Canon 2008 Annual Report Download - page 78

76
December 3
1
M
illions o
f
ye
n
T
housands o
f
U
.S.
d
o
ll
ars
2008
2007
2008
T
otal minimum lease payments receivabl
e
¥ 198,611 ¥
229,229
$ 2,182,538
Un
g
uaranteed residual values 16,310 17,
036
179,231
E
xecutory costs (1,729)
(
2,960
)
(19,000)
U
n
ea
rn
ed
in
co
m
e
(26,658)
(
27,756
)
(292,945)
186,534
2
15,54
9
2,049,824
Less allowance
f
or doubt
f
ul receivable
s
(8,268)
(
8,590
)
(90,857)
178,266 206
,
95
9
1,958,967
Less current
p
ort
i
on (59,608) (72,776) (655,033)
¥ 118,658 ¥ 134,183 $ 1,303,934
Finance receivables represent fi nancin
g
leases which consist of
sales-type leases and direct-fi nancing leases resulting from the
marketing of Canon’s and complementary third-party products.
These receivables t
y
picall
y
have terms ran
g
in
g
f
rom 1
y
ear to 7
8
. Finance Receiva
bl
es an
d
Operating Lease
s
y
ears. The components o
f
the
fi
nance receivables, which are
inc
l
u
d
e
d
in
p
re
p
ai
d
ex
p
enses an
d
ot
h
er current assets, an
d
ot
h
er assets in t
h
e accompanying conso
l
i
d
ate
d
b
a
l
ance s
h
eets,
are as follows
:
The cost of equipment leased to customers under operating
leases included in property, plant and equipment, net at
December 31, 2008 and 2007 was ¥50,388 million
($
553,714
thousand) and ¥63,190 million, respectivel
y
. Accumulated
d
epreciation on equipment un
d
er operatin
g
l
eases at Decem
b
er
31, 2008 and 2007 was ¥37,284 million (
$
409,714 thousand)
an
d
¥48,818 mi
ll
ion, respective
l
y
.
The following is a schedule by year of the future minimum
lease payments to be received under
fi
nancing leases and
non-cancelable operatin
g
leases at December 31, 2008
.
Year en
d
ing Decem
b
er 31
:
M
illions of
y
e
n
T
h
ousa
n
ds
o
f
U
.
S
.
do
ll
a
r
s
F
inancing lease
s
O
perating leases Financing lease
s
Operating lease
s
2009
¥ 76
,
599 ¥ 4
,
22
5
$ 841
,
747 $ 46
,
429
20
1
0
57,
305
1,5
85
629
,7
25
17
,
417
2
011 38,15
2
83
2
419,25
3
9,14
3
20
1
2
19
,
02
4
390
209
,
05
5
4
,
28
6
20
1
3
6
,74
3
54
74,
099
593
T
herea
f
te
r
78
8
7
8,659 77
¥ 198
,
611 ¥ 7
,
093 $ 2
,
182
,
53
8
$ 77
,
94
5
In 2007, the Compan
y
and one o
f
its subsidiaries acquired
two companies for a total cost of ¥26,387 million. One compan
y
,
w
h
ic
h
was acquire
d
wit
h
cas
h
, is engage
d
in
d
eve
l
oping,
manufacturing, selling and providing services for equipment used
in the manu
f
acture o
f
or
g
anic EL displa
y
panels and thin-
fi
lm solar
ce
ll
s. T
h
e ot
h
er compan
y
, w
h
ic
h
was acquire
d
wit
h
cas
h
an
d
share exchan
g
e b
y
the subsidiar
y
of the Compan
y
, is en
g
a
g
ed in
providing architecture, management and maintenance services
f
or in
f
ormation s
y
stems. In connection with those transactions,
Canon reco
g
nized
g
oodwill o
f
¥7,556 million, which is included
in other assets, and intan
g
ible assets of ¥7,131 million, which are
inc
l
u
d
e
d
in intangi
bl
e assets in t
h
e accompanying conso
l
i
d
ate
d
balance sheets. Intangible assets consist primarily of manufacturing
9. Ac
q
uisition
s
technolo
gy
, trademarks, patents, customer contracts and related
customer relationships, and are sub
j
ect to a wei
g
hted avera
g
e
amortization period of approximatel
y
13
y
ears as of the date
of ac
q
uisition
.
Canon acquired businesses other than those described above
durin
g
the
y
ears ended December 31, 2008, 2007 and 2006
that were not material to its consolidated
fi
nancial statements
.
Canon has included the results of o
p
erations of these trans
-
actions prospectively from the respective dates of transactions.
Canon has not presented pro
f
orma results o
f
operations o
f
the
acquired businesses because the results are not material to its
consolidated results of o
p
erations on either an individual or an
aggregate
b
asis
.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES