Canon 2015 Annual Report Download - page 85

CANON ANNUAL REPORT 2015 83
STRATEGY BUSINESS SEGMENT CORPORATE STRUCTURE FINANCIAL SECTION CORPORATE DATA
Net sales are attributed to areas based on the location
where the product is shipped to the customers. Other than in
Japan and the United States, Canon does not conduct busi-
ness in any individual country in which its sales in that coun-
try exceed 10% of consolidated net sales. Net sales in the
United States were ¥1,047,838 million, ¥938,411 million and
¥960,213 million for the years ended December 31, 2015,
2014 and 2013, respectively.
Long-lived assets represent property, plant and equipment
and intangible assets for each geographic area.
Millions of yen Japan Americas Europe
Asia and
Oceania
Corporate and
eliminations Consolidated
2015: Net sales:
External customers ¥ 847,669 ¥ 1,138,830 ¥ 1,077,033 ¥ 736,739 ¥ — ¥ 3,800,271
Intersegment 1,765,840 21,069 106,675 911,395 (2,804,979) —
Total 2,613,509 1,159,899 1,183,708 1,648,134 (2,804,979) 3,800,271
Operating cost and expenses 2,285,780 1,130,099 1,165,218 1,582,113 (2,718,149) 3,445,061
Operating profit ¥ 327,729 ¥ 29,800 ¥ 18,490 ¥ 66,021 ¥ (86,830) ¥ 355,210
Total assets ¥ 969,805 ¥ 544,395 ¥ 409,357 ¥ 620,090 ¥ 1,884,126 ¥ 4,427,773
2014: Net sales:
External customers ¥ 836,801 ¥ 1,033,797 ¥ 1,088,293 ¥ 768,361 ¥ — ¥ 3,727,252
Intersegment 1,752,378 8,738 59,493 821,600 (2,642,209) —
Total 2,589,179 1,042,535 1,147,786 1,589,961 (2,642,209) 3,727,252
Operating cost and expenses 2,245,930 1,018,661 1,135,515 1,522,244 (2,558,587) 3,363,763
Operating profit ¥ 343,249 ¥ 23,874 ¥ 12,271 ¥ 67,717 ¥ (83,622) ¥ 363,489
Total assets ¥ 1,134,484 ¥ 531,122 ¥ 484,858 ¥ 674,672 ¥ 1,635,482 ¥ 4,460,618
2013: Net sales:
External customers ¥ 797,501 ¥ 1,056,096 ¥ 1,124,603 ¥ 753,180 ¥ — ¥ 3,731,380
Intersegment 1,855,181 11,774 53,281 881,765 (2,802,001) —
Total 2,652,682 1,067,870 1,177,884 1,634,945 (2,802,001) 3,731,380
Operating cost and expenses 2,326,351 1,043,487 1,171,357 1,574,125 (2,721,217) 3,394,103
Operating profit ¥ 326,331 ¥ 24,383 ¥ 6,527 ¥ 60,820 ¥ (80,784) ¥ 337,277
Total assets ¥ 1,152,398 ¥ 447,039 ¥ 496,549 ¥ 631,827 ¥ 1,514,897 ¥ 4,242,710
The following information is based on the location of the Company and its subsidiaries as of and for the years ended
December 31, 2015, 2014 and 2013. In addition to the disclosure requirements under U.S. GAAP, Canon discloses this informa-
tion in order to provide financial statements users with useful information.
On March 17, 2016, the Board of Directors of the Company
approved an acquisition of Toshiba Medical Systems Corporation
(“TMSC”) from Toshiba Corporation (“Toshiba”) to make TMSC
a subsidiary, and concurrently it has entered into a share transfer
agreement with Toshiba. The Company paid a total consideration
of ¥665.5 billion for a right to acquire all the ordinary shares of
TMSC, which is exercisable upon the clearance of necessary com-
petition regulatory authorities. The Company borrowed the con-
sideration through bank borrowing of ¥660 billion provisionally,
which is due on September 30, 2016. The Company plans to
make its final decision on whether to use own funds, borrowings
or a combination of both, to fund the acquisition, by that time.
Until the clearance of necessary competition regulatory
authorities is obtained, the Company does not expect to consol-
idate TMSC since it does not currently hold power over TMSC
including voting rights in the shareholders meeting of TMSC.
Under Phase V of its Excellent Global Corporation Plan, a five-
year initiative launched in 2016, the Company aims to embrace
the challenge of new growth through a grand strategic trans-
formation. With regard to reinforcing and expanding new busi-
nesses in particular, which represents one of the important
strategies to be carried out during this phase, the Company
22. SUBSEQUENT EVENT