Canon 2006 Annual Report Download - page 72

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70
Amounts due for purchases of property, plant and
equipment were ¥122,081 million ($1,025,891 thousand) and
¥116,716 million at December 31, 2006 and 2005, respec-
tively, and are included in other current liabilities in the
accompanying consolidated balance sheets.
(7) Property, Plant and Equipment
Property, plant and equipment are stated at cost less
accumulated depreciation and are summarized as follows:
December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Land ¥ 231,026 199,595 $ 1,941,395
Buildings 1,077,585 997,351 9,055,336
Machinery and equipment 1,261,176 1,164,480 10,598,118
Construction in progress 79,582 59,558 668,756
2,649,369 2,420,984 22,263,605
Less accumulated depreciation (1,382,944) (1,272,163) (11,621,378)
¥ 1,266,425 1,148,821 $ 10,642,227
(8) Finance Receivables and Operating Leases
Finance receivables represent financing leases which consist of
sales-type leases and direct-financing leases resulting from the
marketing of Canon’s and complementary third-party products.
These receivables typically have terms ranging from 1 to 6 years.
The components of the finance receivables, which are included
in prepaid expenses and other current assets, and other assets
in the accompanying consolidated balance sheets, are as follows:
December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Total minimum lease payments receivable ¥216,697 204,774 $1,820,983
Unguaranteed residual values 14,377 13,849 120,815
Executory costs (2,923) (2,785) (24,563)
Unearned income (24,930) (23,632) (209,496)
203,221 192,206 1,707,739
Less allowance for doubtful receivables (7,871) (8,372) (66,143)
195,350 183,834 1,641,596
Less amount due within one year (72,808) (69,211) (611,831)
¥ 122,542 114,623 $1,029,765
The cost of equipment leased to customers under operating
leases included in property, plant and equipment, net at
December 31, 2006 and 2005 was ¥62,357 million ($524,008
thousand) and ¥60,839 million, respectively. Accumulated
depreciation on equipment under operating leases at Decem-
ber 31, 2006 and 2005 was ¥46,092 million ($387,328 thou-
sand) and ¥45,285 million, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
CANON INC. AND SUBSIDIARIES