Canon 2010 Annual Report Download - page 78
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Please find page 78 of the 2010 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.CANON ANNUAL REPORT 201076
December 31
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Total minimum lease payments receivable ¥215,925 ¥206,267 $2,665,741
Unguaranteed residual values 11,120 14,630 137,284
Executory costs (2,063) (1,973) (25,469)
Unearned income (27,891) (26,994) (344,333)
197,091 191,930 2,433,223
Less allowance for doubtful receivables (7,983) (9,023) (98,556)
189,108 182,907 2,334,667
Less current portion (71,500) (65,146) (882,716)
¥117,608 ¥117,761 $1,451,951
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
Depreciation expense for the years ended December 31, 2010,
2009 and 2008 was ¥232,327 million ($2,868,235 thousand),
¥277,399 million and ¥304,622 million, respectively.
Amounts due for purchases of property, plant and equipment
were ¥23,306 million ($287,728 thousand) and ¥29,030 million
at December 31, 2010 and 2009, respectively, and are included
in other current liabilities in the accompanying consolidated
balance sheets. Fixed assets presented in the consolidated
statements of cash fl ows include property, plant and equipment
and intangible assets.
As a result of continued sluggish demand in the semiconduc-
tor manufacturing industry and diminished profi tability of the
semiconductor lithography equipment business, Canon recog-
nized impairment losses related primarily to property, plant and
equipment of its semiconductor lithography equipment busi-
ness, which are included in the results of the Industry and
Others Business Unit for the year ended December 31, 2009.
Long-lived assets with a carrying amount of ¥15,390 million
were written down to their fair value of zero, which was esti-
mated using discounted future cash fl ows expected to be gen-
erated over their remaining useful life. The impairment losses
were included in selling, general and administrative expenses
in the consolidated statement of income.
Canon also recognized impairment losses of ¥11,164 million
related primarily to property, plant and equipment of its semi-
conductor lithography equipment business, which are included
in the results of the Industry and Others Business Unit for the
year ended December 31, 2008, mainly as a result of declining
demand in the semiconductor manufacturing industry. The
impairment losses were estimated using discounted cash fl ows
and included in selling, general and administrative expenses in
the consolidated statement of income.
Finance receivables represent fi nancing leases which consist of
sales-type leases and direct-fi nancing leases resulting from the
marketing of Canon’s and complementary third-party products
primarily in foreign countries. These receivables typically have
7. Finance Receivables and Operating Leases
terms ranging from 1 year to 8 years. The components of the
fi nance receivables, which are included in prepaid expenses
and other current assets, and other assets in the accompany-
ing consolidated balance sheets, are as follows:
Year ended December 31, 2010
Millions of yen
Thousands of
U.S. dollars
Balance at beginning of year ¥9,023 $111,395
Charge-offs (3,103) (38,309)
Provision 1,995 24,630
Other 68 840
Balance at end of year ¥7,983 $ 98,556
The activity in the allowance for credit losses is as follows: