Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
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, 2021 |
Document Fiscal Year Focus | 2021 |
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 |
ICFR Auditor Attestation Flag | true |
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 |
Auditor Name | Deloitte Touche Tohmatsu LLC |
Auditor Firm ID | 1044 |
Auditor Location | Tokyo, Japan |
Ernst Young Shin Nihon LLC [Member] | |
Auditor Name | Ernst & Young ShinNihon LLC |
Auditor Firm ID | 789 |
Auditor Location | Tokyo, Japan |
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 |
Common stock | |
Title of 12(b) Security | Common Stock (the “shares”) |
Entity Common Stock, Shares Outstanding | 1,045,771,759 |
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 |
Entity Common Stock, Shares Outstanding | 19,101,237 |
Consolidated Balance Sheets
Consolidated Balance Sheets - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents (Note 1) | ¥ 401,395 | ¥ 407,684 |
Short-term investments (Note 2) | 3,377 | 71 |
Trade receivables (Note 3) | 522,432 | 546,771 |
Inventories (Note 4) | 650,568 | 562,807 |
Prepaid expenses and other current assets (Notes 6, 15 and 18) | 314,489 | 284,556 |
Allowance for credit losses (Notes 3 and 6) | (13,916) | (12,746) |
Total current assets | 1,878,345 | 1,789,143 |
Noncurrent receivables (Note 20) | 16,388 | 17,276 |
Investments (Notes 2 and 22) | 60,967 | 49,994 |
Property, plant and equipment, net (Notes 5 and 6) | 1,041,403 | 1,037,680 |
Operating lease right-of-use assets (Note 19) | 95,791 | 107,361 |
Intangible assets, net (Notes 7 and 8) | 301,793 | 318,497 |
Goodwill (Notes 7 and 8) | 953,850 | 915,564 |
Other assets (Notes 6, 11 and 12) | 404,720 | 392,066 |
Allowance for credit losses (Note 6) | (2,369) | (1,967) |
Total assets | 4,750,888 | 4,625,614 |
Current liabilities: | ||
Short-term loans and current portion of long-term debt (Notes 1 and 9) | 44,891 | 392,235 |
Short Term Loans Related To Financial Services | 42,300 | 45,000 |
Other short-term loans and current portion of long-term debt | 2,591 | 347,235 |
Trade payables (Note 10) | 338,604 | 303,809 |
Accrued income taxes (Note 12) | 43,081 | 18,761 |
Accrued expenses (Notes 11 and 20) | 323,929 | 317,716 |
Current operating lease liabilities (Note 19) | 30,945 | 32,307 |
Other current liabilities (Notes 5, 15 and 18) | 279,383 | 261,361 |
Total current liabilities | 1,060,833 | 1,326,189 |
Long-term debt, excluding current installments (Notes 9 and 21) | 179,750 | 4,834 |
Accrued pension and severance cost (Note 11) | 248,467 | 345,897 |
Noncurrent operating lease liabilities (Note 19) | 65,385 | 76,796 |
Other noncurrent liabilities (Notes 12 and 15) | 98,024 | 87,857 |
Total liabilities | 1,652,459 | 1,841,573 |
Canon Inc. shareholders' equity: | ||
Common stock Authorized 3,000,000,000 shares; issued 1,333,763,464 shares in 2021 and 2020 | 174,762 | 174,762 |
Additional paid-in capital (Note 13) | 403,119 | 404,620 |
Legal reserve (Note 13) | 68,015 | 69,436 |
Retained earnings (Note 13) | 3,538,037 | 3,409,371 |
Accumulated other comprehensive income (loss) (Note 14) | (151,794) | (324,789) |
Treasury stock, at cost; 287,991,705 shares in 2021 and 287,989,819 shares in 2020 | (1,158,366) | (1,158,369) |
Total Canon Inc. shareholders' equity | 2,873,773 | 2,575,031 |
Noncontrolling interests | 224,656 | 209,010 |
Total equity | 3,098,429 | 2,784,041 |
Total liabilities and equity | ¥ 4,750,888 | ¥ 4,625,614 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 3,000,000,000 | 1,333,763,464 |
Common stock, shares issued | 3,000,000,000 | 1,333,763,464 |
Treasury stock, shares | 287,991,705 | 287,989,819 |
Consolidated Statements of Inco
Consolidated Statements of Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net sales (Notes 6,15 and 18) | ¥ 3,513,357 | ¥ 3,160,243 | ¥ 3,593,299 |
Cost of sales (Notes 5, 8, 11 and 19) | 1,885,565 | 1,784,375 | 1,983,266 |
Gross profit | 1,627,792 | 1,375,868 | 1,610,033 |
Operating expenses (Notes 1, 5, 8, 11, 16, 19 and 20 ): | |||
Selling, general and administrative expenses | 1,058,536 | 993,009 | 1,137,110 |
Research and development expenses | 287,338 | 272,312 | 298,503 |
Operating expenses | 1,345,874 | 1,265,321 | 1,435,613 |
Operating profit | 281,918 | 110,547 | 174,420 |
Other income (deductions): | |||
Interest and dividend income | 2,232 | 2,923 | 5,526 |
Interest expense | (647) | (854) | (1,038) |
Other, net (Notes 1, 2, 7, 11, 14 and 18) | 19,203 | 17,664 | 16,585 |
Other income (deductions) | 20,788 | 19,733 | 21,073 |
Income before income taxes | 302,706 | 130,280 | 195,493 |
Income taxes (Note 12) | 71,866 | 34,337 | 56,146 |
Consolidated net income | 230,840 | 95,943 | 139,347 |
Less: Net income attributable to noncontrolling interests | 16,122 | 12,625 | 14,383 |
Net income attributable to Canon Inc. | ¥ 214,718 | ¥ 83,318 | ¥ 124,964 |
Net income attributable to Canon Inc. shareholders per share (Note 17): | |||
Basic | ¥ 205.35 | ¥ 79.37 | ¥ 116.79 |
Diluted | ¥ 205.29 | ¥ 79.35 | ¥ 116.77 |
Products And Equipment | |||
Net sales (Notes 6,15 and 18) | ¥ 2,804,680 | ¥ 2,489,829 | ¥ 2,835,428 |
Cost of sales (Notes 5, 8, 11 and 19) | 1,552,766 | 1,463,637 | 1,627,858 |
Services | |||
Net sales (Notes 6,15 and 18) | 708,677 | 670,414 | 757,871 |
Cost of sales (Notes 5, 8, 11 and 19) | ¥ 332,799 | ¥ 320,738 | ¥ 355,408 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | ¥ 230,840 | ¥ 95,943 | ¥ 139,347 |
Other comprehensive income (loss), net of tax (Note 14): | |||
Foreign currency translation adjustments | 120,439 | (17,354) | (32,157) |
Net gains and losses on derivative instruments | (972) | 970 | (1,068) |
Pension liability adjustments | 56,508 | 1,382 | (3,630) |
Net change during the period | 175,975 | (15,002) | (36,855) |
Comprehensive income (loss) | 406,815 | 80,941 | 102,492 |
Less: Comprehensive income attributable to noncontrolling interests | 19,102 | 13,961 | 16,353 |
Comprehensive income (loss) attributable to Canon Inc. | ¥ 387,713 | ¥ 66,980 | ¥ 86,139 |
Consolidated Statements of Equi
Consolidated Statements of Equity - JPY (¥) ¥ in Millions | Total | Cumulative effects of accounting standard update - adoption of ASU | Common stock | Additional paid-in capital | Legal reserve | Other Retained earnings | Other Retained earningsCumulative effects of accounting standard update - adoption of ASU | Total Retained Earnings | Total Retained EarningsCumulative effects of accounting standard update - adoption of ASU | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Cumulative effects of accounting standard update - adoption of ASU | Treasury stock | Total Canon Inc. shareholders' equity | Total Canon Inc. shareholders' equityCumulative effects of accounting standard update - adoption of ASU | Non- controlling interests | Non- controlling interestsCumulative effects of accounting standard update - adoption of ASU |
Balance at beginning of year at Dec. 31, 2018 | ¥ 3,010,145 | ¥ 174,762 | ¥ 404,389 | ¥ 67,116 | ¥ 3,501,950 | ¥ 3,569,066 | ¥ (269,071) | ¥ (1,058,502) | ¥ 2,820,644 | ¥ 189,501 | ||||||
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) | (171,487) | ||||||||||||
Dividends to noncontrolling interests | (5,557) | (5,557) | ||||||||||||||
Transfers to legal reserve | 456 | (456) | ||||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | 139,347 | 124,964 | 124,964 | 124,964 | 14,383 | |||||||||||
Other comprehensive income (loss), net of tax (Note 14): | ||||||||||||||||
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) | 102,492 | 86,139 | 16,353 | |||||||||||||
Repurchases and reissuance of treasury stock | (50,017) | (13) | (10) | (10) | (49,994) | (50,017) | ||||||||||
Balance at end of year at Dec. 31, 2019 | 2,883,980 | 174,762 | 405,017 | 67,572 | 3,455,083 | 3,522,655 | (308,442) | (1,108,496) | 2,685,496 | 198,484 | ||||||
Balance at end of year (ASU 2017-12) at Dec. 31, 2019 | ¥ 122 | ¥ 122 | ¥ (122) | |||||||||||||
Equity transactions with noncontrolling interests and other | 751 | (316) | (9) | (15) | (340) | 1,091 | ||||||||||
Dividends to Canon Inc. shareholders | (126,938) | (126,938) | (126,938) | (126,938) | ||||||||||||
Dividends to noncontrolling interests | (4,526) | (4,526) | ||||||||||||||
Transfers to legal reserve | 1,864 | (1,864) | ||||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | 95,943 | 83,318 | 83,318 | 83,318 | 12,625 | |||||||||||
Other comprehensive income (loss), net of tax (Note 14): | ||||||||||||||||
Foreign currency translation adjustments | (17,354) | (17,355) | (17,355) | 1 | ||||||||||||
Net gains and losses on derivative instruments | 970 | 987 | 987 | (17) | ||||||||||||
Pension liability adjustments | 1,382 | 30 | 30 | 1,352 | ||||||||||||
Comprehensive income (loss) | 80,941 | 66,980 | 13,961 | |||||||||||||
Repurchases and reissuance of treasury stock | (50,008) | (81) | (69) | (69) | (49,858) | (50,008) | ||||||||||
Balance at end of year at Dec. 31, 2020 | 2,784,041 | 174,762 | 404,620 | 69,436 | 3,409,371 | 3,478,807 | (324,789) | (1,158,369) | 2,575,031 | 209,010 | ||||||
Balance at end of year (ASU 2016-13) at Dec. 31, 2020 | ¥ (159) | ¥ (159) | ¥ (159) | ¥ (159) | ||||||||||||
Equity transactions with noncontrolling interests and other | 1,663 | (62) | (62) | 1,725 | ||||||||||||
Dividends to Canon Inc. shareholders | (88,891) | (88,891) | (88,891) | (88,891) | ||||||||||||
Dividends to noncontrolling interests | (5,181) | (5,181) | ||||||||||||||
Transfers to legal reserve | (1,429) | (1,421) | 2,850 | 1,429 | ||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | 230,840 | 214,718 | 214,718 | 214,718 | 16,122 | |||||||||||
Other comprehensive income (loss), net of tax (Note 14): | ||||||||||||||||
Foreign currency translation adjustments | 120,439 | 119,165 | 119,165 | 1,274 | ||||||||||||
Net gains and losses on derivative instruments | (972) | (994) | (994) | 22 | ||||||||||||
Pension liability adjustments | 56,508 | 54,824 | 54,824 | 1,684 | ||||||||||||
Comprehensive income (loss) | 406,815 | 387,713 | 19,102 | |||||||||||||
Repurchases and reissuance of treasury stock | (18) | (10) | (11) | (11) | 3 | (18) | ||||||||||
Balance at end of year at Dec. 31, 2021 | ¥ 3,098,429 | ¥ 174,762 | ¥ 403,119 | ¥ 68,015 | ¥ 3,538,037 | ¥ 3,606,052 | ¥ (151,794) | ¥ (1,158,366) | ¥ 2,873,773 | ¥ 224,656 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends common stock per share | ¥ 85 | ¥ 120 | ¥ 160 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Consolidated net income | ¥ 230,840 | ¥ 95,943 | ¥ 139,347 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
Depreciation and amortization | 221,246 | 227,825 | 237,327 |
Loss on disposal of fixed assets | 7,745 | 4,326 | 5,991 |
Deferred income taxes | (9,826) | (15,542) | (6,523) |
Decrease in trade receivables | 44,678 | 15,120 | 43,504 |
(Increase) decrease in inventories | (61,017) | 16,075 | 19,895 |
Increase (decrease) in trade payables | 52,138 | (4,636) | (35,509) |
Increase (decrease) in accrued income taxes | 24,017 | 43 | (22,279) |
(Decrease) increase in accrued expenses | (8,673) | (16,413) | 9,738 |
Decrease in accrued pension and severance cost | (41,477) | (16,601) | (13,722) |
Other, net (Note 6) | (8,643) | 27,665 | (19,308) |
Net cash provided by operating activities | 451,028 | 333,805 | 358,461 |
Cash flows from investing activities: | |||
Purchases of fixed assets (Note 5) | (177,350) | (164,719) | (215,671) |
Proceeds from sale of fixed assets (Note 5) | 3,796 | 7,815 | 885 |
Purchases of held to maturity securities | (2,216) | ||
Purchases of securities | (2,162) | (592) | (4,907) |
Proceeds from sale and maturity of securities | 1,714 | 558 | 828 |
Acquisitions of businesses, net of cash acquired (Note 7) | (31,751) | (127) | (8,880) |
Other, net | 713 | 1,626 | (823) |
Net cash used in investing activities | (207,256) | (155,439) | (228,568) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt (Note 9) | 175,100 | 2,100 | |
Repayments of long-term debt (Note 9) | (347,029) | (11,095) | (8,678) |
(Decrease) increase in short-term loans related to financial services, net (Note 9) | (2,700) | 5,100 | 5,200 |
Dividends paid | (88,891) | (126,938) | (171,487) |
Repurchases and reissuance of treasury stock | (17) | (50,008) | (50,012) |
Other, net | (3,829) | (2,608) | (7,613) |
Net cash used in financing activities | (267,366) | (183,449) | (232,590) |
Effect of exchange rate changes on cash and cash equivalents | 17,305 | (47) | (5,134) |
Net change in cash and cash equivalents | (6,289) | (5,130) | (107,831) |
Cash and cash equivalents at beginning of year | 407,684 | 412,814 | 520,645 |
Cash and cash equivalents at end of year | 401,395 | 407,684 | 412,814 |
Supplemental disclosure for cash flow information, Cash paid during the year for: | |||
Interest | 599 | 1,028 | 888 |
Income taxes | ¥ 71,573 | ¥ 45,471 | ¥ 77,654 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 its subsidiaries (collectively “Canon”) is one of the world’s leading manufacturers of office multi-function devices (“MFDs”), laser printers, inkjet printers, cameras, medical equipment and lithography equipment. Products of the Printing Business Unit consist mainly of office MFDs, document solutions, laser multifunction printers (“MFPs”), laser printers, inkjet printers, image scanners, calculators, digital continuous feed presses, digital sheet-fed X-ray Canon sells laser printers on an OEM basis to HP Inc.; such sales constituted 11.6%, 11.4% and 13.0% of consolidated net sales for the years ended December 31, 2021, 2020 and 2019, respectively, and are included in the Printing Business Unit. Canon’s manufacturing operations are conducted primarily at 29 plants in Japan and 13 overseas plants which are located in countries and 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. Canon has separated the presentation of allowance for credit losses from the related receivable balances which are included in trade receivables, prepaid expenses and other current assets, and other assets in the accompanying consolidated balance sheets, from 2021. Consolidated balance sheet for the year ended December 31, 2020 has also been reclassified. Canon has also changed the presentation of “Short-term loans related to financial services” separated from “Short-term loans and current portion of long-term debt” in the consolidated balance sheets from 2021. Further, Canon has separated the presentation of “(Decrease) increase in short-term loans related to financial services, net” from “(Decrease) increase in short-term loans, net” and included the presentation of “(Decrease) increase in short-term loans, net” in “Cash flows from financing activities: Other, net” in the consolidated statements of cash flows from 2021. These changes were made to enhance the presentation of the Company’s short-term borrowings for the users of the consolidated financial statements. To conform with the current year change in the presentation, the consolidated balance sheet for the year ended December 31, 2020 and the consolidated statement of cash flows for the years ended December 31, 2020 and 2019 have been reclassified. (c) Principles of Consolidation The consolidated financial statements include the accounts of the Company, its majority owned subsidiaries and those variable interest entities where the Company or its consolidated subsidiaries are the primary beneficiaries. All significant intercompany balances and transactions have been eliminated. (d) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions are reflected in valuation and disclosure of accounts including: revenue recognition, allowance for credit losses, inventories, long-lived assets, leases, goodwill and other intangible assets with indefinite useful lives, environmental liabilities, deferred tax assets, uncertain tax positions, employee retirement and severance benefit obligations and business combinations. Actual results could differ materially from those estimates. In addition, new waves of COVID-19 COVID-19 COVID-19. (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 ¥21,746 million, ¥4,451 million and ¥4,236 million for the years ended December 31, 2021, 2020 and 2019, respectively. (f) Cash Equivalents All highly liquid investments acquired with original maturities of three months or less are considered to be cash equivalents. Certain debt securities with original maturities of less than three months, classified as available-for-sale (g) Investments Investments consist primarily of time deposits with original maturities of more than three months, debt and equity securities and investments in affiliated companies. Canon classifies investments in debt securities as held-to-maturity available-for-sale Available-for-sale available-for-sale Held-to-maturity Available-for-sale available-for-sale available-for-sale Canon measures non-marketable Realized gains and losses are determined by the average cost method and reflected in earnings. Investments in affiliated companies over which Canon has the ability to exercise significant influence, but does not hold a controlling financial interest, are accounted for by the equity method. (h) Allowance for credit losses Allowance for credit losses for trade and finance receivables is maintained for all customers based on ASC 326 “Financial Instruments—Credit Losses”, considering various factors, including aging analysis, macroeconomic conditions and historical experience. An additional reserve for individual accounts is recorded when Canon becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. When all collection options are exhausted including legal recourse, the accounts or portions thereof are deemed to be uncollectable and charged against the allowance. (i) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the average method for domestic inventories and principally by the first-in, first-out (j) Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment, and acquired intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset and the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated sum of 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, net Property, plant and equipment are stated at cost less accumulated depreciation. 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. (l) Leases As for lessor accounting, Canon provides leasing arrangements to its customers primarily for the sale 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 account 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 rates based on the information available at commencement to determine the present values of lease payments. Canon has lease contracts with lease and non-lease components, which are accounted for separately. Canon allocates the consideration in the lease contract to the lease and non-lease components based upon the estimated standalone prices. Costs associated with operating lease assets are recognized on a straight-line basis over the term of the lease. (m) Goodwill and other intangible assets Goodwill and other intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment annually in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. All goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. If the carrying amount assigned to the reporting unit exceeds the fair value of the reporting unit, Canon recognizes an impairment charge in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Intangible assets with finite useful lives consist primarily of software, trademarks, patents and developed technology, license fees and customer relationships, which are amortized using the straight-line method. The estimated useful lives of software are from 3 years to 8 years, trademarks are 15 years, patents and developed technology are from 5 years to 21 years, license fees are 8 years, and customer relationships are from 7 years to 15 years. Certain costs incurred in connection with developing or obtaining internal-use internal-use In addition, Canon capitalizes the cost which was incurred subsequent to the stage of assuring the technological feasibility of the software for marketing purposes either developed or acquired. (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, and are included in other noncurrent liabilities in the consolidated balance sheets. 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 liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Canon records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not realizable. Canon recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the tax positions will be sustained upon examination by the tax authorities. Benefits from tax positions that meet the more-likely-than-not largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income taxes in the consolidated statements of income. (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 through the sale of products of the Printing Business Unit, the Imaging Business Unit, the Medical Business Unit and the Industrial and Others Business Unit, supplies and related services under separate contractual arrangements. Revenue is recognized when, or as, control of promised goods or services transfers to customers in an amount that reflects the consideration to which Canon expects to be entitled in exchange for transferring these goods or services. For further information, please refer to Note 15. (s) Research and Development Costs Research and development costs are expensed as incurred. (t) Advertising Costs Advertising costs are expensed as incurred. Advertising expenses were ¥36,812 million, ¥31,273 million and ¥46,665 million for the years ended December 31, 2021, 2020 and 2019, respectively. (u) Shipping and Handling Costs Shipping and handling costs totaled ¥53,347 million, ¥47,721 million and ¥51,718 million for the years ended December 31, 2021, 2020 and 2019, 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 and other current assets, or other current liabilities in the consolidated balance sheets. Canon uses and designates certain derivatives as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge). Canon formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. Canon also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, Canon discontinues hedge accounting prospectively. Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability in cash flows of the hedged item, and reclassified in the same income statement line item in which the earnings effect of the hedged item is reported. 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 Canon evaluates all recently issued accounting pronouncements applicable to its consolidated financial statements. No new accounting pronouncement issued or effective has had, or is expected to have, a material impact on Canon’s consolidated financial statements. (y) Correction of an Immaterial Error During the year ended December 31, 2020, Canon corrected an error in its previously issued consolidated financial statements related to accounting for the Company and domestic subsidiaries’ compensated absence carryforward in accordance with ASC 710 “Compensation.” In evaluating whether the previously issued consolidated financial statements were materially misstated for the annual periods prior to December 31, 2020, Canon applied the guidance of ASC 250, “Accounting Changes and Error Corrections,” SEC Staff Accounting Bulletin (“SAB”) Topic 1.M “Assessing Materiality” and SAB Topic 1.N “Considering the Effects of Prior Period Misstatements when Quantifying Misstatements in Current Year Financial Statements,” and concluded that the effect of the error on prior period financial statements was immaterial; however, the cumulative effect of correcting the prior period misstatements in the year ended December 31, 2020 would have been material to the December 31, 2020 consolidated financial statements. As a result, Canon previously revised its consolidated financial statements as follows: Consolidated statement of income as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Selling, general and administrative expenses 1,137,110 1,136,863 Operating profit 174,420 174,667 Income before income taxes 195,493 195,740 Income taxes 56,146 56,223 Consolidated net income 139,347 139,517 Less: Net income attributable to noncontrolling interests 14,383 14,412 Net income attributable to Canon Inc. 124,964 125,105 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 116.79 116.93 Diluted 116.77 116.91 Consolidated statement of comprehensive income as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Consolidated net income 139,347 139,517 Less: Comprehensive income attributable to noncontrolling interests 16,353 16,382 Comprehensive income (loss) attributable to Canon Inc. 86,139 86,280 Consolidated statement of cash flows as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Consolidated net income 139,347 139,517 Increase in accrued expenses 9,738 9,491 Deferred income taxes (6,523 ) (6,446 ) The consolidated statement of equity has been revised, accordingly. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 2. Investments Held-to-maturity debt securities included in short-term investments in the accompanying consolidated balance sheet were ¥2,164 million at December 31, 2021. There were no held-to-maturity debt securities as of December 31, 2020. Held-to-maturity debt securities included in short-term investments at December 31, 2021 are as follows: Carrying amount Estimated fair value Difference (Millions of yen) Due within one year 2,164 2,167 3 There were no available-for-sale debt securities included in short-term investments and investments at December 31, 2021 and 2020, respectively. The unrealized and realized gains and losses related to equity securities for the years ended December 31, 2021, 2020 and 2019 are as follows: Years ended December 31 2021 2020 2019 (Millions of yen) Net gains and (losses) recognized during the period on equity securities 8,958 1,959 2,148 Less: Net gains and (losses) recognized during the period on equity securities sold during the period 467 477 (76 ) Unrealized gains and (losses) recognized during the period on equity securities still held at December 31 8,491 1,482 2,224 The carrying amount of non-marketable Time deposits with original maturities of more than three months are ¥1,213 million and ¥71 million at December 31, 2021 and 2020, respectively, and are included in short-term investments in the accompanying consolidated balance sheets. Investments in affiliated companies accounted for by the equity method are as follows: Years ended December 31 2021 Ownership percentage 2021 2020 (Millions of yen, except percentage data) Canon Korea Inc. 50 % 11,627 10,719 Others — 10,398 8,915 — 22,025 19,634 The difference between the carrying amount of investment in each affiliate and Canon’s share of its net assets is immaterial. Canon’s share of the net earnings in affiliated companies accounted for by the equity method, included in other income (deductions), were earnings of ¥1,396 million for the year ended December 31, 2021, and losses of ¥994 million and ¥311 million for the years ended December 31, 2020 and 2019, respectively. |
Trade Receivables
Trade Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Trade Receivables | 3. Trade Receivables Trade receivables are summarized as follows: December 31 2021 2020 (Millions of yen) Notes 28,616 34,922 Accounts 493,816 511,849 Trade receivables 522,432 546,771 Less allowance for credit losses (12,494 ) (11,645 ) 509,938 535,126 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories are summarized as follows: December 31 2021 2020 (Millions of yen) Finished goods 395,381 352,513 Work in process 199,153 160,696 Raw materials 56,034 49,598 650,568 562,807 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 (Millions of yen) Land 276,306 270,308 Buildings 1,728,811 1,687,921 Machinery and equipment 1,849,271 1,806,185 Construction in progress 43,283 37,324 Finance right-of-use 6,533 6,048 Cost 3,904,204 3,807,786 Less accumulated depreciation (2,862,801 ) (2,770,106 ) Property, plant and equipment, net 1,041,403 1,037,680 Depreciation expenses for the years ended December 31, 2021, 2020 and 2019 were ¥156,333 million, ¥162,733 million and ¥170,418 million, respectively. Amounts due for purchases of property, plant and equipment were ¥29,562 million and ¥27,688 million at December 31, 2021 and 2020, 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, 2021 | |
Leases [Abstract] | |
Lessor Accounting | 6. Lessor Accounting Lease income is included in Products and Equipment sales in the accompanying consolidated statements of income. Supplemental income statement information is as follows: Years ended December 31 2021 2020 (Millions of yen) Lease income – sales-type and direct financing leases Revenue at lease commencement 84,895 92,133 Interest income on lease receivables 18,351 18,594 103,246 110,727 Lease income – operating leases 27,122 23,878 Variable lease income 5,277 5,343 135,645 139,948 Finance Receivables and Operating Leases Finance receivables represent financing leases, which consist of sales-type leases and direct financing leases. These receivables typically have terms ranging from 1 year to 8 years. The components of the finance receivables, which are included in prepaid expenses and other current assets, and other assets in the accompanying consolidated balance sheets, are as follows: December 31 2021 2020 (Millions of yen) Total minimum lease payments receivable 366,051 337,265 Unguaranteed residual values 12,192 11,459 Executory costs — — Unearned income (31,619 ) (29,541 ) 346,624 319,183 Less allowance for credit losses (3,791 ) (3,068 ) 342,833 316,115 Less current portion (119,902 ) (108,837 ) 222,931 207,278 Allowance for Credit Losses The activities in the allowance for credit losses are as follows: Years ended December 31 2021 2020 (Millions of yen) Balance at beginning of year 3,068 2,627 Charge-offs (2,157 ) (2,199 ) Provision 2,331 2,351 Translation adjustments and other 549 289 Balance at end of year 3,791 3,068 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 experiences of credit losses. An additional reserve for individual accounts is recorded when Canon becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings. Finance receivables which are past due or individually evaluated for impairment at December 31, 2021 and December 31, 2020 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, 2021 and 2020 was ¥143,160 million and ¥132,763 million, respectively. Accumulated depreciation on equipment under operating leases at December 31, 2021 and 2020 was ¥87,879 million and ¥81,345 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 Financing Operating (Millions of yen) Year ending December 31: 2022 131,113 11,578 2023 99,168 7,168 2024 68,241 4,914 2025 41,600 2,972 2026 18,550 1,471 Thereafter 7,379 1,402 366,051 29,505 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 transfers of finance receivables for the year ended December 31, 2020 and 2019 were ¥19,185 million and ¥11,710 million while there were no significant transfers of finance receivables for the year ended December 31, 2021. The amount that remained uncollected was ¥23,984 million and ¥36,339 million at December 31, 2021 and 2020, respectively. Cash proceeds from the transactions are included in other, net under the cash flow from operating activities in the consolidated statements of cash flows. Canon continues to provide collection and administrative services for the financial institutions. The amount associated with the servicing liability measured at fair value was not significant at December 31, 2021 and 2020. Canon also retains limited recourse obligations which cover credit defaults. The recourse obligations were not significant at December 31, 2021 and 2020. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions On September 28, 2021, Canon acquired 87.0% of the issued shares of Redlen Technologies Inc. (“Redlen”), a Canada-based company, for the cash consideration of ¥31,640 million, making it a wholly owned subsidiary of Canon. Redlen possesses advanced technologies of radiation detection and imaging solutions of Cadmium Zinc Telluride (“CZT”) semiconductor detector modules which play an important role in the development of photon-counting CT systems (“PCCT”). This technology will enable Canon to accelerate the development of competitive PCCT systems, and strengthen its CT systems and the medical systems business. In addition, Canon will provide CZT semiconductor detector modules to medical equipment manufacturers around the world, thus helping to strengthen Canon’s medical component business. In this way, Canon will continue to contribute to the advancement of global diagnostic imaging. The acquisition was accounted for using the acquisition method of accounting. Acquisition-related costs were expensed as incurred and were not material. Prior to the acquisition date, Canon held an investment in Redlen at a value of ¥1,252 million. Using step acquisition accounting, Canon remeasured the acquisition-date carrying value of its previously held equity investment to its fair value of ¥5,223 million using the fair value of Redlen’s issued shares on the acquisition date, which resulted in a gain of approximately ¥3,971 million, recorded in other, net of other income (deductions) in the consolidated statements of income. The consideration for the acquisition was provisionally valued at the acquisition date based on the Share Purchase Agreement, and subsequently, an adjustment was made to the acquisition price within the measurement period after the acquisition date and determined as of December 31, 2021. As a result, the fair value of the previously held equity investment before the acquisition date and the gain on the step acquisition have been adjusted. The final allocation of the purchase price to the assets acquired and the liabilities assumed on the acquisition date was as follows: (Millions of yen) Current assets 4,043 Intangible assets 8,955 Goodwill 28,826 Others 389 Assets acquired 42,213 Liabilities assumed 5,350 Net assets acquired 36,863 The intangible assets acquired are composed by ¥8,929 million of technical assets and ¥26 million of other intangible assets, and is subject to amortization. The useful life of the technical assets and the other intangible assets are 21 years and 5 years, respectively. The weighted average useful life of the total intangible assets is approximately 21 years. Goodwill is composed of the synergy effects of merging Redlen and Canon which is not tax deductible. The items is allocated to the Medical Business Unit when conducting the impairment test of goodwill. Net sales and net income of Redlen generated from the acquisition date which is reflected in the consolidated statement of income for the year ended December 31, 2021 was not material. The operating results with the assumption of including the financial statements of Redlen in Canon’s consolidated financial statements for the year ended December 31, 2020 and the year beginning on January 1, 2021 were not disclosed because the impact was not material. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Intangible assets subject to amortization acquired during the year ended December 31, 2021, including those recorded from businesses acquired as stated in Note 7, totaled ¥36,015 million, which primarily consist of software of ¥25,965 million. The weighted average amortization periods for intangible assets in total acquired during the year ended December 31, 2021 are approximately 9 years. The weighted average amortization period for software acquired during the year ended December 31, 2021 is approximately 5 years. Intangible assets subject to amortization acquired during the year ended December 31, 2020, including those recorded from businesses acquired, totaled ¥31,413 million, which primarily consist of software of ¥29,137 million. The weighted average amortization periods for intangible assets in total acquired during the year ended December 31, 2020 are approximately 6 years. The weighted average amortization period for software acquired during the year ended December 31, 2020 is approximately 5 years. The components of intangible assets subject to amortization at December 31, 2021 and 2020 were as follows: December 31, 2021 December 31, 2020 Gross Accumulated Gross Accumulated (Millions of yen) Software 399,331 300,905 379,504 279,372 Customer relationships 158,513 59,465 155,648 46,613 Patents and developed technology 133,923 70,795 124,315 59,328 Trademarks 45,726 21,350 44,914 17,800 License fees 16,881 10,098 13,651 6,065 Other 18,765 10,521 17,163 9,235 773,139 473,134 735,195 418,413 Aggregate amortization expense for the years ended December 31, 2021, 2020 and 2019 was ¥64,913 million, ¥65,092 million and ¥66,909 million, respectively. Estimated amortization expense for intangible assets currently held for the next five years ending December 31 is ¥55,921 million in 2022, ¥47,476 million in 2023, ¥38,534 million in 2024, ¥31,977 million in 2025, and ¥28,302 million in 2026. Intangible assets not subject to amortization other than goodwill at December 31, 2021 and 2020 were not significant. For management reporting purposes, goodwill is not allocated to the reporting unit. Goodwill has been allocated to its respective reporting unit for impairment testing. The changes in the carrying amount of goodwill by segment for the years ended December 31, 2021 and 2020 were as follows: Year ended December 31, 2021 Printing Imaging Medical Industrial Total (Millions of yen) Goodwill – gross 142,185 289,999 506,513 9,283 947,980 Accumulated impairment losses (32,416 ) — — — (32,416 ) Balance at beginning of year 109,769 289,999 506,513 9,283 915,564 Goodwill acquired during the year — — 28,826 — 28,826 Translation adjustments and other 2,931 3,750 1,844 935 9,460 Goodwill – gross 146,025 293,749 537,183 10,218 987,175 Accumulated impairment losses (33,325 ) — — — (33,325 ) Balance at end of year 112,700 293,749 537,183 10,218 953,850 Year ended December 31, 2020 Printing Imaging Medical Industrial Total (Millions of yen) Goodwill – gross 139,036 272,241 508,907 9,767 929,951 Accumulated impairment losses (31,290 ) — — — (31,290 ) Balance at beginning of year 107,746 272,241 508,907 9,767 898,661 Goodwill acquired during the year — — — — — Translation adjustments and other 2,023 17,758 (2,394 ) (484 ) 16,903 Goodwill – gross 142,185 289,999 506,513 9,283 947,980 Accumulated impairment losses (32,416 ) — — — (32,416 ) Balance at end of year 109,769 289,999 506,513 9,283 915,564 * Based on the realignment of Canon’s internal reporting and management structure, from the beginning of 2021, Canon has changed the name and structure of segments to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. Changes in the carrying amounts of goodwill by segment for the fiscal year ended December 31, 2020 also have been reclassified. |
Short-Term Loans and Long-Term
Short-Term Loans and Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term Loans and Long-Term Debt | 9. Short-Term Loans and Long-Term Debt Short-term loans related to financial services are external loans held by Canon’s lease subsidiaries for the purpose of financing its customers through loans. Short-term loans related to financial services consisting of bank borrowings at December 31, 2021 and 2020 were ¥ million and ¥ million, and other short-term loans consisting of bank borrowings were ¥ Long-term debt consisted of the following: December 31 2021 2020 (Millions of yen) Loan from banks; bearing interest of 0.21% at December 31, 2021 and 0.09% at December 31, 2020 *1 174,000 344,000 Other debt *2 7,040 6,608 181,040 350,608 Less current portion (1,290 ) (345,774 ) 179,750 4,834 *1 Canon prepaid ¥170,000 million of the outstanding loan under the unsecured revolving credit facility contracts on December 28, 2021 before its due date. The remaining balance of ¥174,000 million was refinanced with a new expiration date in December 2023 under the credit facilities. The outstanding loans under the credit facilities are ¥ *2 Other debt consisted of term-loans and finance lease obligations as of December 31, 2021 and 2020. The aggregate annual maturities of long-term debt outstanding at December 31, 2021 were as follows: (Millions of yen) Year ending December 31: 2022 1,290 2023 174,920 2024 609 2025 417 2026 237 Thereafter 3,567 181,040 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, 2021 | |
Payables and Accruals [Abstract] | |
Trade Payables | 10. Trade Payables Trade payables are summarized as follows: December 31 2021 2020 (Millions of yen) Notes 82,243 83,468 Accounts 256,361 220,341 338,604 303,809 |
Employee Retirement and Severan
Employee Retirement and Severance Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Retirement and Severance Benefits | 11. Employee Retirement and Severance Benefits The Company and certain of its subsidiaries have contributory and noncontributory defined benefit pension plans covering substantially all of their employees. Benefits payable under the plans are based on employee earnings and years of service. The Company and certain of its subsidiaries also have defined contribution pension plans covering substantially all of their employees. Canon Medical Systems Corporation (“CMSC”) temporarily participated in Toshiba Corporate Pension Funds (“Toshiba Funds”) after Toshiba Medical Systems Corporation (currently, Canon Medical Systems Corporation) 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 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year 911,121 925,390 477,337 439,624 Service cost 30,194 30,604 3,827 5,303 Interest cost 4,815 4,064 5,965 6,087 Plan participants’ contributions — — 658 860 Actuarial (gain) loss 2,935 (11,432 ) (21,133 ) 43,202 Benefits paid (39,390 ) (36,646 ) (13,471 ) (12,351 ) Plan amendments (41 ) (859 ) (10,617 ) (1,463 ) Curtailments and settlements — — (682 ) (6,004 ) Foreign currency exchange rate changes — — 34,346 2,079 Projected benefit obligations at end of year 909,634 911,121 476,230 477,337 Change in plan assets: Fair value of plan assets at beginning of year 724,039 704,169 321,713 294,829 Actual return on plan assets 52,688 36,060 24,024 23,912 Employer contributions 11,652 13,360 32,130 13,605 Plan participants’ contributions — — 658 860 Benefits paid (31,636 ) (29,550 ) (13,471 ) (12,351 ) Settlements — — 1,743 (805 ) Foreign currency exchange rate changes — — 28,115 1,663 Fair value of plan assets at end of year 756,743 724,039 394,912 321,713 Funded status at end of year (152,891 ) (187,082 ) (81,318 ) (155,624 ) Amounts recognized in the consolidated balance sheets at December 31, 2021 and 2020 are as follows: Japanese plans Foreign plans December 31 December 31 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Other assets 2,911 2,684 13,596 2,236 Accrued expenses (1,208 ) (791 ) (1,041 ) (938 ) Accrued pension and severance cost (154,594 ) (188,975 ) (93,873 ) (156,922 ) (152,891 ) (187,082 ) (81,318 ) (155,624 ) Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2021 and 2020 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Actuarial loss 156,028 192,931 104,647 142,455 Prior service credit (20,371 ) (28,633 ) (10,319 ) (520 ) 135,657 164,298 94,328 141,935 The accumulated benefit obligation for all defined benefit plans was as follows: Japanese plans Foreign plans December 31 December 31 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Accumulated benefit obligation 883,462 879,136 462,306 460,536 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 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations 895,898 897,669 473,860 475,137 Fair value of plan assets 739,581 707,708 391,054 318,079 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations 870,314 874,327 455,164 453,120 Fair value of plan assets 739,581 707,708 386,223 312,748 Components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) Net periodic benefit cost for Canon’s employee retirement and severance defined benefit plans for the years ended December 31, 2021, 2020 and 2019 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2021 2020 2019 2021 2020 2019 (Millions of yen) (Millions of yen) Service cost 30,194 30,604 30,903 3,827 5,303 6,264 Interest cost 4,815 4,064 5,074 5,965 6,087 8,643 Expected return on plan assets (21,618 ) (21,013 ) (19,553 ) (15,221 ) (12,006 ) (11,919 ) Amortization of prior service credit (8,303 ) (8,732 ) (11,877 ) (818 ) (675 ) (133 ) Amortization of actuarial loss 8,768 12,401 15,247 7,341 6,122 4,345 (Gain) loss on curtailments and settlements — — (36 ) — 236 (2,197 ) 13,856 17,324 19,758 1,094 5,067 5,003 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, 2021, 2020 and 2019 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2021 2020 2019 2021 2020 2019 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss (28,135 ) (26,479 ) (19,328 ) (29,936 ) 31,296 28,882 Current year prior service credit (41 ) (859 ) — (10,617 ) (1,463 ) 362 Amortization of actuarial loss (8,768 ) (12,401 ) (15,247 ) (7,341 ) (6,122 ) (4,345 ) Amortization of prior service credit 8,303 8,732 11,877 818 675 133 Curtailments and settlements — — (960 ) (531 ) (966 ) (1,411 ) (28,641 ) (31,007 ) (23,658 ) (47,607 ) 23,420 23,621 Assumptions Weighted-average assumptions used to determine benefit obligations are as follows: Japanese plans Foreign plans December 31 December 31 2021 2020 2021 2020 Discount rate 0.5 % 0.5 % 1.5 % 1.5 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 0.7 % 0.9 % Interest crediting rate for cash balance plans 1.9 % 1.9 % 1.0 % 1.0 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2021 2020 2019 2021 2020 2019 Discount rate 0.5 % 0.5 % 0.6 % 1.5 % 1.6 % 2.4 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 2.6 % 0.9 % 1.0 % 1.9 % Expected long-term rate of return on plan assets 3.0 % 3.0 % 3.0 % 4.4 % 4.8 % 5.2 % Interest crediting rate for cash balance plans 1.9 % 1.9 % 1.9 % 1.0 % 1.0 % 1.0 % 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 products, such as investments in insurance contracts including life insurance company general accounts. Outside Japan, investment policies vary by country, but Canon’s model portfolio for foreign plans consists of three major components: approximately 20% is invested in equity securities, approximately 30% is invested in debt securities, and approximately 50% is invested in other products, such as investments in real estate assets. The target allocation percentages of plan assets set by Canon’s investment policies approximate the actual allocation percentages of plan assets at December 31, 2021 and 2020. The equity securities are selected primarily from stocks that are listed on securities exchanges. Prior to investing, Canon investigates the business condition of the investee companies, and appropriately diversifies 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 investigates the quality of the issue, including rating, interest rate, and repayment dates, and appropriately diversifies the investments. Pooled funds are selected using strategies consistent with the equity and debt securities described above. As for insurance contracts, there are several types of insurance contracts between Canon and the life insurance companies including life insurance company general accounts which guarantee the payments of interest based on expected interest rates and return of capital, and insured pension plans which cover future designated contractual benefit payments to covered participants. With respect to investments in foreign financial products, Canon investigates the stability of the underlying governments and economies, the market characteristics such as settlement systems and the taxation systems. For each such investment, Canon selects the appropriate investment country and currency. The three levels of input used to measure fair value are more fully described in Note 22. The fair values of Canon’s pension plan assets at December 31, 2021 and 2020, by asset category, are as follows: December 31, 2021 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) 95,698 — — 95,698 — — — — Foreign companies 12,746 — — 12,746 11,628 — — 11,628 Pooled funds (b) — 180,286 — 180,286 — 43,026 — 43,026 Debt securities: Government bonds (c) 133,691 — — 133,691 — — — — Municipal bonds — 1,264 — 1,264 — 2,899 — 2,899 Corporate bonds — 19,373 — 19,373 — 7,821 — 7,821 Pooled funds (d) — 145,348 — 145,348 — 138,687 — 138,687 Mortgage backed securities (and other asset backed securities) — 11,449 — 11,449 — 6,826 — 6,826 Insurance contracts — 114,624 — 114,624 — 6,287 39,398 45,685 Other assets — 28,181 366 28,547 — 106,657 532 107,189 Investment measured at net asset value — — — 13,717 — — — 31,151 242,135 500,525 366 756,743 11,628 312,203 39,930 394,912 December 31, 2020 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) 80,201 — — 80,201 — — — — Foreign companies 9,807 — — 9,807 10,267 — — 10,267 Pooled funds (f) — 168,745 — 168,745 37,538 37,538 Debt securities: Government bonds (g) 136,771 — — 136,771 — — — — Municipal bonds — 1,126 — 1,126 — 2,324 — 2,324 Corporate bonds — 15,617 — 15,617 — 6,375 — 6,375 Pooled funds (h) — 140,825 — 140,825 — 108,499 — 108,499 Mortgage backed securities (and other asset backed securities) — 8,308 — 8,308 — 2,696 — 2,696 Life insurance company general accounts — 117,762 — 117,762 — 27,953 — 27,953 Other assets — 28,731 1,356 30,087 — 102,159 — 102,159 Investment measured at net asset value — — — 14,790 — — — 23,902 226,779 481,114 1,356 724,039 10,267 287,544 — 321,713 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥234 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 80% Japanese government bonds and 20% foreign government bonds for Japanese 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 ¥282 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 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (h) These funds invest in approximately 25% Japanese government bonds, 55% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 60% foreign government bonds and 40% 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 values of Level 3 asset, consisting of investments in insured pension plans and hedge funds, were ¥40,296 million and ¥1,356 million at December 31, 2021 and 2020, respectively. Amounts of actual returns on, purchases and sales of these assets during the years ended December 31, 2021 and 2020 were not significant. Contributions Canon expects to contribute ¥15,942 million to its Japanese defined benefit pension plans and ¥18,165 million to its foreign defined benefit pension plans for the year ending December 31, 2022. 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: 2022 44,169 15,228 2023 44,772 15,887 2024 44,699 17,151 2025 45,715 18,145 2026 44,479 19,199 2027 – 2031 228,342 116,447 Multiemployer pension plans The amounts of cost recognized for the multiemployer pension plans primarily in the Netherlands for the years ended December 31, 2021, 2020 and 2019 were ¥4,822 million, ¥4,224 million and ¥4,321 million, respectively. The multiemployer pension plan in which the subsidiaries in the Netherlands participated was 97.6% funded as of December 31, 2020. The terms of the collective bargaining agreements are negotiated on a regular basis between the local labor unions and participating employers. Canon is not liable for other participating employers’ obligations under the terms and conditions of the agreements. Defined contribution plans The amounts of cost recognized for the defined contribution pension plans of the Company and certain of its subsidiaries for the years ended December 31, 2021, 2020 and 2019 were ¥22,660 million, ¥16,334 million and ¥17,414 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Domestic and foreign components of income before income taxes and the current and deferred income tax expense attributable to such income are summarized as follows: Year ended December 31, 2021 Japanese Foreign Total (Millions of yen) Income before income taxes 165,927 136,779 302,706 Income taxes: Current 47,491 34,201 81,692 Deferred 6,883 (16,709 ) (9,826 ) 54,374 17,492 71,866 Year ended December 31, 2020 Japanese Foreign Total (Millions of yen) Income before income taxes 48,186 82,094 130,280 Income taxes: Current 24,063 25,816 49,879 Deferred (6,007 ) (9,535 ) (15,542 ) 18,056 16,281 34,337 Year ended December 31, 2019 Japanese Foreign Total (Millions of yen) Income before income taxes 107,082 88,411 195,493 Income taxes: Current 39,483 23,186 62,669 Deferred (4,276 ) (2,247 ) (6,523 ) 35,207 20,939 56,146 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, 2021, 2020 and 2019. 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 2021 2020 2019 Japanese statutory income tax rate 31.0 % 31.0 % 31.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes 0.7 2.3 1.7 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (3.9 ) (5.8 ) (2.9 ) Tax credit for research and development expenses (3.2 ) (1.7 ) (2.3 ) Change in valuation allowance (3.9 ) 2.4 (1.6 ) Deferred tax liabilities on undistributed earnings of foreign subsidiaries 4.5 2.6 2.4 Tax credit at foreign subsidiaries (0.3 ) (1.3 ) (1.1 ) Effect of enacted changes in tax laws (1.0 ) (1.5 ) (0.2 ) Other (0.2 ) (1.6 ) 1.7 Effective income tax rate 23.7 % 26.4 % 28.7 % Net deferred income tax assets and liabilities are included in the accompanying consolidated balance sheets under the following captions: December 31 2021 2020 (Millions of yen) Other assets 138,507 154,226 Other noncurrent liabilities (43,402 ) (48,247 ) 95,105 105,979 The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below: December 31 2021 2020 (Millions of yen) Deferred tax assets: Inventories 11,263 10,551 Accrued business tax 3,387 1,629 Accrued pension and severance cost 67,752 95,386 Research and development – costs capitalized for tax purposes 5,004 4,989 Property, plant and equipment 35,658 34,923 Operating lease liabilities 17,328 20,163 Accrued expenses 29,331 28,243 Net operating losses carried forward 33,873 29,591 Other 48,621 42,741 252,217 268,216 Less valuation allowance (19,073 ) (30,752 ) Total deferred tax assets 233,144 237,464 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (19,677 ) (9,147 ) Tax deductible reserve (4,007 ) (4,040 ) Financing lease revenue (14,602 ) (15,041 ) Operating lease right-of-use (17,066 ) (19,425 ) Intangible assets (51,173 ) (54,948 ) Other (31,514 ) (28,884 ) Total deferred tax liabilities (138,039 ) (131,485 ) Net deferred tax assets 95,105 105,979 The net changes in the total valuation allowance were a decrease of ¥11,679 million, an increase of ¥3,074 million and a decrease of ¥3,056 million for the years ended December 31, 2021, 2020 and 2019, 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, 2021. At December 31, 2021, Canon had net operating losses which can be carried forward for income tax purposes of ¥175,581 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 1,206 After one year through five years 13,869 After five years through ten years 44,316 After ten years through twenty years 8,223 Indefinite period 107,967 175,581 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 ¥16,162 million for a portion of undistributed earnings of foreign subsidiaries of ¥875,208 million as of December 31, 2021 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 2021 2020 2019 (Millions of yen) Balance at beginning of year 8,572 8,120 8,649 Additions for tax positions of the current year 1,168 — — Additions for tax positions of prior years 216 208 204 Reductions for tax positions of prior years — (49 ) (44 ) Settlements with tax authorities (62 ) — (402 ) Other (81 ) 293 (287 ) Balance at end of year* 9,813 8,572 8,120 * The unrecognized tax benefits were offset by deferred tax assets in the amount of ¥1,695 million, ¥1,412 million and ¥933 million as of December 31, 2021, 2020 and 2019, 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 ¥9,813 million and ¥8,572 million at December 31, 2021 and 2020, 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, 2021, 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, 2021 and 2020, and interest and penalties included in income taxes for the years ended December 31, 2021, 2020 and 2019 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 2021. Canon is also no longer subject to a transfer pricing examination by the tax authority for years before 2021. In other major foreign tax jurisdictions, including the United States and the Netherlands, Canon is no longer subject to income tax examinations by tax authorities for years before 2014 with few exceptions. |
Legal Reserve and Retained Earn
Legal Reserve and Retained Earnings | 12 Months Ended |
Dec. 31, 2021 | |
Text Block [Abstract] | |
Legal Reserve and Retained Earnings | 13. Legal Reserve and Retained Earnings The Corporation Law of Japan provides that an amount equal to 10% of distributions from retained earnings paid by the Company and its Japanese subsidiaries be appropriated as a legal reserve. No further appropriations are required when the total amount of the additional paid-in paid-in Cash dividends and appropriations to the legal reserve charged to retained earnings for the years ended December 31, 2021, 2020 and 2019 represent dividends paid out during those years and the related appropriations to the legal reserve. Retained earnings at December 31, 2021 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 ¥858,455 million at December 31, 2021. Retained earnings at December 31, 2021 included Canon’s equity in undistributed earnings of affiliated companies accounted for by the equity method in the amount of ¥17,858 million. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | 14. Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 are as follows: Foreign Gains and Pension Total (Millions of yen) 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 ) Equity transactions with noncontrolling interests and other (9 ) — — (9 ) Other comprehensive income (loss) before reclassifications (17,355 ) (1,199 ) (7,530 ) (26,084 ) Amounts reclassified from accumulated other comprehensive income (loss) — 2,186 7,560 9,746 Net change during the year (17,364 ) 987 30 (16,347 ) Balance at December 31, 2020 (113,646 ) 100 (211,243 ) (324,789 ) Other comprehensive income (loss) before reclassifications 119,689 (3,330 ) 49,759 166,118 Amounts reclassified from accumulated other comprehensive income (loss) (524 ) 2,336 5,065 6,877 Net change during the year 119,165 (994 ) 54,824 172,995 Balance at December 31, 2021 5,519 (894 ) (156,419 ) (151,794 ) Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 are as follows: Amount reclassified from Year ended Year ended Year ended Affected line items in consolidated statements of income (Millions of yen) Foreign currency translation adjustments (759 ) — — Selling, general and administrative expenses — — (154 ) Other, net 235 — — Income taxes (524 ) — (154 ) Consolidated net income — — — Net income attributable to noncontrolling interests (524 ) — (154 ) Net income attributable to Canon Inc. Gains and losses on derivative instruments 3,285 3,034 661 Net Sales (959 ) (775 ) (2 ) Income taxes 2,326 2,259 659 Consolidated net income 10 (73 ) (9 ) Net income attributable to noncontrolling interests 2,336 2,186 650 Net income attributable to Canon Inc. Pension liability adjustments 7,519 10,082 9,953 Other, net (1,625) (2,484 ) (2,523 ) Income taxes 5,894 7,598 7,430 Consolidated net income (829) (38 ) (376 ) Net income attributable to noncontrolling interests 5,065 7,560 7,054 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling interests 6,877 9,746 7,550 * Amounts in parentheses indicate gains in consolidated statements of income. Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments, including amounts attributable to noncontrolling interests, are as follows: Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2021: Foreign currency translation adjustments Amount arising during the year 122,075 (1,112 ) 120,963 Reclassification adjustments for gains and losses realized in net income (759 ) 235 (524 ) Net change during the year 121,316 (877 ) 120,439 Net gains and losses on derivative instruments: Amount arising during the year (4,596 ) 1,298 (3,298 ) Reclassification adjustments for gains and losses realized in net income 3,285 (959 ) 2,326 Net change during the year (1,311 ) 339 (972 ) Pension liability adjustments: Amount arising during the year 68,729 (18,115) 50,614 Reclassification adjustments for gains and losses realized in net income 7,519 (1,625) 5,894 Net change during the year 76,248 (19,740) 56,508 Other comprehensive income (loss) 196,253 (20,278) 175,975 Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2020: Foreign currency translation adjustments Amount arising during the year (17,583 ) 229 (17,354 ) Reclassification adjustments for gains and losses realized in net income — — — Net change during the year (17,583 ) 229 (17,354 ) Net gains and losses on derivative instruments: Amount arising during the year (1,731 ) 442 (1,289 ) Reclassification adjustments for gains and losses realized in net income 3,034 (775 ) 2,259 Net change during the year 1,303 (333 ) 970 Pension liability adjustments: Amount arising during the year (2,495 ) (3,721 ) (6,216 ) Reclassification adjustments for gains and losses realized in net income 10,082 (2,484 ) 7,598 Net change during the year 7,587 (6,205 ) 1,382 Other comprehensive income (loss) (8,693 ) (6,309 ) (15,002 ) 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 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 ) |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 15. Revenue Revenue from sales of products of the Printing Business Unit, such as office MFDs, laser printers and inkjet printers, and the Imaging Business Unit, such as digital cameras, is primarily recognized upon shipment or delivery, depending upon when the customer obtains controls of these products. Revenue from sales of equipment of the Medical Business Unit and the Industrial and Others Business Unit that are sold with customer acceptance provisions related to their functionality, including certain medical equipment such as CT systems and MRI systems, and lithography equipment such as semiconductor and FPD lithography equipment, is recognized when the equipment is installed at the customer site and the agreed-upon specifications are objectively satisfied and confirmed. Most of Canon’s service revenue is generated from maintenance service in the products of the Printing Business Unit and the Medical Business Unit which is recognized over time. For the service contracts of the Printing Business Unit, 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 products of the Printing Business Unit 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 the Medical Business Unit, 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 the 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 products of the Printing Business Unit are sold. Revenue from 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 is recognized over time with progress towards completion measured using the cost based input method as the basis to recognize revenue and an estimated margin. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses become evident. Changes in job performance, job conditions, estimated margin and final contract settlements may result in revisions to projected costs and revenue and are recognized in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. Factors that may affect future project costs and margins include, production efficiencies, availability and costs of labor and materials. These factors can impact the accuracy of Canon’s estimates and materially impact future reported revenue and cost of sales. 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 the products of the Imaging Business Unit, 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 its 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 23. Printing Imaging Medical Industrial and Others Corporate Consolidated (Millions of yen) 2021: Revenue recognized at a point in time 1,419,043 646,849 329,323 439,914 (105,126 ) 2,730,003 Revenue recognized over time 519,804 6,683 151,039 105,828 — 783,354 Total 1,938,847 653,532 480,362 545,742 (105,126 ) 3,513,357 Printing Imaging Medical Industrial and Others Corporate Consolidated (Millions of yen) 2020: Revenue recognized at a point in time 1,316,556 534,685 287,849 336,235 (83,094 ) 2,392,231 Revenue recognized over time 487,871 6,629 148,225 125,287 — 768,012 Total 1,804,427 541,314 436,074 461,522 (83,094 ) 3,160,243 Printing Imaging Medical Industrial and Others Corporate Consolidated (Millions of yen) 2019: Revenue recognized at a point in time 1,520,393 651,629 290,702 391,272 (93,180 ) 2,760,816 Revenue recognized over time 572,071 10,077 147,823 102,512 — 832,483 Total 2,092,464 661,706 438,525 493,784 (93,180 ) 3,593,299 * Based on the realignment of Canon’s internal reporting and management structure, from the beginning of 2021, Canon has changed the name and structure of segments to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. Changes in the disaggregated revenue by timing and by segment for the fiscal year ended December 31, 2020 and 2019 also have been reclassified. Revenue recognized over time includes primarily revenue from maintenance service in the products of the Printing Business Unit and the Medical Business Unit and sales of certain equipment of the Industrial and Others Unit 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 the products of the Printing Business Unit. Contract assets are reclassified to trade receivables when they are billed under the terms of the contract. The difference between the opening and closing balances of contract assets primarily results from the timing difference of Canon’s performance and billing to customers. Contract assets at December 31, 2021 and 2020 were ¥44,722 million and ¥42,752 million, respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. Canon typically bills to the customer wh e non-current Remaining performance obligations for products and equipment at December 31, 2021 primarily arise from the sales of certain industrial equipment, amounting to ¥150,833 million, 66% of which is expected to be recognized as revenue within one year and remaining 34% is within two years. Disclosure of remaining performance obligations is not required for the majority of services since the related revenue is recognized on an as billed basis applying the right to invoice practical expedient or is generated from the contracts with original expected duration of less than one year. The portion of fixed maintenance service contract for the products of the Printing Business Unit and the Medical Business Unit with original expected duration of more than one year is approximately 13% of total service revenue and the average remaining period for these fixed contracts as of December 31, 2021 is about two years. Taxes collected from customers and remitted to governmental authorities are excluded from revenues in the consolidated statements of income. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 16. Stock-Based Compensation On April 28, 2021, based on the approval of the board of directors, the Company granted stock options to its directors and executive officers to acquire 43,700 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, 2021 was ¥2,227. On May 1, 2020, based on the board of the directors, the Company granted stock options to its directors and executive officers to acquire 88,600 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, 2020 was ¥1,459. On March 25, 2020, based on the board of the directors, the Company granted stock options to its executive officer to acquire 10,300 shares of common stock. The Holder 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, 2020 was ¥1,703. The compensation cost recognized for these stock options for the years ended December 31, 2021 was ¥97 million and 2020 was ¥147 million and 2019 was ¥265 million, 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, 2021 Year ended December 31, 2020 *1 *2 Expected term of option (in years) 5.0 6.0 6.0 Expected volatility 24.83 % 20.32 % 20.92 % Dividend yield 3.04 % 6.25 % 6.97 % Risk-free interest rate (0.10 %) (0.12 %) (0.17 %) *1 Granted on March 25, 2020 *2 Granted on May 1, 2020 A summary of option activity the Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2019 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 Granted 98,900 1 Exercised (37,100 ) 1 Outstanding at December 31, 2020 247,600 1 28.4 324 Granted 43,700 1 Exercised (4,800 ) 1 Outstanding at December 31, 2021 286,500 1 27.8 802 Exercisable at December 31, 2021 286,500 1 27.8 802 The total fair values of shares vested during the years ended December 31, 2021 and 2020 were ¥97 million and ¥147 million, respectively, and 2019 was ¥265 million. Cash received from the exercise of stock options for the years ended December 31, 2021, 2020 and 2019 were not significant. |
Net Income Attributable to Cano
Net Income Attributable to Canon Inc. Shareholders per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Canon Inc. Shareholders per Share | 17. Net Income Attributable to Canon Inc. Shareholders per Share A reconciliation of the numerators and denominators of basic and diluted net income attributable to Canon Inc. shareholders per share computations is as follows: Years ended December 31 2021 2020 2019 (Millions of yen) Basic net income attributable to Canon Inc. 214,718 83,318 124,964 Diluted net income attributable to Canon Inc. 214,714 83,315 124,962 (Number of shares) Average common shares outstanding 1,045,632,588 1,049,802,197 1,069,956,767 Effect of dilutive securities: Stock options 277,066 229,691 158,173 Diluted common shares outstanding 1,045,909,654 1,050,031,888 1,070,114,940 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 205.35 79.37 116.79 Diluted 205.29 79.35 116.77 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 18. Derivatives and Hedging Activities Risk management policy Canon operates internationally, exposing it to the risk of changes in foreign currency exchange rates. Derivative financial instruments are comprised principally of foreign exchange contracts utilized by the Company and certain of its subsidiaries to reduce the risk. Canon assesses foreign currency exchange rate risk by continually monitoring changes in the exposures and by evaluating hedging opportunities. Canon does not hold or issue derivative financial instruments for speculative 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, 2021 are expected to be recognized in net sales over the next twelve months. Changes in the fair value of a foreign exchange contract for the period between the date that the forecasted intercompany sales occur and its maturity date are recognized in earnings. 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, 2021 and 2020 are set forth below: December 31 2021 2020 (Millions of yen) To sell foreign currencies 169,392 137,721 To buy foreign currencies 27,453 27,220 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, 2021 and 2020. Derivatives designated as hedging instruments Fair value December 31 Balance sheet location 2021 2020 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 42 426 Liabilities: Foreign exchange contracts Other current liabilities 777 416 Derivatives not designated as hedging instruments Fair value December 31 Balance sheet location 2021 2020 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 23 107 Liabilities: Foreign exchange contracts Other current liabilities 1,342 809 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, 2021, 2020 and 2019. Derivatives in cash flow hedging relationships Year ended December 31 Gain (loss) Gain (loss) reclassified from Amount Location Amount (Millions of yen) 2021: Foreign exchange contracts (4,596 ) Net sales (3,285 ) 2020: Foreign exchange contracts (1,731 ) Net sales (3,034 ) 2019: Foreign exchange contracts (2,180 ) Net sales (661 ) Derivatives not designated as hedging instruments Gain (loss) recognized in income on derivative Years ended December 31 Location 2021 2020 2019 (Millions of yen) Foreign exchange contracts Other, net (6,099 ) 104 805 |
Lessee Accounting
Lessee Accounting | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee Accounting | 19. Lessee Accounting Lease costs are included in cost of sales or selling general and administrative expense in accompanying consolidated statements of income. Supplemental income statement information is as follows: Year ended December 31, 2021 Year ended December 31, 2020 (Millions of yen) Operating lease cost 39,699 40,053 Short-term lease cost 13,961 14,245 Other lease cost 71 120 53,731 54,418 Operating lease cash flow Supplemental cash flow information is as follows. Year ended December 31, 2021 Year ended December 31, 2020 (Millions of yen) Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases 39,879 36,733 Noncash activity – Rights of use assets obtained in exchange for lease liabilities Operating leases 21,588 30,700 Maturity Analysis The following is a schedule by year of the future minimum lease payments under operating leases at December 31, 2021. (Millions of yen) Year ending December 31: 2022 32,941 2023 22,512 2024 15,226 2025 10,816 2026 7,832 Thereafter 11,192 Total future minimum lease payments 100,519 Less Imputed Interest (4,189 ) 96,330 Remaining lease term and discount rate The following is remaining lease term and discount rate under operating leases at December 31, 2021 and 2020. December 31, 2021 December 31, 2020 Weighted-average remaining lease term 54 months 56 months Weighted-average discount rate 2.1% 2.1% |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 20. Commitments and Contingent Liabilities Commitments At December 31, 2021, commitments outstanding for the purchase of property, plant and equipment approximated ¥76,229 million, and commitments outstanding for the purchase of parts and raw materials approximated ¥249,909 million. Guarantees Canon occupies sales offices and other facilities under lease arrangements accounted for as operating leases. Deposits mainly for restoration made under such arrangements aggregated ¥10,812 million and ¥10,962 million at December 31, 2021 and 2020, respectively, and are included in noncurrent receivables in the accompanying consolidated balance sheets. 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 facilitate financing. Canon would have to perform under a guarantee if the borrower defaults on a payment within the contract terms. The contract terms are 1 year to 15 years in case of employees with housing loans, and 1 year to 5 years in case of affiliates and other companies with lease obligations and bank loans. The maximum amount of undiscounted payments Canon would have had to make in the event of default is ¥2,078 million at December 31, 2021. The carrying amounts of the liabilities recognized for Canon’s obligations as a guarantor under those guarantees at December 31, 2021 were not significant. 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, 2021 and 2020 are summarized as follows: Years ended December 31 2021 2020 (Millions of yen) Balance at beginning of the year 14,300 15,846 Additions 15,687 11,355 Utilization (11,928 ) (10,657 ) Other (1,110 ) (2,244 ) Balance at end of the year 16,949 14,300 Legal proceedings Canon is involved in various claims and legal actions arising in the ordinary course of business. Canon has recorded provisions for liabilities when it is probable that liabilities have been incurred and the amount of loss can be reasonably estimated. Canon reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of the negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Based on its experience, although litigation is inherently unpredictable, Canon believes that any damage amounts claimed in outstanding matters are not a meaningful indicator of Canon’s potential liability. In the opinion of management, any reasonably possible range of losses from outstanding matters would not have a material adverse effect on Canon’s consolidated financial position, results of operations, and cash flows. |
Disclosures about the Fair Valu
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk | 21. 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, 2021 and 2020 are set forth below. The following summary excludes cash and cash equivalents, trade 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 22, and Note 18, respectively. December 31 2021 2020 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments (177,410 ) (177,343 ) (346,317 ) (346,275 ) The following methods and assumptions are used to estimate the fair value in the above table. Long-term debt Canon’s long-term debt instruments are classified as Level 2 instruments and valued based on the present value of future cash flows associated with each instrument discounted using current market borrowing rates for similar debt instruments of comparable maturity. The levels are more fully described in Note 22. 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 No single customer accounted for more than 10 percent of consolidated trade receivables as of December 31, 2021 or 2020. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 22. 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, 2021 and 2020. December 31, 2021 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 500 — 500 Investments: Fund trusts and others 281 328 — 609 Equity securities 28,640 — — 28,640 Prepaid expenses and other current assets: Derivatives — 65 — 65 Total assets 28,921 893 — 29,814 Liabilities: Other current liabilities: Derivatives — 2,119 — 2,119 Total liabilities — 2,119 — 2,119 December 31, 2020 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 500 — 500 Investments: Fund trusts and others 284 248 — 532 Equity securities 18,683 — — 18,683 Prepaid expenses and other current assets: Derivatives — 533 — 533 Total assets 18,967 1,281 — 20,248 Liabilities: Other current liabilities: Derivatives — 1,225 — 1,225 Total liabilities — 1,225 — 1,225 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. Assets and liabilities measured at fair value on a recurring basis (continued) 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, 2021 and 2020. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 23. Segment Information Canon reports in four segments: the Printing Business Unit, the Imaging Business Unit, the Medical Business Unit, and the Industrial and Others Business Unit, which are based on the organizational structure and information reviewed by Canon’s management to evaluate results and allocate resources. Based on the realignment of Canon’s internal reporting and management structure, from 2021, Canon has changed the name and structure of segments from Office Business Unit, Imaging System Business Unit, Medical System Business Unit and Industry and Others Business Unit to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. Major changes include moving Inkjet printers from Imaging System Business Unit to the Printing Business Unit, the same business unit as Office multifunction devices (MFDs) and Laser multifunction printers (MFPs), and moving Network cameras from Industry and Others Business Unit to the Imaging Business Unit, the same business unit as Interchangeable-lens digital cameras. Prior period amounts also have been reclassified. The primary products included in each segment are as follows: Printing Business Unit: Office multifunction devices (MFDs) / Document solutions/ Laser multifunction printers (MFPs) / Laser printers /Inkjet printers / Image scanners / Calculators / Digital continuous feed presses / Digital sheet-fed Imaging Business Unit: Interchangeable-lens digital cameras / Interchangeable lenses / Digital compact cameras /Compact photo printers / Network cameras / Video management software / Video content analytics software / Digital camcorders / Digital cinema cameras / Broadcast equipment /Multimedia projectors Medical Business Unit: Computed tomography (CT) systems / Diagnostic ultrasound systems / Diagnostic X-ray Industrial and Others Business Unit: Semiconductor lithography equipment / FPD (Flat panel display) lithography equipment /OLED display manufacturing equipment / Vacuum thin-film deposition equipment / Die bonders / Handy terminals / Document scanners The accounting policies of the segments are substantially the same as those described in the significant accounting policies in Note 1. Canon evaluate results and allocate resources for each segment based on income before income taxes. Information about operating results and assets for each segment as of and for the years ended December 31, 2021, 2020 and 2019 is as follows: Printing Imaging Medical Industrial and Corporate and Consolidated (Millions of yen) 2021: Net sales: External customers 1,934,012 651,494 480,029 449,915 (2,093 ) 3,513,357 Intersegment 4,835 2,038 333 95,827 (103,033 ) — Total 1,938,847 653,532 480,362 545,742 (105,126 ) 3,513,357 Operating cost and expenses 1,713,154 574,814 450,942 501,434 (8,905 ) 3,231,439 Operating profit 225,693 78,718 29,420 44,308 (96,221 ) 281,918 Other income (deductions) 7,259 (256 ) 4,876 342 8,567 20,788 Income before income taxes 232,952 78,462 34,296 44,650 (87,654 ) 302,706 Total assets 1,009,922 236,143 311,247 345,883 2,847,693 4,750,888 Depreciation and amortization 69,549 21,840 12,435 27,677 89,745 221,246 Capital expenditures 63,609 12,069 11,888 25,759 65,675 179,000 2020: Net sales: External customers 1,800,898 539,560 435,368 385,177 (760 ) 3,160,243 Intersegment 3,529 1,754 706 76,345 (82,334 ) — Total 1,804,427 541,314 436,074 461,522 (83,094 ) 3,160,243 Operating cost and expenses 1,657,319 535,584 410,830 441,006 4,957 3,049,696 Operating profit 147,108 5,730 25,244 20,516 (88,051 ) 110,547 Other income (deductions) 5,076 (778 ) 300 1,171 13,964 19,733 Income before income taxes 152,184 4,952 25,544 21,687 (74,087 ) 130,280 Total assets 913,931 239,605 286,749 348,614 2,836,715 4,625,614 Depreciation and amortization 69,725 22,201 11,781 28,720 95,398 227,825 Capital expenditures 56,613 12,540 7,244 21,276 64,054 161,727 2019: Net sales: External customers 2,089,024 660,105 437,456 405,114 1,600 3,593,299 Intersegment 3,440 1,601 1,069 88,670 (94,780 ) — Total 2,092,464 661,706 438,525 493,784 (93,180 ) 3,593,299 Operating cost and expenses* 1,908,436 634,773 411,781 465,197 (1,308 ) 3,418,879 Operating profit 184,028 26,933 26,744 28,587 (91,872 ) 174,420 Other income (deductions) 6,066 905 539 — 13,563 21,073 Income before income taxes 190,094 27,838 27,283 28,587 (78,309 ) 195,493 Total assets 1,002,778 288,545 273,525 310,110 2,896,960 4,771,918 Depreciation and amortization 74,958 24,561 11,760 29,086 96,962 237,327 Capital expenditures 61,789 18,929 7,074 28,436 95,000 211,228 * During 2019, the Company implemented a restructuring plan centered in Europe with the goal of reorganizing sales structure and improving profitability mainly in the Printing Business Unit. The employee severance charges in the Printing Business Unit under the plan for the year ended December 31, 2019 were ¥15,656 million and most of the charges are included in selling, general and administrative expenses in the consolidated statements of income. The restructuring charges for the years ended December 31, 2021 and 2020 were not significant. 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 Toshiba Medical Systems Corporation (currently, Canon Medical Systems Corporation) 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 and service to external customers for each segment for the years ended December 31, 2021, 2020 and 2019 is as follows: Years ended December 31 2021 2020 2019 (Millions of yen) Printing Office multifunction devices 477,000 455,357 573,297 Office others 279,366 267,123 292,378 Office 756,366 722,480 865,675 Laser printers 560,159 502,157 624,597 Inkjet printers and Others 328,932 326,041 296,622 Prosumer 889,091 828,198 921,219 Production 288,555 250,220 302,130 Total 1,934,012 1,800,898 2,089,024 Imaging Cameras 432,885 347,240 466,306 Network cameras and Others 218,609 192,320 193,799 Total 651,494 539,560 660,105 Medical Diagnostic equipment 480,029 435,368 437,456 Industrial and Others Lithography equipment 213,699 142,516 157,160 Industrial equipment 112,274 126,762 107,281 Others 123,942 115,899 140,673 Total 449,915 385,177 405,114 Corporate (2,093 ) (760 ) 1,600 Consolidated 3,513,357 3,160,243 3,593,299 Based on the realignment of Canon’s internal reporting and management structure, from the beginning of 2021, Canon has changed products category. Production includes Digital continuous feed presses, Digital sheet-fed Information by major geographic area as of and for the years ended December 31, 2021, 2020 and 2019 is as follows: 2021 2020 2019 (Millions of yen) Net sales: Japan 830,378 806,305 872,534 Americas 968,839 852,451 1,029,078 Europe 894,898 795,616 882,480 Asia and Oceania 819,242 705,871 809,207 Total 3,513,357 3,160,243 3,593,299 Long-lived assets: Japan 986,638 1,011,109 1,053,074 Americas 152,137 133,648 148,669 Europe 158,297 175,516 191,050 Asia and Oceania 141,915 143,265 159,217 Total 1,438,987 1,463,538 1,552,010 Net sales are attributed to areas based on the location where the products are shipped and the services are 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 ¥907,909 million, ¥801,376 million and ¥958,442 million for the years ended December 31, 2021, 2020 and 2019, respectively. Long-lived right-of-use |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | 24. Subsequent Event On January 5, 2022, Canon borrowed ¥70,000 million under its existing overdraft facilities with Mizuho Bank, Ltd. and MUFG Bank, Ltd. for required operating funds. Additionally, on March 16, 2022, Canon borrowed ¥30,000 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. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts Balance at Addition- Deduction Translation and other Balance (Millions of yen) Year ended December 31, 2021: Allowance for credit losses Trade receivables 11,645 1,857 (1,540 ) 532 12,494 Finance receivables 3,068 2,331 (2,157 ) 549 3,791 Year ended December 31, 2020: Allowance for credit losses Trade receivables 10,359 3,419 (1,983 ) (150 ) 11,645 Finance receivables 2,627 2,351 (2,199 ) 289 3,068 Year ended December 31, 2019: Allowance for credit losses Trade receivables 11,477 1,840 (2,189 ) (769 ) 10,359 Finance receivables 2,675 1,495 (1,653 ) 110 2,627 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | (a) Description of Business Canon Inc. (the “Company”) and its subsidiaries (collectively “Canon”) is one of the world’s leading manufacturers of office multi-function devices (“MFDs”), laser printers, inkjet printers, cameras, medical equipment and lithography equipment. Products of the Printing Business Unit consist mainly of office MFDs, document solutions, laser multifunction printers (“MFPs”), laser printers, inkjet printers, image scanners, calculators, digital continuous feed presses, digital sheet-fed X-ray Canon sells laser printers on an OEM basis to HP Inc.; such sales constituted 11.6%, 11.4% and 13.0% of consolidated net sales for the years ended December 31, 2021, 2020 and 2019, respectively, and are included in the Printing Business Unit. Canon’s manufacturing operations are conducted primarily at 29 plants in Japan and 13 overseas plants which are located in countries and regions such as the United States, Germany, France, the Netherlands, Taiwan, China, Malaysia, Thailand, Vietnam and Philippines. |
Basis of Presentation | (b) Basis of Presentation The Company and its domestic subsidiaries maintain their books of account in conformity with financial accounting standards of Japan. Foreign subsidiaries maintain their books of account in conformity with financial accounting standards of the countries of their domicile. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform with U.S. generally accepted accounting principles (“U.S. GAAP”). These adjustments were not recorded in the statutory books of account. Canon has separated the presentation of allowance for credit losses from the related receivable balances which are included in trade receivables, prepaid expenses and other current assets, and other assets in the accompanying consolidated balance sheets, from 2021. Consolidated balance sheet for the year ended December 31, 2020 has also been reclassified. Canon has also changed the presentation of “Short-term loans related to financial services” separated from “Short-term loans and current portion of long-term debt” in the consolidated balance sheets from 2021. Further, Canon has separated the presentation of “(Decrease) increase in short-term loans related to financial services, net” from “(Decrease) increase in short-term loans, net” and included the presentation of “(Decrease) increase in short-term loans, net” in “Cash flows from financing activities: Other, net” in the consolidated statements of cash flows from 2021. These changes were made to enhance the presentation of the Company’s short-term borrowings for the users of the consolidated financial statements. To conform with the current year change in the presentation, the consolidated balance sheet for the year ended December 31, 2020 and the consolidated statement of cash flows for the years ended December 31, 2020 and 2019 have been reclassified. |
Principles of Consolidation | (c) Principles of Consolidation The consolidated financial statements include the accounts of the Company, its majority owned subsidiaries and those variable interest entities where the Company or its consolidated subsidiaries are the primary beneficiaries. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | (d) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions are reflected in valuation and disclosure of accounts including: revenue recognition, allowance for credit losses, inventories, long-lived assets, leases, goodwill and other intangible assets with indefinite useful lives, environmental liabilities, deferred tax assets, uncertain tax positions, employee retirement and severance benefit obligations and business combinations. Actual results could differ materially from those estimates. In addition, new waves of COVID-19 COVID-19 COVID-19. |
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 ¥21,746 million, ¥4,451 million and ¥4,236 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Cash Equivalents | (f) Cash Equivalents All highly liquid investments acquired with original maturities of three months or less are considered to be cash equivalents. Certain debt securities with original maturities of less than three months, classified as available-for-sale |
Investments | (g) Investments Investments consist primarily of time deposits with original maturities of more than three months, debt and equity securities and investments in affiliated companies. Canon classifies investments in debt securities as held-to-maturity available-for-sale Available-for-sale available-for-sale Held-to-maturity Available-for-sale available-for-sale available-for-sale Canon measures non-marketable Realized gains and losses are determined by the average cost method and reflected in earnings. Investments in affiliated companies over which Canon has the ability to exercise significant influence, but does not hold a controlling financial interest, are accounted for by the equity method. |
Allowance for credit losses | (h) Allowance for credit losses Allowance for credit losses for trade and finance receivables is maintained for all customers based on ASC 326 “Financial Instruments—Credit Losses”, considering various factors, including aging analysis, macroeconomic conditions and historical experience. An additional reserve for individual accounts is recorded when Canon becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. When all collection options are exhausted including legal recourse, the accounts or portions thereof are deemed to be uncollectable and charged against the allowance. |
Inventories | (i) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the average method for domestic inventories and principally by the first-in, first-out |
Impairment of Long-Lived Assets | (j) Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment, and acquired intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset and the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated sum of 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, net | (k) Property, Plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. 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. |
Leases | (l) Leases As for lessor accounting, Canon provides leasing arrangements to its customers primarily for the sale 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 account 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 rates based on the information available at commencement to determine the present values of lease payments. Canon has lease contracts with lease and non-lease components, which are accounted for separately. Canon allocates the consideration in the lease contract to the lease and non-lease components based upon the estimated standalone prices. Costs associated with operating lease assets are recognized on a straight-line basis over the term of the lease. |
Goodwill and Other Intangible Assets | (m) Goodwill and other intangible assets Goodwill and other intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment annually in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. All goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. If the carrying amount assigned to the reporting unit exceeds the fair value of the reporting unit, Canon recognizes an impairment charge in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Intangible assets with finite useful lives consist primarily of software, trademarks, patents and developed technology, license fees and customer relationships, which are amortized using the straight-line method. The estimated useful lives of software are from 3 years to 8 years, trademarks are 15 years, patents and developed technology are from 5 years to 21 years, license fees are 8 years, and customer relationships are from 7 years to 15 years. Certain costs incurred in connection with developing or obtaining internal-use internal-use In addition, Canon capitalizes the cost which was incurred subsequent to the stage of assuring the technological feasibility of the software for marketing purposes either developed or acquired. |
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, and are included in other noncurrent liabilities in the consolidated balance sheets. 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 liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Canon records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not realizable. Canon recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the tax positions will be sustained upon examination by the tax authorities. Benefits from tax positions that meet the more-likely-than-not largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income taxes in the consolidated statements of income. |
Stock-Based Compensation | (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 through the sale of products of the Printing Business Unit, the Imaging Business Unit, the Medical Business Unit and the Industrial and Others Business Unit, supplies and related services under separate contractual arrangements. Revenue is recognized when, or as, control of promised goods or services transfers to customers in an amount that reflects the consideration to which Canon expects to be entitled in exchange for transferring these goods or services. For further information, please refer to Note 15. |
Research and Development Costs | (s) Research and Development Costs Research and development costs are expensed as incurred. |
Advertising Costs | (t) Advertising Costs Advertising costs are expensed as incurred. Advertising expenses were ¥36,812 million, ¥31,273 million and ¥46,665 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Shipping and Handling Costs | (u) Shipping and Handling Costs Shipping and handling costs totaled ¥53,347 million, ¥47,721 million and ¥51,718 million for the years ended December 31, 2021, 2020 and 2019, 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 and other current assets, or other current liabilities in the consolidated balance sheets. Canon uses and designates certain derivatives as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge). Canon formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. Canon also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, Canon discontinues hedge accounting prospectively. Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability in cash flows of the hedged item, and reclassified in the same income statement line item in which the earnings effect of the hedged item is reported. 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 Canon evaluates all recently issued accounting pronouncements applicable to its consolidated financial statements. No new accounting pronouncement issued or effective has had, or is expected to have, a material impact on Canon’s consolidated financial statements. |
Correction of an Immaterial Error | (y) Correction of an Immaterial Error During the year ended December 31, 2020, Canon corrected an error in its previously issued consolidated financial statements related to accounting for the Company and domestic subsidiaries’ compensated absence carryforward in accordance with ASC 710 “Compensation.” In evaluating whether the previously issued consolidated financial statements were materially misstated for the annual periods prior to December 31, 2020, Canon applied the guidance of ASC 250, “Accounting Changes and Error Corrections,” SEC Staff Accounting Bulletin (“SAB”) Topic 1.M “Assessing Materiality” and SAB Topic 1.N “Considering the Effects of Prior Period Misstatements when Quantifying Misstatements in Current Year Financial Statements,” and concluded that the effect of the error on prior period financial statements was immaterial; however, the cumulative effect of correcting the prior period misstatements in the year ended December 31, 2020 would have been material to the December 31, 2020 consolidated financial statements. As a result, Canon previously revised its consolidated financial statements as follows: Consolidated statement of income as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Selling, general and administrative expenses 1,137,110 1,136,863 Operating profit 174,420 174,667 Income before income taxes 195,493 195,740 Income taxes 56,146 56,223 Consolidated net income 139,347 139,517 Less: Net income attributable to noncontrolling interests 14,383 14,412 Net income attributable to Canon Inc. 124,964 125,105 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 116.79 116.93 Diluted 116.77 116.91 Consolidated statement of comprehensive income as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Consolidated net income 139,347 139,517 Less: Comprehensive income attributable to noncontrolling interests 16,353 16,382 Comprehensive income (loss) attributable to Canon Inc. 86,139 86,280 Consolidated statement of cash flows as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Consolidated net income 139,347 139,517 Increase in accrued expenses 9,738 9,491 Deferred income taxes (6,523 ) (6,446 ) The consolidated statement of equity has been revised, accordingly. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Consolidated Statement of Income | Consolidated statement of income as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Selling, general and administrative expenses 1,137,110 1,136,863 Operating profit 174,420 174,667 Income before income taxes 195,493 195,740 Income taxes 56,146 56,223 Consolidated net income 139,347 139,517 Less: Net income attributable to noncontrolling interests 14,383 14,412 Net income attributable to Canon Inc. 124,964 125,105 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 116.79 116.93 Diluted 116.77 116.91 |
Schedule of Consolidated Statement of Comprehensive Income | Consolidated statement of comprehensive income as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Consolidated net income 139,347 139,517 Less: Comprehensive income attributable to noncontrolling interests 16,353 16,382 Comprehensive income (loss) attributable to Canon Inc. 86,139 86,280 |
Schedule of Consolidated Statement of Cash Flows | Consolidated statement of cash flows as revised in 2020 Year ended December 31, 2019 As revised As previously (Millions of yen) Consolidated net income 139,347 139,517 Increase in accrued expenses 9,738 9,491 Deferred income taxes (6,523 ) (6,446 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Held-to-maturity debt securities included in short-term investments | Held-to-maturity debt securities included in short-term investments at December 31, 2021 are as follows: Carrying amount Estimated fair value Difference (Millions of yen) Due within one year 2,164 2,167 3 |
Schedule of unrealized and Realized Gains and Losses Equity Securities | The unrealized and realized gains and losses related to equity securities for the years ended December 31, 2021, 2020 and 2019 are as follows: Years ended December 31 2021 2020 2019 (Millions of yen) Net gains and (losses) recognized during the period on equity securities 8,958 1,959 2,148 Less: Net gains and (losses) recognized during the period on equity securities sold during the period 467 477 (76 ) Unrealized gains and (losses) recognized during the period on equity securities still held at December 31 8,491 1,482 2,224 |
Schedule of Investments in Affiliated Companies | Investments in affiliated companies accounted for by the equity method are as follows: Years ended December 31 2021 Ownership percentage 2021 2020 (Millions of yen, except percentage data) Canon Korea Inc. 50 % 11,627 10,719 Others — 10,398 8,915 — 22,025 19,634 |
Trade Receivables (Tables)
Trade Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Trade Receivables | Trade receivables are summarized as follows: December 31 2021 2020 (Millions of yen) Notes 28,616 34,922 Accounts 493,816 511,849 Trade receivables 522,432 546,771 Less allowance for credit losses (12,494 ) (11,645 ) 509,938 535,126 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: December 31 2021 2020 (Millions of yen) Finished goods 395,381 352,513 Work in process 199,153 160,696 Raw materials 56,034 49,598 650,568 562,807 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 (Millions of yen) Land 276,306 270,308 Buildings 1,728,811 1,687,921 Machinery and equipment 1,849,271 1,806,185 Construction in progress 43,283 37,324 Finance right-of-use 6,533 6,048 Cost 3,904,204 3,807,786 Less accumulated depreciation (2,862,801 ) (2,770,106 ) Property, plant and equipment, net 1,041,403 1,037,680 |
Lessor Accounting (Tables)
Lessor Accounting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of lease income | Years ended December 31 2021 2020 (Millions of yen) Lease income – sales-type and direct financing leases Revenue at lease commencement 84,895 92,133 Interest income on lease receivables 18,351 18,594 103,246 110,727 Lease income – operating leases 27,122 23,878 Variable lease income 5,277 5,343 135,645 139,948 |
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 2021 2020 (Millions of yen) Total minimum lease payments receivable 366,051 337,265 Unguaranteed residual values 12,192 11,459 Executory costs — — Unearned income (31,619 ) (29,541 ) 346,624 319,183 Less allowance for credit losses (3,791 ) (3,068 ) 342,833 316,115 Less current portion (119,902 ) (108,837 ) 222,931 207,278 |
Activity in Allowance for Credit Losses | The activities in the allowance for credit losses are as follows: Years ended December 31 2021 2020 (Millions of yen) Balance at beginning of year 3,068 2,627 Charge-offs (2,157 ) (2,199 ) Provision 2,331 2,351 Translation adjustments and other 549 289 Balance at end of year 3,791 3,068 |
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 Financing Operating (Millions of yen) Year ending December 31: 2022 131,113 11,578 2023 99,168 7,168 2024 68,241 4,914 2025 41,600 2,972 2026 18,550 1,471 Thereafter 7,379 1,402 366,051 29,505 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The final allocation of the purchase price to the assets acquired and the liabilities assumed on the acquisition date was as follows: (Millions of yen) Current assets 4,043 Intangible assets 8,955 Goodwill 28,826 Others 389 Assets acquired 42,213 Liabilities assumed 5,350 Net assets acquired 36,863 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets Subject to Amortization | The components of intangible assets subject to amortization at December 31, 2021 and 2020 were as follows: December 31, 2021 December 31, 2020 Gross Accumulated Gross Accumulated (Millions of yen) Software 399,331 300,905 379,504 279,372 Customer relationships 158,513 59,465 155,648 46,613 Patents and developed technology 133,923 70,795 124,315 59,328 Trademarks 45,726 21,350 44,914 17,800 License fees 16,881 10,098 13,651 6,065 Other 18,765 10,521 17,163 9,235 773,139 473,134 735,195 418,413 |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment for the years ended December 31, 2021 and 2020 were as follows: Year ended December 31, 2021 Printing Imaging Medical Industrial Total (Millions of yen) Goodwill – gross 142,185 289,999 506,513 9,283 947,980 Accumulated impairment losses (32,416 ) — — — (32,416 ) Balance at beginning of year 109,769 289,999 506,513 9,283 915,564 Goodwill acquired during the year — — 28,826 — 28,826 Translation adjustments and other 2,931 3,750 1,844 935 9,460 Goodwill – gross 146,025 293,749 537,183 10,218 987,175 Accumulated impairment losses (33,325 ) — — — (33,325 ) Balance at end of year 112,700 293,749 537,183 10,218 953,850 Year ended December 31, 2020 Printing Imaging Medical Industrial Total (Millions of yen) Goodwill – gross 139,036 272,241 508,907 9,767 929,951 Accumulated impairment losses (31,290 ) — — — (31,290 ) Balance at beginning of year 107,746 272,241 508,907 9,767 898,661 Goodwill acquired during the year — — — — — Translation adjustments and other 2,023 17,758 (2,394 ) (484 ) 16,903 Goodwill – gross 142,185 289,999 506,513 9,283 947,980 Accumulated impairment losses (32,416 ) — — — (32,416 ) Balance at end of year 109,769 289,999 506,513 9,283 915,564 * Based on the realignment of Canon’s internal reporting and management structure, from the beginning of 2021, Canon has changed the name and structure of segments to Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. Changes in the carrying amounts of goodwill by segment for the fiscal year ended December 31, 2020 also have been reclassified. |
Short-Term Loans and Long-Ter_2
Short-Term Loans and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: December 31 2021 2020 (Millions of yen) Loan from banks; bearing interest of 0.21% at December 31, 2021 and 0.09% at December 31, 2020 *1 174,000 344,000 Other debt *2 7,040 6,608 181,040 350,608 Less current portion (1,290 ) (345,774 ) 179,750 4,834 *1 Canon prepaid ¥170,000 million of the outstanding loan under the unsecured revolving credit facility contracts on December 28, 2021 before its due date. The remaining balance of ¥174,000 million was refinanced with a new expiration date in December 2023 under the credit facilities. The outstanding loans under the credit facilities are ¥ *2 Other debt consisted of term-loans and finance lease obligations as of December 31, 2021 and 2020. |
Aggregate Annual Maturities of Long-Term Debt Outstanding | The aggregate annual maturities of long-term debt outstanding at December 31, 2021 were as follows: (Millions of yen) Year ending December 31: 2022 1,290 2023 174,920 2024 609 2025 417 2026 237 Thereafter 3,567 181,040 |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Trade Payables | Trade payables are summarized as follows: December 31 2021 2020 (Millions of yen) Notes 82,243 83,468 Accounts 256,361 220,341 338,604 303,809 |
Employee Retirement and Sever_2
Employee Retirement and Severance Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Change in benefit obligations: Projected benefit obligations at beginning of year 911,121 925,390 477,337 439,624 Service cost 30,194 30,604 3,827 5,303 Interest cost 4,815 4,064 5,965 6,087 Plan participants’ contributions — — 658 860 Actuarial (gain) loss 2,935 (11,432 ) (21,133 ) 43,202 Benefits paid (39,390 ) (36,646 ) (13,471 ) (12,351 ) Plan amendments (41 ) (859 ) (10,617 ) (1,463 ) Curtailments and settlements — — (682 ) (6,004 ) Foreign currency exchange rate changes — — 34,346 2,079 Projected benefit obligations at end of year 909,634 911,121 476,230 477,337 Change in plan assets: Fair value of plan assets at beginning of year 724,039 704,169 321,713 294,829 Actual return on plan assets 52,688 36,060 24,024 23,912 Employer contributions 11,652 13,360 32,130 13,605 Plan participants’ contributions — — 658 860 Benefits paid (31,636 ) (29,550 ) (13,471 ) (12,351 ) Settlements — — 1,743 (805 ) Foreign currency exchange rate changes — — 28,115 1,663 Fair value of plan assets at end of year 756,743 724,039 394,912 321,713 Funded status at end of year (152,891 ) (187,082 ) (81,318 ) (155,624 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets at December 31, 2021 and 2020 are as follows: Japanese plans Foreign plans December 31 December 31 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Other assets 2,911 2,684 13,596 2,236 Accrued expenses (1,208 ) (791 ) (1,041 ) (938 ) Accrued pension and severance cost (154,594 ) (188,975 ) (93,873 ) (156,922 ) (152,891 ) (187,082 ) (81,318 ) (155,624 ) |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Before Effect of Income Taxes | Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2021 and 2020 before the effect of income taxes are as follows: Japanese plans Foreign plans December 31 December 31 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Actuarial loss 156,028 192,931 104,647 142,455 Prior service credit (20,371 ) (28,633 ) (10,319 ) (520 ) 135,657 164,298 94,328 141,935 |
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 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Accumulated benefit obligation 883,462 879,136 462,306 460,536 |
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 2021 2020 2021 2020 (Millions of yen) (Millions of yen) Plans with projected benefit obligations in excess of plan assets: Projected benefit obligations 895,898 897,669 473,860 475,137 Fair value of plan assets 739,581 707,708 391,054 318,079 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations 870,314 874,327 455,164 453,120 Fair value of plan assets 739,581 707,708 386,223 312,748 |
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, 2021, 2020 and 2019 consisted of the following components: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2021 2020 2019 2021 2020 2019 (Millions of yen) (Millions of yen) Service cost 30,194 30,604 30,903 3,827 5,303 6,264 Interest cost 4,815 4,064 5,074 5,965 6,087 8,643 Expected return on plan assets (21,618 ) (21,013 ) (19,553 ) (15,221 ) (12,006 ) (11,919 ) Amortization of prior service credit (8,303 ) (8,732 ) (11,877 ) (818 ) (675 ) (133 ) Amortization of actuarial loss 8,768 12,401 15,247 7,341 6,122 4,345 (Gain) loss on curtailments and settlements — — (36 ) — 236 (2,197 ) 13,856 17,324 19,758 1,094 5,067 5,003 |
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, 2021, 2020 and 2019 are summarized as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2021 2020 2019 2021 2020 2019 (Millions of yen) (Millions of yen) Current year actuarial (gain) loss (28,135 ) (26,479 ) (19,328 ) (29,936 ) 31,296 28,882 Current year prior service credit (41 ) (859 ) — (10,617 ) (1,463 ) 362 Amortization of actuarial loss (8,768 ) (12,401 ) (15,247 ) (7,341 ) (6,122 ) (4,345 ) Amortization of prior service credit 8,303 8,732 11,877 818 675 133 Curtailments and settlements — — (960 ) (531 ) (966 ) (1,411 ) (28,641 ) (31,007 ) (23,658 ) (47,607 ) 23,420 23,621 |
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 2021 2020 2021 2020 Discount rate 0.5 % 0.5 % 1.5 % 1.5 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 0.7 % 0.9 % Interest crediting rate for cash balance plans 1.9 % 1.9 % 1.0 % 1.0 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Japanese plans Foreign plans Years ended December 31 Years ended December 31 2021 2020 2019 2021 2020 2019 Discount rate 0.5 % 0.5 % 0.6 % 1.5 % 1.6 % 2.4 % Assumed rate of increase in future compensation levels 2.6 % 2.6 % 2.6 % 0.9 % 1.0 % 1.9 % Expected long-term rate of return on plan assets 3.0 % 3.0 % 3.0 % 4.4 % 4.8 % 5.2 % Interest crediting rate for cash balance plans 1.9 % 1.9 % 1.9 % 1.0 % 1.0 % 1.0 % |
Fair Values of Company's Pension Plans Assets | The three levels of input used to measure fair value are more fully described in Note 22. The fair values of Canon’s pension plan assets at December 31, 2021 and 2020, by asset category, are as follows: December 31, 2021 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) 95,698 — — 95,698 — — — — Foreign companies 12,746 — — 12,746 11,628 — — 11,628 Pooled funds (b) — 180,286 — 180,286 — 43,026 — 43,026 Debt securities: Government bonds (c) 133,691 — — 133,691 — — — — Municipal bonds — 1,264 — 1,264 — 2,899 — 2,899 Corporate bonds — 19,373 — 19,373 — 7,821 — 7,821 Pooled funds (d) — 145,348 — 145,348 — 138,687 — 138,687 Mortgage backed securities (and other asset backed securities) — 11,449 — 11,449 — 6,826 — 6,826 Insurance contracts — 114,624 — 114,624 — 6,287 39,398 45,685 Other assets — 28,181 366 28,547 — 106,657 532 107,189 Investment measured at net asset value — — — 13,717 — — — 31,151 242,135 500,525 366 756,743 11,628 312,203 39,930 394,912 December 31, 2020 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) 80,201 — — 80,201 — — — — Foreign companies 9,807 — — 9,807 10,267 — — 10,267 Pooled funds (f) — 168,745 — 168,745 37,538 37,538 Debt securities: Government bonds (g) 136,771 — — 136,771 — — — — Municipal bonds — 1,126 — 1,126 — 2,324 — 2,324 Corporate bonds — 15,617 — 15,617 — 6,375 — 6,375 Pooled funds (h) — 140,825 — 140,825 — 108,499 — 108,499 Mortgage backed securities (and other asset backed securities) — 8,308 — 8,308 — 2,696 — 2,696 Life insurance company general accounts — 117,762 — 117,762 — 27,953 — 27,953 Other assets — 28,731 1,356 30,087 — 102,159 — 102,159 Investment measured at net asset value — — — 14,790 — — — 23,902 226,779 481,114 1,356 724,039 10,267 287,544 — 321,713 (a) The plan’s equity securities include common stock of the Company and certain of its subsidiaries in the amounts of ¥234 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 80% Japanese government bonds and 20% foreign government bonds for Japanese 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 ¥282 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 85% Japanese government bonds and 15% foreign government bonds for Japanese plans, and mainly foreign government bonds for foreign plans. (h) These funds invest in approximately 25% Japanese government bonds, 55% foreign government bonds, 5% Japanese municipal bonds, and 15% corporate bonds for Japanese plans. These funds invest in approximately 60% foreign government bonds and 40% 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: 2022 44,169 15,228 2023 44,772 15,887 2024 44,699 17,151 2025 45,715 18,145 2026 44,479 19,199 2027 – 2031 228,342 116,447 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Japanese Foreign Total (Millions of yen) Income before income taxes 165,927 136,779 302,706 Income taxes: Current 47,491 34,201 81,692 Deferred 6,883 (16,709 ) (9,826 ) 54,374 17,492 71,866 Year ended December 31, 2020 Japanese Foreign Total (Millions of yen) Income before income taxes 48,186 82,094 130,280 Income taxes: Current 24,063 25,816 49,879 Deferred (6,007 ) (9,535 ) (15,542 ) 18,056 16,281 34,337 Year ended December 31, 2019 Japanese Foreign Total (Millions of yen) Income before income taxes 107,082 88,411 195,493 Income taxes: Current 39,483 23,186 62,669 Deferred (4,276 ) (2,247 ) (6,523 ) 35,207 20,939 56,146 |
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 2021 2020 2019 Japanese statutory income tax rate 31.0 % 31.0 % 31.0 % Increase (reduction) in income taxes resulting from: Expenses not deductible for tax purposes 0.7 2.3 1.7 Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate (3.9 ) (5.8 ) (2.9 ) Tax credit for research and development expenses (3.2 ) (1.7 ) (2.3 ) Change in valuation allowance (3.9 ) 2.4 (1.6 ) Deferred tax liabilities on undistributed earnings of foreign subsidiaries 4.5 2.6 2.4 Tax credit at foreign subsidiaries (0.3 ) (1.3 ) (1.1 ) Effect of enacted changes in tax laws (1.0 ) (1.5 ) (0.2 ) Other (0.2 ) (1.6 ) 1.7 Effective income tax rate 23.7 % 26.4 % 28.7 % |
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 2021 2020 (Millions of yen) Other assets 138,507 154,226 Other noncurrent liabilities (43,402 ) (48,247 ) 95,105 105,979 |
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, 2021 and 2020 are presented below: December 31 2021 2020 (Millions of yen) Deferred tax assets: Inventories 11,263 10,551 Accrued business tax 3,387 1,629 Accrued pension and severance cost 67,752 95,386 Research and development – costs capitalized for tax purposes 5,004 4,989 Property, plant and equipment 35,658 34,923 Operating lease liabilities 17,328 20,163 Accrued expenses 29,331 28,243 Net operating losses carried forward 33,873 29,591 Other 48,621 42,741 252,217 268,216 Less valuation allowance (19,073 ) (30,752 ) Total deferred tax assets 233,144 237,464 Deferred tax liabilities: Undistributed earnings of foreign subsidiaries (19,677 ) (9,147 ) Tax deductible reserve (4,007 ) (4,040 ) Financing lease revenue (14,602 ) (15,041 ) Operating lease right-of-use (17,066 ) (19,425 ) Intangible assets (51,173 ) (54,948 ) Other (31,514 ) (28,884 ) Total deferred tax liabilities (138,039 ) (131,485 ) Net deferred tax assets 95,105 105,979 |
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 1,206 After one year through five years 13,869 After five years through ten years 44,316 After ten years through twenty years 8,223 Indefinite period 107,967 175,581 |
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 2021 2020 2019 (Millions of yen) Balance at beginning of year 8,572 8,120 8,649 Additions for tax positions of the current year 1,168 — — Additions for tax positions of prior years 216 208 204 Reductions for tax positions of prior years — (49 ) (44 ) Settlements with tax authorities (62 ) — (402 ) Other (81 ) 293 (287 ) Balance at end of year* 9,813 8,572 8,120 * The unrecognized tax benefits were offset by deferred tax assets in the amount of ¥1,695 million, ¥1,412 million and ¥933 million as of December 31, 2021, 2020 and 2019, 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, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 are as follows: Foreign Gains and Pension Total (Millions of yen) 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 ) Equity transactions with noncontrolling interests and other (9 ) — — (9 ) Other comprehensive income (loss) before reclassifications (17,355 ) (1,199 ) (7,530 ) (26,084 ) Amounts reclassified from accumulated other comprehensive income (loss) — 2,186 7,560 9,746 Net change during the year (17,364 ) 987 30 (16,347 ) Balance at December 31, 2020 (113,646 ) 100 (211,243 ) (324,789 ) Other comprehensive income (loss) before reclassifications 119,689 (3,330 ) 49,759 166,118 Amounts reclassified from accumulated other comprehensive income (loss) (524 ) 2,336 5,065 6,877 Net change during the year 119,165 (994 ) 54,824 172,995 Balance at December 31, 2021 5,519 (894 ) (156,419 ) (151,794 ) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 are as follows: Amount reclassified from Year ended Year ended Year ended Affected line items in consolidated statements of income (Millions of yen) Foreign currency translation adjustments (759 ) — — Selling, general and administrative expenses — — (154 ) Other, net 235 — — Income taxes (524 ) — (154 ) Consolidated net income — — — Net income attributable to noncontrolling interests (524 ) — (154 ) Net income attributable to Canon Inc. Gains and losses on derivative instruments 3,285 3,034 661 Net Sales (959 ) (775 ) (2 ) Income taxes 2,326 2,259 659 Consolidated net income 10 (73 ) (9 ) Net income attributable to noncontrolling interests 2,336 2,186 650 Net income attributable to Canon Inc. Pension liability adjustments 7,519 10,082 9,953 Other, net (1,625) (2,484 ) (2,523 ) Income taxes 5,894 7,598 7,430 Consolidated net income (829) (38 ) (376 ) Net income attributable to noncontrolling interests 5,065 7,560 7,054 Net income attributable to Canon Inc. Total amount reclassified, net of tax and noncontrolling interests 6,877 9,746 7,550 * Amounts in parentheses indicate gains in consolidated statements of income. |
Tax Effects Allocated to Other Comprehensive Income (Loss) and Reclassification Adjustments, Including Amounts Attributable to Noncontrolling Interests | Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments, including amounts attributable to noncontrolling interests, are as follows: Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2021: Foreign currency translation adjustments Amount arising during the year 122,075 (1,112 ) 120,963 Reclassification adjustments for gains and losses realized in net income (759 ) 235 (524 ) Net change during the year 121,316 (877 ) 120,439 Net gains and losses on derivative instruments: Amount arising during the year (4,596 ) 1,298 (3,298 ) Reclassification adjustments for gains and losses realized in net income 3,285 (959 ) 2,326 Net change during the year (1,311 ) 339 (972 ) Pension liability adjustments: Amount arising during the year 68,729 (18,115) 50,614 Reclassification adjustments for gains and losses realized in net income 7,519 (1,625) 5,894 Net change during the year 76,248 (19,740) 56,508 Other comprehensive income (loss) 196,253 (20,278) 175,975 Years ended December 31 Before-tax Tax (expense) Net-of-tax (Millions of yen) 2020: Foreign currency translation adjustments Amount arising during the year (17,583 ) 229 (17,354 ) Reclassification adjustments for gains and losses realized in net income — — — Net change during the year (17,583 ) 229 (17,354 ) Net gains and losses on derivative instruments: Amount arising during the year (1,731 ) 442 (1,289 ) Reclassification adjustments for gains and losses realized in net income 3,034 (775 ) 2,259 Net change during the year 1,303 (333 ) 970 Pension liability adjustments: Amount arising during the year (2,495 ) (3,721 ) (6,216 ) Reclassification adjustments for gains and losses realized in net income 10,082 (2,484 ) 7,598 Net change during the year 7,587 (6,205 ) 1,382 Other comprehensive income (loss) (8,693 ) (6,309 ) (15,002 ) 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 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 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 23. Printing Imaging Medical Industrial and Others Corporate Consolidated (Millions of yen) 2021: Revenue recognized at a point in time 1,419,043 646,849 329,323 439,914 (105,126 ) 2,730,003 Revenue recognized over time 519,804 6,683 151,039 105,828 — 783,354 Total 1,938,847 653,532 480,362 545,742 (105,126 ) 3,513,357 Printing Imaging Medical Industrial and Others Corporate Consolidated (Millions of yen) 2020: Revenue recognized at a point in time 1,316,556 534,685 287,849 336,235 (83,094 ) 2,392,231 Revenue recognized over time 487,871 6,629 148,225 125,287 — 768,012 Total 1,804,427 541,314 436,074 461,522 (83,094 ) 3,160,243 Printing Imaging Medical Industrial and Others Corporate Consolidated (Millions of yen) 2019: Revenue recognized at a point in time 1,520,393 651,629 290,702 391,272 (93,180 ) 2,760,816 Revenue recognized over time 572,071 10,077 147,823 102,512 — 832,483 Total 2,092,464 661,706 438,525 493,784 (93,180 ) 3,593,299 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Year ended December 31, 2020 *1 *2 Expected term of option (in years) 5.0 6.0 6.0 Expected volatility 24.83 % 20.32 % 20.92 % Dividend yield 3.04 % 6.25 % 6.97 % Risk-free interest rate (0.10 %) (0.12 %) (0.17 %) *1 Granted on March 25, 2020 *2 Granted on May 1, 2020 |
Summary of Option Activity Under Stock Option Plans | A summary of option activity the Shares Weighted-average exercise price Weighted-average remaining Aggregate (Yen) (Year) (Millions of yen) Outstanding at January 1, 2019 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 Granted 98,900 1 Exercised (37,100 ) 1 Outstanding at December 31, 2020 247,600 1 28.4 324 Granted 43,700 1 Exercised (4,800 ) 1 Outstanding at December 31, 2021 286,500 1 27.8 802 Exercisable at December 31, 2021 286,500 1 27.8 802 |
Net Income Attributable to Ca_2
Net Income Attributable to Canon Inc. Shareholders per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 2019 (Millions of yen) Basic net income attributable to Canon Inc. 214,718 83,318 124,964 Diluted net income attributable to Canon Inc. 214,714 83,315 124,962 (Number of shares) Average common shares outstanding 1,045,632,588 1,049,802,197 1,069,956,767 Effect of dilutive securities: Stock options 277,066 229,691 158,173 Diluted common shares outstanding 1,045,909,654 1,050,031,888 1,070,114,940 (Yen) Net income attributable to Canon Inc. shareholders per share: Basic 205.35 79.37 116.79 Diluted 205.29 79.35 116.77 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Contract Amounts of Foreign Exchange Contracts | Contract amounts of foreign exchange contracts at December 31, 2021 and 2020 are set forth below: December 31 2021 2020 (Millions of yen) To sell foreign currencies 169,392 137,721 To buy foreign currencies 27,453 27,220 |
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 2021 2020 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 42 426 Liabilities: Foreign exchange contracts Other current liabilities 777 416 |
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 2021 2020 (Millions of yen) Assets: Foreign exchange contracts Prepaid expenses and other current assets 23 107 Liabilities: Foreign exchange contracts Other current liabilities 1,342 809 |
Cash Flow Hedging | Designated as Hedging Instrument | |
Effect of Derivative Instruments in Consolidated Statements of Income | 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, 2021, 2020 and 2019. Derivatives in cash flow hedging relationships Year ended December 31 Gain (loss) Gain (loss) reclassified from Amount Location Amount (Millions of yen) 2021: Foreign exchange contracts (4,596 ) Net sales (3,285 ) 2020: Foreign exchange contracts (1,731 ) Net sales (3,034 ) 2019: Foreign exchange contracts (2,180 ) Net sales (661 ) |
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 2021 2020 2019 (Millions of yen) Foreign exchange contracts Other, net (6,099 ) 104 805 |
Lessee Accounting (Tables)
Lessee Accounting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Supplemental Income Statement | Lease costs are included in cost of sales or selling general and administrative expense in accompanying consolidated statements of income. Supplemental income statement information is as follows: Year ended December 31, 2021 Year ended December 31, 2020 (Millions of yen) Operating lease cost 39,699 40,053 Short-term lease cost 13,961 14,245 Other lease cost 71 120 53,731 54,418 |
Supplemental Cash Flow Information | Supplemental cash flow information is as follows. Year ended December 31, 2021 Year ended December 31, 2020 (Millions of yen) Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases 39,879 36,733 Noncash activity – Rights of use assets obtained in exchange for lease liabilities Operating leases 21,588 30,700 |
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, 2021. (Millions of yen) Year ending December 31: 2022 32,941 2023 22,512 2024 15,226 2025 10,816 2026 7,832 Thereafter 11,192 Total future minimum lease payments 100,519 Less Imputed Interest (4,189 ) 96,330 |
Summary of Remaining Lease Termand Discount Rate | The following is remaining lease term and discount rate under operating leases at December 31, 2021 and 2020. December 31, 2021 December 31, 2020 Weighted-average remaining lease term 54 months 56 months Weighted-average discount rate 2.1% 2.1% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 are summarized as follows: Years ended December 31 2021 2020 (Millions of yen) Balance at beginning of the year 14,300 15,846 Additions 15,687 11,355 Utilization (11,928 ) (10,657 ) Other (1,110 ) (2,244 ) Balance at end of the year 16,949 14,300 |
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, 2021 | |
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, 2021 and 2020 are set forth below. The following summary excludes cash and cash equivalents, trade 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 22, and Note 18, respectively. December 31 2021 2020 Carrying Estimated Carrying Estimated (Millions of yen) Long-term debt, including current installments (177,410 ) (177,343 ) (346,317 ) (346,275 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020. December 31, 2021 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 500 — 500 Investments: Fund trusts and others 281 328 — 609 Equity securities 28,640 — — 28,640 Prepaid expenses and other current assets: Derivatives — 65 — 65 Total assets 28,921 893 — 29,814 Liabilities: Other current liabilities: Derivatives — 2,119 — 2,119 Total liabilities — 2,119 — 2,119 December 31, 2020 Level 1 Level 2 Level 3 Total (Millions of yen) Assets: Cash and cash equivalents — 500 — 500 Investments: Fund trusts and others 284 248 — 532 Equity securities 18,683 — — 18,683 Prepaid expenses and other current assets: Derivatives — 533 — 533 Total assets 18,967 1,281 — 20,248 Liabilities: Other current liabilities: Derivatives — 1,225 — 1,225 Total liabilities — 1,225 — 1,225 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 is as follows: Printing Imaging Medical Industrial and Corporate and Consolidated (Millions of yen) 2021: Net sales: External customers 1,934,012 651,494 480,029 449,915 (2,093 ) 3,513,357 Intersegment 4,835 2,038 333 95,827 (103,033 ) — Total 1,938,847 653,532 480,362 545,742 (105,126 ) 3,513,357 Operating cost and expenses 1,713,154 574,814 450,942 501,434 (8,905 ) 3,231,439 Operating profit 225,693 78,718 29,420 44,308 (96,221 ) 281,918 Other income (deductions) 7,259 (256 ) 4,876 342 8,567 20,788 Income before income taxes 232,952 78,462 34,296 44,650 (87,654 ) 302,706 Total assets 1,009,922 236,143 311,247 345,883 2,847,693 4,750,888 Depreciation and amortization 69,549 21,840 12,435 27,677 89,745 221,246 Capital expenditures 63,609 12,069 11,888 25,759 65,675 179,000 2020: Net sales: External customers 1,800,898 539,560 435,368 385,177 (760 ) 3,160,243 Intersegment 3,529 1,754 706 76,345 (82,334 ) — Total 1,804,427 541,314 436,074 461,522 (83,094 ) 3,160,243 Operating cost and expenses 1,657,319 535,584 410,830 441,006 4,957 3,049,696 Operating profit 147,108 5,730 25,244 20,516 (88,051 ) 110,547 Other income (deductions) 5,076 (778 ) 300 1,171 13,964 19,733 Income before income taxes 152,184 4,952 25,544 21,687 (74,087 ) 130,280 Total assets 913,931 239,605 286,749 348,614 2,836,715 4,625,614 Depreciation and amortization 69,725 22,201 11,781 28,720 95,398 227,825 Capital expenditures 56,613 12,540 7,244 21,276 64,054 161,727 2019: Net sales: External customers 2,089,024 660,105 437,456 405,114 1,600 3,593,299 Intersegment 3,440 1,601 1,069 88,670 (94,780 ) — Total 2,092,464 661,706 438,525 493,784 (93,180 ) 3,593,299 Operating cost and expenses* 1,908,436 634,773 411,781 465,197 (1,308 ) 3,418,879 Operating profit 184,028 26,933 26,744 28,587 (91,872 ) 174,420 Other income (deductions) 6,066 905 539 — 13,563 21,073 Income before income taxes 190,094 27,838 27,283 28,587 (78,309 ) 195,493 Total assets 1,002,778 288,545 273,525 310,110 2,896,960 4,771,918 Depreciation and amortization 74,958 24,561 11,760 29,086 96,962 237,327 Capital expenditures 61,789 18,929 7,074 28,436 95,000 211,228 * During 2019, the Company implemented a restructuring plan centered in Europe with the goal of reorganizing sales structure and improving profitability mainly in the Printing Business Unit. The employee |
Product Sales to External Customers for Each Segment | Information about sales by product and service to external customers for each segment for the years ended December 31, 2021, 2020 and 2019 is as follows: Years ended December 31 2021 2020 2019 (Millions of yen) Printing Office multifunction devices 477,000 455,357 573,297 Office others 279,366 267,123 292,378 Office 756,366 722,480 865,675 Laser printers 560,159 502,157 624,597 Inkjet printers and Others 328,932 326,041 296,622 Prosumer 889,091 828,198 921,219 Production 288,555 250,220 302,130 Total 1,934,012 1,800,898 2,089,024 Imaging Cameras 432,885 347,240 466,306 Network cameras and Others 218,609 192,320 193,799 Total 651,494 539,560 660,105 Medical Diagnostic equipment 480,029 435,368 437,456 Industrial and Others Lithography equipment 213,699 142,516 157,160 Industrial equipment 112,274 126,762 107,281 Others 123,942 115,899 140,673 Total 449,915 385,177 405,114 Corporate (2,093 ) (760 ) 1,600 Consolidated 3,513,357 3,160,243 3,593,299 |
Information by Major Geographic Area | Information by major geographic area as of and for the years ended December 31, 2021, 2020 and 2019 is as follows: 2021 2020 2019 (Millions of yen) Net sales: Japan 830,378 806,305 872,534 Americas 968,839 852,451 1,029,078 Europe 894,898 795,616 882,480 Asia and Oceania 819,242 705,871 809,207 Total 3,513,357 3,160,243 3,593,299 Long-lived assets: Japan 986,638 1,011,109 1,053,074 Americas 152,137 133,648 148,669 Europe 158,297 175,516 191,050 Asia and Oceania 141,915 143,265 159,217 Total 1,438,987 1,463,538 1,552,010 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021JPY (¥)Entity | Dec. 31, 2020JPY (¥) | Dec. 31, 2019JPY (¥) | |
Significant Accounting Policies [Line Items] | |||
Foreign currency exchange gains (losses) | ¥ (21,746) | ¥ (4,451) | ¥ (4,236) |
Advertising expenses | ¥ 36,812 | 31,273 | 46,665 |
Trademarks | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets, useful life | 15 years | ||
License Fees | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets, useful life | 8 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 | 5 years | ||
Minimum | Customer Relationships | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets, useful life | 7 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 | 21 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 | ¥ 500 | 500 | |
Selling, General and Administrative Expenses | |||
Significant Accounting Policies [Line Items] | |||
Shipping and handling cost | ¥ 53,347 | ¥ 47,721 | ¥ 51,718 |
Consolidated Net Sales | HP Inc. | Printing Business Unit | Customer Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 11.60% | 11.40% | 13.00% |
Foreign | |||
Significant Accounting Policies [Line Items] | |||
Number of manufacturing plants | Entity | 13 | ||
Japan | |||
Significant Accounting Policies [Line Items] | |||
Number of manufacturing plants | Entity | 29 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Schedule of Consolidated Statements of Income) (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||
Selling, general and administrative expenses | ¥ 1,058,536 | ¥ 993,009 | ¥ 1,137,110 |
Operating profit | 281,918 | 110,547 | 174,420 |
Income before income taxes | 302,706 | 130,280 | 195,493 |
Income taxes | 71,866 | 34,337 | 56,146 |
Consolidated net income | 230,840 | 95,943 | 139,347 |
Less: Net income attributable to noncontrolling interests | 16,122 | 12,625 | 14,383 |
Net income attributable to Canon Inc. | ¥ 214,718 | ¥ 83,318 | ¥ 124,964 |
Net income attributable to Canon Inc. shareholders per share: | |||
Basic | ¥ 205.35 | ¥ 79.37 | ¥ 116.79 |
Diluted | ¥ 205.29 | ¥ 79.35 | ¥ 116.77 |
Restatement Adjustment | |||
Condensed Income Statements, Captions [Line Items] | |||
Selling, general and administrative expenses | ¥ 1,137,110 | ||
Operating profit | 174,420 | ||
Income before income taxes | 195,493 | ||
Income taxes | 56,146 | ||
Consolidated net income | 139,347 | ||
Less: Net income attributable to noncontrolling interests | 14,383 | ||
Net income attributable to Canon Inc. | ¥ 124,964 | ||
Net income attributable to Canon Inc. shareholders per share: | |||
Basic | ¥ 116.79 | ||
Diluted | ¥ 116.77 | ||
Previously Reported | |||
Condensed Income Statements, Captions [Line Items] | |||
Selling, general and administrative expenses | ¥ 1,136,863 | ||
Operating profit | 174,667 | ||
Income before income taxes | 195,740 | ||
Income taxes | 56,223 | ||
Consolidated net income | 139,517 | ||
Less: Net income attributable to noncontrolling interests | 14,412 | ||
Net income attributable to Canon Inc. | ¥ 125,105 | ||
Net income attributable to Canon Inc. shareholders per share: | |||
Basic | ¥ 116.93 | ||
Diluted | ¥ 116.91 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies (Schedule of Consolidated Statements of Comprehensive Income) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
Consolidated net income | ¥ 230,840 | ¥ 95,943 | ¥ 139,347 |
Less: Comprehensive income attributable to noncontrolling interests | 19,102 | 13,961 | 16,353 |
Comprehensive income (loss) attributable to Canon Inc. | ¥ 387,713 | ¥ 66,980 | 86,139 |
Previously Reported | |||
Condensed Statement of Income Captions [Line Items] | |||
Consolidated net income | 139,517 | ||
Less: Comprehensive income attributable to noncontrolling interests | 16,382 | ||
Comprehensive income (loss) attributable to Canon Inc. | ¥ 86,280 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies (Schedule of Consolidated Statements of Cash Flows) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Consolidated net income | ¥ 230,840 | ¥ 95,943 | ¥ 139,347 |
Increase in accrued expenses | (8,673) | (16,413) | 9,738 |
Deferred income taxes | ¥ (9,826) | ¥ (15,542) | (6,523) |
Restatement Adjustment | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Consolidated net income | 139,347 | ||
Increase in accrued expenses | 9,738 | ||
Deferred income taxes | (6,523) | ||
Previously Reported | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Consolidated net income | 139,517 | ||
Increase in accrued expenses | 9,491 | ||
Deferred income taxes | ¥ (6,446) |
Investments - Schedule of Held-
Investments - Schedule of Held-to-maturity debt securities included in short-term investments (Detail) ¥ in Millions | Dec. 31, 2021JPY (¥) |
Segment Reporting [Abstract] | |
Carrying amount | ¥ 2,164 |
Estimated fair value | 2,167 |
Difference | ¥ 3 |
Investments - Schedule of unrea
Investments - Schedule of unrealized and Realized Gains and Losses Equity Securities (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Realized Investment Gains (Losses) [Abstract] | |||
Net gains and (losses) recognized during the period on equity securities | ¥ 8,958 | ¥ 1,959 | ¥ 2,148 |
Less: Net gains and (losses) recognized during the period on equity securities sold during the period | 467 | 477 | (76) |
Unrealized gains and (losses) recognized during the period on equity securities still held at December 31. | ¥ 8,491 | ¥ 1,482 | ¥ 2,224 |
Investments - Schedule of Inves
Investments - Schedule of Investments in Affiliated Companies (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | ¥ 22,025 | ¥ 19,634 |
Canon Korea [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Equity Method Investments | ¥ 11,627 | 10,719 |
Other [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | ¥ 10,398 | ¥ 8,915 |
Investments - Additional Inform
Investments - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Carrying amount of non-marketable equity securities without readily determinable fair value | ¥ 6,661 | ¥ 8,559 | |
Time deposits with original maturities of more than three months | 1,213 | 71 | |
Canon's share of net earnings in affiliated companies accounted for by the equity method, included in other income (deductions) | 1,396 | (994) | ¥ (311) |
Short-term Investments [Member] | |||
Held to maturity debt securities current after allowance for credit loss | ¥ 2,164 | ¥ 0 |
Trade Receivables (Schedule of
Trade Receivables (Schedule of Trade Receivables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Notes | ¥ 28,616 | ¥ 34,922 |
Accounts | 493,816 | 511,849 |
Trade receivables | 522,432 | 546,771 |
Less allowance for credit losses | (12,494) | (11,645) |
Trade Accounts And Notes Receivable Gross Current, Total | ¥ 509,938 | ¥ 535,126 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | ¥ 395,381 | ¥ 352,513 |
Work in process | 199,153 | 160,696 |
Raw materials | 56,034 | 49,598 |
Inventories | ¥ 650,568 | ¥ 562,807 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Land | ¥ 276,306 | ¥ 270,308 |
Buildings | 1,728,811 | 1,687,921 |
Machinery and equipment | 1,849,271 | 1,806,185 |
Construction in progress | 43,283 | 37,324 |
Finance lease right-of-use assets | 6,533 | 6,048 |
Cost | 3,904,204 | 3,807,786 |
Less accumulated depreciation | (2,862,801) | (2,770,106) |
Property, plant and equipment, net | ¥ 1,041,403 | ¥ 1,037,680 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Number Of Shares Outstanding Basic And Diluted Proforma [Abstract] | |||
Depreciation expenses | ¥ 156,333 | ¥ 162,733 | ¥ 170,418 |
Amount due for purchase of property, plant and equipment | ¥ 29,562 | ¥ 27,688 |
Lessor Accounting - Additional
Lessor Accounting - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases Disclosure [Line Items] | |||
Proceeds from sale of lease finance receivables | ¥ 0 | ¥ 19,185 | ¥ 11,710 |
Financing receivables | 366,051 | 337,265 | |
Uncollectible Receivables [Member] | |||
Leases Disclosure [Line Items] | |||
Financing receivables | ¥ 23,984 | 36,339 | |
Minimum | |||
Leases Disclosure [Line Items] | |||
Term of financing receivables | 1 year | ||
Maximum | |||
Leases Disclosure [Line Items] | |||
Term of financing receivables | 8 years | ||
Equipment Leased to Customer | |||
Leases Disclosure [Line Items] | |||
Property, plant and equipment lease | ¥ 143,160 | 132,763 | |
Accumulated depreciation on property, plant and equipment lease | ¥ 87,879 | ¥ 81,345 |
Lessor Accounting (Summary of L
Lessor Accounting (Summary of Lease Income) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Sales Type And Direct Financing Leases Income [Abstract] | ||
Revenue at lease commencement | ¥ 84,895 | ¥ 92,133 |
Interest income on lease receivables | 18,351 | 18,594 |
Sales-type and direct financing leases income total | 103,246 | 110,727 |
Lease income – operating leases | 27,122 | 23,878 |
Variable lease income | 5,277 | 5,343 |
Total lease income | ¥ 135,645 | ¥ 139,948 |
Lessor Accounting (Components o
Lessor Accounting (Components of Finance Receivables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
Total minimum lease payments receivable | ¥ 366,051 | ¥ 337,265 | |
Unguaranteed residual values | 12,192 | 11,459 | |
Executory costs | |||
Unearned income | (31,619) | (29,541) | |
Aggregated net investment in finance leases | 346,624 | 319,183 | |
Less allowance for credit losses | (3,791) | (3,068) | ¥ (2,627) |
Total | 342,833 | 316,115 | |
Less current portion | (119,902) | (108,837) | |
Total | ¥ 222,931 | ¥ 207,278 |
Lessor Accounting (Activity in
Lessor Accounting (Activity in Allowance for Credit Losses) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Balance at beginning of year | ¥ 3,068 | ¥ 2,627 |
Charge-offs | (2,157) | (2,199) |
Provision | 2,331 | 2,351 |
Translation adjustments and other | 549 | 289 |
Balance at end of year | ¥ 3,791 | ¥ 3,068 |
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, 2021 | Dec. 31, 2020 |
Financing leases | ||
2022 | ¥ 131,113 | |
2023 | 99,168 | |
2024 | 68,241 | |
2025 | 41,600 | |
2026 | 18,550 | |
Thereafter | 7,379 | |
Total minimum lease payments receivable | 366,051 | ¥ 337,265 |
Operating leases | ||
2022 | 11,578 | |
2023 | 7,168 | |
2024 | 4,914 | |
2025 | 2,972 | |
2026 | 1,471 | |
Thereafter | 1,402 | |
Operating Leases, Total | ¥ 29,505 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - JPY (¥) ¥ in Millions | Sep. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Cash consideration | ¥ 31,751 | ¥ 127 | ¥ 8,880 | |
Equity investment | 22,025 | 19,634 | ||
Gain from Equity investment | 1,396 | (994) | ¥ (311) | |
Intangible assets acquired, technical assets | ¥ 36,015 | ¥ 31,413 | ||
Intangible assetsweighted average useful life, technical assets | 9 years | 6 years | ||
Redlen [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | ¥ 31,640 | |||
Investment held on acquistion | ¥ 1,252 | |||
Equity investment | 5,223 | |||
Gain from Equity investment | 3,971 | |||
Technical assets Member [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired, technical assets | ¥ 8,929 | |||
Intangible assetsuseful life,other intangible assets | 21 years | |||
Intangible assetsweighted average useful life, technical assets | 21 years | |||
Other Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired, technical assets | ¥ 26 | |||
Intangible assetsuseful life,other intangible assets | 5 years | |||
Redlen Technologies Inc [Member] | Redlen [Member] | ||||
Business Acquisition [Line Items] | ||||
percentage of issued share, acquired | 87.00% |
Acquisitions (Summary of Fair V
Acquisitions (Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date, Toshiba Medical Systems Corporation (TMSC)) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | ¥ 953,850 | ¥ 915,564 | ¥ 898,661 |
Redlen Technologies Inc [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | 4,043 | ||
Intangible assets | 8,955 | ||
Goodwill | 28,826 | ||
Others | 389 | ||
Assets acquired | 42,213 | ||
Liabilities assumed | 5,350 | ||
Net assets acquired | ¥ 36,863 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 36,015 | ¥ 31,413 | |
Weighted average amortization period for acquired intangible assets | 9 years | 6 years | |
Aggregate amortization expense | ¥ 64,913 | ¥ 65,092 | ¥ 66,909 |
Estimated amortization expense for intangible assets, 2022 | 55,921 | ||
Estimated amortization expense for intangible assets, 2023 | 47,476 | ||
Estimated amortization expense for intangible assets, 2024 | 38,534 | ||
Estimated amortization expense for intangible assets, 2025 | 31,977 | ||
Estimated amortization expense for intangible assets, 2026 | 28,302 | ||
Computer software, intangible asset | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible assets developed or acquired | ¥ 25,965 | ¥ 29,137 | |
Weighted average amortization period for acquired intangible assets | 5 years | 5 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Components of Intangible Assets Subject to Amortization) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | ¥ 773,139 | ¥ 735,195 |
Accumulated amortization | 473,134 | 418,413 |
Computer software, intangible asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 399,331 | 379,504 |
Accumulated amortization | 300,905 | 279,372 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 158,513 | 155,648 |
Accumulated amortization | 59,465 | 46,613 |
Patents and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 133,923 | 124,315 |
Accumulated amortization | 70,795 | 59,328 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 45,726 | 44,914 |
Accumulated amortization | 21,350 | 17,800 |
License Fees | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 16,881 | 13,651 |
Accumulated amortization | 10,098 | 6,065 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 18,765 | 17,163 |
Accumulated amortization | ¥ 10,521 | ¥ 9,235 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill - gross | ¥ 987,175 | ¥ 947,980 | ¥ 929,951 |
Accumulated impairment losses | (33,325) | (32,416) | (31,290) |
Balance at beginning of year | 915,564 | 898,661 | |
Goodwill acquired during the year | 28,826 | 0 | |
Translation adjustments and other | 9,460 | 16,903 | |
Balance at end of year | 953,850 | 915,564 | |
Printing Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 146,025 | 142,185 | 139,036 |
Accumulated impairment losses | (33,325) | (32,416) | (31,290) |
Balance at beginning of year | 109,769 | 107,746 | |
Translation adjustments and other | 2,931 | 2,023 | |
Balance at end of year | 112,700 | 109,769 | |
Imaging Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 293,749 | 289,999 | 272,241 |
Balance at beginning of year | 289,999 | 272,241 | |
Translation adjustments and other | 3,750 | 17,758 | |
Balance at end of year | 293,749 | 289,999 | |
Medical Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 537,183 | 506,513 | 508,907 |
Balance at beginning of year | 506,513 | 508,907 | |
Goodwill acquired during the year | 28,826 | 0 | |
Translation adjustments and other | 1,844 | (2,394) | |
Balance at end of year | 537,183 | 506,513 | |
Industrial and Others Business Unit | |||
Goodwill [Line Items] | |||
Goodwill - gross | 10,218 | 9,283 | ¥ 9,767 |
Balance at beginning of year | 9,283 | 9,767 | |
Translation adjustments and other | 935 | (484) | |
Balance at end of year | ¥ 10,218 | ¥ 9,283 |
Short-Term Loans and Long-Ter_3
Short-Term Loans and Long-Term Debt - Additional Information (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term loans related to financial services | ¥ 42,300 | ¥ 45,000 |
Weighted average interest rate on short-term borrowings | 0.19% | 0.26% |
Unused borrowing capacity | ¥ 750,000 | |
Short-term loans, bank borrowings | ¥ 1,301 | ¥ 1,461 |
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, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Loan from banks; bearing interest of 0.21% at December 31, 2021 and 0.09% at December 31, 2020 | [1] | ¥ 174,000 | ¥ 344,000 |
Other debt | 7,040 | 6,608 | |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | 181,040 | 350,608 | |
Less current portion | (1,290) | (345,774) | |
Long-term debt, excluding current installments (Notes 9 and 21) | ¥ 179,750 | ¥ 4,834 | |
[1] | Canon prepaid ¥170,000 million of the outstanding loan under the unsecured revolving credit facility contracts on December 28, 2021 before its due date. The remaining balance of ¥174,000 was refinanced with a new expiration date in December 2023 under the credit facilities. The outstanding loans under the credit facilities are ¥174,000 million at a floating interest of 0.21% and Canon has no unused credit facilities as of December 31, 2021. |
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, 2021 | Dec. 31, 2020 | ||
Debt Disclosure [Abstract] | |||
Loan from the banks, maturity date after refinancing | Dec. 28, 2021 | ||
Loan principle prepaid | ¥ 170,000 | ||
Loan from the banks | [1] | ¥ 174,000 | ¥ 344,000 |
Loan from the banks, floating interest rate | 0.21% | 0.09% | |
Unused line of credit | ¥ 0 | ||
[1] | Canon prepaid ¥170,000 million of the outstanding loan under the unsecured revolving credit facility contracts on December 28, 2021 before its due date. The remaining balance of ¥174,000 was refinanced with a new expiration date in December 2023 under the credit facilities. The outstanding loans under the credit facilities are ¥174,000 million at a floating interest of 0.21% and Canon has no unused credit facilities as of December 31, 2021. |
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, 2021 | Dec. 31, 2020 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
2022 | ¥ 1,290 | |
2023 | 174,920 | |
2024 | 609 | |
2025 | 417 | |
2026 | 237 | |
Thereafter | 3,567 | |
Long-term Debt and Capital Lease Obligations, Including Current Maturities, Total | ¥ 181,040 | ¥ 350,608 |
Trade Payables (Schedule of Tra
Trade Payables (Schedule of Trade Payables) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Notes | ¥ 82,243 | ¥ 83,468 |
Accounts | 256,361 | 220,341 |
Trade payables | ¥ 338,604 | ¥ 303,809 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Japan | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | ¥ 911,121 | ¥ 925,390 | |
Service cost | 30,194 | 30,604 | ¥ 30,903 |
Interest cost | 4,815 | 4,064 | 5,074 |
Actuarial (gain) loss | 2,935 | (11,432) | |
Benefits paid | (39,390) | (36,646) | |
Plan amendments | (41) | (859) | |
Curtailments and settlements | 0 | ||
Projected benefit obligations at end of year | 909,634 | 911,121 | 925,390 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 724,039 | 704,169 | |
Actual return on plan assets | 52,688 | 36,060 | |
Employer contributions | 11,652 | 13,360 | |
Benefits paid | (31,636) | (29,550) | |
Settlements | 0 | ||
Fair value of plan assets at end of year | 756,743 | 724,039 | 704,169 |
Funded status at end of year | (152,891) | (187,082) | |
Foreign Plans | |||
Change in benefit obligations: | |||
Projected benefit obligations at beginning of year | 477,337 | 439,624 | |
Service cost | 3,827 | 5,303 | 6,264 |
Interest cost | 5,965 | 6,087 | 8,643 |
Plan participants' contributions | 658 | 860 | |
Actuarial (gain) loss | (21,133) | 43,202 | |
Benefits paid | (13,471) | (12,351) | |
Plan amendments | (10,617) | (1,463) | |
Curtailments and settlements | (682) | (6,004) | |
Foreign currency exchange rate changes | 34,346 | 2,079 | |
Projected benefit obligations at end of year | 476,230 | 477,337 | 439,624 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 321,713 | 294,829 | |
Actual return on plan assets | 24,024 | 23,912 | |
Employer contributions | 32,130 | 13,605 | |
Plan participants' contributions | 658 | 860 | |
Benefits paid | (13,471) | (12,351) | |
Settlements | 1,743 | (805) | |
Foreign currency exchange rate changes | 28,115 | 1,663 | |
Fair value of plan assets at end of year | 394,912 | 321,713 | ¥ 294,829 |
Funded status at end of year | ¥ (81,318) | ¥ (155,624) |
Employee Retirement and Sever_4
Employee Retirement and Severance Benefits - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 | |
Employee Benefits Disclosure [Line Items] | ||||
Multiemployer pension plan contribution | ¥ 4,822 | ¥ 4,224 | ¥ 4,321 | |
Multiemployer plans collective bargaining arrangements, percentage of contribution | 97.60% | |||
Defined contribution pension plans, cost recognized | 22,660 | ¥ 16,334 | 17,414 | |
Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | 40,296 | 1,356 | ||
Japan | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | 756,743 | 724,039 | 704,169 | |
Expected contribution in defined benefit pension plan for the year ending December 31, 2022 | ¥ 15,942 | |||
Japan | Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 366 | 1,356 | ||
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 | ¥ 114,624 | 117,762 | ||
Foreign Plans | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | 394,912 | 321,713 | ¥ 294,829 | |
Expected contribution in defined benefit pension plan for the year ending December 31, 2022 | ¥ 18,165 | |||
Foreign Plans | Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 39,930 | |||
Foreign Plans | Equity Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 20.00% | |||
Foreign Plans | Debt Securities | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 30.00% | |||
Foreign Plans | Life Insurance Company General Accounts | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 45,685 | ¥ 27,953 | ||
Foreign Plans | Life Insurance Company General Accounts | Fair Value, Inputs, Level 3 | ||||
Employee Benefits Disclosure [Line Items] | ||||
Fair value of plan assets | ¥ 39,398 | |||
Foreign Plans | Real estate assets | ||||
Employee Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 50.00% |
Employee Retirement and Sever_5
Employee Retirement and Severance Benefits (Amounts Recognized in Consolidated Balance Sheets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension and severance cost | ¥ (248,467) | ¥ (345,897) |
Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 2,911 | 2,684 |
Accrued expenses | (1,208) | (791) |
Accrued pension and severance cost | (154,594) | (188,975) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | (152,891) | (187,082) |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 13,596 | 2,236 |
Accrued expenses | (1,041) | (938) |
Accrued pension and severance cost | (93,873) | (156,922) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | ¥ (81,318) | ¥ (155,624) |
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, 2021 | Dec. 31, 2020 |
Japan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | ¥ 156,028 | ¥ 192,931 |
Prior service credit | (20,371) | (28,633) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax, Total | 135,657 | 164,298 |
Foreign Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | 104,647 | 142,455 |
Prior service credit | (10,319) | (520) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax, Total | ¥ 94,328 | ¥ 141,935 |
Employee Retirement and Sever_7
Employee Retirement and Severance Benefits (Accumulated Benefit Obligation for All Defined Benefit Plans) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 883,462 | ¥ 879,136 |
Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | ¥ 462,306 | ¥ 460,536 |
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, 2021 | Dec. 31, 2020 |
Japan | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | ¥ 895,898 | ¥ 897,669 |
Fair value of plan assets | 739,581 | 707,708 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 870,314 | 874,327 |
Fair value of plan assets | 739,581 | 707,708 |
Foreign Plans | ||
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligations | 473,860 | 475,137 |
Fair value of plan assets | 391,054 | 318,079 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligations | 455,164 | 453,120 |
Fair value of plan assets | ¥ 386,223 | ¥ 312,748 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | ¥ 30,194 | ¥ 30,604 | ¥ 30,903 |
Interest cost | 4,815 | 4,064 | 5,074 |
Expected return on plan assets | (21,618) | (21,013) | (19,553) |
Amortization of prior service credit | (8,303) | (8,732) | (11,877) |
Amortization of actuarial loss | 8,768 | 12,401 | 15,247 |
(Gain) loss on curtailments and settlements | (36) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 13,856 | 17,324 | 19,758 |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3,827 | 5,303 | 6,264 |
Interest cost | 5,965 | 6,087 | 8,643 |
Expected return on plan assets | (15,221) | (12,006) | (11,919) |
Amortization of prior service credit | (818) | (675) | (133) |
Amortization of actuarial loss | 7,341 | 6,122 | 4,345 |
(Gain) loss on curtailments and settlements | 0 | 236 | (2,197) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | ¥ 1,094 | ¥ 5,067 | ¥ 5,003 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, other comprehensive income loss adjustment before tax | ¥ (76,248) | ¥ (7,587) | ¥ (37) |
Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | (28,135) | (26,479) | (19,328) |
Current year prior service credit | (41) | (859) | |
Amortization of actuarial loss | (8,768) | (12,401) | (15,247) |
Amortization of prior service credit | 8,303 | 8,732 | 11,877 |
Curtailments and settlements | (960) | ||
Defined benefit plan, other comprehensive income loss adjustment before tax | (28,641) | (31,007) | (23,658) |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | (29,936) | 31,296 | 28,882 |
Current year prior service credit | (10,617) | (1,463) | 362 |
Amortization of actuarial loss | (7,341) | (6,122) | (4,345) |
Amortization of prior service credit | 818 | 675 | 133 |
Curtailments and settlements | (531) | (966) | (1,411) |
Defined benefit plan, other comprehensive income loss adjustment before tax | ¥ (47,607) | ¥ 23,420 | ¥ 23,621 |
Employee Retirement and Seve_11
Employee Retirement and Severance Benefits (Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost) (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Japan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 0.50% | 0.50% | |
Assumed rate of increase in future compensation levels | 2.60% | 2.60% | |
Interest crediting rate for cash balance plans | 1.90% | 1.90% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 0.50% | 0.50% | 0.60% |
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% | 3.00% | 3.00% |
Interest crediting rate for cash balance plans | 1.90% | 1.90% | 1.90% |
Foreign Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 1.50% | 1.50% | |
Assumed rate of increase in future compensation levels | 0.70% | 0.90% | |
Interest crediting rate for cash balance plans | 1.00% | 1.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 1.50% | 1.60% | 2.40% |
Assumed rate of increase in future compensation levels | 0.90% | 1.00% | 1.90% |
Expected long-term rate of return on plan assets | 4.40% | 4.80% | 5.20% |
Interest crediting rate for cash balance plans | 1.00% | 1.00% | 1.00% |
Employee Retirement and Seve_12
Employee Retirement and Severance Benefits (Fair Values of Company's Pension Plans Assets) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | ¥ 40,296 | ¥ 1,356 | |
Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 756,743 | 724,039 | ¥ 704,169 |
Japan | Pooled Equity Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 180,286 | 168,745 | |
Japan | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 133,691 | 136,771 | |
Japan | Japanese Companies Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 95,698 | 80,201 | |
Japan | Foreign Corporate Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 12,746 | 9,807 | |
Japan | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 1,264 | 1,126 | |
Japan | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 19,373 | 15,617 | |
Japan | Pooled Debt Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 145,348 | 140,825 | |
Japan | Mortgage and Asset Backed Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 11,449 | 8,308 | |
Japan | Life Insurance Company General Accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 114,624 | 117,762 | |
Japan | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 28,547 | 30,087 | |
Japan | Investment Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 13,717 | 14,790 | |
Japan | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 242,135 | 226,779 | |
Japan | Fair Value, Inputs, Level 1 | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 133,691 | 136,771 | |
Japan | Fair Value, Inputs, Level 1 | Japanese Companies Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 95,698 | 80,201 | |
Japan | Fair Value, Inputs, Level 1 | Foreign Corporate Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 12,746 | 9,807 | |
Japan | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 500,525 | 481,114 | |
Japan | Fair Value, Inputs, Level 2 | Pooled Equity Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 180,286 | 168,745 | |
Japan | Fair Value, Inputs, Level 2 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 1,264 | 1,126 | |
Japan | Fair Value, Inputs, Level 2 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 19,373 | 15,617 | |
Japan | Fair Value, Inputs, Level 2 | Pooled Debt Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 145,348 | 140,825 | |
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 | 11,449 | 8,308 | |
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 | 114,624 | 117,762 | |
Japan | Fair Value, Inputs, Level 2 | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 28,181 | 28,731 | |
Japan | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 366 | 1,356 | |
Japan | Fair Value, Inputs, Level 3 | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 366 | 1,356 | |
Foreign Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 394,912 | 321,713 | ¥ 294,829 |
Foreign Plans | Pooled Equity Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 43,026 | 37,538 | |
Foreign Plans | Japanese Companies Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 0 | ||
Foreign Plans | Foreign Corporate Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 11,628 | 10,267 | |
Foreign Plans | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 2,899 | 2,324 | |
Foreign Plans | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 7,821 | 6,375 | |
Foreign Plans | Pooled Debt Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 138,687 | 108,499 | |
Foreign Plans | Mortgage and Asset Backed Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 6,826 | 2,696 | |
Foreign Plans | Life Insurance Company General Accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 45,685 | 27,953 | |
Foreign Plans | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 107,189 | 102,159 | |
Foreign Plans | Investment Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 31,151 | 23,902 | |
Foreign Plans | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 11,628 | 10,267 | |
Foreign Plans | Fair Value, Inputs, Level 1 | Japanese Companies Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 0 | ||
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 | 11,628 | 10,267 | |
Foreign Plans | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 312,203 | 287,544 | |
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 | 43,026 | 37,538 | |
Foreign Plans | Fair Value, Inputs, Level 2 | Foreign Corporate Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 2 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 2,899 | 2,324 | |
Foreign Plans | Fair Value, Inputs, Level 2 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 7,821 | 6,375 | |
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 | 138,687 | 108,499 | |
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 | 6,826 | 2,696 | |
Foreign Plans | Fair Value, Inputs, Level 2 | Life Insurance Company General Accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 6,287 | 27,953 | |
Foreign Plans | Fair Value, Inputs, Level 2 | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 106,657 | ¥ 102,159 | |
Foreign Plans | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 39,930 | ||
Foreign Plans | Fair Value, Inputs, Level 3 | Life Insurance Company General Accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | 39,398 | ||
Foreign Plans | Fair Value, Inputs, Level 3 | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of Company's pension plans assets | ¥ 532 |
Employee Retirement and Seve_13
Employee Retirement and Severance Benefits (Fair Values of Company's Pension Plans Assets) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pooled Equity Securities Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount of Employer and Related Party Securities Included in Plan Assets | ¥ 234 | ¥ 282 |
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 | 80.00% | 85.00% |
Government Bonds | Foreign Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 20.00% | 15.00% |
Pooled Debt Securities Funds | Japanese Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 25.00% | 25.00% |
Pooled Debt Securities Funds | Foreign Government Bonds | Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 55.00% | 55.00% |
Pooled Debt Securities Funds | Foreign Government Bonds | Foreign Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets investment allocation | 75.00% | 60.00% |
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% | 40.00% |
Employee Retirement and Seve_14
Employee Retirement and Severance Benefits (Estimated Future Benefit Payments) (Detail) ¥ in Millions | Dec. 31, 2021JPY (¥) |
Japan | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2022 | ¥ 44,169 |
Year ending December 31, 2023 | 44,772 |
Year ending December 31, 2024 | 44,699 |
Year ending December 31, 2025 | 45,715 |
Year ending December 31, 2026 | 44,479 |
Year ending December 31, 2027 - 2031 | 228,342 |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2022 | 15,228 |
Year ending December 31, 2023 | 15,887 |
Year ending December 31, 2024 | 17,151 |
Year ending December 31, 2025 | 18,145 |
Year ending December 31, 2026 | 19,199 |
Year ending December 31, 2027 - 2031 | ¥ 116,447 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Income before income taxes | ¥ 302,706 | ¥ 130,280 | ¥ 195,493 |
Income taxes: | |||
Current | 81,692 | 49,879 | 62,669 |
Deferred | (9,826) | (15,542) | (6,523) |
Income taxes | 71,866 | 34,337 | 56,146 |
Domestic Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 165,927 | 48,186 | 107,082 |
Income taxes: | |||
Current | 47,491 | 24,063 | 39,483 |
Deferred | 6,883 | (6,007) | (4,276) |
Income taxes | 54,374 | 18,056 | 35,207 |
Foreign Country | |||
Income Taxes [Line Items] | |||
Income before income taxes | 136,779 | 82,094 | 88,411 |
Income taxes: | |||
Current | 34,201 | 25,816 | 23,186 |
Deferred | (16,709) | (9,535) | (2,247) |
Income taxes | ¥ 17,492 | ¥ 16,281 | ¥ 20,939 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Effective income tax rate | 31.00% | 31.00% | 31.00% |
Net increase (decrease) in the total valuation allowance | ¥ 11,679 | ¥ 3,074 | ¥ 3,056 |
Net operating losses which can be carried forward for income tax purposes to reduce future taxable income | 175,581 | ||
Deferred tax liabilities not recognized for a portion of undistributed earnings of foreign subsidiaries | 16,162 | ||
Undistributed earnings of subsidiaries for which tax liabilities were not recognized earlier | 875,208 | ||
Total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized | ¥ 9,813 | ¥ 8,572 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Japanese Statutory Income Tax Rate and Effective Income Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 0.70% | 2.30% | 1.70% |
Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate | (3.90%) | (5.80%) | (2.90%) |
Tax credit for research and development expenses | (3.20%) | (1.70%) | (2.30%) |
Change in valuation allowance | (3.90%) | 2.40% | (1.60%) |
Deferred tax liabilities on undistributed earnings of foreign subsidiaries | 4.50% | 2.60% | 2.40% |
Tax credit at foreign subsidiaries | (0.30%) | (1.30%) | (1.10%) |
Effect of enacted changes in tax laws | (1.00%) | (1.50%) | (0.20%) |
Other | (0.20%) | (1.60%) | 1.70% |
Effective income tax rate | 23.70% | 26.40% | 28.70% |
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, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Other assets | ¥ 138,507 | ¥ 154,226 |
Other noncurrent liabilities | (43,402) | (48,247) |
Net deferred tax assets | ¥ 95,105 | ¥ 105,979 |
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, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Inventories | ¥ 11,263 | ¥ 10,551 |
Accrued business tax | 3,387 | 1,629 |
Accrued pension and severance cost | 67,752 | 95,386 |
Research and development – costs capitalized for tax purposes | 5,004 | 4,989 |
Property, plant and equipment | 35,658 | 34,923 |
Operating lease liabilities | 17,328 | 20,163 |
Accrued expenses | 29,331 | 28,243 |
Net operating losses carried forward | 33,873 | 29,591 |
Other | 48,621 | 42,741 |
Deferred Tax Assets, Gross, Total | 252,217 | 268,216 |
Less valuation allowance | (19,073) | (30,752) |
Total deferred tax assets | 233,144 | 237,464 |
Deferred tax liabilities: | ||
Undistributed earnings of foreign subsidiaries | (19,677) | (9,147) |
Tax deductible reserve | (4,007) | (4,040) |
Financing lease revenue | (14,602) | (15,041) |
Operating lease right-of-use assets | (17,066) | (19,425) |
Intangible assets | (51,173) | (54,948) |
Other | (31,514) | (28,884) |
Total deferred tax liabilities | (138,039) | (131,485) |
Net deferred tax assets | ¥ 95,105 | ¥ 105,979 |
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, 2021JPY (¥) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 175,581 |
Within one year | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 1,206 |
After one year through five years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 13,869 |
After five years through ten years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 44,316 |
After ten years through twenty years | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 8,223 |
Indefinite period | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 107,967 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Income Tax Disclosure [Abstract] | ||||||
Balance at beginning of year | ¥ 8,572 | [1] | ¥ 8,120 | [1] | ¥ 8,649 | |
Additions for tax positions of the current year | 1,168 | 0 | 0 | |||
Additions for tax positions of prior years | 216 | 208 | 204 | |||
Reductions for tax positions of prior years | 0 | (49) | (44) | |||
Settlements with tax authorities | (62) | 0 | (402) | |||
Other | (81) | 293 | (287) | |||
Balance at end of year | [1] | 9,813 | 8,572 | 8,120 | ||
Unrecognized tax benefits, offset | ¥ 1,695 | ¥ 1,412 | ¥ 933 | |||
[1] | The unrecognized tax benefits were offset by deferred tax assets in the amount of ¥1,695 million, ¥1,412 million and ¥933 million as of December 31, 2021, 2020 and 2019, 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, 2021JPY (¥) | |
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 | ¥ 57,517 |
Amount available for dividends under the Corporation Law of Japan | 858,455 |
Retained earnings included Canon's equity in undistributed earnings of affiliated companies accounted for by the equity method | ¥ 17,858 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | ¥ 2,784,041 | ¥ 2,883,980 | ¥ 3,010,145 |
Equity transactions with noncontrolling interests and other | 1,663 | 751 | (1,596) |
Net change during the year | 175,975 | (15,002) | (36,855) |
Balance at end of year | 3,098,429 | 2,784,041 | 2,883,980 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (113,646) | (96,282) | (63,815) |
Equity transactions with noncontrolling interests and other | (9) | (424) | |
Other comprehensive income (loss) before reclassifications | 119,689 | (17,355) | (31,889) |
Amounts reclassified from accumulated other comprehensive income (loss) | (524) | 0 | (154) |
Net change during the year | 119,165 | (17,364) | (32,467) |
Balance at end of year | 5,519 | (113,646) | (96,282) |
Gains and losses on derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 100 | (887) | 308 |
Other comprehensive income (loss) before reclassifications | (3,330) | (1,199) | (1,723) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,336 | 2,186 | 650 |
Net change during the year | (994) | 987 | (1,073) |
Balance at end of year | (894) | 100 | (887) |
Gains and losses on derivative instruments | ASU 2017-12 | Cumulative effects of accounting standard update - adoption of ASU | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (122) | ||
Balance at end of year | (122) | ||
Pension liability adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (211,243) | (211,273) | (205,564) |
Other comprehensive income (loss) before reclassifications | 49,759 | (7,530) | (12,763) |
Amounts reclassified from accumulated other comprehensive income (loss) | 5,065 | 7,560 | 7,054 |
Net change during the year | 54,824 | 30 | (5,709) |
Balance at end of year | (156,419) | (211,243) | (211,273) |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (324,789) | (308,442) | (269,071) |
Equity transactions with noncontrolling interests and other | (9) | (424) | |
Other comprehensive income (loss) before reclassifications | 166,118 | (26,084) | (46,375) |
Amounts reclassified from accumulated other comprehensive income (loss) | 6,877 | 9,746 | 7,550 |
Net change during the year | 172,995 | (16,347) | (39,249) |
Balance at end of year | ¥ (151,794) | (324,789) | (308,442) |
AOCI Attributable to Parent | ASU 2017-12 | Cumulative effects of accounting standard update - adoption of ASU | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | ¥ (122) | ||
Balance at end of year | ¥ (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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Selling, general and administrative expenses | ¥ 1,058,536 | ¥ 993,009 | ¥ 1,137,110 |
Other, net | (19,203) | (17,664) | (16,585) |
Net Sales | 3,513,357 | 3,160,243 | 3,593,299 |
Income taxes | 71,866 | 34,337 | 56,146 |
Consolidated net income | (230,840) | (95,943) | (139,347) |
Net income attributable to noncontrolling interests | 16,122 | 12,625 | 14,383 |
Net income attributable to Canon Inc. | (214,718) | (83,318) | (124,964) |
Total amount reclassified, net of tax and noncontrolling interests | 6,877 | 9,746 | 7,550 |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Selling, general and administrative expenses | (759) | ||
Other, net | (154) | ||
Income taxes | 235 | ||
Consolidated net income | (524) | (154) | |
Net income attributable to Canon Inc. | (524) | (154) | |
Reclassification out of Accumulated Other Comprehensive Income | Gains and losses on derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Sales | 3,285 | 3,034 | 661 |
Income taxes | (959) | (775) | (2) |
Consolidated net income | 2,326 | 2,259 | 659 |
Net income attributable to noncontrolling interests | 10 | (73) | (9) |
Net income attributable to Canon Inc. | 2,336 | 2,186 | 650 |
Reclassification out of Accumulated Other Comprehensive Income | Pension liability adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other, net | 7,519 | 10,082 | 9,953 |
Income taxes | (1,625) | (2,484) | (2,523) |
Consolidated net income | 5,894 | 7,598 | 7,430 |
Net income attributable to noncontrolling interests | (829) | (38) | (376) |
Net income attributable to Canon Inc. | ¥ 5,065 | ¥ 7,560 | ¥ 7,054 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign currency translation adjustments, Before-tax amount | |||
Amount arising during the year, Before-tax amount | ¥ 122,075 | ¥ (17,583) | ¥ (32,396) |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | (759) | (154) | |
Net change during the year, Before-tax amount | 121,316 | (17,583) | (32,550) |
Net gains and losses on derivative instruments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | (4,596) | (1,731) | (2,180) |
Pension liability adjustments, Before-tax amount: | |||
Amount arising during the year, Before-tax amount | 68,729 | (2,495) | (9,916) |
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 7,519 | 10,082 | 9,953 |
Net change during the year, Before-tax amount | 76,248 | 7,587 | 37 |
Foreign currency translation adjustments, Tax (expense) or benefit | |||
Amount arising during the year, Tax (expense) or benefit | (1,112) | 229 | 393 |
Net change during the year, Tax (expense) or benefit | (877) | 229 | 393 |
Pension liability adjustments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | (18,115) | (3,721) | (1,144) |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (1,625) | (2,484) | (2,523) |
Net change during the year, Tax (expense) or benefit | (19,740) | (6,205) | (3,667) |
Foreign currency translation adjustments, Net-of-tax amount | |||
Amount arising during the year, Net-of-tax amount | 120,963 | (17,354) | (32,003) |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | (524) | (154) | |
Net change during the year, Net-of-tax amount | 120,439 | (17,354) | (32,157) |
Net gains and losses on derivative instruments, Net-of-tax amount: | |||
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 2,326 | 2,259 | 659 |
Net change during the year, Net-of-tax amount | (972) | 970 | (1,068) |
Pension liability adjustments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | 50,614 | (6,216) | (11,060) |
Reclassification adjustments for gains and losses realized in net income, Net-of-tax amount | 5,894 | 7,598 | 7,430 |
Net change during the year, Net-of-tax amount | 56,508 | 1,382 | (3,630) |
Other Comprehensive Income (Loss), Before-tax amount | 196,253 | (8,693) | (34,032) |
Other comprehensive income (loss), Tax (expense) or benefit | (20,278) | (6,309) | (2,823) |
Other comprehensive income (loss), Net-of-tax amount | 175,975 | (15,002) | (36,855) |
Accounting Standards Update 2019-04 [Member] | |||
Net gains and losses on derivative instruments, Before-tax amount: | |||
Reclassification adjustments for gains and losses realized in net income, Before-tax amount | 3,285 | 3,034 | 661 |
Net change during the year, Before-tax amount | (1,311) | 1,303 | (1,519) |
Foreign currency translation adjustments, Tax (expense) or benefit | |||
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | 235 | ||
Net gains and losses on derivative instruments, Tax (expense) or benefit: | |||
Amount arising during the year, Tax (expense) or benefit | 1,298 | 442 | 453 |
Reclassification adjustments for gains and losses realized in net income, Tax (expense) or benefit | (959) | (775) | (2) |
Net change during the year, Tax (expense) or benefit | 339 | (333) | 451 |
Net gains and losses on derivative instruments, Net-of-tax amount: | |||
Amount arising during the year, Net-of-tax amount | ¥ (3,298) | ¥ (1,289) | ¥ (1,727) |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, revenue recognized | ¥ 112,232 | |
Revenue remaining performance obligation | ¥ 150,833 | |
Revenue remaining performance obligation, percentage within a year | 66.00% | |
Revenue remaining performance obligation, percentage within two year | 34.00% | |
Fixed maintenance service contract as percentage of service revenue | 13.00% | |
Fixed maintenance service contract remaining period | 2 years | |
Other Current Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | ¥ 132,087 | ¥ 135,455 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | ¥ 44,722 | ¥ 42,752 |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregated Revenue By Timing) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | ¥ 3,513,357 | ¥ 3,160,243 | ¥ 3,593,299 |
Printing Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,934,012 | 1,800,898 | 2,089,024 |
Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 651,494 | 539,560 | 660,105 |
Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 480,029 | 435,368 | 437,456 |
Industrial and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 449,915 | 385,177 | 405,114 |
Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (2,093) | (760) | 1,600 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,513,357 | 3,160,243 | 3,593,299 |
Operating Segments | Printing Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,938,847 | 1,804,427 | 2,092,464 |
Operating Segments | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 653,532 | 541,314 | 661,706 |
Operating Segments | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 480,362 | 436,074 | 438,525 |
Operating Segments | Industrial and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 545,742 | 461,522 | 493,784 |
Operating Segments | Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (105,126) | (83,094) | (93,180) |
Operating Segments | Revenue Recognized at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,730,003 | 2,392,231 | 2,760,816 |
Operating Segments | Revenue Recognized at a Point in Time | Printing Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,419,043 | 1,316,556 | 1,520,393 |
Operating Segments | Revenue Recognized at a Point in Time | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 646,849 | 534,685 | 651,629 |
Operating Segments | Revenue Recognized at a Point in Time | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 329,323 | 287,849 | 290,702 |
Operating Segments | Revenue Recognized at a Point in Time | Industrial and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 439,914 | 336,235 | 391,272 |
Operating Segments | Revenue Recognized at a Point in Time | Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (105,126) | (83,094) | (93,180) |
Operating Segments | Revenue Recognized Overtime | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 783,354 | 768,012 | 832,483 |
Operating Segments | Revenue Recognized Overtime | Printing Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 519,804 | 487,871 | 572,071 |
Operating Segments | Revenue Recognized Overtime | Imaging System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,683 | 6,629 | 10,077 |
Operating Segments | Revenue Recognized Overtime | Medical System Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 151,039 | 148,225 | 147,823 |
Operating Segments | Revenue Recognized Overtime | Industrial and Others Business Unit | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | ¥ 105,828 | ¥ 125,287 | ¥ 102,512 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - JPY (¥) ¥ / shares in Units, ¥ in Millions | Apr. 28, 2021 | May 01, 2020 | Mar. 25, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Number of common stock shares authorized to be acquired under stock options granted | 43,700 | 88,600 | 10,300 | |||
Exercisable period (in years) | 30 years | 30 years | 30 years | |||
Grant-date fair value per share of stock options | ¥ 2,227 | |||||
Recognized compensation cost for stock options | ¥ 97 | ¥ 147 | ¥ 265 | |||
Fair value of shares vested | 97 | 147 | 265 | |||
Cash received from the exercise of stock options | ¥ 0 | ¥ 0 | ¥ 0 | |||
Stock option granted on May 1, 2020 | ||||||
Grant-date fair value per share of stock options | ¥ 1,459 | |||||
Stock option granted on March 25, 2020 | ||||||
Grant-date fair value per share of stock options | ¥ 1,703 |
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, 2021 | Dec. 31, 2020 | |
Granted Date One [Member] | ||
Expected term of option (in years) | 5 years | 6 years |
Expected volatility | 24.83% | 20.32% |
Dividend yield | 3.04% | 6.25% |
Risk-free interest rate | (0.10%) | (0.12%) |
Granted Date Two [Member] | ||
Expected term of option (in years) | 6 years | |
Expected volatility | 20.92% | |
Dividend yield | 6.97% | |
Risk-free interest rate | (0.17%) |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | ||||
Outstanding at beginning of year | 247,600 | 185,800 | 74,000 | |
Granted | 43,700 | 98,900 | 116,300 | |
Exercised | (4,800) | (37,100) | (4,500) | |
Outstanding at end of year | 286,500 | 247,600 | 185,800 | 74,000 |
Exercisable at end of year | 286,500 | |||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of year | ¥ 1 | ¥ 1 | ¥ 1 | |
Granted | 1 | 1 | 1 | |
Exercised | 1 | 1 | 1 | |
Outstanding at end of year | 1 | ¥ 1 | ¥ 1 | ¥ 1 |
Exercisable at end of year | ¥ 1 | |||
Weighted-Average Remaining Contractual Term | ||||
Outstanding at end of year | 27 years 9 months 18 days | 28 years 4 months 24 days | 29 years | 29 years 3 months 18 days |
Exercisable at end of year | 27 years 9 months 18 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | ¥ 324 | ¥ 555 | ¥ 222 | |
Outstanding at end of year | 802 | ¥ 324 | ¥ 555 | ¥ 222 |
Exercisable at end of year | ¥ 802 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share Basic Numerator [Abstract] | |||
Basic net income attributable to Canon Inc. | ¥ 214,718 | ¥ 83,318 | ¥ 124,964 |
Diluted net income attributable to Canon Inc. | ¥ 214,714 | ¥ 83,315 | ¥ 124,962 |
Average common shares outstanding | 1,045,632,588 | 1,049,802,197 | 1,069,956,767 |
Stock options | 277,066 | 229,691 | 158,173 |
Diluted common shares outstanding | 1,045,909,654 | 1,050,031,888 | 1,070,114,940 |
Net income attributable to Canon Inc. shareholders per share: | |||
Basic | ¥ 205.35 | ¥ 79.37 | ¥ 116.79 |
Diluted | ¥ 205.29 | ¥ 79.35 | ¥ 116.77 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Contract Amounts of Foreign Exchange Contracts) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
To sell foreign currencies | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 169,392 | ¥ 137,721 |
To buy foreign currencies | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contract amounts of foreign exchange contracts | ¥ 27,453 | ¥ 27,220 |
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, 2021 | Dec. 31, 2020 |
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets designated as Hedging Instrument | ¥ 42 | ¥ 426 |
Derivative assets not designated as Hedging Instrument | 23 | 107 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities designated as hedging instruments | 777 | 416 |
Derivatives liabilities not designated as hedging instruments | ¥ 1,342 | ¥ 809 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | ¥ (4,596) | ¥ (1,731) | ¥ (2,180) |
Accounting Standards Update 2019-04 [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (3,285) | (3,034) | (661) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | (4,596) | (1,731) | (2,180) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Accounting Standards Update 2019-04 [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (3,285) | (3,034) | (661) |
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 | ¥ (6,099) | ¥ 104 | ¥ 805 |
Lessee Accounting (Supplemental
Lessee Accounting (Supplemental Income Statement Information) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease, Cost [Abstract] | ||
Operating lease cost | ¥ 39,699 | ¥ 40,053 |
Short-term lease cost | 13,961 | 14,245 |
Other lease cost | 71 | 120 |
Total lease cost | ¥ 53,731 | ¥ 54,418 |
Lessee Accounting (Supplement_2
Lessee Accounting (Supplemental Cash Flow Information) (Details) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amount included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | ¥ 39,879 | ¥ 36,733 |
Noncash activity – Rights of use assets obtained in exchange for lease liabilities | ||
Operating leases | ¥ 21,588 | ¥ 30,700 |
Lessee Accounting (Future Minim
Lessee Accounting (Future Minimum Lease Payments) (Detail) ¥ in Millions | Dec. 31, 2021JPY (¥) |
Leases [Abstract] | |
2022 | ¥ 32,941 |
2023 | 22,512 |
2024 | 15,226 |
2025 | 10,816 |
2026 | 7,832 |
Thereafter | 11,192 |
Total future minimum lease payments | 100,519 |
Less Imputed Interest | (4,189) |
Operating leases | ¥ 96,330 |
Lessee Accounting (Remaining Le
Lessee Accounting (Remaining Lease Term And Discount Rate) (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining lease term | 54 months | 56 months |
Weighted-average discount rate | 2.10% | 2.10% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Line Items] | ||
Deposits made under lease arrangements included in noncurrent receivables | ¥ 10,812 | ¥ 10,962 |
Guarantees, maximum amount of undiscounted payments in case of borrower's default | ¥ 2,078 | |
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 | ¥ 76,229 | |
Purchase of Parts and Raw Materials | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments outstanding | ¥ 249,909 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Changes in Accrued Product Warranty Costs) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of year | ¥ 14,300 | ¥ 15,846 |
Additions | 15,687 | 11,355 |
Utilization | (11,928) | (10,657) |
Other | (1,110) | (2,244) |
Balance at end of year | ¥ 16,949 | ¥ 14,300 |
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, 2021 | Dec. 31, 2020 |
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 | ¥ (177,410) | ¥ (346,317) |
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 | ¥ (177,343) | ¥ (346,275) |
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, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | ¥ 500 | ¥ 500 |
Prepaid expenses and other current assets: | ||
Derivatives | 65 | 533 |
Total assets | 29,814 | 20,248 |
Other current liabilities: | ||
Derivatives | 2,119 | 1,225 |
Total liabilities | 2,119 | 1,225 |
Fund Trusts and Others | ||
Investments: | ||
Investments | 609 | 532 |
Equity Securities | ||
Investments: | ||
Investments | 28,640 | 18,683 |
Fair Value, Inputs, Level 1 | ||
Prepaid expenses and other current assets: | ||
Total assets | 28,921 | 18,967 |
Fair Value, Inputs, Level 1 | Fund Trusts and Others | ||
Investments: | ||
Investments | 281 | 284 |
Fair Value, Inputs, Level 1 | Equity Securities | ||
Investments: | ||
Investments | 28,640 | 18,683 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and cash equivalents | 500 | 500 |
Prepaid expenses and other current assets: | ||
Derivatives | 65 | 533 |
Total assets | 893 | 1,281 |
Other current liabilities: | ||
Derivatives | 2,119 | 1,225 |
Total liabilities | 2,119 | 1,225 |
Fair Value, Inputs, Level 2 | Fund Trusts and Others | ||
Investments: | ||
Investments | ¥ 328 | ¥ 248 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021JPY (¥)Segment | Dec. 31, 2020JPY (¥) | Dec. 31, 2019JPY (¥) | |
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 | ¥ 3,513,357 | ¥ 3,160,243 | ¥ 3,593,299 |
UNITED STATES | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 907,909 | ¥ 801,376 | ¥ 958,442 |
Segment Information (Informatio
Segment Information (Information about Operating Results and Assets for Each Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net sales: | ||||
Net sales | ¥ 3,513,357 | ¥ 3,160,243 | ¥ 3,593,299 | |
Operating cost and expenses | 3,231,439 | 3,049,696 | 3,418,879 | [1] |
Operating profit | 281,918 | 110,547 | 174,420 | |
Other income (deductions) | 20,788 | 19,733 | 21,073 | |
Income before income taxes | 302,706 | 130,280 | 195,493 | |
Total assets | 4,750,888 | 4,625,614 | 4,771,918 | |
Depreciation and amortization | 221,246 | 227,825 | 237,327 | |
Capital expenditures | 179,000 | 161,727 | 211,228 | |
Printing Business Unit | ||||
Net sales: | ||||
Net sales | 1,934,012 | 1,800,898 | 2,089,024 | |
Operating cost and expenses | 1,713,154 | 1,657,319 | 1,908,436 | [1] |
Operating profit | 225,693 | 147,108 | 184,028 | |
Other income (deductions) | 7,259 | 5,076 | 6,066 | |
Income before income taxes | 232,952 | 152,184 | 190,094 | |
Total assets | 1,009,922 | 913,931 | 1,002,778 | |
Depreciation and amortization | 69,549 | 69,725 | 74,958 | |
Capital expenditures | 63,609 | 56,613 | 61,789 | |
Imaging Business Unit | ||||
Net sales: | ||||
Net sales | 651,494 | 539,560 | 660,105 | |
Operating cost and expenses | 574,814 | 535,584 | 634,773 | [1] |
Operating profit | 78,718 | 5,730 | 26,933 | |
Other income (deductions) | (256) | (778) | 905 | |
Income before income taxes | 78,462 | 4,952 | 27,838 | |
Total assets | 236,143 | 239,605 | 288,545 | |
Depreciation and amortization | 21,840 | 22,201 | 24,561 | |
Capital expenditures | 12,069 | 12,540 | 18,929 | |
Medical Business Unit | ||||
Net sales: | ||||
Net sales | 480,029 | 435,368 | 437,456 | |
Operating cost and expenses | 450,942 | 410,830 | 411,781 | [1] |
Operating profit | 29,420 | 25,244 | 26,744 | |
Other income (deductions) | 4,876 | 300 | 539 | |
Income before income taxes | 34,296 | 25,544 | 27,283 | |
Total assets | 311,247 | 286,749 | 273,525 | |
Depreciation and amortization | 12,435 | 11,781 | 11,760 | |
Capital expenditures | 11,888 | 7,244 | 7,074 | |
Industrial and Others Business Unit | ||||
Net sales: | ||||
Net sales | 449,915 | 385,177 | 405,114 | |
Operating cost and expenses | 501,434 | 441,006 | 465,197 | [1] |
Operating profit | 44,308 | 20,516 | 28,587 | |
Other income (deductions) | 342 | 1,171 | 0 | |
Income before income taxes | 44,650 | 21,687 | 28,587 | |
Total assets | 345,883 | 348,614 | 310,110 | |
Depreciation and amortization | 27,677 | 28,720 | 29,086 | |
Capital expenditures | 25,759 | 21,276 | 28,436 | |
Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | (2,093) | (760) | 1,600 | |
Operating cost and expenses | (8,905) | 4,957 | (1,308) | [1] |
Operating profit | (96,221) | (88,051) | (91,872) | |
Other income (deductions) | 8,567 | 13,964 | 13,563 | |
Income before income taxes | (87,654) | (74,087) | (78,309) | |
Total assets | 2,847,693 | 2,836,715 | 2,896,960 | |
Depreciation and amortization | 89,745 | 95,398 | 96,962 | |
Capital expenditures | 65,675 | 64,054 | 95,000 | |
Operating Segments | ||||
Net sales: | ||||
Net sales | 3,513,357 | 3,160,243 | 3,593,299 | |
Operating Segments | Printing Business Unit | ||||
Net sales: | ||||
Net sales | 1,938,847 | 1,804,427 | 2,092,464 | |
Operating Segments | Imaging Business Unit | ||||
Net sales: | ||||
Net sales | 653,532 | 541,314 | 661,706 | |
Operating Segments | Medical Business Unit | ||||
Net sales: | ||||
Net sales | 480,362 | 436,074 | 438,525 | |
Operating Segments | Industrial and Others Business Unit | ||||
Net sales: | ||||
Net sales | 545,742 | 461,522 | 493,784 | |
Operating Segments | Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | (105,126) | (83,094) | (93,180) | |
Intersegment Eliminations | Printing Business Unit | ||||
Net sales: | ||||
Net sales | 4,835 | 3,529 | 3,440 | |
Intersegment Eliminations | Imaging Business Unit | ||||
Net sales: | ||||
Net sales | 2,038 | 1,754 | 1,601 | |
Intersegment Eliminations | Medical Business Unit | ||||
Net sales: | ||||
Net sales | 333 | 706 | 1,069 | |
Intersegment Eliminations | Industrial and Others Business Unit | ||||
Net sales: | ||||
Net sales | 95,827 | 76,345 | 88,670 | |
Intersegment Eliminations | Corporate and Eliminations | ||||
Net sales: | ||||
Net sales | ¥ (103,033) | ¥ (82,334) | ¥ (94,780) | |
[1] | During 2019, the Company implemented a restructuring plan centered in Europe with the goal of reorganizing sales structure and improving profitability mainly in the Printing Business Unit. The employee severance charges in the Printing Business Unit under the plan for the year ended December 31, 2019 were ¥15,656 million and most of the charges are included in selling, general and administrative expenses in the consolidated statements of income. The restructuring charges for the years ended December 31, 2021 and 2020 were not significant. |
Segment Information (Informat_2
Segment Information (Information about Operating Results and Assets for Each Segment) (Parenthetical) (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019JPY (¥) | |
Selling, General and Administrative Expenses | |
Segment reporting information [Line Items] | |
Restructuring costs | ¥ 15,656 |
Segment Information (Product Sa
Segment Information (Product Sales to External Customers for Each Segment) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ 3,513,357 | ¥ 3,160,243 | ¥ 3,593,299 |
Printing Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 1,934,012 | 1,800,898 | 2,089,024 |
Printing Business Unit | Office Multifunction Devices | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 477,000 | 455,357 | 573,297 |
Printing Business Unit | Office Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 279,366 | 267,123 | 292,378 |
Printing Business Unit | Office | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 756,366 | 722,480 | 865,675 |
Printing Business Unit | Laser Printers | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 560,159 | 502,157 | 624,597 |
Printing Business Unit | Inkjet Printers and Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 328,932 | 326,041 | 296,622 |
Printing Business Unit | Prosumer | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 889,091 | 828,198 | 921,219 |
Printing Business Unit | Production [Member] | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 288,555 | 250,220 | 302,130 |
Imaging Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 651,494 | 539,560 | 660,105 |
Imaging Business Unit | Cameras | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 432,885 | 347,240 | 466,306 |
Imaging Business Unit | Network Cameras and Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 218,609 | 192,320 | 193,799 |
Medical Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 480,029 | 435,368 | 437,456 |
Industrial and Others Business Unit | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 449,915 | 385,177 | 405,114 |
Industrial and Others Business Unit | Others | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 123,942 | 115,899 | 140,673 |
Industrial and Others Business Unit | Lithography Equipment | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 213,699 | 142,516 | 157,160 |
Industrial and Others Business Unit | Industrial Equipment | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 112,274 | 126,762 | 107,281 |
Corporate and Eliminations | |||
Revenue, Major Customer [Line Items] | |||
Net sales | ¥ (2,093) | ¥ (760) | ¥ 1,600 |
Segment Information (Informat_3
Segment Information (Information by Major Geographic Area) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net sales: | |||
Net sales | ¥ 3,513,357 | ¥ 3,160,243 | ¥ 3,593,299 |
Long-lived assets: | |||
Long-lived assets | 1,438,987 | 1,463,538 | 1,552,010 |
Japan | |||
Long-lived assets: | |||
Long-lived assets | 986,638 | 1,011,109 | 1,053,074 |
Americas | |||
Long-lived assets: | |||
Long-lived assets | 152,137 | 133,648 | 148,669 |
Europe | |||
Long-lived assets: | |||
Long-lived assets | 158,297 | 175,516 | 191,050 |
Asia and Oceania | |||
Long-lived assets: | |||
Long-lived assets | 141,915 | 143,265 | 159,217 |
Japan | |||
Net sales: | |||
Net sales | 830,378 | 806,305 | 872,534 |
America | |||
Net sales: | |||
Net sales | 968,839 | 852,451 | 1,029,078 |
Europe | |||
Net sales: | |||
Net sales | 894,898 | 795,616 | 882,480 |
Asia and Oceania | |||
Net sales: | |||
Net sales | ¥ 819,242 | ¥ 705,871 | ¥ 809,207 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Revolving Credit Facility - JPY (¥) ¥ in Millions | Mar. 16, 2022 | Jan. 05, 2022 |
Subsequent Event [Line Items] | ||
Proceeds from debt | ¥ 70,000 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Proceeds from debt | ¥ 30,000 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trade Receivables | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | ¥ 11,645 | ¥ 10,359 | ¥ 11,477 |
Addition- charged to income | 1,857 | 3,419 | 1,840 |
Deduction bad debts written off | (1,540) | (1,983) | (2,189) |
Translation adjustments and other | 532 | (150) | (769) |
Balance at end of period | 12,494 | 11,645 | 10,359 |
Finance Receivables | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 3,068 | 2,627 | 2,675 |
Addition- charged to income | 2,331 | 2,351 | 1,495 |
Deduction bad debts written off | (2,157) | (2,199) | (1,653) |
Translation adjustments and other | 549 | 289 | 110 |
Balance at end of period | ¥ 3,791 | ¥ 3,068 | ¥ 2,627 |