 98,102 | 102,892 | |
Capital expenditures | 95,000 | 95,036 | 80,529 | |
Operating Segments | ||||
Net sales: | ||||
Net sales | 3,593,299 | 3,951,937 | 4,080,015 | |
Operating Segments | Office Business Unit | ||||
Net sales: | ||||
Net sales | 1,702,595 | 1,807,301 | 1,804,782 | |
Operating Segments | Imaging System Business Unit | ||||
Net sales: | ||||
Net sales | 807,414 | 970,435 | 1,099,125 | |
Operating Segments | Medical System Business Unit | ||||
Net sales: | ||||
Net sales | 438,525 | 437,578 | 436,187 | |
Operating Segments | Industry and Others Business Unit | ||||
Net sales: | ||||
Net sales | 737,945 | 842,941 | 829,913 | |
Operating Segments | Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | (93,180) | (106,318) | (89,992) | |
Intersegment Eliminations | Office Business Unit | ||||
Net sales: | ||||
Net sales | 2,942 | 3,299 | 2,240 | |
Intersegment Eliminations | Imaging System Business Unit | ||||
Net sales: | ||||
Net sales | 989 | 775 | 600 | |
Intersegment Eliminations | Medical System Business Unit | ||||
Net sales: | ||||
Net sales | 1,069 | 273 | 1,202 | |
Intersegment Eliminations | Industry and Others Business Unit | ||||
Net sales: | ||||
Net sales | 89,780 | 101,971 | 85,950 | |
Intersegment Eliminations | Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | ¥ (94,780) | ¥ (106,318) | ¥ (89,992) | |
[1] | During 2019, the Company implemented a restructuring plan centered in Europe with the goal of reorganizing sales structure and improving profitability mainly in Office Business Unit. The employee severance charges in Office Business Unit under the plan for the year ended December 31, 2019 were ¥15,621 million and most of the charges are included in selling, general and administrative expenses in the consolidated statement of income. The balance of the related employee severance liability as of December 31, 2019 are ¥10,225 million. The restructuring charges for the years ended December 31, 2018 and 2017 were not significant. |
Segment Information (Informat_2
Segment Information (Information about Operating Results and Assets for Each Segment) (Parenthetical) (Detail) - Employee Severance ¥ in Millions | 12 Months Ended |
Dec. 31, 2019JPY (¥) | |
Segment reporting information [Line Items] | |
Restructuring reserve | ¥ 10,225 |
Selling, General and Administrative Expenses | |
Segment reporting information [Line Items] | |
Restructuring costs | ¥ 15,621 |
Segment Information (Product Sa
Segment Information (Product Sales to External Customers for Each Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 3,593,299 | ¥ 3,951,937 | ¥ 4,080,015 |
Office Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 1,699,653 | 1,804,002 | 1,802,542 |
Office Business Unit | Monochrome Copiers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 261,964 | 280,035 | 287,823 |
Office Business Unit | Color Copiers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 382,845 | 403,522 | 405,576 |
Office Business Unit | Printers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 624,601 | 702,378 | 702,491 |
Office Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 430,243 | 418,067 | 406,652 |
Imaging System Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 806,425 | 969,660 | 1,098,525 |
Imaging System Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 54,298 | 56,711 | 62,206 |
Imaging System Business Unit | Cameras | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 466,306 | 594,567 | 702,598 |
Imaging System Business Unit | Inkjet Printers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 285,821 | 318,382 | 333,721 |
Medical System Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 437,456 | 437,305 | 434,985 |
Industry and Others Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 648,165 | 740,970 | 743,963 |
Industry and Others Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 491,005 | 541,248 | 550,850 |
Industry and Others Business Unit | Lithography Equipment | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 157,160 | ¥ 199,722 | ¥ 193,113 |
Corporate and Eliminations | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 1,600 |
Segment Information (Informat_3
Segment Information (Information by Major Geographic Area) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales: | |||
Net sales | ¥ 3,593,299 | ¥ 3,951,937 | ¥ 4,080,015 |
Long-lived assets: | |||
Long-lived assets | 1,552,010 | 1,482,013 | 1,547,592 |
Japan | |||
Long-lived assets: | |||
Long-lived assets | 1,053,074 | 1,046,065 | 1,081,522 |
Americas | |||
Long-lived assets: | |||
Long-lived assets | 148,669 | 129,989 | 141,937 |
Europe | |||
Long-lived assets: | |||
Long-lived assets | 191,050 | 169,357 | 174,889 |
Asia and Oceania | |||
Long-lived assets: | |||
Long-lived assets | 159,217 | 136,602 | 149,244 |
Japan | |||
Net sales: | |||
Net sales | 872,534 | 869,577 | 884,828 |
America | |||
Net sales: | |||
Net sales | 1,029,078 | 1,076,402 | 1,107,515 |
Europe | |||
Net sales: | |||
Net sales | 882,480 | 1,015,428 | 1,028,415 |
Asia and Oceania | |||
Net sales: | |||
Net sales | ¥ 809,207 | ¥ 990,530 | ¥ 1,059,257 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - JPY (¥) ¥ in Millions | Mar. 19, 2020 | Mar. 06, 2020 | Jan. 17, 2020 | Feb. 25, 2020 |
Subsequent Event [Line Items] | ||||
Number of shares authorised for repurchase | 19,200,000 | |||
Amount authorised for repurchase | ¥ 50,000 | |||
Stock repurchased shares | 18,093,400 | |||
Stock repurchased value | ¥ 50,000 | |||
Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Proceeds from debt | ¥ 50,000 | ¥ 100,000 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade Receivables | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | ¥ 11,477 | ¥ 13,378 | ¥ 11,075 |
Addition- charged to income | 1,840 | 1,347 | 3,574 |
Deduction bad debts written off | (2,189) | (2,789) | (1,787) |
Translation adjustments and other | (769) | (459) | 516 |
Balance at end of period | 10,359 | 11,477 | 13,378 |
Finance Receivables | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 2,675 | 2,681 | 2,325 |
Addition- charged to income | 1,495 | 938 | 1,436 |
Deduction bad debts written off | (1,653) | (1,284) | (1,523) |
Translation adjustments and other | 110 | 340 | 443 |
Balance at end of period | ¥ 2,627 | ¥ 2,675 | ¥ 2,681 |